Deal history comparison #1976

Previous version (129138)

Selected version (129178)

Location #1

Spatial accuracy level
Coordinates
Location
Kalangala, Uganda

Latitude
-0.4462387773346961
Longitude
32.21236202877196
Target country
Uganda

Location #1

Spatial accuracy level
Coordinates
Location
Kalangala, Uganda

Latitude
-0.4462387773346961
Longitude
32.21236202877196
Target country
Uganda

Land area

Intended size (in ha)
40,000
Size under contract (leased or purchased area, in ha)
[2003] 6500
Size in operation (production, in ha)
[2009] 5600
[2013] 7500
Comment on land area
Original plan was to have a 10,000ha nucleus estate, but private partner negotiated for 6500ha. The second phase of the project, an additional 10 000 hectares, will expand the production onto several more islands ( add cause additional environmental and social impacts).

Intention of investment

Intention of the investment
Agriculture unspecified
Comment on intention of investment
Oil palm, many possible uses

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2003] Concluded (Contract signed)
Comment on negotiation status
The agreement included that the land would be acquired 'free of encumbrances'.

Implementation status

Implementation status
[2009] In operation (production)
Comment on implementation status
First Fruit bunches to be harvested in 2009.

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
3,500
Comment on contract farming
Outgrower scheme only started in 2006. Outgrowers are organised in the Kalangala Oil Palm Growers Trust (KOPGT).

Land area

Intended size (in ha)
40,000
Size under contract (leased or purchased area, in ha)
[2003] 6500
Size in operation (production, in ha)
[2009] 5600
[2013] 7500
Comment on land area
Original plan was to have a 10,000ha nucleus estate, but private partner negotiated for 6500ha. The second phase of the project, an additional 10 000 hectares, will expand the production onto several more islands ( add cause additional environmental and social impacts).

Intention of investment

Intention of the investment
Agriculture unspecified
Comment on intention of investment
Oil palm, many possible uses

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2003] Concluded (Contract signed)
Comment on negotiation status
The agreement included that the land would be acquired 'free of encumbrances'.

Implementation status

Implementation status
[2009] In operation (production)
Comment on implementation status
First Fruit bunches to be harvested in 2009. Allegations that the company is operating without an EIA.

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
3,500
Comment on contract farming
Outgrower scheme only started in 2006. Outgrowers are organised in the Kalangala Oil Palm Growers Trust (KOPGT).

Contract #1

Duration of the agreement (in years)
99

Contract #1

Duration of the agreement (in years)
99

Number of total jobs created

Jobs created (total)
Yes
Planned number of jobs (total)
1,800
Current number of jobs (total)
1,800
Comment on jobs created (total)
majority are jobs for foreigners and wages are poor

Number of jobs for foreigners created

Comment on jobs created (foreign)
wages are poor

Number of domestic jobs created

Planned number of jobs (domestic)
1,757
Comment on jobs created (domestic)
wages are poor

Number of total jobs created

Jobs created (total)
Yes
Planned number of jobs (total)
1,800
Current number of jobs (total)
1,800
Comment on jobs created (total)
majority are jobs for foreigners and wages are poor

Number of jobs for foreigners created

Comment on jobs created (foreign)
wages are poor

Number of domestic jobs created

Planned number of jobs (domestic)
1,757
Comment on jobs created (domestic)
wages are poor

Operating company

Operating company
Comment on investment chain
OPUL is a subsidiary of Bidco Uganda, which holds 90 percent of OPUL’s shares. Bidco Uganda is a joint venture formed between Wilmar International, Josovina Commodities and Bidco Oil Refineries, a Kenya-based company. Wilmar International holds 39 percent of the shares of Bidco and 50 percent of the shares of Josovina Commodities and is therefore likely to have majority control of both Bidco Uganda and Oil Palm Uganda Limited.

Operating company

Operating company
Comment on investment chain
OPUL is a subsidiary of Bidco Uganda, which holds 90 percent of OPUL’s shares. Bidco Uganda is a joint venture formed between Wilmar International, Josovina Commodities and Bidco Oil Refineries, a Kenya-based company. Wilmar International holds 39 percent of the shares of Bidco and 50 percent of the shares of Josovina Commodities and is therefore likely to have majority control of both Bidco Uganda and Oil Palm Uganda Limited.

