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Overview
on Economic Land Concession in Cambodia
(September 2007)
In 1992, the situation of national economy of Cambodia was transferred from the Planning to Free Market basis. The Royal Government of Cambodia has opened for both local and foreign private investment in agricultural sector. In this sector, the Royal Government of Cambodia focuses on the investment in Economic Land Concession for agro-industrial plantation. The major goal of this opening is to provide free (non-use) land for agricultural and agro-industrial plantation, and processing for export, which is expected by the government to create the jobs and generate income for the people living in the rural area.
Since 1992 until 31 August 2007, the investment under economic land concession, the Royal Government of Cambodia has signed 90 contracts with private companies while covering 1,178,160 hectares located in 16 provinces and municipalities of the Kingdom of Cambodia. But due to some companies are inactive and not follow the contracts, Ministry of Agriculture, Forestry and Fisheries proposed to the Royal of Government to cancel 37 contracts located in 11 provinces, while covered 332,240 hectares. Therefore, only 53 companies signed contracts and actives, while covering 845,920 hectares. In this 53 companies there are 8 companies holding the area more than 10,000 hectares. All these active 53 companies are registered in the log book.
Economic Land Concession under 1,000 hectares
After enforcement of sub-decree on economic land concession on 27 December 2005, 23 companies that individually less than 1,000 hectares have been granted by the provincial authority in 7 provinces as the following:
- Kratie 2 companies;
- Stung Treng 1 company;
- Kampong Speu 3 companies;
- Uddor Meanchey 5 companies;
- Rattanakiri 4 companies;
- Kampong Thom 6 companies;
- Kampong Cham 2 companies.
The detail information of these economic land concession will be posted when it available. These companies will be registered into log book in the near future.
Negotiation on reduction the area more than 10,000 hectares
In the first step only 5 companies will be negotiated by Ministry of Agriculture, Forestry and Fisheries, in this number there are 2 companies have been negotiated and the result as the following:
- Men Sarun Friendship and Khmer Rama that signed contract on December 1999 in Rattanakiri, which is agreed reduce from 13,000 to 10,000 hectares;
- Cambo Victor Investing and Developing Co., Ltd that signed contract on August 2001 in Kampong Speu, while covered 26,550 hectares. In result, the whole contract have canceled.
The remaining 3 companies are under negotiation.
Review Existing Economic Land Concession
Since May 2007, the Ministry of Agriculture, Forestry and Fisheries setting-up 5 working groups for reviewing and evaluation existing economic land concession in all 16 provinces. The result of the mission as the following:
- 15 Companies have been reminded and guided for following the agreed master plan;
- 1 Company have been guided for changing location;
- 7 Companies have canceled contracts.
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