Please note: you are viewing an old version of this deal. The current version can be found here: Deal #1798
Deal #1798 Version #55519
Sierra Leone
Created at
2013-02-15
Last update
2019-03-19
Last full update
2024-04-10
Land area
Intended size
54 000 ha
Size under contract (leased or purchased area)
- [2010] 44000.0 ha
- [2015, current] 23500.0 ha
Size in operation (production)
- [2015] 10000.0 ha
- [2016, current] 12000.0 ha
Comment on land area
44,000 ha (after relinquishing 10,000 ha to communities, which Addax Bioenergy decided it did not require)-- only 30 000ha have been relinquished by the company to date. Other sources say: 2 phases, each 10,000ha, total 20,000ha; 15,500ha according to ESHIA. Grain and other data sources state 57 000 hectares. Commercial farms in Africa report states 15 000 hectares. 10000ha have sugarcane pivots, 2000ha are currently used for a farmer development program-- rice, the rest of the land is being used by the local farmers for food security. Sunbird company website states: "The estate leases 23,500 Ha of land from the Government of Sierra Leone for the production of sugarcane and cassava. Currently 10,000 Ha to be developed under sugarcane that is forecast to produce 900,000 MT for the production of ethanol and power. The company is currently developing an additional 2,000 Ha of cassava production as a secondary feedstock." Size reduced from 44 000ha to 23 500ha- the difference was relinquished during the downscale in 2014/2015. Fields and interstices occupy 20 000ha in March 2016 (Augustin Palliere & Hubert Cochet).
Intention of investment
Intention of investment
- [current] Biomass for biofuels, Food crops, Renewable energy unspecified
Comment on intention of investment
Sugarcane, cassava and napier Grass (biomass). The company is looking to expand the crops produced in 2018.
Nature of the deal
Nature of the deal
Lease
Comment on nature of the deal
The land lease contract (between the company and the Chiefdom Council) can be reviewed after seven years. This was due to happen in 2016- still awaiting.
Negotiation status
Negotiation status
- [2010, current] Concluded (Contract signed)
Comment on negotiation status
Lease signed in 2010 for 50 year lease with possible extension for 21 years. The initial concept for the ABSL project evolved around 2006/2007. MOU signed on 09:02:2010. Lease agreement signed on 09:04:2010. EIA has been undertaken by EOH Coastal and Environmental services- however can't access copy of report.
Implementation status
Implementation status
- [2012] Startup phase (no production)
- [2014] In operation (production)
- [2017, current] In operation (production)
Comment on implementation status
began setting up sugarcane nursery in 2009, preparing land in 2010. Will be using about 2,000 ha for infrastructure (such as factory site, roads, power lines, ecological corridors, etc) and 10,000 ha for sugarcane, which should be planted by 2014. Addax Bioenergy’s operations were being hampered by strike actions by the workers complaining, among other things, about lack of transport, lack of drinking water and medical allowance, expatriates lacking respect for local staff and culture, discrimination and marginalisation. "AOG chose to downscale their investment in 2014/5 and consequently not all fields were replanted in 2015/6. THE PROJECT WAS NEVER ABANDONED. Sunbird became the majority shareholder and project manager on the 8th of September in 2016 and has a business plan to resume full operations by 2019".
Leasing fees
Annual leasing fee
12.35
$
per haComment on leasing fee
A 50-year lease with a rent of US$12.35 per hectare was divided between landowners (50 percent), Chiefdom Councils (20 percent), the District Council (20 percent) and the government (10 percent). The deal made Addax exempt from any adverse effects of legal changes until 2060—the end of the lease. Acknowledgment Agreements signed with landowners in 2011 added an extra annual payment of US$1.40 per acre (3.46 per ha) per annum for the landowners, bringing the annual rent they receive to US$7.90 of the US$12.35 per hectare that Addax Bioenergy pays per year. Payments are made late under new majority owner Sunbird.
Contract farming
Comment on contract farming
Looking to start cassava contract farming in 2018.