Deal #1992

Location #1

Spatial accuracy level
Administrative region
Location
Lubanda, Democratic Republic of the Congo

Target country
Congo, Dem. Rep.
Comment on location
90 km east of Lubumbashi and 80 km south of Kundelungu National Park.5000ha

Location #2

Spatial accuracy level
Administrative region
Location
Katofio, Democratic Republic of the Congo

Target country
Congo, Dem. Rep.
Comment on location
5000ha

Land area

Intended size (in ha)
10000
Size under contract (leased or purchased area, in ha)
[2007] 10000
Size in operation (production, in ha)
[2011] 650
[2014] 1500
[2015] 2500
Comment on land area
Lubanda and Katofio Farms- 5000ha each. Lubanda farm is currently being cultivated. The maize will be grown on a total of approximately 9 500 ha after allowances are made for access roads and related infrastructure. Note: "The concession contracts have been conferred for adjacent 1,000ha blocks"-- thus expect to see contracts for 1000ha only (but still relates to this deal and has been taken into account for the 10000ha).

Intention of investment

Intention of the investment
Food crops
Comment on intention of investment
The company shifted its planned 10,000 ha of sugarcane to maize for food consumption, partly in response to government subsidies. Maize at the moment- looking into other crops such as wheat.

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
Initially, the concession was obtained for a five-year period, however after demonstrating progress with regards to land development, the concessions were granted for a 25-year period.

Negotiation status

Negotiation status
[2007] Concluded (Contract signed)
Comment on negotiation status
Environmental and Social Assessments of the project were completed in 2010 and 2014-- primarily for funding purposes.

Implementation status

Implementation status
[2009] In operation (production)
Comment on implementation status
Lubanda farm is currently being cultivated.

Leasing fees

Comment on leasing fees
The annual fee is fixed at the amount in Congolese Francs equivalent to 245f or $ 245

Contract farming

Contract farming
Yes
Comment on contract farming
TERRA plans to develop an outgrower scheme in the future to assist in increasing maize production, as well as securing supply for its miling facilities. These schemes will also assist the community as they will be guaranteed off-take for their crop. Currently it is anticipated that at least 30 villages will be benefitting from the planned scheme.

Contract #1

Duration of the agreement (in years)
25

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of daily/seasonal workers (domestic)
200

Operating company

Operating company
Name of investment project
TERRA Farm
Comment on investment chain
Terra SPRL is owned by SOMIKA, which is 80% owned by Passiflora Limited and 20% by Daniel Piraino, a US businessman. Shareholders in Passiflora Ltd are Chaitanya Chug of the Vinmart Group, Rahim Dhrolia and Jaswant Rai.

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Date
2010-01-01
Comment on data source
Report: "Risks and Opportunities for the Developing World", by the World Bank

Data source #2

Data source type
Research Paper / Policy Report
File

Data source #3

Data source type
Company sources
File
Comment on data source
Company website

Data source #4

Data source type
Company sources
File
Comment on data source
Vinmart- Terra s.p.r.l.

Data source #5

Data source type
Company sources
File
Comment on data source
Youtube video on the project

Data source #6

Data source type
Company sources
File
Comment on data source
Youtube video on SOMIKA company

Data source #7

Data source type
Company sources
File
Comment on data source
TERRA Industrial Farming Complex Environmental and Social Impact Assessment

Data source #8

Data source type
Company sources
File
Comment on data source
TERRA Industrial Farming Complex -- Executive Summary

Data source #9

Data source type
Company sources
File
Comment on data source
Vinmart- Terra s.p.r.l.

Data source #10

Data source type
Contract
File
Open Contracting ID
ocds-591adf-2063488601
Comment on data source
From the Company ESIA" The concession contracts have been conferred for adjacent 1,000ha blocks". This contract relates to lease no. 0245 h 0249 of term of 25 years from the riding land of the Haut Katanga -Division of Real Estate Securities dated 27/06/ 2009.

