Hon. Dr. Joseph Sam Sesay, Minister of Agriculture, Forestry and Food Security
Hon. Mr. Osman Boie Kamara, Minister of Trade and Industry
Hon. Dr. Keifala Marrah, Minister of Finance and Economic Development
Complant Magbass Sugar Complex shall conduct environment and social assessment of the business activities when necessary according to the relevant law of Sierra Leone
The government agrees to enter into a water rights agreement with Complant Magbass Sugar Complex. Water shall be charged at a fixed amount of 50,000,000 Leones per year of water extracted from rivers and other water courses. There shall be no restriction in the volume of water extracted by Complant Magbass Sugar Complex from rivers, other watercourses, wells and boreholes.
All plants, equipments and machinery shall be imported free of any duty and taxes (except for ECOWAS levy currently at 0.5% of CIF value) for any 5 years selected by Complant Magbass Sugar Complex. Importation of all agricultural inputs shall not be subject to import duty for a period of 5 years from the date of commencement of business. Agricultural inputs include fertilizers, pesticides, insecticides, seeds and seedlings, hybrid tree seeds, seed animal for feeding purpose, day-old-chicks and animal semen. Importation of feeds, vaccine and veterinary drugs for livestock and poultry shall attract import duty free concessions for a period of 5 years from the date of commencement of business.
Complant Magbass Sugar Complex shall establish a Development Foundation and commit Le150,000,000 every year to fulfill its corporate social responsibilities. The trustees of the Foundation shall include 2 nominees from Complant Magbass Sugar Complex and 3 nominees from the government to include landowners. The trustees would have sole responsibility for the grants of the Foundation but would respond to proposals and requests from communities within the area where Complant Magbass Sugar Complex is operating. Each disbursement will be agreed with a local committee representing the areas from which the application comes from. The funds will be applied to promote corporate social responsibilities, including: (a) an outgrowers scheme (including support to farmers in the form of improved inputs, agricultural machinery, irrigation and processing facilities, and marketing opportunities); (b) social infrastructure (including construction/rehabilitation of educational, health, water and sanitation, recreational facilities, etc.); (c) employment opportunities (including at management, middle cadre and junior staff levels); and (d) training facilities.
The chargeable business income of agricultural activities shall be exempt from corporation tax for 10 years. This includes all activities such as rice farming, tree crop farming such as cocoa, coffee, rubber, and palm oil etc. from the date of commencement of this agreement.
50% of dividends paid during the qualifying period will be exempt from withholding and other taxes.
5% of total income derived from export sales will be exempt from corporation tax after the qualifying period.
All fixed assets shall be subject to capital allowance up to 40% as provided for in the Income Tax Act 2000 (as amended). An additional 5% investment allowance will be given on the procurement of any new qualifying asset and investment in each year of assessment.
The following allowable deductions shall be granted in respect of the following expenses in any year of assessment:
(a) research and development cost - 100%;
(b) training expenses and local staff - 100%;
(c) social and development expenses - 100%;
(d) expenses on promoting exports - 100%; and
(e) expenses incurred in engaging disable persons including salaries - 200%
The government supports the development of small farmer production and nucleus / outgrower schemes.
The funds will be applied to support farmers in the form of improved inputs, agricultural machinery, irrigation and processing facilities, marketing, opportunities, fertilizers, etc.
Complant Magbass Sugar Complex shall conduct environment and social assessment of the business activities when necessary according to the relevant law of Sierra Leone
The government confirms that Complant Magbass Sugar Complex will be granted all the required permits and other authorizations for the project and its funding, provided that Complant Magbass Sugar Complex complies with all published requirements of the Laws of the Republic of Sierra Leone in relation to such permits or authorizations.
The government undertakes that if Complant Magbass Sugar Complex (or any other person taking part or participating in Complant Magbass Sugar Company or its funding), at any time, is required to object any further permit or other authorization in connection with itself, its activities or Complant Magbass Sugar Complex or its funding, it shall take all necessary steps to ensure such permit or other authorization is issued forthwith provided that Complant Magbass Sugar Complex or, as the case may be, such other person complies with all published requirements of the laws of the Republic of Sierra Leone in relation to such permits or authorizations.
All disputes shall be referred to and resolved by arbitration in London before three arbitrators under the Rules of Arbitration of the International Chamber of Commerce (ICC) from time to time in force. Complant Magbass Sugar Complex and the government may not appeal to any court on a question of law arising out of an award in the arbitration. Complant Magbass Sugar Complex and the government irrevocably waive any rights of appeal they might otherwise have had. The arbitration award shall be final and binding on Complant Magbass Sugar Complex and the government or anyone claiming through or under them.
The government agrees that it will not nationalize, expropriate or confiscate all or any part of the assets or rights of Complant Magbass Sugar Complex, its subcontractors or other respective contractors or any other party to the documents relevant to the project other than on the basis of full compensation (including loss of profit) to the affected parties.
The government also agrees that it will not nationalize, expropriate or confiscate all or any part of the share capital of Complant Magbass Sugar Complex other than on the basis of full compensation (including loss of profit) to the affected parties.
The government acknowledges that the execution, performance and delivery by Complant Magbass Sugar Complex or the government of this contract shall constitute a private commercial transaction entered into entirely in Complant Magbass Sugar Complex's, or the government's, commercial capacity.
The government agrees that if any other party brings legal proceedings against it or its assets in relation to this contract, it will not claim immunity from such legal proceedings other than in respect of government buildings located in Sierra Leone or buildings forming part of a diplomatic or consular mission except to the extent necessary to effect service of legal process.
If any change of law in Sierra Leone has a material adverse effect on the ability of Complant Magbass Sugar Complex or its contractors, sub-contractors, shareholders or funders to perform their respective obligations relevant to the development, operation or funding of the project or the cost of, or return from, so doing, the government undertakes, after taking into account the benefits of the change in law, to grant to the project and the above actors any exemption or license or other authorization necessary or desirable to ensure that their interests, rights, obligations and economic return are not materially adversely affected