ACCESS TO ACCEPTABLE LAND: A KEY FACTOR IN POWER GENERATION AND TRANSMISSION THE VRA EXPERIENCE

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1 ACCESS TO ACCEPTABLE LAND: A KEY FACTOR IN POWER GENERATION AND TRANSMISSION THE VRA EXPERIENCE Meister Afriyie, F Gh.I.S, SCV Emmanuel.T. Martey, A.Gh.I.S, BL THE LAND FACTOR IN ELECTRICAL POWER SCHEMES Land is a sine qua non for efficient power generation, transmission and distribution facilities land requirements for power schemes (unlike other forms of development are quite unique) different types of power systems have varying degrees of land requirement. 2

2 1.1 THE LAND FACTOR IN ELECTRICAL POWER SCHEMES -Linear for TL, Medium size for thermal,and extensive area for hydro acquisition presents their own social and environmental challenges. projects need to be strategically sited THE LAND FACTOR IN ELECTRICAL POWER SCHEMES demand for land in Ghana is persistently increasing for competing uses. major challenge securing acceptable land in the face of socio-political and geographical changes: -move from military dictatorship/pseudo socialism to democracy. -high population growth,citizens asserting rights to land. no land is easily taken by state/statutory body without the co-operation of the owners. 4

3 1.2 HISTORICAL PERSPECTIVE The critical role of land in Ghana s power production was long recognised during the Colonial period. The Preparatory Commission in 1955 anticipated that the construction of the Hydro Electric Dam, which was originally to be sited at Adjena, was going to flood an area in excess of about 3,500 square miles at the maximum elevation HISTORICAL PERSPECTIVE The valuation survey undertaken between 1954 and 1955 estimated compensation to be about Three Million Pounds ( 3,000,000). The Commission, did not recommend the resettlement of the people to be affected. The people were to resettle themselves. 6

4 1.3 THE VRA S LAND PORTFOLIO. Act 46 Section 27 gave authority to the VRA to acquire land for the following purposes: - For the construction of the dam - For inundation of the lake bed - Resettlement sites - Akosombo ( Township) - For the proper discharge of its functions Land was requisitioned for the 52 resettlement townships, lakebed and Akosombo in the early nineteen sixties THE VRA S LAND PORTFOLIO These lands were acquired mainly by resort to the compulsory acquisition machinery. The socio-political dynamics in Ghana at the time; President Nkrumah was seen as a socialist, with an agenda for industrialization of the country. The Akosombo Project was the catalyst for growth; anybody that was perceived to be hampering the smooth implementation of the project was regarded as a reactionary who had to be swept aside. -. Land owners and chiefs were pressurised to donate land for the project. 8

5 1.3 THE VRA S LAND PORTFOLIO The writers opine that the CPP government never intended to pay compensation for the lands. the legal acquisition came so many years after lands had been taken LEGAL AND INSTITUTIONAL CHALLENGES 10

6 Table 1 : VRA LAND PORTFOLIO DESCRIPTION AREA IN ACRES REMARKS Lake Bed 2,176,000 Legally acquired in 1974 (E.I. 98/74) even though flooding started in Resettlement Sites 1,207,000 1st legal instrument was promulgated in 1968, even though VRA took possession of the Sites in Kpong Hep Including 6 Resettlement Towns 17,700 Acquired in 1980 Akosombo Township 7,000 Half of the land was through the Concession Ordinance and other half by Executive Instrument No. 35 of 1969 Aboadze Thermal Plant Site 425 Land acquired in 1995, Legal Instrument will be issued in Others Lands 350 Lands for smaller estates, substations etc. Easement For Transmission Line Right-Of-Way 4,000 Circuit Kilometres This is the easement for 225KV 161KV, 69KV and 34.5KV INSTITUTIONAL CHALLENGES Land as a commodity is unique. Its ownership; the exercise of all forms of rights, transfer and alienation are regulated by rules and laws (both customary practices & statutory 12

7 2.3 LEGAL CONSIDERATIONS/MODALITIES FOR ACQUISITION OF LAND Article 20 of the 1992 Constitution of the Republic of Ghana makes adequate provision for the protection of property ownership rights No property of any description, interest in or right over any property shall be compulsorily taken possession of or acquired unless : -a) the acquisition is necessary -b) clearly stated reasonable justification for causing hardship that may result to property owners. -C) Provision for prompt payment of fair and adequate compensation. 13 State acquisitions can only be done when there are 2.3 LEGAL CONSIDERATIONS/MODALITIES FOR ACQUISITION OF LAND Some projects suffered temporary hold ups as a result of people preventing physical access to the land on account of delay by the LVB to process compensation to victims. The operations of some of these state agencies are characterised by bottlenecks such as administrative bureaucracy, ineptitude, lack of co-operation etc MODALITIES FOR ACQUISITION OF LAND -Private Treaty Acquisition 14

8 2.3 LEGAL CONSIDERATIONS/MODALITIES FOR ACQUISITION OF LAND -Compulsory Purchase -bulk of VRA s acquisition; preferred option,free from encumbrances. -Act 186 and Act 46 for ROW. -less than 20% of land for ROW,no compensation. This law is however being challenged as being inconsistent with the Constitution CURRENT LAND REFORMS Governments over the years have sought to streamline land management in the country Land Administration Project (LAP) aimed at taking a holistic view of the land sector challenges and introduce reforms Major policy objectives; ensuring that socioeconomic activities are consistent with such land use through sustainable land use planning, facilitate equitable access to and security of tenure of land, protect the interests and rights of landowners, ensure prompt payment 16 of fair and adequate compensation of government acquired

