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Deal #1999 Version #56554

Congo, Dem. Rep.

Created at

2013-02-15

Last update

2017-02-27

Last full update

2024-03-04

Land area

Intended size

101 455 ha

Size under contract (leased or purchased area)

[2009, current] 101455.0 ha

Size in operation (production)

[2012] 17854.0 ha
[2015, current] 24907.0 ha

Comment on land area

3 plantations. 55000ha available for planting. Feronia acquired these plantations by buying 76% of Plantations et Huileries du Congo (PHC, registered in DR Congo). Feronia purchased these shares from Unilever. Another report states that the company has 107 000ha. One report states that Feronia is starting to plant even in the fishponds owned by the communities.

Intention of investment

[current] Biomass for biofuels, Food crops, Agriculture unspecified

Comment on intention of investment

Palm Oil and Palm Kernel Oil

Nature of the deal

Lease

Comment on nature of the deal

The leases on the various concessions (80 in total) expire at different times (between 2017 and 2030), all are based on a 25 year revolving lease. Renewal fees range from $1000-2000 per lot. One report states that the company is unable to prove its land rights.

Negotiation status

[2009, current] Concluded (Contract signed)

Comment on negotiation status

Feronia acquired these plantations by buying 76% of Plantations et Huileries du Congo (PHC, registered in DR Congo). Feronia purchased these shares from Unilever. The land sold by Unilever was overvalued by $6.7 million. Feronia Inc has accumulated losses since the deal. However, directors and managers of Feronia Inc. continue to get paid large amounts. The losses of Feronia Inc are absorbed by the DRC government, being shareholders of the project as well as the continuing finance received from multilateral banks and development finance institutions. One data source states Feronia took the plantations over in 2008.

Implementation status

[2009, current] In operation (production)

Comment on implementation status

Started as PHC in 1911. Plantations suffered neglect (abandonment) from Unilever in the early 2000's. Bought from Unilever in 2009. Environmental and Social Impact assessment to be carried out in 2015 due to the community protests.

Purchase price

Comment on purchase price

Bought the operations from Unilever for $3 854 551

Leasing fees

Comment on leasing fee

Feronia Inc. refuses to pay revenue taxes, claiming it qualifies for the tax holiday offered by the DRC government.