Indigenes of Nguti Sub Division – SG Sustainable Oils Cameroon Ltd – MOU

Basic information

Country

Cameroon

Community party

Nguti Municipality

Company signatory

SG Sustainable Oils Cameroon Ltd

Resource(s)

Oil Palm or Palm Oils

Project phase covered

Industry

Agriculture

National government: signatory?

No

Local government: signatory?

Yes

Was the agreement required by law?

No

Term

Not Specified

Date of contract signature

27/07/2010

Language

English

Location

Nguti Subdivision

Source: URL

Reports

OpenCorporates ID

Listings in other databases

Listing of the parent contract at ResourceContracts.org or OpenLandContracts.org

Summary of contract

  • Negotiation, representation, and other relevant context

    The community inhabitants of the Nguti Municipality accept the investments by SG Sustainable Oils Cameroon Ltd (SGSOC) and in return, SGSOC shall implement the policies, programs and benefits described in this memorandum of understanding (p.1, p.3). The parties undertake to prepare a formal agreement that reflects the commitments contained in this agreement. (p.3)

  • Governance, implementation, dispute resolution

    The local communities, SG Sustainable Oils Cameroon Ltd (SGSOC) and the administration will jointly demarcate the land to leave out a buffer zone between SGSOC's plantation and the farmlands, forest and protected areas (p.1).

  • Fiscal obligations: content

    SG Sustainable Oils Cameroon Ltd (SGSOC) will pay land rental fees to the local government treasury or as instructed by the government. (p.2). If existing farmland is impacted by the project, SGSOC will provide compensation for the loss of assets (p. 1).

  • Community development obligations: Local content

    SG Sustainable Oils Cameroon Ltd (SGSOC) will provide technical assistance training on best practices for increased oil palm yields, efficiency, environmental protection, and safety to local farmers (p.2). SGSOC will create long-term sustainable employment, and employ several thousand full time permanent employees once fully operational with priority to the indigenes of Nguti sub division (p.2).

  • Community development obligations: Infrastructure and social services

    SG Sustainable Oils Cameroon Ltd (SGSOC) will contribute to the improvement of local schools, and will provide university scholarships related to agro-industry and other areas for indigenes of Nguti sub division starting the first year of operations (p. 2). SGSOC will provide medical clinics to employees and make these clinics available to the local communities (p. 2). SGSOC will provide modern wells and potable pipe-borne drinking water to the communities (p. 2). SGSOC will produce electricity and where practicable will make the surplus available to the community at low cost (p. 2). SGSOC will invest in farm roads to link local regions with the main project (p. 2).

  • Community development obligations: Other

    SG Sustainable Oils Cameroon Ltd (SGSOC) will leave out land for local outgrower schemes for the cultivation of oil palm, and SGSOC will purchase the resulting fruit bunches (p. 1). Revenues from the sale of oil products owned by SGSOC’s partner non-profit organization will provide funding to local charitable organizations to provide social goods and services to the communities (p. 3).

  • Environmental and social protection

    SG Sustainable Oils Cameroon Ltd (SGSOC) will conduct a social and environmental impact assessment (SEIA) in 21 villages affected by the project to identify potential social and environmental impacts of the project, and to identify potential benefits to the communities and opportunities for local development. The SEIA will engage the communities for input, and feedback (p. 1.) SGSOC will adhere to local and international guidelines to ensure all planting and production is done in an environmentally friendly and sustainable manner (p. 2). SGSOC will avoid damaging or including any of the existing farmland within the concession area and consider alternative project design to minimize physical or economic displacement (p. 1). If existing farmland is impacted by the project, SGSOC will provide compensation for the loss of assets and SGSOC will offer equal or better livelihood in cases where resettlement occurs, in accordance with international standards and guidelines (p. 1).

  • Transparency or confidentiality

    A clause on p. 2 of the agreement has been redacted.