ESS6 Biodiversity Conservation PDF

Land Acquisition, Restrictions 5 on Land Use and Involuntary Resettlement Introduction 2. Experience and research indicate that physical...

Land Acquisition, Restrictions 5 on Land Use and Involuntary Resettlement Introduction 2. Experience and research indicate that physical and economic displacement, if unmitigated, may 1.  ESS5 recognizes that project-related land give rise to severe economic, social and environ- acquisition and restrictions on land use can mental risks: production systems may be disman- have adverse impacts on communities and persons. Project-related land acquisition1 tled; people face impoverishment if their productive resources or other income sources are lost; people may be relocated to environments where their pro- Land. Res or restrictions on land use2 may cause ductive skills are less applicable and the competi- physical displacement (relocation, loss of tion for resources greater; community institutions residential land or loss of shelter), eco- and social networks may be weakened; kin groups nomic displacement (loss of land, assets or may be dispersed; and cultural identity, traditional access to assets, leading to loss of income authority, and the potential for mutual help may be diminished or lost. For these reasons, invol- sources or other means of livelihood),3 or untary resettlement should be avoided.4 Where both. The term “involuntary resettlement” involuntary resettlement is unavoidable, it will be refers to these impacts. Resettlement is minimized and appropriate measures to mitigate considered involuntary when affected per- adverse impacts on displaced persons (and on host sons or communities do not have the right communities receiving displaced persons) will be to refuse land acquisition or restrictions on carefully planned and implemented. land use that result in displacement. Objectives To avoid involuntary resettlement or, when unavoidable, minimize involuntary resettlement by exploring project design alternatives. To avoid forced eviction.5 To mitigate unavoidable adverse social and “Land acquisition” refers to all methods of obtaining land for 1 economic impacts from land acquisition or project purposes, which may include outright purchase, expro- restrictions on land use by: (a) providing timely priation of property and acquisition of access rights, such as compensation for loss of assets at replacement easements or rights of way. Land acquisition may also include: (a) acquisition of unoccupied or unutilized land whether or not the landholder relies upon such land for income or livelihood purposes; (b) repossession of public land that is used or occu- ESS5 pied by individuals or households; and (c) project impacts that result in land being submerged or otherwise rendered unus- able or inaccessible. “Land” includes anything growing on or permanently affixed to land, such as crops, buildings and other improvements, and appurtenant water bodies. Avoidance is the preferred approach in accordance with the 4 “Restrictions on land use” refers to limitations or prohibitions 2 mitigation hierarchy in ESS1. It is especially important to avoid on the use of agricultural, residential, commercial or other land physical or economic displacement of those socially or eco- that are directly introduced and put into effect as part of the nomically vulnerable to hardship as a result. However, avoid- project. These may include restrictions on access to legally desig- ance may not be the preferred approach in situations where nated parks and protected areas, restrictions on access to other public health or safety would be adversely affected as a result. common property resources, and restrictions on land use within There may also be situations where resettlement can provide utility easements or safety zones. direct development opportunities for households or communi- “Livelihood” refers to the full range of means that individu- 3 ties, including improved housing and public health conditions, als, families and communities utilize to make a living, such as strengthened security of tenure or other improvements to local wage-based income, agriculture, fishing, foraging, other natural living standards. resource-based livelihoods, petty trade and bartering. See paragraph 31. 5 53 1707130_Environmental_and_Social_Framework.indd 53 5/25/17 8:34 AM  cost6 and (b) assisting displaced persons in land use undertaken or imposed in connection with their efforts to improve, or at least restore, their project implementation: livelihoods and living standards, in real terms, to pre-displacement levels or to levels prevail- (a) Land rights or land use rights acquired or ing prior to the beginning of project implemen- restricted through expropriation or other com- tation, whichever is higher. pulsory procedures in accordance with national law; To improve living conditions of poor or vulner- (b) Land rights or land use rights acquired or able persons who are physically displaced, through provision of adequate housing, access restricted through negotiated settlements with to services and facilities, and security of property owners or those with legal rights to tenure.7 the land, if failure to reach settlement would have resulted in expropriation or other com- To conceive and execute resettlement activities pulsory procedures;8 as sustainable development