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.
Toren Agro Industries is obliged to take good care of the leased land and the natural resources on it, 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
Restrictions sur les transactions avec les parties liées
Dividing the leased land among shareholders to develop in an independent way or subleasing to any party is strictly forbidden and shall result in the termination of the lease
There shall be a 3-year grace period for the land rent, where the rent during this period will be prorated over the remaining years annually. After the first 3 years, the annual lease rate shall be birr 948,000 (or birr 158 per hectare). The total amount payable under the agreement shall be birr 23,700,000. Toren Agro Industries is also required to make a 1-year down payment to the Government. The Government reserves the right to revise the lease payment rate as the need may arise.
Toren Agro Industries 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, subject to the type and size of the investment project.
Upon the expiry or termination of the agreement, Toren Agro Industries shall remove all assets installed on the leased 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 Toren Agro Industries.
The Ministry of Agriculture 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 Toren Agro Industries 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 Toren Agro Industries. The Government shall protect the right of Toren Agro Industries to the peaceful possession, use and quiet enjoyment of the leased area.
Toren Agro Industries 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. Toren Agro Industries shall develop 1/3 of the leased plot of land (or 2,000 hectares) within the first year. It shall develop the entire plot of leased land within a period of not more than 3 years.
Upon entering into this agreement, Toren Agro Industries shall submit an advance action plan with regards to the use of the leased land to the Government. Toren Agro Industries has to execute all development activities as per the agreed business plan. Change to or deviation from the business plan must be reported with justification to the Government.
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 Ethiopian Federal Court.
Unless 75% of the land is developed, Toren Agro Industries has no right to transfer the land or properties developed on the land to other persons. Upon developing 75% of the land, Toren Agro Industries can transfer the land or properties (but not only the remaining land which is not developed) to other persons with the prior permit of the Government.
The agreement may be terminated for (1) expiry of the term, (2) failure by the Government to deliver the land to Toren Agro Industries for reasons other than force majeure, (3) failure of the Government to fulfill its obligations under the agreement within 6 months of receiving written notice from Toren Agro Industries, (4) failure of Toren Agro Industries to settle annual rental and relevant tax payments for 2 consecutive years, (5) failure by Toren Agro Industries to perform its obligations under the agreement within 6 months of receiving notice from the Government, (6) termination by the Government on justified good cause after 6 months' prior written notice to Toren Agro Industries, and (7) termination by Toren Agro Industries upon justified good cause after 6 months' written notice to the Government. The Government has the right to restore any land which is not developed with 6 months' advance notice and after Toren Agro Industries has not cured the failure within 1 year. The Government shall issue 6 months' advance notice prior to termination of the agreement on the grounds of (1) failure to develop the land within the time limits set by the agreement, (2) if there is any damage to the natural resources, or (3) non-performance of due payment of lease charge. If the issue is not addressed, the Government may extend the time period for such compliance or terminate the agreement in accordance with the terms of the agreement.
The Government 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 Government may either extend the time period for compliance or terminate the agreement.
If the agreement is terminated by Toren Agro Industries for failure of the Government to fulfill its obligations or for termination by the Government on justified good cause, the Government shall pay to Toren Agro Industries the value of improvements made by Toren Agro Industries on the land at the market price after setting off any dues on account of rentals or taxes
Toren Agro Industries shall not use the leased land for any other purpose than the purpose in article 3 without the prior written consent of the Ministry of Agriculture
Toren Agro Industries 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 Toren Agro Industries 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 Toren Agro Industries.