Transaction Structure

Undeveloped/unused farmland and Irrigation Capacity will be auctioned and the winning bidders will acquire the title to the land and the right to receive the service of collection, transport and distribution of water.

GRL has already transferred the unused farmland to a trust to facilitate the process. The trust shall transfer the land to the winning bidders.

The Concessionaire will be responsible for building the infrastructure for water collection, transport and distribution to the lots (Irrigation Capacity), as well as electricity transmission facilities.

Funds raised through the auction process will be held in a trust (the Land Trust) and will be used to pay the GRL for the land and to finance part of the infrastructure investment.

The Concession is based on Legislative Decree 994 (DL 994), which promotes value creation of State-owned undeveloped/unused farmlands as well as on the Legislative Decree 1012 (DL 1012), which promotes Public- Private Partnerships (PPP). The proposed PPP considers a self-sustained 25-year concession to build, own, operate and transfer (BOOT¹) the irrigation infrastructure which will create value on the unused farmlands currently owned by GRL.

Land transferred through the auction shall be owned by the respective winning bidder without any time limitation.

(1) Under a BOOT contract, a private sector company or organization agrees with a government agency to build, own and operate a piece of infrastructure, for example, a road, hospital, prison or water filtration plant. After a defined period of time the asset is transferred to the government agency.