Strengthening Governance and Participation in Uganda's Petroleum Industry

7/27/2019 Strengthening Governance and Participation in Uganda's Petroleum Industry

http://slidepdf.com/reader/full/strengthening-governance-and-participation-in-ugandas-petroleum-industry 1/21

STRENGTHENING GOVERNANCE

AND PARTICIPATION IN UGANDA’S

PETROLEUM INDUSTRY

Government’s Policy on Compensation andResettlement

BY

Gilbert KermunduChief Government Valuer

Valuation Division

Ministry of Lands, Housing & Urban Development

Government of Uganda

Email: [email protected]

21st – 22nd October, 2013 National Conference on Oil &Gas: Key Stakeholders’ Conference onStrengthening Governance and Participation in Uganda’s Petroleum

Industry Presented at Imperial View Hotel, Entebbe

1

mailto:[email protected]

mailto:[email protected]



Structure of Presentation

1. Introduction2. Compensation & Resettlement

3. Legal, institutional and policy framework

4. The land acquisition process (recommended)

5. Basis of assessment and what is assessed

6. The role of the CGV in Land Acquisition

7. Sources and solutions to Grievances



Introduction•

This document aims at presenting Government’s policyon Compensation and Resettlement Processes inUganda.

• Land Acquisition is defined as a process through which

the Government acquires land (private) for public use or interest. • Land acquisition takes into account the following:-a) The taking of private property (land)

b) By Governmentc) For Public use/interestd) With just compensation



Compensation & Resettlement

• Compensation:

Defn: Indemnification; payment of damages; which isnecessary to restore an injured party to his formerposition.

• Resettlement:

Defn: This refers to the movement of individuals or

groups of people from one location to another, whichmay be permanent or temporary.



ega , nst tut ona an po cy

framework The Constitution under Article 237(1) vests all land in the citizens of

Uganda. However, under Article 237(1) (a), the Government or

Local Government may acquire land in the public interest.

• Art.26(2)(b)…prompt payment of fair & adequate compensationprior to possession/acquisition

• Art.237(2)(a)….takes cognizance of Art.26

The following are some of the legal instruments that guide Landacquisition for public use.

• Land Act CAP 227, 1998 (as amended in 2010) • The Land Acquisition Act CAP 226, 1965• The Mining Act, 2003: Section 82



Legal, Institutional and Policy

Guidelines Cont’ • The Registration of Titles Act Cap 230, 1924

• The Survey Act CAP 232, 1939

• The Surveyors Registration Act Cap 275, 1974

•

The Access to Roads Act Cap 350, 1969• The Local Governments Act Cap 243, 1997 (as amended)

• The Physical Planning Act 2010

• The Petroleum Act 2012



Legal, Institutional and Policy

Guidelines Cont’ • Uganda does not have a National Resettlement Policy.

• However, in addition to the aforementioned laws, policies andguidelines, Uganda being a signatory to international conventionsand treaties, International guidelines such as those issued by World

Bank (The World Bank Operational Policy 4.12, Framework ofNovember 2002) are adopted.

• Resettlement in Uganda can either be Physical Resettlement orMonetary Compensation. However, monetary compensation is thegenerally the most preferred form of resettlement by the PAPs;Project Affected Persons (PAPs) are given adequate cash topurchase land, rebuild houses, replant crops and re-establishlivelihood in places of their choice. Financial management trainingis given to PAPs prior to their compensation to avoid the misuse ofthe respective compensation award.



The land acquisition process

This section describes the general preliminaryprocedures to be undertaken in the landacquisition process:

• Reconnaissance surveys – Communityconsultation involved.

• Identification and demarcation of the land tobe acquired – location and size - Communityinvolved.

• Declaring an area a planning zone by theMinister.



The process cont’

• Notification of the land owner(s) of the intendedacquisition.

• Identification and verification of ownership.

• Valuation to ascertain the replacement cost/value .

• Disclosure, arbitration, compensation and resettlement.

• Detailed cadastre surveys carried out and titling byUganda Land Commission/Government.



