The Oromia Regional State and the Ministry of Agriculture and Rural Development (MoARD) are at odds over a segment of land falling within the boundary of the Babile Elephant Sanctuary in East Hararghe Zone. The problem stems from land given to Flora Eco Power Holding AG, a German company planning to produce bio-fuel.

The Babile elephant sanctuary was established in 1971 in what is now East Hararghe Zone, 557Km east of Addis Abeba. It was created to provide a sanctuary for the only elephants located in East Africa. A study is currently underway by Yirmed Demeke, Ethiopian Wild Life Association president, to prove claims that the elephants are a unique species found only in Ethiopia.

In March 2007, the Ethiopian Investment Agency (EIA) issued Flora with the investment license, referring it to the Oromia Investment Commission, which granted the company 10,000ht adjacent to the Babile Elephant Sanctuary.
 

Flora was established 43 years ago by brothers Alan, Eran, and Ayal Hovev. It now provides a steady supply of oil to the biodiesel market. The company’s five-year plan targets an annual production of 700,000tn of oil by 2011. It has invested 671 million Br in Ethiopia.
 

In a letter MoARD wrote to Abadula Gemeda, Oromia Regional State president, last week, it urged for a reconsideration of the plots dimensions since the proposed land for investment infringes upon the boundaries of the sanctuary. Yirmed Demeke said about 150ht of land that was given to the German company falls within the Sanctuary’s territory.
 

“We are responsible for Babile, but the land was given without our knowledge,” said an official with MoARD.
 

The state President’s Office sent a team of experts to investigate the matter. The team includes two individuals from MoARD following a request by the Ministry that its own experts be included in the team.  A source from the office explained that a decision would be based on the report due within a month.
 

MoARD is not alone in expressing its concern about the impact of the proposed investment on the elephant sanctuary; watch groups including the Forum for Environment and Ethiopian Wildlife Association (FEEWA) have lodged their protest to federal and regional government agencies.

According these groups, the company has launched its work on the site without conducting the prerequisite environmental impact assessment as required by federal law, and could thus be detrimental to the wellbeing of the sanctuary. They further allege that the actions of Flora do not conform to national proclamations and international environmental conventions which Ethiopia has adopted.
 

“If the company continues to threaten the sanctuary, our two associations intend to take up the matter with the European Union (EU),” said Yirmed.
 

Meanwhile, Flora is continuing its work on the project site and has already harvested the first round of castor seed, according to Mohammed Ibrahim, Aftercare and Compensation Execution coordinator at the Oromia Investment Commission.

MoARD expects a solution one month after officials of the Ministry consider the report to be submitted by the team of experts.

The 7,000sqkm Sanctuary, which is the largest and only of its kind in Ethiopia, is currently home to 300 elephants. In addition, at least 30 species of mammals, 206 species of birds and 238 plant species are found in Babile.
 

Yirmed however, says that approximately one-third of the Sanctuary has been occupied by about 39 villages.
 

The Hovev family has established and managed some of Israel’s most successful farms and agribusinesses. The company grows crops in Asia, Eastern Europe and Africa.

Flora Eco Power’s main hope is to become a “globally integrated low cost bio-fuel producer”. According to the company’s plan this will be achieved through the cultivation of two high yield non-food crops; Jatropha and castor. It has launched a project on castor seeds and would also engage in Jatropha Plantation in the future, sources close to the company told Fortune.