Summary of contract

• Negotiation, representation, and other relevant context

  The agreement is between Euro Liberia Logging Company and the communities of Komobo District, Grand Gedeh County 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 Company. 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 (page 4). 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 4). Community members shall elect their representatives to the Community Forestry Development Committee (“CFDC”) which is responsible for representing the communities and negotiating the agreement (Art. IV). The CFDC must consist of at least 5 members who are residents of the community which they represent (Art. IV(a)). Members must be freely and fairly elected and provide a means for all residents that it represents including women, youths and elders, to have their views heard and considered (Arts. IV(b), IV(c)). The CFDC must hold monthly meetings with the community members for briefing, updates and grievances (Art. IV(h)). The agreement is effective for 5 years and is the renegotiation of an agreement which ended in 2015 (Art. XII).

• Governance, implementation, dispute resolution

  Euro Liberia Logging Company 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 (Art. VI(C)). Euro Liberia Logging agrees to convene quarterly meetings with the Community Forestry Development Committee (“CFDC”) and as well as to hold emergency meetings with the CFDC and the communities to discuss any issues when the need arises (Art. III, page 6). 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 initially seek to resolve the matter among a group of 2 members of CFDC, 2 members of Euro Liberia Logging, and one person that both parties agreed on. (Art. IX, page 9). 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 9). The governing law is the law of Liberia (Art. IX, page 9). 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. XII). 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)).

• Fiscal obligations: content

  Euro Liberia Logging will pay US$ 1.50 per cubic meter to the Community Forestry Development Committee (“CFDC”) apart from the payment of 30% land rental (US$ 2.50 per acre) to the community benefit sharing scheme (Art. III, page 6). Euro Liberia Logging agreed to participate in community development programs with US$ 11,000 annually for human resource development which will be paid in two instalments on February 5th (60%), and May 5th (40%) every year (Art. III, page 6). The CFDC will receive 10% of the annual revenue to the communities (area and production base fees) as compensation, which shall be distributed based on positions (Art. IV(e)). 10% of the area-base fee will be paid directly by the National Benefit Sharing Trust Board every month but the 10% of the production / base fee compensation shall be received at the end of the year (Art. IV(f)).

• Community development obligations: Local content

  Euro Liberia Logging will respect employees’ rights consistent with the Labor Laws of Liberia (Art. III, page 5). Euro Liberia Logging agreed to give employment preference to both skilled and unskilled locals of the communities (Art. III, page 6). Euro Liberia Logging agrees to participate in Community Development Programs (Art. III, page 5).

• Community development obligations: Infrastructure and social services

  Euro Liberia Logging agrees to construct workers camps near existing towns or affected areas (Art. III, page 6). Euro Liberia Logging agreed to (a) construct and maintain roads in its operational area, and (b) allow the communities to use, free of charge, any roads constructed or maintained; provided that such use shall not prejudice or interfere with either party (Art. III, page 6). Euro Liberia Logging agreed to construct schools in its operation area with no school access for the education of employees’ dependents (Art. III, page 6).

• Community development obligations: Other

  Euro Liberia Logging agreed to provide transportation to the communities during emergency situations and major development activities (Art. III, page 5). Euro Liberia Logging agreed to provide, if needed, timber products to the communities during community development projects (Art. III, page 6).

• Environmental and social protection

  Euro Liberia Logging agreed to design its 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 5). Euro Liberia Logging also agreed to ensure its operations protect and maintain existing water collection points (Art. III, page 5). Euro Liberia Logging agreed to ensure its timber operations are timed to minimize disruption to subsistence agricultural activities and to respect existing cash crops/food crops (Art. III, page 5). Euro Liberia Logging agreed not to harvest palm trees for processing, bridge construction or export (Art. III, page 6).

• Reference to investor-state contract

  The government will ensure that the operations of Euro Liberia Logging are in compliance with the Forestry Management Contract between the government and Euro Liberia Logging (Art. V, page 7).