Please note: you are viewing an old version of this deal. The current version can be found here: Deal #3891

Deal #3891 Version #64506

Colombia
Created at
2013-07-05
Last update
2019-03-19
Last full update
2023-08-22

Land area

Size under contract (leased or purchased area)
  • [2014, current] 50000.0 ha
Size in operation (production)
  • [2014, current] 38096.0 ha
Comment on land area
The number of area under operation might not be completely accurate. It is certain that they have 2027 hectares with oil palm, 644 hectares with Acacia Mangium 200 hectares for grassland (Bachiaria) and the resto for livestock. Source 9

Intention of investment

Intention of investment
  • [2017] Biomass for biofuels (2027.0 ha)
  • [2017] Food crops (80.0 ha)
  • [2017, current] Fodder (790.0 ha)
  • [2014] Timber plantation for wood and fiber (662.0 ha)
Comment on intention of investment
See Source 9 and 12

Nature of the deal

Nature of the deal
Outright purchase
Comment on nature of the deal
On the paper, Riopaila Castilla is leasing the lands they are using. Nevertheless, it seems that the created artificial companies that bought the land so that law 160 of 1994 is not violated. The companies were acquired by some spanish companies, which as the same way were acquired by a company registered in Luxembourg. Riopaila Castilla owns 100% of the last one. See Source 12 Source 4

Negotiation status

Negotiation status
  • [2011, current] Concluded (Contract signed)

Implementation status

Implementation status
  • [2012, current] In operation (production)

Purchase price

Purchase price
40 000 000 000
$
for specified area
Purchase price area
50 000 ha
Comment on purchase price
This number might not be accurate. The initial investment (possibly to acquire the land) was COP 40000 Million. In the financial reports they show a leasing fee, which will be in the immediately next section.

Leasing fees

Annual leasing fee
2 481 000 000
$
for specified area
Annual leasing fee area
50 000 ha
Comment on leasing fee
In the financial report is signaled that Riopaila Castilla is paying this amount to the 29 companies it created under a company in Luxembourg for renting in the land. See source 12.

Contract farming

Contract farming
No