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. The International Fund for Agricultural Development (IFAD) provided
a $10 million loan to establish a local farmers' association, the Kalangala Oil
Palm Growers Trust (KOPGT).
When IPS visited the islands in September, more than 6,000 hectares of forest
on Bugala Island had been cleared and planted with oil palms by BIDCO.
KOPGT out-growers had cleared 3,500 hectares. A mill to process palm
kernels into crude palm oil that will be sent to the main refinery in Jinja was
almost complete.
But 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.
Meddie Seruyange, a motor cycle rider who guided IPS around the plantation,
said all the thick forests which used to cover much of Bugala and Kalangala
district were no more. As we rode through, huge logs, some half buried in
the soil, gave away that natural forests had stood here recently. All replaced
with now with an expanse of palm trees.
The Kalangala NGO Forum (KADINGO) represents environmentalists and civil
society groups in the area. It says a catastrophe awaits Lake Victoria if BIDCO
is allowed to continue.
KADINGO says apart from massive application of fertilisers which washes into
the lake causing over-production of algae and water weeds with knock-on
effects on lake ecosystems, BIDCO has also encroached on national forestry
land outside the 7,000 hectares it received from Uganda government.
The Bugala island forest reserves in Bukasa, Maziinga, Bumyama and
Bufumbira are most affected: none of these areas are part of the land leased
to BIDCO.
Harriet Saawo, the Kalangala district natural resources officer, told IPS that
BIDCO has been allowed to devastate the district with abandon. She says it
has destroyed 40 percent of the natural forest cover on Bugala, the main
island.
Seven hundred farmers under KOPGT have opened up about 3,500 hectares
of forests for palm cultivation. KOPGT is composed of mainly big land owners,
politicians and some small farmers who acquire loans using their land as
security.
Early in 2009, KADINGO hired the Uganda Coalition for Sustainable
Development (UCSD) to assess whether the palm oil-producing company was
complying with the requirements set out in the Environment Impact
Assessment (EIA).
The findings of the 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.
"The clearing of forests in phases as stated in the Environmental Impact
Assessment is not being followed. Large pieces of land are cleared at once.
Exposure of soils to direct solar radiation and erratic rainfall are leading to
soil erosion and siltation of the Lake Victoria’s streams and rivers. As a result
of clearing the forest cover, the soils have been exposed to soil erosion and
land degradation," the report said.
On the islands, it is evident that soil
erosion is taking place towards the lake. IPS saw only a thin line of trees left
standing near the lake shore; no cover crop had been planted as required by
the EIA.
Saawo says the company and its outgrowers are also failing to follow
guidelines in the application of fertiliser.
"It is true they have a permit from the National Environment Management
Authority (NEEMA) to apply fertilisers. But the concern is that the rules are not
being followed, especially by the private palm farmers (the out growers) who
just buy the fertilisers and apply. These fertilisers are ending up in the lake
and this is dangerous," she said.
David Mwayafu, programme officer with Uganda Coalition For Sustainable
Development confirmed to IPS at his Kampala office that his study found the
establishment of the plantation has not been run in line with the regulations.
"Soil erosion during initial opening of land and use of fertiliser such as MOP,
NPK, dolomite, kieserite among others (are all violations)," he said.
"The parent company of the project in Indonesia is a member of the
Roundtable on Sustainable Palm Oil (RSPO) and BIDCO is to be registered a
member. By clearing the lake shore, BIDCO has exhibited non-compliance
with principles of RSPO.
Further, he said, "Draining of wetlands is also taking place in Bwendero,
Buyoga and Kankere wetlands. Yet we understand the role of wetlands which
act as buffer zones for filtering water before they enter into the lake. So if
there is erosion fertilisers will be washed into the water."
Mwayafu questioned the commitment of the Ugandan government to
protecting the natural forests especially given their role in carbon absorption.
"The rate of deforestation on the island is something that needs to be
addressed. If we are talking about climate change and you are cutting trees
what is the essence of talking about climate change? What is the essence of
negotiating about climate change?"
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Palm oil
on probation
The World Bank in August suspended International Finance
Corporation (IFC) lending to the oil palm sector pending the development of
safeguards to ensure that lending doesn't cause social or environmental
harm.
World Bank president Robert Zoellick, in a letter to Indonesian NGOs, said "I
have also asked the (IFC) to review the environmental and social performance
of all portfolio investments in palm oil. We are committed to ensuring that
positive development outcomes-including environmental and social
sustainability-remain at the core of IFC's development business."
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In February 2009,
Dennis Ssebugwawo, National Forestry Authority sector manager for Bugala,
stopped the expansion of the area under oil palms, saying BIDCO was eating
into protected forest. He said BIDCO has cleared over 100 hectares of Gala
forest reserve in Bugala, Kalangala.
But In an interview with IPS, Vincent Owor Adipa, the administrative manager
of BIDCO Uganda, denied that the project was negatively affecting Bugala
Island and Lake Victoria.
"I challenge Uganda Coalition of Sustainable Development and Kadingo to
provide scientific proof that the destruction is going on. Otherwise I am
constrained to comment on issues based on hearsay. All I know is that we
have abided by the requirement, "he said.
Bujumba county member of parliament for Kalangala, Fred Bada - also a palm
grower on the island - conceded that the forests have been cut down and
replaced by oil palms, but he claimed people in the area stand to benefit
more from the palm trees with a ready market from BIDCO.
"People feared that clearing forests was going to be problematic. But instead
what they have realised is that a new canopy has developed, although it is
only a mono (culture) type forest because it is of palm trees," he said.
Paul Drichi, the director of plantations at Uganda's National Forestry
Authority told IPS that palm trees don’t provide a canopy similar to that of
natural mixed forest which has different tiers compared to mono type Palm
trees.
"The palm trees are a mono culture type of forests usually planted in lines
whereas the natural forests are diverse in terms of species." he explained.
He said the destruction of natural forests in Bugala islands has threatened
forest-dependent wild animals like monkeys. He warned Uganda would soon
import fuel wood if it did not preserve remaining forests.
When IPS visited Bwendero palm oil plantation, the monkeys were seen
roaming about. Residents in the area complained that the monkeys were now
destroying the crops more frequently than in the past, presumably searching
for new food sources now that the original forest is gone.
Beatrice Anywar, Uganda’s shadow environment minister, told IPS that the
palm oil investors do not seem to be listening to demands by environment
activists because they have the backing of President Yoweri Museveni.
"We are replacing natural forests with palm trees and this is bad for our
country. But this goes on because the investors have the backing of the
president. They don’t listen. We should begin listening to scientists because
we are already witnessing floods and severe droughts," she said.
While campaigning for Fred Bada in a parliamentary by-election in January
2009 President Yoweri Museveni criticised environmentalists for opposing
the BIDCO project.
"I invited the investors to start this project here, though some people wanted
to block it because they wanted to protect butterflies instead of
development," Museveni said." But butterflies can go and live elsewhere."
Maria Mutagmba, Uganda’s water and environment minister told IPS that she
has personally not been to Bugala Island in the last three years and that she
was not aware of the alleged degradation by the palm oil project.
"About the fertilisers used in Kalangala, yes the farmers have to use
fertilisers, but they are being monitored by NEEMA and for every activity they
do, NEEMA has got to assure me that they are compliant. They must ensure
that these chemicals don’t get into the water," she said.
BIDCO has had running battles with conservationists over Bugala forests since
the project's inception. It recently asked government to degazette part of the
forest reserve to expand the project. Mutagamba confirmed that the matter
was still being considered.
