Setting up an agroforestry plantation project with GECOTRA République démocratique du Congo
ENVIRONMENT 
FORESTRY 
TRANSVERSAL
Services: Diagnostics and feasibility studies
Countries: République démocratique du Congo
Dates of intervention: 2013/06 - 2013/07
Amount executed: 12 900 €
Total amount of the service: 12 900 €
Main backer: Banque africaine de développement - Client
Main beneficiary: Générale de commerce et de transport
Support provider: SalvaTerra
Experts: Olivier BOUYER, Jérôme MAURICE
Certificate of satisfactory executionCommon format for Project/Program Concept Note for the Use of Ressources from the FIP Competitive set-aside: Comunity acacia and palm oil plantations on degraded lands to reduce deforestation in the Bandundu Province
Context of the service
$50 million in concessional loans have been set aside by the Forest Investment Program (FIP) to finance private-sector-led REDD+ projects in the eight pilot countries, including the DRC. These projects had to be submitted to the FIP, with a view to their competitive selection. The AfDB called on SalvaTerra to help identify and structure projects in Ghana, Burkina Faso and DRC.
In the DRC, the selected project leader is GECOTRA SPRL, a company involved in the production, processing and marketing of oil palm products. The project involves planting 2,000 ha of acacia and 2,000 ha of oil palm on degraded land (Bandundu savannahs), managed in partnership with 2,000 local producers. The project budget is $10 million, including $3 million in concessional loans from the FIP.
Services provided
GECOTRA was quickly identified as a potential candidate to support the FIP, given (i) the reputation acquired by the company in the transport of goods by inland waterway, and (ii) the technical capabilities of the company that already manages 1,000 ha of palm plantations in the project area. Documents relating to its activity and the domestic palm oil market.
After that, the note was drafted, with two distinct parts:
- Compliance with FIP investment criteria: carbon sequestration potential, replication potential, cost/benefit ratio in USD/CO2 teq, technical feasibility, environmental and social co-benefits, compliance with AfDB and FIP safeguard clauses);
- Practical engagement modalities: description of activities and their innovative character, palm oil market study, business plan and cash flow plan, potential risks and mitigation measures.
The project idea note was rated as good and ranked 5th out of the 11 project idea notes submitted.
Summary of the service
Preparation and competitive selection of the project (5th out of 11 projects presented) submitted to the private window of the Forest Investment Program (PIF): agroforestry plantation of oil palms and legumes on 4,000 ha in the Province of Bandundu in DRC. Budget: $10 million. Holder: GECOTRA company.