Omo-Kuraz Sugar Development Project

It is a project found in South Omo Zone (Selamago and Gnanegatom Districts); Bench-Maji Zone (Surma and MieinitShasha Districts) and Keffa Zone (Diecha District) of Southern Nations, Nationalities & Peoples Region.

Two among four sugar factories planned to be constructed under OmoKuraz Sugar Development Project using sugarcane developing on 100 hectares of land are completed. They have the capacity to crush 60 thousand tons of sugarcane a day. When they start operating in full capacity each of the three factories are expected to crush 12 thousand tons 1of sugarcane per dayand individually produce 2 million500thousand quintals of sugar as well as 28 million liters of ethanol a year. In addition to these each factory will generate 60 megawatts of electricity sending 40 megawattto the national power grid.

Similarly, the remaining one factory up on completion crushes 24 thousand tons of sugarcane per day and produces 5 million quintals of sugar and 56 million liters ethanol a year. It is also expected to produce120 megawatt power of which using 40 megawatt for its own sends80 megawatt to the national power grid.

Out of these four sugar factories planned to be constructed under OmoKuraz Sugar Development Project two of them, constructed by a Chinese company known as COMPLANT, namelyOmoKurazNumber two Sugar Factory and OmoKurazNumber Three Sugar Factory have started production while the rest two are under construction.

Investment Cost

Close to 34.8 billion birr is spent for the four sugar factories in OmoKuraz Sugar Development Project for capital investment( irrigation infrastructure,land preparation, sugarcane development, housing, factory construction,etc.); project pre operation and operational budget till March 2018.

Irrigation Infra structure Construction and Sugarcane Development

Vast irrigation scheme which enables sugarcane development on 100thousand hectares of land is going on focusing mainly on Omo River.

Coffer Dam

A coffer dam built for the supply of water to the project is giving service.

Main Canal Construction

55kmlongmain canal infrastructure construction is completed on the left bank of Omo Riverwatering the sugarcane development currently. Similarly, from the total 134 kilometers longmain canal construction on the rightbank of theriver, 43kilometers is completed and is giving service.Canal digging of the remaining91kilometer main canalis complete left only with structural work.

So far 30 thousand hectare land is made irrigableof which16 thousand hectare is covered with sugarcane.

Social Benefit

Construction of infrastructure and social service institutions

In collaboration with SouthernNations, Nationalities and Peoples Regional State,Sugar Corporation is implementing variouslife-style-changing activities to benefit the local societyand hence bring about regional transformation.

Accordingly,the Corporation supported 79 million303thousand 352.30 birr for the construction of infrastructure and social service institutions(schools,health posts,community policing offices, local areaoffices,association offices, mills, animal health posts, potable water, internal roads, irrigated land supply) are constructed and are giving service.

Compensation Fees

One million 141thousand 165birr compensation fee is given to pastoralists whose beehives and crops had been affected due to coffer dam and main canal construction work.

Public Discussion and Mobilization

2million 584 thousand 309.30 birr is spent for the public discussions held at different times on the benefits of the sugar development.

Skill Training

2 million 866 thousand 658 birr is spent for a medium level skill training so as to benefit the local society from the job opportunities created at the project.

Job Opportunities

Ever since the project started in 2010 more than 110 thousand local community members have got job opportunities by the project, contractors and small and micro enterprises on provisional, permanent and contractual basis.

Sugarcane Out growers Associations

1653.75 hectare land is developedat the project in order to benefitpastoralists as out growers.Each pastoralistgot 0.75 hectare land. This totally is 800.25 hectares for 1067 pastoralists who are organized in four sugarcane outgrowing associations with legal recognitions.The remaining 853.5hectare land covered with sugarcane is ready to be allotted to pastoralists who are going to be settled around organized as out growers.Using the irrigation infrastructures made available for them, pastoralists have also began producing crop for the first time in their history that transforms them into semi farmers.

Generally the Corporation allocated about 86 million birr for the benefit of the local society excluding the cost of irrigation infrastructure building.

OmoKuraz Number Two Sugar Factory

Its construction is officially begun inJuly 2015 by the 6.67 billion birr loan from the Chinese Development Bank. The factory has entered regular production following its trial production on March23, 2017.

This huge project built by the Chinese COMPLANT Company has the capacity to produce 8thousand to 10 thousand quintals of sugar daily.

OmoKuraz Number Three Sugar Factory

It is found between Kaffa and BenechMaji zones which borders the Omo River. It was inaugurated by FDRE Prime Minister Abiy Ahmed(Ph.D) and begun work on October 14 2018. Construction of the factory began on March11,2016 with more than eight billion birr loan secured from Chinese Development Bank.

This factory built by the Chinese COMPLANTCompanyhas the capacity of producing 8 thousand to 10 thousand quintals of sugar daily. As it is up-to-date in technology, it can produce raw,plantation white and refined sugar as per the demand of the world market.

Entrance of OmoKuraz Number Three sugar Factory in to production makes the number of sugar factories operational in Ethiopia to eight and they are WonjiShoa,Metahara,Fincha,Kessem,Tendaho,ArjoDiddessa,OmoKuraz 2and3).

OmoKurazNumber One and Number Five Sugar Factories

Both factories are under construction.OmoKuraz NumberOne Sugar Factory will have the capacity to crush12 thousand tons of sugarcane a day while OmoKuraz Sugar Factory Number Five will have the capacity to crush24 thousand tons of sugarcane daily.

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