Zitto calls for 'land for equity' payout model in LNG project

Dar es Salaam. ACT Wazalendo has requested the government to reconsider its financial compensation policy when carrying out large-scale projects and incorporate land for “equity” initiatives, a move which will empower the local population.

This is according to ACT Wazalendo party leader, Mr Zitto Kabwe when referring to the country’s Liquefied Natural Gas (LNG) project worth $30 billion, saying the government ought to consider a new model when it comes to land compensation.

“If projects are to be carried out, utilising the land that belongs to the people instead of only relocating them, the government should think of an additional compensation dubbed ‘Land for Equity,” he observed.

According to him, since land access is central to natural resource development projects, therefore, land for equity compensation would provide the people with stakes (ownership) in the respective projects thus empower them economically.

He added: “This would add more to having been provided with decent dwelling coupled with all the necessary amenities as well as having alternative economic generation activities such as engaging in aquaculture, poultry, and horticulture.

“During my Lindi tour, the majority of people complained about the delay in receiving their rightful compensation. According to them, TPDC [Tanzania Petroleum Development Corporation] has already disbursed required funds to the municipality, yet nothing was extended to them,” he explained.

Adding: “It is sad, eight years down the line, Lindi municipal council hasn’t remunerated the rightful individuals who were compelled to leave their land for the implementation of the project.”

Therefore, the party leader was of the view that Lindi municipality should find partnership with the project, which in turn will generate funds enough for the said compensation, though if land for equity model was in place, then no one would be complaining.

According to ACT Wazalendo, it is past due for people to participate in and profit from the realisation of such massive projects by taking ownership of them.

In that regard,  Mr Zitto said: “We propose that in the ongoing discussion which involves the government, TPDC and investors on the LNG project in Lindi, they should consider providing at least 2.5 percent stake to the respective municipality through the land.”

He said  the land would serve as investment capital for Lindi municipality, thus acquiring rightful ownership of the project.

This comes within months after the government on one side and Shell and Equinor companies (which are the main partners in the implementation of the project) on the side, signed the Preliminary Host Government Agreement (HGA) of the LNG project.

A comprehensive HGA is expected next month following President Samia Suluhu Hassan’s directives.