PROJECT ENVIRONMENTAL

TITTLE: CONSERVATION AND

STRENGTHEN FOOD SECURITY IN NZEGA DISTRICT COUNCIL

EXECUTIVE SUMMARY
This proposal addresses the opportunities for Nzega District Council to
conserve its environment and increase food security for the promotion of
people’s livelihood. The proposal outlines the initial plan in undertaking the
project and setting initial cost estimates to complete the project. In
particular, it outlines the value opportunity that exists in the properties
market and suggests how to invest on different infrastructures that will
enable the proposed project to be implemented. It also sets out financial
projections and analysis in order to provide financial and economic
justification for the proposed project investment.

The main Promoter of the proposed project is Nzega District Council, which
is a Local Government Institution under the President’s Office Regional
Administration and Local Governments (PMRLG).

The proposed project will be modern machines and other project facilities. It
has been designed to accommodate different facilities such modern
slaughter, auction market, agro processing factory, construction of charco
dams, waste management facilities, ground water facilities, bare foot
tourism, parking yard, warehouses, general business, and administration
block Public toilets, forest processing facility.

Total estimate project cost is 14.092 billion and its financing will be
through long-term loan and equity (land value).

In regard to marketability of the project, the proposed Nzega District Council

environmental conservation and strengthening food security project is a
unique in the region hence; its demand cannot be examined through related
existing facilities. .

In view of the above information, it can be concluded that the sought project
is technically and financially viable. Therefore the proposed project is
recommended for funding and immediate implementation.
 1.0 INTRODUCTION

Nzega District Council is one of the eight Districts Councils of Tabora Region.
The major goal of the Council is to create an enabling environment, which
will enhance capacity of the Local Government to deliver services to the
people efficiently and effectively in socio-economic activities.

The GDP for Nzega district council is 400,000/= per annum which is
relatively low to poverty line. Thus economically and socially the people of
Nzega depends mainly on available natural resources to carry out life
processes such as fuel, cultivation and grazing as the result these activities
increases environmental degradation leading to food insecurity.

1.1 BACKGROUND

Nzega District covers an area of about 6,589 square kilometres and located
between 32 30’- 33 30’ longitudes east of Greenwich and latitude 3 45’–5
00’ south of Equator.The District borders Igunga District in the East, Uyui
District in the South, Kahama District in the West and Shinyanga rural
District in the North. According to National Population and Housing Census
Report of 2012. Nzega District Council is estimated to have total population
of 478,066 and the total number of households is 79,678 while 6 is the
average household size, population growth rate is 2.9% per annum. With
Nyamwezi, Waha and Sukuma as main ethnic groups; however there are few
other tribes in the District.
Main economic activities in Nzega District Council include cultivation of food
and cash crops in an average of 1,600 square kilometres. Food crops
include maize, paddy, cassava, sweet potatoes, legumes and sorghum. Cash
crops are cotton, tobacco, groundnuts and Sunflowers. The District Council
also engaged in livestock production with a total number of 469,186 cattle,
209,200 Goat, 48,503 sheep, 464,729 Poultry and 1,173 pigs. Fishing
activities take place on small scale for domestic consumption and local
informal trade.
According to the 2005 poverty and Human Development Report for
Nzega District Council it indicates that the percent of its people living
below basic needs poverty line by 35%. The per capita income is
estimated to be Tshs. 400,000/=
 Nzega District Council like other Districts in the country undertake all
issues pertaining to community development and provision of social
services including recreation in few available centres which actually
lack essential social services.

The District Council has a lot of investment opportunity areas including

forestry, fisheries, agriculture and livestock (Agro –processing) and
tourism which require exploitation.
The achievement on available opportunities will depend on innovation
to environmental conservation and food security through better
planning, coordination and community participation.
1.2 Statement of the problem.
Basing on the current GDP the people of Nzega District Council live
below poverty line apart from being involved in different production
perspectives mainly being cultivation and livestock production. Most of
the production practices held end on low productivity highly
contributed by ongoing environmental degradation caused by human
economic activities, as the result this has impaired livelihood both
social and economical.
1.2.1 Problem justification.
For number of year’s crop and livestock productivity has been
decreasing due to climate change as the result of continuous
environmental degradation. Crop production especially paddy has been
decreasing on average from 4 Tons per hector in 2005 to 1.2 Tons per
hector in 2017. Average carcass weight decreased from 140 Kg per
cattle in 2005 to 80 Kg per cattle in 2017 due to insufficient feeds both
in quantity and quality.
1.3 Objective.
1.3.1 General objective.
Environmental conservation and strengthening food security in Nzega District
Council enhanced.
1.3.2 Specific objective(s)
 To reduce environmental degradation in the District through aforestation,
reforestation, use of technology in timber processing and production of briquette.
  To facilitate water availability and supply to the scheme through construction of
2 charco dam and harvesting ground water at Lusu and Kanolo in Nata ward.

 To increase paddy value chain through use of improved technologies in

production, storage and processing.
 To increase livestock products through establishment and improvement of
infrastructures, genetic potentials and feeding.
 To improve solid waste management in growing urban centres of Bukene, Ndala
and Nata.

1.4 Scope of the Project.

The project for food security will basically cover specific strategic investment
areas in the district where by environmental matters will cover all 36 wards. The
following are 4 strategic investment areas against interventions to be carried for
five (5) years consecutively.

No Item Intervention / Activities

1 Forest Management -Tree Planting
and Environmental -Tourism
Conservation
-Demarcation of forest reserve
-Modern charcoal
-Timber processing
2 Establishment of -Construction of 2 charco dam (Kanolo and Lusu)
charco dam and -Production and distribution of improved seeds
paddy allied value
addition -Construction of warehouse at Nata
infrastructures at -Installation of Processing machine
Nata Ward

3 Improvement of At Ndala market:

livestock products -Parking infrastructure
and Ndala market
-Slaughter house

-Hides and skin shade

-Permanent water sources and its

 distribution.

