Economic history. Chisumbanje Ethanol Plant: Institutional frameworks and implications for land use of public private sector development initiatives in the rural. Chisumbanje Ethanol Plant: Zimbabwe’s milestone: The resumption of operations at the Chisumbanje Ethanol Plant and the subsequent uptake of the E The Chisumbanje Ethanol Project is a national project of great strategic importance where ethanol is produced from sugarcane. The project.
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The Chisumbanje Ethanol Project is a national project of great strategic importance where ethanol is produced from sugarcane. The project consists of sugarcane plantations in Chisumbanje and Middle Sabi, with the Ethanol plant being located in Chisumbanje.
Mutambara proposes road-map for elections. Mutambara calls for free and fair poll. Mutambara moots political comeback. World class irrigation infrastructure has been put in place, and an outstanding ethanol producing plant constructed. The Project has potential to radically improve our fuel security and economics, introduce efficient irrigation schemes, support smallholder out-grower schemes, create jobs, generate large amounts of electric power, and stimulate major downstream industries.
However, several issues and problems at the Chisumbanje Ethanol Project have resulted in the stoppage of production activities at the ethanol plant. To address these matters, there is need for a common understanding of the challenges the project faces. It is within this context that this Inter-Ministerial Committee has done its work and produced the current report. Committee members visited Chisumbanje on the 22nd and 26th of August, on a fact finding mission, and met in Harare on the 3rd and 17th of September to discuss their findings and to start the process of building a portfolio of solutions that will put the project back on its course.
Chisumbanje ethanol project set to restart
The Chisumbanje Ethanol Project is an enterprise of strategic and national importance, which has the potential to be the nucleus for the development of an ethanol industrial cluster. The project currently has issues and problems in two broad areas, which are: Long term and sustainable solutions should be found to these issues based on a thorough and technical analysis of the problems instead of politicizing the issue. The solutions should balance between three buckets of interests, that is, community, private and national.
The solutions should provide a win-win scenario for these three potentially conflicting areas of interests. The resolution of the challenges should be proffered in ways that protect the integrity of the government while engaging all the stakeholders involved and affected. There are two sets of problems that the project faces.
Firstly, there are community and social issues that have emerged in the course of the establishment of the project and as a result of its operation.
Secondly, there are technical eghanol business related issues and problems which have led to low uptake of ethanol fuel blends. All these issues require immediate solutions and action in order for the Chisumbanje Ethanol Project to get back on dhisumbanje.
With regard to the Social and Community issues, the key suggestion is that all households that were displaced or mishandled must be compensated and resettled. Lessons must be learnt, and going forward an inclusive and cihsumbanje approach must be adopted.
The following specific actions are recommended for the issues and problems that have been identified:. The Chipinge Rural District Council should immediately regularise all land acquisitions to the project in accordance with the law by completing the appropriate lease agreement with ARDA in compliance with the Communal Chisumbaje Act Chapter Specifically, the outstanding lease agreement for hectares peoject have already been ceded to the Ethanol Project, together with Council decisions enabling this particular land acquisition, should be reviewed and harmonized in order to align them to the recommendations contained in this report.
Thereafter, the lease agreement must be completed and signed. Out of the total households displaced from their communal lands in Chisumbanje and Chinyamukwakwa communal lands, only have been resettled.
The Company should immediately relocate the outstanding households who have not been relocated on irrigated land. An asset audit i. Consequently, the size of irrigated land provided must range from 0. Where the household becomes an out-grower the irrigated land will be much more. In addition it must be ensured that each household has land for housing and livestock.
Certainly ha of irrigated land will be inadequate to accommodate the households. Furthermore some of the displaced households must be accommodated as sugarcane out-growers, and producers of other products and services, to the Ethanol Project. These adjustments to the resettlement strategy must be applied retroactively to the resettled households.
Other social safety nets and facilities designed to accord the displaced households sustainable means of livelihood must be developed and provided. These should include feedstock schemes, general infrastructure provision, schools, and clinics.
The Ministry of Agriculture in consultation with other relevant ministries must develop a detailed smallholder resettlement model that takes into account the elements articulated above. The Company should immediately compensate and resettle the households that had offer letters and were displaced from ARDA estates. With Government and ARDA supervision, the Company should engage the farmers directly and pay the compensation in lieu of the land chishmbanje rights that were lost, and negotiate terms for the farmers to continue to live on the estates as out-growers and producers to the Ethanol Project.
Of the farmers who held sub-leases in ARDA estates, have stayed on as out-growers of sugarcane to the Project.
All payments to these farmers are effected through ARDA. With Government and ARDA supervision, the Company should go into direct arrangements for projwct of these farmers, and should avoid delays in paying for crop deliveries. In addition to enabling displaced households to be sugar cane out-growers and producers of subsistence crops on irrigated land, they must also be enabled to grow other cash crops such as cotton and wheat, which were the bed-rock of commercial agriculture in Chisumbanje area.
