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

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for in the National Forestry and Tree Planting Act, the National Environment Act and provisions of the multilateral environmental agreements, especially the Convention on Biological Diversity. The compensation would also conform to the social and environmental safeguard policies of the Government of Uganda and its development partners, including the need to conduct a thorough environmental impact assessment (EIA). The appropriate level of compensation the developer will be required to pay is US$45.1 million, payable to the NFA to support conservation activities in the remaining part of Mabira CFR and other reserves. The study also noted that Government could also waive the requirement for compensation. The study however, noted that such an action would tantamount to provision of a subsidy to SCOUL amounting to US$45.1 million or the total economic value of the lost value of the forest due to the proposed change in land use. The waiver would also tantamount to a gross policy failure, particularly in view of the efficiency questions surrounding SCOUL. The study also noted that if the developer paid the US$45.1 million compensation, they would in effect be purchasing 7,186 ha of Mabira CFR at a fairly high cost per hectare. Land in the vicinity currently goes for UShs 500,000 to 1,000,000 per acre (or Ushs 1,250,000 –2,500,000 per hectare). If SCOUL were to pay UShs 2,500,000 per hectare, double the upper range, the company would purchase 30,668 ha of land. For the equivalent of 7,186 ha, if SCOUL purchased the land from private sources the company would pay UShs.17,965 million (or US$10.6 million), an amount less than the compensation figure calculated in the study. The study finally noted that in addition to the financial and economic questions presented above, other equally valid issues needed further investigation. They include the need for compensation at ‘fair and equal’ value, the current implied objective of national self-sufficiency in sugar production; and land acquisition options available to the developer. Viii The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011
TABLE OF CONTENTS Acknowledgements iv Acronyms and Abbreviations v Executive Summary vi Table of Contents vii List of Figures viii List of Tables ix List of Boxes x 1.0. INTRODUCTION 1 1.1. BACKGROUND 1 1.2. THE Degazettement PROPOSAL 3 1.3 SCOPE OF THE ASSIGNMENT 5 1.4. METHODOLOGY 6 2.0. BIOPHYSICAL CHARACTERISTICS OF MABIRA CFR 7 2.1. SIZE AND LOCATION 7 2.2. GEOLOGY AND SOILS 7 2.3. PLANTS 8 2.4. BIRDS 8 2.5. MAMMALS 10 2.6. AMPHIBIANS 10 2.7. REPTILES 10 2.8. BUTTERFLIES 10 3.0. ECONOMIC EVALUATION OF THE SUGAR SECTOR IN UGANDA 13 3.1. Global Sugar Production Trends 13 3.2 History of the Sugar Industry in Uganda 14 3.3 Sugar Production and Consumption Trends in Uganda 17 3.4. Performance of Uganda’s Sugar Sector 16 4.0. EVALUATION OF DECISION TO CONVERT MABIRA CFR FOR SUGARCANE PRODUCTION 18 4.1 Sugar Production Model for Uganda 18 4.2. The Value of the Sugar Sector in Uganda 20 4.2.1 Value of Reproducible Tangible Assets ( sugarcane) 20 4.2.2 Value of non-reproducible assets of sugar factory (Land at the Company owned nucleus sugarcane estate) 21 4.3. Cost of Production and the Determinants of the Competitiveness of the Sugar Sector in Uganda 22 4.4. Options for Improving the Competitiveness of the Sugar Coorporation of Uganda Limited (SCOUL) 25 4.5. CONCLUSIONS 29 The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011 ix
Page 1: THE ECONOMIC VALUATION OF THE PROPO
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Page 6 and 7: ACRONYMS AND ABBREVIATIONS SCOUL Su
Page 10 and 11: 5.0. THE CONSERVATION OPTION 31 5.1
Page 12 and 13: List of Boxes Box 1: Out-growers pr
Page 14 and 15: The pro-conservation groups who are
Page 16 and 17: Figure 1: Map of Mabira CFR showing
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Page 20 and 21: which include schist’s, phyllites
Page 22 and 23: Wattled Starling(Creatophora cinere
Page 24 and 25: Restricted-range butterflies record
Page 26 and 27: The demand for sugar has also been
Page 28 and 29: Table 7: Projected sugarcane produc
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Page 32 and 33: 4.2. THE VALUE OF THE SUGAR SECTOR
Page 34 and 35: 4.3. COST OF PRODUCTION AND THE DET
Page 36 and 37: additional sugarcane they need from
Page 38 and 39: Table 11: Estimate sugar estate lan
Page 40 and 41: ) Opportunity of SCOUL leasing land
Page 42 and 43: then the government goes ahead and
Page 44 and 45: expected from the environment (Lett
Page 46 and 47: Table 15: Example of links between
Page 48 and 49: PVB = PVC = Where: 36 ∑ = t n t =
Page 50 and 51: Table 16: Value of Growing Stock Cl
Page 52 and 53: ased on household livelihoods. Bush
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The Economic Valuation of the Propo
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to mature. Subsequently, conservati
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REFERENCES Adger, N., Brown, K., Ca
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Multinational enterprises in the pl
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Primates of Africa. The IUCN Red Da
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Edinburgh University, Scotland. Sim
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ANNEXES ANNEX 1 BIODIVERSITY DATA T
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Family Species Family Species Rutac
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Family Species Family Species Morac
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Table A2: Species list of birds rec
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Britton No. Species Common Name 467
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Table A3: Species list of Mammals (
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Table A4: Amphibians of Mabira Fore
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Tirumala petiverana African Blue Ti
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ANNEX 2 INVENTORY DATA Table III Ma
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Fig AI Icut id nonsimu sperurbitiac
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