Maforki Chiefdom – West African Agriculture Ltd – 2011 – Lease Agreement

Basic information

Country

Sierra Leone

Community party

Chiefdom Council of Maforki Chiefdom

Company signatory

West Africa Agriculture Limited

Resource(s)

Agricultural Products

Project phase covered

Industry

Agriculture

National government: signatory?

No

Local government: signatory?

Yes

Was the agreement required by law?

Yes

Term

50 Years

Date of contract signature

18/11/2011

Language

English

Location

Maforki Chiefdom

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

    Agreement between the Chiefdom Council of Maforki Chiefdom as the Lessors and West African Agriculture Limited as the Lessee. The Chiefdom Council of Maforki Chiefdom is represented by the regent chief, the speaker, the regent chief of Malal Section, the regent chief of Magbeni Section, the regent chief of Gberay Morri Section, the regent chief of Thawuya Section, Palimamy Sorie Bangura,and Lamina Kamara all of Maforki Chiefdom Port Loko District (Preamble). The Chiefdom Council of Maforki Chiefdom confirms that they are legally entitled to enter into this agreement (Art. 3 ii). Through the agreement, the Chiefdom Council of Maforki Chiefdom demise for 50 years, parcels of land totaling 32441.4 hectares in Port Loko (Art. 1). The agreement is renewable for 21 years, with a further option to renew it for another 21 years, and 7 years respectively, provided that the rent for these periods shall be negotiated and agreed subject to standard commercial terms (Art. 3). The Chiefdom Council of Maforki Chiefdom consented in open assembly in the customary manner to this lease agreement and gave their consent to the occupation by West African Agriculture of the demised land (Signatures page).

  • Governance, implementation, dispute resolution

    West African Agriculture will permit the Chiefdom Council of Maforki Chiefdom, to inspect the demised land once per year. This agreement cannot be assigned without the prior consent of the Chiefdom Council of Maforki Chiefdom and written approval of the Provincial Secretary provided that such consent shall not be unreasonably withheld (Art. 2). If West African Agriculture is in arrears for 21 days or more, the Chiefdom Council of Maforki Chiefdom may re-enter the demised land provided that West African Agriculture has had a reasonable period to remedy or rectify the breach. Any dispute in connection with this agreement may be referred to arbitration, which is subject to the Arbitration Act of Sierra Leone (Art. 4).

  • Fiscal obligations: content

    West African Agriculture will pay in advance annual rent for the first 7 years of the agreement equal to US$ 2.50 per hectare per year, provided that the rent for the remaining period will be reviewed every seven years (Art. 1). West African Agriculture will pay into a community development fund for the benefit of the local community at the end of every year, a royalty of 5% of its net profit provided that the annual rent payable shall not at any time exceed 5% of West Africa Agriculture’s net profit. This royalty will be deposited into a communal account managed (unless otherwise agreed) by the regent chief, members of parliament, local district councillors within the Chiefdom and 3 other chiefdom councillors; West African Agriculture shall appoint 2 representatives to the management body of the community fund (Art. 2).

  • Community development obligations: Local content

    West African Agriculture will use all reasonable endeavors to employ local personnel in preference to expatriates applying for the same vacancy provided that any such local person holds the required qualifications, experience, and know how. West African Agriculture will have the sole discretion to appoint such persons it deems necessary to carry out its projects (Art. 2).

  • Community development obligations: Infrastructure and social services

    West African Agriculture will use reasonably assist in providing and supporting the primary and secondary education of the direct dependents of its employees in the manner it deems fit. West African Agriculture will use its best endeavours to provide health care, housing, sanitation and water to its employees and their direct dependents (Art. 2).

  • Environmental and social protection

    If it is necessary to move small settlements for the project, West African Agriculture will consult with the Chiefdom Council of Maforki Chiefdom and will assist in re-housing any displaced family in appropriate facilities within the locality. West African Agriculture will,in consultation with the Lessors identify and demarcate traditional reserves and sacred grounds. West African Agriculture will use reasonable endeavours to ensure that the project is run in an environmentally friendly manner (Art. 2).