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

Involuntary ResettlementInvoluntary ResettlementOPERATIONAL POLICY 0P 4.12OPERATIONAL POLICY 0P 4.12

Afshan Khawaja, OPCQCAfshan Khawaja, OPCQC

Zagreb, May 2009Zagreb, May 2009

OverviewOverview

Policy ObjectivesPolicy Objectives Triggers of the PolicyTriggers of the Policy Scope of ApplicationScope of Application Involuntary Resettlement in Selected Involuntary Resettlement in Selected

SectorsSectors ConsultationConsultation Resettlement InstrumentsResettlement Instruments Case studyCase study

Cartoon by Chris Madden

Land Acquisition andLand Acquisition andInvoluntary ResettlementInvoluntary Resettlement

Why a Policy on Why a Policy on Involuntary Resettlement?Involuntary Resettlement?

Sustainable economic development relies on the Sustainable economic development relies on the construction of new infrastructureconstruction of new infrastructure

Infrastructure development, in turn, often requires Infrastructure development, in turn, often requires the acquisition of privately owned land and assetsthe acquisition of privately owned land and assets

Typical development induced impacts: physical Typical development induced impacts: physical relocation, loss of land and assets, disruption of relocation, loss of land and assets, disruption of livelihoods and breakdown of communitieslivelihoods and breakdown of communities

Impacts not just limited to large infrastructure; Impacts not just limited to large infrastructure; many projects require minor land acquisition or many projects require minor land acquisition or relocate people only a few hundred metersrelocate people only a few hundred meters

Without proper planning and management, Without proper planning and management, involuntary resettlement may result in severe involuntary resettlement may result in severe economic, social and environmental impacts on economic, social and environmental impacts on affected populationsaffected populations

Policy Principles and ObjectivesPolicy Principles and Objectives

Avoid or minimize involuntary Avoid or minimize involuntary resettlement and associated disruptionsresettlement and associated disruptions

Treat resettlement as sustainable Treat resettlement as sustainable development programsdevelopment programs

Provide affected people with opportunities Provide affected people with opportunities to participate in the planning and to participate in the planning and implementation of resettlement programsimplementation of resettlement programs

Assist displaced people to improve their Assist displaced people to improve their livelihoods and standards of living or at livelihoods and standards of living or at least to restore them to pre-displacement least to restore them to pre-displacement levelslevels

Impacts that Trigger OP 4.12Impacts that Trigger OP 4.12 Direct economic and social impacts that both Direct economic and social impacts that both

result from Bank-assisted projects, and are result from Bank-assisted projects, and are caused by the involuntary taking of land caused by the involuntary taking of land resulting from:resulting from:

Loss of assets or access to assetsLoss of assets or access to assets Loss of shelter or relocationLoss of shelter or relocation Loss of income sources or means of livelihood (whether or Loss of income sources or means of livelihood (whether or

not the affected persons must move to another location)not the affected persons must move to another location)

Restriction of access to legally designated parks Restriction of access to legally designated parks

and protected areas that result in adverse and protected areas that result in adverse

impacts on the livelihoods of affected personsimpacts on the livelihoods of affected persons

Scope of ApplicationScope of Application OP 4.12 applies to: OP 4.12 applies to: all all components of the projectcomponents of the project that result in that result in

involuntary resettlement, regardless of involuntary resettlement, regardless of the source of financing the source of financing other activitiesother activities requiring land take that are:requiring land take that 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

a project regardless of the total number of a project regardless of the total number of people affected or the people affected or the significance/severity of impactssignificance/severity of impacts

When OP 4.12 Does not ApplyWhen OP 4.12 Does not Apply

Community based natural resource Community based natural resource managementmanagement

Programs or policies regulating resources Programs or policies regulating resources on a regional or national scaleon a regional or national scale

Disputes between private parties in land Disputes between private parties in land titling projectstitling projects

When the following criteria is not met: When the following criteria is not met: Involuntary taking of land (resulting in loss of land, Involuntary taking of land (resulting in loss of land,

assets and livelihoods)assets and livelihoods) Involuntary resettlementInvoluntary resettlement Restriction of access associated with a Bank financed Restriction of access associated with a Bank financed

projectproject

Non-Safeguard Social RisksNon-Safeguard Social Risks

Labor retrenchmentLabor retrenchment Political instabilityPolitical instability ConflictConflict Breakdown of Rule of Law Breakdown of Rule of Law

Key Stakeholders in a Key Stakeholders in a Resettlement ProgramResettlement Program

Affected people and their representativesAffected people and their representatives Host populations (population in areas receiving Host populations (population in areas receiving

the resettlers)the resettlers) Implementing agencyImplementing agency National, provincial, local governmentsNational, provincial, local governments NGOs and CSOsNGOs and CSOs Project developerProject developer Private sector firms involved in the projectPrivate sector firms involved in the project Funding agenciesFunding agencies Consultants conducting various studiesConsultants conducting various studies

