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 predisplacement 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 Bankassisted 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 Bankfinanced 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 landbased; 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 For projects involving restriction of access to resources in legally designated parks or protected areas No separate Resettlement Action Plan required

Process Framework

LEGAL AGREEMENT
The resettlement instrument is included in the Legal Agreement between the Bank and the Borrower

RESPONSIBILITIES
BORROWER:

BANK:

Prepare the Resettlement Instrument (Framework or Plan) Consult project affected persons Disclose the draft instrument as condition of project appraisal

Provide advice during the preparation of the instruments

Review and approve the Plan or Framework before appraisal

Disclose draft instrument at the Infoshop

Disclose the instrument again after it is finalized

Implement and monitor the Resettlement Plan

Disclose final instrument again at the Infoshop

Supervise regularly the implementation of the Plan Include Resettlement Results in the ICR

Final evaluation of the Plan

RESETTLEMENT POLICY FRAMEWORK

What is a Land Acquisition/ Resettlement Policy Framework ?

Specific

advance

impacts relating to land take not known in

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 predisplacement 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

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

Loss of houses and other structures (legal structures) Trees and standing crops Loss of structures for those without title to land or permits [Squatters]

What are Organizational Arrangements?

Land Acquisition Activity
Assessment of Impacts & Inventory of Losses, Census of affected people
Valuation of Assets Consultations Drafting the PF

Responsible Institution
MoPW/ PIU

MPW assigns to Licensed Independent Valuation Experts MoPW, PIU. Mayor of the LGU MoPW/ PIU

Compensation Payments
Expropriation of Land

MoF/ MoPW
Council of Ministers

Monitoring and Evaluation

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
Sub- Project Application Project Concept Development Technical & Social Review Abbreviated Resettlement Plan (ARP)

Data for Monitoring

Land take for sub-projects; scale of resettlement, if any. Community consultations (date, # of participants, issues), 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 Delivery of compensation Data on grievance redress Evaluation including assessment of economic rehabilitation/income restoration.

Implementation Post-Implementation