-Waste disposal points

-Public Latrines

-Water and feed troughs

-Fencing of whole market area.

-Electricity installation

-Construction of collection yard to

connect the load and unloading rump

-Construction of dipping facilities.

- Construction of Police post

ii) Improvement of Kisasiga ranch

-Use of improved bulls and Artificial
insemination technology.

-Pasture establishment.

-Road and road networks 103Km.

-Construction of 6 water boreholes.

-Feed processing machine (Blood).

-Making of ornaments from animal

By-products (Horns and hooves)

-Leather goods industry(processing

machine)

-Milk industry (Milk collection centre)

4 Improvement of -Construction of 15 waste collection points
waste management (Bukene 5,Nata 5 and Ndala 5).
-Construction of 3 waste dumps (Bukene 1,Nata 1
and Ndala 1).
-Procurement of 2 waste collection vehicles
stationed at Nata and Ndala.
-Procurement of 1 waste compacting machine.
 2.0 PROJECT INTERVENTION AND APPRAISAL
This project intends to intervene and contribute in solving ongoing social
and economic problems existing to the farmers in Nzega District Council
due to low productivity on agriculture and livestock farming activities lead
by continuous land degradation. The establishment of this project would
enhance contribution to environmental conservation, hence food security
and income generation for well being of the council.

The project shall include different activities which include use of available
local resources and technology to produce different products and services,
through infrastructures of charco dam, auction market, ranch, forestry and
adding value along chain by using warehouse, installation of agro-
processing machine for processing, grading and packing and transportation
to market.

2.1 Forest Management and Environmental Conservation.

The daily human activities on both planted and natural forest trees harvested
without replacement mainly depend on the population density. Deforestation
increase the vulnerability of soil erosion as it leaves the land bared. The reason of
deforestation is for agriculture activities, charcoal making, firewood and timber

2.1.1 Project expected results

The project will come up with a total number of 1,500,000 trees per year will be
planted in different areas of the district. Natural forest improved, each village
should have 10 acres of Village forest and special program for forests products
harvesting.

2.1.2 Project stakeholders

The project will involve different stakeholders including institutions, environmental
conservation groups for effective performance of the project

2.1.3 Native species, cashew nut and mangoes production

Fuel and charcoal are the main sources of energy in Nzega district council
which are mainly used for domestic purposes and other activities such as
tobacco and bricks burning and local brewing. Problem encounter fuel wood
and charcoal production results to land degradation soil erosion, removal of
carbon sink, loss of wildlife habitat and biodiversity, desertification,
greenhouse emission and drought. Nzega district council has exercising the
campaign of tree planting with different of species to reduce pressure on the
natural forest and woodland.
Nzega District Council intends to implement profitable large scale cashew
nut and mangoes production and plan so as to increase and improve not
only community livelihood but also District council income, reduce poverty
and ensure households nutrition and food security and land conservation.
To achieve the set out goal planned to combine efforts and efficient
utilization of the available resources found within district council.

2.1.4 Opportunity
The whole district land is conducive for cashew nut and Mangoes cultivation
due to prevailing favorable condition. Cashew nut and mangoes is known to
be an easy crop to cultivate, it is planted even into exhausted soils. Other
opportunities include available markets, accessibility and farmers’
awareness to the crop usefulness. The plan is to involve different stake
holders such as small scale, middle and large farmers, research, religious
and financial institutions, input supplier, transporters and Tanzania Cashew
nut Board

2.1.5 Activities
i. Sensitization of farmers and other stakeholders on importance of
cashew nut in the district.
ii. Establishment of cashew nut seedling and distribution
iii. Capacity building to farmers and extension officers for production.
iv. To invest on processing industries.
v. Sensitize and establish co-operative societies
vi. Collection of crop cess
vii. Monitoring and evaluation of the project.

2.1.6 Production targets of cashew nuts

Different stakeholders intend to cultivate a total of 83886 acreage of which
requires 3330 kgs cashew nut seed that will produce 2,348,808 seedlings.
Distribution of target is as follows.

2.1.7 Production targets of mangoes

Different stakeholders intend to cultivate a total of 74,342 acreage of which
requires 14,683,546 seedlings. Expected production of mangoes is 10 tons
per hectare which is equal to 4 tons per acre, which is 40 bags per acre.
Expected production mangoes per year in District are 2,973,680 bags. This
production will contribute cess of Tshs. 2,973,680,000/=.

2.1.8 Production targets of mangoes

Different stakeholders intend to cultivate a total of 83886 acreage of which
requires 3330 kgs cashew nut seed that will produce 2,348,808 seedlings.
Distribution of target is as follows.
2.1.9 Seedling and expected production

One seedling of cashew nut is expected to produce 6 kgs and products will
increase with years up to 40 kgs. 1 acre consists of 28 plant population
hence will produce 198 kgs per acre. 83886 acres will produce 14,092,848
kgs at just first year.
Budget
A total of Tshs 212,887,950 required for establishment, management,
and conducting of monitoring and evaluation of the project.
S/ Item Kgs/lts Price/kg Costs
n
1 Seeds 3330 5000 166,030,000.00
2 Tubes 9298 2750 25,569,500.00
3 Sheets 290 1500 435,000.00
4 Chemicals 50 lts 20,000 1,000,000.00
5 Fuel 2000 2500 5,000,000.00
Sub total 193,534,500.00
10 % 19,353,450.00
Contingency
Grand total 212,887,950.00

2.1.10 Project output

Output expected from the project include number of established cashew nut
plants, established co operative societies, tons of cashew nut harvested, and
related fruits, increased farmers’ income, cess from sales

2.1.11 Strategies to achieve cashew nut and mangoes production

According to the benefits shown before, the district prepared a 3 years
action plan to establish cashew nut production, budget and requirements
and strategic plan. District council will collaborate with other stakeholders
such as Cashew nut Board of Tanzania, Research Institutes of Naliendele
Mtwara and Tumbi Tabora, district to village level leaders so as to make
use of conducive environment for cashew nut production.

