This year, the Land Acquisition Team developed two new livelihood improvement mechanisms for those who sold or were planning to sell their land:
- Financial management training; and,
- Agricultural land leases
Financial management training is an important part of mitigating the risk of vulnerability emerging during the land acquisition process as a result of cash compensation. Many land owners have been on low or fixed incomes prior to the Project’s arrival and will be receiving relatively large amounts of money from the land sales.
To mitigate the risk that some people may misspend the compensation money, and maximize the benefits that compensation could represent, the Project has contracted an independent third party to provide financial training. The training is not prescriptive and does not suggest one type of investment over another. Rather, it covers the basics of investing and an overview of different opportunities and risks. Courses are completely voluntary, and open to all adult members from households that have sold or have been made offers to sell their land to Rakita.
These programs are aimed at the further deve-lopment of the local community, that is, improving the conditions of life and work of the community in which Rakita operates.
Agricultural land leases, are being offered to people who sold their land to Rakita. The lease agreements are free of charge and allow users to engage in agricultural activities only. They do not allow the construction of structures, water infrastructure or other infrastructure.
The leases can be terminated with one month’s notice by either party in writing. If crops have been planted on the leased property and cannot be collected within the one-month notice period, Rakita will compensate the lessee for the evaluated value of the crop. The leases will allow any land owner who wishes to take up or continue previous agricultural activity to do so.
With this mechanism, Rakita gives its best effort to achieve a positive and sustainable impact on the communities in which it operates.