Deal #3738 Version 95530 Version 95531
Size under contract (leased or purchased area)
  • [2009, current] 6700.0 ha
  • [2008-01-01, current] 6700.0 ha
Size in operation (production)
  • [2013-05, current] 1โ€ฏ012.42 ha
Comment on land area
Initially 4,200 but extended with 2,500ha. Further expansion in Sud-Kwamouth territory planned.
Initially 4,200 but extended with 2,500ha. Further expansion in Sud-Kwamouth territory planned. May 2013 is the latest date for which information on planted area is publicly available (according to a 2017 report).
Intention of investment
  • [current] For carbon sequestration/REDD, Forestry unspecified
  • [2008-01-01, current] For carbon sequestration/REDD, Forestry unspecified (6โ€ฏ700 ha)
Comment on carbon offset project
The DRC registered the Ibi Batรฉkรฉ Carbon Sink Plantation Project as its first CDM (Clean Development Mechanism) project in 2011. The project claimed to store 54,511 tonnes of CO2 annually, creating 2.4 million carbon credits over 30 years, allowing investors to offset their emissions by financing the project. Income from carbon credit sales was partly promised for community projects, such as education funding, as highlighted by a 2011 World Bank press release (see: https://www.worldbank.org/en/news/press-release/2011/03/08/congo-community-to-use-carbon-payments-to-put-kids-through-school). Initial funding came from the World Bank's BioCarbon Fund, French company Orbeo, UNEP, UMICORE, and Suez, with loans and pre-payments for carbon credits totaling over $1.5 million. Despite funding, by May 2013, only 1012 hectares had been planted, and the project had not issued any carbon credits by 2016, with financial struggles despite initial loans and pre-payments. Reports differ on the expected contribution of carbon credit sales to the projectโ€™s income, with some attributing as little as 1% to carbon credits and up to 68% to cassava sales.
The DRC registered the Ibi Batรฉkรฉ Carbon Sink Plantation Project as its first CDM (Clean Development Mechanism) project in 2011. The project claimed to store 54,511 tonnes of CO2 annually, creating 2.4 million carbon credits over 30 years, allowing investors to offset their emissions by financing the project. Income from carbon credit sales was partly promised for community projects, such as education funding, as highlighted by a 2011 World Bank press release (see: https://www.worldbank.org/en/news/press-release/2011/03/08/congo-community-to-use-carbon-payments-to-put-kids-through-school).
Negotiation status
  • [2009, current] Concluded (Contract signed)
  • [2008-01-01] Concluded (Contract signed)
  • [2016] Concluded (Change of ownership)
  • [2016, current] Concluded (Contract signed)
Comment on negotiation status
For a set of primarily financial reasons, a restructuring of Novacel took place in 2015 to allow the further development of the IBi Bateke project. Under the terms of this restructuring, a new company was established in 2016 under the name Mushiete et compagnie by the Mushiete family and a group of investors who have accompanied the project since the beginning. Pursuant to this restructuration, all real estate assets were contributed to Mushiete & CO by the Mushiete family, the long term lease with NOVACEL was terminated and all land use rights including the trees and future emission reductions for the duration of the project developed by NOVACEL have been transferred to M & CO, in exchange of a debt recovery of Novacel by Mushiete &CO.
Comment on implementation status
The company generates income from cassava production.
The company generates income from cassava production. The company has struggled to deliver on their promise of carbon credits. By 2017, no carbon credits have been delivered. It is facing financial difficulties and the income from cassava production keeps it afloat (as of 2017). A new CDM project design document for the Ibi Batรฉkรฉ degraded savannah afforestation project for fuelwood production (Democratic Republic of Congo) was submitted in 2020.
Comment on investment chain
With support from the World Bank through the Bio Carbon Fund. There are three associations active in Ibi Village: Novacel, GI Agro et Profinaf Invest. They have complementary missions: the exploitation and commercialisation of agroindustrial productions, social and technical development, and the implementation of innovative projects in the field of fight against climate change. Novacel and GI-Agro are controlled by the Mushiete company. A World Bank report states that the presence of the BioCarbon Fund as an early investor led to the French company Orbeo (a joint venture between chemicals company Rhodia and the French bank Sociรฉtรฉ General that has since been bought by Belgian company Solvay Energy Services) making an up-front payment for an equal amount of carbon credits to that of the BioCarbon Fund. The UN Environmental Programme, UNEP, covered some of the costs for technical documents required to prepare a carbon offset project. Two French companies, UMICORE (active in the mining sector) and Suez (an energy corporation), are mentioned as having provided 7-year loans of EUR 250,000 each (charcoal sales were expected to generate revenue from year 7, enabling the repayment of the loans). Several reports also note that two individuals invested a total of EUR 550,000 in the project.
There are three associations active in Ibi Village: Novacel, GI Agro et Profinaf Invest. They have complementary missions: the exploitation and commercialisation of agroindustrial productions, social and technical development, and the implementation of innovative projects in the field of fight against climate change. Novacel and GI-Agro are controlled by an individual Olivier Mushiete. Olivier a DRC citizen, and long-term resident in Belgium claim to have inherited the land from his late father together with his siblings. 8000ha was titled in his name and a part of this was used for the concession for the project. A World Bank report states that the presence of the BioCarbon Fund, a World Bank-administered Fund purchased half a million carbon credits, which led to the French company Orbeo (a joint venture between chemicals company Rhodia and the French bank Sociรฉtรฉ General that has since been bought by Belgian company Solvay Energy Services) making an up-front payment for an equal amount of carbon credits to that of the BioCarbon Fund. In addition, the BioCarbon Fund has had a pivotal role in enabling NOVACEL to obtain loans from private firms to finance the upfront investments of the project and assisted with the technical registration for CDM. The UN Environmental Programme, UNEP, covered some of the costs for technical documents required to prepare a carbon offset project. Two French companies, UMICORE (active in the mining sector) and Suez (an energy corporation), are mentioned as having provided 7-year loans of EUR 250,000 each (charcoal sales were expected to generate revenue from year 7, enabling the repayment of the loans). Several reports also note that two individuals (unnamed) invested a total of EUR 550,000 in the project.
Materialized benefits for local communities
Health, Education, Capacity building, Other
Comment on materialized benefits for local communities
The study, the realization of the upstream works of the source and the installation of the water distribution network were carried out in 2001/2003 to suplpy water to the site and surrounding residents. The water supply worked reasonably well until the beginning of 2014, but after that the water supply was shut down for almost a full year, mainly because no one on site had the expertise to carry out a thorough repair. At the beginning of 2015, the Friends of Ibi Village (AIV) therefore decided to update the entire installation. The new installation worked properly until the pump broke down in 2019. Here, too, the AIV helped to acquire a new one. Unfortunately, the reserve pump is also due for renewal, but there is currently no money for a new one. A primary school in Ibi Village opened its doors in 2003. The field hospital was created in 2009. Apiculture program started in 2013. The beekeepers have organized themselves in different cooperatives, which in turn are integrated in a platform. In exchange for a contribution from the harvest, they can use the transformation room and the services of the 2 experts. This allows everyone, beekeepers large or small, to benefit from support and training to increase their income through the sale of their honey. Carpentry factory opened in 2016. Trains 10 young villagers each year.

Contract #L-QNlTD7

Date
2008-01-01
Expiration date
2038-01-01
Comment on contract
renewable contract