Deal history comparison #1976

Previous version (129716)

Selected version (129793)

Location #1

Spatial accuracy level
Coordinates
Location
Kalanga, Uganda

Latitude
-0.4462387773346961
Longitude
32.21236202877196
Target country
Uganda
Comment on location
Bugula Island in Kalangala District

Location #1

Spatial accuracy level
Coordinates
Location
Kalanga, Uganda

Latitude
-0.4462387773346961
Longitude
32.21236202877196
Target country
Uganda
Comment on location
Bugula Island in Kalangala District

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] 6500
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, including Buvuma Island in Mukono District.

Intention of investment

Intention of 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).

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] 6500
Comment on land area
Original plan was to have a 10,000ha nucleus estate, but private partner negotiated for 6500ha. There is conflicting information whether the land lease is in fact 10 000hectares instead of 6500 hectares and whether the size in operation in 2013 was 7500 hectares instead of 6500 hectares. The second phase of the project, an additional 10 000 hectares, will expand the production onto several more islands, including Buvuma Island in Mukono District.

Intention of investment

Intention of 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'.Opul acquired additional land leases from a Ugandan businessman, Amos Ssempa, with the aim of expanding its plantations in 2011.

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

Operating company

Operating company
Comment on investment chain
The palm oil project is supported by the UN’s International Fund for Agricultural Development (Ifad). The World Bank withdrew from the projects, with concerns that the project would not meet the bank's policies on forestry.

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

Data source #7

Data source type
Research Paper / Policy Report
File
Comment on data source
Grain-Planet palm oil, September 2014

Data source #8

Data source type
Media report
File
Date
2015-02-19
Comment on data source
Farmland Grab- UN, banks and oil palm giants feast on the stolen land of Uganda's dispossessed

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

Data source #7

Data source type
Research Paper / Policy Report
File
Comment on data source
Grain-Planet palm oil, September 2014

Data source #8

Data source type
Media report
File
Date
2015-02-19
Comment on data source
Farmland Grab- UN, banks and oil palm giants feast on the stolen land of Uganda's dispossessed

Data source #9

Data source type
Media report
File
Date
2015-03-03
Comment on data source
Farmland Grab- Ugandan farmers take on palm oil giants over land grab claims

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.

Displacement of people

Comment on displacement of people
Around 100 small scale farmers and their families.

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. On 19 February 2015, a group of farmers filed a lawsuit against Bidco Uganda and Amos Ssempa, who leased the land to Opul.

Displacement of people

Comment on displacement of people
Around 100 small scale farmers and their families.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Some of the displaced 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...)
Roads

Former land owner (not by constitution)

Former land owner
State

Former land use

Former land use
Pastoralism
Forestry
Conservation
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.

Former land owner (not by constitution)

Former land owner
State

Former land use

Former land use
Pastoralism
Forestry
Conservation
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
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.

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.

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Surface water (Lake)

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Surface water (Lake)

Any gender-specific information about the investment and its impacts

Comment on gender-related info
A study on the gender impacts found that women do not benefit from the plantation. The project could further marginalize women by closing off access to communally owned land, forests and other resources that women most rely on.

Overall comment

Overall comment
Project supported by IFAD funding, Oilpalm Uganda provides $120m, IFAD provides $19m loan. One report states that IFAD is "directly overseeing" the project after providing a $52 million 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. One report states that IFAD is "directly overseeing" the project after providing a $52 million 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.