Govt gives green light for two eucalyptus operators
Govt gives green light for two eucalyptus operators
The government has given approval for Boualapha Agro-Forestry Co., Ltd and Stora Enso Lao Co., Ltd to continue their eucalyptus plantations and provide employment for local people.
The announcement was issued on March 22, 2016 by the Government Office to the ministries, provincial and relevant organisations.
As the government has permitted inve stment for eucalyptus plantations since 1990, this statement does not conflict with the Prime Minister's Order No 13/PM, dated 11/06/2012 on the suspension of approval of new mining prospecting and exploration or rubber and eucalyptus plantation concession projects in the Lao PDR.
The investment by the companies should operate on a 2+3 system where farmers provide the labour and the land while the companies supply the saplings, technical assistance and marketing without large land concessions from the government.
The new areas of the Boulapha company for the promotion of eucalyptus includes more than 3,000 hectares in Hinheup district, Vientiane province.
The new areas in the province were studied by the company in cooperation with local authorities and the areas do not impact on conservation forest.
The Ministry of Agriculture and Forestry, on behalf of the government, should be responsible in studying plantation areas, and deciding which areas are suitable and which are not, in order to avoid environmental impacts, according to the announcement.
The ministry shall also follow the agreement document between the land owners and the company to ensure there are no conflicts between the different parties.
The Boualapha company has already planted some areas of eucalyptus in Hinheup district and some other districts of the province.
Meanwhile Swedish-Finish Stora Enso Lao Co., Ltd (SEL) is one of the investors operating eucalyptus plantations in Saravan and Savan nakhet provinces.
The first plantations were established in Nong district, Savannakhet province, in 2007 and in Ta-oy district, Saravan province, in 2008.
SEL has applied to the government for a total land concession of 35,000 hectares but the company has currently planted more than 2,000 hectares in the two provinces.
Every hectare of land concession has benefited villagers and local authorities due to the participation of the community with the company.
The company pays US$350 annually into a village development fund to cover the le asing period, which is normally 50 years.
With the fund, village authorities are able to develop local requirements such as road improvements, electricity and clean water systems with the agreement of the district governor.
Villagers have also benefited from planting rice for three years between the rows of the plantation trees and in fallow years other farming such as cattle grazing, rattan and cassava, which covers 70 percent of the land.
To promote rice and other crops, the company has supplied funds to buy the seeds and farmers have no need to slash and clear the land for planting.
People have also received income for their labour in planting, weeding and fertilising the trees. Cooperation between the villagers and the company has helped to decrease shifting cultivation without des troying forestry.
The company has also invested a considerable sum in UXO clearance, which has provided staff and farmers with safe working conditions.