2.1.12 Sustainability of native species (Mninga) and forest

Throughout decades in Tabora region native timber species like Mninga have been
harvested at large amount and their demand seems will still higher in future.
A foresees on this acceleration of mninga demand is an evitable apart from tough
regulation put by authorities. If this is the case we should look an alternative
means where deforestation of native species will be banned or reduced and this is
through increase plantation of native species in parallel with artificial species.
However each village is required to set aside a piece of land 10 acres for plantation
and also natural forest reserve (Ngitile) which will be governed by village bylaws.

Secondly, use of innovation and technology will help to address the challenges on
sustainable forestry and protection of endanger species. Some of the approaches
will include shift from harvesting of large amount of Mninga, introduction of more
efficient processing delinking end-use products from raw wood characteristics and
enforcement of Forestry Management Act, 2002, Environmental Management Act,
2004 and District Bylaws.

Establishment of Wood processing factory installed with innovative machines for

making wood sheets, slicing and plywood sheet, where slices of Mninga or dust will
be used as finishes on surfaces of plywood made from soft timber. This approach
will reduce pressure on the demand for Mninga as raw material.

Figure1. Proposed typical factory for timber processing

Another approach will be use of machine for thermal treatment of wood; this is
more like recycling where pieces timber or raw wood will be treated to meet a
higher quality standard, by reducing moisture, sugar and changes on its colour.
Cyprus timber can be treated look like Mninga product as indicated in figure 1
below.
 Figure2. State of art wood processing technology

Experience indicates that use of these technologies allow more efficient

processing, less waste and more recycling and-use products becoming less
dependent on the specific wood characteristics of raw materials.Also an
introduction of modern charcoal factory which will produce charcoal from crop
residuals and solid wastes like plastic materials.

2.1.13 Bare Foot Tourism

Nzega District is well endowed with forest resources. Area covered by
foerest and woodlands estimated to be 429,584 ha which is equivalent
to 61.7 % of the total District area. Nzega forests include Igombe
River,Ilomelo
Hills,Kagonho,Karitu,Mwakalundi,Mwanhala,Ngukumo,Puge North and
Mwakulu.
These forests blessed with different flora and fauna. Fauna like snakes,
birds, hyena, and also are the routepath of animals like elephants At
Karitu forest reserve there are carves that are more attractive to
different persons.

Today, it has been approved scientifically that barefoot walking has

several health benefits, thus today it has been part of the world
tourism business.
Present, these forests in Nzega District has an opportunity not only for
economic purposes but will help strengthening tourisms in Tanzania
and also will help conservation of native forest as part of
environmental conservation.

Present of these historical denser forests in Nzega has an opportunity not

only for economic purposes but will help strengthening tourisms in Tanzania
and also will help conservation of native forest as part of environmental
conservation.

Figure 1 Models of bare foot test in a jungle

Walking in a deep jungle surrounded by dense greenery and trees is an

amazing by the beauty of the nature, especially when you fel the lookout
spots. This kind of felling is crazy to think that all about compared to artificial
life style in concrete paved city or homes. Test of such beautiful nature bring
relaxation.
2.2. Construction of Lusu charco dam
Lusu irrigation scheme is an existing scheme constructed between 1996 and 1998 by the
Central government under supervision of small- holder Development Program in
Marginal Areas (SDPMA).The Program was financed by an International Fund for
Agriculture Development (IFAD). A gabion diversion weir of two outlets was
constructed to intercept and divert water of Ibole seasonal river to irrigate 600ha of paddy
at Bugesela Sub- village (Mwaluzwilo village) on the left hand side facing downstream
and 600ha at Ifumba village on the right hand side. This irrigation scheme is named after
the ward. The ward is composed of four villages namely: Bujulu, ifumba, Isanga,
Mwaluzwilo, The scheme is divided into two irrigation areas: Bugesela and Ifumba. Lusu
irrigation scheme is located in Mwaluzwilo and Ifumba villages in Lusu ward. The
scheme is located 30 Km from Nzega District Headquarter.

Irrigation by diverting water from Ibole season river has proved inefficient due to the fact
that, frequency of water flow in the river is limited and is of few days when it rains,
resulting to drought during the cultivation period in wet season hence failure of crops.
Water flow in Ifumba main canal is worse as compared to Bugesela main canal. A
conflict of water harvest is experienced between villages of the two irrigation areas due to
inadequate water supply. The villages of both sides propose and are requesting assistance
for provision of a better way of supplying enough and reliable irrigation water to their
fields. They propose a dam construction at reconnaissance survey to be carried out at the
proposed site to assess its suitability for the dam construction.

2.2.1 Irrigation Practice status

Traditional irrigation practices at Lusu started in 1980’s whereby farmers diverting part
of Ibole River to their fields by use of local material and technology. Intervention of
SDPMA by construction the diversion weir and irrigation infrastructures improved the
irrigation system and famers adopted modern cultivation methods through extension
services. Frequent break down of Bugesela main canal at the side spillway and collapse
of Ifumba main canal caused by runoff from nearby uplands were the major challenges to
the scheme. Often famers repaired the canal on their own and sometimes by Government
support. To date, the major problem facing the scheme is inadequate and unreliable
supply of irrigation water. Water is available only when it rains on the Ibole river
catchment area and the river flows for a few days. Irrigation at Ifumba side is practiced
on a small area just adjacent to the river while water does not reach the rest of the area
through the deformed main canal. Irrigation at Mwaluzwilo side is practiced almost on
the whole area but facing a serious water shortage. Harvest is not certain for both
irrigation fields. Complete failure of crops seldom occurs in two consecutive cropping
seasons due to drought. There is a vivid reason for the necessity of the dam construction.
2.2.2Present situation of proposed lusu dam
 The Proposed Lusu dam receives water from Ibole River
 During the heavy rainfall the river is normally flooded with water
 The proposed scheme will serve 2856 people in which 1336 are Male & 1,500 are
Female

2.2.3 Cultivation and market

 The proposed crop to be grown in the scheme area is Paddy

 There is a high demand for paddy at Tabora town and nearby regions like
Singida, Kigoma and nearby countries of DRC and Burundi
 The distance from the field to the middlemen’s market is about three
kilometers

2.2.4 Basic Plan

Basic plan of the district is to construct dam and irrigation infrastructures for the potential
area of about 2000ha. This will be achieved after development of the scheme area by
doing the following activities.

