1. Involuntary Resettlement Resettlement Instruments
OPERATIONAL POLICY 0P 4.12
Resettlement Instruments
Afshan Khawaja, OPCQC
Zagreb, May 2009

2. Overview Social assessment Impacts that trigger OP 4.12
Required mitigation measures
Who is eligible
Key issues
Replacement value, livelihood restoration, eligibility
Consultation
Resettlement instruments
Borrower and Bank responsibilities
Supervision, completion and beyond

3. Social Assessment Identification of Social Impacts and Risks
Good practice for the borrower to undertake a social assessment to:
Identify the nature and magnitude of social impacts
Identify indirect social and economic impacts*
Define and implement measures to mitigate these impacts, especially on poor and vulnerable groups
Identify project activities that may give rise to involuntary resettlement
* Economic and social impacts that do not result directly from land taking can pose significant social risks if not mitigated and managed properly

4. Core Elements of Social Assessment
Social diversity and gender
Stakeholder analysis
Social risks and mitigation
Participation

5. Impacts that Trigger OP 4.12
Direct economic and social impacts that both result from Bank-assisted projects, and are caused by the involuntary taking of land resulting from:
Loss of assets or access to assets
Loss of shelter or relocation
Loss of income sources or means of livelihood (whether or not the affected persons must move to another location)
Restriction of access to legally designated parks and protected areas that result in adverse impacts on the livelihoods of affected persons

6. Liberia: Infrastructure and Resettlement Challenge

7. Required Resettlement Measures
To inform displaced persons about their options and rights pertaining to resettlement
Provide them technically and economically feasible resettlement alternatives

8. Required Resettlement Measures
To provide prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project
Provide assistance during relocation
To provide with residential houses, or housing sites, or as required agricultural sites, at least equivalent to the advantages of the old site

9. Required Resettlement Measures “LAND VS. CASH”
Providing “land for land” is the preferred option for people whose livelihoods are land based

10. Required Resettlement Measures
Cash compensation may be appropriate when:
Land taken by the project is a small fraction of the affected asset and residual is viable
Livelihoods are not land based
Cash compensation is the preferred option of displaced people and they have the capacity for self-resettlement

11. Required Resettlement Measures
Offer support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living
Moving expenses
Employment training
Income support while awaiting income restoration
Develop affordable and accessible grievance redress mechanisms

12. Required Resettlement Measures
Include the total costs resettlement activities in the total costs of the project
Link resettlement implementation to project timetable (people should be properly compensated and assisted prior to displacement

13. Who is Eligible?
The borrower carries out a census to identify those affected and eligible for assistance:
Those who have formal legal rights to land (compensation)
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)
Those who have no recognizable legal right or claim to the land that they are occupying (resettlement assistance)

14. …particular attention should be paid to…
Vulnerable groups:
below poverty line, landless, elderly, women, children, handicapped, single parents, indigenous peoples, ethnic minorities

15. Key Policy Application Issues
Differences with Countries’ Practices
Replacement cost – for lost land and assets
Practice: undervalued, under-compensated
Livelihood restoration
Not part of standard practice
Eligibility
Controversial – assistance to people without legal claims

16. Replacement Value Impacts Compensation Issues
Loss of land and other assets
Agricultural and non-agricultural land
Houses and other structures
Assets – wells, trees, crops
Compensation
Full replacement costs (market value of assets plus transaction costs, registration and transfer taxes)
Issues
Who determine value?
Who pays for it?
When is it decided?
Practice - undervalued, under-compensated

17. Livelihood Restoration
Impacts
Loss of income-earning capacity
Compensation alone does not guarantee the restoration or improvement of living standards
Example: agricultural land has a market value (requires compensation), but it is also the basis for livelihood and future earning capacity (requires rehabilitation)
Issues
Not part of standard practice
Household may have multiple providers of income – require intra-household analysis
Women have different opportunities for employment – require gender analysis
Vulnerable groups (poor, elderly, ethnic minorities) have different opportunities for livelihood restoration – establish criteria for vulnerability

18. Eligibility- Groups Not Protected by National Land Compensation Law
Definition
People lacking title to land or structures
Squatters (urban) or encroachers (agricultural or forest areas)
Impacts
Squatters in occupation of land before project initiation may have invested in structures or land improvement
Issues
OP 4.12 – affected people who do not have legal title to lands occupied/used by them need to be provided with resettlement assistance
Controversial – no recognized rights
When is a squatter not a squatter?
Traditional rights where state never legally acquired land
Local recognition based on taxes – defecto ownership
Promises of land regularization by politicians
Inconsistent applications of policies, court reversals

