Involuntary Resettlement 0P 4.12: Financial Intermediaries and Resettlement Planning Instruments

A Resettlement Overview What does OP 4.12 require financial intermediaries to do? What does OP 4.12 require financial intermediaries to do? What are the purposes of resettlement planning? What are the purposes of resettlement planning? What specific and recurring issues require attention in Turkey projects? What specific and recurring issues require attention in Turkey projects? What is a Resettlement Action Plan (RAP) and what does it require? What is a Resettlement Action Plan (RAP) and what does it require? What is a Resettlement Policy Framework (RPF) and what does it require? What is a Resettlement Policy Framework (RPF) and what does it require?

Role of Financial Intermediaries Prepare and agree a Resettlement Policy Framework with the Bank Prepare and agree a Resettlement Policy Framework with the Bank Screen all proposed on-lending activities for land acquisition and associated resettlement impacts Screen all proposed on-lending activities for land acquisition and associated resettlement impacts If RPF deemed unnecessary, legal documents require compliance if impacts should arise If RPF deemed unnecessary, legal documents require compliance if impacts should arise For all subprojects involving relevant impacts, Bank approval of a resettlement plan required before accepted for financing For all subprojects involving relevant impacts, Bank approval of a resettlement plan required before accepted for financing

Delegation of Clearance to FIs Bank may delegate in writing authority to review and clear resettlement plans to FIs Bank may delegate in writing authority to review and clear resettlement plans to FIs Requires demonstrated capacity to review plans and ensure policy consistency in implementation Requires demonstrated capacity to review plans and ensure policy consistency in implementation Legal documents establish delegation, as well as Bank recourse if review process is inadequate Legal documents establish delegation, as well as Bank recourse if review process is inadequate Bank Provide arrangements and resources for implementation of mitigation measures Bank Provide arrangements and resources for implementation of mitigation measures Resettlement plans subject to ex-post Bank review Resettlement plans subject to ex-post Bank review Implementation subject to Bank supervision Implementation subject to Bank supervision

Key Planning Objectives Identify adverse impacts for avoidance, minimization or mitigation Identify adverse impacts for avoidance, minimization or mitigation Assist affected people to improve, or at least restore, incomes and living standards Assist affected people to improve, or at least restore, incomes and living standards Provide arrangements and resources for implementation of mitigation measures Provide arrangements and resources for implementation of mitigation measures Mitigating risks for affected people helps minimize risks to borrower and Bank, too Mitigating risks for affected people helps minimize risks to borrower and Bank, too

Key Planning Considerations Resettlement planning and implementation is the borrower’s responsibility Resettlement planning and implementation is the borrower’s responsibility But plans and implementation must be consistent with Bank principles and standards But plans and implementation must be consistent with Bank principles and standards Implementers and affected people should be involved in planning process Implementers and affected people should be involved in planning process Compensation and other necessary assistance provided before impacts are imposed Compensation and other necessary assistance provided before impacts are imposed Financial intermediary must coordinate planning and implementation Financial intermediary must coordinate planning and implementation

Likely FI Coordination Issues Making sure subclients are aware of, and understand, requirements for Bank financing Making sure subclients are aware of, and understand, requirements for Bank financing Reaching agreement to change normal procedures or provide additional assistance Reaching agreement to change normal procedures or provide additional assistance Prepare stand-alone resettlement plans consistent with Bank requirements Prepare stand-alone resettlement plans consistent with Bank requirements Ensure appropriate timing and sequencing of planning and implementation Ensure appropriate timing and sequencing of planning and implementation Ensure appropriate documentation and reporting Ensure appropriate documentation and reporting

Recurring Issues in Turkey Projects Defining the project: Sequencing and “linkage” in application of Bank policy Defining the project: Sequencing and “linkage” in application of Bank policy Bridging the eligibility gap: Assisting people who lack full legal recognition Bridging the eligibility gap: Assisting people who lack full legal recognition Covering all costs: ‘Replacement cost’ valuation, transaction costs and transitional support Covering all costs: ‘Replacement cost’ valuation, transaction costs and transitional support Going beyond compensation: Income restoration and development opportunities Going beyond compensation: Income restoration and development opportunities Ensuring adequate consultation under emergency expropriation procedures Ensuring adequate consultation under emergency expropriation procedures

