The Ministry of Agriculture, Forestry and Fisheries will issue a letter stating the area of land over which Heng Yue (Cambodia) International Company may operate the concession within 60 days of execution of the contract
Renouvellement ou prolongation de la durée de la concession
The contract can be extended if: a. extension is needed to complete remaining works or suspension of the process because of a breach of the contract by the Ministry of Agriculture, Forestry and Fisheries or by the actions of other competent authorities; or b. there has been a force majeure which prohibited Heng Yue (Cambodia) International Company from recover costs and expenditure or caused Heng Yue (Cambodia) International Company other loss. The term can also be extended if Heng Yue (Cambodia) International Company requests extension within one year prior to the expiry date, and both of the following are satisfied: (a) Heng Yue (Cambodia) International Company performed the contract "properly or well"; and (b) the land must not have been allocated for some other use by the government.
Etude sur l'impact environnemental et plan de gestion
Heng Yue (Cambodia) International Company must coordinate with the Ministry of Agriculture, Forestry and Fisheries and relevant institutions in monitoring and evaluation of its operations, with reference to the environmental impact assessment, and Heng Yue must also improve its operations impact on the environment according to guidance and advice from the Ministry of Agriculture, Forestry and Fisheries
Heng Yue (Cambodia) International Company should carry out the planned works, including land clearance, road construction and land utilization by respecting the terms and conditions of this contract, and sustainably maintaining the natural resources of the location and minimizing the environmental impact of the business operation. Heng Yue (Cambodia) International Company must also bear responsibility for the conservation of evergreen forest, semi-evergreen forest and deciduous forests where they exist in conserved and protected locations inside the concession land; It must also bear responsibility and take action against forest fire in the land concession area.
Land concession fees will be collected. For acacia, the first 5 years of fees are waived. From year 6 Heng Yue (Cambodia) International Company will pay $5 per hectare with an annual increment of 5%. For sugarcane, Heng Yue (Cambodia) International Company will pay $5 per hectare of cultivated area with an annual increment of 5%. The fees for acacia and sugarcane are to be revised every five years as necessary. Heng Yue (Cambodia) International Company shall pay a deposit of $10 per hectare at the time of signing the contract. If Heng Yue (Cambodia) International Company fails to pay within two months, the contract is abrogated. 70% of the deposit will be returned to Heng Yue (Cambodia) International Company after it has completed the cultivation as stated in the master plan. The remaining 30% will be transferred to the state's budget for the purpose of executing the contract or for off setting the concession fees at the end of the payment duration.
Heng Yue (Cambodia) International Company must resolve any issue regarding resettlement in accordance with effective procedures within 1 year from the date of signing the contract
Heng Yue (Cambodia) International Company must ensure that people living in the investment zone benefit from the project, including the use of infrastructure, roads, schools, health centers and the creation of job opportunities linked to the project, which shall include the integration of household farmers' production; Disputes with local people or with third parties with land tenure rights inside the concession area can be a reason for which the Ministry of Agriculture, Forestry and Fisheries can suspend the implementation of the contract, in part or in full
Heng Yue (Cambodia) International Company must use a local labor force; If there are no local experts available, Heng Yue can hire foreign experts to advise and instruct on technical issues related to the business production as needed
Programme de sous-traitance avec les petits planteurs
Heng Yue (Cambodia) International Company must ensure that people living in the investment zone benefit from the project, including through the creation of job opportunities linked to the project, which shall include the integration of household farmers' production
Protections ou avantages pour les employés, les personnes à charge ou pour des tiers
Heng Yue (Cambodia) International Company should consider improving the livelihood, health and education of its employees, workers and their families by building suitable houses, hospitals, temples, schools and recreation centers
Heng Yue (Cambodia) International Company must resolve any issue regarding resettlement in accordance with effective procedures within 1 year from the date of signing the contract; the Ministry of Agriculture, Forestry and Fisheries is obliged by the contract to permit all construction of infrastructure, such as dams and canals, including those that may affect local communities
Mineral resources and national heritage objects found under or above ground are the property of the government, and Heng Yue (Cambodia) International Company has no right to manage or use these resources. If Heng Yue (Cambodia) International Company finds mineral resources, precious stones, gold or items of national heritage either above or below ground, it shall terminate its activities and inform the Ministry of Agriculture, Forestry and Fisheries immediately. If Heng Yue (Cambodia) International Company fails to so terminate its activities it will bear all responsibilities under the laws of Cambodia. If the minerals have high economic potential, the government has the right to cut off those parts of the concession land and mine those resources. Items of cultural or historical heritage shall be kept as national or state property or the areas in which they are found shall be cut off from the concession land.
