Land Acquisition Challenges

Prior to the start of construction, all parties had knowledge of the land needed for construction. Initially, a sufficient amount of land was successfully acquired to start the construction on time. However, further into the construction phase, challenges in acquiring the remaining land needed for the remaining construction activities started to emerge. The process of land and property acquisition starts with an offer based on a fair market valuation. If negotiations with the owner fail, the issue may have to be referred to the courts to seek permission for expropriation.

For one narrow piece of land, negotiations with the owners were initially unsuccessful, and high-level intervention was needed to facilitate the agreement on the use of the land. For the acquisition of some areas of the project land, negotiations with the owners were not successful and a court order had to be obtained. This process is lengthy and has resulted in delays to the completion of the works. As the Procuring Authority was responsible for land acquisition risk, there was no financial impact on the Project Company resulting from this delay. No extension of time for construction works was required, as the issue associated with the outstanding land acquisition led only to minor delays.