KITENGULE MIXED FARM

Project accessibility and potentials:

The farm is within Karagwe district in Kagera region, it is located 75km Southwest of Bukoba. It was established in 1963. The farm covers a total area of 11,795 acres, it is surveyed with Title Deed No. 2510 of 2021. The land use for this farm is divided into four main uses i.e., crops production 600 acres, pasture 2,895 acres, residential (buildings, offices and prison) 900 acres, and forests 2,000 acres (natural forest 1,800 acres and planted forest 200 acres).

The climatic condition of the farm is suitable for both crops and livestock production.

ISUPILO MAIZE AND HEIFER MULTIPLICATION FARM

Project accessibility and potentials:

The Farm is found in Mufindi District – Iringa region, 12 km from Mafinga along Dar es Salaam – Mbeya highway and about 90 km from Makambako Tazara Station. The road from the highway to the farm project is accessible throughout a year. This project was established in 1984. The total area is 8,998 acres surveyed with Title Deed No. 37990 of 2008.

The land use of this farm is divided into five main uses which are 2,500 acre which are used for crops production; 1,400 acres for pasture; 400 acres for residential (staff buildings office and prison); 697acres for forest and 4,000 acres are reserved area. The type of soil found is sandy loam and other parts is clay loam. This type of soil and the amount of rainfall (1,200mm–1,300mm) favors production of crops and forestry. The farm has one rainy season. Crops which can be grown in this area are maize, wheat, sweet potatoes, beans, sunflower (annual crops) and avocado (perennial crop). Currently only about 200 are cultivated.

The grazing area is about 1,400 acres and the animals which are possible to be kept are cattle, sheep, pig, and goat. Currently there are about 189 animals which are 21 beef cattle, 58 dairy cattle, 80 goats and 30 sheep which is few according to availability enough pastureland, water, and good climatic condition.

The good soil and climatic condition of this area create another opportunity for production of forestry industry due to availability of enough reserved area which is about 4,000 acres. Currently there are about 150 acres of natural trees and 547 acres of planted trees, the type of planted trees are pines and eucalyptus. Another opportunity of this project is the availability of permanent river (Ruaha river) which is about 5km from the project, so irrigation is possible.

ARUSHA PRISON FARM

Project accessibility and potentials:

The farm is 15 km Southwest of Arusha along the Arusha– Dodoma highway on the

slopes of mount Meru. It was established in 1964. The pathway from the main road to the farm is accessible throughout the year. The farm covers a total area of 959 acres. The area is already surveyed and procedures for obtaining the title deed are in process. The land use of this farm is divided into three parts which are: arable land 659 acres, pasture 180 acres and residential area (buildings, offices and prison) 120 acres.

Good climatic condition and fertility of land of this farm makes and crops and livestock production to be carried out. The soil type of this area is clay loam and the amount of rainfall per season is between 800mm-1000mm. The area has good source of borehole water extraction for irrigation.

Currently the farm is growing 250 acres. Another activity which is carried out to this farm is livestock keeping. It has about 250 cattle (Ayrshire and Friesian) and 120 goats.

IDETE PRISON FARM

Project accessibility and potentials

The Idete farm is located 30 km from Ifakara, Morogoro along the Tanzania – Zambia railways and 140 km to Morogoro – Iringa highway. The farm was established in 1973. The farm covers a total area of 7,940 acres. The land is surveyed waiting for a title deeds. The land use of this farm is divided into four uses which are 690 acres for residential area (staff buildings, offices, and prison), 3,150 acres for crop production, 3,000 acres for forest and 1,100 for pasture.

The type of soil of this farm is clay loam which has characteristic not allow water to penetrate easily. This type of soil is suitable for growing paddy. The main activity of this farm is the production of paddy, although maize and horticulture crops also are cultivated. The amount of rainfall in this farm is about 1,300mm–1,500mm per season. The farm has one rainy season. Currently 300 acres of paddy and 120 acres of maize are cultivated. A total of about 2,730 acres has the potential for cultivation.

