The contract can be renewed if mutually agreed between the parties; If a party wishes to renew the agreement, it shall inform the other party at least six months before the expiration of the contract period; The agreement shall be renewed on the same terms and conditions as in this contract
State agency, national company or ministry executing the document
Ministry of Agriculture. The Ministry of Agriculture, as representative and highest authority of Ethiopian government to this contract, shall guarantee the validity of this agreement; Registration and approval by notary office is not necessary; Copies of the contract shall be sent to Al-Mehdi Match Makers, District administration, finance office, investment commission and other concerned bodies
Environmental impact assessment and management plan
Al-Mehdi Match Makers is required to conduct an environmental impact assessment and deliver the report within three months of execution of the contract
Al-Mehdi Match Makers must provide good care and protection of the lease land and the natural resources thereon, including conserving tree plantations that have not been cleared for earth works, applying appropriate work methods to prevent soil erosion in sloping areas, observing and implementing measures consistent with relevant natural resource conservation laws, and completing an environmental impact assessment within three months of executing the contract
The Ministry of Agriculture undertakes to provide, or cause to be provided, to Al-Mehdi Match Makers 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 on transactions with affiliated parties
Dividing the leased land among the shareholders of Al-Mehdi Match Makers to develop the leased land in an independent way or subleasing the leased land to any party is strictly forbidden and shall result in the termination of the contract
Al-Mehdi Match Makers is entitled to a 5-year grace period for the land rent; The rent for the first 5 years will be pro-rated over the remaining years of the contract annually; After the first 5 years, the annual lease rate per hectare will be birr 649.65, making an annual amount of payment of birr 649,650, and a total amount payable for the life of the contract of birr 19,489,500; Once the land rent becomes payable, Al-Mehdi Match Makers must settle the current land rent owing, including the pro-rated amount of the grace period during the months of December until June every year; The Ministry of Agriculture has the right to revise the land rent as the need may arise; Al-Mehdi Match Makers is also required to pay a one-year down payment to the Ministry of Agriculture
Al-Mehdi Match Makers must provide good care and protection of the lease land and the natural resources thereon, including conserving tree plantations that have not been cleared for earth works, applying appropriate work methods to prevent soil erosion in sloping areas, observing and implementing measures consistent with relevant natural resource conservation laws, and completing an environmental impact assessment within three months of executing the contract
Al-Mehdi Match Makers has the right to build infrastructure such as dams, water boreholes, power houses, irrigation systems, 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 concerned offices and subject to the type and size of the investment project.
Upon the expiry or termination of the agreement, Al-Mehdi Match Makers shall remove assets installed on the leased land and hand over access to the land within the period not exceeding one year; If the contract terminates upon expiry of the term, the Ministry of Agriculture has a priority right to purchase properties on the land in negotiation with Al-Mehdi Match Makers; If there are properties on the land that the Ministry of Agriculture does opt to buy, Al-Mehdi Match Makers may sell such properties to an interested third party upon written permit of the lessor
The Ministry of Agriculture is obliged to arrange access and use of facilities of the Ethiopian government and the Regional State Research centers, with fee, for the purposes of soil testing and mapping
The Ministry of Agriculture shall provide adequate security, free of cost, against any riot, disturbance or any other turbulent time other than force majeure, as and when requested by Al-Mehdi Match Makers
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, Al-Mehdi Match Makers has no right to transfer the land, use rights of the land or properties developed on the land to other persons; Upon developing 75% of the land, Al-Mehdi Match Makers can transfer the land or the properties developed on the land to other persons only with prior consent and written permit of the Ministry of Agriculture.
Al-Mehdi Match Makers is obliged to start to develop the land within 6 months, and develop 1/5 of the leased land within the first year, from the date the contract was executed or the date the contract has received all relevant government clearances, whichever is later; Al-Mehdi Match Makers must develop the entire plot of the leased land within a period of not more than 5 years from such date.
The agreement may be terminated for the following reasons: (i) expiry of the contract term; (ii) failure of the Ministry of Agriculture to deliver the leased land to Al-Mehdi Match Makers for reasons other than force majeure; (iii) breach of obligations or covenants in the contract by the Ministry of Agriculture and failure to remedy such breaches after Al-Mehdi Match Makers sends notice of such breach for six months; (iv) failure of Al-Mehdi Match Makers to settle annual rental and other relevant taxes for two consecutive years; (v) breach by Al-Mehdi Match Makers of obligations or covenants within its control and failure to remedy those obligations or covenants after the Ministry of Agriculture has given six months notice of its intention to terminate; (vi) termination by Ministry of Agriculture for better public interest after it has given six months notice of its intention to terminate; and (vii) termination by Al-Mehdi Match Makers for its own good reasons after it has given six months notice of its intention to terminate.
If the contract is terminated: (i) by Al-Mehdi Match Makers for breach of its obligations or covenants by Ministry of Agriculture; or (ii) by the Ministry of Agriculture for better public interest, the Ministry of Agriculture shall pay to Al-Mehdi Match Makers the value of improvements made by Al-Mehdi Match Makers on the land at the market price after deducting any dues on account of rentals or taxes; If the contract is terminated: (i) upon the failure of Al-Mehdi Match Makers to settle the annual rent and other relevant tax payments for two consecutive years; (ii) upon the failure of Al-Mehdi Match Makers to fulfill its obligations within its control after the Ministry of Agriculture has given six months notice; or (iii) upon termination by Al-Mehdi Match Makers for its own good reason with six months written notice, no payment shall be made by the Ministry of Agriculture to Al-Mehdi Match Makers upon termination
Al-Mehdi Match Makers shall not make any unauthorized use of the leased land beyond the predetermined purpose or objective or plan as stated in article 3 of the contract without the express consent of the Ministry of Agriculture in writing
Al-Mehdi Match Makers shall provide correct data and investment activities reports upon request by the Ministry of Agriculture; The Ethiopian government has the right to monitor and establish the fact that Al-Mehdi Match Makers 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 Al-Mehdi Match Makers