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Deal #1348 Version #52825

Ghana
Created at
2013-02-15
Last update
2020-06-29
Last full update
2024-04-24

Land area

Intended size
5 000 ha
Size under contract (leased or purchased area)
  • [2009] 1285.0 ha
  • [2012, current] 2150.0 ha
Size in operation (production)
  • [2011, current] 750.0 ha
Comment on land area
Another source states that the company was only able to bring 300 ha under cultivation.

Intention of investment

Intention of investment
  • [current] Food crops

Nature of the deal

Nature of the deal
Outright purchase

Negotiation status

Negotiation status
  • [2003, current] Concluded (Contract signed)
Comment on negotiation status
Feasibility study done in 2003, only started operating in 2008. The government originally acquired the land in 1977. Government contribution to the project was 1000 ha of land. In 2011 the company was reported to be negotiating a 50 year lease for 2000 ha.

Implementation status

Implementation status
  • [2009] In operation (production)
  • [2014, current] Project abandoned
Comment on implementation status
Land disputes quickly flared up, therefore only a fraction of the rice projected was ever grown, and the company soon plunged into debt. The government lent the company US$7.2 million to revamp project, but the project was ultimately abandoned.

Purchase price

Purchase price
260
$
per ha
Comment on purchase price
The land was acquired by government decree. Prairie Rice, which believed it was buying the land, deposited the sale price (US$260 per hectare—the basis for this price was not explained) in an escrow account awaiting a court decision on the identity of the former landowners to whom the money should be paid. Ten community claimants filed a suit, arguing that they were the rightful landowners. The company was allowed to cultivate the land while the dispute was being resolved. Prairie Rice also paid a US$100,000 registration fee to the Lands Commission.