THE construction of a multi-million bio-diesel project in Kyenjojo district has been abandoned.
In February last year, Roshani Bio-tech was given a piece of land by the Government at Kazinga in Kyaka Refugee Settlement area to set up the factory worth $18m.
The factory was to extract bio-diesel from Pongamia Pinnatta, an Indian plant popularly known for its oil qualities.
Construction of the factory, the first of its kind in Uganda, was supposed to start December last year but since then, no work has commenced.
James Byamukama, the district chairperson Kyenjojo, said last week he was informed by the investors that they can not go ahead with construction of the factory, citing financial constraints.
â€œLast week, the investors approached me that they are putting the project on hold because of credit crunch,â€ Byamukama told The New Vision last week.
Byamukama further said 1,000 residents of Kazinga, who were going to be displaced by the construction of the factory, would not be relocated.
Charles Mubiru, the Kyenjojo resident district commissioner, said he has written to the Prime Minister, Apollo Nsibambi, explaining the fate of the project.
Nasser Basajjabalaba, the Roshani Bio-Tech country director, could not be reached for comment as his phone was switched off.
The proposed construction of the project had met resistance from residents of Kazinga parish.
In March this year, two residents of Kazinga were shot dead by a Special Police Constable after they raided the construction site and destroyed property belonging to the investors.
The residents claimed ownership of the land where the factory was to be constructed. It would have created over 1,000 jobs.
Financial crisis hits Kyenjojo bio-fuel project