Absentee Landlords Hurdle in Uganda’s EACOP Pipeline Project

Kakumiro District | THE BLACK EXAMINER | The design of replacement houses for those displaced by EACOP creates a unique landscape along most of its 296km route in Uganda, with Kakumiro District standing out due to the extensive land ownership by absentee landlords. As the project enters a crucial construction phase, facing the demand for a 100% right of way from the contractor, it grapples with the challenge of locating and compensating absentee landlords. This scenario, involving suspended payments via an escrow account, poses ongoing issues, according to property experts.

At present, 113 untraceable landowners in Uganda contribute to the complexity of the situation. EACOP is also yet to resolve all land valuation disputes, a potential hindrance to the project’s construction. Official records indicate that 98% of project-affected persons (PAPs) have signed compensation agreements, leaving 2% consisting of absentee PAPs and those requiring supplementary valuation.

Land valuation disputes are particularly pronounced in Kikuube and Kyotera districts, with Kikuube facing challenges due to the presence of two pipelines—Kingfisher and EACOP—resulting in increased land value demands by owners. Kyotera experienced compensation rate errors, leading to rejections by PAPs.

While EACOP has paid 90% of PAPs in Uganda, the critical 10% includes mostly absentee landlords and displaced persons awaiting agreement on land values. In contrast, Tanzania has compensated nearly 99.8% of its PAPs and landowners, demonstrating a more advanced stage in the compensation process.

EACOP has faced criticism regarding its resettlement action plan, with reports suggesting that many affected persons in Uganda received inadequate compensation. A report by the African Institute for Energy Governance (Afiego) claims that 96.6% of PAPs who received replacement land failed to replace all lost land. Additionally, 78.1% of those affected considered the compensation delayed, inadequate, and unfair.

Such concerns could breach the International Finance Corporation (IFC) performance standards on land acquisition, which measure how companies operating in developing countries manage environmental and social risks. Reports highlight disruptions, delays, and negative impacts on businesses and communities along the pipeline’s route, reflecting the challenges faced by EACOP in its ambitious construction project.