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Compensation

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Governments all over the world undertake economic development projects that require acquisition of land from land owners or land-use right holders. Such projects are mainly infrastructural in nature like construction of schools, hospitals, government offices and storage facilities, roads, railways, dams, electric and water pipe lines, industrial parks, markets, urban renewal, etc.

Constitutions of all countries give states the power of eminent domain to expropriate private land or land-use rights for ‘public purpose’ or ‘public interest’ and guarantees ‘fair’ or ‘just’ compensation for people affected or displaced from their lands. For example, Article 40 (8) of the Ethiopian Constitution states: “Without prejudice to the right to private property, the government may expropriate private property for public purposes subject to payment in advance of compensation commensurate to the value of the property.”

To this end, the FDRE government has provided the existing Proclamation No. 455/2005 and it is implementing Regulation No 135/2007. Some regional states have adopted a detailed directive while others are still working on it. This means, while some of the regions use their own directives and guidelines for the purpose of expropriation and valuation of property, others are using the Federal proclamation and regulation. Those regions without directives and guidelines are facing problemsbecause there are some gaps which are expected to be filled by detailed rules of the regions. Even for those who have them, the directives and guidelines adopted are not uniform and include considerable differences. This causes variation in valuation approaches and the amount of compensation paid.

In view of the above, FIIDCA aims to develop formulas for the assessment of compensation to paid in the course of undertaking infrastructure works, keep records thereof and follow up their implementation. Its objective is to have a uniform national compensation formal by developing policy and implementation guidelines that have to be followed for compensation and rehabilitation of livelihoods.

Last Updated ( Monday, 17 July 2017 08:21 )  

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