Deal #1895 Version #56116

The actual size under contract is under much discussion (see Locher and Sulle for details). The company website states that approximately 20 000ha was granted by the government, with the local community granting an additional 2300ha. The project has planted a maximum of around 8000ha so far, if at all (not 20000ha). Under Sekab, the intended size was 250 000ha, however under EcoEnergy Africa the intended size is 28000ha. IFAD states estate is 11000ha, while EIA report suggests estate is 7500ha. Another source states that the estate is 21 255ha and 2,000 ha of land in an adjacent village.

Approximately 8000 ha of land will initially be used for sugar cane plantation at the farm estate, while 3,000 – 4,000 ha of outgrowers will be developed over a six year time period, outside the core estate. Within the Razaba land area about 3,000 ha of marginal land needs to be improved and treated through planting banagrass and/or sweet sorghum so as to reduce the salinity and transform it into arable agricultural land. There is a land in the southwest area of the Razaba farm which is unsuitable arable agriculture but which has relatively good access to good infrastructure. This area of approximately 1,600ha is intended to be developed for commercial sustainable forestry. The project has taken an initiative to portion about 2000 ha of project land with access to two dams to be utilized for some years by the local pastoralists. Other areas of the project land will be used for bio-diversity, roads, water canals and other infrastructures.

The original contract signed by the government for the approx 20 000ha was signed in 2008 (Formerly under Sekab). In May 2013 the land title with a 99 year land lease was officially issued (it is not clear whether the land lease runs for 99 years from 2008 or 2013).

Agro EcoEnergy (Sekab) signed a Memorandum of Understanding (MoU) with the government of Tanzania reflecting a mutual interest in developing the first state of the art sugar cane industrial project in 2006. In April 2008 the Western part of the former RAZABA Cattle Ranch (20,000 ha approximately) was officially offered to Agro EcoEnergy. In June, 2008 the village assembly of Fukayosi unanimously agreed to provide 2,300 ha of land adjacent to the Razaba farm. Due to the project delay, this agreement was unanimously renewed by the village assembly in mid-2011. Sekab withdrew and sold the investment to EcoEnergy in 2009. In November 2011 the former RAZABA land was officially published as project land.

Demonstration farm of 200ha with drip irrigation has been operational since 2008 generating good yields and sucrose levels.Two nurseries were also opened to supply the seeds for the plantations. Sekab withdrew and sold the investment to EcoEnergy, run by same people. One report states that the company has been unable to advance the project and the lands have not yet been put into production.

No lease fee-- instead in January 2012 an agreement was reached with the government where the Government and Communities would gain up to 25% ownership of the project company in exchange for land free of encumbrance.

Outgrowers both on the lease and off the lease. Approximately 8000 ha of land will initially be used for sugar cane plantation at the farm estate, while 3,000 – 4,000 ha of outgrowers will be developed over a six year time period, outside the core estate. The people will be empowered to set up, own and operate independent commercial outgrower companies, each company farming sugarcane on approximately 75-150 ha of land. Some 25-35 companies will be supported in the process to produce and supply 300,000T – 400,000T sugarcane per year to the Agro EcoEnergy Mill. The out growers are from Kiwangwa, Matipwili and Gama. The outgrowers will be provided with infrastructure, training and the in-farm development component (Each outgrower company will access funding through the development of a business plan for the development of their farm). Off-farm outgrowers have commenced with rice and sugarcane farming- association called CHUA in Kiwangwa Village. IFAD report contains more information on the outgrower scheme programme.