Deal #1414

Location #1

Spatial accuracy level
Administrative region
Location
Atsimo-Andrefana, Madagascar

Target country
Madagascar
Comment on location
Tulear in Atsimo Andrefana One data source states that the project is spread over 9 locations, however does not specify these locations.

Land area

Intended size (in ha)
550000.0
Size under contract (leased or purchased area, in ha)
[2011, current] 495000
Size in operation (production, in ha)
[2009] 55737
[2011] 55737
Comment on land area
Another report states the company has acquired 55000ha. Land was acquired in stages, with the last land being acquired in 2011 (it is not clear how much land was acquired in each year). The company initially announced a 50 000 ha project, however they claimed to get access to more. A media report states that 55,737 hectares of Jatropha were planted between 2007 and 2009 (company source confirmed this). The company obtained poor production. No further plantations were established between 2009 and 2011 (see implementation status). The plan was to plant 200 000ha by 2010.

Intention of investment

Intention of investment
[2011, current] Biofuels (495000 ha)
Comment on intention of investment
Jatropha Crude Oil

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2005, current] Concluded (Contract signed)
Comment on negotiation status
Land was acquired from a period of 2005 to 2011, with a parcel size ranging from 2500ha to 50 000ha. The company negotiated land access on an informal basis with local mayors (written local contracts).

Implementation status

Implementation status
[2007] Startup phase (no production)
[2012, current] Project abandoned
Comment on implementation status
Planting operations came to a halt due to the lack of capital and bad plantation management, the company shifted their focus to existing plantations rather than expansions. Plantations were allowed to mature, with no further planting. A low number of trees reached maturity. In 2012 the company continued to suffer from lack of capital with declining share value. In an effort to respond to the bad performance, the company commissioned external consultants to conduct a review of the plantations and assess their potential for other crops. The consultants found that success levels were too low to make a commercially viable business. The company would need to spend significant money on land preparation and maintenance to get the project successful, which would not be before 2020. The consultants and company also decided that the land was not suitable for other crops. The project has been abandoned- company 2014 Annual report states Green Energy Madagascar is dormant and Perrine confirmed. The company is looking into the mining and natural resources sector.

Contract farming

Contract farming
No
Comment on contract farming
One source states that the company planned to have their own plantations and an outgrower scheme. However Perrine states that there was no outgrower scheme planned- locals were allowed to plant beans in between the jatropha on demonstration plots.

Contract #1

Duration of the agreement (in years)
50

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
[2008] 4500
Comment on jobs created (domestic)
In 2011 staff were retrenched along with the decline in capital and focus on existing plantations (see implementation status).

Operating company

Name of investment project
Terra Rossa Plantations
Comment on investment chain
Shareholders approved the name change from Green Energy Madagascar to TerraRossa Plantations in 2010, however the company decided to keep the original name (Green Energy Madagascar). Company 2014 Annual report states Green Energy Madagascar is dormant.

 

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Data source #1

Data source type
Company sources
File
Comment on data source
the website appears to be down.

Data source #2

Data source type
Company sources
File
Date
2015-06-30
Comment on data source
Final Results for the year ended 2014

Data source #3

Data source type
Personal information
Date
2015-10-28
Includes in-country-verified information
Yes

Data source #4

Data source type
Company sources
File
Date
2012-04-12
Comment on data source
Document received from Perrine (company website is down). Investors update.

Data source #5

Data source type
Company sources
File
Date
2012-03-30
Comment on data source
Document received from Perrine (company website is down). Directorate Change.

Data source #6

Data source type
Company sources
File
Date
2012-06-29
Comment on data source
Document received from Perrine (company website is down). Statement re Suspension

Data source #7

Data source type
Company sources
File
Date
2012-12-05
Comment on data source
Document received from Perrine (company website is down). Notice of AGM, proposed investing policy, share capital reorganisation, change of name, subscription for new shares and board changes

Data source #8

Data source type
Media report
File
Publication title
GEM biofuels renamed Terr Rossa Plantations, as Jatropha developer seeks image change
Date
2010-06-25
Comment on data source
Biofuel Digest-- GEM biofuels renamed Terr Rossa Plantations, as Jatropha developer seeks image change

Data source #9

Data source type
Company sources
File
Date
2012-12-04

Data source #10

Data source type
Company sources
File
Date
2012-12-06
Comment on data source
Interim Statement 2012- Interim Results for the six months ended 30 June 2012

Data source #11

Data source type
Media report
File
Publication title
GEM biofuels jatropha crops under perform significantly in Madagascar
Date
2012-04-13
Comment on data source
Biofuels digest-

Data source #12

Data source type
Research Paper / Policy Report
File
Publication title
Pushing the Limits: International Land Acquisitions in Comparative Perspective
Date
2015
Comment on data source
Goetz, Ariane, "Pushing the Limits: International Land Acquisitions in Comparative Perspective" (2015).Theses and Dissertations (Comprehensive). Paper 1716. (File to large to upload).

Consultation of local community

Comment on consultation of local community
The company negotiated with the community for some of the land, it is not clear whether this consultation was limited or free,prior and informed.

Promised benefits for local communities

Promised benefits for local communities
Other
Comment on promised benefits for local communities
Locals were allowed to plant beans in between the jatropha on demonstration plots. GEM for one or two years had bought jatropha seeds from farmers (harvested seeds from existing jatropha trees in the savanna.

Former land owner (not by constitution)

Former land owner
State
Community

Former land use

Former land use
Smallholder agriculture
Forestry
Comment on former land use
One report states that 40 000ha was natural forest.

Former land cover

Former land cover
Cropland
Forest land
Marginal land

Detailed crop, animal and mineral information

Crops area
Jatropha

Use of produce

Has export
Yes
Country 1
Germany
Country 2
Australia
Comment on use of produce
Jatropha crude oil production for export to the EU, North America, and Australasia. In 2010, first revenues of GBP 18,000 from Jatropha oil were made, with shipments to Germany and Australia.

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
AGF (Agrofuel production)

Water extraction envisaged

Water extraction envisaged
Yes

Overall comment

Overall comment
Previously know as GEM Biofuels, changed name in 2013. Company struggled with capital (this is stated as one of the reasons for the project being abandoned). In an effort to respond to the bad performance, the company commissioned external consultants to conduct a review of the plantations and assess their potential for other crops. The consultants found that success levels were too low to make a commercially viable business. The consultants and company also decided that the land was not suitable for other crops. The project has been abandoned. The company is looking into the mining and natural resources sector.

July 1, 2020, 4:18 p.m.

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July 3, 2013, 10:39 a.m.

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June 21, 2013, 1:44 p.m.

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June 21, 2013, 1:35 p.m.

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March 4, 2013, 8:27 a.m.

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

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