Who pays the piper after PPP land requisitions?

With in-depth advancement of public private partnership (PPP) projects, a number of new problems have emerged. Several disputes over PPP projects that the authors have recently handled all get involved in the following question: who must pay the social security fees to peasants for land requisitions? According to the Land Administration Law and relevant laws and regulations, the state, as the subject of a land requisition, must be responsible for the land requisition, land compensation, and resettlement. Local governments above the county level must be responsible for the implementation of land requisitions and compensation issues.

Notice of the General Office of the State Council on Forwarding the Guiding Opinions of Ministry of Labour and Social Security on the Employment Training and Social Security Work for the Land-Requisitioned Peasants (Notice No. 29) requires, “Local governments at all levels should strengthen occupational training and social security work, and take effective measures to implement occupational training and grant social security funds.” The Circular of the State Council on Intensifying the Land Control (Notice No. 31) also demands that local governments conscientiously carry out the provisions of Notice No. 29.

The Notice on Earnestly Implementing Social Security Work for Land-Requisitioned Peasants clearly stipulates, “Leaders of local governments at all levels shall take full responsibilities for the social security work of the peasants whose land has been requisitioned.” The notice issued by the Ministry of Land and Resources on Further Improving the Administration Work of Land Requisition (Notice No. 96) also emphasizes, “Municipal governments and county governments are the main authority for the organization and implementation of land requisitions, and shall take full responsibilities for incorporating the land-requisitioned peasants into the social security system.” There are similar requirements in other relevant regulations of the State Council, Ministry of Land and Resources, and Ministry of Finance.

Wang Jihong is a partner and Yu Li is an associate with Zhong Lun Law Firm