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

2. Overview Policy Objectives Policy Objectives Triggers of the Policy Triggers of the Policy Scope of Application Scope of Application Involuntary Resettlement in Selected Sectors Involuntary Resettlement in Selected Sectors Consultation Consultation Resettlement Instruments Resettlement Instruments Case study Case study

3. Cartoon by Chris Madden Land Acquisition and Involuntary Resettlement

4. Why a Policy on Involuntary Resettlement? Sustainable economic development relies on the construction of new infrastructure Sustainable economic development relies on the construction of new infrastructure Infrastructure development, in turn, often requires the acquisition of privately owned land and assets Infrastructure development, in turn, often requires the acquisition of privately owned land and assets Typical development induced impacts: physical relocation, loss of land and assets, disruption of livelihoods and breakdown of communities Typical development induced impacts: physical relocation, loss of land and assets, disruption of livelihoods and breakdown of communities Impacts not just limited to large infrastructure; many projects require minor land acquisition or relocate people only a few hundred meters Impacts not just limited to large infrastructure; many projects require minor land acquisition or relocate people only a few hundred meters Without proper planning and management, involuntary resettlement may result in severe economic, social and environmental impacts on affected populations Without proper planning and management, involuntary resettlement may result in severe economic, social and environmental impacts on affected populations

5. Policy Principles and Objectives Avoid or minimize involuntary resettlement and associated disruptions Avoid or minimize involuntary resettlement and associated disruptions Treat resettlement as sustainable development programs Treat resettlement as sustainable development programs Provide affected people with opportunities to participate in the planning and implementation of resettlement programs Provide affected people with opportunities to participate in the planning and implementation of resettlement programs Assist displaced people to improve their livelihoods and standards of living or at least to restore them to pre-displacement levels Assist displaced people to improve their livelihoods and standards of living or at least to restore them to pre-displacement levels

6. 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: 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 assets or access to assets Loss of shelter or relocation Loss of shelter or relocation Loss of income sources or means of livelihood (whether or not the affected persons must move to another location) 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 Restriction of access to legally designated parks and protected areas that result in adverse impacts on the livelihoods of affected persons

7. Scope of Application OP 4.12 applies to: all components of the project that result in involuntary resettlement, regardless of the source of financing other activities requiring land take that are: all components of the project that result in involuntary resettlement, regardless of the source of financing other activities requiring land take that are: directly and significantly related to the Bank-assisted project directly and significantly related to the Bank-assisted project necessary to achieve its objectives as set forth in the project documents necessary to achieve its objectives as set forth in the project documents carried out, or planned to be carried out, contemporaneously with the project carried out, or planned to be carried out, contemporaneously with the project a project regardless of the total number of people affected or the significance/severity of impacts a project regardless of the total number of people affected or the significance/severity of impacts

8. When OP 4.12 Does not Apply Community based natural resource management Community based natural resource management Programs or policies regulating resources on a regional or national scale Programs or policies regulating resources on a regional or national scale Disputes between private parties in land titling projects Disputes between private parties in land titling projects When the following criteria is not met: When the following criteria is not met: Involuntary taking of land (resulting in loss of land, assets and livelihoods) Involuntary taking of land (resulting in loss of land, assets and livelihoods) Involuntary resettlement Involuntary resettlement Restriction of access associated with a Bank financed project Restriction of access associated with a Bank financed project

9. Non-Safeguard Social Risks Labor retrenchment Labor retrenchment Political instability Political instability Conflict Conflict Breakdown of Rule of Law Breakdown of Rule of Law

10. Key Stakeholders in a Resettlement Program Affected people and their representatives Affected people and their representatives Host populations (population in areas receiving the resettlers) Host populations (population in areas receiving the resettlers) Implementing agency Implementing agency National, provincial, local governments National, provincial, local governments NGOs and CSOs NGOs and CSOs Project developer Project developer Private sector firms involved in the project Private sector firms involved in the project Funding agencies Funding agencies Consultants conducting various studies Consultants conducting various studies

