Note:
Retrieved from box folder. https://data.opendevelopmentmekong.net/laws_record/contract-on-teak-trees-tectona-grandis-planation-and-processing- (link not active).
Siam Pang and Stung Treng districts of Stung Treng province
The government and Green Sea Industry have to cooperate/collaborate with relevant institutions to completely conduct a research study and survey and, completely determine other possessive lands before 23/11/2003 and those possessive lands have to cut out from the investment plan.
Green Sea Industry must pay the expenditure for the research study and survey, and location plotting.
If Green Sea Industry finds any minerals, gems, gold or any similar valuable natural resources on or underneath the land, these resources will be considered part of the national inheritance and kept as property of the government
Green Sea Industry can request to extend the term of the contract before 23/11/2070. In order to extend the contract, Green Sea Industry must obtain permission and approval from the government.
100,852 hectares
Parcels of land within the concession area that are owned by certain residents, as well as their agricultural land used to produce agricultural products for household consumption, will be excluded from the concession area unless Green Sea Industry collaborates with the residents to exploit the land.
Green Sea Industry can rent additional land if it is available.
The government will monitor/control and evaluate on the environment impact of the premises.
When implementing the production works upon the project plan, Green Sea Industry must consider the environmental impact which may arise or result from operating the project.
Mountain, basins, productive forestland and protected area within the concession area must be retained in a natural manner.
Green Sea Industry must strictly implement the environmental protection in accordance with Cambodian environment laws.
Green Sea Industry can sell, buy and deliver products which are necessary or desirable to operate the production exploitation within Cambodia and overseas in accordance with Cambodian law
Green Sea Industry will receive tax exemption in accordance with Chapter 5 of the Cambodian investment law.
The government must intervene and coordinate with the ministries departments and other governmental institutions to fulfil the application form for importation and receive: (i) a 100% tax exemption for the importation of materials and equipment, machinery, raw materials, chemical fertilizer and the exportation of Green Sea Industry's products; and (ii) intervention for tax emption or other taxes reducing to encourage the investment, at the present time as well as in the future.
Green Sea Industry can request a discount in tax if its economic situation drop down due to the production,if yield is not as high as anticipated or in case of security issues occurred in the concession area and caused the investment can not be implemented or natural disaster occurred
Green Sea Industry must deposit a performance bond of US$ 50,000 to guarantee implementation of the contract no more than 6 months after signing the contract. The performance bond will be returned to Green Sea Industry upon completion of the plantation within 12 years in accordance with the land use planning in the master plan.
Green Sea Industry can obtain plants and other properties, which have already expended, as guarantee for additional capital for the investment from local and internationals banks.
Green Sea Industry must pay the government royalties for any economic timbers removed from the concession area prior to development in the concession area in accordance with the national principles and forest management law
Green Sea Industry must pay annual rent in accordance with notification No. 803 dated 31/05/2000 and as determined by the government. The rent is due in January and must be paid no later than 31 January.
Green Sea Industry must pay rent in accordance with the flexible rate determined by the government. The government must determine the amount of rent due based on the investment law of Cambodia.
Green Sea Industry can request a discount in rent if its economic situation drops down due to the production, yield is not as high as anticipated or in case of security issues in the concession area.
If Green Sea Industry is late in paying the flexible rate rent, they will be fined 2% of the total renting fee per each year depending on the number of year of late payment. Failure to pay the rent and/or a fine can lead to the government terminating the contract.
The government must intervene with relevant authorities in order to prevent and resolve any conflicts or incidents that would result in the infringement and/or violations of the rights of Green Sea Industry under the contract. Examples of such infringements or violations include confiscation of any portion of the premises or destroying products and other equipment.
Green Sea Industry can select local laborers or employ foreign experts if no local experts are available, in accordance with Cambodian law to instruct or train local labor regarding the technical work for production
Protections or benefits for employees, dependents, or others
Sea Green Industry must provide health care and training for employees and their family through the construction of houses, hospital, pagoda, school, place for entertainment, etc., based on its ability
In order to implement the project, Green Sea Industry can cut down trees-land in preparation for plantation, construct bridges-infrastructure, housing and maintenance, etc.
Green Sea Industry must build a factory for processing the products from its own plantation for domestic consumption and exportation.
