Community Forestry Development Committee of Forest Management Contract Area K, River Cess County – International Consultant Capitol (ICC) – 2016 – Social Agreement

Basic information

Country

Liberia

Community party

Community Forestry Development Committee of Forest Management Contract Area K, River Cess County

Company signatory

International Consultant Capitol (ICC)

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

21/03/2010

Language

English

Location

River Cess 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 International Consultant Capital and the communities of River Cess County Community Forest Development Committee (“the communities”). The Forestry Development Authority of Liberia is a witness to the agreement (page 2). The Forest Management Contract Area K was awarded International Consultant Capital (“ICC”). In preparing Forest Management Contract Area K, 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. 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 5). 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 consists of at least 5 members who must be residents of the community which they represent (Art. IV). Members must be freely and fairly elected and provide a means for all residents that it represents including women, elder, and youths to have their views heard and considered (Art. IV(a), (b), and (d)). The CFDC must hold monthly meetings with community members for briefings, updates and grievances (Art. IV(h)).

  • Governance, implementation, dispute resolution

    International Consultant Capital (“ICC”) and the communities will maintain lines of communication regarding the agreement and will provide periodic updates (which should include information as to volume of logs removed to date) to the chairperson of the CFDC (Art. VI(C)). The parties will hold an annual meeting with representatives of the CFDC, the government and ICC 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)). ICC agrees to hold quarterly meetings with the CFDC and the communities. In addition to the quarterly meetings, International Consultant Capital will hold emergency meetings with the CFDC and affected community to discuss any issues affecting the community when need arises. (Art. III, page 8). International Consultant Capital will allow the CFDC leadership or special representative to verify its production when operation is ongoing. (Art. III, page 8). International Consultant Capital will notify CDFC of any sub-contractual agreement to enhance its efficiency. (Art. III, page 8). If there is any controversy under the agreement, the parties will seek to resolve the matter with the assistance of the government (Art. IX). If there are still differences, local government officials (District Commissioner, Paramount Chiefs, Clan Chief, and Town Chief) should be neutral parties in a third-party mediation process. If not resolved by these steps, any claim relating to the agreement shall be exclusively settled by binding arbitration in accordance with the Arbitration Rules (Art. IX). The arbitration proceedings will be in English with interpreter provided for local languages (Art. IX). The governing law is the law of Liberia (Art. IX). 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

    International Consultant Capital (“ICC”) must pay to the communities land rental fees and cubic meter fees. ICC will pay US$ 1.50 for each cubic meter of timber cut to the CFDC and US$ 2.50 per acre land rental fees to the community benefit sharing scheme (Art. III, page 8). International Consultant Capital has paid 50% of the total cubic meter fees for logging season March 2015 to July 2016 and the balance to present shall be paid October 28, 2016. Any default in this payment shall render the agreement “none and void.” (Art. III, page 8). The CFDC shall receive 10% of the annual revenue to the communities (area and production base fees) as compensation (Art. IV(f)). 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-based fee compensation shall be received at the end of the year (Art. IV(g)). ICC pays US$ 7,000 annually to CDFC for human resource capacity building for citizens of affected communities (Art. III, page 8).

  • Community development obligations: Local content

    International Consultant Capital (“ICC”) agrees to give first preference for skilled and unskilled employment for the communities of River Cess County (Art. III, page 7).

  • Community development obligations: Infrastructure and social services

    International Consultant Capital (“ICC”) agreed to (a) construct secondary roads based on request and assessment but will maintain all operation and access roads, 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 8). ICC will build 15 handpumps over the period of 5 years (Art. III, page 7).

  • Community development obligations: Other

    Upon the request of the community, International Consultant Capital agrees to provide logs and timber products to the community during community development projects (Art. III, page 7).

  • Environmental and social protection

    International Consultant Capital (“ICC”) 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 7). ICC also agreed to ensure its operations protect and maintain existing water collection points (Art. III, page 7). ICC 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 7). ICC agreed not to harvest palm trees for processing, bridge construction or export (Art. III, page 7).

  • Reference to investor-state contract

    The government will ensure that the operations of International Consultant Capital are in compliance with the Forestry Management Agreement (Art. IV, page 9).

  • Other noteworthy clauses

    The community will avoid expansion of subsistence agriculture activities within the contract area. (Art. V, page 9).