Deal #3907

Lao PDR
Created at
2013-07-18
Last update
2022-03-15
Last full update
2022-03-15

Names of communities / indigenous peoples affected

Name of community
Nong Tuang village, Nong Mek village, Souksavan village, Nong Teuam village, Nong Hin village, Laxaxin village
Name of indigenous people
Nya Heun ethnic group, Lao Loum
Comment on communities / indigenous peoples affected
Those villages are located in Paksong district, Champasak

Consultation of local community

Community consultation
Not consulted
Comment on consultation of local community
No consultation, they do not want compensation, they want their lands back. In the beginning of the project, more lands than those identified by the ESIA were in use, and many in the community beyond the village leadership were not aware that the land had been leased, as they had not been consulted nor informed during preparation of the ESIA (that was conducted in 2010) [MRLG, 2016].

How did the community react?

Community reaction
Rejection
Comment on community reaction
Village authorities did not agree with the project Villagers reported that they had not seen any documentation for the lease of the concession area.

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
In April 2014 Olam released a statement claiming that all land conflicts with 132 families had been resolved,including returning 281 ha to villagers (Olam, 2014), but it appears that problems remain.

Displacement of people

Comment on displacement of people
52 families

Negative impacts for local communities

Negative impacts for local communities
Socio-economic, Displacement

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
promised: education, infrastructure, income opprtunities; received: nothing Company returned some of the private lands and paid the compensation to villagers. Villagers shared they generally satisfied with the resolution of the dispute. However, tensions within the villages appear to remain, and four families refused to participate in the government-led compensation process due to its perceived inadequacy [MRLG, 2016]. From Ian G. Baird's study, it mentions that it cost Outspan US$3-4 million to return the productive coffee land to villagers, and also to provide compensation for some of the land not returned.

Promised benefits for local communities

Promised benefits for local communities
Education, Productive infrastructure (e.g. irrigation, tractors, machinery...), Financial support
Comment on promised benefits for local communities
OBL’s efforts to improve investor-community relationships includes, returning some contested lands, revising the company’s land acquisition processes, and implementing the ‘Enhancing Sustainability of Coffee-based Agriculture’ (ESCA) project

Materialized benefits for local communities

Materialized benefits for local communities
Financial support
Comment on materialized benefits for local communities
OBL provided donations to communities in the past 5 years of 570,000,000 kip (around $70,000USD). This includes around $12,000USD for infrastructure in 4 villages near the Xekatam Estate in the last financial year (in the time of the MRLG in 2016). OBL spent around 600 persondays on development and implementation related to their ‘Outgrower’ program last financial year [in 2015]. Company also hired labourers from the village and provided eleven wells.

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

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)
At the end of 2013, at the end of a grievance process (with assistance from NGOs and the LIWG), the communities received back use rights over some family agricultural lands (as mapped by the District-Provincial conflict solution committee), comprising of 230 hectares, as well as compensation for cleared crops [MRLG, 2016].