Data source #1

Data source type
Research Paper / Policy Report
File
Comment on data source
Friends of the earth report

Data source #2

Data source type
Media report
File
Comment on data source
Friends of the Earth 2013 report regarding the land acquisition

Data source #3

Data source type
Company sources
File
Comment on data source
response to the friend of the earth report 2013

Data source #4

Data source type
Media report
File
Comment on data source
pg 2 of PDF, 2007

Data source #5

Data source type
Media report
File
Date
2012-05-07
Comment on data source
Daily Monitor- Palm Plantation: Land grabbing uproar in Kalangala District, pg 37 of the pdf, received from Martin

Data source #1

Data source type
Research Paper / Policy Report
File
Comment on data source
Friends of the earth report

Data source #2

Data source type
Media report
File
Comment on data source
Friends of the Earth 2013 report regarding the land acquisition

Data source #3

Data source type
Company sources
File
Comment on data source
response to the friend of the earth report 2013

Data source #4

Data source type
Media report
File
Comment on data source
pg 2 of PDF, 2007

Data source #5

Data source type
Media report
File
Date
2012-05-07
Comment on data source
Daily Monitor- Palm Plantation: Land grabbing uproar in Kalangala District, pg 37 of the pdf, received from Martin

Data source #6

Data source type
Research Paper / Policy Report
File
Comment on data source
Forest Trends Report Series- Consumer Goods and Deforestation: An Analysis of the Extent and Nature of Illegality in Forest Conversion for Agriculture and Timber Plantations, September 2014

Consultation of local community

Community consultation
Not consulted

How did the community react?

Community reaction
Mixed reaction
Comment on community reaction
Community outcries for the project to be reformed or shut-down have been ignored. Affected communities are demanding the return of land improperly taken, guarantees for the protection of community land rights, compensation for crop damage, and long term protection of community forests, water, and other natural resources.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Received new land. Some reports suggest that the community received inadequate compensation (ranging from Shs 100 000 to 1.5million) for their land and that international norms and national laws were broken. The report also claims the communities suffer from degraded water sources.

Promised benefits for local communities

Promised benefits for local communities
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)

Consultation of local community

Community consultation
Not consulted

How did the community react?

Community reaction
Mixed reaction
Comment on community reaction
Community outcries for the project to be reformed or shut-down have been ignored. Affected communities are demanding the return of land improperly taken, guarantees for the protection of community land rights, compensation for crop damage, and long term protection of community forests, water, and other natural resources.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Received new land. Some reports suggest that the community received inadequate compensation (ranging from Shs 100 000 to 1.5million) for their land and that international norms and national laws were broken. The report also claims the communities suffer from degraded water sources.

Promised benefits for local communities

Promised benefits for local communities
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)

Former land owner (not by constitution)

Former land owner
State

Former land use

Former land use
Pastoralism
Forestry
Other

Former land cover

Former land cover
Forest land
Shrub land/Grassland (Rangeland)
Comment on former land cover
Approximately 3600 hectares of natural forest was removed to plant oil palms- causing severe environmental degradation. The operations occur on an island of Lake Victoria which has high biodiversity.

Former land owner (not by constitution)

Former land owner
State

Former land use

Former land use
Pastoralism
Forestry
Other

Former land cover

Former land cover
Forest land
Shrub land/Grassland (Rangeland)
Comment on former land cover
Approximately 3600 hectares of natural forest was removed to plant oil palms- causing severe environmental degradation and water pollution. The operations occur on an island of Lake Victoria which has high biodiversity.

Detailed crop, animal and mineral information

Crops area
Oil Palm

Use of produce

Has domestic use
Yes

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Oil processing facility at Jinja. The refinery was established in 2005.

Detailed crop, animal and mineral information

Crops area
Oil Palm

Use of produce

Has domestic use
Yes
Has export
Yes
Comment on use of produce
when it is complete the project is expected to produce double the current consumption when it is complete, suggesting that a large proportion will actually be destined for export (FoE International 2013

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Oil processing facility at Jinja. The refinery was established in 2005.

How much water is extracted?

Comment on how much water is extracted
SGP

How much water is extracted?

Comment on how much water is extracted
SGP

Overall comment

Overall comment
Project supported by IFAD funding, Oilpalm Uganda provides $120m, IFAD provides $19m loan, Ugandan government provides $12m for land, electricity. Reports that government halted plans after 6000 ha already cleared. Land being allocated part of national forest reserves; led to public protests. Other report says project has provided incomes and improved infrastructure.

Overall comment

Overall comment
Project supported by IFAD funding, Oilpalm Uganda provides $120m, IFAD provides $19m loan, Ugandan government provides $12m for land, electricity. Reports that government halted plans after 6000 ha already cleared. Land being allocated part of national forest reserves; led to public protests. Other report says project has provided incomes and improved infrastructure.