• Feasibility studies and

• Detail design of the scheme area.

2.2.5 Expected result

The proposed irrigation area is expected to increase paddy production from 3.0tones/ha to
7tones/ha

2.2.6 Activities
i) Construction of irrigation canals to irrigate 1200 ha.
ii) Construction of drainage structures
iii) Construction of water control structures and distribution structures along the
canals
iv) Construction of farm access and services roads.
v) Improving of irrigation water management and better agricultural practices
involving soil and water conservation measures
vi) Prepare tender documents and carry out tendering process.
2.2.7 Construction of Kanolo dam

Kanolo irrigation scheme is an existing scheme constructed between 1995 and 1996 by
the Central government under supervision of small- holder Development Program in
Marginal Areas (SDPMA).The Program was financed by an International Fund for
Agriculture Development (IFAD). Can irrigate 600 Ha of paddy at Kanolo, Nata and
Mwamalulu villages. Kanolo irrigation scheme is located Nata ward. The scheme is
located 35 Km from Nzega District Headquarter. Irrigation by diverting water from
season river has proved inefficient due to the fact that, frequency of water flow in the
river is limited and is of few days when it rains, resulting to drought during the
cultivation period in wet season hence failure of crops. The villages propose and are
requesting assistance for provision of a better way of supplying enough and reliable
irrigation water to their fields.

2.2.7.1 Irrigation Practice status

Intervention of SDPMA by construction the diversion weir and irrigation infrastructures
improved the irrigation system and famers adopted modern cultivation methods through
extension services. To date, the major problem facing the scheme is inadequate and
unreliable supply of irrigation water. Water is available only when it rains on the Ibole
river catchment area and the river flows for a few days. Irrigation is practiced on a small
area just adjacent to the river while water does not reach the rest of the area through the
deformed of canal. Harvest is not certain for both irrigation fields. Complete failure of
crops seldom occurs in two consecutive cropping seasons due to drought. There is a vivid
reason for the necessity of the dam construction.

2.2.7.2 Overall Objective

Construction of Kanolo dam will contribute to the achievement of the country’s
development objective of attaining food security self-sufficiency through increasing and
stabilising crops production, raising the income and reduction of poverty in the rural
community / population.
2.2.7.3 Specific objectives
To facilitate water availability and supply to the scheme.

2.2.7.4. Activities
vii) Construction of irrigation canals to irrigate 600ha.
viii) Construction of drainage structures
ix) Construction of water control structures and distribution structures along the
canals
x) Construction of farm access and services roads.
 xi) Improving of irrigation water management and better agricultural practices
involving soil and water conservation measures

2.2.7.5 Present condition of proposed kanolo dam

 The Proposed Kanolo dam receives water from Kanolo River
 During the heavy rainfall the river is normally flooded with water
 The proposed scheme will serve 8612 people

2.3. Construction of warehouse and processing machine

Storage/ warehousing and distribution components form an important link in
the entire logistics chain. Before the goods can be dispatched, they are
required to be stored temporarily, before they can be further transported to
the end customers. Storage facilities are usually required for a short period
of time to ensure faster delivery to customers and to reduce the overall
logistics costs.

Nzega district council particularly Nata and Lusu wards faces problem of
post harvest losses due to shortage of warehouses, processing machines,
drying places. Farmer also faces problem of market to their products hence
low prices. In order to reduce negative social-economic impacts to farmers
and consumers it need to improve post handling methods/techniques,
storage and storage facilities.

2.3.1 Opportunities

Major opportunities in the areas are availability of enough land for

construction of warehouse. As a council established of land survey and
posses sketch maps for three fast growing centers including Nata. This area
mainly intended for industrial and other social- economic uses. District
council planned about 100 hectares for investiment at Nata ward. Nata ward
on other hand is on high trunk road linking Shinyanga to Tabora, Katavi,
Rukwa and Kigoma regions it is located at Nyasa division.

Nyasa Division in which Nata and Lusu wards are one of the leading largest
paddy producer. In 2014/2015 to 2015/2016 seasons Lusu, Mwasala and
Nata Wards produced about 15571 Tons of paddy. Therefore average
production of paddy per year is 5190.33. The presence of main road is
another opportunity for easy transportation of inputs and marketing of
processed crops products.
2.3.2 Project impacts
The major impact of project is to produce better quality rice products from
crops for human consumption. Improved livelihood of individuals employed
directly in the project through acquired income and sustains food security.
Along with the project following direct impacts will be observed.
 Agriculture product value addition
 Increased income to farmers
 Increase the District council's revenue.
 Employment opportunities to the community.
The project intends to increase production of paddy and add value by
processing crop produces to get high quality rice products

2.4 IMPROVEMENT OF NDALA AUCTION MARKET

Ndala livestock auction market is located beneath Ndala Teachers

Training college at Ndala ward in Nzega district council. It is about 57
km away from Nzega town and 9.8 Km from the main road on the way
to Tabora (Tabora road).
Main objective:
To increase council’s revenue through improved Ndala Auction market
Environment.
2.4.1 Current situation of Ndala livestock Auction market.
The auction market layout includes marketing area for:
 Livestock
 Agro-products
 Other goods(Forest products, plastics and other related goods)
The areas above are not differentiated distinctively from another as
such brig difficulties in collecting revenues and running controls.

