OPERATIONAL POLICY 0P 4.12
INVOLUNTARY
RESETTLEMENT
Radhika Srinivasan, ECSSD
Outline of the Presentation
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Triggers of the Policy
Objectives
Scope and Coverage
Required Resettlement Measures
Eligibility Criteria
Resettlement Planning Instruments
Bank and Borrower Roles
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:
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Loss of shelter leading to relocation
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Loss of assets or access to assets
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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
POLICY OBJECTIVES
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Avoid involuntary resettlement where
feasible, or minimize it, exploring all
viable alternative project designs
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Consult affected persons
meaningfully and provide
opportunities to participate in
planning and implementing
resettlement programs
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Assist affected persons in their efforts
to improve their livelihoods and
standards of living or at least to
restore them, in real terms, to predisplacement levels
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
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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
IMPACTS COVERED BY OP4.12
yes or no?
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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 Bankfinanced solid waste dump nearby
MITIGATION MEASURES
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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
MITIGATION MEASURES
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Options can be “land for
land” if livelihoods landbased; Cash possible if land
taken is a small fraction of
the affected asset and
residual is viable
Link Compensation/
Resettlement
implementation to project
timetable
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]
RESETTLEMENT INSTRUMENTS
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Resettlement (Action) Plan*
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When it is possible to determine scale of adverse
impacts and affected population during project
preparation, prior to appraisal
Abbreviated Resettlement (Action) Plan
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When impacts are minor or if fewer than 200 people are
displaced
* Or Land Acquisition (Action) Plan
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RESETTLEMENT INSTRUMENTS cont.
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Resettlement Policy Framework
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When not possible to identify precise siting alignments
or specific impacts/affected population during project
preparation (financial intermediary operations, and
projects with multiple subprojects),
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A Resettlement Action Plan is prepared for each
subproject that may involve land acquisition, before the
subproject is accepted for Bank financing
Process Framework
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For projects involving restriction of access to resources
in legally designated parks or protected areas
No separate Resettlement Action Plan required
LEGAL AGREEMENT
The resettlement instrument is
included in the Legal Agreement
between the Bank and the Borrower
RESPONSIBILITIES
BANK:
BORROWER:
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Prepare the Resettlement
Instrument (Framework or Plan)
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Provide advice during the preparation
of the instruments
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Consult project affected persons
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Review and approve the Plan or
Framework before appraisal
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Disclose the draft instrument as
condition of project appraisal
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Disclose draft instrument at the
Infoshop
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Disclose the instrument again after
it is finalized
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Disclose final instrument again at the
Infoshop
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Implement and monitor the
Resettlement Plan
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Supervise regularly the implementation
of the Plan
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Include Resettlement Results in the ICR
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Final evaluation of the Plan
RESETTLEMENT POLICY
FRAMEWORK
What is a Land Acquisition/
Resettlement Policy Framework ?
Specific
advance
impacts relating to land take not known in
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
What is the purpose of the RPF?
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Clarifies land acquisition principles and
organizational arrangements
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Ensures that where land acquisition is
unavoidable, borrower will
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consult project affected persons
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compensate for lost assets at replacement costs
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provide assistance to improve/ restore
livelihoods and standards of living to predisplacement levels in the event of displacement
What are the contents of a RPF?
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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
What does a review of the Legal
Framework entail?
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Borrower land acquisition laws and procedures
and fit with OP 4.12 principles
Typical areas of differences
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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?
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
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 Mechanisms
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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.
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.