Deal #272

Land area

Size under contract (leased or purchased area)

[2010-01-01] 50000 ha
[2017-01-01, current] 24000 ha

Size in operation (production)

[2010-01-01] 22434 ha
[2018-01-01, current] 24000 ha
[2017-01-01] 24000 ha

Comment on land area

According to the company website, it has approximately 24,000 hectares of lease area in Bolikhamxay and Khammouane provinces under a concession agreement. The company has announced on it website that the plantation area of 10,898 ha of high-quality eucalyptus and acacia, all FSC certified. As of approximately 24,000 ha, 8,978 ha in Bolikhamxay and 14,942 ha in Khammoune provinces Source: Vientiane Times (Lao language)

Intention of investment

[current] For carbon sequestration/REDD, Conservation

Comment on intention of investment

Oji Paper wanted to get REDD funding for its plantations in Laos but sold the project to New Forests Asia in 2017.

Carbon offset project

No

Nature of the deal

Concession

Negotiation status

Concluded (Contract signed)
[2017-04-01, current] Concluded (Change of ownership)

Comment on negotiation status

Previous owner, Oji Paper Co. Ltd, sold the project to New Forests Asia in 2017. Mekong Timeber Plantation (MTP) launched in 2017 under new ownership control with New Forests’ equity investment and seeks to re-invigorate operational management of timber plantations established under prior ownership. Source: IFC

Implementation status

[2005-01-01, current] In operation (production)

Comment on implementation status

The company’s just got a financing’s support from FMO (Dutch entrepreneurial development bank). With this financing, the company aims to further expand its plantation area and to establish an integrated saw log, veneer and chipping mill. They signed the contract of this funding on 15th March 2021. Nearly 11,000 ha of plantation area, eucalyptus and acacia are grown. The plantation forest estate and management are certified by the Forest Stewardship Council (FSC). Source: FMO

Contract farming

Yes

Not on leased / purchased (out-grower)

Yes

Not on leased area/farmers/households (out-grower)

[2018, current] 5000 ha 5000

Comment on contract farming

MTP website: MTP and IFC have jointly developed a 2-year program to address the structural issues with the existing Outgrower Scheme (“OGS 1”), established in 2005 by the previous management company. The program aims to assess the current system and undertake a comprehensive redesign, developing “OGS 2”. According to the source in 2018, company supported approximately 5,000 outgrower farmers. MTP’s outgrower operations include approximately 5,000 hectares of plantations established under the purview of the plantation’s prior owners starting in 2005. Source: IFC Currently, the company also operates a contract farming, or "outgrower" scheme (Oji LPFL's Outgrower Scheme 1) consisting of approximately 5,000 individual farmers, who also grow Eucalyptus or Acacia. Each farmer has an average plot size of 1 hectare, which brings the total size of the scheme to 5,000 hectares.