The farm has about 1,100 acres of pastureland but currently there is not any animals which is kept in this farm. The land is suitable for keeping animals like cattle, goats, and sheep. About 3,000 acres are covered with natural forest which is used for environmental conservation.

The farm provides an opportunity for irrigation as it is closer to river Idete. The distance between the river Idete and the farm is 1km. There is work in progress for construction of irrigation systems from the river to the farm. The water in Idete river flows throughout the year.

KIGONGONI PRISON FARM

Project accessibility and potentials

The Project is located 11 km West of Bagamoyo town and 70km Northwest of Dar es Salaam. It is situated in Coastal Region. It was started in 1970.The road from Bagamoyo town to the farm is accessible throughout the year. The project covers a total area of 6,018 acres and is surveyed but has no title deed. The land use of this farm is divided as follows: 500 acres for crop production, 50 acres for residential (staff buildings, offices, and prison), 200 acres for pasture and the remaining 5,268 acres have the potential for usage.

Another activity which is carried out is fish farming where there are six fishponds (natural and man-made pond). The types of fishes which are found are Nile tilapia, tilapia, and catfish.

There is fertile land along Ruvu river whereby some crops like sugarcane and maize can grow because the possibility of irrigation from Ruvu River to the farm is possible. Another activity which is carried out currently is salt mining which is found about 40km from the main office (prison).

MANG’OLA PRISON FARM

Project accessibility and potentials

Mang’ola is in Karatu district 62 km and 100 km away from Arusha. It was established in 1976. The project covers a total area of 320 acres and is surveyed and has Title Deed No. 6052. The land use of this farm is categorized into two parts (crop production 270 acres and 50 acres as residential (buildings, houses, offices, and prison). The farm has 140 cattle (cross breed).

The type of soil of the area is sandy loam. The amount of rainfall per season is about 600mm-800mm per season. Crops which are grown on farms are dependent on furrow irrigation. The source of irrigating water is River Eyasi, which is permanent source of water, this river supplies water throughout the year. Currently the crops which are grown are maize, paddy, and onions.

SONGWE CROP FARM

Project Accessibility and potentials

This farm is located at Mbeya Rural district in Mbeya region about 35km from City Centre and 4 km from Tunduma-Mbeya Road. The pathway from the main project to the main road is accessible throughout the year. The TAZARA railway is  crossing within the project. The Project was established in 1969. The farm covers a total area of 5,000 acres. The uses of the project land are categorized into four main parts i.e., crops production 2,000 acres, pasture 600 acres, residential (buildings, offices, and prison) 300 acres and forestry (natural forests) 2,100 acres. The back side of this project is covered by hills, mountains, and natural forestry. A large part of the project is covered by natural forestry.

The climatic condition of the farm is conducive for agriculture activities (crops and livestock) due to fertility of land and availability of rainfall. The type of soil of this farm is clay loam and small part is alluvial soil, this type of soil is very suitable for growing a lot of crops such as maize, legumes, sweet potatoes, cassava, sunflower  and horticulture. The amount of rainfall per season is about 1500mm–1800mm. This area has one season i.e., the rainy season which starts from the end of November up to end of April or early May.

Currently the project is growing maize about 800 acres (100 irrigated and 700 rain fed)

The area also is suitable for livestock production due to its environment i.e., enough pasture/grazing area and water. Animals which are kept are cattle, goats, sheep, pigs, and poultry. Currently the farm has 200 animals.

The farm has an opportunity for irrigation due to the availability of permanent source of water (Songwe river). The distance from the river Songwe up to the farm is 31 km. Irrigation activities are still going on, but the system is not well due its poor infrastructure, so maintenance is very important. Currently 100 acres of maize are irrigated during the dry season.

