Ministry: legal interests of the owners have to be protected when the land is expropriated for public needs


2020 09 04

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The Ministry of Transport and Communications has prepared and submitted to the Government for consideration the package of 9 draft laws, the purpose of which is to ensure protection of the legal interests of persons, when the State is implementing projects of special national significance, and to create legal preconditions for effective and rational fulfilment of these projects.


“When we are implementing such projects of special national significance as Rail Baltica or Via Baltica, we often encounter the necessity to expropriate some land or other property for public needs. Having assessed our experience in implementation of such projects and arising practical problems, we attempt to protect legal interests of the owners lawfully and to ensure more effective fulfilment process of the projects”, – says Minister of Transport and Communications, Mr. Jaroslav Narkevič.


According to the Minister, one of the main goals of the suggested amendments of the laws is to make sure that the factual compensations received by the persons for lost property would not be reduced by tax liabilities. It is suggested to determine that no income tax, value-added tax or profit tax would be imposed on the payment for the land or another property expropriated for public needs, when the State is implementing its projects of special national significance.


Besides, it is suggested to reimburse the losses to the land’s owner caused by restricted liability to use the small land lot left after the expropriation for the former purpose. According to our experience in projects’ implementation, it is relevant in case of premises, when the owner cannot build a residential house because of the established protection zone.


The amendments of the laws suggested by the Ministry of Transport and Communications would also make the process of fulfilment of the projects of special national significance more effective and would enable to perform certain procedures simultaneously, when possible. Thus, such arrangement of the land’s expropriation for public needs, processes of designing, engineering investigation, geological and geotechnical surveys of the land’s depth and other surveys would allow saving approx. 1,5-2 years and implementing the projects faster.


The purpose of law amendments is also to improve person information process by providing the use of electronic communication means. It is especially relevant in case of various procedures carried out during this pandemic period, when the protection measures because of COVID-19 are compulsory. Besides, it is attempted to solve other practical problems of smaller scope, on which quality and terms of the projects’ implementation depend.