Skip to main content

Compensation principles for land users and owners

TAP is committed to ensuring that land owners and users living along the pipeline corridor who are affected by the project are treated with respect and compensated fairly.

In line with this approach, a robust and transparent methodology has been developed to calculate compensation, based on fair market value and associated costs. TAP has also involved local real estate agencies and agronomists to validate the land and crop replacement values.

TAP made the established compensation rates public. The main process and principles that are applied when calculating compensation are outlined below. Please note that the principles indicated do not yet apply to Italy.

Process

During the Census and Asset Inventory (CAI) field survey, our contractors visited all affected land owners and users in person to establish a written record of all assets. On completion, compensation was calculated and presented to the relevant parties.

TAP paid compensation before start of construction works. 

Calculation of land easement compensation: main principles

In the following section, we describe in more detail the different types of land for which compensation is made and the basic principles of compensation.

If your question is not answered here and you would like some specific details explained, please contact TAP directly using the contact details on this web site.

Permanent land access

Cases when TAP will buy your land.

How compensation is calculated

TAP will only buy your land if your plot of land is located on territory where we plan to build compressor stations, block valve stations or other installations above the ground. The rest of the land required by TAP will either be leased or eased.

Compensation is calculated as follows:

  • Compensation for land at the replacement value.
  • Compensation for any structures or developments on land you own at the replacement value.
  • Compensation for any standing annual or perennial crops at the replacement value.

Temporary land access, full reinstatement, no restrictions

Cases when TAP will rent your land for the duration of construction. It will be returned to you in its original condition.

How compensation is calculated

This type of land access is needed for some temporary facilities, such as pipe storage yards and construction camps. The land will be leased by TAP for approximately two years and will be returned to the owners in fully reinstated condition. You will be able to cultivate it further without restrictions.

This type of compensation is calculated as follows:

  • A rental fee to compensate for the loss of agricultural production during construction. It is calculated based on the yearly agricultural income expected in your geographical area for the typical crop rotation, multiplied by 2 years.
  • Compensation for any standing annual or perennial crops at the replacement value.

Temporary land access with consequent land easement and restrictions

Cases when TAP leases your land for the duration of construction. You will have restrictions on land use after the construction is complete.

How compensation is calculated

If your land is located within the pipeline construction corridor, TAP will need to lease it for the duration of construction. After this, a long-term land easement agreement will be concluded with some restrictions on future land use.

During construction, the land is occupied for approximately three years or less. After construction, TAP will return the land to you so that agricultural productivity can be restored to its original state. This will happen within three years following construction.

There will be some land use restrictions for this type of land in Greece and Albania. Within an eight-metre wide corridor, for safety reasons, no buildings, deep ploughing or planting of trees with deep roots will be allowed. Within a 40-metre wide corridor, in Greece and Albania, no new construction can take place.

In Italy, the safety distance from the pipeline to buildings will be kept at 20 metres for single buildings and 100 metres for clusters of buildings.

Agricultural activities can be continued within the 40-metre corridor, provided they do not interfere with the integrity of the pipeline.

Key compensation principles for land with these restrictions:

  • A rental fee calculated to compensate for the loss of agricultural production during construction. It is calculated based on the yearly agricultural income expected in your geographic area for the typical crop rotation, multiplied by 2 years.
  • Compensation for any standing annual or perennial crops at the replacement value.
  • Compensation for restrictions.

Once the pipeline is built, safety restriction zones of approximately 20 metres on either side will be established along its entire route.

Special cases

‘Orphan land’ – what if TAP needs only a part of your land parcel? Will you be compensated for the whole or only part of it?

During construction, TAP may need to cross a parcel of land in such a way that some sections of land are left on each side that are not required for construction and for which compensation would not normally be made.

This is termed ‘orphan land’. Agricultural activities on these sections of land, either side of the construction corridor, could normally be continued. However, we realise that there will be cases where the separated sections may be too small to make cultivation economically worthwhile.

Such cases are reviewed by TAP separately on request by the land owner and/or land user. The following criteria are considered in this review:

  • Size, dimensions and shape of the orphaned part of the parcel.
  • Possible access restrictions.
  • Size and nature of mechanical equipment used for cultivation on this parcel and limitations to the use of such equipment.
  • Potential restrictions to irrigation or drainage during the construction period.

The same compensation principles apply to the ‘orphan’ land as to the main affected piece of land, i.e.:

  • Same as permanently acquired land if the piece of land is ‘orphaned’ permanently.
  • Same as temporarily occupied land if the piece of land is ‘orphaned’ temporarily.

Landowners and land users

What if I don’t own the land which I cultivate? Will I still be compensated?

Where the owner and the actual user of the affected land parcel is the same individual, that person will receive full compensation according to the compensation principles.

Where land is cultivated by a land user who is not the landowner, the compensation will be shared between the landowner and the land user as follows:

Permanent land access by TAP:

  • Compensation for land to landowner.
  • Compensation for crops to land user.

Temporary land access by TAP:

  • Land rental fee to landowner.
  • Compensation for crops to land user.
  • Compensation for restrictions to land owner.

Compensation for any structures and developments on land, such as irrigation or drainage, is paid to the owner of such structures and developments.

Where municipal or other publicly owned land is used by a private farmer, this land user receives the compensation as follows:

Permanent land access by TAP:

  • Compensation for crops.
  • Compensation for any structures or developments on land that the land user can demonstrate ownership of.

Temporary land access by TAP:

  • Compensation for crops.

Grievance Mechanism

In case of any disagreements, TAP has established an impartial grievance mechanism. This is a quick and efficient process to collect and process complaints or expressions of concern from people living near the proposed pipeline. TAP is committed to responding to all of these in a timely manner and to providing relevant solutions.