Renouvellement ou prolongation de la durée de la concession
The agreement can be renewed for additional years as mutually agreed by the parties. The agreement shall be renewed on the same terms and conditions. If either party wishes to renew the agreement, it shall inform the other party at least 6 months before the expiration of the term.
Verdanta Harvests shall provide good care and conservation of the lease land and its natural resources, with particular obligations to (a) conserve tree plantations that have not been cleared for earth works, (b) apply appropriate work methods to prevent soil erosion in "slopping" areas, and (c) observe and implement all legislation regarding natural resource conservation
The Government undertakes to provide special investment privileges such as exemptions from taxation, import duties of capital goods, and repatriation of capital and profits granted under the investment laws of Ethiopia
More than 50% of the plantation will be for tea, free of any other land rent other than the rent expressed in art. 2 of the agreement. Verdanta Harvests has the right to export its tea products from the land with an export license as per the countries' export policy and regulations.
There shall be a 5-year grace period for the land rent, where the rent during this period will be prorated over the remaining years annually. After the first 5 years, the annual lease rate shall be birr 334,332 (or birr 111 per hectare). The total amount payable under the agreement shall be birr 16,716,600. Verdanta Harvests is also required to make a 1-year down payment to the Government. The Government reserves the right to revise the lease payment rate after 10 years as the need may arise and in consultation with Verdanta Harvests. However, any increase in the lease rate shall not exceed 20% of the existing rate.
Verdanta Harvests has the right to build infrastructure such as dams, water boreholes, power houses, irrigation system, roads, bridges, offices, residential buildings, fuel/power supply stations/outlets, health/hospitals/dispensaries and education facilities at its discretion upon consultation and submission of permit request with the Government and subject to the type and size of the investment project.
Upon the expiry or termination of the agreement, Verdanta Harvests shall remove assets installed on the land within 1 year. However, where the agreement is terminated upon expiry of the term or for one of the reasons in article 9, the Government has the priority right to purchase properties over the land in negotiation with Verdanta Harvests.
Verdanta Harvests shall export its tea products from the leased land having an export license as per the Ethiopian export policy and regulations.
The Ministry of Agriculture and Rural Development has an obligation to arrange access and use of facilities of the Government and Regional State Research centers for soil testing and mapping purposes, for a fee
La sécurité physique ou la protection de la propriété
The Government shall ensure that Verdanta Harvests shall, during the period of the lease, enjoy peaceful and trouble free possession of the premises and shall be provided adequate security, free of cost, for carrying out its activities, against any riot, disturbance or other turbulent time other than force majeure, as and when requested by Verdanta Harvests. The Government shall protect the right of Verdanta Harvests to the peaceful possession, use and quiet enjoyment of the leased area.
Verdanta Harvests is expected to start developing the land within 6 months from the date of execution of the agreement, or from the date that it receives final clearance from the Government, whichever is later. Verdanta Harvests shall develop 200 hectares of the land within the first year, at least 75% of the leased land within 7 years and the entire plot of land within 10 years from the date of signing or receipt of all clearances from the Government, whichever is later.
Upon entering into the agreement, Verdanta Harvests shall submit an advance action plan with regards to the use of the leased land to the Ministry of Agriculture and Rural Development
In the event of dispute, both parties will do their utmost to resolve the dispute amicably and to their mutual satisfaction. If they are unable to achieve such a settlement, the dispute shall be referred to the Ethiopian Federal Court.
Unless 75% of the land is developed, Verdanta Harvests has no right to transfer the land or properties on the land to other persons. Upon developing 75% of the land, Verdanta Harvests can transfer the land or the properties to other persons, but only with the prior written permission of the Ministry of Agriculture and Rural Development.
The Government has the right to terminate the land lease agreement subject to at least 6 months' prior written notice (i) on breach of contract, (ii) on the grounds of failure to develop the land within the time limits in accordance the contract obligation, (iii) on the grounds of any damage on the natural resources, or (iv) on the grounds of non-performance of due payment of lease charge. In the case of (ii), (iii) and (iv) above, if Verdanta Harvests does not address such issue, the Government may extend the time period for such compliance or terminate the agreement. The land lease agreement may be terminated for a number of reasons, including upon (9.3) failure of the Government to fulfill or observe any of its obligations or covenants in the lease after Verdanta Harvests has given a written notice of 6 months and the Government fails to perform, (9.4) failure of Verdanta Harvests to settle annual rental and other relevant tax payments for 2 consecutive years, (9.5) failure of Verdanta Harvests to perform its obligations within its control in the lease after the Government has given 6 months' written notice calling upon them to observe and perform such obligations. The Government has the right to restore any land which is not developed with 6 months' advance notice and after Verdanta Harvests has not cured the failure within 1 year.
The Ministry of Agriculture and Rural Development shall issue 6 months' written notice prior to termination of the agreement on the grounds of failure to develop the land within the time limits set by the agreement. If the issue is not addressed, the Ministry of Agriculture and Rural Development may either extend the time period for compliance or terminate the agreement.
If the agreement is terminated by Verdanta Harvests for failure of the Government to fulfill its obligations, the Government shall pay to Verdanta Harvests the value of improvements made by Verdanta Harvests on the land at the then market price after setting off any dues on account of rentals or taxes
Verdanta Harvests shall not use the land for any purpose beyond the purpose stated in art. 3 (which involves developing the land for tea and allied plantation), except with the prior written consent of the Ministry of Agriculture and Rural Development
Verdanta Harvests shall provide correct data and investment activity reports upon request by the Government. The Government has the right to monitor and establish the fact that Verdanta Harvests is discharging and accomplishing its obligations diligently. This monitoring must be done in a manner that does not cause any hindrances to the work and activities of Verdanta Harvests.