OPERATIONAL POLICY 0P 4.

12
INVOLUNTARY
RESETTLEMENT
Radhika Srinivasan, ECSSD
 Outline of the Presentation
 Triggers of the Policy
 Objectives
 Scope and Coverage
 Required Resettlement Measures
 Eligibility Criteria
 Resettlement Planning Instruments
 Bank and Borrower Roles
 IMPACTS THAT TRIGGER OP 4.12
OP/BP 4.12 is triggered when a Bank investment
causes

 Involuntary taking of land that results in direct social

and economic impacts such as:
 Loss of shelter leading to relocation
 Loss of assets or access to assets
 Loss of income sources or means of livelihood (whether or not the
affected persons must move to another location)

• Involuntary restriction of access to legally designated

parks and protected areas that result in adverse impacts
on the livelihoods of affected persons
 POLICY OBJECTIVES
 Avoid involuntary resettlement where
feasible, or minimize it, exploring all
viable alternative project designs

 Consult affected persons

meaningfully and provide
opportunities to participate in
planning and implementing
resettlement programs

 Assist affected persons in their efforts

to improve their livelihoods and
standards of living or at least to
restore them, in real terms, to pre-
displacement levels
 SCOPE AND COVERAGE OF OP.412
OP 4.12 applies to
 all components of the project that require land
take, regardless of the source of financing
 other activities requiring land take that are

 directly and significantly related to the Bank-

assisted project
 necessary to achieve its objectives as set forth in the
project documents
 carried out, or planned to be carried out,
contemporaneously with the project
 IMPACTS COVERED BY OP4.12
yes or no?
 Business losses caused by rerouting of road
away from existing village
 Loss of farmland inundated by a reservoir
 Loss of jobs due to Bank-financed
privatization project
 Loss of dwelling due to construction of a
drainage canal
 Devaluation of property due to Bank-
financed solid waste dump nearby
 MITIGATION MEASURES
 Inform affected persons about
their rights/ options
pertaining to land
acquisition/ resettlement
 Provide prompt and effective
compensation at full
replacement cost for losses of
assets attributable directly to
the project
 Provide resettlement
assistance for vulnerable
affected people
 MITIGATION MEASURES
 Options can be “land for
land” if livelihoods land-
based; Cash possible if land
taken is a small fraction of
the affected asset and
residual is viable
 Link Compensation/
Resettlement
implementation to project
timetable
 WHO IS ELIGIBLE?
The borrower carries out a census to identify those affected
and eligible for assistance:

1. Those who have formal legal rights to land

[compensation]
2. Those who do not have formal legal rights to
land at the time the census begins but have a claim
to such land or assets [compensation]
3. Those who have no recognizable legal right or
claim to the land that they are occupying [resettlement
assistance]
 RESETTLEMENT INSTRUMENTS
 Resettlement (Action) Plan*

 When it is possible to determine scale of adverse

impacts and affected population during project
preparation, prior to appraisal

 Abbreviated Resettlement (Action) Plan

 When impacts are minor or if fewer than 200 people are

displaced

* Or Land Acquisition (Action) Plan


 RESETTLEMENT INSTRUMENTS cont.
 Resettlement Policy Framework
 When not possible to identify precise siting alignments or specific
impacts/affected population during project preparation (financial
intermediary operations, and projects with multiple subprojects),

 A Resettlement Action Plan is prepared for each subproject that

may involve land acquisition, before the subproject is accepted for
Bank financing
 Process Framework
 For projects involving restriction of access to resources in legally
designated parks or protected areas
 No separate Resettlement Action Plan required
 LEGAL AGREEMENT

The resettlement instrument is

included in the Legal Agreement
between the Bank and the Borrower
 RESPONSIBILITIES
BORROWER: BANK:
 Prepare the Resettlement  Provide advice during the preparation
Instrument (Framework or Plan) of the instruments

 Consult project affected persons  Review and approve the Plan or

Framework before appraisal

 Disclose the draft instrument as  Disclose draft instrument at the

condition of project appraisal Infoshop

 Disclose the instrument again after  Disclose final instrument again at the
it is finalized Infoshop

