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Mini Estates

The Office was established to coordinate NBPOL's dealings with traditional landowners who wish to utilise their customary land and enter into a joint venture with NBPOL for oil palm cultivation.

The Land Mobilisation Procedure

  1. Landowning clans, with assistance from NBPOL, register an Incorporated Land Group (ILG); with the Dept. of Lands & Physical Planning. The ILG has a Constitution, a Management Committee and a Disputes Settlement Authority.
     
  2. The area of land over which the ILG has usage rights is surveyed, assigned a portion number and the resulting plan registered with the DLPP.
     
  3. The ILG agrees to lease this registered portion to the State for an agreed time (perhaps 44 years). The State in turn then leases it back to the ILG as a Special Agricultural & Business lease for a similar period. This is known as the 'lease; lease back system'. The involvement of the State ensures some standardisation and monitoring of lease procedures between customary landowners and private enterprise.
     
  4. Under conditions within a formal Agreement, the ILG then sub-leases this portion of land to NBPOL who manages all aspects of development and ongoing harvesting & maintenance of the mini estate.

Benefits to the Landowners

Direct benefits to the ILG presently include:

  • Annual land rental payment of K50/planted ha paid quarterly in advance.
     
  • Monthly FFB royalty payments.
     
  • Free transfer of a quotient of NBPOL shares the number depending on planted area and term of lease.

Benefits to the Community, Province and PNG

  • Increase employment opportunities on the Estate.
     
  • Increased opportunities for small entrepreneurs and Contractors to supply services to the Estate.
     
  • Improved standards of Community Transport Infrastructure.
     
  • Creation of a broader Provincial tax base.
     
  • Greater overseas earnings.

Future Outlook

As at June 2007 NBPOL has 13 mini estates sub-leased from ILG's with a total of 11,812ha planted. It is planned to enter into agreement with a further seven Land Group over the next six years and with existing estates being fully planted a total planted area of 24,500 ha is the aim.

NBPOL
ISO 14001 Mini Estates

Steam Roller

phone: +675 985 2177
fax: +675 985 2178
email: info@nbpol.com.pg

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