Awarding both individual and collective damages, the court also found that Katanga was liable for one million dollars of the total damages estimated at USD 3.7 million.
Katanga was sentenced by the ICC to 12 years in jail in 2014, after being convicted on five charges of war crimes and crimes against humanity for the February 2003 ethnic attack on Bogoro village in Ituri province of the Democratic Republic of Congo.
"The chamber has assessed the scope of the prejudice to 297 victims as USD 3,752,620. The chamber sets the amount to be contributed by Mr Katanga towards the reparations as one million dollars," said presiding judge Marc Perrin de Brichambaut.
He recognised however that Katanga, currently imprisoned in Kinshasa where he is on trial on other charges arising out of the unrest in the Ituri region, was penniless or "indigent" and had no home or possessions.
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However it "can grant some measure of autonomy to the victims by making it possible for them to engage in some kind of activity... And make relevant decisions pertaining to their current needs."
Today's order for reparations is a landmark step for the tribunal, set up in 2002 to prosecute the world's worst crimes, and marks the first time that monetary values have been placed on the harm caused by such crimes.
Legal representatives for the victims had assessed the damage caused by the attack at USD 16.4 million in a filing to the court last year.
Katanga was watching today's order from his prison in Kinshasa, while five victims representing the group followed in the village of Bunia with their lawyers.