Swacoff Masindi Cane Factory Project
The proposed Swacoff Masindi Cane factory in Uganda plans to develop up to 12,000 hectares of fertile land in Masindi – Uganda, which is suitable for sugar cane cultivation as well as other crops. The client wishes to establish a sugar cane plantation, sugar mill, power plant and distillery in order to optimize land usage.
Currently, the land is under thick bush and the planned project includes clearing the entire land area and raising the sugarcane and an inter-crop to achieve stable yields at the end of three years. Construction of the mill, power plant and distillery will start in parallel and the commissioning is to coincide with the plantation achieving a stable output. The project promoter proposes to carry out a detailed feasibility study to assess the various aspects of the entire project and prepare detailed implementation plans for the plantation, mill, distillery and power plant.
Based on an initial understanding, the entire plantation development should be done in 3 phases – 100 to 125 Ha (Phase 1), 1000 Ha (Phase 2) and 8,000 – 12,000 Ha (Phase 3) to gradually increase the cultivated area and develop seeding capacities. Corresponding to the cane availability a 2500 TCD, 45 ICUMSA sugar mill which shall be expandable to 3500 TCD, an 18 MW power plant and a 40,000 LPD distillery expandable to 25 MW power plant & 60,000 LPD distillery, should be installed. The production of sugar and other resulting by-products. Uganda has a power deficit and the renewable energy from the proposed power plant presents an opportunity to improve the power situation. The project is planned to have positive social, cultural and economic impact on the local communities and farmers.
The entire project is expected to cost $235 MN USD in the base case and land 40,150 acres would be contributed in the form of equity (valued @ $120m USD).The expected equity IRR from the project is in excess of 30%.