The contract can be renewed for additional years if mutually agreed between the parties; Any renewal would be on the same terms and conditions as in this contract; Any party wishing to renew the contract must inform the other party 6 months prior to the termination of the contract
State agency, national company or ministry executing the document
Ministry of Agriculture and Rural Development of the Federal Democratic Republic of Ethiopia ('the Ministry')
The Ministry, as representative and highest authority of the Ethiopian government to this contract, shall guarantee the validity of this agreement despite the absence of registration; Registration and approval by notary office is not necessary; Copies of the contract shall be sent to Al-Mehdi, district administration, the finance office, the investment commission and other concerned bodies
BHO must take good care of and conserve the leased land and the natural resources on it; BHO must: (a) conserve tree plantations that have not been cleared for earth works; (b) apply appropriate working methods to prevent soil erosion in sloping areas; (c) observe and implement all laws providing for natural resource conservation; and (d) conduct an environmental impact assessment and deliver the report of that assessment within 3 months of the execution of the contract
The Ministry reserves the right to revise the lease payment rate after 10 years from such last fixation as the need may arise and in consultation with BHO; The revised rate may not exceed the existing rate by 20% or more
There is a 4 year grace period for the payment of land rent; Rent from the first 4 years of the contract will be prorated over the remaining years annually starting from the date of execution of the contract; Thereafter the annual amount payable will be birr 2,997,000 (or birr 111 per hectare) and the total amount payable under the agreement will be birr 74,925,000; There is to be a 1-year down payment
BHO must take good care of and conserve the leased land and the natural resources on it; BHO must: (a) conserve tree plantations that have not been cleared for earth works; (b) apply appropriate working methods to prevent soil erosion in sloping areas; (c) observe and implement all laws providing for natural resource conservation; and (d) conduct an environmental impact assessment and deliver the report of that assessment within 3 months of the execution of the contract
BHO has the right to build infrastructure such as dams, water boreholes, power houses, irrigation systems, roads, bridges, office, residential buildings, fuel/power supply stations/ outlets health/ hospitals/ dispensaries and education facilities upon consultation with, and submission of a request for a permit to, the relevant government offices
The Ministry is to arrange access and use of facilities of the Ethiopian government and the Regional State Research centers for soil testing and mapping for a fee
The Ministry must provide adequate security, free of cost, against any riot, disturbance or any other turbulent time other than force majeure, as and when requested by BHO. The Ministry of Agriculture shall protect the right of BHO to the peaceful possession, use and quiet enjoyment of the leased area.
74,925,000 Birr total amount payable under the agreement.
BHO is to start developing the land within 6 months from the date of execution of the contract or from the date that BHO receives final clearance from the Ethiopian government, whichever is later; BHO must develop 1/3 of the leased land within 1 year. Upon entering into the contract BHO must submit an advance action plan describing the proposed use of the leased land; BHO cannot make any unauthorized use of the leased land beyond the predetermined purpose, objective or plan as set out in Art. 3 without the prior written approval of the Ministry
Both parties are to do their utmost to resolve any dispute amicably; If they are unable to do so, the dispute is to be referred to Ethiopian Federal Court
The Ministry has the right to restore the lands covered by the lease which have not been developed by BHO on the expiry of one year from the date specified for commencement of development, provided that the Ministry gave BHO 6 months prior notice to cure such failure during a 1 year period and BHO failed to do so.
The contract may be terminated: (a) upon expiry of the lease period or other extended period as agreed by the parties; (b) upon the Ministry's failure to deliver the land to BHO for a reason other than a force majeure; (c) upon either party's failure to remedy a breach of their obligations within 6 months of receiving written notice from the other party to do so; (d) upon BHO's failure to settle annual rental payments for 2 consecutive years; and (e) upon 6 months' advance notice by either party to terminate the agreement.
Where the contract is terminated by BHO for breach by the Ministry of its obligations or covenants under the contract, the Ministry shall pay BHO the value of improvements made by BHO on the land; If the agreement is terminated by the Ministry because of a breach by BHO, it is not required to make a payment to BHO