Involuntary Resettlement 0P 4.12 Principles and Objectives WB Safeguards Training Workshop Tbilisi, May 2013

A Resettlement Overview Why does the Bank have an Involuntary Resettlement Policy? Why does the Bank have an Involuntary Resettlement Policy? How has the Bank’s policy evolved? How has the Bank’s policy evolved? What are policy objectives and key principles What are policy objectives and key principles What is role of Financial Intermediaries? What is role of Financial Intermediaries?

Why a Policy on Involuntary Resettlement? Bank funded investments, especially infrastructure development, often require the acquisition of privately and community owned land Bank funded investments, especially infrastructure development, often require the acquisition of privately and community owned land Land acquisition induced impacts include: physical relocation, loss of land and assets, disruption of livelihoods Land acquisition induced impacts include: physical relocation, loss of land and assets, disruption of livelihoods Without proper planning and management, involuntary resettlement may result in severe social impacts on affected populations Without proper planning and management, involuntary resettlement may result in severe social impacts on affected populations

Resettlement History No mitigation: Those losing land must make a sacrifice for national development objectives No mitigation: Those losing land must make a sacrifice for national development objectives Eminent domain: compensation for assets favors land owners. Eminent domain: compensation for assets favors land owners. Risks of impoverishment if interests of poor and vulnerable are not recognized Risks of impoverishment if interests of poor and vulnerable are not recognized Resettlement can be a development opportunity too: Extending the reach of project benefits Resettlement can be a development opportunity too: Extending the reach of project benefits

Key Policy Objectives Avoid, minimize, or otherwise mitigate land acquisition and associated adverse impacts Avoid, minimize, or otherwise mitigate land acquisition and associated adverse impacts Assist all affected people to improve, or at least restore, incomes and living standards Assist all affected people to improve, or at least restore, incomes and living standards Resettlement as a development opportunity for households and community infrastructure Resettlement as a development opportunity for households and community infrastructure (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 Guiding Principles All affected persons should be compensated or assisted in other ways, regardless of legal status All affected persons should be compensated or assisted in other ways, regardless of legal status Compensation for all assets at replacement cost (enough to obtain assets of equivalent value) Compensation for all assets at replacement cost (enough to obtain assets of equivalent value) Income restoration may require supportive measures in addition to compensation for assets Income restoration may require supportive measures in addition to compensation for assets Affected persons should be involved in resettlement planning and implementation Affected persons should be involved in resettlement planning and implementation Consultation Consultation Information Disclosure Information Disclosure Grievance Procedure Grievance Procedure

Role of Financial Intermediaries Prepare and agree a Resettlement Policy Framework with the Bank, ensure FI capacity to oversee social safeguard subproject issues Prepare and agree a Resettlement Policy Framework with the Bank, ensure FI capacity to oversee social safeguard subproject issues Screen all proposed on-lending activities for land acquisition/associated resettlement impacts (going forward and in anticipation of project prior to funding) Screen all proposed on-lending activities for land acquisition/associated resettlement impacts (going forward and in anticipation of project prior to funding) Legal documents require compliance if IR impacts should arise Legal documents require compliance if IR 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

Recurring Issues and Problems Defining project scope: “Indirect impacts” and “linkage” in application of Bank policy Defining project scope: “Indirect impacts” and “linkage” in application of Bank policy Bridging the eligibility gap: Assisting vulnerable people and those who lack full legal recognition Bridging the eligibility gap: Assisting vulnerable people and those 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 Asset stock versus income flow: Going beyond compensation to livelihood restoration and incorporation of development opportunities Asset stock versus income flow: Going beyond compensation to livelihood restoration and incorporation of development opportunities In FI projects, ensuring coordination with sub- clients in implementation and reporting In FI projects, ensuring coordination with sub- clients in implementation and reporting

Capacity Building (at all levels) Discuss with client what mitigation measure is feasible. Discuss with client what mitigation measure is feasible. Try to use mitigation measures that fit within the National legal framework and consistent with local practice as long as you these comply with the spirit of OP 4.12 that no one should be “worse off” and mitigation measures are done within framework of development. Try to use mitigation measures that fit within the National legal framework and consistent with local practice as long as you these comply with the spirit of OP 4.12 that no one should be “worse off” and mitigation measures are done within framework of development. Ensure that the client sees you as their technical partner to help them overcome complex issues rather than someone who is a watchdog. If you explain clearly what is needed, they realize it is in their interest to do it right and that you will be there to help them implement it. Ensure that the client sees you as their technical partner to help them overcome complex issues rather than someone who is a watchdog. If you explain clearly what is needed, they realize it is in their interest to do it right and that you will be there to help them implement it. Building capacity with the local authority goes a long way so ensure the first interaction is positive and communication proceeds smoothly. Building capacity with the local authority goes a long way so ensure the first interaction is positive and communication proceeds smoothly.