Private firms control 1.8 mln hectares of economic land concessions in Cambodia: officials

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Photo: firstpeoples.org
Xinhua News Agency | 21 January 2015

Private firms control 1.8 mln hectares of economic land concessions in Cambodia: officials

PHNOM PENH, Jan. 21 (Xinhua) -- Some 228 companies are currently possessing about 1.8 million hectares of economic land concessions (ELCs) in Cambodia after the government has cancelled ELC licenses for 94 firms with 747,682 hectares in recent years, senior officials said.

Two ministries are authorized to either grant ELC licenses to or revoke licenses from companies if they fail to develop the land for years. The ministries are the agriculture ministry and the environment ministry. "To date, 115 companies are holding up to 1.2 million hectares of ELCs issued by the agriculture ministry after the ministry has seized back 657,000 hectares from 71 companies in the last six years," agriculture ministry undersecretary of state Eang Sophalleth told a press conference Wednesday.

He said the cancellation of licenses from the 71 companies was due to those firms that failed to comply with the contracts signed with the agriculture ministry.

Early this month, environment minister Say Samal said currently, 113 companies are possessing about 600,000 hectares of ELCs issued by the environment ministry after the ministry has revoked licenses from 23 companies with the land of 90,682 hectares.

The government awarded ELCs to investors in order to develop agricultural projects such as plantations, raising animals and building factories to process agricultural products, and companies could possess ELCs up to 99 years.

In May 2012, Prime Minister Hun Sen ordered a temporary halt to granting ELCs to new firms with an aim of strengthening the effective management of existing ELCs.
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