Refinery proposal leaves residents uncertain of future

May 26, 2012

Flavia Katusabe's zeal to grow more food for her family's livelihood and also for sell reduced when she heard rumours that the land was earmarked for petroleum industry.

By Ibrahim Kasita

Flavia Katusabe, 21, was born at Kitegwa Village, Kabale village, Buseruka sub-county in Hoima and entirely depends on the land her parents inherited to feed her husband and their seven children.

But her zeal to open up new gardens and grow more food not only for the family livelihood but also for sell reduced when she heard rumours that the land was earmarked for petroleum industry.

"No need. Why waste my energy knowing the land is going. I don't know when and if they will pay us because I hear it is a government project for petroleum industry," Katusabe said.

Indeed, in the foreseeable future Katusabe and other households in the area will surrender their land to government to establish a refinery project.

The project needs 29,000 hectares of land for a modern airport, petro-chemical industries, and staff quarters for the workers and waste management operations, according to Foster Wheeler, the consultants who conducted Uganda's refinery project feasibility study.

Six locations were assessed but the study zeroed on Kabale comprising 14 villages as suitable for the refinery project because, according to the study, it was "sparsely populated" which eases the relocation and compensation process.

It is not clear how many households will be affected by the project but statistics from finance, planning and economic development ministry indicate that the Buseruka sub-county, where the 14 villages are located, has close to 40,000 households.

Inadequate information

More young boys and men wake up to drinking alcohol every morning when they should be tending their gardens, according to Fred Kasangaki the Buseruka sub-county chief.

“They are on a drinking spree. They have abandoned farming,” he said. “The danger is food shortage and hunger will hit us terribly.”

Confusion, uncertainty, anxiety and high expectations reign due to lack of information, inadequate stakeholder engagement, consultations and public disclosure.

“The refinery is a good project but people need to be informed and sensitised,” Oscar Beddi, the Kyapoloni village chief said.

“The compensation issues should be handled with care. It is annoying that we are not updated about the whole process. No agreements have been made. Our people have been ambushed. This has caused fears.”

James Isingoma, a resident of Kitagwa village, fears that he will not be compensated because he has no title for his land.

“When I start the process of obtaining the land title I am stopped. The land board is no longer processing new land titles,” he said.

“We are in darkness. We don't know how much money will be paid. We want enough compensation.”

Christopher Ovurutho, an elder and opinion leader in Kyapoloni village said: “Here there is neither debate nor dialogue. No communication. We are told not to ask for explanations,” he claimed.

“People’s voices are not heard. We live in fear. People have resorted to sell their land cheaply and go. Our interest is not to sabotage the refinery project but we also want fair and equitable compensation for our land.”

George Bagonza, the Hoima district head, said there is “too much expectation” as well as anxiety because of uncertainty.

“Yes, it is true people have stopped farming and I think we (leaders) have not done enough to sensitise them,” he agreed.

“We should quickly identify the people affected by the project. Don’t forget that the refinery is a long-term project and people should continue growing food to sustain themselves.”

Either eat the cake or keep it but not both

It is only last week that government announced the start of the refinery land boundary demarcation exercise and its resettlement action plan.

Fred Kabagambe-Kaliisa, the permanent secretary in the ministry of energy and mineral development, said the objective is to establish land ownership, properties on land and loss of economic activities that will later lead to compensation.

Then, according to the permanent secretary, the report will be forwarded to the chief valuer for compensation or resettlement depending on the terms and conditions with the affected people and the current compensation standard rate.

“But now who is stopping them from growing seasonal crops like beans, maize and other cereals which grow fast? First, we are demarcating the land through a survey. Then we shall enumerate the people who will be affected by the project,” he said.

“Then we shall value the land. You can’t eat your cake and have it. You (people) will be resettled at a cost. But again they want to continue to be there forever.”

Relocation versus cash compensation

Resettlement activities should result in measurable improvements in the economic conditions and social well-being of affected people.

This calls for wide consultations with affected people to develop a reasonable consensus on the methods and formulas for assigning value to lost assets and income forgone during resettlement.

Women like Katusabe have requested for special provisions to be made for households headed by women and children, the elderly and disabled

“I request that the Government looks for land and builds a permanent house with iron sheets, gets land titles and connects us to piped water and electricity," she appealed.

“This way I will be sure for my safety and children’s future. Otherwise my husband will drink all the money. I need land to continue growing food,” she says.

The refinery is a very good project and will enable value addition to the crude oil, boost employment to the locals and give chance to service provision by local entrepreneurs.

But the process of acquiring land must be a transparent and accountable and ensure fair and equitable compensation for livelihood sustainability. We need to talk, listen and act accordingly.

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