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Deal #1976 Version #56445

Uganda
Created at
2013-02-15
Last update
2019-04-03
Last full update
2022-09-07

Land area

Intended size
40 000 ha
Size under contract (leased or purchased area)
  • 12725.0 ha
  • [2003] 6500.0 ha
  • [2012] 7000.0 ha
  • [2018, current] 7591.0 ha
Size in operation (production)
  • 7500.0 ha
  • [2009] 5600.0 ha
  • [2014, current] 6225.0 ha
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. One report states that: 5,500 hectares of land were allocated from the Sempa Family, and 3,000 hectares out of public land in the same district for this project. 18000acres have been cleared. IFAD 2011 report states: "As a result of the new negotiations with BIDCO Oil Refineries Ltd. (Kenya) nucleus estate was increased to 6,500ha and the 3,500ha for smallholder development maintained,thereby bringing the total area planted to 10,000 ha." New information indicates that 6225ha have been leased at Kalangala with and additional 6500ha which has been purchased at Buvuma. A portion of the land on Buvuma will be used for infrastructure and other purposes. 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- government claims to have secured the land from communities on willing buyer willing seller with the company gaining 10 000ha (4000ha from outgrowers)- this land is still to be handed over to the investor (October 2017). Overall aim is 40000ha under palm oil, 30000ha of which under contract farming- expansion already starting on the mainland.

Intention of investment

Intention of investment
  • [current] Agriculture unspecified
Comment on intention of investment
Oil palm, many possible uses. One report states oil palm for edible oil.

Nature of the deal

Nature of the deal
Outright purchase, Lease
Comment on nature of the deal
Lease on Kalangala and purchase on Buvuma.

Negotiation status

Negotiation status
  • [2003, current] 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. The company gained an additional 1200ha in 2012.

Implementation status

Implementation status
  • [2009, current] 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 (out-grower)
Yes
Not on leased area/farmers/households (out-grower)
  • [current] 3864.0 ha
Comment on contract farming
Outgrower scheme only started in 2006. Outgrowers are organised in the Kalangala Oil Palm Growers Trust (KOPGT). Outgrower farmers whose crop reached maturity are currently earning an average of UGX 600,000 per hectare per month from sale of their oil palm fruits to the palm oil factory. outgrowers are denouncing that the company, in partnership with the government, fixed monopolistic purchase prices that make it impossible for them to earn a living. 1610 farmers on 3864ha of land- IFAD documents).