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Laws and Regulations

Request to Examine and Re-consider
the Principle for Collecting Concession Land Rental Fee

Unofficial translation

Kingdom of Cambodia
Nation-Religion-King

Ministry of Agriculture, Forestry and Fisheries
No. 0206 MAFF

Phnom Penh, 13 January 1998

Minister of Agriculture, Forestry and Fisheries

To

H.E. First Prime Minister and Samdech Second Prime Minister

 

Subject: Request to examine and re-consider the principle for collecting concession land rental fee.

References and attachment:

• Letter No. 1018 dated 25 November 1997 of the Office of the Council of Ministers……………… 1 copy.
• Principle for evaluating the concession land rental fee …….. 1 copy.

With reference to the above-mentioned subject, reference and attachment, I have the honor to inform Your Excellency First Prime Minister and Samdech Second Prime Minister that with the aim to:

• Encourage investment in agricultural sector,
• Create the job for rural farmers,
• Create investment fund and technology as the state is faced to shortage, and
• Reduce the flow of displacement from rural areas to urban by rural people,

The MAFF would like to request the following principles:

I. Procedure for evaluating the land rental fee

1) The evaluation shall count on the quality of soil that were classified into 4 types (Attached as Annex) and to fix the fee per hectare and per year and to provide the encouragement by reducing the fee in accordance to the agriculture potential classification and remarks of soil groups as described in the Annex 1 and Annex 2 of the Principle for evaluating the concession land rental fee attached herewith.

 Therefore, the concession land rental fee shall be as follows:

• Soil No. 1 : 10$ to 5$/ha/year
• Soil No. 2 : 6$ to 3$/ha/year
• Soil No. 3 : 4$ to 2$/ha/year
• Soil No. 4 : 0$/ha/year (threadbare or deteriorated soil)

II. The start for rental fee collection

The collection of rental fee shall be calculated based on the total area delivered to the company for doing business counting in accordance to the kind of crop and starting from the third year of the products collected.

For example:

• Seasoning crop or yearly crop: rice or tapioca, etc. the fee shall be calculated on the third year of production of the total concession area.
• Long-term crop such as rubber, it should be wait until the seventh year that they can collect the production. Therefore the fee shall be calculated from the 9^th year on the total concession area.

III. Competent authority to evaluate the rental fee and to fix the date for starting the collection to be formulated in the concession land investment contract.

The MAFF is the competent authority to evaluate the rental fee and to fix the date for starting the collection based upon the basis and formula and other conditions of the above-mentioned principles for evaluating the concession land rental fee and the technical group to evaluate the quality of soil to be formulated in the investment contract. The sum collected from the concession land rental fee shall be paid to the state budget.

As above-reported, I would therefore like to request Your Excellency First Prime Minister and Samdech Second Prime Minister to please examine and have appropriate decision accordingly.

Respectfully Yours,

TAO SENG HOUR

CC:

- Office of the First Prime Minister

- Office of the Samdech Second Prime Minister

- Ministry of Economy and Finance

- Council for the Development of Cambodia

- File-Documentation