Challenges hinder performance of National Oil Seed Project

KAMPALA, February 4, 2025 — The National Oil Seed Project [NOSP], which aims to support farmers in 81 districts across Uganda, is facing significant setbacks that could affect its overall performance and increase project costs, according to the Annual Report of the Auditor General to Parliament for the Audit Year ending December 31, 2024.

The Auditor General, Edward Akol, in the report, says that the project, currently in its fourth year of implementation, is designed to enhance the production and productivity of key oilseed crops, including soya beans, groundnuts, sunflower, and sesame.

However, he notes in the report, that the project, which falls under the Ministry of Agriculture, has encountered numerous challenges that have hindered its smooth execution.

One of the main issues identified is the delay in the procurement of private service providers to offer extension services. The project had planned to partner with the National Agricultural Research Organisation [NARO] and Makerere University Kampala [MUK] to provide these services at a cost of Shs 47.5 billion, running through to 2025/2026.

“This procurement process, which was intended to be completed in the second year of the project, was recently cancelled by the Public Procurement and Disposal of Assets Authority [PPDA] due to irregularities. ”This cancellation has disrupted the timely delivery of essential services to farmers,” Akol states in the report.

As a result, several critical project activities have been affected, including:

• Seed Shortage: Farmers have struggled to obtain certified seeds for sunflower, groundnuts, and sesame, with only soya beans being available. This shortage of quality seed varieties has negatively impacted crop yields.
• Late Research Funding: Funds for research activities, allocated to NARO and MUK, were disbursed late for both planting seasons, hindering the development of certified seed varieties.
• Delayed Inputs: Inputs intended for farmers were delivered 30 to 60 days later than expected, well beyond the required 30-day window before planting. This delay disrupted planting schedules and potentially reduced overall crop yields.
• Limited Local Seed Businesses: The lack of sufficient Local Seed Businesses [LSBs] to provide certified seeds has further exacerbated the issue, affecting the quality of harvested crops.
• Insufficient Sensitisation: Farmers were not adequately sensitised on climate-smart technologies, such as the use of resistant and tolerant seed varieties, irrigation systems, and timely planting methods. This has limited the uptake of these essential practices.
• Pest Infestation: After the delivery of soya bean plants in the 2023B and 2024A seasons, crops were attacked by webworms, which severely affected productivity. Unfortunately, there was no follow-up support from MUK to help farmers manage the pest infestation.
• Unfinished Procurements: Key project procurements worth Shs 11.3 billion, including weather stations, consultancies, and vehicles for monitoring, were not completed despite the availability of funds. This has further delayed the project’s progress.

“The cumulative effect of these delays is likely to lead to time extensions and an increase in project costs. The project’s accounting officer has been urged to take prompt action to resolve these issues and improve the project’s performance,” says the report, which was handed over recently to Deputy Speaker of Parliament, Thomas Tayebwa.

In a related development, the NOSP under the Ministry of Local Government, funded by the International Fund for Agricultural Development [IFAD] and the Government of Uganda [GOU], is also facing implementation challenges, says the report. ”This component of the project, which focuses on market linkage infrastructure in the oilseed sector, has been running since December 2019 and is expected to end in March 2029. To date, Shs 18.32 billion has been disbursed from the total budget of Shs 111.98 billion,” says the report.

“However, significant activities have been delayed, including the feasibility studies and engineering designs for 1,495 kilometres of roads, worth Shs 5.5 billion. These studies are still pending clearance from IFAD. Environmental and Social Impact Assessments for these roads, worth Shs 3.2 billion, have also been delayed due to slow progress in road design,” the report states.

Additionally, the report highlights that community awareness and social mobilisation in all 81 districts, budgeted at Shs 0.89 billion, have not commenced. This delay could lead to conflicts with Project Affected Persons [PAPs] and further delays in implementation. Construction and supervision of 1,000 kilometres of road works, worth Shs 56.56 billion, have yet to begin due to inadequate preparation.

The report concludes that the delays in both components of the National Oil Seed Project are expected to result in time extensions and increased costs. “The project’s accounting officer has again been advised to address these challenges to ensure successful implementation and achieve the project’s goals,” it states.

https://thecooperator.news/mp-auma-launches-construction-of-shs-800mln-oil-seed-roads/

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