UNIT FOUR

Expropriation
Processes and
Procedures
 Unit objectives
 After completion this unit, you will be able to;
 Understand the general process and
procedures of expropriation
 Describe the valuation process
 Understand principle of fairness
 Equipped with valuation and compensation
 Explain opportunities to appeal
 Discus advocacy and assistance in
expropriation cases
 Introduction
 Compulsory acquisition is a power of
government, but it is also the process by
which that power is exercised
 Processes for the compulsory acquisition of
land for project based, planned
development are usually different from
processes for acquiring land during
emergencies or for land reforms.
 Yet other processes may exist for electricity
companies and others to acquire
easements or servitudes.
General possible process of Expropriation

 In general, a well-designed compulsory

acquisition process for a development project
should include the following steps:
1. Planning
2. Notice/publicity
3. Valuation and submission of claims
4. Payment of compensation
5. Possession
6. Appeals
7. Restitution:
 1. Planning
 The planning phase of a major public investment
project should include the identification of any lands
to be acquired for the project.
 The exact location and size of the land to be acquired
is identified.
 Relevant data are collected.
 An impact assessment is a common requirement of
the planning phase.
 Such assessments should ensure that the acquiring
agency considers the social, economic, and
environmental impacts before deciding whether and
how to proceed with the project, and determines
ways to minimize any negative aspects.
 2. Notice/publicity:
 Notice is published to inform owners and
occupants in the designated area that the
government intends to acquire their land.
 The provision of notice of the intention to
compulsorily acquire land protects the rights
of affected people.
 People are requested to submit claims for
compensation for land to be acquired.
 The notice describes the purpose and
process, including important deadlines and
the procedural rights of people.
 Notice…..
 Notice should be given as early as possible to allow
people to object to the acquisition of their land,
 To submit compensation claims, or
 To appeal against incorrect implementation of
procedures
 To ensure that all affected people are aware of the
project, notice should be publicised as widely as
possible
 Printed information should be sent or delivered to
affected households and displayed in public areas
 Oral communication will be important in areas of
high rates of illiteracy
3. Valuation and submission of claims

 During the valuation phase, the acquiring agency

and the people whose land is being acquired gather
information and evidence to support their arguments
for the compensation values they believe to be
equitable.
 Equivalent compensation for the land to be acquired
is determined at the stated date of valuation.
 Owners and occupants submit their claims.
 The land is valued by the acquiring agency or
another government body.
 The acquiring agency considers the submitted claim,
and offers what it believes to be appropriate
compensation.
 Valuation and submission of claims…

 Valuation for compensation in compulsory land

acquisition is driven by the provisions of the acts,
decrees and other relevant statutory enactments
guiding the process.
 Valuation as a process lends itself to criticism, as
there is no universal answer to the question of value.
 Issues bordering on the
 purpose-of-valuation,
 value-to-whom,
 statutory requirements and
 valuers subjective judgment

---are key issues that significantly affect the final

estimate of value
4. Payment of compensation: The government pays
people for their land or resettles them on alternate land.
5. Possession: The government takes ownership and
physical possession of the land for the intended
purpose.
6. Appeals: Owners and occupants are given the
chance to contest the compulsory acquisition, including
the decision to acquire the land, the process by which
the land was acquired, and the amount of compensation
offered.
7. Restitution: Opportunity for restitution of land if the
purpose for which the land was used is no longer
relevant.
Principle of fairness and equity in
expropriation
 The process adopted, the base of
expropriation, rules concerning fixing and
payment of compensation as well as all
other relevant issues concerning compulsory
purchase and compensation should be
clearly and comprehensively authorized in
legislation.
 ensure equal treatment of affected parties in
all cases of compulsory purchase as well as
the comprehension, equity and predictability
of the application of the procedure.
 Principle of fairness and equity in
expropriation…

 The compulsory purchase process shall be an

inherent part of the process of land acquisition
and be exercised in an objective, impartial,
independent and ethical manner. The body
conducting the compulsory purchase process
should work exclusively within the legislation
and internationally-recognized best practice.
 When considering the method of acquisition, a
balance between the fairness, cost efficiency
and effectiveness of the process should be
made.
 General valuation processes

