3. Government
• Role: insure good governance through an “OversightCo”. OversightCo, owned by a foundation and the bank financing the project, will have a board of senior officials from government and civil society. OversightCo will issue a license to the OperateCo (or the FarmerCo) to operate the farm on their respective concession, and can replace the operator for cause. OversightCo’s governance responsibilities include the monitoring of the performance of both the OperateCos and their AG Sponsors, provision of safety nets and training programs for the vulnerable (e.g. elderly), providing a supplementary platform for the farmer’s voice is heard, etc.
• Benefits and incentives:
put to productive use lands that otherwise would have produced minimum returns;
address the local substance abuse problem through guaranteed employment, increased income and rehabilitation of drug users (as part of CSR programs of the OperateCos);
keep the lease option while incentivizing the farmers and AG Sponsor to invest in the long term productivity of the land;
higher income for a large number of farmers.