Provincial Renewable Energy Project

Current local clan structures and national land acquisition processes encourage maneuvering by clan leaders to maximize compensation payments, which can delay or block project implementation. Models are currently being tested where compensation is paid directly to individual clan members, which may partially remove the disincentives for clan leaders to delay or block project progress. This also partially avoids formal recognition of clan leadership structures, which is traditionally fluid. These models were assessed during project preparation but considered to have excessive transaction costs for small projects such as the Fiu River Hydropower. This may be considered for future projects.