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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
- 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.
- 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.
- 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.
- 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. |