LUDEWA CROP FARM

Project Accessibility and potentials

The Farm is found in Ludewa District–Njombe region. It is 8 km from Ludewa  town and 168 km from Njombe-Songea main road. The pathway from the project to Ludewa town to the farm is accessible throughout the year. This project was established in 1983. The total area of this farm is 3,500 acres surveyed with Title Deeds No. 907. The land use of this farm is divided into five main uses which are as follows: 700 acres for crops production (arable land), 500 acres for pasture, 60 acres for residential (staff buildings office and prison) and 2,240 acres for forestry (2,142 acres natural forestry and 98 acres planted forestry).

The type of soil which is found in this area is clay loam (red in color). The amount of rainfall which rains ranges between 2,000mm–2,300mm per season. The farm has one rainy season which starts at the end of November and goes on up to the end of April. Currently only 400 acres of maize are cultivated although there is arable land of 700 acres, it means that about 300 acres are not cultivated although many crops can well. Also, this farm keeps a small number of livestock. This number of animals is minimal compared with the area available. The farm has a large area of forestry, about 2,240 acres, so the opportunity of initiating bee keeping project is possible.

MBIGIRI MIXED FARM

Project location and accessibility

The Mbigili farm is in Morogoro region 60 km from Morogoro town, and 5 km from Dar

– Dodoma main road. The pathway from the main road to the farm is accessible throughout a year. The farm was established in 1966. The farm covers a total area of 17,730 acres. The farm is situated within two districts Kilosa and Mvomero, large part of this project is in within Kilosa District. The title deed to the area is surveyed but the tittle deed has not yet been issued. The land use of this farm is divided into four parts which are 12,140 acres for investment (Sugarcane and Factory Investment), 545 acres for residential area (staff buildings, offices, and prison), 1,000 acres for crop production, 4,045 acres for pasture and reserve.

The type of soil of this farm differs from one place to another, some parts is clay, other parts is clay loam and sandy. The main activity of this farm is the production of paddy. In the area where it reserved for sugarcane activities are still going on. The amount of rainfall which rains on this farm is about 900mm–1,000mm per season. The farm has

The farm has enough pastureland (4,045 acres) which is suitable for grazing purposes. The grazing area is covered by natural pasture. Currently there are 1,642 (1,229 cattle, 260 sheep and 154 goats) animals kept.

A good opportunity which is found to this farm is availability of permanent water source (Wami River) which can be used for irrigation purpose. The distance between Wami River to the farm is 4km.

KITAI PRISON FARM

Project accessibility and potentials

The Project is located 50 from Songea town in Ruvuma Region and 50km from Mbinga town. The farm is along Songea-Mbinga main road. It was initiated/established in 1969 for the purpose of crops and livestock production. The total area of the project is 7,806 acres. Farmland use planning is categorized as follows: arable land 1,750 acres, grazing 1,230 acres, pasture 1,050 acres, residential area 300 acres, forestry and hills 3,476 acres (natural forestry). Project area has been surveyed and beacons installed, so it is legal identification.

The farm is suitable for both crops and livestock production. Soil type differs from one place to another i.e., sandy, clay loam and clay, large area is clay loam which is red. The amount of rainfall per ranges from 1,200mm up to 2,000mm per season. The farm has one season (rain season). Temperature range 25–32 degree Centigrade. Under these climatic conditions many types of crops can grow.

The farm also has enough grazing and pasture area of 1,280 acres which are covered by natural pastures. Currently the farm has 190 animals (81 cattle and 109 goats),

In crops production situation, currently only 600 acres of maize and 20 acres of sunflower are cultivated although the arable land is 1,750 acres it means that 1,150 acres are not cultivated. Within 1,750 acres 800 acres are distamped other remain do not distamped.

Opportunity of this farm is availability of permanent source of water (Dam and Ruvuma River). The dam and a river are found within a project farm, which supports the irrigation system, fishing and hydro electrical power generation.

