Please note: you are viewing an old version of this deal. The current version can be found here: Deal #1396

Deal #1396 Version #53345

Liberia
Created at
2013-02-15
Last update
2015-11-09
Last full update
2024-04-29

Land area

Intended size
350 000 ha
Size under contract (leased or purchased area)
  • [2010] 220000.0 ha
  • [2014, current] 233354.0 ha
Size in operation (production)
  • [2015, current] 12000.0 ha
Comment on land area
In 2010: concession area 220,000ha plus 40,000ha for outgrowers (contract and farmland grab articles). Conflicting information over hectares obtained- Ecofys report states 240 000 hectares. The company signed an MOU for an additional 13354ha in 2014 from community members. The company is scaling back the Butaw plantation.

Intention of investment

Intention of investment
  • [current] Biomass for biofuels, Food crops, For carbon sequestration/REDD

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
  • [2010, current] Concluded (Contract signed)
Comment on negotiation status
Option to extend lease to 99 years. The company forced the community to sign four additional MOU's in 2014 during the Ebola outbreak, once community leaders would not attend meetings due to Ebola. The community members signed but do not know what the MOU states.

Implementation status

Implementation status
  • [2010] Startup phase (no production)
  • [2015, current] In operation (production)
Comment on implementation status
The first nursery was established in 2010. Land clearance first commenced in December 2010 and accelerated in September 2011, before being halted by a December 2012 freeze on plantation expansion requested by the RSPO in response to community complaints. Plantation expansion re-commenced during 2013 and 2014, in Sinoe (Butaw) and Grand Kru counties. The community claims that the company used the Ebola outbreak to clear more land, as community leaders were dealing with the Ebola outbreak. GVL’s nursery has 3 million seedlings waiting to be planted. GVL suspended the operations on the Butaw plantation following the rioting by the villagers in May 2015. The plantation was re-opened for partial activities in July 2015. One of the conditions for the re-opening of the plantations is that the police provide increased presence in the area.

Leasing fees

Annual leasing fee
5
$
per ha
Comment on leasing fee
US$5.00/yr/dev ha, US$1.25/yr/undev ha (10yrs), US$2.50/yr/undev ha (55yrs). To be reviewed every 5 years but not to increase more than 20%

Contract farming

Contract farming
Yes
On leased / purchased
Yes
On leased area/farmers/households
  • [current] 40000.0 ha
Comment on contract farming
The MOU includes the development of programs that allow villagers to sell their own palm oil to GVL.