2 Outline of the Presentation Triggers of the PolicyObjectivesScope and CoverageRequired Resettlement MeasuresEligibility CriteriaResettlement Planning InstrumentsBank and Borrower Roles
3 IMPACTS THAT TRIGGER OP 4.12 OP/BP 4.12 is triggered when a Bank investment causesInvoluntary taking of land that results in direct social and economic impacts such as:Loss of shelter leading to relocationLoss of assets or access to assetsLoss 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
4 POLICY OBJECTIVESAvoid involuntary resettlement where feasible, or minimize it, exploring all viable alternative project designsConsult affected persons meaningfully and provide opportunities to participate in planning and implementing resettlement programsAssist 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
5 SCOPE AND COVERAGE OF OP.412 OP 4.12 applies toall components of the project that require land take, regardless of the source of financingother activities requiring land take that aredirectly and significantly related to the Bank-assisted projectnecessary to achieve its objectives as set forth in the project documentscarried out, or planned to be carried out, contemporaneously with the project
6 IMPACTS COVERED BY OP4.12 yes or no? Business losses caused by rerouting of road away from existing villageLoss of farmland inundated by a reservoirLoss of jobs due to Bank-financed privatization projectLoss of dwelling due to construction of a drainage canalDevaluation of property due to Bank-financed solid waste dump nearby
7 MITIGATION MEASURESInform affected persons about their rights/ options pertaining to land acquisition/ resettlementProvide prompt and effective compensation at full replacement cost for losses of assets attributable directly to the projectProvide resettlement assistance for vulnerable affected people
8 MITIGATION MEASURESOptions 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 viableLink Compensation/ Resettlement implementation to project timetable
9 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]
10 RESETTLEMENT INSTRUMENTS Resettlement (Action) Plan*When it is possible to determine scale of adverse impacts and affected population during project preparation, prior to appraisalAbbreviated Resettlement (Action) PlanWhen impacts are minor or if fewer than 200 people are displaced* Or Land Acquisition (Action) Plan
11 RESETTLEMENT INSTRUMENTS cont. Resettlement Policy FrameworkWhen 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 financingProcess FrameworkFor projects involving restriction of access to resources in legally designated parks or protected areasNo separate Resettlement Action Plan required
12 LEGAL AGREEMENTThe resettlement instrument is included in the Legal Agreement between the Bank and the Borrower
13 RESPONSIBILITIES BANK: BORROWER: Provide advice during the preparation of the instrumentsReview and approve the Plan or Framework before appraisalDisclose draft instrument at the InfoshopDisclose final instrument again at the InfoshopSupervise regularly the implementation of the PlanInclude Resettlement Results in the ICRBORROWER:Prepare the Resettlement Instrument (Framework or Plan)Consult project affected personsDisclose the draft instrument as condition of project appraisalDisclose the instrument again after it is finalizedImplement and monitor the Resettlement PlanFinal evaluation of the Plan
15 What is a Land Acquisition/ Resettlement Policy Framework ? Specific impacts relating to land take not known in advanceAgreement 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
16 What is the purpose of the RPF? Clarifies land acquisition principles and organizational arrangementsEnsures that where land acquisition is unavoidable, borrower willconsult project affected personscompensate for lost assets at replacement costsprovide assistance to improve/ restore livelihoods and standards of living to pre-displacement levels in the event of displacement
17 What are the contents of a RPF? Description of project components which trigger land acquisitionLegal framework reviewing borrower laws and Bank policy requirements on expropriationMethods of valuing assetsEstimated land take/ population displacementEligibility criteria and Entitlement MatrixOrganizational arrangements for the delivery of entitlementsDescription of consultation process, grievance redress mechanisms, arrangements for funding, timelineMonitoring arrangements by the PIU
18 What does a review of the Legal Framework entail? Borrower land acquisition laws and procedures and fit with OP 4.12 principlesTypical areas of differencesAssessment of land acquisition impacts through a census of those affected with socio-economic data and an inventory of lossesCompensation: Land-for-land or Cash?Scope for consultation?Methods for valuing assets?Approach to people without clear titles to land/ assets?Income restoration measures?
19 Example: Entitlement Matrix ImpactsEntitlements< 50% of agricultural land lostCash compensation equivalent to market value> 50% of land holding lostCash compensation for the entire landholding + Relocation Assistance+ Income Support + +Job TrainingLoss of houses and other structures (legal structures)Undepreciated value of building in cash+ Right to salvage materials+ Moving ExpensesTrees and standing cropsCash compensationLoss 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
20 Example: Organizational Arrangements Land Acquisition ActivityResponsible InstitutionAssessment of Impacts & Inventory of Losses, Census of affected peopleMoPW/ PIUValuation of AssetsMPW assigns to Licensed Independent Valuation ExpertsConsultationsMoPW, PIU. Mayor of the LGUDrafting the PFCompensation PaymentsMoF/ MoPWExpropriation of LandCouncil of MinistersMonitoring and EvaluationMoPW/PIU
21 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.
22 Example: Monitoring Arrangements (by PIU) Project CycleData for MonitoringSub- Project ApplicationLand take for sub-projects; scale of resettlement, if any.Project Concept Development Technical & Social ReviewCommunity 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 ARPDate of disclosure of ARPImplementationDelivery of compensationData on grievance redressPost-ImplementationEvaluation including assessment of economic rehabilitation/income restoration.