MKWAYA PRISON FARM

Project accessibility and potentials

Mkwaya farm is located in Mbinga district 12 km from Mbinga town and 110km from Songea. The farm was established in 1976. The project covers a total area of 3,576 acres. The farm areas are surveyed but the title deed is in process. The land use of this farm is categorized into four parts: 300 acres crop production, 50 acres residential (buildings, houses, offices, and prison), 500 acres pastures and 2,726 acres are forestry (natural and planted trees).

The type of soil of this farm differ from one place to another, other part is sandy loam and clay, and other area is clay loam, but large part of the area is clay loam. The amount of rainfall per season is about 1,200mm–1,500mm per season.

Currently only 25 acres of maize are cultivated although there are 300 acres of arable

land, it means that 275 acres are not cultivated. The farm also cultivates coffee; they have 15 acres.

The farm also keeps animals i.e., cattle (18) and goats (58) because they have a grazing area of about 500 acres. The farm is surrounded by the Mtandazi river (permanent river), so irrigation is possible due to assurance of water from the river.

KIBEREGE PRISON FARM

Project accessibility and potentials

Kiberege farm is located in Kilombero district 15 km from Ifakara town and 185km from Morogoro. It was established in 1982. The project covers a total area of 5,958 acres. The farm areas are surveyed with Title Deed No. 4,069MGLR. The land use of this farm is categorized into four parts: 2,500 acres crop production, 658 acres residential (buildings, houses, offices, and prison), 1,000 acres pastures and 1,800 acres forestry (natural trees).

The type of soil of this farm differs from one place to another, the other part is sandy loam and clay, and other area is clay loam, but large part of the area is clay loam. The amount of rainfall per season is about 1,000mm-1,500mm per season.

Currently only 200 acres of paddy and 100 acres of maize are cultivated although there are 2,500 acres of arable land, it means that 2,200 acres are not cultivated. The farm also cultivates sugarcane, they have 143 acres.

The farm also keeps animals i.e., cattle (156) and goats (160) because they have a grazing area of about 500 acres.

Opportunity which available to this farm is to expand and increase in sugarcane production. There is assurance of market of sugarcane due to presence of Kilombero Sugar Company. From the farm to Kilombero Sugar is about 17km, so accessibility is easy. Currently, about 145 acres of sugarcane are cultivated.

MOLO PRISON FARM

Project Accessibility and Potential

Molo farm is located in Sumbawanga district 26km from Sumbawanga town. The pathway from the farm to Sumbawanga town is accessible throughout the year. The project was established in 1967. The project covers a total area of 8,989 acres. The farm areas are surveyed with title deed. The land use of this farm is categorized into five parts: 6,673 acres of arable land, 214 acres for residential (buildings, houses, offices, and prison), 1,026 acres for pastures, 826 acres are forestry (planted trees) and 250 acres for water source reserve. A significant part of the area is arable land.

The type of soil of this farm differs from one place to another but a large area (dominantly) is clay loam. The amount of rainfall per season is about 1,200mm-1,500mm per season. This farm has a single season (rain season).

Currently only 500 acres of maize are cultivated although there are 6,673 acres of arable land, it means that 6,173 acres are not cultivated. The farm also keeps animals i.e., cattle

(231) and goats (101). The crops which can grow well on this farm are beans, wheat, sunflower, horticulture, and many other crops.

Opportunity includes availability of arable land about 6,673 acres. Good climatic conditions favorable for production wheat. Wheat crops have a good market.

Project accessibility and potential

Kingolwira Prison Farm (KPF) is located in Morogoro Municipality. The distance from Morogoro town to the farm is 18km. The distance from the farm to the main road (Morogoro-Dar) is 1km. The pathway from the farm to the main road is accessible throughout the year.

The farm started in 1944 for the purpose of keeping beef cattle but in 1975 the project changed from keeping beef cattle to dairy cattle. The project is under the territory of Mtego wa Simba Prison. The main activity of this farm is keeping livestock both for dairy and beef cattle.

