Deal #1395

Land area

Intended size

55 289 ha

Size under contract (leased or purchased area)

[2008, current] 55289.0 ha

Size in operation (production)

[2012, current] 2000.0 ha

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

[current] Agriculture unspecified

Nature of the deal

Lease

Comment on nature of the deal

7 year rehabilitation term plus 43 years under the regular term.

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. Original contract signed on 21 December 2007.

Implementation status

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

$

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). Original tax holiday of 7 years extended by another 5 years in 2017.

Contract farming

Yes

On leased / purchased

Yes

On leased area/farmers/households

[current] 8094.0 ha

Comment on contract farming

Total of 15,680 ha for outgrower program