Deal #2236

Location #1

Spatial accuracy level
Exact location
Location
Kango, Gabon

Latitude
-0.01635209404796001
Longitude
10.204059025646526
Target country
Gabon

Land area

Size under contract (leased or purchased area, in ha)
[2010] 20030
Size in operation (production, in ha)
6822
Comment on land area
Area dedicated to HCV forest and buffer zone- 12 482ha.

Intention of investment

Intention of investment
Non-food agricultural commodities, Agriculture unspecified, Conservation

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
Olam Palm Gabon has entered into a sale of long term lease rights of land and a sale and lease-back of plantation and milling assets, comprising 20,030 hectares of total land area in Awala, Gabon for a cash consideration of US$130.0 million with YCAP Asset Management (“YCAP”). Under this agreement, YCAP holds the rights to the long term leases on the land. The agreement is valid for a period of 18 years, extendable for another three years at the request of either party. OPG retains the right to operate the palm plantation and mill in Awala and will therefore continue to participate in the production economics of the palm plantation without the asset intensity - see more at: http://olamgroup.com/news/olam-palm-gabon-enters-sale-long-term-lease-rights-land-sale-lease-back-plantation-milling-assets-awala-us130m/#sthash.QATp3sg6.dpuf

Negotiation status

Negotiation status
[2010] Concluded (Contract signed)

Implementation status

Implementation status
[2012] Startup phase (no production)
[2012] In operation (production)
Comment on implementation status
planting palms is expected to commence in early 2012 and be completed by 2016. Clearing of secondary forest in the Kango plantation had taken place by the end of April 2012. Another data sources mentions planting started in 2011.

Leasing fees

Annual leasing fee
5000
Annual leasing fee currency
CFA Franc BCEAO
Annual leasing fee type
per ha
Comment on leasing fees
Olam claims that it will pay a lease rent of CFA Franc 5,000 (US$10) per hectare from the 17th year. The first 16 years are free. (company source)

Number of total jobs created

Jobs created (total)
Yes
Current number of jobs (total)
1200
Comment on jobs created (total)
The Awala plantation employs some 1,200 staff, more than 90% of whom are Gabonese nationals. There have been reports of unfair wages and harsh treatment of employees, however the company has responded that this is not the case.

Operating company

Operating company
Name of investment project
Awala Plantation
Comment on investment chain
Olam Palm Gabon has entered into a sale of long term lease rights of land and a sale and lease-back of plantation and milling assets, comprising 20,030 hectares of total land area in Awala, Gabon for a cash consideration of US$130.0 million with YCAP Asset Management (“YCAP”). Under this agreement, YCAP holds the rights to the long term leases on the land. The agreement is valid for a period of 18 years, extendable for another three years at the request of either party. OPG retains the right to operate the palm plantation and mill in Awala and will therefore continue to participate in the production economics of the palm plantation without the asset intensity - see more at: http://olamgroup.com/news/olam-palm-gabon-enters-sale-long-term-lease-rights-land-sale-lease-back-plantation-milling-assets-awala-us130m/#sthash.QATp3sg6.dpuf

 

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Data source #1

Data source type
Media report
File
Publication title
Temasek subsidiary makes bid for Olam
Date
2014-03-14

Data source #2

Data source type
Company sources
File
Date
2016-10-04
Comment on data source
Olam Palm Gabon leads Africa’s sustainable plantation development with RSPO Certification of Awala, boosting Africa’s total certified production hectares by 30%

Data source #3

Data source type
Company sources
File
Comment on data source
Olam Sustainable Palm Oil Policy, June 2015

Data source #4

Data source type
Company sources
File

Data source #5

Data source type
Research Paper / Policy Report
File
Comment on data source
Rainforest foundation - Seeds of destruction

Data source #6

Data source type
Company sources
File
Comment on data source
Olam- Upstream

Data source #7

Data source type
Company sources
File
Comment on data source
Olam Insights- Issue 1/2016: Olam Palm Gabon sets benchmark for sustainable, large-scale palm plantation in Africa

Data source #8

Data source type
Company sources
File
Date
2016-12-12
Comment on data source
Olam’s response to Mighty Earth and Brainforest report

Data source #9

Data source type
Research Paper / Policy Report
File
Comment on data source
Mighty Earth- Palm Oil’s Black Box, How Singapore’s national wealth fund has fueled a secret vehicle for deforestation from Gabon to Indonesia. December 2016.