Basis of assessment and what is

assessed



Claim viz. Basis

Category of claims Basis of assessment

Owners – Land Cash compensation based upon Market Value of

land + disturbance allowance (15% or 30%) See Land

Act sec.77(2)

Tenants – Land Entitled to compensation based upon asapportioned to land + disturbance allowance (15%

or 30%) See Land Act sec.77(2)

Licensee – Land Have NO CLAIM to land, entitled to compensation

for improvements + disturbance allowance (15% or

30%) See Land Act sec.77(2)

Owners – “Non Permanent”

Buildings

Cash compensation based on Replacement Cost as

determined under District Compensation Rates +

disturbance allowance (15% or 30%) See Land Act

sec.77(2)

21st – 22nd October, 2013

National Conference on Oil &Gas: Key

Stakeholders’ Conference on Strengthening

Governance and Participation in Uganda’s

Petroleum Industry Presented at Imperial

12



The basis cont’d…

Category of claims Basis of assessment

Owners – “Permanent”

Buildings

Cash compensation based on Market Value-Land Act

Sec.77 (1b) + disturbance allowance (15% or 30%) See

Land Act sec.77 (2).-Current Replacement Cost

Crops and Trees Cash compensation based upon District Compensation

Rates + disturbance allowance (15% or 30%) See Land

Act sec.77 (2). (Rates for crops are determined on anet or an expected one season output).

Where time allows, claimant should be given an

opportunity to harvest crops that are due for

harvesting.



Stakeholders’ Conference on Strengthening

Governance and Participation in Uganda’s

Petroleum Industry Presented at Imperial

13



The basis cont’d… Category of claims Basis of assessment

Protected Areas (National Parks, Wildlife

Reserves And Forest Reserves)

The protected areas are owned by

Government and acquisition ought to be

handled REASONABLY unless these are

licensed to private user under a SPECIAL

LEASE.

CONSENT to enter and use land in

protected areas should be sought at first

instance

Land under diminution As a result of the restrictions, the land

value is diminished (in value) also known as

“diminution”. The diminution rate varies depending on the circumstance.



Stakeholders’ Conference on StrengtheningGovernance and Participation in Uganda’s

14



Bases Defined Market Value: Defined as the estimated amount for which a

property should exchange at the date of valuation between awilling buyer and a willing seller in an arm’s length

transaction after proper marketing wherein the parties haseach acted knowledgeably, prudently and withoutcompulsion.

Market values are determined by the Valuer and are based onland selling values governed by the following factors:

•

Location in relation to urban centers• Economic activity in the area• Physical and geographical factors• Population density• Vicinity to services such as water electricity and roads•

Cultural attitudes to land transactions.• Sources of information for market values are derived from

field enquiries in the various project areas, land/valuationoffices and estate agents.




15



Definition of Basis Cont’d… • Replacement Cost

: Defined as the estimated cost oferecting the subject building, or a modern substitutehaving:- the same gross internal area and ancillary siteworks as that existing, together with the relevantprofessional fees and other associated expenses directly

related to the construction & site work.

• Diminution generally refers to the act of decreasing orreducing the worth of something (land, in this case)

caused by an action of a second party or entity. It is arecognized form of actionable damage (to land) in law.

18/12/2012



16



Definition of Basis Cont’d… •

Compensation for property damages arising out ofdiminution is measured by loss in property value.

• Diminution is a form of land degradation as the affected

land may not be used for its ‘highest and best use’.

• ‘Highest and Best Use’ is defined as the reasonableprobable and legal use of vacant land or improved

property which is physically possible appropriatelysupported financially feasible and that results in thehighest value




17



The role of the CGV in the

process1. All government entities are required by law to

compensate Project Affected Persons (PAPs) based onvaluation report authenticated by the ChiefGovernment Valuer (CGV).

2. However, following the human resource constraints inCGV’s office to undertake the valuation exercise, therole of CGV’s office has in most cases been limited tosupervision of Private Consultant Valuers engaged to

do the valuation on behalf of government.3. CGV’s office is not involved in the procurement of the

consultancy.




18



Key Professional Team

Composition

1. Registered Land Surveyor (for land surveys)

2. Registered Valuation Surveyor (for valuation aspects)

3. Sociologist (Community engagement, socio-economic

baseline studies)

4. Any other deemed relevant



Sources of Grievances1. Misinformation - (give timely, accurate and reliable

information to stakeholders).

2. Compensation delays - (Pay on time. A shillingreceived today is more valuable than that received on alater date).

3. Anxiety and speculation- (sensitization andengagements, cut-off dates e.t.c): DO NOT ACCEPTHOPE VALUE!

4. Determination of entitlement – (Due diligenceassessment)

5. Dispute on ownership – (Local leaders come in handy.Consult Land office for other inquiries)

6. Handling vulnerable groups – (Special arrangement bemade for claims not handled under valuation)



Questions and Answers

Key Question

What are the Pros and Cons of physical resettlement inUganda’s land acquisition Process?

THANK YOU

Strengthening Governance and Participation in Uganda's Petroleum Industry

Documents

Transcript of Strengthening Governance and Participation in Uganda's Petroleum Industry