Deal #3463

Location #1

Spatial accuracy level
Exact location
Location
Pleebo, Liberia

Latitude
4.584712986919101
Longitude
-7.61532387671468
Target country
Liberia
Contract area
Comment on location
22km from the Port of Harper; Coordinates of contract area in contract, page 62 (Appendix 1)

Land area

Intended size (in ha)
8800.0
Size under contract (leased or purchased area, in ha)
[2010] 8800
Comment on land area
8800 hectare for company production and 6400ha for outgrower scheme. Another source mentions size is 8903,092 ha.

Intention of investment

Intention of investment
Agriculture unspecified, For carbon sequestration/REDD
Comment on intention of investment
The company is entitled to sell the carbon rights.

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
Duration 25 years with an option for automatic extentsion for a futher ten years upon the company's request, granted that the company has kept its contractual obligations.

Negotiation status

Negotiation status
[2010] Concluded (Oral Agreement)
[2011] Concluded (Contract signed)
Comment on negotiation status
The company won the bid for the plantation in 2010 and was authorised to begin production from 2010, however the contract was only signed in 2011. US$ 64 million dollar investment- US$ 48 million for the development of the company plantation and US$15 million for the outgrower plantation.

Implementation status

Implementation status
[1990] Project abandoned
[2010] Startup phase (no production)
Comment on implementation status
This plantation was formerly state owned (production commencement date is unknown). The concession area was previously owned and managed by the Decoris Oil Palm Company (DOPC), however, in 1990, as a result of the Liberia's civil war, production and development of the plantation was abandoned. Sifca is planting palm-oil seeds on 15,000 hectares (37,000 acres) of land in south-eastern Liberia (2013).

Leasing fees

Annual leasing fee
5
Annual leasing fee currency
US Dollar ($)
Annual leasing fee type
per ha
Comment on leasing fees
The company will pay US $5.00 per hectare for developed land in the concession area. The company is taxed US $1.00 per acre for undeveloped land and US $2.00 per acre of developed land. Data obtained from a formal source (contract) Investor was required to pay a once-off leasing fee of US$ 3100000 in 2011.

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
6400
Comment on contract farming
Purchase price shall be the export sales price, depending on the grade of produce.

Contract #1

Contract date
2011
Contract expiration date
2036
Duration of the agreement (in years)
25
Comment on contract
The Maryland Oil Palm Plantation is a 25-year concession agreement that was renegotiated out of the former Decoris Oil Plantation for the rehabilitation and development of an oil palm plantation and oil processing plant (20,000 acres/8,800 hectares) in Gedetabo, Maryland County.

Number of total jobs created

Jobs created (total)
Yes
Comment on jobs created (total)
Contract requires investor to employ Liberian unskilled labour for all positions, and 50% of management being Liberian (by 2016) with an increase to 75% Liberian in 10 years (2021).

Operating company

Name of investment project
Decoris Oil Palm Plantation
Comment on investment chain
ING finances the Singaporean agribusiness Wilmar that in turn finances the Maryland Oil Palm Plantation (MOPP). As of 2018 Wilmar became a sole owner of Nauvu Joint Venture Company, which in 2017 owned 27 percent of the shares in SIFCA that controls MOPP.

 

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Data source #1

Data source type
Media report
File
Date
2010-12-01
Comment on data source
John Libbey Eurotext- Développement de la filiè palmier à huile en Côte-d'Ivoire

Data source #2

Data source type
Research Paper / Policy Report
File
Publication title
Respecting Rights? Assessing Oil Palm Companies’ Compliance with FPIC Obligations A case study of Maryland Oil Palm Plantation in south-eastern Liberia
Date
2015-12
Comment on data source
Respecting Rights? Assessing Oil Palm Companies’ Compliance with FPIC Obligations

Data source #3

Data source type
Research Paper / Policy Report
File
Comment on data source
Grain- The global farmland grab in 2016: how big, how bad?