 Valuation for compensation in compulsory land

acquisition is driven by the provisions of the acts,
decrees and other relevant statutory enactments guiding
the process.
 During the valuation phase, the acquiring agency and
the people whose land is being acquired gather
information and evidence to support their arguments for
the compensation values they believe to be equitable.
 the acquiring agency makes an offer; if this offer is not
accepted by the owner or occupant, the acquiring
agency makes an official determination of compensation
which can be appealed only in court or to a quasi-judicial
body such as a tribunal in other countries; the acquiring
agency is required to first negotiate in good faith.
 General valuation processes
….
 Responsibility for the valuation of land varies from
one country to another. In some countries the work
is done by or for the acquiring agency while in other
countries the valuations are the responsibility of
independent commissions.
 Valuation as a process lends itself to criticism, as
there is no universal answer to the question of
value. Issues bordering on the purpose-of-valuation,
value-to-whom, statutory requirements and valuers
subjective judgment are key issues that significantly
affect the final estimate of value and cannot be
ignored.
Determining valuation and compensation

 In general, compensation should

be for
 Loss of any land acquired;
 Buildings and other improvements to the
land acquired;
 The reduction in value of any land retained
as a result of the acquisition; and
 Any disturbances or other losses to the
livelihoods of the owners or occupants
caused by the acquisition and
dispossession.
Determining valuation and compensation…

 If market value is the basis of

compensation, legislation should clearly
state what is understood by market value.
 It may not always be possible to determine
compensation based on market value.
 Alternative approaches vary depending on;
 the political economy of a country,
 the qualities of the land acquired, and
 the nature of the land rights.
Determining valuation and compensation…

 Some alternative approaches include:

 A replacement cost mode (cost approach)

 Tax valuations (assessed value methods)
 Transaction data (sales comparison approach)
 Valuation and compensation in
complex situations
 Valuation for compensation is complex in
different situation,
 in partial rights,
 religious sites,
 Valuation and compensation of land
owned by extended families
 land under customary tenure and
 properties occupied illegally
 Resettlement and alternative
land as compensation
 There may be occasions when financial
compensation is inadequate. In cases where
a community is to be displaced, the
allocation of land for resettlement or leasing
arrangements may remove the problems
associated with financial compensation.
 The offer of alternative land as
compensation may avoid problems that can
arise when financial compensation is paid to
people who are unused to handling large
amounts of money.
 Resettlement and alternative land as
compensation
 Resettlement schemes can fail for a number of reasons.
 The land provided as compensation may have poorer quality
soils and lack the water and forest resources that existed in
the original location.
 The new area may not have basic infrastructure
 The land identified for resettlement may be already occupied
by communities with strong claims to that land, and the
introduction of additional people to the area can result in
overcrowding, environmental degradation and competition for
increasingly scarce resources.
 If the new land is remote, it may lack a local economy that can
provide the level of off-farm income that exists in the original
location.
 Resettlement plans should ensure that people do not face
impoverishment when they are relocated to areas
 Opportunities for appeal
 Legislation should provide opportunities for
owners and occupants to appeal against
the compulsory acquisition of their land.
 Procedures to appeal protect the rights of
affected people.
 At the same time, governments have an
interest in providing effective procedures:
 a belief that the appeals process is legitimate
will encourage people not to resort to other
forms of protest that could lead to violence
and even loss of life.
 Reasons for appeals
 Legislation should establish the
situations when a person can appeal.
There are generally three types of
appeals:

 Against the purpose of the project and the

designation of land to be taken;
 Against the procedures used to implement
compulsory acquisition; and
 Against the compensation value.
 Mechanism for review
 Owners and occupants should have the right to
appeal to a body that is
 independent of the acquiring agency
 The review of appeals should be fair,
inexpensive, easily accessible and prompt
 Two main types of review procedures exist

 juridical
procedures in civil law countries
 Administrative procedures in common law countries

 However, many countries have a combination of

administrative and judicial review mechanisms.
 Support for advocacy and assistance

 People whose land is being compulsorily acquired should

be given help to understand every aspect of the process.
 They may need assistance contesting the decisions and
actions of the acquiring agency, getting second opinions
on the value of their land, and ensuring that
compensation is paid
 Non-governmental organizations (NGOs) can play an
advocacy role throughout the process. They can educate
people about their rights, advocate on their behalf, and
teach them negotiation skills to argue for equitable
compensation
 The government has the primary responsibility for
ensuring that affected owners and occupants do not
suffer injustice as a result of compulsory acquisition
 End Of The chapter

Thank
you!!!