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Deal #3464 Version #61362

Liberia
Created at
2013-03-25
Last update
2016-12-06
Last full update
2020-07-14

Land area

Intended size
35 000 ha
Size under contract (leased or purchased area)
  • [2011, current] 35000.0 ha
Size in operation (production)
  • [2012, current] 4500.0 ha
Comment on land area
Contract states: 27,000 hectares in size from which an area of 22,000 hectares will be mutually selected to be part of the concession area and an area equal to 5,000 hectares of land will be mutually selected for the outgrowers' program. Thus total size is 35000ha (contract states existing land size is 8000ha not 8800ha). Another data source states of the total 35,000 ha: 4,500 hectares are currently planted with rubber trees, which are to be progressively replanted, 25,500 hectares will be available to extend the CRC plantations, 5,000 hectares will be devoted to the cultivation of rubber by peasant farmers.

Intention of investment

Intention of investment
  • [current] Non-food agricultural commodities, Agriculture unspecified

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
Contract is renewable. Cavalla Rubber Corporation and the Government shall meet not later than 10 years before the expiration of the contract to discuss the extension of the contract. Contract states duration of lease is 50 years including 7 years for rehabilitation. Another data source states 25 years.

Negotiation status

Negotiation status
  • [2008, current] Concluded (Contract signed)
Comment on negotiation status
In 2008 the current owner obtained a 60% share in the company. This was extended to 100% in 2012. Contract signed in 2011- 06/06/2011 (date of ratification).

Implementation status

Implementation status
  • [current] In operation (production)

Leasing fees

Annual leasing fee
10 000
$
for specified area
Comment on leasing fee
The company paid a total of US$10,000 for surface rental for the period 1 July 2010-30 June 2011. Contract states the company shall pay annually a surface rental fee of US $2.00 per acre within the developed area and US $1.00 per acre of undeveloped land within the concession. This amount shall be subject to inflationary adjustment.

Contract farming

Contract farming
Yes
On leased / purchased
Yes
On leased area/farmers/households
  • [current] 5000.0 ha
Comment on contract farming
Contract states: Cavalla Rubber Corporation shall establish an outgrower's program within 3 years of the effective date.Cavalla Rubber Corporation shall exclusively develop and manage the land designated for such program on a cost recovery basis for the benefit of the outgrowers as shareholders in organized cooperatives. Cavalla Rubber Corporation shall have the exclusive right to, and commits to, purchase produce harvested from this program.