By Jackson Kitara July 22, 2017
Government has given 17.7 million dollars to Horyal investment holding company limited for the construction of Atiak sugar factory and paying back loan
Work on the sugar factory had grounded to a halt after the Dr. Amina Hersi Moghe, the Chief executive officer Horyal investment holding company limited failed to pay back a loan she had secured for the construction works
The factory which is on leased of 24,000 hectares of land on which the sugar cane cultivation has already commenced. Currently, the company is installing a Greenfield Raw sugar cane crushing plant with a capacity of 1,650 tons per day and 12 MW power plants already at 70% completion.
The factory was supposed to be opened officially in November last year, but the company run bankrupt
The support follows a request by Amina to government last year for financial support through Deputy Speaker of parliament, Jacob Oulanyah Okori.
Amina last year pointed out that “as a private company I have spent most of my money on opening road, extension of electricity to the factory and purchase of transformer where I am building Sugar Factory”.
She explained that she borrowed a short term loan from Crane bank, but the interest rate was high at 35% Dollars which she is finding difficulty paying back before the factory has started operating which finish all her money and wants government to support her
“I ask government to support me with concessionary loan for five years grace period and should treat with public interest because 14,000 hectares of sugar cane will be getting ready market in the factory”, Amina asked
Minister of Finance and Economic Planning, Mathias Kasaija says they have given the company 12.5 million dollars for completion of the factory and 5.2 million dollars to repay the loan she borrowed
Kasaija while speaking during a visit at Sugar factory located at Gem Village, Pacilo parish, Atiak Sub County in Amuru district on Friday said the 12.5m dollars money was taken from agricultural credit scheme fund while the 5.2m dollars was money got from selling share from Kinyara sugar works.
Kasaija said the government decided to support Amina because the banks are threatening to sell her assets to pay banks’ loan she borrowed. He said Bank of Uganda and DFCU was demanding her to pay 5.2m dollars to restructure her loan.
“We decided to support her because the project is not for her, but for the people here in Amuru so that this areas is developed equally”, Kasaija noted.
Kasaija also said the government has supported out growers with NUSAF 3 and NAADS funds for bush clearing, seed cane and planting on 14080 acres of land.
He advises investors not to apply for land from Kampala, but come to land owners to discuss term and condition so that they acquire land in Acholi region.
Kasaija asked local government of Amuru district to open up feeder road and to open access road for out growers to sell their sugar cane to the factory.
Amina advises people of Acholi to change their mind set that they are unable and unemployed, but engage in doing productive work in your land.
“I do not want to hear people crying about poverty, yet you have eyes, hand and chunk of land. There is a lot of job you people can do if your attitude is positive to change you lives”, Amina said
Amina asks government to construct bridge at Unyama River so that it connect the factory and out growers.
Michael Lakony L.C 5 Amuru district asks ministry of trade to include Horyal investment holding company limited (Atiak Sugar) in the zoning of the sugar works in Uganda.
“There is politic in development, when you go to office of ministry of trade, you will never see, in the zoning, you will never see Horyal investment holding company limited, Atiak sugar factory and sugar cane plantation in Amuru”, Lakony said.
Lakony said by doing that ministry of trade is denying Horyal investment holding company limited, Atiak sugar factor opportunity and disservice for investment of the factory.
He said the government should open the way for the factory to allow money flow for investment for better.
Lakony said “you rather waste your money here where there is already 70% completed other than talking for something which is not yet established like Madivani sugar in Amuru where the land is not there, but here you only spend 30% then allow investment and production to allow people of Amuru to be wealthier,”.
Lakony said investor should come and negotiate with land owners if they want to acquire land and it will be given on terms and condition apply; other than requesting for land from government, on television, radio and print media.