Types of Involuntary ResettlementTypes of Involuntary ResettlementLinearLinear

Linear projectsLinear projects – highways, railways, – highways, railways, transmission lines, irrigation channels – long but transmission lines, irrigation channels – long but narrow corridor of impactnarrow corridor of impact

Key impactsKey impacts• Rural areas, may have minimal impact on single land Rural areas, may have minimal impact on single land

holder (i.e. transmission line)holder (i.e. transmission line)• Urban areas, may require the demolition of structures Urban areas, may require the demolition of structures

along the project right-of-way (i.e. road upgrading) along the project right-of-way (i.e. road upgrading) significantly impacting large numbers of peoplesignificantly impacting large numbers of people

Mitigation ChallengesMitigation Challenges• Compensation – large number of small payments for Compensation – large number of small payments for

temporary loss of assets–significant cumulative impactstemporary loss of assets–significant cumulative impacts• Resettlement activities need to coordinated across Resettlement activities need to coordinated across

multiple jurisdictions and/or different cultural and multiple jurisdictions and/or different cultural and linguistic areaslinguistic areas

Types of Involuntary ResettlementTypes of Involuntary ResettlementSite-specificSite-specific

Site-specific projects - Site-specific projects - discrete, non-linear projects discrete, non-linear projects (dams, reservoirs, highway interchanges, landfills) where (dams, reservoirs, highway interchanges, landfills) where land acquisition encompasses a fixed arealand acquisition encompasses a fixed area

Key ImpactsKey Impacts• Can disrupt the lives and lifestyles of people displaced and Can disrupt the lives and lifestyles of people displaced and

people who are dependent on land acquiredpeople who are dependent on land acquired• Can result in significant economic and physical displacementCan result in significant economic and physical displacement

Mitigation ChallengesMitigation Challenges• Complex and difficult resettlement operations, especially in Complex and difficult resettlement operations, especially in

populatedpopulated• Incremental resettlement in phases over a number of yearsIncremental resettlement in phases over a number of years• Maintaining consistent approach to compensation and income Maintaining consistent approach to compensation and income

restoration over the life of the projectrestoration over the life of the project• High-risk, potentially controversialHigh-risk, potentially controversial

Types of Involuntary ResettlementTypes of Involuntary ResettlementUrbanUrban

Urban projects – Urban projects – urban environment (sanitation, sewerage), urban environment (sanitation, sewerage), urban infrastructure (roads, railways)urban infrastructure (roads, railways)

Key impactsKey impacts• Physical and economic displacement affecting housing, Physical and economic displacement affecting housing,

employment and enterprisesemployment and enterprises• Little land acquisition, but works in areas where people are Little land acquisition, but works in areas where people are

living and working can severe and costly impactsliving and working can severe and costly impacts Mitigation ChallengesMitigation Challenges

• Restoration of wage-based or enterprise-based livelihoods often Restoration of wage-based or enterprise-based livelihoods often tied to location (i.e. proximity to jobs, customers and markets)tied to location (i.e. proximity to jobs, customers and markets)

• Resettlement sites should be selected to maintain the proximity Resettlement sites should be selected to maintain the proximity of affected people to established sources of employment and of affected people to established sources of employment and incomeincome

• Maintain neighborhood networks – weakening of social safety Maintain neighborhood networks – weakening of social safety netsnets

ConsultationConsultation

A two-way process in which stakeholders provide A two-way process in which stakeholders provide advice and input on the design of proposed advice and input on the design of proposed projects that affect their lives and environmentprojects that affect their lives and environment

Promotes dialogue between governments, Promotes dialogue between governments, communities, NGOs and implementing agencies communities, NGOs and implementing agencies to discuss all aspect of the proposed project to discuss all aspect of the proposed project

Iterative process from project preparation to Iterative process from project preparation to completioncompletion

Mandated by the Environment Assessment, Mandated by the Environment Assessment, Involuntary Resettlement and Indigenous Peoples Involuntary Resettlement and Indigenous Peoples Policies and an integral element of the process for Policies and an integral element of the process for preparing relevant safeguard instrumentspreparing relevant safeguard instruments

Mitigation MeasuresMitigation Measures Inform affected persons Inform affected persons

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

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

Provide resettlement Provide resettlement assistance for vulnerable assistance for vulnerable affected peopleaffected people

Mitigation MeasuresMitigation Measures

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

Impacts Covered by OP 4.12Impacts Covered by OP 4.12Yes or No?Yes or No?

