1. INVOLUNTARY RESETTLEMENT Radhika Srinivasan, ECSSD
OPERATIONAL POLICY 0P 4.12
INVOLUNTARY RESETTLEMENT
Radhika Srinivasan, ECSSD

2. Outline of the Presentation
Triggers of the Policy
Objectives
Scope and Coverage
Required Resettlement Measures
Eligibility Criteria
Resettlement Planning Instruments
Bank and Borrower Roles

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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]

10. 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

11. 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

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

13. RESPONSIBILITIES BANK: BORROWER:
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
BORROWER:
Prepare the Resettlement Instrument (Framework or Plan)
Consult project affected persons
Disclose the draft instrument as condition of project appraisal
Disclose the instrument again after it is finalized
Implement and monitor the Resettlement Plan
Final evaluation of the Plan

14. RESETTLEMENT POLICY FRAMEWORK

15. 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

16. 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

17. 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

18. 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?

19. Example: Entitlement Matrix
Impacts
Entitlements
< 50% of agricultural land lost
Cash compensation equivalent to market value
> 50% of land holding lost
Cash compensation for the entire landholding + Relocation Assistance+ Income Support + +Job Training
Loss of houses and other structures (legal structures)
Undepreciated value of building in cash+ Right to salvage materials+ Moving Expenses
Trees and standing crops
Cash compensation
Loss of structures for those without title to land or permits [Squatters]
No compensation for land. Undepreciated value of building in cash +Right to salvage materials+ costs of shifting + job placement, skills training

20. Example: Organizational Arrangements
Land Acquisition Activity
Responsible Institution
Assessment of Impacts & Inventory of Losses, Census of affected people
MoPW/ PIU
Valuation of Assets
MPW assigns to Licensed Independent Valuation Experts
Consultations
MoPW, PIU. Mayor of the LGU
Drafting the PF
Compensation Payments
MoF/ MoPW
Expropriation of Land
Council of Ministers
Monitoring and Evaluation
MoPW/PIU

21. Example: 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.

22. Example: Monitoring Arrangements (by PIU)
Project Cycle
Data for Monitoring
Sub- Project Application
Land take for sub-projects; scale of resettlement, if any.
Project Concept Development Technical & Social Review
Community consultations (date, # of 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.