the economic valuation of the proposed ... - Nature Uganda

) Opportunity of SCOUL leasing land from land owners in areas of Mukono District
As indicated in Table 13, landlords with large tracts of land lying idle would be in a better position to benefit from the
land leasing scheme than smallholder landowners. Small landowners and landlords would have very small revenue
such that there would be no incentive for them to join the venture.
Table 13: Value for leases of land likely to be offered to SCOUL
Number* of
units
Land area
(ha)
Amount (Ushs/
ha/yr)
Total Amount
(Ushs/yr)
Mutoola IV (in Kitoola) 21 338 10,980 3,711,240
If government of Buganda or the Church of
Uganda offered 7,100 ha (i.e. actual variant
requested for)
1 7,100 10980 77,958,000
1 landowner with 2 ha 3,550 2 10,980 20,980
1 with 1000 ha 7 1,000 10,980 10,980,000
*indicates the number of units required to satisfy the 7 100 ha land requirement for SCOUL
Box 5: Land resource values
Land resource values were estimated from the perspective of the net benefit streams per annum. Then the
present values were obtained by capitalising the average annual benefit stream using the government of
Uganda’s social opportunity cost of capital of 12 percent. The present value of product or service (i) equals
average annual benefits (economic rent) capitalised by the social opportunity cost of capital.
Where:
PVt = present value of product i
t = time period from 1 to m years
ARt = average annual benefit from product i
r = social opportunity cost of capital or discount rate (12 percent).
Subsequently, the total present value of the land area to be acquired by Mabira is given by the equation:
Where:
TPV = total present value
n = number of products
t = time period from 1 to m years
28 The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011