Executive Summary
The Solomon Islands Palm Oil Development Enterprise Limited (SIPODEL) will start up the development of 4,000 hectares of the oil Palm plantations in Auluta Basin in the Malaita Province, to export crude Palm oil, palm kernel oil to the European Markets and the United States of America as they are the huge buyers of these products. Palm Oil products is of very high demand globally due to the so many edible products and many pharmacy products can be processed out of palm [login to view URL] Company will export 28,000 metric tons of palm oil annually over twenty six years of economical production period. The initial capital input for the project will cost USD 20,000,000 to complete the development of 4,000 hectares within four years. The expected revenue for palm oil products will be USD 28,000,000 per annum over the next twenty six years of investment [login to view URL], Oil palm comes into maturity to harvest the fruits two and half (2½) years after planting. During the operation, land owning groups will sell their forest timber to the company. It is expected that 34,000 cubic metres@34m³ per hectare of tropical hardwood timber will be harvested in every 1000 hectares of forest clearing for palm oil planting. The average revenue for timber per annum will be USD 8,500,000 @ USD 250/ m³. The Company is the only second registered firm besides the Guadalcanal plains Palm Oil Limited (GPPOL) .There is an advantage of the company because it will expand its operation in other four Provinces while the GPPOL continue its operation mainly in Guadalcanal Province. Finally, SIPODEL will be contracted by the Solomon Islands Government to implement the National Oil Palm smallholders Development work plan in Malaita and Choiseul Provinces. The company will be hired by the Government to startup smallholders’ plantations known as the village Oil Palm Scheme. The Contracted package per annum is USD 500,000. Hence, the loan repayment will be possible from the export of tropical timber and palm to overseas Markets in Europe, China ,Middle East and USA.