OPERATIONAL POLICY 0P 4.12OPERATIONAL POLICY 0P 4.12

INVOLUNTARY INVOLUNTARY RESETTLEMENTRESETTLEMENT

Radhika Srinivasan, ECSSDRadhika Srinivasan, ECSSD

Outline of the PresentationOutline of the Presentation

Triggers of the PolicyTriggers of the Policy ObjectivesObjectives Scope and CoverageScope and Coverage Required Resettlement MeasuresRequired Resettlement Measures Eligibility CriteriaEligibility Criteria Resettlement Planning Resettlement Planning

InstrumentsInstruments Bank and Borrower RolesBank and Borrower Roles

IMPACTS THAT TRIGGER OP IMPACTS THAT TRIGGER OP 4.124.12

OP/BP 4.12 is triggered when a Bank OP/BP 4.12 is triggered when a Bank investment causes investment causes

Involuntary taking of land that results in Involuntary taking of land that results in direct social and economic impacts such as:direct social and economic impacts such as:

Loss of shelter leading to relocationLoss of shelter leading to relocation

Loss of assets or access to assetsLoss of assets or access to assets

Loss of income sources or means of livelihood (whether Loss of income sources or means of livelihood (whether

or not the affected persons must move to another or not the affected persons must move to another

location)location)

• Involuntary restriction of access to legally Involuntary restriction of access to legally designated parks and protected areas that designated parks and protected areas that result in adverse impacts on the livelihoods result in adverse impacts on the livelihoods of affected personsof affected persons

POLICY OBJECTIVESPOLICY OBJECTIVES

Avoid involuntary Avoid involuntary resettlement where feasible, resettlement where feasible, or minimize it, exploring all or minimize it, exploring all viable alternative project viable alternative project designs designs

Consult affected persons Consult affected persons meaningfully and provide meaningfully and provide opportunities to participate opportunities to participate in planning and in planning and implementing resettlement implementing resettlement programsprograms

Assist affected persons in Assist affected persons in their efforts to improve their their efforts to improve their livelihoods and standards of livelihoods and standards of living or at least to restore living or at least to restore them, in real terms, to pre-them, in real terms, to pre-displacement levelsdisplacement levels

SCOPE AND COVERAGE OF SCOPE AND COVERAGE OF OP.412OP.412

OP 4.12 applies to OP 4.12 applies to all all components of the projectcomponents of the project that that

require land take, regardless of the require land take, regardless of the source of financingsource of financing

other activitiesother activities requiring land take requiring land take that arethat are directly and significantly related to the directly and significantly related to the

Bank-assisted projectBank-assisted project necessary to achieve its objectives as set necessary to achieve its objectives as set

forth in the project documentsforth in the project documents carried out, or planned to be carried out, carried out, or planned to be carried out,

contemporaneously with the projectcontemporaneously with the project

IMPACTS COVERED BY OP4.12IMPACTS COVERED BY OP4.12yes or no?yes or no?

Business losses caused by rerouting Business losses caused by rerouting of road away from existing villageof road away from existing village

Loss of farmland inundated by a Loss of farmland inundated by a reservoirreservoir

Loss of jobs due to Bank-financed Loss of jobs due to Bank-financed privatization projectprivatization project

Loss of dwelling due to Loss of dwelling due to construction of a drainage canalconstruction of a drainage canal

Devaluation of property due to Devaluation of property due to Bank-financed solid waste dump Bank-financed solid waste dump nearbynearby

MITIGATION MEASURESMITIGATION MEASURES Inform affected Inform affected

persons about their persons about their rights/ options rights/ options pertaining to land pertaining to land acquisition/ acquisition/ resettlementresettlement

Provide prompt and Provide prompt and effective compensation effective compensation at full replacement at full replacement cost for losses of cost for losses of assets attributable assets attributable directly to the projectdirectly to the project

Provide resettlement Provide resettlement assistance for assistance for vulnerable affected vulnerable affected peoplepeople

MITIGATION MEASURESMITIGATION MEASURES Options can be “land Options can be “land

for land” if for land” if livelihoods land-livelihoods land-based; Cash possible based; Cash possible if land taken is a if land taken is a small fraction of the small fraction of the affected asset and affected asset and residual is viableresidual is viable

Link Compensation/ Link Compensation/ Resettlement Resettlement implementation to implementation to project timetableproject timetable

WHO IS ELIGIBLE?WHO IS ELIGIBLE?

The borrower carries out a census to identify The borrower carries out a census to identify those affected and eligible for assistance: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]

RESETTLEMENT RESETTLEMENT INSTRUMENTSINSTRUMENTS

Resettlement (Action) Plan*Resettlement (Action) Plan*

When it is possible to determine scale of When it is possible to determine scale of adverse impacts and affected population adverse impacts and affected population during project preparation, prior to during project preparation, prior to appraisalappraisal

Abbreviated Resettlement Abbreviated Resettlement (Action) Plan(Action) Plan

When impacts are minor or if fewer than When impacts are minor or if fewer than

200 people are displaced200 people are displaced

* Or Land Acquisition (Action) Plan

RESETTLEMENT INSTRUMENTS RESETTLEMENT INSTRUMENTS cont.cont.

