Understanding Compensation Eligibility in Road Construction Projects

• 25 June 2021
• Local News
• 2244 Views

Recently, there has been plenty of road construction projects everywhere in Cambodia. During the process, some buildings were ordered demolished, while some landowners were told to leave their land for the road expansion project.

Among those, some get compensation while others do not. Let’s find out why and the details of compensation eligibility.

You may or may not receive compensation, it depends on many factors, based on three major regulations: Land Law (2001), Sub-Decree No. 197 (2009) related to the public road and railway management, and Sub-Decree No. 86 (1997) regarding the construction permit.

Simply, if your land and property ownership follow all the three aforementioned regulations, you will get compensation for both land and property built on that land. However, you will get nothing in the case of the opposite.

Nevertheless, the compensation eligibility becomes more complicated in case our ownership is legal according to one regulation and illegal according to another. Their compensation will be made on a case-by-case basis as follows:

Case 1: The ownership is illegal based on three regulations, but the occupants owned the land and property before 1997, prior to the three laws came into force. Given the fact that these three regulations are not retrogressively imposed, you will receive 100% compensation for both land and property built on the land.

Case 2: The ownership is legal according to Land Law (2001) and Sub-Decree No. 197 (2009), but if the structure/property built on land violates the Sub-Decree No. 86 (1997), you will only get the compensation on land, not the building structure.

Case 3: The ownership is legal according to Land Law (2001), but violates Sub-Decree No. 197 (2009). The owner must check if the ownership of land was made before or after 2009. Given the fact that this sub-decree is not retrogressively imposed, you will receive compensation in case the ownership transfer was done before 2009. However, you will get nothing in the case of the opposite.

Therefore, property owners, especially those who buy from others, must study carefully whether or not the land or construction encroaches on public infrastructure by clarifying it with the cadastral office.

• Laws and Regulation