11. Types of Involuntary Resettlement Linear Linear projects – highways, railways, transmission lines, irrigation channels – long but narrow corridor of impact Linear projects – highways, railways, transmission lines, irrigation channels – long but narrow corridor of impact Key impacts Key impacts Rural areas, may have minimal impact on single land holder (i.e. transmission line)Rural areas, may have minimal impact on single land holder (i.e. transmission line) Urban areas, may require the demolition of structures along the project right-of-way (i.e. road upgrading) significantly impacting large numbers of peopleUrban areas, may require the demolition of structures along the project right-of-way (i.e. road upgrading) significantly impacting large numbers of people Mitigation Challenges Mitigation Challenges Compensation – large number of small payments for temporary loss of assets–significant cumulative impactsCompensation – large number of small payments for temporary loss of assets–significant cumulative impacts Resettlement activities need to coordinated across multiple jurisdictions and/or different cultural and linguistic areasResettlement activities need to coordinated across multiple jurisdictions and/or different cultural and linguistic areas

14. Types of Involuntary Resettlement Site-specific Site-specific projects - discrete, non-linear projects (dams, reservoirs, highway interchanges, landfills) where land acquisition encompasses a fixed area Site-specific projects - discrete, non-linear projects (dams, reservoirs, highway interchanges, landfills) where land acquisition encompasses a fixed area Key Impacts Key Impacts Can disrupt the lives and lifestyles of people displaced and people who are dependent on land acquiredCan disrupt the lives and lifestyles of people displaced and people who are dependent on land acquired Can result in significant economic and physical displacementCan result in significant economic and physical displacement Mitigation Challenges Mitigation Challenges Complex and difficult resettlement operations, especially in populatedComplex and difficult resettlement operations, especially in populated Incremental resettlement in phases over a number of yearsIncremental resettlement in phases over a number of years Maintaining consistent approach to compensation and income restoration over the life of the projectMaintaining consistent approach to compensation and income restoration over the life of the project High-risk, potentially controversialHigh-risk, potentially controversial

16. Types of Involuntary Resettlement Urban Urban projects – urban environment (sanitation, sewerage), urban infrastructure (roads, railways) Urban projects – urban environment (sanitation, sewerage), urban infrastructure (roads, railways) Key impacts Key impacts Physical and economic displacement affecting housing, employment and enterprisesPhysical and economic displacement affecting housing, employment and enterprises Little land acquisition, but works in areas where people are living and working can severe and costly impactsLittle land acquisition, but works in areas where people are living and working can severe and costly impacts Mitigation Challenges Mitigation Challenges Restoration of wage-based or enterprise-based livelihoods often tied to location (i.e. proximity to jobs, customers and markets)Restoration of wage-based or enterprise-based livelihoods often tied to location (i.e. proximity to jobs, customers and markets) Resettlement sites should be selected to maintain the proximity of affected people to established sources of employment and incomeResettlement sites should be selected to maintain the proximity of affected people to established sources of employment and income Maintain neighborhood networks – weakening of social safety netsMaintain neighborhood networks – weakening of social safety nets

19. Consultation A two-way process in which stakeholders provide advice and input on the design of proposed projects that affect their lives and environment A two-way process in which stakeholders provide advice and input on the design of proposed projects that affect their lives and environment Promotes dialogue between governments, communities, NGOs and implementing agencies to discuss all aspect of the proposed project Promotes dialogue between governments, communities, NGOs and implementing agencies to discuss all aspect of the proposed project Iterative process from project preparation to completion Iterative process from project preparation to completion Mandated by the Environment Assessment, Involuntary Resettlement and Indigenous Peoples Policies and an integral element of the process for preparing relevant safeguard instruments Mandated by the Environment Assessment, Involuntary Resettlement and Indigenous Peoples Policies and an integral element of the process for preparing relevant safeguard instruments

20. Mitigation Measures Inform affected persons about their rights/ options pertaining to land acquisition/ resettlement 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 prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project Provide resettlement assistance for vulnerable affected people Provide resettlement assistance for vulnerable affected people

21. Mitigation Measures Link Compensation/ Resettlement implementation to project timetable Link Compensation/ Resettlement implementation to project timetable

