E2 BILLION FOR AGRICULTURE TRANSFORMATION WITH SWADE

MBABANE – All is in order for the rollout of the second phase of the Lower Usuthu Smallholder Project (LUSIP II) valued at the E2.01 billion.

The total project cost, including physical and price contingencies, was estimated at E2.01 billion net of taxes and duties. Minister of Finance Martin Dlamini has disclosed that continuation of  Phase II of the project goes ahead with government’s allocation of E714 million.  In the project appraisal report, price contingencies were based on projected local and foreign inflation rates of five per cent and two per cent per annum, respectively. It was reported that the physical contingencies ranged from zero per cent (consultants’ salaries) to 10 per cent (works), based on common technical practices. It has been mentioned that this will be financed by African development Bank  (AfDB) loan of E855.13 million covering the cost of the Main Canal System (Component 1); European Investment Bank loan of E498.958 million (Component two); BADEA and Kuwait Fund Loans of E437.56 million (Component three); and government counterpart contribution of E216.33 million. 

It has been reported that the government’s contribution will finance the cost of the Project Management Component to the tune of E194.99 million, and a fund shortfall of E21.34 million under component three. “All the donors have committed to parallel financing of the project,” reads the report in part. It was explained that the objective of the project was to alleviate poverty in the project area by transforming the existing subsistence farmers into commercial farmers on irrigated lands producing both food and cash crops (principally sugar cane). It is to support the development and utilisation of the water resources of the Lower Usuthu River, through provision of irrigation infrastructure to enable smallholder farmers to intensify and diversify their agricultural production, building on existing market linkages with the private sector.

It is also aimed at establishing an effective management of infrastructure and equipment for the sustainable improvement of production and cost recovery. The LUSIP Phase II has four main components, namely: development of the Main Conveyance System (MCS); development of Secondary Irrigation Pipe Network supplying the different irrigation blocks, each covering 100-700 hactares; on Farm Infrastructure Development; and project Management and Engineering Supervision. Swaziland Water and Agricultural Development Enterprise (SWADE), Chief Executive Officer (CEO), Samson Sithole said through the second phase of LUSIP, they intended to increase the number of people being empowered through the project to enable them to fend for themselves. He mentioned that they had already reached out to over 80 000 people in both phases of LUSIP I and II together with the Komati Development Programme.
“We are looking at increasing the number of people who benefit as part of the programme, through more agricultural projects and job creation,” said Sithole.   

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: