Deal #1395

Location #1

Spatial accuracy level
Administrative region
Location
Sinoe, Liberia

Target country
Liberia
Comment on location
Butaw is located in Sinoe County, 350 km south-east of Monrovia, and 42 km from the City of Greenville.

Land area

Intended size (in ha)
55289.0
Size under contract (leased or purchased area, in ha)
[2008] 55289
Size in operation (production, in ha)
[2012] 2000
Comment on land area
Company website states: "Butaw Estate is 8,750 hectares of land as part of the concession as well as expansion areas totaling 46,539 hectares, of which 15,680 hectares is set aside for outgrower programmes." Actual size under contract under discussion- other sources state 54549ha.

Intention of investment

Intention of investment
Agriculture unspecified

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
7 year rehabilitation term plus 43 years under the regular term.

Negotiation status

Negotiation status
[2008] Concluded (Contract signed)
Comment on negotiation status
The contract that EPO took over from LFPI in 2006 contained gross irregularities and non-compliance with the law, thus a new contract was signed by EPO with the government in 2008- with a significant reduction in hectares under lease. Original contract signed on 21 December 2007.

Implementation status

Implementation status
[2006] Startup phase (no production)
[2012] In operation (production)
Comment on implementation status
Started as bilateral co-operation between GoL and Cote d'Ivoire. Acquired from Liberia Forest Products

Leasing fees

Annual leasing fee
2
Annual leasing fee currency
US Dollar ($)
Annual leasing fee type
per ha
Comment on leasing fees
US$1.00/yr/developed ha, US$0.50/yr/undev ha during rehabilitiation term (7 yrs). US$2.00/yr/dev ha, US$1.00/yr/undev ha during regular term (43 yrs) The company paid US$15,401 surface rental for the period 1 July 2010-30 June 2011 (i.e. US$2.82/ha). Original tax holiday of 7 years extended by another 5 years in 2017.

Contract farming

Contract farming
Yes
On leased / purchased area
Yes
On leased / purchased area (in ha)
8094
Comment on contract farming
Total of 15,680 ha for outgrower program

Contract #1

Contract date
2008-05-22
Duration of the agreement (in years)
50

Operating company

Name of investment project
Butaw Plantation
Comment on investment chain
In Dec 2010 Equatorial Palm Oil's assists and plantations were incorporated in a 50:50 JV with Biopalm Energy called Liberian Palm Development Ltd

 

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Data source #1

Data source type
Contract
File
Open Contracting ID
ocds-591adf-0122591393
Comment on data source
Contract

Data source #2

Data source type
Research Paper / Policy Report
File
Comment on data source
Chain Reaction Research- PALM OIL FRONTIERS: Lessons Learned from SE Asian Corporate Expansion to Africa, October 2016

Data source #3

Data source type
Company sources
File
Comment on data source
Company website

Data source #4

Data source type
Company sources
File
Comment on data source
Company website

Data source #5

Data source type
Government sources
File
Comment on data source
Leiti 4th Reconciliation report

Data source #6

Data source type
Media report
File
Date
2014-05-14
Comment on data source
Farm Land Grab- Small community in Liberia stands strong against land grabbing

Data source #7

Data source type
Research Paper / Policy Report
File
Comment on data source
Grain-Feeding the 1%, September 2014

Data source #8

Data source type
Research Paper / Policy Report
File
Comment on data source
Summary case study on the situation of Golden Veroleum Liberia’s oil palm concession. Justin Kenrick and Tom Lomax

Data source #9

Data source type
Media report
File
Comment on data source
Bloomberg- equatorial palm oil plc (PAL:London)

Data source #10

Data source type
Research Paper / Policy Report
File
Comment on data source
Grain-The global farmland grab in 2016: how big, how bad?

Data source #11

Data source type
Company sources
File
Comment on data source
KLK Annual report 2016.

Data source #12

Data source type
Media report
File
Publication title
Equatorial Palm Oil Exempt From Tax And Duties For Five More Years
Date
2017-03-17

Data source #13

Data source type
Company sources
File
Publication title
EQUATORIAL PALM OIL PLC ANNUAL REPORT AND ACCOUNTS For the year ended 30 September 2019
Date
2019
Comment on data source
Annual report

Consultation of local community

Community consultation
Not consulted
Comment on consultation of local community
Liberian President Ellen Johnson has specified that EPO could not take the communities lands in May 2014.

Displacement of people

Number of people actually displaced
7000

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Capacity Building
Financial Support
Comment on promised benefits for local communities
School and school bus provided. Adult literacy program. The company is taking part in the Smallholder Tree Crops Revitalisation Support Project.

Materialized benefits for local communities

Materialized benefits for local communities
Education
Capacity Building
Financial Support
Comment on materialized benefits for local communities
School and school bus provided. The company is taking part in the Smallholder Tree Crops Revitalisation Support Project.

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)
Liberian President Ellen Johnson has specified that EPO could not take the communities lands in May 2014.

Former land use

Former land use
Commercial (large-scale) agriculture

Former land cover

Former land cover
Cropland

Detailed crop, animal and mineral information

Crops area
[2019] Oil Palm (1418 ha)
Comment on resources
Decision to scale down operation at Butaw Estate was announced by EPO on 26 June 2019.

Use of produce

Has domestic use
Yes
Has export
Yes

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Palm oil

Overall comment

Overall comment
Started as bilateral co-operation between GoL and Cote d'Ivoire. Acquired from Liberia Forest Products. High Carbon Stock Approach methodology applied to new planting areas. Original tax holiday of 7 years extended by another 5 years in 2017.

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March 18, 2013, 8:42 a.m.

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Feb. 15, 2013, 5:02 p.m.

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