9 April 2008
Weeks following the pronouncement of several western countries that they may not export rice, Liberia's staple food in to the country, a Liberian company, the Foundation For African Development Aid Commercial (ADA) has signed a US$30 million Concession Agreement for the production of rice.
The agreement, the first its kind in the country's agriculture history, was signed over the weekend and brought together representatives of the government including Agriculture Minister Dr. Chris Toe, National Investment Commission Chairman, Richard Tolbert, and Deputy Finance Minister for Administration, Tarnue Mawolo.
Others include Justice Minister, Cllr. Philip A.Z. Banks, and ADA President and Executive Officer, Amb. Windell McIntosh.
The Agreement is subject to revision and ratification by the National Legislature and prior to its full implementation, will bridge the gap between produced and imported rice.
Speaking at the signing ceremony recently in the conference room of the Agriculture Ministry, government representatives say the agreement is a boost the Liberianization Policy in that a Liberian owned company is to invest in the rice production. They described it as a value added initiative to the country's growth and development.
Minister Toe said in last year, Liberia spent US$100 million on the importation of rice, stressing that the new concession agreement will eventually help to reduce the huge amount of money being spent for the importation of the nation's staple food.
According to some of the government representatives, the ADA's initiative will provide positive influence on the nation's economic activities. They maintained that it is an added advantage to the country's security, noting that shortage of rice on the Liberian market has the propensity to create insecurity for the government and its citizenry.
Speaking at the signing ceremony, Ambassador Windell McIntosh, of the ADA said the US$30 million investment is a 10-year private sector loan investment and emphasized that is a huge step towards making Liberia self sufficient in food production.
According to the ADA Executive, his entity is in partnership with the Libyan Investment Portfolio (LIP) in Libya to embark upon Mechanized Rice Production, to minimize Liberia's dependence on food importation especially rice.
The duration of the Agreement is 20 years, and is renewable provided the terms and conditions are enhanced n five years before it is expired.
It is stated in the Agreement that housing facilities, education, public welfare amenities including medical, electricity, water and recreational facilities will be provided for the workers and their dependents. It is also agreed that local farmers will benefit from what they termed 'an out grower' scheme.
It may be recalled that some three years ago, ADA and the Liberian government entered into a memorandum of understanding for the production of Swamp Rice in Foya, Lofa County and Kpatawee and Gbeiden in Bong and Nimba Counties, with the right for the former to use 60,000 hectors of land.
Under the new Concession Agreement, government has cut down the capacities of the company, giving it 15,000 hectors of land for operation. Apart from that, the government has sliced down the number of farms the company operated based on the MOU.
The government has only given the company the right to operate Foya and Gbeiden, while Kpatawee was given to a Chinese company.
It is not known while the government took the decision of slicing down the number of farms it previously allowed ADA to operate, but this paper has learnt that several ex-combatants who are working on the farm under the sponsorship of ADA may lose their jobs if the farm is given to another company.
This paper also gathered that the ex-combatants are not happy with the decision of the government because "they are satisfied with the ADA operating the farm." Some Kpatawee citizens who spoke to this paper also expressed disappointment with government's decision and want the Kpatawee project to be given back to ADA.
According to them, the company has helped them and continues to help them.
In angry tones, the Kpatawee citizens described the action of government as a 'crackdown' on the country's investment program, alleging that it has propensity to scare Liberians from investing in their country.
A credible source told this paper that the Minister of Justice, Cllr. Philip A.Z. Banks, NIC boss, Richard Tolbert and Agriculture Minister Chris Toe are presently in Malaysia making arrangements for a Malaysian company to take over the Kpatawee project. If this is true, the ADA stands to lose, observers say.
All of this is happening at the time President Ellen Johnson Sirleaf is out of the country. But there are indications that she is not aware of this. Accordingly, Bong citizens are therefore calling on the president to allow the Concession Agreement not to sail through and that she should see reasons to give the Kpatawee Project back to ADA. Investigation continues.
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