Heng Yue (Cambodia) International Company must prepare a master plan for the plantation and submit it to the Ministry of Agriculture, Forestry and Fisheries for review and approval within three months of signing the contract and after the parties have fulfilled the duties in Art. 2; The master plan must set out how the land will be used, including technical practices and terminology, a forest rehabilitation plan and an economic-financial plan for long-term development in the concession; An annual plan must also be prepared by Heng Yue (Cambodia) International Company and approved by the Ministry of Agriculture, Forestry and Fisheries
Land will be allocated by year as follows: Year 1; 1,000 hectares; Year 2: 1,000 hectares; Year 3: 1,500 hectares; Year 4: 1,500 hectares; Year 5: 2,000 hectares; Year 6: 2,959 hectares
The parties should attempt to resolve any dispute through negotiation; If parties do not resolve the dispute within 2 months, the dispute is to be resolved by the courts of the Kingdom of Cambodia; Parties can also elect to refer the dispute to an international arbitration, provided both parties agree to such a referral
Heng Yue (Cambodia) International Company cannot transfer their interest in the contract to a third party until they have executed at least 30% of the plantation development and the Ministry of Agriculture, Forestry and Fisheries has completed an evaluation; To transfer the contract, a new contract must be signed by all parties involved to enable the third party to take direct responsibility with regards to the Ministry of Agriculture, Forestry and Fisheries
Termination will occur: (a) at the conclusion of the duration of the contract; or (b) by agreement of both parties. the Ministry of Agriculture, Forestry and Fisheries can also unilaterally terminate the contract and confiscate the concession land from Heng Yue without any compensation if Heng Yue (Cambodia) International Company: (i) fails to implement a term of the contract or breaches a law; (ii) fails to begin implementation of the project within 12 months after the concession land has been provided; (iii) fails to produce crops or carry out the operation after 12 months without reasonable or appropriate reasons; (iv) converts concession land into private land; (v) fails to pay any land fee within 1 year; (vi) transfers the concession land without renewing the contract with the Ministry of Agriculture, Forestry and Fisheries; (vii) fails to prevent, and protect against, forest fires in the concession area; or (viii) commits mistakes or crimes which breach fundamental conditions of the contract. the Ministry of Agriculture, Forestry and Fisheries can also ask a court to terminate the contract where: (i) Heng Yue (Cambodia) International Company becomes bankrupt or begins to liquidate its assets as part of the process of winding down; or (ii) Heng Yue (Cambodia) International Company fails to comply with any of the obligations stated in the contract after receiving warnings regarding such a breach on two occasions and failing to remedy such a breach within the time allowed by the warning.
A party's failure to fulfill the contract will not lead to an obligation to compensate the other party if that fail resulted from a force majeure. Events of force majeure include incidents that are outside the control of the party affected, such as war, strike, civil unrest, heavy natural calamities that affect the operation of the project; If a force majeure occurs, the party affected must notify the other party within 14 days, and has the burden of proving to the other party that the event was indeed a force majeure; If the force majeure continues to disrupt the fulfillment of obligations for 6 months, each party has the option of terminating the contract by providing advance notice to the other party in writing
Heng Yue (Cambodia) International Company must prepare semestral (6 monthly) and annual reports on the progress and achievements of the implementation of the investment project