Please note: you are viewing an old version of this deal. The current version can be found here: Deal #2309

Deal #2309 Version #57667

South Sudan

Created at

2013-02-15

Last update

2013-06-27

Land area

Intended size

179 859 ha

Size under contract (leased or purchased area)

[current] 179859.0 ha

Comment on land area

trial planting started in 2008. The company estimates that it can realistically establish a plantation on 45,000 of the 179,000 hectares that it has leased, leaving the remainder to grow as natural forest.

Intention of investment

[current] Timber plantation for wood and fiber, For carbon sequestration/REDD, Conservation

Comment on intention of investment

Purpose: produce timber, rehabilitate degraded forest areas, generate revenue from carbon offsets

Nature of the deal

Lease

Negotiation status

[2007] Intended (Under negotiation)
[2010, current] Concluded (Contract signed)

Comment on negotiation status

negotiations started in 2007, trial planting in 2008, 2010 final stages of obtaining title on land

Implementation status

[2008, current] Startup phase (no production)

Leasing fees

Comment on leasing fee

the rental amount indicated in the investment agreement does not seem to adequately represent the value of the land. According to the agreement, Tindilo Community is to receive rent in the amount of US $12,500 in the first year of the lease, followed by annual rent increases of two-percent to cover inflation, in addition to the commitments that the investor made in the Community Support Program Agreement. 412 This translates to approximately US $0.07 per hectare per year and seems to be little more than a symbolic payment.