A Model for determination of compensation for compulsorily acquired land in Ghana

Abstract

Compensation is at the heart of compulsory acquisition of land for development projects all over the world. Research shows that in developing countries, such as Ghana where most lands are customarily and privately owned, citizens abhor compulsory acquisition because compensation is seen not to be fair, adequate, and transparent and it is unnecessarily delayed. It deprives vulnerable groups of their livelihoods. This results in tension, tenure insecurity, litigation, destruction of property, loss of lives, poverty and delays in project implementation. This research set out to develop a compensation model that addresses the challenges in compensation in Ghana. The study employed remote sensing techniques such as satellite imagery and drone technology, Global Position System (GPS), Geographic Information System (GIS) and Open Data Kit (ODK) to map out and create a geo-database of major resources that need to be compensated when lands are compulsorily acquired. Focusing on a typical case study, focus group discussions with major stakeholders, interviews and extensive literature review across the globe revealed protocols and agreements were not in conformity with best practices. A cost centre template for compensation was designed, from which a mathematical equation was derived for compensation for agricultural products, improved market value model for land and buildings, and expected future returns on crops based on their economic life yields. A software was developed for efficient running of the model. The research identified 14 major crop resources, built-up and non-built-up areas across Ghana. Eight (8) protocols and agreements were developed. A multiple linear regression model was thus developed to address the challenges within the current compensation regime in Ghana. The results of the research formed a compensation package for compulsorily acquired land in Ghana (COMPACAL-G). The research is also useful for preliminary assessment of compensation at project conception stage for capital budgeting.