Data source #11

Data source type
Contract
File
Open Contracting ID
ocds-591adf-2516801670
Comment on data source
TERRA SPRL, Land Lease Agreement, N° H.K./E 0254, 2009

Data source #12

Data source type
Contract
File
Open Contracting ID
ocds-591adf-8534098606
Comment on data source
TERRA SPRL, Land Lease Agreement, N° H.K./E 0253, 2009

Data source #13

Data source type
Contract
File
Comment on data source
TERRA SPRL, Land Lease Agreement, N° H.K./E 0252, 2009

Data source #14

Data source type
Contract
File
Open Contracting ID
ocds-591adf-2821902138
Comment on data source
TERRA SPRL, Land Lease Agreement, N° H.K./E 0251, 2009

Data source #15

Data source type
Contract
File
Open Contracting ID
ocds-591adf-4806093324
Comment on data source
TERRA SPRL, Land Lease Agreement, N° H.K./E 0250, 2009

Data source #16

Data source type
Contract
File
Open Contracting ID
ocds-591adf-7587825149
Comment on data source
ERRA SPRL, Land Lease Agreement, N° H.K./E 0249, 2009

Data source #17

Data source type
Contract
File
Open Contracting ID
ocds-591adf-7802275557
Comment on data source
TERRA SPRL, Land Lease Agreement, N° H.K./E 0248, 2009

Data source #18

Data source type
Contract
File
Open Contracting ID
ocds-591adf-1769177256
Comment on data source
TERRA SPRL, Land Lease Agreement, N° H.K./E 0247, 2009

Data source #19

Data source type
Contract
File
Open Contracting ID
ocds-591adf-1915705861
Comment on data source
TERRA SPRL, Land Lease Agreement, N° H.K./E 0246, 2009

Displacement of people

Comment on displacement of people
Investment displaced local cultivators, pushing them into a national park where farmers now pay guards to let them cultivate within the reserve; other farmers forced to relocate 50 km away where they rent land from local people. TERRA gave the community members two years to relocate as opposed to the six months required notification time.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
The company gave compensation, but it is unclear what this compensation was.

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Other
Comment on promised benefits for local communities
The company has installed two boreholes for the surrounding communities. The company has also installed solar street lights. Regular donation of medicines to local clinics. Projects still to be undertaken: revamp schools and provide educational material, create training program for small groups farmers, continue solar lighting solutions for surrounding villages, continue water solutions.

Former land owner (not by constitution)

Former land owner
Community

Former land use

Former land use
Smallholder agriculture
Other
Comment on former land use
Lake Lubanda is also contained within the concession area.

Former land cover

Former land cover
Cropland
Marginal land
Comment on former land cover
Lake- Lake Lubanda is also contained within the concession area (the community still has access to the lake).

Detailed crop, animal and mineral information

Crops area
Corn (Maize)

Use of produce

Has domestic use
Yes

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Company constructed milling facilities- under the company African Milling Company Congo. Terra produces approximately 10,000 tonnes of grain

Water extraction envisaged

Water extraction envisaged
Yes
Comment on water extraction envisaged
Another source states rain-fed crops.

Source of water extraction

Source of water extraction
Surface water (River)
Comment on source of water extraction
The following rivers run through the concession: Kafira River, Kabemba River and Kalemba River. Lake Lubanda is also contained within the concession area.

Overall comment

Overall comment
Note: "The concession contracts have been conferred for adjacent 1,000ha blocks"-- thus expect to see contracts for 1000ha only (but still relates to this deal and has been taken into account for the 10000ha).

March 19, 2019, 4:44 p.m.

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March 19, 2019, 3:53 p.m.

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March 19, 2019, 3:51 p.m.

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March 29, 2018, 2:40 p.m.

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March 14, 2018, 12:16 p.m.

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Feb. 27, 2017, 11:55 a.m.

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Sept. 27, 2016, 5:31 p.m.

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Feb. 24, 2016, 11:35 a.m.

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Aug. 5, 2015, 5:48 p.m.

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July 12, 2013, 2:30 p.m.

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April 18, 2013, 1:58 p.m.

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Feb. 15, 2013, 5:03 p.m.

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