Deal #1798 Version #55500

The community claims that the land agreement was not discussed entirely and the community was not given the opportunity for free and prior informed consent regarding some of the clauses in the lease agreement (another source states that the draft land lease was disclosed to the community for one year in order to obtain FPIC). ABSL invented a legal instrument, the so called Acknowledgement Agreements (AA). AAs are additional agreements that were signed with each landowning family when their land was about to be used for the project. ABSL hired a consultant specialised on Geographic Information Systems (GIS) that would map the land together with the owners. AAs include an additional rent, which is paid directly to the land owner. AAs include a formal declaration of support for the project and a recognition of the Land Lease Agreement (LLA) signed by the paramount chiefs.

Landowners feel that they have no choice but to accept the project as it was forced upon them by the president. The project was initially seen as an extension of the president’s wishes and was not to be rejected by local people.

13,617 according to one source; 30,000 on the lease area belonging to 92 land-owning groups, according to Addax Bioenergy’s spokesperson, another report states 25000 community members. The African Development Bank estimated that that about 13,600 people in 52 villages would be affected. Another source states that there have been no houses or villages physically relocated from the area. The farmland of many families and villages has been relocated. Company source states 53 villages within the project area. Community members can no longer access their water source; the water which is available is contaminated by fertilizers.

Compensation to the local chiefs and landowners (not necessarily the land users). 12 USD per ha per year, 64% of which goes directly to the owner ( the community claims that this compensation was not subject to negotiation and does not adequately reflect the benefit the community was giving up. The company compensated the owners of crops and palm trees on the leased land with a small lump sum payment (6USD per tree). Landowners have highlighted that the payments for the acquired land and the destroyed crops did not compensate them adequately for what they had lost.

Farmer Development Programme that involves farmer training and ploughing community plots for three years and providing inputs of seed rice and fertilizer for communities, and has resulted in an increase in rice yields in the Addax Bioenergy project area, however this is not accessible for all affected community members. The community states that promises made by the company regarding jobs, boreholes, schools, clinics and community centres have not been realised, while the company denies having made these promises. Provide rice to affected communities for the first three years of the project. Of the land rent 50% is paid to landowners, 20% paid to Chiefdom Council, 20% paid to District Council, 10% paid to Central Government.