Land acquisition refers to the act of acquiring title in the land required for infrastructure delivery. In addition to requirements of land acquisition, there can be a need to establish right of way without having to purchase land. Relocation and diversion of utilities may also be required before the construction can begin, which will raise similar issues.
Procuring Authorities should work closely with Project Companies with respect to any delays in land acquistion during this transition phase. Availability of land is integral to the construction schedule, so where land is not available at the time it was contemplated, it will likely cause delays.
There is often political pressure to achieve financial close on a project before all the required land acquisitions have been completed, in order for it to be seen to have started. One way of managing this is through appropriate use of early works agreements to enable some work to begin before financial close.
Where financial close is achieved before all required land acquisitions have occurred, the Procuring Authority should keep the Project Company informed of the acquisition progress so that any delays can be managed from a very early stage by both parties, including agreeing to changes in the construction schedule and compensation where appropriate. Claims are detailed in Section 3.5 (Claims).
Land acquisition is particularly challenging for linear projects with extensive land requirements, such as road and rail projects and transmission lines. Densely populated areas also make land acquisition a difficult issue in most regions. Expropriation of land may involve lengthy negotiations with existing landowners, court proceedings and the need for a detailed resettlement strategy - a process which generally takes longer than anticipated. In some jurisdictions land ownership is very fragmented, making land acquisition more challenging.
Different aspects of land acquisition may also require specific third-party agreements with stakeholders, such as shop owners and utility owners affected by the construction activities or the new infrastructure, which should be managed in a well-planned and consistent manner.
EXAMPLE Delays caused by land acquisition delays The Gautrain Rapid Rail Link project in South Africa highlights the complexities and consequent delays that can arise due to land acquisition. In that project, pressure to meet the FIFA World Cup deadline meant that work on land acquisition was not completed before construction. It noted that challenges are not only due to non-supportive land owners, but relevant stakeholders will often have concerns over other issues such as environmental impact. For more information, see the Gautrain Rapid Rail Link Case Study. |