Mozambique - School of International and Public Affairs - Columbia ...

Mozambique: Mobilizing Extractive Resources for Development May 2013
prior to their resettlement. Social hardships, such as access to roads, longer commutes to markets,
medical facilities and schools, along with traveling longer distances in visiting family members, are
factors which must be taken into consideration with respect to holistic compensation. To minimize
adverse impacts to communities, UN Habitat recommends that relocation should take place to areas
located within five kilometers from original settlements, and this standard should be followed.
CASE STUDY: NEPAL
Radon, J., & Shrestha, K. (2012, December 14).
“Hydro Power and Equity – Need to be One!” Nepalnews.com.
Nepal’s Land Acquisition Act of 1977 (“Land Acquisition Act”) takes a holistic approach to
compensation and can provide useful guidance for resettlement in Mozambique. Section 16(2) of the
Land Acquisition Act provides that the following be taken into consideration in determining the
amount of compensation for land acquired by non-governmental bodies or entities:
a) The price of the land at the time of the publication of the notice of land acquisition;
b) The value of the crops, houses, walls, sheds, if any, to be acquired along with the land; and
c) The losses which the concerned person will suffer as a result of the relocation of his/her
residence, or the place of his/her business, because of the acquisition of his/her land.
Paragraph (c) is particularly important as it contemplates full social costs of resettlement by setting
forth a holistic approach to compensation rather than a narrow buy-sell market approach.
As part of its compensation plans, the Government of Mozambique should consult the IFC’s
Performance Standards on Environmental and Social Sustainability and consider the costs of life
disruption for resettled communities. The Standards provide that: “Transitional support should be
provided as necessary to all economically displaced persons, based on a reasonable estimate of the time
required to restore their income-earning capacity, production levels, and standards of living.” 324 Very
importantly, “documentation of ownership or occupancy and compensation arrangements should be
issued in the names of both spouses or heads of households, and other resettlement assistance, such as
skills training, access to credit, and job opportunities, should be equally available to women and adapted
to their needs.” 325
The investor causing the resettlement, whether public or private, should bear the costs related to the
resettlement including the establishment of the new location, all moving expenses, and maintaining a
long-term dialogue with impacted communities. It is the role of the state to ensure that communities
have access to all basic services including drinkable water, sewage systems, electricity, health and
education facilities, and roads. These investments should be the responsibility of the company causing
the resettlement, but the Government must secure the funds to cover their operational costs.
Recommendation 42:
- Livelihoods of resettled communities must be actually improved. If Mozambique is able to do
this, it will become a global best practice and a leader in establishing sustainable resettlements.
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