K P Eswar, the Director of Corporate Affairs at Madhvani Group of Companies told URN Friday that the signing of the lease agreement now gives the company a go ahead to commence works on the land.
A sugarcane plantation at Atiak Sugar Factory in Atiak Subcunty in Amuru district. A similar project is expected to be rolled out mid this year by Madhvani group in Lakang Subcounty.
Madhvani Group of Companies, through the Amuru Sugar Works Ltd has finally signed a lease
agreement to kick start the establishment of a sugar processing plant in Amuru
district. The 49 years lease was
signed with the Uganda Lands Commission last week for 8,600 hectares of land,
part of the 10,000 hectares Madhvani requires for the project in Kololo Parish in
Lakang Sub-county.
For more than a decade the land, which was acquired by the government for the project had been idle leaving
leaders to question the government’s intention over its usage as migrant cattle
keepers turned it for grazing their cattle. K P Eswar, the Director of
Corporate Affairs at Madhvani Group of Companies told URN Friday that the
signing of the lease agreement now gives the company a go ahead to commence
works on the land.
Eswar noted that over the years,
they couldn’t start any project on the land since its ownership was with the
Uganda Lands Commission which had a title over the land. He said the Lands Ministry has
since given them the goa head to start works on the land as it processes a land
title for Madhvani Group of Companies.
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According to Eswar, Madhvani
which enjoys a 51 percent share in the project will start agricultural
operation on the land in the coming two weeks.
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Eswar noted that the project will
come with numerous employment opportunities for the locals in Amuru district
and lauded the leadership for their patience over the years.
According to the Uganda
Development Corporation, up to 9,000 direct job opportunities are expected to
be created once the sugar plant and sugarcane plantation is established in
Lakang Sub-county.
Michael Lakony, the Amuru District
Chairperson however cautioned local farmers and migrant cattle keepers
encroaching on the land to desist since works for its intended purpose is set
to commence.
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Lakony disclosed that Madhvani
group of companies’ officials are set to make a visit to the district next week
to inform the leadership of their scope of work before proceeding to the project
site. At the project site, according to him, a team of engineers will map out
the topography of the land, establish its exact boundaries and map out spots
for constructing their project offices.
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Amuru Resident District
Commissioner Geoffrey Osborn Oceng on Thursday ordered all those occupying the
land to vacate voluntarily as the project for establishing the sugar plantation
and sugar processing plant commences. Madhvani Group of Companies is however
seeking additional 10,000 hectares of land to bring to a total of 20,000 hectares
of land it requires for effective establishment of the Sugar project.
Data from the Uganda Development
Corporation shows that 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.