Resettlement Policy FrameworkResettlement Policy Framework

When not possible to identify precise siting ot possible to identify precise siting alignments or specific impacts/affected alignments or specific impacts/affected population during project preparation population during project preparation (financial intermediary operations, and (financial intermediary operations, and projects with multiple subprojects), projects with multiple subprojects),

A Resettlement Action Plan is prepared for A Resettlement Action Plan is prepared for each subproject that may involve land each subproject that may involve land acquisition, before the subproject is accepted acquisition, before the subproject is accepted for Bank financingfor Bank financing

Process FrameworkProcess Framework For projects involving restriction of access to For projects involving restriction of access to

resources in legally designated parks or resources in legally designated parks or protected areasprotected areas

No separate Resettlement Action Plan No separate Resettlement Action Plan requiredrequired

LEGAL AGREEMENTLEGAL AGREEMENT

The resettlement The resettlement instrument is included in instrument is included in the Legal Agreement the Legal Agreement between the Bank and the between the Bank and the BorrowerBorrower

RESPONSIBILITIESRESPONSIBILITIESBORROWER:BORROWER:

Prepare the Resettlement Prepare the Resettlement Instrument (Framework or Instrument (Framework or Plan)Plan)

Consult project affected Consult project affected personspersons

Disclose the draft Disclose the draft instrument as condition of instrument as condition of project appraisalproject appraisal

Disclose the instrument Disclose the instrument again after it is finalizedagain after it is finalized

Implement and monitor Implement and monitor the Resettlement Plan the Resettlement Plan

Final evaluation of the Final evaluation of the PlanPlan

BANK:BANK:

Provide advice during the Provide advice during the preparation of the preparation of the instrumentsinstruments

Review and approve the Plan Review and approve the Plan or Framework before or Framework before appraisalappraisal

Disclose draft instrument at Disclose draft instrument at the Infoshopthe Infoshop

Disclose final instrument Disclose final instrument again at the Infoshopagain at the Infoshop

Supervise regularly the Supervise regularly the implementation of the Planimplementation of the Plan

Include Resettlement Results Include Resettlement Results in the ICRin the ICR

RESETTLEMENT RESETTLEMENT POLICY FRAMEWORKPOLICY FRAMEWORK

What is a Land Acquisition/ What is a Land Acquisition/ Resettlement Policy Resettlement Policy

Framework ?Framework ?Specific impacts relating to land take not known in Specific impacts relating to land take not known in advanceadvance

Agreement between the Borrower and the WB: Agreement between the Borrower and the WB: involuntary land expropriation,involuntary land expropriation, will comply with will comply with national laws relating to land expropriation and World national laws relating to land expropriation and World Bank Operational Policy (OP) 4.12 on Involuntary Bank Operational Policy (OP) 4.12 on Involuntary Resettlement.Resettlement.

Underlying principle: avoid/ minimize Underlying principle: avoid/ minimize adverse adverse impactsimpacts

What is the purpose of the RPF?What is the purpose of the RPF?

Clarifies land acquisition principles and organizational arrangements

Ensures that where land acquisition is that where land acquisition is unavoidable, borrower willunavoidable, borrower will

consult project affected persons consult project affected persons

compensate for lost assets at replacement compensate for lost assets at replacement costscosts

provide assistance to improve/ restore provide assistance to improve/ restore livelihoods and standards of living to pre-livelihoods and standards of living to pre-displacement levels in the event of displacement levels in the event of displacementdisplacement

What are the contents of a RPF?

Description of project components which Description of project components which trigger land acquisitiontrigger land acquisition

Legal framework reviewing borrower laws Legal framework reviewing borrower laws and Bank policy requirements on and Bank policy requirements on expropriation expropriation

Methods of valuing assetsMethods of valuing assets Estimated land take/ population displacementEstimated land take/ population displacement Eligibility criteria and Entitlement MatrixEligibility criteria and Entitlement Matrix Organizational arrangements for the delivery Organizational arrangements for the delivery

of entitlementsof entitlements Description of consultation process, Description of consultation process,

grievance redress mechanisms, grievance redress mechanisms, arrangements for funding, timelinearrangements for funding, timeline

Monitoring arrangements by the PIUMonitoring arrangements by the PIU

What does a review of the Legal What does a review of the Legal Framework entail?Framework entail?

Borrower land acquisition laws and Borrower land acquisition laws and procedures and fit with OP 4.12 principlesprocedures and fit with OP 4.12 principles

Typical areas of differencesTypical areas of differences Assessment of land acquisition impacts Assessment of land acquisition impacts

through a census of those affected with socio-through a census of those affected with socio-economic data and an inventory of losses economic data and an inventory of losses

Compensation: Land-for-land or Cash?Compensation: Land-for-land or Cash? Scope for consultation?Scope for consultation? Methods for valuing assets?Methods for valuing assets? Approach to people without clear titles to land/ Approach to people without clear titles to land/

assets?assets? Income restoration measures?Income restoration measures?

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

Example: Organizational Example: Organizational Arrangements 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 MoPW/ PIU

Compensation Payments MoF/ MoPW

Expropriation of Land Council of Ministers

Monitoring and Evaluation MoPW/PIU

Example: Grievance Redress Example: Grievance Redress MechanismsMechanisms

Grievances related to impacts Grievances related to impacts community community level, PIU, level, PIU, design consultants to find design consultants to find technical solutions. technical solutions.

Grievances related to compensation Grievances related to compensation amounts, delays in compensation payments amounts, delays in compensation payments PIU in liaison with the Municipalities. PIU in liaison with the Municipalities.

The Expropriation Law provides for an The Expropriation Law provides for an appeals process against the proposed award appeals process against the proposed award for compensation. for compensation.

Arbitration by NGOs.Arbitration by NGOs. Grievances through the court system.Grievances through the court system.

Example: Monitoring Arrangements (by PIU)Example: Monitoring Arrangements (by PIU)

Project Cycle Data for MonitoringSub- 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.