Data source #4

Data source type
Media report
File
Comment on data source
SIFCA Rubber and Oil Palm Plantations, Liberia

Data source #5

Data source type
Government sources
File
Date
2013-01-29
Comment on data source
Legislature of Liberia- Dr Chambers receives petitions to contest senatorial seat

Data source #6

Data source type
Media report
File
Comment on data source
Insight news online- Maryland lawmakers reject SIFCA agreement

Data source #7

Data source type
Company sources
File
Comment on data source
Annual report 2011

Data source #8

Data source type
Media report
File
Date
2013-07-21
Comment on data source
Bloomberg- Sifca to invest $417 million in West Africapalm-oil expansion

Data source #9

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

Data source #10

Data source type
Contract
File
Date
2011-08-02
Open Contracting ID
ocds-591adf-5085611127
Comment on data source
The Concession Agreement Between the Government of Liberia And the Maryland Oil Palm Plantation; Coordinates of contract area in contract, page 62 (Appendix 1)

Data source #11

Data source type
Research Paper / Policy Report
File
Comment on data source
African Development Bank- MARYLAND OIL PALM PLANTATION (MOPP)

Data source #12

Data source type
Other (Please specify in comment field)
File
Comment on data source
LEITI Companies database

Data source #13

Data source type
Other (Please specify in comment field)
File
Date
2018-06-08
Comment on data source
Liberian civil society organizations and community letter to Wespac (wilmar's tertiary investor).

Data source #14

Data source type
Media report
File
Publication title
Liberian communities harassed after calling on banks to halt $1.5 billion loan to Wilmar over land grabbing and human rights concerns
Date
2018-07-25

Data source #15

Data source type
Research Paper / Policy Report
File
Publication title
ABRIDGED SIMPLIFIED CONTRACT MATRIX Designed for Multistakeholders Reference LIBERIA EXTRACTIVE INDUSTRIES
Date
2015-12

Consultation of local community

Community consultation
Not consulted
Comment on consultation of local community
The MOPP/SIFCA concession agreement was signed without the free, prior and informed consent of the affected communities in Pleebo/Sodoken District, Maryland County, Liberia.

How did the community react?

Community reaction
Rejection

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
MOPP/SIFCA cleared, occupied and established its oil palm plantation on the customary and deeded land of indigenous Pleebo communities and peoples, even going beyond the land areas previously cleared by its predecessor, Decoris, without their consent.

Displacement of people

Comment on displacement of people
Resettlement only if the inhabitants impede the investors development. Another source states: Individual accounts suggest communities were forcibly evicted from their homes; properties were destroyed and houses burnt; and communities lost their farmlands and their livelihoods - but did not receive any compensation for crops destroyed or for any other damages.

Negative impacts for local communities

Negative impacts for local communities
Socio-economic
Cultural loss
Violence
Other
Comment on negative impacts for local communities
MOPP/SIFCA destroyed crops, farm lands, sources of drinking water, other natural resources, and burial grounds. MOPP/SIFCA polluted several water sources of the affected communities through the company’s use of agro-chemicals and land clearing.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
The investor and the government work together to resettle, at the investors cost, up to a maximum of US$ 200 per hectare. The government will pay the costs exceeding US$200. Investor resettlement costs will be credited against income tax payable.
Received compensation (e.g. for damages or resettlements)
Communities claim that they have not received compensation. MOPP did not sign Memorandum of Understanding (MOU) with the affected communities that addresses expectations of the communities and documents the social responsibility and other commitments of the company to the communities and by which MOPP can be held accountable.

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Financial Support
Comment on promised benefits for local communities
Investor to provide reasonable medical care for local communities. The company will invest $5 per developed hectare annually to the community development fund- the fund is managed by a committee selected by the local community. Benefits not delivered as promised.

Materialized benefits for local communities

Comment on materialized benefits for local communities
Communities have protested and have often organized strike actions against MOPP for benefits that have been promised but have not been delivered.

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)
Liberian civil society organizations and community leaders warned lenders about the human rights and environmental violations associated with the plantation in a June 8 letter, 2018.

Former land owner (not by constitution)

Former land owner
State
Comment on former land owner
Formerly part of the Decoris Plantation (managed by Decoris Inc.) which was privatised in 2010 after a tender process.

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
Oil Palm

Use of produce

Has domestic use
Yes
Has export
Yes

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Assets included in the concession include CPO storage tanks and an export tank farm at the Port of Harper.

Water extraction envisaged

Water extraction envisaged
Yes

How much water is extracted?

Comment on how much water is extracted
Investor is exempt from water levies.

July 14, 2020, 10:35 a.m.

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