Note:
This document is an unofficial translation, commissioned by OpenLandContracts, of the original Amharic-language contract disclosed by the government
Amharic version of contract available below as an associated document
The land lease agreement can be renewed for additional years on similar contractual terms and conditions. To renew the land lease agreement Mr. Daniel Fasil Bihon must notify the Ministry of Agriculture and Rural Development 6 months before its expiry.
5,000 hectares of land located in Southern Nation, Nationalities and Peoples Regional State, South Omo zone, Dassanech district (wereda), Belucho Ber kebele
The Ministry of Agriculture and Rural Development, considering the fact that this is a major investment operation, shall be obliged to provide and execute special privileges, to Mr. Daniel Fasil Bihon, such as exemptions from taxation and import duties on capital goods, and repatriation of capital and profits in accordance with the laws of Ethiopia that are proclaimed for foreign companies.
Restrictions on transactions with affiliated parties
Mr. Daniel Fasil Bihon shall not use the land for any purpose or plan other than stated in the land lease agreement without the prior written consent of the Ministry of Agriculture and Rural Development.
Starting from the day this land lease is signed, Mr. Daniel Fasil Bihon shall make no payments for the first 3 years for the leased land. Thereafter, the annual lease rate shall be Birr 158 per hectare of land. The total amount of payment for the lease period shall be Birr 19,750,000. Upon payment of the rent for the leased land, a receipt shall immediately be submitted to the district (wereda) administration office. There shall be a down payment of 1 year's rent. Mr. Daniel Fasil Bihon shall pay the annual land rental amount to the regional (office) where the land is located every year between the months of December and June in accordance with the predetermined land lease rate for rural lands.
Mr. Daniel Fasil Bihon shall have the right to build, whenever deemed appropriate, infrastructures such as dams, water boreholes, power houses, irrigation systems, roads, bridges, offices, residential buildings, fuel stations, health and educational institutions by consulting and submitting a permit request to the relevant authorities and subject to the type and size of the investment project. Upon termination or expiry of the land lease agreement or the cancellation of the investment license, within 6 months, Mr. Daniel Fasil Bihon shall remove assets that are installed on the leased land in good order and hand over the leased land to the Ministry of Agriculture and Rural Development. When the land lease agreement is terminated by one of the parties, the Ministry of Agriculture and Rural Development shall pay ot Mr. Daniel Fasil Bihon the market value of improvements made to the land.
No mention of physical security or protection of property arrangements. The land lease agreement just includes a guarantees that Mr. Daniel Fasil Bihon has full ownership and property rights in the land leased and will have peaceful posession of it.
Mr. Daniel Fasil Bihon shall take good care of and conserve the leased land and natural resources on it. Mr. Daniel Fasil Bihon shall: (a) conserve trees that have not been cleared during the leased land preparation; (b) utilize various methods that are appropriate to prevent soil erosion especially in sloping areas; and (c) respect and implement legislation relating to natural resource conservation.
When dispute arises between the Ministry of Agriculture and Rural Development and Mr. Daniel Fasil Bihon in connection with or arising out of the land lease agreement, both parties shall endeavor and do their utmost efforts to resolve the dispute peacefully and to the benefit of both parties. If the dispute cannot be resolved accordingly as stated above, then it shall be referred to the Ethiopian Federal Court.
Mr. Daniel Fasil Bihon does not have the right to transfer the leased land to another company or individual unless 75% of the land is developed and the prior written consent of the Ministry of Agriculture and Rural Development has been obtained.
The land lease agreement may be terminated if: (i) the land lease agreement has expired; (ii) the Ministry of Agriculture and Rural Development is unable to deliver the land to Mr. Daniel Fasil Bihon due to a force majeure event; (iii) the Ministry of Agriculture fails to fulfill any of its obligations or covenants in the land lease agreement even after the expiry of 1 months prior written note from Mr. Daniel Fasil Bihon; (iv) Mr. Daniel Fasil Bihon fails to fulfil any of its rental obligations, to make annual rental and other tax payments for 2 consecutive years, to develop the leased land within the time limits stated in the land lease agreement, or damages the natural resources on the land and has been given 6 months prior notice of warning; and (v) the Ministry of Agriculture and Rural Development terminates the land lease agreement by giving 6-month’s prior written notice to such effect.
Upon the request of the Ministry of Agriculture and Rural Development, Mr. Daniel Fasil Bihon shall provide accurate data and report investment activities. The Ministry of Agriculture and Rural Development has the exclusive right to control and follow up that Mr. Daniel Fasil Bihon is executing all of the obligations diligently.