9 2.4 CURRENT LAND REFORMS The implications of follows: reforms for VRA are as -Access to land can only be achieved by following required procedure -Land would no longer be obtained at relatively cheap prices. - payment is expected to be made upfront before the land could be utilised IMPACT OF LAND VALUES ON POWER PROJECT Table 2 : TRENDS IN LAND VALUES TRENDS IN LAND VALUE IN AN AREA IN ACCRA UNDER THE ROW YEAR VALUE OF LAND PER ACRE REMARKS 1992 $7,500 This was the average per acre compensation paid by VRA 1997 $9,000 This was the average per acre compensation paid by VRA 2000 $50,000 Market value 2005 $100,000 Market value 18

10 3.1 REQUIREMENTS OF INTERNATIONAL FINANCIAL AGENCIES International Financial Agencies have strengthened their policies in favour of fair treatment of victims of developmental projects. developmental projects must be done at minimum socio-economic cost to the affected people. They also prescribe full payment based on FULL Replacement values for affected properties, vulnerability allowances, etc REQUIREMENTS OF INTERNATIONAL FINANCIAL AGENCIES premium on sites of socio-cultural significance extensive consultations with all stakeholders. Payment of compensation, must be upfront. 20

11 COMPENSATION PAYMENTS Act 46, put a cap of 3.5 Million ( Pounds Sterling) on compensation compensation paid by VRA was in excess of 9 Million Pounds The Government has since 1971 has been responsible for payment. DESCRIPTION OF PROJECT AMOUNT US $ REMARKS Table 3: TTPP NESRP Takoradi Esiama Project Ghana-Ivory Coast Interconnection Kpong H. E. P. 1,979, Crops and Structures only 1,538, Crops and Structures only 85, Crops and Structures 569, Crops and Structures only 2,659, Crops, Lands and Structures, excluding Resettlement Towns National Electrification Project Lower Volta Elec Sch 293, Crops and Structures only , Crops and Structures 4.0 HUMAN RESOURCE REQUIREMENT Land management is a specialised discipline, which require professional expertise. Unfortunately, most state agencies do not give much consideration to this vital human resource requirement. In the case of the VRA, until 1990, there was no Real Estate Department. Lands Department handled all issues on land. - lack of internal capacity contributed to problems on land management. 22

12 4.1 REQUIRED STAFF To ensure efficiency in land acquisition, a separate Department or unit needs to be in place. Key skills :Land Law, Physical Planning, Land Use Planning, Project Management, Environmental Management, Land Appraisal/Valuation and sociocultural appreciation. negotiation skills, organisation, communication, analytical and resilience to work are required. Certified Estate Surveyors who undertake CPDs Capacity to develop clout, and also networking LESSONS FROM VRA OPERATIONS The common problem ; resistance of the people, court action for compensation, lack of documentation of acquisition/compensation records; non completion of formal/legal acquisition after taking possession of land etc. Specific lessons that have been drawn from VRA s Power Project Operations include: - The need for Long Term Planning 24

13 5.0 LESSONS FROM VRA OPERATIONS - Deployment of Right Calibre of staff - Non Reliance of External Agencies - Prompt Payment Of Compensation - Extensive Consultations PAYMENT FOR LAND Non payment of land acquired for transmission lines. By the Land Statutory Wayleave Act 1963 Act 186 unless the land taken is more than 1/5 of the holdings and the reminder could not be effectively used, no payment is made. 26

14 7.0 RECOMMENDATION The following recommendations are therefore made: (1) There must be long term planning for electric power schemes RECOMMENDATION (2) Estate surveyors must be involved at initial planning and selection of sites/row. Not as an after thought. (3) Some form of compensation must be paid for all right-of-ways acquired transmission lines. (4) Power systems must be designed in ways that will minimise the amount of land required and its effects on rights in land and settlements 28

15 7.0 RECOMMENDATION (5) Adequate arrangements should be made to secure financial and other supports (6) The existing laws on state acquisition of lands would have to be reviewed RECOMMENDATION (7) Compensation due for communal lands or rights taken must be structured in such a way that it extends, the benefits beyond the present generation to posterity (8) Adequate records and documentation should be kept. (9) residual issues of resettlement and environmental problems should be properly dealt with. 30

16 8.0 CONCLUSION considered the role and criticality of land it is increasingly becoming difficult securing access to inexpensive acceptable lands lessons discussed and recommendation made will serve as guide 31 REFERENCES 1992 Constitution of the Republic of Ghana State Lands Act 1962 Act 125 Lands (Statutory Way leaves) Act 1963 Act 186 Volta River Authority Act 1961 Act 46 Land as Resource for Development Proceedings of the Ghana Academy of Arts and Sciences Vol xxxvi 1997 Accra Volta Man s Greatest Lake James Moxon, 1984 Volta River Project: Report of the Preparatory Commission, 1955 Ghana Land Policy Document,

17 33 YEDA MO ASE 34

18 GROWTH OF VRA S TRANSMISSION LINES APPENDIX '1' GROWTH OF VRA'S TRANSM ISSION LINES (FROM 1965 TO DATE) LENGTH IN KM 4,400 4,200 4,000 3,800 3,600 3,400 3,200 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1, kV 69kV 161kV 225kV TOTAL 1,400 1,200 1, a b c 1998 d 1999e 2002 YEAR 35