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US$ 155m Palm Oil Project in Uganda

A Palm oil project worth about $155 (about sh306b) is finally set to take off after the Government signed an agreement with a Kenyan Firm, BIDCO Oil Refineries Limited. Plantations will be set up in Kalangala and Bundibugyo districts.

The project, which was first mooted six years ago, will cover, 40,000 hectares. It is jointly funded by the International Fund for Agricultural Development (IFAD). IFAD will provide is injecting $19.9m, while the Government and the private sector will contribute $12.3m and $120m respectively.

The Minister of State in charge of general duties in the Ministry of Finance,Hon. Mwesigwa Rukutana, officiated at the signing ceremony, that was also attended by State Minister for Agriculture, Hon. Kibirige Sebunya on April 03, 2003.

Mr. Vimal Shah, Director of BIDCO, signed for his company. This project is expected to produce 200,000 metric tones palm oil annually. Hon. Rukutana pointed out that Uganda will save $40m per year on imports of vegetable oil.

Mr. Shah observed that his Company had waited for long, and would now expeditiously pursue the projects implementation.

About 10,000 small holder farmers in the districts of Kalangala, Bundibugyo, and areas around Lake Victoria will benefit from the project.

In addition to the establishment of plantation estates for palm oil, the community in Kalangala will benefit from the construction of a school, a dispensary, water resources and a 38 Km all weather road line. A nucleus palm oil plantation of 6,500 hectares will be started by BIDCO in Kalangala, while small holder farmers will open up 3,500 hectares totalling to 10,000 hectares. BIDCO and other partners will develop an additional 30,000 hectares and set up a processing refinery in Jinja.

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