Community Forestry Development Committee of Forest Management Contract Area C Rivercess County – Liberia Tree & Trading Company – 2008 – Social Agreement

Basic information

Country

Liberia

Community party

The Community Forest Development Committee (CFDC) of the community of Rivercess County, Area C

Company signatory

Liberia Tree & Trading Company, Inc.

Resource(s)

Timber (Wood)

Project phase covered

Industry

Forestry

National government: signatory?

No

Local government: signatory?

No

Was the agreement required by law?

Yes

Term

Agreement ends after termination of Forest Management Contract (FMC) and is reviewable after 5 years

Date of contract signature

25/10/2008

Language

English

Location

Rivercess County

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 agreement is between Liberia Tree and Trading Corporation (“LTTC”) and the communities of Community Forest Development Committee of Forest Management Contract Area C of Rivercess County (“the communities”). The Forestry Development Authority of Liberia is a witness to the agreement (page 1). The Forest Management Contract Area C was awarded to LTTC. In preparing Forest Management Contract Area C, 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. 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 2). 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 must consist of at least 5 members who are residents of the communities which the CFDC represents (Art. IV(a)). Members of the CFDC 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 (Arts. IV(b) and (c)). The agreement is effective through the duration of the Forest Management Contract and is reviewable every 5 years (Art. XII).

  • Governance, implementation, dispute resolution

    The Liberia Tree and Trading Corporation (“LTTC”) and the communities will maintain lines of communication regarding operations and will provide periodic updates (which should include information as to volume of logs removed to date) to the chairperson (Arts. VII(B) and (C)). LTTC must hold quarterly meetings with the CFDC and the communities to discuss any issues (Art. III, page 4). The parties will hold annual meetings with representatives of the CFDC, the government and LTTC to discuss the upcoming annual operating plan as well as to attempt to resolve any issues identified from the previous operating season (Art. VII(D)). If there is any controversy under the agreement, the CFDC and LTTC will seek to resolve the matter with the assistance of the government (Art. X). 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. X). The governing law is the law of Liberia (Art. X). 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. VII(A)).

  • Fiscal obligations: content

    The Liberia Tree and Trading Corporation (“LTTC”) will pay the CFDC $1.50 per cubic meter/log in addition to the payment of 30% to the community benefit sharing scheme (Art. III, page 4).

  • Community development obligations: Local content

    The Liberia Tree and Trading Corporation (“LTTC”) shall give preference to the employment of unskilled laborers from the communities (Art. III, page 4).

  • Community development obligations: Infrastructure and social services

    The Liberia Tree and Trading Corporation (“LTTC”) agreed to recondition and maintain roads adjacent to the contract area. The community agreed to use, free of charge, any roads constructed or maintained by LTTC as long as such use shall not unduly prejudice or interfere with LTTCs operations (Art. IV, page 5).

  • Community development obligations: Other

    The Liberia Tree and Trading Corporation (“LTTC”) agreed to (a) participate in community development projects on the basis of “kind gesture”, and (b) provide transportation during emergency situations and major development activities (Art. III, page 4). LTTC agreed to make timber products available to the communities during community development projects (Art. III, page 4).

  • Environmental and social protection

    The Liberia Tree and Trading Corporation (“LTTC”) 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 4). LTTC also agreed to ensure that water collection points are protected and maintained (Art. III, page 4). LTTC agreed to time timber operations to minimize disruption to subsistence agricultural activities and to respect existing cash crops (Art. III, page 4). Existing cash crops will be identified by the communities and LTTC informed not to conflict with harvest operations (Art. IV, page 5).

  • Reference to investor-state contract

    The communities were informed of the potential Forest Management Contract (between the government and The Liberia Tree and Trading Corporation (“LTTC”)) and that a social agreement was required by the Liberian law and regulations (page 2). The government will ensure that the operations of LTTC are in compliance with the Forest Management Contract (Art. V(B)).