BANGA ASSAM Honorine E. & Associates advises SUN SHINE on proposed settlement terms with NOFELD FORESTIÈRE

BANGA ASSAM Honorine E. & Associates advised SUN SHINE on the structuring and presentation of proposed settlement terms submitted to NOFELD FORESTIÈRE, following the unilateral termination of a technical and financial assistance agreement by NOFELD FORESTIÈRE. As part of its claim for damages, SUN SHINE has formally requested compensation of XAF 500 million.

In the interest of resolving the dispute amicably, SUN SHINE has proposed an alternative compensation structure whereby, in lieu of monetary damages, the company would be permitted to exploit timber from the forest management unit (UFA) at the heart of the dispute, under a set of mutually agreed technical and operational conditions.

The proposal includes:

• Annual access to 50% of the exploitable area within the UFA.

• Full disclosure of all secured documentation regarding timber potential.

• Joint financing (50/50) of the annual renewal procedures.

• Individual responsibility for village royalties and social contributions, respective to each party’s operations.

• Independent payment of felling taxes, according to each party’s production.

• Separate liability for any infractions or penalties incurred during exploitation.

• An estimated recovery period of five years for SUN SHINE to recoup its investments.

• Execution of a final settlement agreement, to be fully funded and facilitated by NOFELD FORESTIÈRE.

This structured proposal also factors in the economic value of timber already extracted from the UFA by NOFELD FORESTIÈRE and its contracting partners, including OTONGO ADA SARL, S.A.B.T.P.F SARL, and ETTA AFRIC WOOD SARL.

“This proposed framework reflects SUN SHINE’s commitment to a balanced resolution that protects its interests while ensuring operational continuity,” said Me BANGA ASSAM Honorine Elisabeth, lead counsel on the matter.