 Supervise regularly the implementation

 Implement and monitor the of the Plan
Resettlement Plan
 Include Resettlement Results in the ICR
 Final evaluation of the Plan
RESETTLEMENT POLICY
FRAMEWORK
 What is a Land Acquisition/
Resettlement Policy Framework ?
Specific impacts relating to land take not known in
advance

Agreement between the Borrower and the WB:

involuntary land expropriation, will comply with national
laws relating to land expropriation and World Bank
Operational Policy (OP) 4.12 on Involuntary Resettlement.

Underlying principle: avoid/ minimize adverse impacts

 What is the purpose of the RPF?

 Clarifies land acquisition principles and

organizational arrangements

 Ensures that where land acquisition is

unavoidable, borrower will

 consult project affected persons

 compensate for lost assets at replacement costs

 provide assistance to improve/ restore

livelihoods and standards of living to pre-
displacement levels in the event of displacement
 What are the contents of a RPF?
 Description of project components which trigger
land acquisition
 Legal framework reviewing borrower laws and Bank
policy requirements on expropriation
 Methods of valuing assets
 Estimated land take/ population displacement
 Eligibility criteria and Entitlement Matrix
 Organizational arrangements for the delivery of
entitlements
 Description of consultation process, grievance
redress mechanisms, arrangements for funding,
timeline
 Monitoring arrangements by the PIU
 What does a review of the Legal
Framework entail?
 Borrower land acquisition laws and procedures
and fit with OP 4.12 principles
 Typical areas of differences
 Assessment of land acquisition impacts through a
census of those affected with socio-economic data
and an inventory of losses
 Compensation: Land-for-land or Cash?
 Scope for consultation?
 Methods for valuing assets?
 Approach to people without clear titles to land/
assets?
 Income restoration measures?
 Entitlement Matrix: An Example
Impacts
< 80% of agricultural land lost
> 80% of land holding lost
Loss of houses and other
structures (legal structures)
Trees and standing crops
Loss of structures for those
without title to land or permits
[Squatters]
Entitlements
Cash compensation equivalent to
market value
Cash compensation for the
entire landholding + Relocation
Assistance+ Income Support +
+Job Training
Undepreciated value of building
in cash+ Right to salvage
materials+ Moving Expenses
Cash compensation
No compensation for land.
Undepreciated value of building
in cash +Right to salvage
materials+ costs of shifting +
job placement, skills training
 What are Organizational
Arrangements?
Land Acquisition Activity
Assessment of Impacts &
Inventory of Losses, Census of
affected people
Valuation of Assets
Consultations
Drafting the PF
Compensation Payments
Expropriation of Land
Monitoring and Evaluation
Responsible Institution
MoPW/ PIU
MPW assigns to Licensed
Independent Valuation Experts
MoPW, PIU. Mayor of the LGU
MoPW/ PIU
MoF/ MoPW
Council of Ministers
MoPW/PIU
 What are the Grievance Redress
Mechanisms?
 Grievances related to impacts community
level, PIU, design consultants to find technical
solutions.
 Grievances related to compensation amounts,
delays in compensation payments PIU in
liaison with the Municipalities.
 The Expropriation Law provides for an appeals
process against the proposed award for
compensation.
 Arbitration by NGOs.
 Grievances through the court system.
Monitoring Arrangements (by the PIU)

Project Cycle Data for Monitoring

Sub- Project Application Land take for sub-projects; scale of
resettlement, if any.

Project Concept Development Technical Community consultations (date, # of

& Social Review participants, issues),

Abbreviated Resettlement Plan (ARP) Data from census with inventory of

assets lost by PAPs, entitlements, and
socio-economic data,
Dates of receipt, review, and approval
by PIU of ARP,
Dates of submission and approval by
Bank of ARP
Date of disclosure of ARP
Implementation Delivery of compensation
Data on grievance redress

Post-Implementation Evaluation including assessment of

economic rehabilitation/income
restoration.