2.4.2 Livestock marketing

 The market is carried out once in a week.

2.4.3 Ongoing challenges in running Ndala auction market.

 Low revenue collection due to lack or poor control infrastructures
for effective running of Auction Practices.
 Unorganized market layout for easy Monitoring of Market
apartments.
 Livestock price instability.
 Poor infrastructures related to human health
  Lack and sometimes poor available infrastructures for value
addition (Electricity; slaughter facility, processing, packaging and
transportation facilities).
 Insufficient water to run clean and dirty operations.
2.4.4 Opportunities for Ndala auction market.

 Available land
 Centrally located thus serves nearby seller and buyers from Uyui
District, Igunga District and Tabora Municipality.
 The market place is located 9.8 Km from Tabora - Nzega trunk
road and accessible in all weather conditions.
 Good co-operation with police force and often assure security
against customers’ properties.
 The auction located 0.5 Km from the electric grid.

2.4.5 Needs for improved Ndala Auction Market.

The proposed improved Ndala livestock auction market is as follows
Figure1. Layout of the proposed Ndala livestock auction Centre
Figure2. 3D view of the proposed Ndala livestock auction Centre

2.4.5.1 Apart from already established proposed layout also other needs includes:-
 Parking infrastructures
i) Motor Vehicles
ii) Motor Cycles
iii) Bicycles
iv) Oxcarts
 Shades ( 3x5) m2
(10x5) m2
 Slaughter facility ( Slaughter house, Hides and skin shade, Drainage
and Condemnation Pit)
 Establishment of permanent water sources and its distribution to
different points within market area.
 Waste disposal points
 Wash rooms (Latrines/Toilets)
 Water and feed troughs
 Fencing of whole market area.
 Electric installation
 Construction of collection yard to connect the load and unloading rump
 Construction of dipping facilities.
 Police post

2.4.6 Expected output.

 Easy and effective collection of revenue.

 Increased number of livestock in the market due to fencing as a
means of improving control.
 Increased quality of products due to improved infrastructures.
2.5 KISASIGA MEAT INDUSTRIES

2.5.1 Improvement of Kisasiga Ranch:

Improvement of Kisasiga ranch being one of the intervention shall involve

division of the ranch into small block farm each of about 1000 Ha to allow
number of stakeholders who will be renting land by contract specifically for
establishment of livestock industries majoring in animal production and
livestock related processing industries mainly feeds, meat, milk and animal-
by product industries.

The intervention stimulates Nzega economy and open room for employment
to different Tanzanian’s particularly Nzega natives. Stakeholders will be
paying land rent, service levy and other dues as per by-laws, national rules
and regulations.

2.5.2 Establishment of block farm at Kisasiga ranch:

 The whole ranch of about 43,000 Ha (106,000 acres) shall be divided into
block farms of about 1,000Ha each to accommodate 43 contracted livestock
farmers with different interrelated linked products along value addition
chain.

Along with land renting livestock farmers shall be allowed to keep domestic
animals basing on the recommended carrying capacity and in so doing
grazing pressure will be reduced hence low land degradations. The producers
shall be directed to produce commercially by adhering to all technicalities
laid in contract and at large the national Acts, regulation and By-laws

Due to uneven rainfall there would be need to establish permanent water

sources and its distribution all over ranch.

2.5.3 Cost estimates for improving Kisasiga ranch:

Costs for improving Kisasiga ranch includes those for investment in

communication, production and processing infrastructures such as roads,
water sources, troughs, fencing and processing industries (Meat, milk,
leather goods, by-products and feeds).

2.5.4 Establishment of land use plan:

The whole ranch of about 43,012 Ha (106,000 acres) will be divided into
block farms of 1000Ha Separated by road networks/pathways. Every block
shall be contracted to one producer and will be supplied by all essential
inputs for smooth running of product

2.5.5 Roads and road networks:

2.5.5.1.Roads:
Establishment of 16 Km morum road from Igusule village to Kisasiga
ranch.

2.5.5.2. Roads networks:

Roads network of total length 87 Km to allow accessibility to all
project/ranch area.

2.5.5.3. Water infrastructures:

Drilling of 5 water wells and establishes its distribution all over
ranch and allied industries.

2.5.5.4 Establishment of pasture.

Apart from existing natural vegetations also pasture would be
established in every block to meet feed demand and surplus will be
preserved for future use and or sold to generate income.

2.5.5.5 Processing industries.

 Processing industries will be located in Nata and linked to ranch, these
includes:

2.5.5.6 Meat industry

 Slaughter house with hides and skin shade
 Meat vans
 Butcheries

2.5.5.7 Leather goods industries

 Processing hides and skin to get row materials.
 3 set of Processing machines – cutting, sewing and decoration
machines
2.5.5.8 Milk industry
 Milk collection centre with cooling machine and reserve tanks
 Milk collection van
 Utensils
 Laboratory/ milk testing kit for quality assurance.

2.5.5.9 Feed and ornamental industries

 Animal by-products to be processed as feeds and ornaments includes:
o Blood and bones processed as animal feeds.
o Horns and hooves for making ornaments ( Buttons and glue)

2.6 WASTE MANAGEMENT

Waste management or waste disposal is all the activities and actions required to
manage waste from its inception to its final disposal. This includes amongst other
things collection, transport, treatment and disposal of waste together with
monitoring and regulation. In Nzega District Council there are some trade centres
that growing in day to day and due to that they produce wastes which pose threat
to human health. Waste management is intended to reduce adverse effects of
waste on health and the environment.