programs, providing sufficient investment resources to enable dis- (c) Restrictions on land use and access to natural placed persons to benefit directly from the proj- resources that cause a community or groups ect, as the nature of the project may warrant. within a community to lose access to resource usage where they have traditional or customary To ensure that resettlement activities are tenure, or recognizable usage rights. This may planned and implemented with appropriate dis- include situations where legally designated closure of information, meaningful consultation, protected areas, forests, biodiversity areas or and the informed participation of those affected. buffer zones are established in connection with the project;9 Scope of application (d) Relocation of people without formal, tradi- tional, or recognizable usage rights, who are 3.  The applicability of ESS5 is established during the occupying or utilizing land prior to a project- environmental and social assessment described in specific cut-off date; ESS1. (e) Displacement of people as a result of project 4.  This ESS applies to permanent or temporary phys- impacts that render their land unusable or ical and economic displacement resulting from the inaccessible; following types of land acquisition or restrictions on (f) Restriction on access to land or use of other resources including communal property and natural resources such as marine and aquatic “Replacement cost” is defined as a method of valuation yielding 6 resources, timber and non-timber forest prod- compensation sufficient to replace assets, plus necessary trans- ucts, fresh water, medicinal plants, hunting and action costs associated with asset replacement. Where func- gathering grounds and grazing and cropping tioning markets exist, replacement cost is the market value as established through independent and competent real estate val- areas; uation, plus transaction costs. Where functioning markets do not exist, replacement cost may be determined through alternative means, such as calculation of output value for land or productive assets, or the undepreciated value of replacement material and labor for construction of structures or other fixed assets, plus transaction costs. In all instances where physical displacement results in loss of shelter, replacement cost must at least be suf- ficient to enable purchase or construction of housing that meets Notwithstanding the application of this ESS to such situations, 8 acceptable minimum community standards of quality and safety. the Borrower is encouraged to seek negotiated settlements with The valuation method for determining replacement cost should affected persons in a manner meeting the requirements of this be documented and included in relevant resettlement planning ESS in order to help avoid administrative or judicial delays asso- documents. Transaction costs include administrative charges, ciated with formal expropriation, and to the extent possible to registration or title fees, reasonable moving expenses, and any reduce the impacts on affected persons associated with formal similar costs imposed on affected persons. To ensure compen- expropriation. sation at replacement cost, planned compensation rates may In such situations, affected persons frequently do not have for- 9 require updating in project areas where inflation is high or the mal ownership. This may include freshwater and marine environ- period of time between calculation of compensation rates and ments. This ESS does not apply to restrictions of access to natural delivery of compensation is extensive. resources under community-based natural resource manage- “Security of tenure” means that resettled individuals or com- 7 ment projects, i.e., where the community using the resources col- munities are resettled to a site that they can legally occupy, where lectively decides to restrict access to these resources, provided they are protected from the risk of eviction and where the tenure that an assessment satisfactory to the Bank establishes that the rights provided to them are socially and culturally appropriate. community decision-making process is adequate and reflects In no event will resettled persons be provided tenure rights that voluntary, informed consensus, and that appropriate measures are in effect weaker than the rights they had to the land or assets have been agreed and put in place to mitigate adverse impacts, if from which they have been displaced. any, on the vulnerable members of the community. 54 1707130_Environmental_and_Social_Framework.indd 54 5/25/17 8:35 AM  (g) Land rights or claims to land or resources assessment will be required under ESS1.12 The relinquished by individuals or communities assessment aims to identify potential risks and without full payment of compensation;10 and impacts, as well as appropriate design measures to (h) Land acquisition or land use restrictions minimize and mitigate adverse economic and social occurring prior to the project, but which were impacts, especially those that affect poor and vul- undertaken or initiated in anticipation of, or in nerable groups.13 This ESS does not apply to disputes preparation for, the project. between private parties in land titling or related contexts. However, where persons are required to 5. This ESS does not apply to impacts on incomes vacate land as a direct result of a ­project-supported or livelihoods that are not a direct result of land determination that the land in question is state acquisition or land use restrictions imposed by the land, this ESS will apply (in addition to the relevant project. Such impacts will be addressed in accor- provisions of ESS1 mentioned above). dance with ESS1. 