The Independent Uganda: You get the Truth we Pay the Price
Amuru, Uganda | THE INDEPENDENT | Madhvani Group of companies has shown interest in acquiring additional 10,000 acres of land in Kololo Parish, Lakang Sub-County in Amuru district for the establishment of a sugar factory plant through the Amuru Sugar Works Ltd.
The move was revealed by Amuru district leaders who held a meeting with the top executives of the Madhvani group of Companies at Kakira Sugar Factory plant in Jinja city last week.
The meeting followed concerns by the leaders over the delayed establishment of the sugar factory in Lakang Sub-county where the government in partnership with Madhvani Group of Companies had already acquired 8,600 hectares of land.
Both the government and the Madhvani group of companies entered into a joint venture agreement to establish a sugarcane processing facility in Lakang sub-county targeting the creation of 9,000 direct job opportunities and boosting sugar export potential.
Amuru Resident District Commissioner Geoffrey Osborn Oceng told Uganda Radio Network in an interview Monday that the request for the additional land is to enable sugarcane out growers to be incorporated within the project.
According to the Uganda Development Corporation, the Amuru Sugar Works project targets the off-take of sugarcane for at least 3,000 out-growers within Lakang Sub-county.
Oceng says the potential landowners have already been identified adding that processes of conducting verification will be held before their lists are submitted to the lands ministry for compensation to avoid fraud.
Amuru District Chairperson Michael Lakony noted that as district leaders, they have no objection to the request for more land by the Madhvani Group of Companies as long as the acquisition will be transparent and the landowners get compensation.
Lakony said the local government staff from the lands department have already identified the location of the 10,000 hectares of land in Kololo parish and will soon start holding engagements with the landowners.
K P Eswar, the Director of Corporate Affairs at Madhvani Group of Companies told URN that the request for more land seeks to suit the viability of the factory given its proposed size. He says initially, the Group requested 20,000 hectares of land out of which only 10,000 hectares was granted by the government.
“This is not a new request, we need 20,000 hectares as nucleus estate and 10,000 hectares for out growers on a commercial basis,” says Eswar.
Why was the project delayed?
Eswar acknowledged that the delayed issuance of titles by the government has stalled the Group’s move to commence works.
“The lease has not been received yet. After the lease is received and signed by us we need to get the titles as well. The delay is on the titles,” he said.
Uganda Radio Network understands that the government has already completed the compensation of landowners and obtained land title for the 8,600 hectares of land out of the intended 10,000 hectares in the name of the Uganda Land Commission.
Prof Jack Nyeko Pen-Mogi, the Chairperson of Uganda Lands Commission told Uganda Radio Network Tuesday that the process of handing Madhvani a lease offer was in the pipeline and suggested it would be completed by the end of this week.
Prof Pen-Mogi noted work on the establishment of the sugar processing plant is expected to commence immediately after the government hands over the lease offer title to the Madhvani Group of Companies.
He noted that the government is also processing the compensation for landowners on the remaining 1,400 hectares of land already identified before securing its title.
Prof Pen-Mogi however noted that it’s pointless for Madhvani to start seeking more land before even commencing works on the 10,000 hectares that they will be getting from the government.
“First of all, we want them to get this land, we want them to get the 10,000 hectares then they should start work and maybe they can start looking for more land if they want more land. There’s no point in jumping from one point to another, once they have started work, it becomes easy for them to get additional land,” says Prof Pen-Mogi.
According to data from the Uganda Development Corporation, the Amuru Sugar Works project will require funding estimated between 125 million US Dollars to 150 million US Dollars for the first two phases, which will gradually increase to around 225 million US Dollars to 250 million US Dollars at full expansion capacity.
*****
URN
