PART 11  - RATES

 

 

PART 2

COMPENSATION RATES

 

 

 

 

1.      INDIVIDUAL RESOURCES

 

 

These will be compensated by means of amounts in cash or in kind to individual households, which lose assets or income and are eligible for compensation under the Compensation Policy.

 

All rates are based dated April 1996 and will be indexed annually using the Lesotho Consumer Price Index (CPI).

 

1.1              Arable Land

 

1.1.1    Land-for-land

 

            For a given area of arable land lost to the project the affected household will be entitled to an equivalent area of arable land at its chosen destination, assuming that such land is available.  “Equivalent” has the general connotation of 1:1, or hectare for hectare, unless there is evidence of significant differences in land capability due to fertility, slope, soil type and depth, altitude, etc.  In such cases the ratio of land lost to land provided will reflect the differences in productivity between the two land areas.

 

1.1.2        Cash

 

1.      The crop from one hectare of land in the project area is valued at

M1, 800 and includes compensation for the crop residue.

 

2.      Compensation for arable land less than 1000sqm. Will be paid in a lump sum at a rate of M3.72 per sq.

 

3.      LHDA will consider compensation by lump sum payment only when:

 

·        The recipient is able to satisfy LHDA that he or she will invest that sum in an asset whose capital value income are very secure or;

·        The total arable land lost to a household is less than 0.1 hectare.

 

4.      Assuming a discount rate of 4.5% a capital sum of M37, 172.32 would initially re required to compensate people for a hectare of arable land acquired.

 

5.      The annual cash payment will be on an indexed linked basis.  An amount of M1800 per hectare per year will be paid over a period of 50 years.

 

 

 

 

1.1.3        Grain

 

A hectare of arable land or part thereof shall be compensated with annual deliveries of grain and pulses based on a net yield of 1000kg/ha.  Grain payments will be based on a crop mix of 970kg maize and 30kg beans.

 

1.2              Gardens

 

Each family moving to a destination where garden land has not been fully compensated in-kind will receive compensation for garden production, at the rate of M3.00 per sqm. Per year for 50 years or M61.95 per sq. as a lump sum.

 

1.3              Trees

 

1.3              Fuel and Timber Trees

 

Compensation for fuel and timber trees (willows, poplars) will be paid at the rate of M 25 per tree per year for 10 years or M206.72 per tree as a lump sum.

 

1.3.1        Fruit Trees 

 

Compensation for a fruit tree shall be paid at the rate of M70.00 per tree per year for 10 years of M578.82 per tree as a lump sum.

 

1.4              Dwellings

 

The loss of a house will be compensated with a new house or houses, with the same internal floor area provided at a site of the recipient’s choice.

 

Each new homestead will be provided with a VIP toilet, whether or not the old homestead had a toilet.

 

Each new homestead plot will be fenced with stock-proof fencing.

 

Each new homestead will be provided with heating/cooking facility.

 

The amount of the replacement housing fund, or housing credit, which LHDA shall make available for rebuilding the homestead of each family shall be quivalent to the cost of the full replacement value of the structures.

 

 

 

 

 

1.5              Kraals and Outbuildings

 

The cost of a contractor-built kraal is estimated at M30 per metre of wall.  The owner will have the option to rebuild the kraal or he/she can keep their livestock elesewhere.

 

Outbuildings, such as stock sheds, will be compensated at a rate of M200 per square metre.

 

1.6       Graves

           

Graves affected by the construction activities of the LHWP shall be compensated by LHDA.  The cost of relocating graves with attendant rituals will be met by LHDA.  The present cost per household is M3000.00.

 

2.                  COMMUNAL RESOURCES

 

Communities in the designated and host villages will be eligible for compensation for their loss of communal resources.

 

The lump sum amount will be made available to the receiving communities provided that they can only access this money when incurring expenditure on development activities.

 

2.1              Grazing

 

Compensation for one hectare of grazing land will be paid at an annual rate of M560 or in the case of a lump sum at a rate of M11,564.73.

 

2.2              Wild vegetables

 

Compensation for wild vegetables will be paid annually at a rate of M200 per affected household or in the case of lump sum at a rate of M4130.26.

 

2.3       Brushwood fuel

 

Compensation for brushwood fuel will be paid annually at a rate of M250 per affected household or in the case of a lump sum at a rate of M5162.82.

 

2.4       Medicinal Plants

 

Compensation for medicinal plants will be paid annually, at a rate of M100.00 per affected household in the case of a lump sum at a rate of M2065.13.

 

2.5       Useful grasses

 

Compensation for useful grasses will be paid annually at a rate of M110.00 per affected household or in the case of a lump sum at a rate of M2271.64.

 

3.                  DISTURBANCE ALLOWANCE

 

To meet the costs of settling in an amount will be paid to each household relocating or resettling.

 

This sum will be disbursed over three years, with the first instalment being paid when the household moves into its new homestead.  The disbursement schedule will be as follows:

 

                                                Relocated                   Resettled

 

            Year 1                          M3000                         M6000

            Year 2                          M2000                         M4000

            Year 3                          M1000                         M2000

 

4.                  MINIMUM THRESHOLD

 

A top up payment to the minimum threshold of M3, 960 per annum will be paid to Vulnerable Households for a maximum period of 10 years. The annual amount payable to the resettled households will be the difference between M3960 and the household's annual income.

 

The criteria include special cases where households are not resettled but lose all their arable land and their access to natural resources.

 

LHDA will pay special attention to these households for a period of 10 years, and assist them with training and income restoration opportunities.

 

5.                  INSTITUTIONAL COMPENSATION

 

Institutional buildings shall be valued at the cost of their replacement at their present site.  This value shall be paid as a lump sum to the owners of such buildings, If they so opt.  Schools could be constructed under the building options offered in the Compensation Policy.

 

6.                  SPECIAL CONDITIONS FOR PHASE IA OF LHWP

 

These conditions apply to households compensated before 1st April 1998.

 

Uniform rates apply for 1A, 1 B in so far as arable land and rangeland since development programmes are being implemented. In 1A the rest of the communal resources are therefore already being compensated for through these programmes.

 

The minimum threshold allowance has also been included in 1A to apply to a total of 71 households who have been involuntarily relocated.  For other properties such as houses, kraals, toilets, stable, fences and other structures, no rates are reflected for 1A, because they have already been compensated.