Wednesday, 3 December 2003  
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US $ 32 million sugar factory for Bibile

by Sarath Malalasekera

Uva Sugar Company, a joint venture with a Chinese collaborator has obtained approval from the Board of Investment to begin operation of their US $ 32 million sugar manufacturing factory and distillery plant at Bibile in the Moneragala district.

The Factory will solely depend on out grower farmers for the required sugar cane. The company neither owns nor maintains any sugar plantations except its pilot nursery, in extend of 200 acres. Chairman of the Uva Sugar Company Nimal Amerasinghe told the Daily News.

He said that out growers will be given attractive incentives providing land preparation, seed plants, fertilizer and chemicals on a credit scheme. Each farmer family that is contracted to supply sugar cane to the company will be paid monthly allowance of Rs. 2,000 until they harvest their first crop. The company will provide a comprehensive Agricultural Service Package to the farmers free by an expert Chinese agricultural 1st. More than 3,000 farmer families in the Monaragala District will have a sustained livelihood under this project.

This project will provide permanent employment to 500 and over 250 casual and seasonal workers. The Chinese collaborators will implement a Comprehensive Technical Package consisting of plant, machinery, erection, commissioning and installation of the production line. They will manage the factory and the distillery on a profit sharing basis and during the first few years, will train local personnel to run the factory. A team of highly qualified local as well as overseas professionals will manage the project.

The capacity of the sugar mill is 1,500 TCD and the distillery being 15,000 litres per day of Extra Neutral Alcohol (ENA). At its peak the company is expected to produce about 25,000 MT of Plantation White Sugar during 210 crushing days per annum. Hence, this project is capable of saving over 7 Million US $ per annum in foreign exchange that will otherwise be spent in importing sugar apart from the savings in importing the Rectified Spirits for the local liquor industry. Amerasinghe said that action will be taken by the company to address environmentally sensitive issues, such as effluent and water treatment. Although there is a river bordering the site he said that will not be tapped for the company's water requirements. Agricultural wells will be dug for this purpose. About 60% treated water from the factory will be re-cycled and excess water will irrigate the nursery.

The bungalows, residential apartment, office complex and the recreational facilities will be constructed with least disruption of the environment.

A mini-tourist resort amidst these facilities consisting of a guest house, swimming pool, tennis court will be set up to cater to local and foreign tourists who visit the Galoya National park which is in close proximity to the project site. There will also be a mini supermarket and a fully equipped medical to serve employees and residents of the surrounding villages.

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