Summary of contract

• Negotiation, representation, and other relevant context

  The agreement between Euro Liberia Logging Company (“Euro Liberia Logging”) and the communities of River Gee, Community Forest Development Committee for Forest Management Contract Area F (“the communities”). The Forestry Development Authority of Liberia is a witness to the agreement (page 2). The Forest Management Contract Area F was awarded to Euro Liberia Logging. In preparing Forest Management Contract Area F, notice was given and surveys conducted in a portion of the communities to validate whether the area was suitable for commercial forest practices based on ecological, economic and social considerations. As part of this survey, the communities were informed of the potential Forest Management Contract and that a social agreement was required by the Liberian law and regulations. The government secured a statement on behalf of the communities that they would negotiate a social agreement in good faith with the winner of the competitive bid (page 5). Community members shall elect their representatives to the Community Forestry Development Committee (“CFDC”) which is responsible for representing the communities and negotiating the agreement on their behalf (Art. IV). The CFDC consists of at least 5 members who must be residents of the community which they represent (Art. IV). Members must be freely and fairly elected and provide a means for all residents that it represents including women and youths to have their views heard and considered (Art. IV). The agreement is effective through the duration of the Forest Management Contract and reviewed every 5 years after which time it will expire (Art. XI).

• Governance, implementation, dispute resolution

  Euro Liberia Logging and the communities will maintain lines of communication regarding operations and will provide periodic updates regarding any issues in implementing the agreement (which should include information as to volume of logs removed to date) to the chairperson (Arts. VI(C)). In addition to quarterly meetings, Euro Liberia Logging must hold emergency meetings with the CFDC and the communities to discuss any issues when the need arises (Art. III, page 7). The parties will hold annual meetings with representatives of the CFDC, the government and Euro Liberia Logging to discuss the upcoming annual operating plan as well as to attempt to resolve any issues identified from the previous operating season (Art. VI(D)). If there is any controversy under the agreement, the parties will seek to initial resolve their differences with the assistance of the government (Art. IX, page 10). If there are still differences, local government officials (District Commissioner, Paramount Chiefs, Clan Chief, and Town Chief) will be neutral parties in a third-party mediation process, provided that their neutrality is proven. If not resolved by these steps, any claim relating to the agreement shall be exclusively settled by binding arbitration in accordance with the Commercial Arbitration Rules (Art. IX, page 10). The governing law is the law of Liberia (Art. IX, page 10). The parties may modify the agreement by mutual agreement and the government needs to attest to its completeness prior to any modifications going into effect (Art. VI(B)). The agreement shall be binding on the parties, their heirs, administrators, assigns and successors-in-office as though they were physically present when the agreement was signed (Art. XI).

• Fiscal obligations: content

  Euro Liberia Logging agreed to participate in community development programs (e.g. human resource development, construction of schools etc) with the amount of US$ 3,000 for each of the 9 months of production time, not to exceed US$ 27,000 annually, to be available at the start of felling operations (Art. III, page 7). Euro Liberia Logging will pay US$ 1.50 per cubic meter shared between the CFDC 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. III, page 7).

• Community development obligations: Local content

  Euro Liberia Logging agrees to provide first preference for skilled and unskilled employment for the communities of River Gee and Grand Gedeh County (Art. III, page 7).

• Community development obligations: Infrastructure and social services

  Euro Liberia Logging agreed to build company camps near existing towns or affected areas and to construct schools for the education of employees’ dependents in case the operational area does not have access to school facilities (Art. III, page 7). Euro Liberia Logging agreed to recondition and maintain roads adjacent to the annual operational area and connected nearby towns and to not construct logged bridges or primary roads (Art. III, page 7). Euro Liberia Logging agrees that the community shall use, free of charge, any roads constructed and maintained by Euro Liberia Logging provided such use shall not prejudice or interfere with either party (Art. III, page 7).

• Community development obligations: Other

  Euro Liberia Logging agreed to provide transportation during emergency situations and major development activities but that Euro Liberia Logging would not be responsible for any damage, injury, and any subsequent events that may occur during this service (Art. III, page 7). Euro Liberia Logging agreed to make timber products available to the communities during community development projects as soon as the sawmill is in operation (Art. III, page 7).

• Environmental and social protection

  Euro Liberia Logging agreed to design its logging operations to minimize effects on traditional practices such as taboo day, sacred sites, and the range of taboo animals/plants, medicinal plant sites, hunting ground, and non-timber forest products sites (Art. III, page 6). Euro Liberia Logging also agreed to ensure water collection points are protected and maintained (Art. III, page 6). Euro Liberia Logging agreed that timber operations are timed to minimize disruption to subsistence agricultural activities and to respect existing cash crops and to negotiate with owners in the case of any crop damage (Art. III, page 6). Euro Liberia Logging agreed not to harvest palm trees for processing, bridge construction or export (Art. III, page 7). Existing cash crops will be identified by the communities and Euro Liberia Logging informed not to conflict with harvest operations (Art. IV, page 8).

• Reference to investor-state contract

  The government will ensure that the operations of Euro Liberia Logging are in compliance with the Forest Management Contract (Art. V). The communities were informed of the potential Forest Management Contract (between the government and Euro Liberia Logging) and that a social agreement was required by the Liberian law and regulations (page 5).

• Other noteworthy clauses

  The communities agreed to avoid the expansion of subsistence agriculture activities within the contract area, to promote and encourage low land agriculture development, and to discourage unnecessary fire disposal and encourage safe fire practices especially in the contract area (Art. IV, page 8).