2.6.1 Waste handling and transport.

Main articles, waste collection points and waste collection vehicle. In order to
manage waste produced especially domestic waste the establishment of waste
collection points is not avoided. These points will include centres of Ndala,Bukene
and Nata the estimated costs are shown below :-

2.6.2 Transport of wastes

In order to manage domestic waste effectively there is need for proper means of
transport including waste collection vehicle and waste compacting machine for
handling waste

2.6.3 Waste handling practices

The handling of waste here means the disposal of waste, so dumps for the disposal
of waste must be constructed in the centers mentioned above.

3.0 PROJECT COST ESTIMATES.

The total cost to run activities for the whole project amounts to Tsh
14,092,298,000/= as per following break downs:

3.1. ESTIMATED COST FOR TREE PLANTING

S/n Description Unit Qty Rate Amount

1 Preliminaries item 1 29,000,000 29,000,000

Seeds
3330 5000
2 cashew nut kg 16,650,000
 Seeds
3 (Mangoes) kg 3330 5000 16,650,000

Cutting
50
4 Mninga s 1,500,000 75,000,000
8000
5 Tubes kg 18596 148,768,000
Sheets
6 kg 580 5000 2,900,000
Chemicals
7 litre 100 20,000 2,000,000
Fuel
8 litre 8000 2500 20,000,000

Total 281,968,000

3.2 ESTIMATED COST CONSTR. TIMBER FACTORY

S/ Uni Qt
n Description t y Rate Amount

Timber processing area 150

1 (1blocks) m 2
0 700,000 1,050,000,000

600
2 Storage facility (2blocks) m2 700,000 420,000,000

-
100
3 parking yard (15trucks) m 2
0 50,000 50,000,000

250
4 Office block m2 650,000 162,500,000

100
5 Fence m 2
0 110,000 110,000,000

Total 1,792,500,000
3.3. ESTIMATED COST CHARCO DAM (LUSU)
S/ Uni
n Description t Qty Rate Amount
ite
1
1 Priliminaries m 29,000,000 29,000,000
 1.5
2 Access road km 30,000,000 45,000,000

-
4200
3 Embarkment m 3
0 20,000 840,000,000

150
4 Spillway m2 60,000 9,000,000

ite
1
5 Water trough m 25,000,000 25,000,000

948,000,00
Total 0

3.4. ESTIMATED COST CHARCO DAM(KANOLO)

S/ Uni
n Description t Qty Rate Amount
ite
1
1 Priliminaries m 29,000,000 29,000,000

1.5
2 Access road km 30,000,000 45,000,000

-
4200
3 Embarkment m3 0 20,000 840,000,000

150
4 Spillway m2 60,000 9,000,000

Ite
1
5 Water trough m 25,000,000 25,000,000

948,000,00
Total 0
 3.5. ESTIMATED COST FOR AUCTION MARKET
S/ Uni Qt
n Description t y Rate Amount

ite
1 Priliminaries m 1 29,000,000 29,000,000

2 Access road km 1.5 30,000,000 45,000,000

100
3 paved area m2 0 50,000 50,000,000

100
4 parking aprox.(150) m2 0 50,000 50,000,000

147,000,00
210
5 Slaughter m 2
700,000 0

Hiddes and skin

6 shed m2 240 250,000 60,000,000

226 567,000,00
5 Shops 108 m2 8 250,000 0

ite 100,000,00 100,000,00

1
6 Collection m 0 0
7 Public toilet (two no
 unit) 2 15,000,000 30,000,000
Rosted meat-(Nyama
8 choma ) m2 350 250,000 87,500,000

100 110,000,00
9 Fence m 0 110,000 0

Total 1,275,500
,000

3.6. SUMMARY OF COST MEAT FACTORY

s/ Uni Qt
n Description t y Rate

1 slaughter House m2 210 700,000 147,000,000

-
240
3 Hiddes and skin shed m2 250,000 60,000,000

100
4 Meat processing area m2 0 700,000 700,000,000

external works and ite 1 300,000,00

5 services m 0 300,000,000

Total 1,207,000,000

3.7. ESTIMATED COST FOR RANCH

S/
n Description Unit Qty Rate Amount
1 Priliminaries item 1
50,000,00 50,000,000
 0

Construction new access

road from Igusule to 25,000,00 400,000,00
2 Kisasiga km 16 0 0

87 25,000,00 2,175,000,0
3 Internal acess road km 0 00

6 26,141,66 156,850,00
4 Drilling 6 water well no 7 0

1 150,000,0 150,000,00
5 Acess road item 00 0

1 30,000,00
Milk collection centre item 0 30,000,000

2,961,850,
Total 000

3.8. ESTIMATED COST FOR WASTE FACILITIIES

S/ Uni Qt
n Description t y Rate Amount

ite 29,000,0
1
1 Priliminaries m 29,000,000 00

construction of
collectiion 90,000,0
15
2 point (15) no 6,000,000 00

-
construction of Dumps 100,000,00 300,000,
3
3 (3) no 0 000
 15,000,0
3
4 dump office(3) no 5,000,000 00

ite 1 150,000,00 150,000,

5 Acess road m 0 000

584,000,
Total 000

3.9. SUMMARY OF COST ESTIMATES

No Item Cost

1 Tree planting and environmental

conservation 410,968,000

2 Timber factory 1,792,500,000

3 Charco dam( kanolo) 948,000,000

 4 Charco dam(Lusu) 948,000,000

5 Paddy processing and warehouse 1,599,980,000

construction

6 Meat factory 1,207,000,000

7 Ranch 2,961,850,000

584,000,000
8 Waste management

Subtotal 10,452,298,000

9 Machine and equipments 2,940,000,000.00

10 Consultant fee 140,000,000.00

11 Legal compliance 140,000,000.00

12 Contintigency 420,000,000.00

Subtotal 3,640,000,000.00
GRANDTOTAL 14,092,298,000.00
 4.0 Revenue Projections from different sub
projects

