Summary of contract

• Negotiation, representation, and other relevant context

  The Community Forestry Development Committee of River Gee (Community Forestry Development Committee) and Euro Liberia Logging agree to work cooperatively in the implementation of the Forest Management Contract Area “F” awarded to Euro Liberia Logging. The parties strive to engage in a mutually beneficial relationship (Art. 2). No part of the agreement shall entitle Euro Liberia Logging to any share or interest in the project other than the right to use and enjoy the same under the existing applicable regulations (Art. 7). The agreement is negotiated directly between the parties. The purpose of the agreement is to establish a code of conduct regarding rights and responsibilities of the parties, and the financial benefits for all affected communities. Euro Liberia Logging shall identify an employee as its representative to negotiate the agreement and that person must have power to negotiate on the company’s behalf (Art. 3) All members of the affected communities shall freely and fairly elect at least 5 members to integrate the Community Forestry Development Committee. The members of the Community Forestry Development Committee must be members and residents of the communities that they represent. The Community Forestry Development Committee must provide a means for all residents to have their views heard and considered including women and youth (Art. 4).

• Governance, implementation, dispute resolution

  The agreement is required by national forestry regulations (Art. 1). Euro Liberia Logging agrees for the Community Forestry Development Committee of River Gee to verify production. The parties will maintain lines of communication regarding operations and provide periodic updates containing the logs removed to date, as well as any issues in implementing the agreement. The parties and the Forestry Development Authority will hold an annual meeting to discuss the upcoming annual operating plan and to resolve any issues identified from the previous operating season (Art. 6). Euro Liberia Logging shall hold emergency meetings with the Community Forestry Development Committee of River Gee and affected community to discuss any issues affecting the community. These meetings are in addition to quarterly meetings (Art. 3). Prior to the disbursement of funds, the Community Forest Development Committee must be incorporated under the laws of the Republic of Liberia (Art. 4). The parties will seek to solve any controversy between them with the assistance of the National Forestry Authority. In the event that no agreement is reached, the local government officials should be considered as neutral parties in a third-party mediation process. If the controversy is not resolved, it shall be exclusively settled through binding arbitration in accordance with the Commercial Arbitration Rules, with Liberian law as the governing law. The arbitral proceedings will be in English with an interpreter provided for local languages (Art. 9). The agreement will be reviewed by the parties every 5 years (Art. 11).

• Fiscal obligations: content

  Euro Liberia Logging agreed to participate with the amount of US$ 3,000 for each of the 9 months of production time, without exceeding US$ 27,000 per year, in community development programs such as human resource development, the construction of a school and a clinic. The money will be available at the beginning of the operation. Euro Liberia Logging agreed to pay US$ 1.50 per cubic meter, equally shared among the Community Forestry Development Committee of River Gee and Grand Gedeh, apart from the payment of 30% land rental (US$ 2.50 per hectare) to the community benefit sharing scheme. (Art. 3).

• Community development obligations: Local content

  Euro Liberia Logging agreed to give preference for employment to skilled and unskilled employees of the affected communities (Art. 3).

• Community development obligations: Infrastructure and social services

  Euro Liberia Logging agreed to construct schools for the education of employees’ dependents in case the operational area does not have access to school facilities. Euro Liberia Logging agreed to recondition and maintain roads adjacent to the annual operation land and connect nearby towns. Euro Liberia Logging agreed not to construct logged bridges or primary roads (as indicated under technical regulation). Euro Liberia Logging agrees that the community shall use, free of charge, any roads constructed and maintained by Euro Liberia provided that the use does not interfere with either party (Art. 3)

• Community development obligations: Other

  Euro Liberia Logging agreed to make available timber products to the community during community development project as soon as the sawmill will be in operation according to the regulation (Art. 3).

• Environmental and social protection

  Euro Liberia Logging agreed that the timber operations are timed to minimize disruption to subsistence agricultural activities. Euro Liberia Logging agreed to respect the existing cash crops and negotiate with owners in case of any damage to crops. Euro Liberia Logging agreed to provide transportation during emergency situations and major development activity, but the company will not be responsible for any damage that may occur during this service. Euro Liberia Logging agreed not to harvest palm trees for processing, bridge construction and/or export. Euro Liberia Logging agreed to operate minimizing the effects on traditional practices of the community. Euro Liberia Logging agreed to ensure that water collection points are protected and maintained (Art. 3).

• Other noteworthy clauses

  The parties may provide support and assistance to each other in seeking grant and alternative funding opportunities via letters of support and work on grant applications (Art. 6). Any improvements such as facilities and roads developed as a result of the agreement and at the direction of either of the parties shall thereupon become the responsibility of the affected communities and shall be subject to the same regulation and administration as other similar improvements of a similar nature (Art. 7). As part of the code of conduct, the Community Forestry Development Committee agreed to avoid the expansion of subsistence agricultural activities within the contract area and shall promote low land agricultural development. The Community Forestry Development Committee agreed to discourage unnecessary fire disposal and encourage fire safe. The Community Forestry Development Committee will identify and inform Euro Liberia Logging of the existing cash crops (Art. 4).