Compensation for Losses:

The Government of Malawi will strive to minimise involuntary displacements and land acquisitions to a limited number. However, land for the construction of the irrigation infrastructure will be acquired and compensated appropriately.

Losses will be compensated in accordance with the laws and policies of Malawi, the World Bank and the African Development Bank. The way in which losses are compensated will be transparent and equitable and be discussed with a large group of stakeholders before the Ministry of Lands, Housing and Urban Development (MOLHUD) will approve the Resettlement Policy Framework and Resettlement Action Plan.

No construction works for the SVTP infrastructure will be commenced until all project affected persons (PAPs) have been appropriately compensated for property losses.  Any complaints associated with the SVTP will be heard through the normal channels or by the Grievance Redress Committees that the Project has established at Group Village Headman, TA, District and central levels.

Five broad types of losses will be valued and compensated including:

  • Land
  • Agriculture produce such as crops, fruit trees, plantation crops, flowers
  • Physical assets such as buildings and other structures
  • Trees
  • Access (e.g. water, forest products, grazing areas, watering points, etc.)

People whose buildings will be affected by the main canal will be given a choice of compensation in kind or cash equivalent.  In kind compensation will entail construction of a new house of at least the same quality or better in the same community.   People with land in the canal route and within a wider irrigation block area will get a share in the irrigated block area. People with land in the canal route in areas without irrigation blocks will be compensated for the loss of their land.

People will be compensated for the loss of the produce on their land that cannot be harvested in time and for trees and forests. The valuation of the loss will take into account clearance and preparation of the land and the loss of income during the period until the first harvest.

The design of the irrigation scheme will take into account the access routes of people as well as livestock and wildlife. 

The land required for the irrigation scheme will have to be cleared before construction starts. It is the intention of the Government of Malawi to pay all compensation shortly after the valuation of the losses and before the start of construction works.  

The Government of Malawi has engaged a Consultant for the Resettlement Action Plan for Main Canal 1 and 2 and once the work is completed, compensation payments will follow.

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