8. This ESS does not apply to land use planning or 6. This ESS does not apply to voluntary, legally the regulation of natural resources to promote their recorded market transactions in which the seller is sustainability on a regional, national or subnational given a genuine opportunity to retain the land and level (including watershed management, ground- to refuse to sell it, and is fully informed about avail- water management, fisheries management, and able choices and their implications. However, where coastal zone management). Where a project sup- such voluntary land transactions may result in the ports such activities, the Borrower will be required displacement of persons, other than the seller, who to conduct a social, legal and institutional assess- occupy, use or claim rights to the land in question, ment under ESS1, in order to identify potential eco- this ESS will apply.11 nomic and social risks and impacts of the planning or regulation, and appropriate measures to mini- 7. Where a project supports land titling or other mize and mitigate them, in particular those that activities intended to confirm, regularize or deter- affect poor and vulnerable groups. mine land rights, a social, legal and institutional 9. This ESS does not apply to management of refu- gees from, or persons internally displaced by, natu- ral disasters, conflict, crime or violence. In some circumstances, it may be proposed that part or all of 10 the land to be used by the project is donated on a voluntary basis without payment of full compensation. Subject to prior Requirements Bank approval, this may be acceptable providing the Borrower demonstrates that: (a) the potential donor or donors have been appropriately informed and consulted about the project and the A. General choices available to them; (b) potential donors are aware that refusal is an option, and have confirmed in writing their willing- Eligibility classification ness to proceed with the donation; (c) the amount of land being 10. Affected persons may be classified as persons: donated is minor and will not reduce the donor’s remaining land area below that required to maintain the donor’s livelihood at current levels; (d) no household relocation is involved; (e) the (a) Who have formal legal rights to land or assets; donor is expected to benefit directly from the project; and (f ) for (b) Who do not have formal legal rights to land or community or collective land, donation can only occur with the consent of individuals using or occupying the land. The Borrower assets, but have a claim to land or assets that will maintain a transparent record of all consultations and agree- is recognized or recognizable under national ments reached. law;14 or This may include situations where a project supports voluntary 11 transactions between communities, governments and investors (c) Who have no recognizable legal right or claim involving significant areas of land (for example where a project to the land or assets they occupy or use. involves support to commercial investment in agricultural land). In such cases, in applying the relevant provisions of this ESS, special The census described in paragraph 20 will establish care must be taken to ensure: (a) that all tenure rights and claims (including those of customary and informal users) affecting the the status of the affected persons. ESS5 land in question are systematically and impartially identified; (b) that potentially affected individuals, groups or communities are meaningfully consulted, informed of their rights, and provided reliable information concerning environmental, economic, social and food security impacts of the proposed investment; (c) that community stakeholders are enabled to negotiate fair value and appropriate conditions for the transfer; (d) that appropriate com- ESS1, para. 28(b). 12 pensation, benefit sharing and grievance redress mechanisms are put in place; (e) that terms and conditions of the transfer are See ESS1, footnote 28. 13 transparent; and (f ) mechanisms are put in place for monitoring Such claims could be derived from adverse possession or from 14 compliance with those terms and conditions. customary or traditional tenure arrangements. 55 1707130_Environmental_and_Social_Framework.indd 55 12/11/17 2:28 PM  Project design and, where applicable, displaced people have been 11. The Borrower will demonstrate that involun- resettled and moving allowances have been pro- tary land acquisition or restrictions on land use are vided to the displaced persons in addition to com- limited to direct project requirements for clearly pensation. In addition, livelihood restoration and specified project purposes within a clearly specified improvement programs will commence in a timely period of time. The Borrower will consider feasible fashion in order to ensure that affected persons are alternative project designs to avoid or minimize land sufficiently prepared to take advantage of alterna- acquisition or restrictions on land use, especially tive livelihood opportunities