Eligibility for Compensation in Road Construction Projects

There have been a lot of road development projects recently all around Cambodia. Other structures were required to be removed, and some landowners were told to evacuate their land for the road extension project.

Some of them are compensated, while others are not. Let's look into how this is, as well as the specifics of compensation eligibility.

You may or may not be entitled to compensation, depending on a variety of variables, including the Land Law (2001), Sub-Decree No. 197 (2009), which governs public road and railway administration, and Sub-Decree No. 86 (1997), which governs construction permits.

Simply put, if you fulfill all three of the above laws when it comes to land and property ownership, you will get compensated for both the land and the property constructed on it. In the case of the contrary, though, you will receive nothing.

However, if our ownership is legal under one regulation but prohibited under another, the compensation eligibility gets more problematic. On a case-by-case basis, they will be compensated as follows:

Case 1: Although three laws make ownership illegal, the residents owned the land and property prior to 1997, when the three laws were adopted. Because these three laws will not be applied retroactively, you will be compensated in full for both the land and the property constructed on it.

Case 2: Ownership is allowed under Land Law (2001) and Sub-Decree No. 197 (2009), however if the structure/property built on the land violates Sub-Decree No. 86 (1997), you will only be compensated for the land, not the structure.

Case 3: According to Land Law (2001), the ownership is legal, however it contradicts Sub-Decree No. 197. (2009). The owner must verify if the land was acquired before or after 2009. Due to the fact that this sub-decree does not apply retroactively, you will be compensated if you transferred ownership before 2009. In the case of the contrary, though, you will receive nothing.

As a result, property owners, particularly those who buy from others, must carefully consider whether the land or construction encroaches on public infrastructure and seek clarification from the cadastral office.