Investment Boss Gives Details of Multi-Million Deals

The Informer (Monrovia)

Kevin S. Tydehson

14 June 2011

The Chairman of National Investment Commission (NIC) O. Natty B. Davis has clarified government’s position on two major controversial agreements in Maryland County.

Addressing a press conference in Monrovia Monday at the offices of the Commission, Chairman Davies disclosed that the Cavalla Rubber Corporation and Maryland Oil Palm Plantation (MOPP) agreements were signed in January and March 2011 respectively.

Controversies have overshadowed the two agreements with some eminent citizens of the county criticizing the deals – claiming they were not in the interest of the people.

Most recently a demonstration by the employees of the Cavalla Rubber Company resulted to the death of at least one person and left several others wounded.

The NIC Chairman told journalists yesterday that there was nothing fishy about the agreements as they have been portrayed by some individuals, and that they were in the best interest of the local people and the country in general.

Mr. Davis disclosed that on behalf of the Executive Branch of Government, the agreements were negotiated and signed by members of the Inter-Ministerial Concession Committee (IMCC), which is comprises the NIC, and the Ministries of Justice, State, Finance, Planning and Economic Affairs, and Agriculture.

President Ellen Johnson Sirleaf has since reviewed the agreements, signed off on them and submitted them to the Legislature for ratification.

He said the companies will begin full operations after the agreement is agreed to by the National Legislature.

“When the IMCC, which the NIC chairs, negotiates agreements, we work to ensure that Liberia’s national interest is prioritized. We try to ensure that in exchange for the use of Liberia’s natural resources, the country benefits by receiving much needed capital, new technologies, training and domestic business development opportunities, and more,” the Chairman averred.

Speaking further, the NIC Chairman maintained that agreement with the Cavalla Rubber Corporation, for instance, will ensure the rehabilitation and development under a concession agreement, of a rubber plantation and rubber processing plant on 30,000 hectares of land in Maryland.

He said the agreement is valued at US$74m, and will help bring development in the Southeast Region of our country.

For the first ten years, according to the agreement, Chairman Davies said, Cavalla will invest US$35m United States Dollars and will also purchase rubber from Liberians with small rubber farms in Maryland County, which the company will assist in the rehabilitation and replanting.

Linking that to the Poverty Reduction Strategy (PRS), the NIC Boss stressed that, “this agreement with Cavalla is part of the deliberate policy announcement by the Liberian Government to revitalize the agriculture sector so that it can be a major contributor to the country’s economy.”

For the MOPP deal, the NIC boss said it is for the rehabilitation and development of an oil palm plantation and oil processing plant on 8,800 hectares of land in Maryland County.

The agreement, valued at US$64m, will also help with the economy in the Southeast Region of Liberia and equally provide for a small holder replanting and expansion program.

“Within the first three years, according to the agreement, the company will invest US$16 to establish and support small oil palm plantations owned by Liberians in Maryland and adjoining counties.

This concession will require the installation of oil processing plant which will be done in a nine year period and will be Maryland County’s first oil palm processing plant which will add value to the oil that will be exported from that area,” he maintained.

In conclusion, the NIC Chair revealed that plans are currently underway at the NIC to identify opportunities for the promotion and development of Liberian enterprises – a business linkage study has been conducted and we are examining opportunities for rolling out a pilot program.

“Our hope is to link the domestic private sector with the major concession companies so that they give source goods and services from qualified Liberian suppliers in terms of procurement.”

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