Contract between The Ministry of Agriculture, Forestry and Fisheries and Global Agricultural Development (Cambodia) Co.,Ltd on Plantation of Teak Tree (Tectona Gradis), and Processing Factory

• Cambodia

• Concessions
• Economic land concessions and plantations
• Land
• Public land lease

• Global Agricultural Development (Cambodia) Co. Ltd.

• Minister of Agriculture Forestry and Fisheries

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• English
• Khmer

• Kratie

Metadata last updated on 2017-03-17. For inquiries contact:

Open Development Cambodia, Email: contact@opendevcam.net, Website: http://www.opendevcam.net Address: 43 St. 208, Phnom Penh, Cambodia

Global Agricultural Development (Cambodia) Co., LTD #1533 National Road 2, Chank Angrai Kroum Quater, Mean Chhay District Phnom Penh Tel: 012 967 222

There an error of company’s name in page 3 of the Khmer contract. The company name is Global Agricultural Development (Cambodia) Co., Ltd, not Asia World Agricultural Development (Cambodia) Co., Ltd.

The Ministry of Agriculture, Forestry and Fisheries

• Providing intervention to the relevant institutions in order to address any problems involving those who commit offense and violate the rights of the company in respect of the implementation framework defined in this agreement as to the usage or confiscation of any part of the location.
• During the implementation of investment project on the company land concession in case, if any land conflict occurred between company and local residents/people, competent authorities have the right to suspend the investment activities for solving the problems and protecting the interest of people and any conflict is occurred between military agency and local residents people the resolution have to give priority to residents people.
• Monitoring: The implementation of the contract of the company, The environmental impact, and Technical work and the business production program of the company.

The Company:

• Agreeing to pay the deposit and fee in accordance with article 4 of this contract until the termination
• Agreeing to be responsible for the expenses of the survey and other related costs involving the coordination and exchange of the said land as stipulated in article 1.4
• Designing the location management and development plan for the Ministry no later than 6 months after the contract has been signed. This management plan shall have a master plan for the strategic development-location usage schedule, other technical practices and a balanced economic-financial plan for long-term development
• Operating business production on the actual business area according to the plan stipulated in its technical-economic reports and in the contract
• Having the right to sell, buy, distribute and circulate all kinds of products both inside and outside the country in accordance with the state’s principles and laws in force and in the interests of the above-mentioned investment
• Machinery equipment, spare parts and chemical materials that are imported for the purpose of business production will incur additional taxes according to the law of kingdom of Cambodia
• Allowing the Ministry and relevant institutions to monitor and evaluate its activities regarding environment impact and subsequently following the instruction of the Ministry and relevant institutions as to the protection of the environment.
• Report the achievement of the implementation of the investment works on six-monthly and annually period.

Must use the local labor force, in the event that there is no Khmer expert available, the right to hire foreign experts shall be granted under the Law of the Kingdom of Cambodia.

• Implementing business activities as planned including: forest clearance, road construction, and cultivation and maintenance by following sustainable conditions for natural resources of the location and environmental impact caused by business production.

• Before clearing the land for the development activities, the investor shall obtain approval from the Ministry of Agriculture, Forestry and Fisheries for the logging, processing or transporting of trees found on the lands and pay royalties and premiums to the Ministry in accordance with the principles and Forestry Law in force.

• All constructions of infrastructure, such as dams and canals that may affect to the people and surrounding areas, shall be permitted by government and/or relevant and concerned institutions.
• Consider in improving the livelihood as well as health and education to its employees; workers and their families by building the suitable houses, hospitals, temples, schools and recreation centers.

• In the event that the company faces a situation beyond its control. The Ministry has the right to withdraw from the whole project or part of the project providing approval for the withdrawal has been received from the Ministry.
• In the event that the company withdraws without approval, it shall be held responsible according to the Investment Law of the Kingdom of Cambodia.
• In the event that the company fails to implement the activities stipulated in this agreement at the passing of one year starting from the date of agreement.

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