as the need to do so where this would result in physical or economic dis- arises. placement, while balancing environmental, social, 16. In certain cases there may be significant dif- and financial costs and benefits, and paying par- ficulties related to the payment of compensation ticular attention to gender impacts and impacts on to particular affected persons, for example, where the poor and vulnerable. repeated efforts to contact absentee owners have Compensation and benefits for affected persons failed, where project-affected persons have rejected compensation that has been offered to them in 12. When land acquisition or restrictions on land accordance with the approved plan, or where com- use (whether permanent or temporary) cannot be peting claims to the ownership of lands or assets are avoided, the Borrower will offer affected persons subject to lengthy legal proceedings. On an excep- compensation at replacement cost, and other assis- tional basis, with prior agreement of the Bank, and tance as may be necessary to help them improve where the Borrower demonstrates that all reason- or at least restore their standards of living or live- able efforts to resolve such matters have been taken, lihoods, subject to the provisions of paragraph 26 the Borrower may deposit compensation funds as through 36 of this ESS.15 required by the plan (plus a reasonable additional 13.  Compensation standards for categories of land amount for contingencies) into an interest-bearing and fixed assets will be disclosed and applied con- escrow or other deposit account and proceed with sistently. Compensation rates may be subject to the relevant project activities. Compensation placed upward adjustment where negotiation strategies in escrow will be made available to eligible persons are employed. In all cases, a clear basis for calcu- in a timely manner as issues are resolved. lation of compensation will be documented, and Community engagement compensation distributed in accordance with trans- parent procedures. 17. The Borrower will engage with affected com- munities, including host communities, through 14. Where livelihoods of displaced persons are the process of stakeholder engagement described land-based,16 or where land is collectively owned, in ESS10. Decision-making processes related to the Borrower will offer the displaced persons an resettlement and livelihood restoration will include option for replacement land in accordance with options and alternatives from which affected per- paragraph 35(a), unless it can be demonstrated to sons may choose. Disclosure of relevant information the Bank’s satisfaction that equivalent replacement and meaningful participation of affected communi- land is unavailable. As the nature and objectives of ties and persons will take place during the consid- the project may allow, the Borrower will also pro- eration of alternative project designs referred to in vide opportunities to displaced communities and paragraph 11, and thereafter throughout the plan- persons to derive appropriate development bene- ning, implementation, monitoring, and evaluation fits from the project. In the case of affected persons of the compensation process, livelihood restoration under paragraph 10 (c), resettlement assistance will activities, and relocation process. Additional provi- be provided in lieu of compensation for land, as sions apply to consultations with displaced Indig- described in paragraphs 29 and 34 (c). enous Peoples, in accordance with ESS7. 15. The Borrower will take possession of acquired 18. The consultation process should ensure that land and related assets only after compensation in women’s perspectives are obtained and their inter- accordance with this ESS has been made available ests factored into all aspects of resettlement plan- ning and implementation. Addressing livelihood impacts may require intra-household analysis in At the request of affected persons, it may be necessary to 15 cases where women’s and men’s livelihoods are acquire entire land parcels if partial acquisition would render the affected differently. Women’s and men’s prefer- remainder economically unviable, or make the remaining parcel ences in terms of compensation mechanisms, such unsafe or inaccessible for human use or occupancy. as replacement land or alternative access to natural The term “land-based” includes livelihood activities such as 16 rotational cropping and grazing of livestock as well as the har- resources rather than in cash, should be explored. vesting of natural resources. 56 1707130_Environmental_and_Social_Framework.indd 56 5/25/17 8:35 AM  Grievance mechanism or livelihoods, the plan will establish eligibility 19.  