(Extract from the SUMMARY )Br This note considers the consequences of using the rice milling facilities recently constructed at the Fanoole Rice Project (FRP) to mill rice produced on the Mogambo. Irrigation Project (MIP) as an alternative to providing this project with its own milling facilities. The following main conclusions are reached: br (i) The processing capacity at FRP is insufficient to handle the entire crop production from the Mogambo Project. br (II) The comparison of capital and running costs of the two alternatives given below clearly indicates the advantages of a separate mill for Mogambo. br