Mutambara Report on Chisumbanje Ethanol Project – Nehanda Radio
The Company must play a facilitative role in this extra endeavor, which is not part of the sugarcane out-grower scheme, but rather an effort to address the broader social and commercial concerns of the community.
It is unfortunate that some of these crops were insensitively ploughed down by the Company. This is completely unacceptable. This compensation must be paid immediately. The rest of the compensation that has not been provided must be paid immediately. Verified reports from the displaced communities indicate that livestock was lost through being shot, drinking contaminated water, or by the levying of undue and oppressive fees for trespassing. A total compensation of US20 There are few individuals who were victims of violence, contaminated water, and unsafe working conditions.
Rehabilitation of, and compensation to, these people amounts to about US15 The Company must swiftly install a water purification system for the contaminated water from the plant before it is recycled for human and livestock consumption. Care must be taken that drinking sources for people and livestock are not linked or exposed to the fertilizer rich by-product water from the ethanol plant, which is recycled for irrigation. The Project must take cognizance of the fact that households will have livestock and thus mechanism of coexistence with this reality must be put in place.
In order to avoid future acrimonious community relations, Government and ARDA should maintain an effective oversight of the implementation of the Project. Specifically, the current Inter-Ministerial committee should continue to supervise and monitor the process assisted by its Working Party of officials. At the local level, the District Joint Implementation Committee should be broadened to include the Council Chairperson, all local chiefs, the local Member of Parliament, two Councilors, two workers union representatives and four representatives of the displaced and affected households two from Chisumbanje and two from Chinyamukwakwa.
The grievance that not enough local people are being employed must be addressed. As illustration Greenfuels employs a total of workers. Out of that number workers are from the Chipinge District translating into This is too low. The company must strive to raise their overall local employment equity. In particular, all the low skill jobs must go to locals. Of course we need promect balance our resolution of this grievance with desire to promote national cohesion and integration. The allegations of racism at the Company were not fully substantiated.
However, the fact that they were made poject a number of stakeholders is sufficient basis to encourage the Company to improve its racial harmony by treating all employees with equality and dignity, irrespective of race.
This must be reflected in all employment and management practices including hiring, pay, benefits, appraisals, promotion, and shop-floor treatment. The disputed figures on the numbers of workers vs. Going by the minimum number as reflected in NSSA records, the jobs at stake requires that Government takes urgent action to save the Project. In terms of the technical and business related issues and problems, the solution matrix consists of converting the entire project into a JV, making the pricing of ethanol competitive, engaging in comprehensive marketing of ethanol blends, while gradually adopting mandatory blending.
The following specific solutions and actions are recommended in order to enable resumption of the Ethanol plant operations in as short a period as possible:. The Cabinet decision to convert the Project from a BOT to a JV must be upheld and implemented within the proposed chusumbanje of two months.
In fact once concluded this conversion to a JV will make most of the other technical and business issues easily resolvable. Mandatory blending should only be considered within the context of a JV.
We cannot have mandatory blending for one private producer of ethanol.
If there were several producers it might make sense. This should be prlject immediately, on the assumption that the conversion from the BOT to a JV is now irreversible. The legal instrument required and other supportive measures must be put in place.
Prpject mandatory E5 fuel specification would increase the uptake of ethanol fourfold to 2. For the abundance of caution, Greenfuels design an acceptable insurance policy framework that will compensate motorists in the event of any damage to vehicles due to the use of E5. To achieve this, research work should start now.
For now, the blends E10, E20, E85 and E must continue as optional products on the market projecg vehicles that are compatible with them.
The logistics and infrastructure for all the blending levels must be developed quickly. In fact, blending logistics must be rapidly developed for fuel coming through all the different entrance chisumbabje into the country, be it by road, rail or pipeline. Policies should be developed that encourage individuals to import vehicles which take ethanol blends. Such policies can take different forms but Government should be the main driver of the efforts to increase the fleet size so that there will be increased uptake of ethanol blends.
In addition, where feasible, gadgets which adjust vehicles and make them compatible with high levels of ethanol must be procured. The issue of pricing of ethanol should be based on the best practice formulae and be regulated. It must reflect regional and global pricing eethanol ethanol, and take cognizance of the low caloric value of ethanol.
It must take into the chixumbanje build up involved in producing a litre of ethanol in Zimbabwe Greenfuels and Triangle and the landed cost build of landed fossil fuel unleaded petrol. On the basis of the analysis done, with the motivation to encourage consumers to use ethanol blends, while jump-starting the Company, the generous price of 85 cents per litre of ethanol is suggested.
The actual price should be The price of 85 cents a litre, will chisumbanue the prices of the blends will be as follows; E5 US1. From the analysis of the impact of the price of ethanol on the price of the blends it is clear that only competitive pricing will make the blends attractive.
In fact, with the correct pricing of ethanol and effective marketing there might be no need for mandatory blending. Consequently, the price of 85c a litre of ethanol being suggested is just a starting point.