The total area of this farm 5,500 acres. The farm areas is surveyed, the title deed is in process. The land use of this farm is categorized into the following: 1,500 acres for crop production, 200 acres residential (buildings, houses, offices, farm structures and prison), 3,400 acres pastures, 400 acres are forestry (natural forestry).

The type of soil of this farm is differ from one place but large area is sandy loam and other area is sandy soil. The amount of rainfall per season is about 800mm – 1,000mm.

Currently there are about 350 dairy cattle, 125 beef cattle, 230 goats which make total number of 705 animals. The farm also owns the milk processing factory (Kingolwira Dairy Products) which the raw materials depend on the cattle they keep. Among the other opportunities of this farm is the availability and accessibility of the market for milk.

MUGUMU MIXED FARM

Project accessibility and potentials

Mugumu farm is located in the Serengeti District in Mara region. The distance from Mugumu (headquarters of Serengeti District) to the farm is 17km.The pathway from Mugumu town to the farm is good and passable throughout the year.

The farm was established in 1974. The farm covers a total area of 5,294 acres. The land is surveyed but issuance of the Title Deeds is in process. The land use of this farm is divided into four uses which are 120 acres for residential area (staff buildings, offices, farm structures and prison), 745 acres for crop production, 250 acres for forest (planted) and 4,179 acres for pasture and natural forestry.

The type of soil of this farm is sandy loam. The main activity of this farm is keeping animals (cattle), although they are producing crops like maize and sunflower. Amount of rainfall which rain to this farm is about 1000mm – 1200mm per season. The farm has two rain seasons (rain and summer). Rain season starts in February up to end of May and Summer season start in August up to end of January.

In the summer of 2022/2023 summer, 150 acres of maize were produced and in rain season 150 acres of maize and 50 acres of sunflower are cultivated.

Currently there are a total number of 1,490 cattle (370 dairy and 1,120 beef). A good opportunity in this farm is the availability of the pastureland favorable for animal keeping.

B: COLLABORATIVE INVESTMENT ARRANGEMENTS

PCS’s collaborative arrangements are contractual agreements that involves joint operations and partnerships with other stakeholders for the ultimate goal of improving inputs and outcomes of the activities undertaken by PCS in the form of projects for the shared economic rewards and risks. These arrangements fall under two major categories:

1. Projects implemented following PCS’s advertisements   inviting   active participants in projects and activity in the PCS’s lands that are earmarked for such projects.
2. Projects developed following the request by a Partner but subject to the PCS’s

development plan for the earmarked and proposed land.

Projects Implementation Procedure

The following steps are to be followed during initiation and implementation of collaborative arrangements in Projects:

1. PCS will advertise a list of its potential lands that it intends to develop and implement on collaborative basis indicating location of the land, size of the land, the existing potential and proposed use.
2. The Prospective Partners will submit proposals to invest/co-invest or utilize the land on collaboration basis with PCS, expressing the type of land to be developed, the scope of the proposed project, the type of collaborative arrangement, costs estimate, financing arrangements, and viability of the proposed project.
3. Alternatively, a prospective Partner can submit an unsolicited proposal for development of a specific land, which has more potential terms of generating higher yields and revenue to PCS than its current state and the use. PCS will then decide based on the proposed development plan of the identified land.
4. The submitted proposal will include project concepts and feasibility report entailing the operational feasibility, financial viability, type of arrangement, and the mode of financing the project’s operations including the irrigation infrastructure, farm inputs, mechanization methodology, technical advice, etc, as well as the proposed tenure of the project.
5. PCS will undertake due diligence of the prospective Partner(s) to establish among others, their legal status, technical proficiency, financial capability, and any other relevant information that is related with the ability to undertake the project successfully.
6. PCS will review all submitted documents and a decision will be based on the

PCS’s Projects Implementation framework.