Loss of farmland inundated by a reservoirLoss of farmland inundated by a reservoir Loss of jobs due to Bank-financed Loss of jobs due to Bank-financed

privatization projectprivatization project Loss of dwelling due to construction of a Loss of dwelling due to construction of a

drainage canaldrainage canal Loss of fruit trees planted on a plot of Loss of fruit trees planted on a plot of

publicly owned land publicly owned land Devaluation of property due to Bank-Devaluation of property due to Bank-

financed solid waste dump nearbyfinanced solid waste dump nearby Loss of community access to pasturesLoss of community access to pastures

Resettlement InstrumentsResettlement Instruments

Resettlement (Action) Plan* Resettlement (Action) Plan* Abbreviated Resettlement (Action) PlanAbbreviated Resettlement (Action) Plan Resettlement Policy FrameworkResettlement Policy Framework Process FrameworkProcess Framework

(more details in later session)(more details in later session)

*/ or Land Acquisition (Action) Plan*/ or Land Acquisition (Action) Plan

Resettlement Instruments to Fit Resettlement Instruments to Fit Project ContextProject Context

Resettlement no longer restricted to Resettlement no longer restricted to large infrastructure projectslarge infrastructure projects

Minor land acquisition or relocation Minor land acquisition or relocation of people a short distanceof people a short distance

Projects without land acquisition or Projects without land acquisition or physical relocation but impose physical relocation but impose restrictions to people’s access to restrictions to people’s access to legally designated parks and legally designated parks and protected areasprotected areas

Ghazi Barotha Hydropower ProjectGhazi Barotha Hydropower Project“What worked and why”“What worked and why”

Ghazi Barotha Hydropower ProjectGhazi Barotha Hydropower Project

Major hydropower in northern Pakistan consisting of Major hydropower in northern Pakistan consisting of 4 key components:4 key components:

• a barrage to divert water from the Indus river a barrage to divert water from the Indus river into a power channelinto a power channel

• 52 km concrete lined power channel to 52 km concrete lined power channel to transmit water to a power complextransmit water to a power complex

• Power complexPower complex• Transmission linesTransmission lines

Installed capacity 1450 MWInstalled capacity 1450 MW Total project costs: US $2.250 billionTotal project costs: US $2.250 billion


Key Social Impacts:Key Social Impacts: acquisition of 3,500 hectares of privately acquisition of 3,500 hectares of privately

owned landowned land 20,000 people affected by loss of land 20,000 people affected by loss of land

(almost 40,00 by the end of the project)(almost 40,00 by the end of the project)• 2,500 people mostly landless laborers 2,500 people mostly landless laborers

and tenant farmers affected by loss of and tenant farmers affected by loss of livelihoodslivelihoods

• 1,000 people affected by displacement1,000 people affected by displacement


What worked: meeting OP 4.12 objectivesWhat worked: meeting OP 4.12 objectives

• Early attention to adverse social and Early attention to adverse social and environmental impactsenvironmental impacts

• Social environment impacts incorporated into Social environment impacts incorporated into selection of design alternatives to avoid selection of design alternatives to avoid adverse impactsadverse impacts

Changes in project design reduced Changes in project design reduced resettlement from 35,000 to 1,000resettlement from 35,000 to 1,000

Reduced environmental and cultural Reduced environmental and cultural heritage impacts (graveyards, religious heritage impacts (graveyards, religious structures)structures)



Resettlement treated as a development Resettlement treated as a development program (thinking beyond the short-term)program (thinking beyond the short-term)• employment opportunities employment opportunities • skills trainingskills training• micro-creditmicro-credit• gender specific training on small scale gender specific training on small scale

enterprisesenterprises



Ongoing consultation throughout project Ongoing consultation throughout project preparation and implementation between preparation and implementation between different levels of government, affected people, different levels of government, affected people, NGOs, and implementing agencies on:NGOs, and implementing agencies on: Project designProject design Resettlement strategyResettlement strategy Compensation rates and eligibility for entitlements/assistanceCompensation rates and eligibility for entitlements/assistance Choice of resettlement site and timing of relocationChoice of resettlement site and timing of relocation Development opportunitiesDevelopment opportunities Procedures for redressing grievancesProcedures for redressing grievances Mechanisms for monitoring and evaluationMechanisms for monitoring and evaluation



Assisting people to improve their Assisting people to improve their standards of living or at least to restore standards of living or at least to restore them to pre-displacement levelsthem to pre-displacement levels

Key Policy Application IssuesKey Policy Application Issues

Differences with Countries’ PracticesDifferences with Countries’ Practices• Replacement cost – for lost land and assetsReplacement cost – for lost land and assets

Practice: undervalued, under-compensatedPractice: undervalued, under-compensated

• Livelihood restorationLivelihood restoration Not part of standard practiceNot part of standard practice

• Eligibility Eligibility Controversial – assistance to people without Controversial – assistance to people without

legal claimslegal claims

The ChallengeThe Challenge

How to improve development outcomes?How to improve development outcomes?

Thank you!Thank you!

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

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