Experts Exchange Insights on Land and Asset Valuation in Involuntary Resettlement at MCDF Workshop

Experts from International Financial Institutions (IFIs), the International Valuation Standards Council (IVSC), and developing countries exchanged insights on land and asset valuation processes in infrastructure project-induced involuntary resettlement during a three-part virtual workshop hosted by the Multilateral Cooperation Center for Development Finance (MCDF) and partners.

Co-organized with the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and New Development Bank (NDB), the workshop provided a platform for experts to discuss valuation concepts, approaches to stakeholder engagement, and good implementation practices in land and asset valuation, taking into account emerging social safeguard issues.

During Part 1, on 26 August, participants examined compensation and replacement costs, replacement cost challenges, project cycle valuation, and keys to supervising valuation processes. A Nepal energy transmission project case study looked at transition costs, taxes, and restoration costs and demonstrated the importance of aligning local regulations with international standards, minimizing environmental impacts, and robust stakeholder engagement to achieve successful project outcomes.

In Part 2, on 2 September, participants discussed the valuation of affected assets and international standards. They explored the fundamentals of asset valuation, with focus on valuation objects and their influencing factors. They also addressed the roles of professional appraisers and market, cost, and income-oriented valuation approaches, highlighting their applicability according to specific market conditions and asset characteristics. Speakers provided an overview of international valuation standards, introduced IVSC’s role in developing globally consistent standards, and discussed the structure of general to asset-specific standards. They emphasized how legal compliance, professional judgement, and reporting enhances valuation transparency and reliability.

Part 3, on 9 September, described ways to navigate valuation challenges in practice. A panel of IVSC valuators addressed technical questions on land valuation. A question and answer session with environmental and social staff from ADB, AIIB, and NDB explored possible responses to policy and eligibility issues, domestic regulatory frameworks versus IFI requirements on land acquisition, and grievance redress in the involuntary resettlement process.

“Land valuation, compensation delivery, and how valuators work with International Financial Institutions’ environment and social specialists are complex aspects of involuntary resettlement management,” said Ines Fejzic, Senior Environment and Social Development Specialist at MCDF and a workshop moderator.

“Knowledge and experience sharing is crucial to ensuring that land and asset valuation is executed in a way that helps to assuage the concerns of affected people, allows infrastructure projects to move forward, and ultimately provides targeted benefits to local communities,” Fejzic concluded.