22. Impacts Covered by OP 4.12 Yes or No? Loss of farmland inundated by a reservoir Loss of farmland inundated by a reservoir Loss of jobs due to Bank-financed privatization project Loss of jobs due to Bank-financed privatization project Loss of dwelling due to construction of a drainage canal Loss of dwelling due to construction of a drainage canal Loss of fruit trees planted on a plot of publicly owned land Loss of fruit trees planted on a plot of publicly owned land Devaluation of property due to Bank- financed solid waste dump nearby Devaluation of property due to Bank- financed solid waste dump nearby Loss of community access to pastures Loss of community access to pastures

23. Resettlement Instruments Resettlement (Action) Plan* Resettlement (Action) Plan* Abbreviated Resettlement (Action) Plan Abbreviated Resettlement (Action) Plan Resettlement Policy Framework Resettlement Policy Framework Process Framework Process Framework (more details in later session) */ or Land Acquisition (Action) Plan

24. Resettlement Instruments to Fit Project Context Resettlement no longer restricted to large infrastructure projects Resettlement no longer restricted to large infrastructure projects Minor land acquisition or relocation of people a short distance Minor land acquisition or relocation of people a short distance Projects without land acquisition or physical relocation but impose restrictions to people’s access to legally designated parks and protected areas Projects without land acquisition or physical relocation but impose restrictions to people’s access to legally designated parks and protected areas

25. Ghazi Barotha Hydropower Project “What worked and why”

26. Ghazi Barotha Hydropower Project Major hydropower in northern Pakistan consisting of 4 key components: a barrage to divert water from the Indus river into a power channela barrage to divert water from the Indus river into a power channel 52 km concrete lined power channel to transmit water to a power complex52 km concrete lined power channel to transmit water to a power complex Power complexPower complex Transmission linesTransmission lines Installed capacity 1450 MW Installed capacity 1450 MW Total project costs: US $2.250 billion Total project costs: US $2.250 billion

27. Ghazi Barotha Hydropower Project Key Social Impacts: acquisition of 3,500 hectares of privately owned land acquisition of 3,500 hectares of privately owned land 20,000 people affected by loss of land (almost 40,00 by the end of the project) 20,000 people affected by loss of land (almost 40,00 by the end of the project) 2,500 people mostly landless laborers and tenant farmers affected by loss of livelihoods2,500 people mostly landless laborers and tenant farmers affected by loss of livelihoods 1,000 people affected by displacement1,000 people affected by displacement

28. Ghazi Barotha Hydropower Project What worked: meeting OP 4.12 objectives Early attention to adverse social and environmental impactsEarly attention to adverse social and environmental impacts Social environment impacts incorporated into selection of design alternatives to avoid adverse impactsSocial environment impacts incorporated into selection of design alternatives to avoid adverse impacts Changes in project design reduced resettlement from 35,000 to 1,000 Changes in project design reduced resettlement from 35,000 to 1,000 Reduced environmental and cultural heritage impacts (graveyards, religious structures) Reduced environmental and cultural heritage impacts (graveyards, religious structures)

29. Ghazi Barotha Hydropower Project

32. Ghazi Barotha Hydropower Project Ghazi Barotha Hydropower Project What worked: meeting OP 4.12 objectives Resettlement treated as a development program (thinking beyond the short-term) Resettlement treated as a development program (thinking beyond the short-term) employment opportunitiesemployment opportunities skills training skills training micro-credit micro-credit gender specific training on small scale enterprises gender specific training on small scale enterprises

33. Ghazi Barotha Hydropower Project

34. What worked: meeting OP 4.12 objectives Ongoing consultation throughout project preparation and implementation between different levels of government, affected people, NGOs, and implementing agencies on:  Project design  Resettlement strategy  Compensation rates and eligibility for entitlements/assistance  Choice of resettlement site and timing of relocation  Development opportunities  Procedures for redressing grievances  Mechanisms for monitoring and evaluation

35. Ghazi Barotha Hydropower Project

36. What worked: meeting OP 4.12 objectives Assisting people to improve their standards of living or at least to restore them to pre-displacement levels Assisting people to improve their standards of living or at least to restore them to pre-displacement levels

37. Ghazi Barotha Hydropower Project

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

40. The Challenge How to improve development outcomes?

41. Thank you!