The Borrower will ensure that a grievance mech- criteria for affected persons, set out proce- anism for the project is in place, in accordance with dures and standards for compensation, and ESS10 as early as possible in project development incorporate arrangements for consultations, to address specific concerns about compensation, monitoring and addressing grievances; relocation or livelihood restoration measures raised (b) For projects causing physical displacement, by displaced persons (or others) in a timely fash- the plan will set out the additional measures ion. Where possible, such grievance mechanisms relevant to relocation of affected persons; will utilize existing formal or informal grievance (c) For projects involving economic displace- mechanisms suitable for project purposes, supple- ment with significant impacts on livelihoods mented as needed with project-specific arrange- or income generation, the plan will set out ments designed to resolve disputes in an impartial the additional measures relating to livelihood manner. improvement or restoration; and Planning and implementation (d) For projects that may impose changes in land use that restrict access to resources in legally 20. Where land acquisition or restrictions on land designated parks or protected areas or other use are unavoidable, the Borrower will, as part of common property resources on which local the environmental and social assessment, conduct people may depend for livelihood purposes, a census to identify the persons who will be affected the plan will establish a participatory process by the project, to establish an inventory of land and for determining appropriate restrictions on use assets to be affected,17 to determine who will be and set out the mitigation measures to address eligible for compensation and assistance,18 and to adverse impacts on livelihoods that may result discourage ineligible persons, such as opportunistic from such restrictions. settlers, from claiming benefits. The social assess- ment will also address the claims of communities or 22.  The Borrower’s plan will establish the roles and groups who, for valid reasons, may not be present in responsibilities relating to financing and implemen- the project area during the time of the census, such tation, and include arrangements for contingency as seasonal resource users. In conjunction with the financing to meet unanticipated costs, as well as census, the Borrower will establish a cutoff date for arrangements for timely and coordinated response eligibility. Information regarding the cut-off date to unforeseen circumstances impeding progress will be well documented and will be disseminated toward desired outcomes.20 The full costs of reset- throughout the project area at regular intervals in tlement activities necessary to achieve the objec- written and (as appropriate) nonwritten forms and tives of the project are included in the total costs of in relevant local languages. This will include posted the project. The costs of resettlement, like the costs warnings that persons settling in the project area of other project activities, are treated as a charge after the cutoff date may be subject to removal. against the economic benefits of the project; and any net benefits to resettlers (as compared to the 21.  To address the issues identified in the environ- “without-project” circumstances) are added to the mental and social assessment, the Borrower will benefits stream of the project. prepare a plan19 proportionate to the risks and impacts associated with the project: 23.  The Borrower will establish procedures to moni- tor and evaluate the implementation of the plan (a) For projects with minor land acquisition or and will take corrective action as necessary during restrictions on land use, as a result of which implementation to achieve the objectives of this there will be no significant impact on incomes ESS. The extent of monitoring activities will be pro- portionate to the project’s risks and impacts. For all See Annex 1. Such inventory should include a detailed account, 17 projects with significant involuntary resettlement ESS5 derived through a consultative, impartial and transparent pro- impacts, the Borrower will retain competent reset- cess, of the full range of rights held or asserted by affected tlement professionals to monitor the implementa- people, including those based on custom or practice, secondary rights such as rights of access or use for livelihoods purposes, tion of resettlement plans, design corrective actions rights held in common, etc. as necessary, provide advice on compliance with Documentation of ownership or occupancy and compensa- 18 this ESS and produce periodic monitoring reports. tion payments should be issued in the names of both spouses Affected persons will be consulted during the moni- or single heads of households as relevant, and other resettle- ment assistance, such as skills training, access to credit, and toring process. Periodic monitoring reports will be job opportunities, should be equally available to women and adapted to their needs. Where national law and tenure systems do not recognize the rights of women to hold or contract in prop- erty, measures should be considered to provide women as much protection as possible with the objective to achieve equity with For projects with significant resettlement impacts and complex 20 men. mitigation measures, the Borrower may consider preparing a See Annex 1. 19 stand-alone resettlement project for Bank support. 