Deal #3891 Version 90060 Version 90876
Size under contract (leased or purchased area)
  • [2014, current] 50000 ha
  • [2010, current] 35642 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 rest for livestock grazing. Source 9 According to the investigation by Senator Wilson Arias, source 17, Riopaila acquired close to 34,000 hectares in the department of Vichada, in the project known as Veracruz, for the planting of oil palm and cereals.
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 rest for livestock grazing. Source 9 According to the investigation by Senator Wilson Arias, source 17, Riopaila acquired close to 34,000 hectares in the department of Vichada, in the project known as Veracruz, for the planting of oil palm and cereals. According to the report of the Comptroller General's Office, 31 thousand hectares were purchased with the artificial companies and promises of sale were signed for another 11 thousand hectares. This report states that the total area acquired through (FULLY DOCUMENTED) by the artificial companies was 35,642 Hectares. See source 1
Intention of investment
  • [2017] Biomass for biofuels (2027 ha)
  • [2017] Food crops (80 ha)
  • [2017, current] Fodder (790 ha)
  • [2014] Timber plantation for wood and fiber (662 ha)
  • [2017] Biomass for biofuels (2027 ha)
  • [2017] Food crops (80 ha)
  • [2017, current] Fodder (790 ha)
  • [2017] Timber plantation for wood and fiber (644 ha)
Comment on nature of the deal
On the paper, Riopaila Castilla is leasing the lands they are using. Nevertheless, it seems that they 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 likewise were acquired by a company registered in Luxembourg. Riopaila Castilla owns 100% of this last one. See Source 12 an 17 Source 4
On the paper, Riopaila Castilla is leasing the lands they are using. Nevertheless, it seems that they 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 likewise were acquired by a company registered in Luxembourg. Riopaila Castilla owns 100% of this last one. See Source 1, 12 and 17 Source 4
Purchase price
40β€―000β€―000β€―000
920β€―000β€―000
Purchase price area
50β€―000 ha
35β€―642 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. According to the investigation of Senator Wilson Arias, source 17, Riopaila invested 39 billion pesos in the Veracruz Project (approximately 34 thousand hectares).
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. According to the investigation of Senator Wilson Arias, source 17, Riopaila invested 39 billion pesos in the Veracruz Project (approximately 34 thousand hectares). According to the report of the Office of the Comptroller General of the Nation, each property cost an average of 920 million Colombian pesos (43 properties, for which $39,582.6 million Colombian pesos were paid). 39,582.6 million). See source 1
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. According to the investigation of Senator Wilson Arias, source 17, Riopaila invested 39 billion pesos in the Veracruz Project (approximately 34 thousand hectares).
Comment on investment chain
Riopaila constituted 29 companies in Colombia to acquire 50000 hectares of land approximately, with the advice of the law firm Brigard & Urrutia. Simultaneously, Riopaila created companies in Spain and Luxembourg that own this initial 27 companies in Colombia. Finally, Riopaila owns the company in Luxembourg known as Asturias Holding Sarl. The companies at the lowest level are "leasing" the land to Riopaila in a contract for 30 years.
Riopaila constituted 29 companies in Colombia to acquire 42000 hectares of land approximately, with the advice of the law firm Brigard & Urrutia. Simultaneously, Riopaila created companies in Spain and Luxembourg that own this initial 27 companies in Colombia. Finally, Riopaila owns the company in Luxembourg known as Asturias Holding Sarl. The companies at the lowest level are "leasing" the land to Riopaila in a contract for 30 years. See source 1
Comment on water extraction envisaged
According to source 1 "Water is used for domestic supply from wells located near the farm houses. near the farm dwellings. There is also unaccounted-for water consumption for supplying the project's livestock (5,500 head). the project (5,500 head)." p. 55

Location #Y8oaQQFA

areas
unknown field: location.areas
unknown field: location.areas

Data source #p650hSHZ

File
Type
Media report
Government sources
Url
Publication title
AcumulaciΓ³n irregular de predios baldios en la Altillanura colombiana
Date
2013-06-18
2014
Organisation
ContralorΓ­a General de la NaciΓ³n
Includes in-country-verified information
Yes

Data source #-c-u33Ki

Url
Publication title
Los β€œauto prΓ©stamos” de Riopaila
Organisation
El confidencial

Data source #5flUfSuv

Url
Publication title
ContralorΓ­a indagarΓ‘ en caso de compra de lotes baldΓ­os por parte de Riopaila en Vichada
Organisation
La W Radio

Data source #vI0x1yWE

Url
Publication title
Riopaila: la verdadera historia
Date
2013-11-28
Organisation
Revista Semana

Data source #IMMCmNlq

Url
Publication title
Informe de sostenibilidad y gestiΓ³n 2014
Date
2014
Organisation
Riopaila Castilla

Data source #-bZ3_ac2

Url
Organisation
Centro de Estudios de la Orinoquia – CEO – Universidad de los Andes, Riopaila Castilla S.A.