Resettlement Instruments

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

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Social AssessmentIdentification 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

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Core Elements of Social Assessment

• Social diversity and gender
• Stakeholder analysis
• Social risks and mitigation
• Participation

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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

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Liberia Infrastructure and Resettlement Challenge
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Required Resettlement Measures

• To inform displaced persons about their options
  and rights pertaining to resettlement
• Provide them technically and economically
  feasible resettlement alternatives

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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

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Required Resettlement Measures LAND VS. CASH

• Providing land for land is the preferred option
  for people whose livelihoods are land based

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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

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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

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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

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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)

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particular attention should be paid to

• Vulnerable groups
• below poverty line, landless, elderly, women,
  children, handicapped, single parents, indigenous
  peoples, ethnic minorities

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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

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Replacement Value

• Impacts
• 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

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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

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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

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Loss of livelihood Squatters
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Consultation about impacts and opportunities

• Public disclosure
• Information in local languages
• Options and choices
• Explanation of risks and benefits
• Adequate time to make informed judgments
• Joint verification of impacts and entitlements
• Registration and ID cards computerized database

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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
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Legal Agreement

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

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Content ofResettlement Instruments
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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)

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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

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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

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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

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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

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Responsibilities

• Borrower
• 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

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When it works!
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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

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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

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Summary of Key Issues toAddress 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

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Thank you!