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Deal #8047 Version #86228

Lao PDR
Created at
2020-06-30
Last update
2022-03-19
Last full update
2022-08-17

Land area

Intended size
35 000 ha
Size under contract (leased or purchased area)
  • [current] 4000 ha
Size in operation (production)
  • [2012] 700 ha
  • [current] 3000 ha
  • 257 ha
Comment on land area
(source: UNDP 2011 P.49; Stora Enso Annual Report 2019; WRM 2014) Stora Enso is a large Finnish and Swedish paper, packaging and forest products company that currently operates a Pilot Eucalyptus plantation of 257 ha in Nong District, Savannakhet province and Ta oi district in Saravane province. The company is planning to establish 35,000 ha of Eucalyptus and Acacia plantations in Nong, Sepone, Ta oi, Vilabuly and Samuoi districts, within Savannakhet and Saravane provinces, Lao PDR. In 2020, Stora Enso has decided to downsize its plantation operations in Laos. Following this decision, Stora Enso will reduce the organization that has been geared for an expansion of the plantation area to an organisation that is focused on managing the existing plantation [Company website, 2020].

Intention of investment

Intention of investment
  • [current] Timber plantation for wood and fiber (4000 ha)
Comment on intention of investment
Agroforestry model. Food and cash crops grown by the farmers in the spaces between the eucalypt trees fully belong to them (UNDP 2011).

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
SEL does not own any land in Laos, instead the company rent the land from the villages on a 50 years contract (source: Edberg 2015)

Negotiation status

Negotiation status
  • [current] Concluded (Contract signed)
Comment on negotiation status
year in which the contract was signed is not known. Pilot phase of the project began in 2005 (source: UNDP 2011).

Implementation status

Implementation status
  • [2005-01-01] Startup phase (no production)
  • [2012, current] In operation (production)
Comment on implementation status
(source: UNDP 2011)

Contract farming

Contract farming
No
Comment on contract farming
Food and cash crops grown by the farmers in the spaces between the eucalypt trees fully belong to them. [UNDP, P55]