19. Loss of livelihood: Squatters

20. Resettlement Instruments
Resettlement plan (RAP)
When it is possible to determine displacing population during project preparation (i.e. site-specific resettlement)
Abbreviated resettlement plan (ARP)
When affected people are not physically displaced and less than 10% of their productive assets are lost, or fewer than 200 people are displaced
Resettlement policy framework (RPF)
In a project with multiple subprojects where population to be displaced not know during project preparation (i.e. linear resettlement
Process framework (PF)
For projects involving restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of affected people
Cartoon by Chris Madden

21. Legal Agreement
The resettlement instrument is included in the Legal Agreement Between the Bank and the Borrower

22. Content of Resettlement Instruments

23. Resettlement Plan – Content (1)
Project description and location
Potential impacts
Components that cause displacement
Affected areas and population
Alternatives to prevent or minimize displacement
Socioeconomic and cultural studies
Methodology (including detailed household census survey)
Results (size and socioeconomic characteristics of affected population, systems of labor, livelihoods property held and type of tenancy, etc.)
Impact assessment
Magnitude of the expected losses (total, partial)
Type of displacement (physical, economic)

24. Resettlement Plan – Content (2)
Legal framework
Relevant legislation (international treaties, national constitution, laws related to eminent domain and the nature of compensation associated with it)
Methods of valuing affected assets
Timing of payment
Mechanisms for dispute resolutions
Gaps between local laws covering eminent domain and the Bank's policy, and mechanisms to bridge such gaps
Entitlements to be offered based on type of impact, and on socioeconomic and cultural characteristics of the population (Entitlement Matrix)
Eligibility criteria for each entitlement
Cut-off date to prevent "rent seeking"
Measures to prevent the arrival of new settlers in the affected area

25. Resettlement Plan – Content (3)
Programs
Communication, consultation, participation
Land acquisition or land replacement
Construction or acquisition of new housing, business, farms, industries and community facilities, public services
Income restoration and development of economic opportunities
Reestablishment of social networks
Integration with host population
Environmental impacts of the proposed resettlement and measures to mitigate them
Grievance mechanisms and procedures
Organizational responsibilities
Budget and financing plan
Timetable (linked to underlying project)
Monitoring system
Evaluation system

26. Resettlement Policy Framework - Content
Project description (explanation of displaced population)
Legal framework (relevant legislation, mechanisms)
Principles and objectives governing resettlement preparation and implementation
Eligibility criteria for defining displaced persons
Description of the implementation process, linking resettlement implementation to civil works or the events that could cause displacement
Procedures to prepare and implement resettlement plans
Ns (such plans are subject to prior review by the Bank before their implementation)
Content of resettlement plans
Participatory and consultation mechanisms
Description of grievance redress mechanisms
Institution responsible (resources, capacity and measures to strengthen it, if needed)
Monitoring system
Evaluation system

27. Process Framework - Content
Describe participatory process to:
Prepare and implement project components that may cause restriction to access to resources
Identify and assess the magnitude of the impacts
Establish criteria of eligibility for any compensatory measure
Choose potential mitigating or compensating measures to be provided to affected people
Design conflict mechanisms resolution
Administrative and legal procedures
Monitoring arrangements

28. Responsibilities Borrower: Bank:
Prepare the Resettlement Instrument (Framework or Plan)
Consult project affected persons
Disclose the draft instruments as condition of project appraisal
Disclose the instrument again after it is finalized
Implement and monitor the Resettlement Plan
Final evaluation of the Plan
Bank:
Provide advice during the preparation of the instruments
Review and approve the Plan or Framework before appraisal
Disclose draft instrument at the infoshop
Disclose final instrument again at the infoshop
Supervise regularly the implementation of the Plan
Include Resettlement Results in the ICR

29. When it works!

30. Supervision, Completion and Beyond
The policy prescribes:
An early review of implementation
Earlier than the mid-term review for the project
A project is not considered complete – and Bank supervision continues – until the agreed resettlement measures have been implemented
A follow up socio-economic survey at project completion
To assess the extent to which the objectives of the resettlement program have been achieved
Based on the baseline socioeconomic survey and periodic monitoring reports
If the assessment reveals that objectives may not be realized, the borrower should propose follow up measures
Bank supervision may continue beyond project completion, if considered necessary by the Bank

31. Key Implementation Issues and Challenges
Capacity of implementing agency and understanding of agreements, rights an d obligations
How are impacts addressed?
Who is responsible?
Who pays for it, with what budget?
How is it monitored?
How are impacts and results communicated to key stakeholders, particularly those affected?
If problems arise, how are they dealt with?
Consultants frequently prepare poor quality reports

32. Summary of Key Issues to Address Resettlement in Bank-Supported Projects
Policy
Agreement with the borrower on applicable principles
Analysis
If potential adverse impacts: identify, avoid, minimize, mitigate
Consultation and disclosure
Prior information, documentation of views and concerns input to design, feedback
Action and mitigation plans
Instruments vary by policy and category
Framework if direct impact area is unknown
Institutional arrangements
Responsibilities, budgets, capacity assessment, strengthening if needed

33. Thank you!