Deal #4496

Location #1

Spatial accuracy level
Administrative region
Location
Bas Congo, Democratic Republic of the Congo

Target country
Congo, Dem. Rep.
Comment on location
The concession is located within 2 forest reserves- Muba and Kiemi.

Land area

Intended size (in ha)
10000
Size under contract (leased or purchased area, in ha)
[2009] 10000
Comment on land area
The contract states 5000 hectares in Muba and 5000 hectares in Kiemi reserve, however Kiemi reserve is only 2150 hectares.

Intention of investment

Intention of the investment
Agriculture unspecified

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2009] Concluded (Contract signed)

Implementation status

Implementation status
[2014] Project not started

Leasing fees

Annual leasing fee
100
Annual leasing fee currency
Congolese Franc
Annual leasing fee type
per ha
Comment on leasing fees
To cover the costs of demarcation of the concession

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Comment on contract farming
The project, in collaboration with Dutch NGO SNV, to buy oil palm from planters in the Mayombe region is under consultation. The project could include training in the management of oil palm in order to increase the quality.

Contract #1

Duration of the agreement (in years)
40

Operating company

Comment on investment chain
MIGA has issued a guarantee of $4.32 million to African Company for Oil Derivatives; Freiha Feed Company; Ralph Freiha; and Yousef Freiha and Sons, covering their equity investment in Congo Oil and Derivatives SARL in the Democratic Republic of Congo. Groupe Socimex is involved in the project, however it is not clear how they are involved.

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Comment on data source
Conflict or consent? The oil palm sector at a crossroads, Democratic Republic of Congo: Congo Oil and Derivatives SARL (Chapter 16), Stéphanie Vig with Jean-Marie Muanda

Data source #2

Data source type
Research Paper / Policy Report
File
Comment on data source
MIGA- project Brief

Data source #3

Data source type
Research Paper / Policy Report
File
Comment on data source
Forest Trends Report Series- Consumer Goods and Deforestation: An Analysis of the Extent and Nature of Illegality in Forest Conversion for Agriculture and Timber Plantations, September 2014, pg 99

Data source #4

Data source type
Company sources
File
Comment on data source
Freiha Feed Company website

Data source #5

Data source type
Media report
File
Date
2015-11-09
Comment on data source
Ecosystem marketplace- Democratic Republic Of Congo Taps Carbon Finance To Save Forests

Data source #6

Data source type
Company sources
File
Comment on data source
Groupe Socimex

Consultation of local community

Community consultation
Not consulted
Comment on consultation of local community
The technical Director was not aware that there were communities in the concession area.

How did the community react?

Community reaction
Mixed reaction
Comment on community reaction
Some community members hoped that the development of the land would improve the roads to the markets, where the community sells their goods.

Displacement of people

Comment on displacement of people
The reserves are customary lands accessed by many local communities for their subsistence activities. The reserves contain the only sources of water to which several communities have access.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
None of the contracts mention the communities and their rights to access the reserve. No social impact assessment has been carried out.

Former land owner (not by constitution)

Former land owner
State
Comment on former land owner
The communities sold the land to the Belgian Colonial administration to create the Muba reserve. A number of community members feel that this surrender of the land is not valid, as it was forced upon them and the approving body did not have the rights to do so. Local communities have customary access to the reserves, however in some cases the community enters the reserve illegally.

Former land use

Former land use
Conservation
Comment on former land use
Muba and Kiemi Forest Reserves with high biodiversity value, it appears as if an environmental impact assessment was not undertaken.

Former land cover

Former land cover
Forest land

Detailed crop, animal and mineral information

Crops area
Oil Palm, Soya Beans

Use of produce

Has domestic use
Yes
Has export
Yes
Country 1
Angola

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Establishment and operation of a vegetable oil refinery in the port city of Boma. Capacity of 140 tonnes of oil per day.

Water extraction envisaged

Water extraction envisaged
Yes

Overall comment

Overall comment
Groupe Socimex is involved in the project, however it is not clear how they are involved.

March 1, 2017, 3:34 p.m.

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Nov. 15, 2016, 11:25 a.m.

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Oct. 14, 2014, 1:22 p.m.

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