Deal #7911

Location #1

Spatial accuracy level
Coordinates
Location
Diama, Sénégal

Latitude
16.30910464186782
Longitude
-16.266477032653025
Facility name
Compagnie agricole de Saint Louis (CASL)
Target country
Senegal

Land area

Intended size (in ha)
3394.0
Size under contract (leased or purchased area, in ha)
[2013-07-04] 1500
Size in operation (production, in ha)
[2020-02, current] 2700
Comment on land area
The 3394 ha is the gross area, without planning, that has been allocated to the CASL. Of these 3394 ha, 2700 ha constitutes the net area under exploitation. Initially, the allocations were made in tranches. On the agreement signed on 07/04/2013, it is the first tranche that was mentioned (the 1500ha). Allocations are evolving and today represent 3394ha. These lands are of the national domain. 3600 ha for contract farming.

Intention of investment

Intention of investment
[current] Food crops (2700 ha)
Comment on intention of investment
The Rice Project of the CASL aims to promote the food security in Senegal by locally producing white rice for exportation and the local market.

Nature of the deal

Nature of the deal
Pure contract farming
Comment on nature of the deal
The land was allocated by commune (the rural authority) to the company. Allocation is the operation of making land available from the national domain, by deliberation of the rural council. In accordance with Article 8 of Law 64-46, "Land in the zone des terroirs is allocated to the members of the rural community who ensure its development...". CASL produces on an area of 6300ha with 2700ha affected and 3600ha under contract farming.

Negotiation status

Negotiation status
[2013-07-04] Concluded (Contract signed)
Comment on negotiation status
During the negotiations, it was agreed with the commune to pay a sum of 10 million (10,000,000) CFA francs annually to help finance the annual investment plan. Payments shall be made before the end of the second quarter of each year. He does not give this sum to the authorities in cash, but they support the population for access to water, construction of health posts, schools...

Implementation status

Implementation status
[current] In operation (production)

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
[current] 3600
Not on leased / purchased farmers (out-grower)
[2017] 67
[current] 160
Comment on contract farming
CASL produces quality rice for all Senegalese. It is firmly convinced that Senegal's self-sufficiency in rice can only be achieved through close cooperation between small producers and large farms. It is with this in mind that the cultivation contracts have been set up.

Contract #1

Contract number
N° 005/CR/D
Contract date
2013-07-04
Comment on contract
There are non expiration date and no duration for the agreement

Number of total jobs created

Jobs created (total)
Yes
Current number of jobs (total)
[current] 400
Current number of employees (total)
[current] 300
Current number of daily/seasonal workers (total)
[current] 100

Operating company

 

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Data source #1

Data source type
Contract
File

Data source #2

Data source type
Other (Please specify in comment field)
File
Comment on data source
Environmental and social impact study

Data source #3

Data source type
Other (Please specify in comment field)
File
Comment on data source
Environmental and social impact study

Data source #4

Data source type
Personal information
Date
2020-02
Includes in-country-verified information
Yes

Recognitions status of community land tenure

Recognition status of community land tenure
Indigenous Peoples traditional or customary rights recognized by government

Consultation of local community

Community consultation
Free, Prior and Informed Consent (FPIC)

How did the community react?

Community reaction
Consent

Presence of land conflicts

Presence of land conflicts
No

Displacement of people

Displacement of people
No

Negative impacts for local communities

Negative impacts for local communities
Other
Comment on negative impacts for local communities
There are no negative impacts because it is the population who have agreed to allocate their land to the CASL.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Cf agreement on source
Received compensation (e.g. for damages or resettlements)
Cf agreement on source

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)
Roads

Materialized benefits for local communities

Materialized benefits for local communities
Health
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)
Roads

Former land owner (not by constitution)

Former land owner
Community
Indigenous people

Former land use

Former land use
Smallholder agriculture
Pastoralism
Forestry

Former land cover

Former land cover
Cropland
Pasture

Detailed crop, animal and mineral information

Crops area
[current] Rice (2700 ha)
Crops yield
[current] Rice (45000 tons)

Detailed contract farming crop and animal information

Contract farming crops
[current] Rice (3600 ha)
Comment on contract farming crops
Today, these contracts, which can be described as "win-win", have attracted more than 160 producers, for a total area of 3,600 ha. This represents about 8,000 tons of paddy rice each season.

Use of produce

Has domestic use
Yes
Has export
Yes
Comment on use of produce
export in Europe and local market

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Paddy rice is produced and processed here in Senegal
Processing facilities / production infrastructure of the project (e.g. oil mill, ethanol distillery, biomass power plant etc.)
Two new dryers, with a drying capacity of 10 t/h, will complement the two existing dryers. Four new 2,500 t silos have been installed, bringing our storage potential to 20,000 t an an optical sorter.
In-country end products of the project
Paddy rice

Source of water extraction

Source of water extraction
Surface water (Lake)
Comment on source of water extraction
Lake Gorom

How much do investors pay for water and the use of water infrastructure?

Comment on how much do investors pay for water

How much water is extracted?

Water extraction amount
40Millions de m3/mois
Use of irrigation infrastructure
Yes
Comment on use of irrigation infrastructure
Drainage, creation of channels

Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)

Application of Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)
No

Principles for Responsible Agricultural Investments (PRAI)

Application of Principles for Responsible Agricultural Investments (PRAI)
No

May 28, 2020, 7:50 a.m.

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May 27, 2020, 11 a.m.

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May 25, 2020, 9:43 a.m.

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