Deal #6482 Version 75773 Version 87837
Size under contract (leased or purchased area)
  • [current] 50000.0 ha
  • [current] 50000 ha
Size in operation (production)
  • [2013-09-01] 18000.0 ha
  • [2014-03-01, current] 22231.0 ha
  • [2013-09-01] 18000 ha
  • [2014-03-01, current] 22231 ha
Comment on land area
Concession area of 50,000 hectares and approximately 22,231 hectares planted in Bolikhamxai and Khammouane as of 2014. Possibly expanding into Xieng Khouang.
Concession area of 50,000 hectares and approximately 22,231 hectares planted in Bolikhamxai and Khammouane as of 2014. Possibly expanding into Xieng Khouang. In August 2013, 22,308 hectares of the companyโ€™s operations were certified by FSC, a global forest certification scheme. Source: Mekong Watch
Comment on implementation status
Oji Paper started the plantation project in Southern Laos earlier 2010, covering a total of 30,000 hectares. The feasibility study which started from November 2010 until March 2011 looked into potential REDD funding for Oji Paperโ€™s plantations in central and southern Laos. The study was commissioned by Japanโ€™s Ministry of Economy, Trade and Industry. Ojiโ€™s concession area in central Laos covers a total area of 154,000 hectares, of which a total of 50,000 hectares were to be planted. Source: REDD On 26 May 2015, it was announced that FSC certification 1 of a tree plantation project implemented by Oji LPFL in Laos with investment from Oji Paper, which had been attained in 2013, has been terminated. The FSC certification is thought to have expired because the company was unable to respond to the corrective action requests imposed as a result of its 2014 annual audit. Source: Mekong Watch
Comment on contract farming
contract farming model 2+3 Source: Lao PDR Forest Plantation Policy Background Paper
Comment on investment chain
Oji Lao Plantation Forest Ltd. (Oji LPFL) is a joint venture plantation project between the Government of Laos and Lao Plantations Holdings Ltd, of which Oji Paper holds a majority share. Source: OJi Holdings
Comment on consultation of local community
Oji Lao Plantation Forest Ltd (LPFL) violated the communityโ€™s rights to Free Prior and Informed Consent (FPIC) in Bolikhamxay and Khammouane Provinces, in Central Lao PDR. Oji LPFL and government officials were accused of using coercion to gain control of customary lands (Hunt, 2014).
Oji Lao Plantation Forest Ltd (LPFL) violated the communityโ€™s rights to Free Prior and Informed Consent (FPIC) in Bolikhamxay and Khammouane Provinces, in Central Lao PDR. Oji LPFL and government officials were accused of using coercion to gain control of customary lands (Hunt, 2014). Oji LPFLโ€™s FSC certification was terminated in 2015 for inadequate consultation with local communities. Source: Forest and Finance
Community reaction
Rejection
Comment on community reaction
Oji Paper cleared large areas of forest in areas close to the ADB-funded Theun Hinboun dam, between Route 13 and the Hinboun River. โ€œIt is a real disaster there,โ€ comments by observer. โ€œMany people, who have already suffered from catching less fish in the Hinboun River from the dam problem, are now getting the double problem with plantations.โ€ Source: WRM
Overall comment
On 26 May 2015, the FSC certification of a tree plantation project of Oji LPFL (Oji Lao Plantation Forest Company Ltd.) in Laos with investment from Oji Paper was terminated. Below are the reasons of the termination: The audit team could not establish that local communities with customary tenure and use rights had agreed to land lease with LPFL or Oji LPFL, for areas initially agreed with the company, under free and informed consent. LPFL did not conduct sufficient consultation to determine whether there are indigenous people in the villages where its land lease agreement for the plantation business was signed. The auditor could not confirm if the contractor had received training in safe working practice. Forestry operation did not comply with ILO (International Labor Organization) Code of Practice on Safety and Health in Forestry. Appropriate personal protective equipment was not available on site Source: Mekong Watch

Contract #y-xZlb9k

Date
2005
Comment on contract
Forest Stewardship Certification (FSC) was granted to OLPFL in 2013 August but Concession Agreement has been signed well before the FSC.
Forest Stewardship Certification (FSC) was granted to OLPFL in 2013 August but Concession Agreement has been signed well before the FSC. The project started on February 28, 2005, after the business was assigned to the company. Source: JFS