Green Sea Industry can operate all legal and appropriate construction works on the concession area.
Green Sea Industry must obtain authorization from the government or any relevant institution to construct infrastructure such as dams, canals which may affect the surrounding area.
All assets and infrastructure constructed by Green Sea Industry will remain under its occupation and management until the termination of the contract.
Green Sea Industry may not construct infrastructure which may affect the surrounding area, such as dams or canals, without authorization from the government or any other relevant professional institution.
Green Sea Industry must cooperate and collaborate with the government institution concerned, as well as the private sector, domestic and abroad, on the technical use in planting and processing.
Green Sea Industry must import important equipment, spare parts, chemical raw materials, plans, seeds, and animal breeds necessary to operate the production-exploitation in accordance with the laws of Cambodia.
Both parties must cooperate/collaborate with relevant institutions to completely conduct a research study and survey and completely determine other possessive lands before 23/12/2003. Those possessive lands will be cut out from the concession area. Green Sea Industry will bear the cost of this research study and survey and location plotting.
Green Sea Industry cannot begin production unless the management plan is accepted and approved by the government. The government must respond in relation to the management plan within 60 working days and, if no answer is provided, the plan has been approved. Green Sea Industry must use the land in accordance with the land use planning in the master plan within 12 years.
Green Sea Industry must prepare the implementation of production exploitation on the premises, as provided in its technical specifications and financial projections in the contract.
If any conflict or dispute arises during the term of the contract, Green Sea Industry and the government must enter into a conciliatory settlement of the conflict or dispute.
If Green Sea Industry and the government are unable to reach a settlement or resolve the conflict or dispute, then within 60 days of either party notifying the other of such inability, a request for conflict proceedings shall be submitted to the Council for Development of Cambodia.
If the dispute or conflict is still not resolved, Green Sea Industry and the government must submit the conflict or dispute to a commercial arbitration tribunal or any competent tribunal in Cambodia. If the dispute cannot be resolved in Cambodia, it will be resolved by arbitration in Singapore, in accordance with the Singapore Arbitration Rules. The language used in the arbitration must be Khmer.
Green Sea Industry can assign the premises to its legal successor or assignees by giving the government 6 months notice prior to the transfer.
Green Sea Industry must obtain the approval of the Council for Development of Cambodia, through the request from the government in case of re-renting, portion or whole size, or selling this renting agreement to a third party.
The contract will terminate on 23/11/2017.
When the contract terminates, Green Sea Industry must return the concession area and all possesses such as plants, buildings, factories, other equipment and natural resources to the government.
When the contract is terminated, the government guarantees that Green Sea Industry is allowed to repatriate its foreign employees, workers and dependents safely and to repatriate or sell its equipment, machinery, plants, motor vehicles, barges, motors, vehicles and other transport facilities, capital funds and any other fixtures in accordance with applicable laws and regulations.
If Green Sea Industry fails to pay rent or a fine for a year or more without a reasonable reason, the government can seize the deposits for the performance bond, and concession land as well as plants for the state property and terminate the agreement without any compensation.
Green Sea Industry can terminate the contract in writing and inform the government if Cambodian law cannot provide the licence or approval on the zone mapping and border demarcation of the concession that are made by the government, will be excluded, cancelled, postponed or changed the use of the premise in the project or if the government withdraws some parcel of all of the land concession developed by Green Sea Industry and the government must pay compensation of the expenditure for this development.
Green Sea Industry can only withdraw from all or any part of the projects under the condition beyond its control and upon agreement of both parties.
If Green Sea Industry withdraws on its own risk, it shall be liable to article 23 of the Investment Law.
If Green Sea Industry fails to commence the project before 23/11/2003, the government can terminate the contract without any conditions and compensation. Green Sea Industries will also forfeit the deposits it paid to the government.
If the government withdraws some parcels or the whole site of the land concession that Green Sea Industry has developed, the government has to pay compensation to Green Sea Industry for the expenses it has incurred in the development of the land
Any failure or delay in the performance of any obligation by either party arising from a force majeure will not breach of the terms of the contract. Green Sea Industry must promptly report any such event to the government.
A force majeure includes, without limitation, Acts of God, general strikes, civil performance, war, riots, insurrection, hostilities, that would prevent the performance of an obligation by either party.