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Several
governmental policies and laws related to
availability of commercial lands have been
established in the past years, creating the
appropriate legal framework to implement new
mechanisms for land leases. We refer principally
to the Private Sector Growth and Development
Policy, the Land Policy, the Policy for
Rehabilitation and Development of Agriculture
and Natural Resources Sector of Afghanistan, as
well as the recent Land Management Law.
The revised land management law
allows lease on government lands for
Up to 50 years
on cultivated lands, and Up to 90 years on arid
lands (water developement to be done).
Kundoz land lease
agreement, between the ministry of Agriculture,
Irrigation and Livestock (MAIL) and the SUMMIT
ASSOCIATES LTD on April 1, 2009 based on leasing
3 Hectares (Ha), equivalent to 15 Jeribs(jeb) of
land to this US investor, is a recent good
example of the land lease for commercial
purposes, and is an initial step toward the
enforcement and utilization of the revised land
lease law.
According to the
signed contract, the Parties agree to a lease
base fee of 2,625 USD per year and Ha. The base
fee of the lease for the property is equivalent
to 7,875 USD/year. The fee will be increased
10% every 5 years
The primary business of
the Summit Associates LTD
in Afghanistan is the production, distribution
and
commercialization of high quality dairy
products.
According to the
agreement, SUMMIT ASSOCIATES LTD will invest up
to US $ 3 MM, to establish a dairy product
facility, in Kundoz province. The land will be
used for the sole purpose of conducting
agro-processing of a) Fruits into juice, b)
Bottled Water and c) Fresh and dry milk into
yoghurt, cheesse, UHT milk (including aromated)
and other derivative products.
Prior to this,
an amount of
23.3
Ha was leased to the HABIB HASSAM LTD for the
comming 30 years, against AFs
3290
per year.
Land lease to
Bostan-e-Sabz, in Barikab area of Parwan
province, for the period of 30 years, against
5950
Afs/year/Ha.
is another fine example of land lease by the
Ministry of Agriculture.
Bostan-e-Sabz
reserves the largest leased piece of land, by
providing 120
Hectares (Ha), equivalent to 600 Jeribs(jeb) of
land for the agri-commercial investment. |