PCS COLLABORATIVE OPTIONS & MODELS

PCS’s Collaborative Projects Implementation Framework have the following main types of options:

Revenue Sharing Model

Under this arrangement, Parties (PCS and Partner) will implement the project for the purpose of agricultural farming and sharing revenue generated from selling of the agricultural output from the farming project. PCS will contribute land only and the Partner will contribute financing required for the implementation of the project to its completion. Upon completion of implementing the project the yields from farming will be sold and the revenue generated will be shared based on the pre- agreed percentages. The minimum revenue sharing ratio by PCS shall be twice the market value of the land (value obtained at the beginning of the Project).

The minimum selection criteria for selecting projects under this model include:

1. 1. PCS revenue share must be minimum of twice the value of land
   2. Return on Investment of at least 15%
   3. IRR Minimum of 12%
   4. Minimum project implementation period of 5-years.

Contract Farming Model

Under this arrangement, PCS will enter into sharecropping/contract farming with other parties where PCS mandate and responsibilities will be the production and supply of agricultural products under the forward agreement at the pre- determined prices. PCS will therefore participate via land contribution as well as labor and the produced commodity. The Partner (agribusiness firms) will participate via offering extension services, agriculture inputs, infrastructure development, technical advice, and purchase of the produced commodity. PCS minimum share of the cropping will be between 30% of the sales revenue, based on the type of crop and other specific circumstances.

The contract farming model will mostly be applicable to cash crops and crops whose demand by the Tanzania Prisons Corporation has been exhausted.

Land Lease Model

Under this arrangement, PCS will lease its arable land on a short to medium-term basis, and the Partner will develop agricultural infrastructure and operate the farm for up to 10 years (depending on the size and nature of the investment), thereafter the Partner will return the land together with its immovable infrastructure and equipment to PCS.

The minimum criteria for selecting projects under this model include:

1. Tenure of at least 5 years and at most 10 years.
2. Leasehold to be twice as long as estimated payback period, thus payback period to be between 2.5 years and 5 years.
3. The developed project has to be for commercial agriculture use.

1. The value of the proposed investment in the land must be at least five

times the market value of PCS’s land.

1. PCS to get 25% of the revenue of the project yield during the first half of the leasehold tenure and 50% for the remaining leasehold period.

Land as Equity Contribution

Under this arrangement, PCS will contribute only land and the Partner will contribute all financing required for the implementation of the Project to the completion. This type of joint arrangement will as be detailed hereunder:

Investment Focusing on Ownership and Cash Flow of the Project

This type of collaboration aims at giving the Partner 40% of ownership of the project with cash flow benefits for the first 5 years upon completion of investing on implementing the necessary agricultural infrastructure for farming, as detailed below:

Upon completion of the project infrastructure, plantation and getting yields from the agriculture farming business, and in accordance with the requirements of the Collaboration Agreement, PCS will benefit from 25% of revenue from the project and the Partner will benefit by 75% of the same for a period of five years.

After five years, PCS will get an additional 25% share to benefit from 50% of the revenue. After additional five years (i.e., 10 years since the start of implementation of the project) PCS share of the benefits will be 50% and 50% to the Partner will be the final and permanent share of the benefits from the revenue generation.

Land and Finance as Equity Contribution

Under this Collaboration arrangement, PCS will contribute land and finance and the Partner will contribute remaining capital finance required for the implementation of the project and the parties will agree on the shareholding and revenue benefits sharing structure.

Project implementation and ownership structure under this category shall be through a Special Purpose Vehicle (SPV) in the form of a limited  liability company whose shareholding structure shall be determined at the inception of the project based on the amount of the equity contribution by each partner.

For PCS this will include land and finance and for the Partner this will be in the form of capital finance.

The Minimum criteria to be met are:

1. Minimum Total Project value of TZS 10 billion
2. Minimum IRR of 15%
3. Payback period of not more than 5 years.