Kampala, Apr 15, 2004 --LL investors who engage in producing andprocessing of palm oil will be awarded concessions in order to ensurespeedy development of the sector, Sam Kuteesa, the finance minister incharge of investment has said.

"We have reviewed our policy and made it such that every investor whobrings money into the oil producing and processing sector will receive taxconcessions similar to those given to BIDCO Oil Refinery," he saidrecently.

Kuteesa was responding to concerns by the Uganda Oil Seed because it isvery big.

He said since the country enjoys a customs union tariff of 25% against allproducts coming into this country, "Anyone who creates a project of theBIDCO magnitude will enjoy the same incentives and tax regime."

BIDCO, which was availed 26,000 hectares of land in Kalangala and Bugalaislands, also enjoys a 25-year tax concession.

Kuteesa hailed the International Fund on Agricultural Development (IFAD)for availing a $20m loan for the project.

Meanwhile, BIDCO will spend $50m of their own funds.