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Deal #6346 Version #75575

Lao PDR
Created at
2014-03-26
Last update
2021-11-10
Last full update
2022-09-16

Consultation of local community

Community consultation
Not consulted
Comment on consultation of local community
No appropriate social or environmental impact assessments were done, nor was there census undertaken to identify affected people. Before land clearing there was no proper land survey and villagers were not properly consulted. Part of the land clearing took place nighttime. Villagers from the Xekatam estate (6 villages) understand that agreement signed by provincial governor with Outspan was for 150 ha land concession, and this is the area they agreed to in 2010, but not more. Area of land cleared is much more (831 ha in Xekatam). All land clearing was done during 2010, whereas the Concession Agreement was not signed before Dec 2011. Everything was agreed between the company and the government with no meaningful community engagement.

How did the community react?

Community reaction
Rejection
Comment on community reaction
The relation between the company and communities is extremely bad due to the way the concession has been implemented. Company is open to offer employment and contract farming opportunities but villagers do not trust the company and currently don't want to interact with it.

Displacement of people

Comment on displacement of people
288 households affected over 7 villages

Negative impacts for local communities

Negative impacts for local communities
Environmental degradation, Socio-economic, Cultural loss, Other
Comment on negative impacts for local communities
Villagers’ crops were partly damaged or destroyed during land clearance, including coffee, rice and bamboo. Food security and food sovereignty of villagers has significantly decreased (company provided them with emergency food aid in April 2012. During land clearing sacred forest areas were destroyed. Biodiversity has decreased, risk of soil/water contamination by use of chemicals.

Promised or received compensation

Received compensation (e.g. for damages or resettlements)
So far, the company have distributed 15 tones of rice to compensate villagers in four villages - Nongmek, Nonghin, Nongtheum, Nongtouang for losing their lands and crops. Three villages of Yaisalasinh, Yaisenoi and Houaykong have not received compensation.

Promised benefits for local communities

Comment on promised benefits for local communities
The relation between the company and communities is extremely bad due to the way the concession has been implemented. Company is open to offer employment and contract farming opportunities but villagers do not trust the company and currently don't want to interact with it.