MARKET DEVELOPMENT
Singapore Firm to Put up Palm Oil Plantation in Coast Region
Singapore Firm to Put up Palm Oil Plantation in Coast Region
31/08/2013 (IPPmedia) - The National Development Corporation (NDC) has signed a joint venture pact with Singapore based firm Nava Bharat to establish a Palm Oil plantation for the production and processing of palm oil in the Coast Region village of Kimala Misale in Kisarawe District.
Speaking during the signing ceremony held yesterday in Dar es Salaam, NDC Managing Director and Chief Executive Officer Gideon Nasari, said the Agro-Industry project is valued at USD111m, which includes acquisition of some 10,000ha of land but of which compensation with the current land owners is yet to be completed.
“NDC will own 20 percent while the investor 80 percent … they have pledged to support local farmers with market penetration and training on modern farming techniques as well as help our farmers with extension service,” said the CEO.
About 2000ha will be set aside to run an out-grower scheme under contract farming that will benefit farmers in the area. Also, on the same land, a palm oil extraction and refinery plant will be set up.
Further, Nasari said preliminary feasibility studies conducted in the area revealed the project has the potential to generate up to 10MW of electricity from biomass waste collected from the farm.
Ashwin Devineni, Nava Bharat Managing Director expressed confidence that the project will prove to be most beneficial to the country’s agriculture sector.
Meanwhile, Kisarawe District Council Chairperson, Adam Mwimba said the council welcomes the project saying it will be extremely profitable to the region and country as at large through creation of employment and generation of tax revenue.
The project is expected to be fully implemented within four years and production is to commence by the seventh year.
Speaking during the signing ceremony held yesterday in Dar es Salaam, NDC Managing Director and Chief Executive Officer Gideon Nasari, said the Agro-Industry project is valued at USD111m, which includes acquisition of some 10,000ha of land but of which compensation with the current land owners is yet to be completed.
“NDC will own 20 percent while the investor 80 percent … they have pledged to support local farmers with market penetration and training on modern farming techniques as well as help our farmers with extension service,” said the CEO.
About 2000ha will be set aside to run an out-grower scheme under contract farming that will benefit farmers in the area. Also, on the same land, a palm oil extraction and refinery plant will be set up.
Further, Nasari said preliminary feasibility studies conducted in the area revealed the project has the potential to generate up to 10MW of electricity from biomass waste collected from the farm.
Ashwin Devineni, Nava Bharat Managing Director expressed confidence that the project will prove to be most beneficial to the country’s agriculture sector.
Meanwhile, Kisarawe District Council Chairperson, Adam Mwimba said the council welcomes the project saying it will be extremely profitable to the region and country as at large through creation of employment and generation of tax revenue.
The project is expected to be fully implemented within four years and production is to commence by the seventh year.