4.1 Revenue Projection for Forest management in

Nzega District
Year
S/ Price 1Income Total Tsh
no Item No (Tsh ) Tsh Y2 Tsh Y3 Tsh Y4 Tsh Y5 Tsh' '000'
1 Touri 1,440,00
sm 720 2000 0.0 1,728,000.0 2,073,600.0 2,488,320.0 2,985,984.0 10,715,904.0
2 Produ
ction
of
mode
rn
chaca 360,000,00 518,400,000 2,678,976,00
l 180000 2000 0.0 432,000,000.0 .0 622,080,000.0 746,496,000.0 0.0
3 Timb
er
proce 126,000,00 181,440,000 937,641,600.
ssing 360 350000 0.0 151,200,000.0 .0 217,728,000.0 261,273,600.0 0
4 Cash
ew
nut
produ 140928 1,648,863,3 3,297,726,432 4,946,589,648 9,893,179,41
ction 49 117 - - 33.0 .0 .0 3.0
487,440,0 2,350, 4,140, 5,957,3 13,520,5
00.0 584,928,000.0 776,933.0 022,752.0 45,232.0 12,917.0

4.2.Revenue Projection for waste management Bukene, Nata and Ndala centers in
Nzega District

S/ 12mon Price Year 1Income

no Center th (Tsh ) Tsh Y2 Tsh Y3 Tsh Y4 Tsh Y5 Tsh

1 Bukene 23856 2000 47,712,000.0 57,254,400.0 68,705,280.0 82,446,336.0 98,935,603.2

2 Ndala 23856 2000 47,712,000.0 57,254,400.0 68,705,280.0 82,446,336.0 98,935,603.2

3 Nata 23856 2000 47,712,000.0 57,254,400.0 68,705,280.0 82,446,336.0 98,935,603.2

143,136,000. 171,763, 206,115,840.0 247,339,008.0 296,806,809.
 0 200.0 6

4.3. Establishment of charco dam and paddy allied value addition infrastructures.

4.3 Production(Rice and Paddy) Income (Tsh) Produces cess

N FY FY Price(Ts
o Item Unit 1 2 FY 3 FY 4 FY 5 h.) FY 1 FY 2 FY 3 FY 4 FY 5 TOTAL
1 Construction Bags(Padd
41,25 6875 82500 96250 110000 1000
of 2 charco y) 41,250,00 68,750,00 82,500,00 96,250,00 110,000,0 + 398,750,000
dam (Kanolo 0 0 0 0 0 0 00
and Lusu)

Bags(Rice) 2291 381 45833 53472 61111 1000 221,527,000

7 94 22,917,00 38,194,00 45,833,00 53,472,00 61,111,00
0 0 0 0 0

2 Construction Bags 1000 1000 10000 10000 10000 2000 100,000,000

of warehouse 0 0 20,000,00 20,000,00 20,000,00 20,000,00 20,000,00
at Nata 0 0 0 0 0
(Storage)

3 Installation of Bags 9000 9000 90000 90000 90000 3000 270,000,0 270,000,0 1,350,000,000
Processing 0 0 00 270,000,0 00 270,000,0 270,000,0
machine( Proc 00 00 00
essing of
paddy)
TOTAL 354,167, 418,333, 2,070,277,000
000 396,944, 000 439,722,0 461,111,0
000 00 00
 4.4. Revenue Projection for Ndala auction market and Kisasiga meat industry in
Nzega District
Year
S/ 1Income Total Tsh
no Item No Price Tsh Tsh Y2 Tsh Y3 Tsh Y4 Tsh Y5 Tsh '000'

Parking 864 8,640,0 10,368,000. 12,441,600 14,929,920.

1 fee 0 1000 00.0 0 .0 0 17,915,904.0 64,295,424.0

Slaughte 620 31,000,0 37,200,000. 44,640,000 53,568,000. 230,689,600.

2 r house 0 5000 00.0 0 .0 0 64,281,600.0 0

Hides 620 3,100,0 4,464,000.

3 and skins 0 500 00.0 3,720,000.0 0 5,356,800.0 6,428,160.0 23,068,960.0
Shop and
meet 336 33,600,0 40,320,000. 48,384,000 58,060,800. 250,037,760.
4 Shade 00 1000 00.0 0 .0 0 69,672,960.0 0

Public 864 2,592,0 3,732,480.

5 toilet 0 300 00.0 3,110,400.0 0 4,478,976.0 5,374,771.2 19,288,627.2
Meat
processi
ng
industry 120,000, 432,000,00 518,400,00 622,080,00 746,496,00 895,795,200. 3,214,771,20
6 at Nata 3.6 000 0.0 0.0 0.0 0.0 0 0.0
510,932,0 613,118, 735,742, 882,890, 1,059,468, 3,802,151,
00.0 400.0 080.0 496.0 595.2 571.2
5.0 PROJECT FINANCIAL ANALYSIS

By using Payback period method for five (5) years at 7 % discount rate cash flows
of each project above has been discounted and its viability has been shown as
following:-

5.1. Forest Management Investment Project

The project total cash flow before to be discounted is :-

Year Tshs

1 487,440,000.00
2 584,928,000.00
3 2,350,776,933.00
4 4,140,022,752.00
5 5,957,345,332.00

TOTAL 13,520,513,017.00

After discounting at 7% discount rate for 5 years cash flow is :-

Year Tshs

1 454,489,056.00
2 508,536,403.00
3 1,905,539,782.00
4 3,256,541,897.00
5 4,413,201,422.00

TOTAL 10,538,308,560.00

The initial total cost of the project is Tshs 281,968,000.00 is expected to be paid
back within the first year .Therefore the project with this initial is viable for the
period 5 years .

