Continuing from yesterday, here’s the latest update. I couldn’t get through as much last night quite simply because David Attenborough was on. And I make no apologies for this! HA.
Finance;
The President may, subject to the provisions of this Act, acquire any land for any estate or term where such land is required for any public purpose”
‘public purpose’ and includes at sub-section (e) where land is used for or “in connection with mining for minerals or oil
“If the President resolves that any land is required for a public purpose, the Minister [of Lands] shall give notice of intention to acquire the land to the persons interested or claiming to be interested in such land or to persons entitled to sell or convey the same.
requires that where any land is acquired for public use, compensation can be agreed upon or determined in accordance with the provisions of the law. Section 11 (2) states that compensation value for land will be limited to the same value as the land acquired and with similar terms and conditions as the land acquired.
states that where land is acquired compulsorily by the President, “the Minister shall on behalf of the Government pay…out of moneys provided for the purpose by Parliament, such compensation as may be agreed upon or determined in accordance with the provisions of this Act”. Section 11 (2) also states that “the President may, with the consent of the person entitled to compensation under subsection (1) of this section and shall, in cases where it is so required by subsection (3) of section 12, make to the person entitled to compensation a grant of public land not exceeding in value the value of the land acquired, for an estate not exceeding the estate acquired and upon the same terms and conditions as the land acquired was held, so far as the same may be practicable, in lieu of or in addition to any compensation payable under this section
states that no compensation shall be awarded in respect of any land which is ‘vacant ground’. Section 12 (4) states that land will still be considered as vacant land even if it has been fenced, hedged, levelled, ploughed or cleared (including in part) or which is being used as sites for deposit of waste or refuse or parking of vehicles. It adds that in rural areas, land shall be considered vacant if it has not been used for agricultural purposes for the last 12 months preceding the publication of the notice to acquire the land for public purpose.
“Where the land acquired is land which, immediately prior to its acquisition, was being used as a cemetery or a crematorium or for any purpose other than for gain or profit for, or personal occupation by, the person holding the Government lease or right of occupancy in respect of the land the compensation shall, if the President so directs, consist of the value of any unexhausted improvement
The Commissioner for Lands or authorised officers will undertake valuation for compensation purposes. A compensation schedule will be prepared, together with the claims for compensation and submitted to the Compensation Fund for verification and consideration. Within 30 days, the fund must make a determination either approving or rejecting payment.
requires compensation to take the form of monetary compensation. However, without prejudice to this form of compensation, regulation 10 (2) gives the Government the option of providing all or a combination of the following as compensation.
Plot of land of comparable quality, extent and productive potential to the land lost
A building or buildings of comparable quality, extent and use comparable to the building or buildings lost.
Regular supplies of grain and other basic foodstuffs for a specified time.
defines “prompt compensation payment” as payment of compensation within 6 months after the targeted land has been acquired.
i) Village Land Council - The Act gives the Village Land Councils powers to resolve land disputes involving village lands (Section 7). If the Council fails to resolve the dispute, the matter can be referred to the Ward Tribunal as established by the Land Act (1999) and the Village Land Act. ii) Ward Tribunal - Each Ward Tribunal acts as a court with jurisdiction over all proceedings of civil nature limited not exceeding Tshs. 3 million in relation to its area.
Before commencement of the mining operations, the Licensee shall ensure the proposed plan for relocation, resettlement of, and payment of compensation to people within the mining areas is implemented in accordance with the Land Act.
Land Acquisition and Involuntary Resettlement recognises that project-related land acquisition and restrictions on land use can have adverse impacts on communities and persons that use the land, including physical displacement (relocation or loss of shelter) and economic displacement (loss of assets or access to assets that leads to loss of income sources or other means of livelihood)
To avoid, and when avoidance is not possible, minimise displacement by exploring alternative project designs
To avoid forced eviction.
To improve, or restore, the livelihoods and standards of living of displaced persons.
Project proponents must offer displaced persons and communities’ compensation for loss of assets at full replacement cost, and other assistance to help them improve or at least restore their standards of living or livelihoods.
Summary, while every effort has to be made to minimise the impact on locals, the legislation appears to favour the tenement owner, considerably, this could be considered to be a natural incentive designed to encourage the locals to work with KNL. The risk is that if they don’t, and the matter proceeds past the village elder to court, the court will replace a mud-hut with a mud-hut, dry land for dry land etc.
Valuation Methodology;
The market value of the land and unexhausted improvement shall be arrived at by use of comparative method evidenced by actual recent sales of similar properties or by use of income approach or replacement cost method where the property is of special nature and not saleable.
Summary, there is no premium or mark-up applied. The land is assessed based on their livelihoods, subsistence farms are valued as subsistence farms.
Topography and understanding locals;
Provide additional targeted assistance (e.g. credit facilities, training, or job opportunities), and opportunities to improve or at least restore their income-earning capacity, production levels, and standards of living to economically displaced persons whose livelihoods or income levels are adversely affected.
Summary, this bit had me most excited. It turns out employing the locals you’re moving not only gives you a capable workforce, but it counts towards RAP compensation!
KNL Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
(20min delay)