Bagamoyo
residents have welcomed the recently launched multibillion sugar
project, saying it will transform their lives and boost development in
the region.
The Bagamoyo Ecoenergy Limited (BEE), a subsidiary of the Sweden-based EcoEnergy Africa AB plans to undertake the $500 million (Sh800 billion) project that would also increase national sugar production.
Within three years operations, the project is estimated to annually provide the domestic market with 130, 000 tonnes of sugar, 100,000 MWh to the national and 10 million liters of ethanol.
Last month the early works of the project which include preparation of nursery cane land, expansion of the out grower programme and preparation for initiating resettlement were launched.
Other early works are de-silting of a dam for pastoralists, land clearing for bulk water canal, main haulage road and clearing of project area boundaries.
Several villagers who talked during the launch of the early works praised the progress made b y the company.
Shukuru Mbatto, the Chairman, Bagamoyo District Council, said local residents have agreed to work together with the investors and tap the benefits that come along with the massive investment.
He said the villagers were ready to settle differences, some of which are in the court of law. “Let me assure you that we will amicably end the problems that have existed between the investor and the villager” he said, adding that the latter have realized the benefits of the project.
The Bagamoyo Member of Parliament, Shukuru Kawambwa allayed fears that residents would not be fairly compensated and that the government did not care about them.
Kawambwa who is also the minister for Education and Vocational Training assured the company of the government’s commitment to increase investment in the country and would offer prompt assistance should the need arise.
He praised the company on the progress made so far towards modern cultivation of sugar cane which will see increased sugar production, electricity and ethanol for running vehicles.
“We are happy with the progress we have witnessed on the ground,” he said during the launch of early works.
It is envisaged that 150,000 tonnes of sugar will be produced annually after the start of production in 2014.
Also expected will be the production of 30 megawatts of electricity and ethanol that can be used in operating vehicles.
Of the 30MW, 15MW will be used by EcoEnergy while the remaining power will be used by the surrounding communities.
Minister for Agriculture and Food Cooperative, Christopher Chiza who officiated the event said the government will continue supporting such promising investments in the country for the benefit of both parties.
Citing EcoEnergy as an example, he said once production starts it will greatly help meet the country’s demand for sugar which has the capacity of producing only 60 per cent and imports the rest.
He said the government works to ensure that it attracts investments in sugar and rice plantations because the availability of the two agricultural produce in the country will also help stabilize the economy. “We will help promote and facilitate good investors in agriculture in a win-win situation,” he said.
The investment expects to benefit over 300 farmers who will be contracted to cultivate and eventually sell their produce to the company.
The Executive Chairman of the company Per Carstedt said his company was serious in undertaking large scale sugarcane irrigation farming in Tanzania for local and international markets.
“This will help reduce importation rate for things such as sugar and oil,” he said, adding that it will be a major contribution to the economy.
In 2006 the company signed Memoranda of Understanding (MoU) with the Government of Tanzania (GoT) to cooperate in the development of the country’s agribusiness sector.
The project will include the establishment of a greenfield sugar cane plantation of approximately 7,800 hectares (ha) with an additional approximately 3,000 ha by independent sugar cane plantations (out growers)
This sugar project is structured in order to maximize sugar and power production and will, out of the by products from the sugar production, molasses, produce ethanol.
All sugar, power and ethanol produced is primarily geared towards the domestic market that is showing a big and growing shortage of all three end products.
The sugar cane plantations are developed to take advantage of the most modern advances in the agriculture methods: advanced irrigation systems, modern technology and the best available cane varieties.
Sugar cane yields are projected to be between 90 and 110 tonnes per Hectare - long time average.
EcoEnergy has operated a farm of 200 ha with advanced sub surface drip irrigation in a neighbouring area to the commercial farm since 2007 achieving good cane yields.
At full operations, the project will process approximately
1million tonnes of sugar cane annually and produce 125,000 tonnes of sugar for the domestic market; deliver 100,000 megawatt hours (MWh) of power to the national grid and produce 8 million litres of fuel Ethanol for the domestic market.
The project is in line with Tanzanian agricultural and rural development initiatives. Only 6,000,000 ha of the total 45,000,000 ha of potentially arable land in Tanzania are currently farmed and 70 percent of the famed land is hand hoed.
The project incorporates a comprehensive Out Grower and Community Development Program that should result in a rapid build up of production capacity by the out growers over a four-year period from when the local process industry is in place.
