How long does compensation take to be paid?
Months where the file is clean, years where it is not. What sits between a valuation and money arriving, and which delays are avoidable.
Where the file is clean, three to nine months from valuation to payment. Where it is not, two years or more. The difference is rarely about the project's willingness to pay — it is the approval chain, the funding cycle, and whether your particular record has a documentation problem attached to it.
What sits between the valuation and the money
- Internal review of the assessment.
- Approval by a statutory or government valuer, where national practice requires it — this queue is often the longest single step.[4]
- Authorisation of the award, sometimes by a committee that meets monthly.
- Release of funds, which on public projects follows a budget cycle.
- The payment itself, and confirmation that it reached you.
Each step is reasonable alone. Together they are why a plan showing "valuation" as a single bar is misleading about the timetable.[2]
The records that take longest
A small number of cases dominate the long tail, and they are identifiable from the day of enumeration:
- The registered owner has died and succession is not settled.
- A boundary is disputed with a neighbour.
- The claimant has no identification.
- Two people claim the same parcel.
- The parcel is already in litigation.
If yours is one of these, the resolution work is the thing that determines your date — and it can usually be started immediately rather than when payment is attempted. Ask the project to begin it now, and ask who is responsible for it.[3]
What you are entitled to in the meantime
- Not to be displaced before payment. This is the firmest rule in the standards — compensation comes before possession.[1]
- To be told where your file stands, and by whom.
- Payment of the undisputed portion where part of your claim is contested.
- Interest on late payment, where the applicable law provides for it. It usually does, and it is rarely paid unless asked for.
The problem with a long wait
A sum assessed two years ago does not buy what it would have bought then, particularly for building materials in a district where a large project is under construction. Ask whether the project has provided for indexation or revaluation where payment slips beyond a defined period. Well-run programmes do; it is a reasonable thing to raise as a grievance where they have not.
Sources
- [1]Performance Standard 5: Land Acquisition and Involuntary Resettlement — International Finance Corporation, 2012.
- [2]Guidance Note 5: Land Acquisition and Involuntary Resettlement — International Finance Corporation, 2012.
- [3]Good Practice Handbook: Land Acquisition and Involuntary Resettlement — International Finance Corporation, 2023.
- [4]Compulsory Land Acquisition in Uganda (Policy Briefing Paper 47) — Advocates Coalition for Development and Environment (ACODE), 2020.
Olule Solomon
Lead Consultant, ValueSpace
Olule Solomon is Lead Consultant at ValueSpace, where he works on land acquisition and resettlement systems for donor-financed infrastructure in East Africa. He writes about the practical gap between what the safeguard standards require and what a project can actually evidence at completion audit.
Related reading
- The valuation report: approval, statutory process and the delay it createsBetween an assessed value and an authorised payment sits a statutory approval chain. Where it stalls and what shortens it.
- Interest on delayed compensation: the entitlement nobody claimsMost acquisition statutes provide for interest on late payment. Almost no displaced household knows it, and few projects volunteer it.
- When the registered owner has died: succession in a compensation programmeDeceased claimants are a large share of every long payment tail. Starting the succession work at census is the only thing that shortens it.
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