ABSTRACT
This chapter outlines the compensation process and provides guidance on how to manage the risks around cash payments on projects. The determination of compensation is a critical step on land access and resettlement projects, and although experience has shown that in-kind replacement of assets such as land is preferable, cash is often the predominant or a significant form of compensation on most projects. The impacted communities are always focused on maxim-ising the immediate cash compensation offered and it is tempting for the project to pay cash for land and houses in order to access the land quickly. The project and community independent valuers then worked together and presented a range of compensation values for all assets which were discussed in the consultations committee. The International Finance Corporation recommends projects to prepare an entitlement matrix to identify affected people, all types of loss and the types of compensation and assistance provided.
