This contract (a provisional lease of State land) was granted by the government because a lease under the Land Code could not be granted at the time of the contract; a lease under the Land Code was not possible because an immediate survey of the land had not yet been practicable.
Once a lease under the Land Code is granted, the land must only be used for agricultural purposes and for purposes incidental to the production and processing of crops as may be approved from time to time by the Director of Lands and Surveys. Mining and timber extraction are not allowed without an appropriate licence issued by the relevant authority.
The contract also contemplates the commercial development of peat soils.
The size of the concession area is 3,480 hectares.
Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah can only lease the total area of land shown to be available after the government completes a survey of the land.
Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah cannot lease any part of the land that may be required for the purpose of a road reserve.
Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah will not disturb any part of the concession area within 66 feet of any navigable rivers or streams within the concession area. If areas adjacent to the concession area are used for different crops and crop zoning is not possible, a buffer of 200 meters will be created along the common boundary.
This contract will come to an end upon the completion of a survey of the land and the grant of a lease under the Land Code. The lease under the Land Code will be for a period of 60 years, commencing on 17/10/1998.
Environmental impact assessment and management plan
Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah must complete an environmental impact assessment study on the area before implementing the project. They must submit 10 copies of the report to the Secretary, Natural Resources and Environment Board.
Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah must carry out a survey and submit a report on the peat depth and long term drainability of the proposed project area before commercially developing peat soils.
Under this contract, Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah will pay the Superintendent of Lands and Surveys Samarahan RM 8,596.00 annually or a revised amount as determined under section 30 of the Land Code.
If a lease under the Land Code is granted, Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah will pay the Superintendent of Lands and Surveys Samarahan a premium of RM 1,740,000.00 in three installments.
The first installment of RM 580,000.00 is due on 17/10/1999; the second installment of RM 650,492.27 is due on 01/01/1999; and the third installment of RM 650,492.27 is due on 01/01/2000.
To access the concession area from any trunk road, approval in writing must be received from the government. This approval must be obtained prior to any construction starting and/or the use of any trunk road.
Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah are not entitled to lease any of the concession area which may be required for the purpose of a road reserve.
Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah must not interfere with the rights of the existing timber and/or mining licensee to fell and extract timer or to extract mineral deposits within the concession area.
The Minister responsible for Land Development or any of his agents that are authorized by him in writing can enter the concession area at all reasonable times in order to enforce the plantation requirements.
If Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah breach or default on any or all of the conditions of this contract, the government can re-enter the concession area or the part of the concession area where the breach or default is occurring.
Lembaga Pembangunan Dan Lindungan Tanah and Nirwana Muhibbah must commence planting in the concession area by 17/10/2001. They must complete at least 50% of the planting of the next plantable area by 17/10/2005 and the whole of the net plantable area must be fully planted by 17/10/2008.
If Lembaga Pembangunan Dan Lindungan Tanah or Nirwana Muhibbah breach or default on any or all of the conditions of this contract, the government can forfeit and re-enter the concession area or the part of the concession area where the breach or default is occurring