Deal #1395

Land area

Intended size

38 957 ha

Size under contract (leased or purchased area)

[2008, current] 54550.0 ha

Size in operation (production)

[2012, current] 2000.0 ha

Comment on land area

EPO claimed at acquisition that the company now had access to 700 000hectares of land in Liberia- however this figure reduced to 54550ha after the new lease was signed. Allocation 8100, expansion area 8,094ha, outgrower allocation, 8,094ha. Additional area allocation (once investment has reached $25m) 22,763ha, outgrower allocation7588ha. Another report states that EPO has acquired 169 000hectares.

Intention of investment

[current] Agriculture unspecified

Nature of the deal

Lease

Negotiation status

[2008, current] 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.

Implementation status

[2012, current] In operation (production)
[2006] Startup phase (no 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

$

per ha

Comment on leasing fee

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)

Contract farming

Yes

Not on leased / purchased (out-grower)

Yes

Not on leased area/farmers/households (out-grower)

[current] 8094.0 ha

Comment on contract farming

Additional 7,588ha of outgrowers once investment has reached a certain level