Deal #3447

Location #1

Spatial accuracy level
Administrative region
Location
Montserrado, Liberia

Target country
Liberia
Comment on location
Power plants to be build in Montserrado County, and in Kakata -in Margibi County.

Location #2

Spatial accuracy level
Administrative region
Location
Grand Bassa, Liberia

Target country
Liberia
Comment on location
Smallholder farmers in Grand Bassa county

Location #3

Spatial accuracy level
Coordinates
Location
Kakata, Liberia

Latitude
6.523934700059051
Longitude
-10.37154648674857
Comment on location
Power plants to be build in Montserrado County, and in Kakata- in Margibi County. Exact co-ordinates from contract (this is where one of the power plants was due to be built).

Land area

Intended size (in ha)
250000
Size under contract (leased or purchased area, in ha)
[2009] 250000
Comment on land area
Cutting down old rubber trees (Firestone plantations) for production of wood chips.

Intention of investment

Intention of investment
Renewable Energy
Comment on intention of investment
Electricity generated was due to be sold to the Liberia Electric Corporation. In addition, the company was due to provide assistance in rejuvenating small rubber farms. Contract requires the company to replant trees following harvesting.

Negotiation status

Negotiation status
[2009] Concluded (Contract signed)

Implementation status

Implementation status
[2010] In operation (production)
[2013] Project abandoned
Comment on implementation status
Investor company sold to investment group. Apparently sold in beginning of 2013 to Gulf Renewable Energy NV based on the Dutch island of Curacao.

Leasing fees

Annual leasing fee
40000
Annual leasing fee currency
US Dollar ($)
Annual leasing fee type
for specified area
Purchase price area
250000
Comment on leasing fees
According to the Ernst & Young report, the company paid US$40,000 rent / lease in the period 1 July 2010-30 June 2011. In addition, the company paid over US$45,000 log export fees

Contract farming

Contract farming
Yes
On leased / purchased area
Yes
On leased / purchased farmers
34
Comment on contract farming
Farmers were provided with young rubber trees and the means to maintain these trees. First contracts signed between BRF and smallholder farmers in 2008.

Contract #1

Duration of the agreement (in years)
25

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
[2013] 600
Comment on jobs created (domestic)
Buchanan begins dismissing over 600 employees over a 3 -month period through a formal retrenchment process in 2013 (once winding down of operations commenced).

Operating company

Comment on investment chain
Overseas Private Investment Corporation (OPIC) provided loans for the project. These loans were re-paid in May 2012, indicating the commencement of the winding down of the project. Apparently sold in beginning of 2013 to Gulf Renewable Energy NV based on the Dutch island of Curacao. Alternative primary investor name: Buchanan Renewable Energy

 

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Data source #1

Data source type
Media report
File
Date
2013-01-04
Comment on data source
All Africa- Liberia: Buchanan Renewables Sold to new investor

Data source #2

Data source type
Media report
File
Comment on data source
Buchanan Renewables- Na Bioshape opnieuw Nederlands bedrijf in Afrika in opspraak.

Data source #3

Data source type
Research Paper / Policy Report
File
Comment on data source
Cut and Run: Update on the impact of Buchanan Renewables' operation and Vattenfall's divestment, March 2013

Data source #4

Data source type
Government sources
File
Comment on data source
LEITI Ernst & Young report

Data source #5

Data source type
Contract
File
Open Contracting ID
ocds-591adf-0077088563
Comment on data source
Contract relates more to the production of electricity than the lease agreement for land for the project (there may be a separate contract for this).

Data source #6

Data source type
Media report
File
Date
2013-01-07
Comment on data source
Front page Africa- Sale of Buchanan Renewables: Another Liberian Tragedy

Data source #7

Data source type
Research Paper / Policy Report
File
Comment on data source
Ofiice of Accountability. OA Review: Buchanan Renewable Energy Projects in Liberia, September 2014

Data source #8

Data source type
Media report
File
Date
2015-01-27
Comment on data source
Daily Mail- US loans fueled insider deal, failed power plan in Liberia

Data source #9

Data source type
Contract
File
Open Contracting ID
ocds-591adf-0077088563

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Roads
Capacity Building

Former land use

Former land use
Commercial (large-scale) agriculture

Former land cover

Former land cover
Cropland

Detailed crop, animal and mineral information

Crops area
Trees (unspecified)

Use of produce

Has export
Yes
Export
100
Comment on use of produce
The plan was to harvest old rubber trees, produce wood chips for power generation from newly build power plants. Instead of building the new power plants, wood chips were exported to Europe

Overall comment

Overall comment
Intention to harvest old rubber plantations to produce wood chips for local power generation. Power plants were never build by the investor, exporting the wood chips instead. In late 2013, OPIC’s senior management received a detailed written complaint from Liberian and U.S. NGOs alleging a wide range of human and labor rights abuses,as well as adverse environmental and economic impacts associated with BRF’s operations. The complaint identifies three primary groups of aggrieved parties –smallholder farmers under contract with BRF, people who make charcoal for a living, and former BRF workers. In 2013 the company was sold- apparently sold in beginning of 2013 to Gulf Renewable Energy NV based on the Dutch island of Curacao. It is still not clear whether the project was sold to Gulf Renewable Energy NV and whether it is operational.

March 19, 2019, 3:49 p.m.

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March 19, 2019, 2:43 p.m.

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May 12, 2017, 1:47 p.m.

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May 12, 2017, 1:46 p.m.

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May 11, 2017, 10:27 p.m.

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April 25, 2017, 5:28 p.m.

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Dec. 2, 2016, 10:37 a.m.

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Sept. 22, 2016, 3:05 p.m.

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Dec. 8, 2015, 12:45 p.m.

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Aug. 3, 2015, 2:11 p.m.

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Nov. 19, 2013, 10:33 a.m.

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July 10, 2013, 12:25 p.m.

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May 31, 2013, 4:44 p.m.

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April 18, 2013, 3:55 p.m.

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April 18, 2013, 3:51 p.m.

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March 25, 2013, 9:05 a.m.

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