Uganda: palm project accused of environmental destruction
Date: 20/11/2009
Introduction:
A public-private partnership intends to reduce Uganda's dependence on imported vegetable oil while creating sustainable jobs and income for several thousand people. However, critics say it is destroying forests with no regard for environmental regulations. The Ugandan government entered into an agreement with BIDCO, the largest manufacturer of vegetable oil in Uganda, and Malaysian palm oil giants Wilmar to set up a plantation and refinery in the Kalangala islands in Lake Victoria. Transnational agribusiness giant Archer Daniels Midland owns shares in both companies. The government signed over 7,000 hectares of forest on the islands in exchange for a 10 percent share in the plantation. A further 3,500 ha was set aside for plantations to be cultivated by out- growers. IFAD provided a $10 million loan to establish a local farmers' association, the Kalangala Oil Palm Growers Trust. The project stands accused of both clearing forest in violation of the terms of the country's environmental regulations and of polluting the lake with fertilisers and other agrochemicals. The findings of a survey, released at the end of March 2009, indicated that the palm oil project has destroyed rich habitats and was a threat to biological diversity in Bugala island. (Source: IPS, 3 November 2009)