The Bagamoyo Ecoenergy Limited (BEE), a subsidiary of the Sweden-based EcoEnergy Africa AB plans to undertake the $500 million (Sh800 billion) project that would also increase national sugar production.
Within three years operations, the project is estimated to annually provide the domestic market with 130, 000 tonnes of sugar, 100,000 MWh to the national and 10 million liters of ethanol.
Last month the early works of the project which include preparation of nursery cane land, expansion of the out grower programme and preparation for initiating resettlement were launched.
Other early works are de-silting of a dam for pastoralists, land clearing for bulk water canal, main haulage road and clearing of project area boundaries.
Several villagers who talked during the launch of the early works praised the progress made b y the company.
Shukuru Mbatto, the Chairman, Bagamoyo District Council, said local residents have agreed to work together with the investors and tap the benefits that come along with the massive investment.
He said the villagers were ready to settle differences, some of which are in the court of law. “Let me assure you that we will amicably end the problems that have existed between the investor and the villager” he said, adding that the latter have realized the benefits of the project.
The Bagamoyo Member of Parliament, Shukuru Kawambwa allayed fears that residents would not be fairly compensated and that the government did not care about them.
Kawambwa who is also the minister for Education and Vocational Training assured the company of the government’s commitment to increase investment in the country and would offer prompt assistance should the need arise.
He praised the company on the progress made so far towards modern cultivation of sugar cane which will see increased sugar production, electricity and ethanol for running vehicles.
“We are happy with the progress we have witnessed on the ground,” he said during the launch of early works.
It is envisaged that 150,000 tonnes of sugar will be produced annually after the start of production in 2014.
Also expected will be the production of 30 megawatts of electricity and ethanol that can be used in operating vehicles.
Of the 30MW, 15MW will be used by EcoEnergy while the remaining power will be used by the surrounding communities.
Minister for Agriculture and Food Cooperative, Christopher Chiza who officiated the event said the government will continue supporting such promising investments in the country for the benefit of both parties.
Citing EcoEnergy as an example, he said once production starts it will greatly help meet the country’s demand for sugar which has the capacity of producing only 60 per cent and imports the rest.
He said the government works to ensure that it attracts investments in sugar and rice plantations because the availability of the two agricultural produce in the country will also help stabilize the economy. “We will help promote and facilitate good investors in agriculture in a win-win situation,” he said.
The investment expects to benefit over 300 farmers who will be contracted to cultivate and eventually sell their produce to the company.
The Executive Chairman of the company Per Carstedt said his company was serious in undertaking large scale sugarcane irrigation farming in Tanzania for local and international markets.
“This will help reduce importation rate for things such as sugar and oil,” he said, adding that it will be a major contribution to the economy.
In 2006 the company signed Memoranda of Understanding (MoU) with the Government of Tanzania (GoT) to cooperate in the development of the country’s agribusiness sector.
The project will include the establishment of a greenfield sugar cane plantation of approximately 7,800 hectares (ha) with an additional approximately 3,000 ha by independent sugar cane plantations (out growers)
This sugar project is structured in order to maximize sugar and power production and will, out of the by products from the sugar production, molasses, produce ethanol.
All sugar, power and ethanol produced is primarily geared towards the domestic market that is showing a big and growing shortage of all three end products.
The sugar cane plantations are developed to take advantage of the most modern advances in the agriculture methods: advanced irrigation systems, modern technology and the best available cane varieties.
Sugar cane yields are projected to be between 90 and 110 tonnes per Hectare - long time average.
EcoEnergy has operated a farm of 200 ha with advanced sub surface drip irrigation in a neighbouring area to the commercial farm since 2007 achieving good cane yields.
At full operations, the project will process approximately
1million tonnes of sugar cane annually and produce 125,000 tonnes of sugar for the domestic market; deliver 100,000 megawatt hours (MWh) of power to the national grid and produce 8 million litres of fuel Ethanol for the domestic market.
The project is in line with Tanzanian agricultural and rural development initiatives. Only 6,000,000 ha of the total 45,000,000 ha of potentially arable land in Tanzania are currently farmed and 70 percent of the famed land is hand hoed.
The project incorporates a comprehensive Out Grower and Community Development Program that should result in a rapid build up of production capacity by the out growers over a four-year period from when the local process industry is in place.
SOURCE:
THE GUARDIAN
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