5.2.Ndala Auction Market Project

The initial investment total cost for the project is Tshs 1,275,500,000.00
The project total cash flow before to be discounted is :-
Year Tshs

1 510,932,000.00
2 613,118,400.00
3 735,742,080.00
4 882,890,496.00
5 1,095,468,592.20

TOTAL 3,838,151,568.20
After discounting at 7% discount rate for 5 years cash flow is :-

Year Tshs

1 330,189,894.10
2 345,103,113.60
3 349,433,554.90
4 332,341,887.60
5 324,944,921.70

TOTAL 1,682,013,371.90

The initial cost under payback period method is expected to be paid back within
the third year; therefore the project is viable for period of 5 years.

5.3. Waste Management Project

The initial total cost of the project is Tshs 584,000,000.00

The project total cash flow before to be discounted is :-

Year Tshs

1 143,136,000.00
2 171,763,200.00
3 206,115,840.00
4 247,339,008.00
5 296,806,809.60

TOTAL 1,065,160,858.00

After discounting at 7% discount rate for 5 years cash flow is :-

Year Tshs

1 133,460,006.40
2 149,330,926.08
3 167,077,499.90
4 194,556,863.70
5 219,874,484.00

TOTAL 670,222,280.18

The initial cost under payback period method is expected to be paid back within
the third year; therefore the project is viable for period of 5 years
5.4. Charco dam Lusu Project

The project has initial investment cost of Tshs 948,000,000.00

The project total cash flow before to be discounted is:-

Year Tshs

1 354,167,000.00
2 396,944,000.00
3 418,333,000.00
4 439,722,000.00
5 461,111,000.00

TOTAL 2,070,277,000.00

After discounting at 7% discount rate for 5 years cash flow is

Year Tshs

1 330,189,894.00
2 345,103,113.60
3 349,433,554.90
4 332,341,887.60
5 324,944,921.70

TOTAL 1,682,013,370.20

The initial cost under payback period method is expected to be paid back within
the third year; therefore the project is viable for period of 5 year

5.5. Kanolo Charco dam Project

The project has initial investment cost of Tshs 948,000,000.00

The project total cash flow before to be discounted is :-

Year Tshs

1 354,167,000.00
2 396,944,000.00
3 418,333,000.00
4 439,722,000.00
5 461,111,000.00

TOTAL 2,070,277,000.00

After discounting at 7% discount rate for 5 years cash flow is

Year Tshs

1 330,189,894.00
2 345,103,113.60
3 349,433,554.90
4 332,341,887.60
5 324,944,921.70

TOTAL 1,682,013,,371.00

The initial cost under payback period method is expected to be paid back within
the third year; therefore the project is viable for period of 5 years

6.0. PROJECT APPRAISAL

Basing in the financial analysis above three projects of forest management,
establishment of irrigation infrastructure and warehouse and process facilities,
improvement of livestock product and allied infrastructure pay back investment
cost within three years and one project component which is waste management
returns its cost to fourth year. Thus, these projects are viable and suit to be
implemented in Nzega district council since pay back before project period of five
years.

7.0 Proposed investment plan

Basing interelation and interdependence between interventions, the implementation

phase for investment will be described below.

In 2018/2019:

The fare most investment will include administrative cost, creating awareness,
mobilization , tree planting, improving Ndala auction market, establishing timber
factory and construction of charco dam at Lusu. All these activities require about
5,350,978,000 /= out of the total cost.

In 2019/2020:

The investment will include construction of Kanolo charco dam at Nata wards,
improvement of Kisasiga ranch and its infrastructures, construction of warehouse
for paddy storage and installation of paddy processing machine. All these activities
will cost 4,667,320,000/= out of the total cost

In 2020/2021:

The investment will include construction of warehouse for paddy storage,

installation of paddy processing machine and waste disposal points. All these
activities will cost 2,067,000,000/= out of the total cost

In 2021/2022:

The investment will include construction of meat factory at Nata . This activity will
cost 1,207,000,000/= out of the total cost

In 2022/2023:

The investment will include follow up of the project including monitoring and
evaluation. Assessment of the impact of the project in District. All these activities
will cost Tshs 800,000,000/= out of the total cost.

8.0 Community engagement

The community is main partner to the project, nearby community will be
involved right from the beginning especially letting them aware of the
project. Major raw materials consumed by the project which is paddy
produced by the community. The government officials are stakeholder to the
project in collaboration with community will participate to large extent in
overall project cycle for successful completion of the project.
Nzega District Council will work hand in hand with the community in
implementation of the project. Nzega District council’s goal is to improve
production by promoting different industries on agro-processing, market
facilities, forest management and environmental waste management.

9.0 Project Sustainability

Sustainability of the project basing on optimum available raw materials

especially paddy, presence of knowledgeable personnel, accessibility of the
project area all year round, available market and adhered national policy on
industrial development.

Nearby community will be involved right from the beginning by creating

awareness to the project purpose, create sense of ownership and support so
as to safeguard established infrastructure and investments.

This project is in line with the environmental conservation, sustainable food

security strategy, agriculture led industrialization and sustainable
development and poverty eradication program of Tanzania.

Community fully engaged from establishment to execution of the project. Nzega

natives especially youth and women’s will be given more priority to employment
opportunities.

Collaboration with all local leaders, government and non-government institution to

observe peace, low and orders governing success of projects.

Stakeholders/livestock farmers from Nzega will be given first priority to invest and
run production

10. Project duration:

The project duration shall be 5 years and a grace period of 10 years before start
paying.

1.0 Expected Project outputs:

 Increased council’s income through payments from renting block farms
and service levy.
 Increased quality of products due to improved infrastructures.
 Increased employment opportunities to Nzega people/natives.
 Issues of empowerment – Youth and women
 To increase production
 Improve and strengthened Food security
 Environmental conserved
 Comunity mpowered both economic and socially