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Overview
on Economic Land Concession in Cambodia
(November 2008)
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 agriculture 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 ago-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.
In August 2007, the Ministry of Agriculture, Forestry and Fisheries (MAFF) requests to the Royal government of Cambodia for contract cancelation of 37 companies with total land area of 332,240 ha located in 11 provinces. Furthermore, there are 53 companies with total land area of 845,920 ha while contract still remained validation.
Until November 2008, the total validated contract have been increased to 65 companies with total land area of 895,176 ha. This total land area would be cut down after conducting the detailed study in the concession area.
Economic Land Concession under 1,000 hectares
After enforcement of sub-degree on economic land concession on 27 December, 2005, 32 companies individually less than 1,000 ha have been granted by provincial authorities in 7 provinces as following:
- 20 companies in Kratie
- 2 companies in Preah Vihear
- 5 companies in Kompong Thom
- 1 company in Pursat
- 2 companies in Kompong Speu
- 1 company in Kompong Cham
- 1 company in Rattanakiri
Negotiation on reduction the area more than 10,000 hectares
The 9 economic land concession companies with land area of more than 10,000 ha are subjected to negotiate for reducing the area to 10,000 ha (According to Sub Degree No. 146 on Economic Land Concession).
In 2007, MAFF has negotiated with 5 ELC companies as a phase I, while 4 ELC companies have agreed on the reduction of their land area to 10,000 ha, and the remaining 1 company have canceled the contract. However, MAFF negotiated 4 companies in 2008.
At the present, MAFF has requested to cancel contract of 1 company and the remaining 3 companies are under monitoring their activities of implementation.
Review existing Economic Land Concession
From June to August 2008, MAFF has set 5 working groups for reviewing and evaluation exiting 35 economic land concession companies in 13 provinces.
The following are the result of screened 35 companies:
- 3 companies had been requested to cancel
- 2 companies has been warned
- 30 companies had been pushed to implement
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