The agreement signed between Gambela Regional State, Adobo district administration and Saudi Star Agricultural Development dated 29/09/2009 is canceled and replaced by this agreement
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.
Etude sur l'impact environnemental et plan de gestion
Saudi Star Agricultural Development has an obligation to conduct an environmental impact assessment and deliver the report within 3 months of execution of the agreement
Saudi Star Agricultural Development 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
The annual lease payment is birr 300,000 (or birr 30 per hectare). The total amount payable under the agreement is birr 15,000,000. The Government reserves the right to revise the lease payment rate as the need may arise.
Saudi Star Agricultural Development 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, Saudi Star Agricultural Development 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 Saudi Star Agricultural Development.
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 Saudi Star Agricultural Development 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 Saudi Star Agricultural Development. The Government shall protect the right of Saudi Star Agricultural Development to the peaceful possession, use and quiet enjoyment of the leased area.
Saudi Star Agricultural Development 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. Saudi Star Agricultural Development shall develop one fourth (2,500 hectares) of the land within the first year. Upon entering into the agreement, Saudi Star Agricultural Development 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 a 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, Saudi Star Agricultural Development has no right to transfer the land or properties developed on the land to other persons. Upon developing 75% of the land, Saudi Star Agricultural Development 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 Ministry of Agriculture and Rural Development.
Saudi Star Agricultural Development has the right to terminate the land lease agreement subject to at least 6 months' prior written notice upon justified good cause. The Government has the right to terminate the land lease agreement subject to at least 6 months' prior written notice (i) on justified good cause, (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 Saudi Star Agricultural Development 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 Saudi Star Agricultural Development has given a written notice of 6 months and the Government fails to perform, (9.4) failure of Saudi Star Agricultural Development to settle annual rental and other relevant tax payments for 2 consecutive years, (9.5) failure of Saudi Star Agricultural Development to perform its obligations 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 Saudi Star Agricultural Development 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 Saudi Star Agricultural Development for failure of the Government to fulfill its obligations or for termination by the Government on justified good cause, the Government shall pay to Saudi Star Agricultural Development the value of improvements made by Saudi Star Agricultural Development on the land at the market price after setting off any dues on account of rentals or taxes
Saudi Star Agricultural Development shall not use the land for any purpose beyond the purpose stated in art. 3 (which involves developing the land for rice farming and processing), except with the prior written consent of the Ministry of Agriculture and Rural Development
Saudi Star Agricultural Development 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 Saudi Star Agricultural Development 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 Saudi Star Agricultural Development.