OPERATIONAL POLICY 0P 4'12

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• OPERATIONAL POLICY 0P 4.12
• INVOLUNTARY RESETTLEMENT
• Radhika Srinivasan, ECSSD

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Outline of the Presentation

• Triggers of the Policy
• Objectives
• Scope and Coverage
• Required Resettlement Measures
• Eligibility Criteria
• Resettlement Planning Instruments
• Bank and Borrower Roles

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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

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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

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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

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IMPACTS COVERED BY OP4.12yes 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

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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

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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

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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

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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
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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

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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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RESPONSIBILITIES

• 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

• 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

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RESETTLEMENT POLICY FRAMEWORK
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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

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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

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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

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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?

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Example Entitlement Matrix
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Example Organizational Arrangements
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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.

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Example Monitoring Arrangements (by PIU)