The replacement cost of urban land is calculated as the market value of land of equivalent area and use, with similar or improved infrastructure and services preferably located in the vicinity of the affected land, plus transaction costs such as registration and transfer taxes.
ReferencesInternational Finance Corporation. 2006. "Glossary of Terms." *[IFC Policy & Performance Standards and Guidance Notes](http://www.ifc.org/wps/wcm/connect/9a9464804885598c8364d36a6515bb18/Glossary%2Bof%2BTerms.pdf?MOD=AJPERES&attachment=true&id=1322803900995)*. Washington D.C.: International Finance Corporation.
[*Last Accessed* 1 November 2013]