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PROJECT PHASES

The project will be rolled out in two phases:

PHASE 1:

Flagship project (April 2013 onwards (5y.)) a joined venture together with SADA , Wienco Ghana Ltd. and the Wageningen University & Rebel International will support:

  • Irrigation and bulk water infrastructure (for initially 400 ha) (250 ha pivot irrigation at Nucleo / model farm + 150 ha irrigated small Smallholder Farmers)
  • Expansion of out-grower (rainfed) support (initially 500 ha up to potentially 6000 ha) into the overseas area, including soil and water conservation practices;
  • Knowledge transfer promoted. Information on soil, water and irrigation practices should be communicated in simple language to the farmers (in twinning arrangements with international Universities (Wageningen), Wienco Chair, UDS,
    and SARI institute), Government extensions services and the private sector;
  • Set-up, training and the provision of farm mechanization services;
  • Outset of a road map for the development of storage facilities, access roads, solar and mini hydro – power facilities;
  • Feasibility, design and social environmental impact assessment (SEIA) study for the large scale commercial agricultural (20.000 ha) completed

For the implementation of flagship project phase (2013 – 2017) 11,6 M million euro has been set aside of which 60% (or 6.9 M euro) is secured through the Sustainable Water Fund (FDW) the Dutch PPP Water facility which aims to finance projects in the area of water safety and water security. The remaining 40% will be covered by the Strategic Partners namely Wienco Ghana Ltd. 3.2 million euro (27.6%), SADA, 0.8 million euro (6.9%), Alterra – Wageningen University 0.6 million euro (5.2%) and Rebel international 0.04 million euro (0.3%)

PHASE 2:

The up – scaling phase (also referred to as the Sisili– Kulpawn XXL project) – (2015 onwards) will focus on the development of a long-term public-private partnership underpinning the envisaged water management infrastructure and assets including :

  • The terms of design and construction of the main bulk water infrastructure (including funding/financing and operation)
  • Negotiate long-term government commitment / support that enhances the viability of the project (through e.g. capital grants, certain guarantee instruments, operating subsidies, tax exemptions etc.)
  • Construction of the dam(s), reservoir development (totaling 500 Mm3) and expansion of commercial irrigation practices and facilitate the introduction of (new) cash crops such as sugar cane, cotton, soya (and others)

The financial feasibility, the socio – economic and environmental impact of the XXL Sisili–Kulpawn project will be assessed on the basis of a number of investigations, research and consultations for the agricultural and industrial components .

One of the key conditions is that financing for the Water Storage and Bulk Water Conveyance will be acquired separately from public or concessionary financing institutions outside the project.

At pre-feasibility level (AGRICANE, 2013), the Project Capital cost estimates were split into Water Storage and Bulk Water Conveyance, Agricultural and Industrial cost. It must be stated that these are still rough estimates and will depend on the outcome
of more detailed planned investigations.

The estimated cost for the Dam and Bulk Water Conveyance include the dam wall and associated infrastructure, water conveyance, central roads and buildings, equipment and project preparation costs (EIA etc). The cost estimates for Agricultural.

Development (Nucleus Estates & Out – growers) includes bush clearing, land preparation and leveling, Secondary Bulk Water supply (from the main Bulk Water canal to the Nucleus or Smallholder irrigation plots), overhead irrigation systems,
drainage works and ancillary infrastructure, project management costs. The cost estimates for the Industrial Plants (approximated from current projects in East Africa) include the sugar factory, together with Ethanol Distillery and Power plant (30 MW Turbo Alternator) a Rice, Maize and Soya processing Mill.

The estimated cost are:

  • Agricultural Development (17.540 ha) combined Nucleus and Out – grower farms): US$ 285 million
  • Industrial Plants: US$ 160 million and
  • Dam and Bulk Water conveyance US$215 million is estimated (also to be further integrated under the PPP structure).
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