Summary of contract

• Negotiation, representation, and other relevant context

  Agreement between the Chiefdom Council of Bureh Kasseh Maconteh Chiefdom (BKM) as the Lessors, and Sierra Leone Agriculture Limited as the Lessee. BKM is represented by the paramount chief, the speakers, the sections chiefs and men of note of BKM (Preamble). Through the agreement, the Chiefdom Council demise for 50 years, parcels of land totaling 41,582 hectares in Port Loko, as described in a separate schedule (Art. 1, Schedule). Sierra Leone Agriculture will develop the demised land as it shall deem fit for agriculture, agro-industry and other related purposes (Art. 2). The Chiefdom Council confirm that they are legally entitled to enter into this agreement and will procure all consents necessary to enable the Lessee to carry out its operations on the demised land. 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 Bureh Kasseh Maconteh Chiefdom consented in open assembly in the customary manner to this lease agreement and gave their consent to the occupation by Sierra Leone Agriculture of the demised land (Signatures page). Sierra Leone Agriculture agrees to pay the solicitor’s fees and all costs incurred by the Chiefdom Council related to the preparation of this agreement (Art. 2).

• Governance, implementation, dispute resolution

  Sierra Leone Agriculture will permit the Chiefdom Council to inspect the demised land once a year. Sierra Leone Agriculture cannot assign or sublet the demised land without the prior consent of the Chiefdom Council and written approval of the Provincial Secretary provided that such consent shall not be unreasonably withheld (Art. 2). If Sierra Leone Agriculture is in arrears for 21 days or more, the Chiefdom Council may re-enter the demised land provided that Sierra Leone 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

  Sierra Leone Agriculture will pay in advance annual rent of $2 per hectare for the first 7 years of the agreement, provided that the rent for the remaining period will be reviewed every 7 years (Art. 1). Sierra Leone 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. This royalty will be deposited into a communal account managed This royalty will be deposited into a communal account managed (unless otherwise agreed) by the paramount chief, a member of parliament, local district councillors within the Chiefdom and 3 other chiefdom councillors; Sierra Leone Agriculture shall appoint 2 representatives to the management body of the community fund (Art. 2).

• Community development obligations: Local content

  Sierra Leone Agriculture will use its reasonable endeavors to: employ local persons in preference to an expatriate applying for the same vacancy, provided that the local person holds the required qualifications. Sierra Leone 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

  Sierra Leone Agriculture will reasonably assist in providing and supporting primary and secondary school education for the direct dependents of its employees; and will use its best endeavor in providing health care, housing, sanitation and drinking water for the benefit of its employees and their direct dependents. (Art 2).

• Environmental and social protection

  Where small settlements must be moved for the project, Sierra Leone Agriculture will consult with the Chiefdom Council and use reasonable endeavors to re-house any displaced people in appropriate housing within the locality. Sierra Leone Agriculture will, in consultation with the local authority, identify and demarcate traditional reserves and/or sacred grounds. Sierra Leone Agriculture will use all reasonable endeavors to ensure that the project is run in an environmentally friendly manner (Art 2).