Agency
Madhvani Group of companies has shown interest in acquiring an 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 Mega Fmin an interview Monday that the request for the additional land is to enable sugarcane out growers to be incorporated within the project.
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 Mega Fm 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.
Eswar acknowledged that the delayed issuance of titles by the government has stalled the Group’s move to commence works.
Prof Jack Nyeko Pen-Mogi, the Chairperson of Uganda Lands Commission told Mega Fm 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.
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.