29/11/2025
An Imperative for Equity: Compensating Vanuatu's Land and Property Owners
To: The Management of Union Électrique du Vanuatu (UNELCO), Engie, and the Utilities Regulatory Authority (URA)
The provision of reliable electricity is a cornerstone of Vanuatu’s national development, essential for economic growth, health, and education across our archipelago. UNELCO Engie plays a critical, recognised role in delivering this vital service. However, the pursuit of infrastructure expansion—be it the installation of new power poles, the stringing of transmission lines, or the clearing of necessary easements—must never come at the expense of fundamental ni-Vanuatu land rights.
This opinion asserts that UNELCO has a moral, ethical, and legal obligation to ensure timely, fair, and transparent compensation for every customary owner and leaseholder whose land or property is permanently impacted by utility infrastructure.
The Right to Compensation is Fundamental
The establishment of power infrastructure, while serving the greater public good, inherently imposes a burden on the private individual. An electricity easement is not merely a temporary inconvenience; it is a long-term encumbrance on a property. This right-of-way fundamentally restricts a landowner's ability to develop, plant, or fully utilise their own land.
In Vanuatu, where land is central to identity, livelihood, and wealth, any action that diminishes its utility or value must be appropriately compensated. This is not a request for charity; it is a demand for equitable treatment based on established legal principles.
Mandate of the Law: The Electricity Supply Act [CAP. 65]
The obligation for compensation is not merely a matter of spirit or moral imperative; it is directly mandated by Vanuatu statute, specifically the Electricity Supply Act [CAP. 65].
Crucially, Section 6 (Applications for compensation) of the Act establishes the definitive mechanism and right for property owners:
Section 6(1) explicitly grants the right: "Every person who sustains any damage or loss of a certain and material nature by reason of the exercise of any of the powers conferred by section 5 upon the concessionaire may make application for compensation..."
The Act further mandates a Compensation Commission to determine the amount in the absence of an agreement (Section 6(2)).
Furthermore, the Electricity Supply (Amendment) Act No. 37 of 2019 reinforced this duty, requiring the Utilities Regulatory Authority (URA) to ensure timely payment. Section 6(7) imposes a substantial daily fine on the concessionaire for failure to pay compensation determined by the Commission, confirming the legal seriousness of this obligation.
Compensation must cover, at a minimum, the following categories of loss, which represent the full impact of the infrastructure:
Diminution in Land Value (Easement): Compensation must reflect the loss of market value for the portion of the land permanently restricted by the easement or the footprint of a pole base.
Damage to Crops and Trees: Any necessary clearing of standing crops, fruit trees, or timber to maintain safety clearances must be assessed at replacement cost or current market value. This is critical for ni-Vanuatu communities reliant on subsistence agriculture and resource harvesting.
Disturbance and Construction Damage: Payments must cover temporary damage caused during the construction phase, including soil compaction, access tracks, or the disruption of water sources.
A Call for Transparency and Good Faith
For too long, negotiations for easements and compensation for damage have been characterised by opacity and delays, leading to frustration and distrust among landowners. To remedy this, UNELCO must commit to:
Proactive Engagement: Landowners must be fully informed and consulted before any final planning begins, not merely notified after the decision has been made.
Independent Valuation: Compensation amounts must be based on current market rates, assessed by independent valuers to ensure objectivity and fairness, reflecting the real loss to the owner.
Timely Payments: Delays in compensation create hardship and erode trust. Payments must be processed and delivered promptly following the ex*****on of the necessary agreements.
UNELCO is a partner in Vanuatu’s future. True partnership requires respect for property rights and strict adherence to the principles of equity. By adopting a proactive, transparent, and legally compliant compensation policy, UNELCO can strengthen its relationship with the communities it serves, expedite crucial infrastructure projects, and uphold the values of fairness and justice that define the Republic of Vanuatu.