Resettlement Policy Framework RPF establishes principles, procedures and responsibilities for planning and implementation RPF establishes principles, procedures and responsibilities for planning and implementation Prepared when it is impossible to finalize a project or subproject RAP by appraisal Prepared when it is impossible to finalize a project or subproject RAP by appraisal Technical planning cannot be done if location, nature and scale of impacts are not known Technical planning cannot be done if location, nature and scale of impacts are not known Bank acceptance of RAP required prior to ‘approval of financing’ and initiation of works Bank acceptance of RAP required prior to ‘approval of financing’ and initiation of works RPF should establish due diligence reporting requirement for sites already acquired RPF should establish due diligence reporting requirement for sites already acquired

Core Content of RPF Description of project and estimated impacts Description of project and estimated impacts Explanation why full planning is not possible Explanation why full planning is not possible Key principles and objectives Key principles and objectives Policy and regulatory gap analysis Policy and regulatory gap analysis Plan preparation and approval process Plan preparation and approval process Organizational roles and procedures Organizational roles and procedures Consultation, disclosure and grievance redress commitments Consultation, disclosure and grievance redress commitments

Recurring RPF Transition Issues RPF should be prepared by borrower, to show understanding and acceptance of obligations RPF should be prepared by borrower, to show understanding and acceptance of obligations RPF provides tentative agreement; RAP reviewed and approved based on final design RPF provides tentative agreement; RAP reviewed and approved based on final design RPF should reflect level of information available at appraisal stage RPF should reflect level of information available at appraisal stage Planning or implementation issues often arise if borrower ownership or coordination is weak Planning or implementation issues often arise if borrower ownership or coordination is weak In FI projects, implementation issues arise if subclients do not know or accept requirements In FI projects, implementation issues arise if subclients do not know or accept requirements

Resettlement Action Plan Provides an institutional and technical basis for identifying and mitigating resettlement impacts Provides an institutional and technical basis for identifying and mitigating resettlement impacts Scope of planning should be commensurate with scale and complexity of impacts: Scope of planning should be commensurate with scale and complexity of impacts: Planning requirements are more extensive when relatively large numbers of people are affected, when incomes and livelihoods are affected, or when planning for resettlement sites is necessary An abbreviated resettlement plan is acceptable when less than 200 people are affected, when there is no need for income restoration, and when resettlement sites are not necessary Bank acceptance of the RAP is required prior to subproject approval for financing Bank acceptance of the RAP is required prior to subproject approval for financing

RAP: Institutional Aspects Policy and regulatory gap analysis Policy and regulatory gap analysis Timetable linked to project implementation Timetable linked to project implementation Organizational roles and capacity assessment Organizational roles and capacity assessment Internal and external monitoring arrangements Internal and external monitoring arrangements Consultation and information dissemination Consultation and information dissemination Grievance procedures Grievance procedures

RAP: Technical Content Description of project and impacts Description of project and impacts Impact avoidance and minimization efforts Impact avoidance and minimization efforts Identification of affected persons and impacts Identification of affected persons and impacts Valuation, compensation and assistance measures Valuation, compensation and assistance measures Relocation site plan (if relevant) Relocation site plan (if relevant) Income restoration plan (if relevant) Income restoration plan (if relevant) Budget and financial arrangements Budget and financial arrangements

Conducting Census and Inventory 100% census is essential for identifying and enumerating all affected people 100% census is essential for identifying and enumerating all affected people Inventory of affected assets essential to categorization of impacts and formulation of assistance Inventory of affected assets essential to categorization of impacts and formulation of assistance Income-related impacts and other potential socioeconomic issues can be considered on sample survey basis Income-related impacts and other potential socioeconomic issues can be considered on sample survey basis Full and timely data gathering is key to establishing eligibility, budgeting, monitoring and resolution of grievances Full and timely data gathering is key to establishing eligibility, budgeting, monitoring and resolution of grievances

Recurring Practical Problems RAP inputs and processes are more time- intensive than usual domestic practice RAP inputs and processes are more time- intensive than usual domestic practice Consultation and information disclosure requirements may be more extensive Consultation and information disclosure requirements may be more extensive Clarifying responsibilities and inter-agency coordination can be difficult Clarifying responsibilities and inter-agency coordination can be difficult Different Bank measures and procedures bureaucratically difficult to implement Different Bank measures and procedures bureaucratically difficult to implement Bridging gaps: borrower often lacks authority to go beyond existing regulations or practice Bridging gaps: borrower often lacks authority to go beyond existing regulations or practice Monitoring and adapting to contingencies Monitoring and adapting to contingencies