Data source #10

Data source type
Company sources
File
Comment on data source
Olam annual report 2012

Data source #11

Data source type
Company sources
Date
2015-12-30
Comment on data source
Press release on sale of lease rights to YCAP

Data source #12

Data source type
Research Paper / Policy Report
File
Comment on data source
Unjust Enrichment: How the IFC Profits from Land Grabbing in Africa, April 2017.

Data source #13

Data source type
Research Paper / Policy Report
File
Comment on data source
Reducing Carbon Emissions from Forest Conversion for Oil Palm Agriculture in Gabon

Data source #14

Data source type
Media report
File
Date
2016-10-04
Comment on data source
Financial Afrik- Olam Palm Gabon : premier en Afrique à obtenir la certification RSPO

Data source #15

Data source type
Research Paper / Policy Report
File
Comment on data source
Grain-Planet palm oil, September 2014

Data source #16

Data source type
Media report
File
Date
2017-04-11
Comment on data source
Gabon : l’ONG Brainforest dénonce l’accaparement des terres par OLAM

Data source #17

Data source type
Media report
File
Publication title
Olam revendique une production de 8 866 tonnes d’huile de palme au premier semestre 2017
Date
2017-11-14

Data source #18

Data source type
Media report
File
Publication title
Face aux revendications de meilleures conditions de travail, l’agro-industriel Olam Gabon se défend
Date
2019-06-07

Data source #19

Data source type
Company sources
File
Publication title
Palm Plantations

Consultation of local community

Community consultation
Free, Prior and Informed Consent (FPIC)
Comment on consultation of local community
FPIC was obtained.

How did the community react?

Community reaction
Mixed reaction
Comment on community reaction
Across our palm plantations in Gabon (and also for rubber), Olam now has social contracts with 46 villages which include commitments to improve the lives of local people, based on their choices

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
If a proposed development is initially accepted, community representatives and Olam adopt procedures for consultation and identifying individuals or groups entitled to compensation.

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Roads
Capacity Building
Other
Comment on promised benefits for local communities
Aside from giving priority to local employment, our engagement and management plans cover health, education, lighting, transport and village farming.

Materialized benefits for local communities

Materialized benefits for local communities
Health
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)
Other
Comment on materialized benefits for local communities
For example, since 2012 we have built or refurbished 14 schools and handed out 5,000 school kits; set up worker health centres and organised HIV awareness training at all our sites; drilled 60 village wells; and installed over 2,200 solar lamps for streets and homes. We have built two village cassava mills and trained small farmers to produce better yields with improved planting stock of banana, cassava and palm- understanding that this is throughout the entire plantations.

Former land owner (not by constitution)

Former land owner
State

Former land use

Former land use
Forestry
Comment on former land use
Olam committed to not convert high conservation value (HCV) forests, however the areas for development still contain significant timber and carbon value. A moratorium was signed on 31 January stopping the company from further deforestation.

Former land cover

Former land cover
Forest land
Comment on former land cover
The land is of high conservation value. A ramsar site is located within the land area granted to Olam.

Detailed crop, animal and mineral information

Crops area
Oil Palm

Use of produce

Has domestic use
Yes
Has export
Yes
Comment on use of produce
Mostly for export to Europe

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Palm oil production. The Olam oil palm factory was inaugurated on the 14th of August 2015.

Overall comment

Overall comment
The plantations are RSPO certified. Olam Palm Gabon (OPG) has partnered with WWF Gabon to roll out SMART (Spatial Monitoring and Reporting Tool) software to monitor the protected areas within the palm plantations- thereby allowing the team to record wildlife observations within the 72,000 ha of High Conservation Value (HCV) areas.

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