Household and community compensation

On November 6th 2017, the Mozambican Government declared a moratorium for the full extent of the LNG Park’s land title (known in Mozambique as DUAT) that established a cut-off date for eligibility for compensation and resettlement.

The projects’ resettlement plans include a compensation entitlement framework. To fully replace the cost of lost assets, compensation is provided either in cash, in kind, or a combination of both. This includes:

  • In-kind replacement of residential housing in the new resettlement village, Quitunda Village
  • Provision by the Palma District Government to replace agricultural land (up to 1.5 hectares subject to availability) with security of tenure for each displaced household actively engaged in agriculture
  • Cash and in-kind compensation for the loss of land improvements, trees and crops, as well as the reduction or loss of access to fisheries’ resources
  • The creation and implement of livelihood restoration programs to address loss of agricultural land and fisheries, and to promote diversified livelihoods including project-related employment
  • Transport and cultural heritage transfer assistance for the relocation of household members, their belongings, and livestock to the new village
  • Household food packages for the first three months of living in new homes and a welcome box containing basic household items
  • The establishment of the Afungi Community Development Fund for resettlement affected communities in recognition of the loss and/or reduced access to communal natural resources due to the projects’ land use


Household compensation agreements

Combining information from the compensation entitlement framework with the results of census and asset surveys, a household compensation agreement was developed for each affected household. The compensation agreements clearly describe the assets affected, the cash or in-kind compensation to be provided, and the other forms of entitled assistance to be provided.

Partnering with a local non-government organization (NGO), legal assistance was provided to households signing compensation and resettlement agreements. The NGO assistance included raising awareness of rights and obligations under the resettlement process, as well as witnessing the signing of household agreements.

Additionally, TEPMA1 has facilitated a financial management training program that specifically prepares households to better manage the compensation provided.


Local NGO partner helps provide legal assistance for households signing compensation and resettlement agreements.