Deal #3017

Location #1

Spatial accuracy level
Administrative region
Location
Mubende, Uganda

Target country
Uganda

Location #2

Spatial accuracy level
Administrative region
Location
Kiboga, Uganda

Target country
Uganda

Location #3

Spatial accuracy level
Administrative region
Location
Bugiri, Uganda

Target country
Uganda

Land area

Intended size (in ha)
20000
Size under contract (leased or purchased area, in ha)
[2004] 20000
Size in operation (production, in ha)
[2011] 10400
Comment on land area
Part of the concession will be used to regenerate native bush. Another source states 6500ha (project area). Another source states 21500 ha.

Intention of investment

Intention of the investment
Forest logging / management (for wood and fibre), For carbon sequestration/REDD
Comment on intention of investment
The state granted the company a licence to develop three timber plantations; the licence comes with strict conditions (e.g. no permission to grow food crops or allow cattle grazing). The company has applied for carbon credits for carbon offsetting.

Nature of the deal

Nature of the deal
Concession

Negotiation status

Negotiation status
[2004] Concluded (Contract signed)
[2012] Failed (Contract cancelled)
[2013] Concluded (Contract signed)
Comment on negotiation status
NFC does not own or lease the land. The contract failed due to a $15 million loss. The company is active again after conflict resolution took place with the affected communities.

Implementation status

Implementation status
[2005] In operation (production)
[2012] Project abandoned
[2013] In operation (production)
Comment on implementation status
Has already planted around 12 million pine and eucalyptus trees on 9,300 hectares.

Contract farming

Contract farming
No

Number of total jobs created

Jobs created (total)
Yes
Current number of jobs (total)
560
1300
Comment on jobs created (total)
Another data source states the company employs 1300.

Operating company

Comment on investment chain
$30 million joint debt facility in 2015. The new facility is with Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (known as the "FMO") and the Finnish Fund for Industrial Cooperation Ltd (known as "Finnfund"). Norfund and DFI have also supported the project financially.

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Date
2011-01-01
Comment on data source
The New Forests Company and its Uganda plantations: Oxfam Case Study

Data source #2

Data source type
Company sources
File

Data source #3

Data source type
Media report
File
Date
2011-09-22
Comment on data source
Business Daily- Ugandans displaced by UK company land grab, says Oxfam report

Data source #4

Data source type
Media report
File
Comment on data source
New Forests Company and plantation, Uganda

Data source #5

Data source type
Media report
File
Date
2015-07-24
Comment on data source
Forestry South Africa- New Forests Company: doing business, doing good

Data source #6

Data source type
Media report
File
Date
2015-07-22
Comment on data source
New Forests Company Completes Joint Debt Facility

Data source #7

Data source type
Media report
File
Date
2012-01-10
Comment on data source
pg 5, Daily Monitor, received from Martin

Data source #8

Data source type
Research Paper / Policy Report
File
Comment on data source
Land and Power- The growing scandal surrounding the new wave of investments in Land. Oxfam. September 2011.

Data source #9

Data source type
Other (Please specify in comment field)
File
Date
2014-05-06
Comment on data source
Report from the Compliance advisor ombudsman (CAO), an arm of the IFC. Agreement between Mubende Community and New Forests Company in Uganda sees Community Resettled on New Land

Data source #10

Data source type
Media report
File
Date
2014-04-03
Comment on data source
Oxfam- Mubende community in Uganda moves forward with implementation of agreement with New Forests Company

Data source #11

Data source type
Research Paper / Policy Report
File
Date
2012-01-01
Comment on data source
Land, life and justice. How land grabbing in Uganda is affecting the environment, livelihoods and food sovereignty of communities, Friends of Earth

Data source #12

Data source type
Research Paper / Policy Report
File
Date
2011-01-01
Comment on data source
The New Forests Company and its Uganda plantations: Oxfam Case Study

Data source #13

Data source type
Research Paper / Policy Report
File
Date
2012-01-01
Comment on data source
Land, life and justice. How land grabbing in Uganda is affecting the environment, livelihoods and food sovereignty of communities, Friends of Earth

Data source #14

Data source type
Company sources
File

Data source #15

Data source type
Research Paper / Policy Report
File
Comment on data source
Industrial Tree Plantations invading Eastern and Southern Africa

Data source #16

Data source type
Research Paper / Policy Report
File
Comment on data source
European Development Finance Institutions and land grabs. The need for further independent scrutiny.

Consultation of local community

Community consultation
Not consulted
Comment on consultation of local community
None of the community members knew they had lost their homes and livelihoods.

How did the community react?

Community reaction
Rejection
Comment on community reaction
The community originally rejected the project, thus the project was cancelled in 2012, however the company undertook 15 months of community dispute resolution until 2013, when the company re-started operations.

Displacement of people

Number of people actually displaced
22500
Comment on displacement of people
At least 22,500 Ugandans were forced from their homes to make way for a British timber company, the aid agency Oxfam said in a report. Removal of the former residents, which took place by February 2010 in Mubende and between 2006 and July 2010 in Kiboga. The company states the evictions were carried out by the government and were not violent. The government states that the community were living in the area illegally.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
The Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for the IFC, was involved in the establishment of a mediated agreement between the Mubende community and the company. The agreement commits the company to work closely with the community, while the community has agreed to respect NFC’s legal rights to the land and activities on the land. The agreement has been implemented since July 2013. An agreement is still to be established between the company and the community members in Kiboga District. The Mubende community has established a cooperative (Mubende Bukakikama Cooperative Society) which will receive financial and other support from NFC. The cooperative had bought 202 hectares, with 160 hectares for agriculture (vegetables, beans and potatoes) and the remaining land for housing. The cooperative has received training from the Uganda Cooperative Alliance and supported by Oxfam.

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Financial Support
Other
Comment on promised benefits for local communities
A joint development forum facilitates the identification of development projects for implementation by the company and the Mubende community. Development projects identified include access to water by the community and income generation projects. The company states that it will build schools and clinics as part of its community development program. The company supports community bee-keeping projects.

Former land owner (not by constitution)

Former land owner
State

Former land use

Former land use
Smallholder agriculture
Forestry
Comment on former land use
The National Forestry Authority stated that the local communities living on the project land were illegal encroachers on forest land and that their evictions were justified.

Former land cover

Former land cover
Cropland
Forest land

Detailed crop, animal and mineral information

Crops area
Eucalyptus, Pine

Use of produce

Has domestic use
Yes
Domestic use
100
Comment on use of produce
Timber poles are used domestically

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Timber production

Water extraction envisaged

Water extraction envisaged
Yes

Overall comment

Overall comment
Land is licensed, not acquired nor leased. The community originally rejected the project, thus the project was cancelled in 2012, however the company undertook 15 months of community dispute resolution until 2013, when the company re-started operations. Plantations are accredited with the Forestry Stewardship Council.

Sept. 28, 2017, 4:45 p.m.

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May 24, 2013, 4:15 p.m.

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May 9, 2013, 11:05 a.m.

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Feb. 26, 2013, 8:48 p.m.

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Feb. 25, 2013, 11:34 a.m.

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Feb. 15, 2013, 5:03 p.m.

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