57 1707130_Environmental_and_Social_Framework.indd 57 5/25/17 8:35 AM  prepared and affected persons will be informed to those previously enjoyed, or consistent with pre- about monitoring results in a timely manner. vailing minimum codes or standards, whichever set of standards is higher. If new resettlement sites are 24. Implementation of the Borrower’s plan will be to be prepared, host communities will be consulted considered completed when the adverse impacts regarding planning options, and resettlement plans of resettlement have been addressed in a manner will ensure continued access, at least at existing lev- that is consistent with the relevant plan as well as els or standards, for host communities to facilities the objectives of this ESS. For all projects with sig- and services. The displaced persons’ preferences nificant involuntary resettlement impacts, the Bor- with respect to relocating in preexisting communi- rower will commission an external completion audit ties and groups will be respected wherever possible. of the plan when all mitigation measures have been Existing social and cultural institutions of the dis- substantially completed. The completion audit will placed persons and any host communities will be be undertaken by competent resettlement profes- respected. sionals, will assess whether livelihoods and living standards have been improved or at least restored 28.  In the case of physically displaced persons under and, as necessary, will propose corrective actions to paragraph 10 (a) or (b), the Borrower will offer the meet objectives not yet achieved. choice of replacement property of equal or higher value, with security of tenure, equivalent or better 25. Where the likely nature or magnitude of the characteristics, and advantages of location, or cash land acquisition or restrictions on land use related compensation at replacement cost. Compensation to a project with potential to cause physical and/or in kind should be considered in lieu of cash.21 economic displacement is unknown during project preparation, the Borrower will develop a framework 29.  In the case of physically displaced persons under establishing general principles and procedures paragraph 10 (c), the Borrower will provide arrange- compatible with this ESS. Once the individual proj- ments to allow them to obtain adequate housing ect components are defined and the necessary with security of tenure. Where these displaced per- information becomes available, such a framework sons own structures, the Borrower will compensate will be expanded into one or more specific plans them for the loss of assets other than land, such proportionate to potential risks and impacts. No as dwellings and other improvements to the land, physical and/or economic displacement will occur at replacement cost.22 Based on consultation with until plans required by this ESS have been finalized such displaced persons, the Borrower will provide and approved by the Bank. relocation assistance in lieu of compensation for land sufficient for them to restore their standards B. Displacement of living at an adequate alternative site.23 Physical displacement 30.  The Borrower is not required to compensate or 26. In the case of physical displacement, the Bor- assist those who encroach on the project area after rower will develop a plan that covers, at a minimum, the cutoff date for eligibility, provided the cut-off the applicable requirements of this ESS regardless date has been clearly established and made public. of the number of people affected. The plan will be designed to mitigate the negative impacts of dis- placement and, as warranted, to identify develop- ment opportunities. It will include a resettlement Payment of cash compensation for lost land and other assets 21 budget and implementation schedule, and establish may be appropriate where: (a) livelihoods are not land-based; the entitlements of all categories of affected per- (b) livelihoods are land-based but the land taken for the project sons (including host communities). Particular atten- is a small fraction of the affected asset and the residual land is economically viable; or (c) active markets for land, housing, tion will be paid to gender aspects and the needs and labor exist, displaced persons use such markets, there is of the poor and the vulnerable. The Borrower will sufficient supply of land and housing, and the Borrower has document all transactions to acquire land rights, demonstrated to the satisfaction of the Bank that insufficient replacement land is available. provision of compensation and other assistance Where the Borrower demonstrates that an affected person 22 associated with relocation activities. derives substantial income from multiple illegal rental units, the compensation and other assistance that would otherwise 27.  If people living in the project area are required be available to such person for non-land assets and livelihood to move to another location, the Borrower will: restoration under this paragraph may be reduced with the prior agreement of the Bank, to better reflect the objectives of this ESS. (a) offer displaced persons choices among feasible Relocation of informal settlers in urban areas may involve 23 resettlement options, including adequate replace- trade-offs. For example, the relocated families may gain secu- ment housing or cash compensation; and (b) pro- rity of tenure, but they may lose locational advantages that may vide relocation assistance suited to the needs of be essential to livelihoods, especially among the poor or vulner- able. Changes in location that may affect livelihood opportunities each group of displaced persons. New resettlement should be addressed in accordance with the relevant provisions sites will offer living conditions at least equivalent of this ESS (see in particular paragraph 34 (c)). 58 1707130_Environmental_and_Social_Framework.indd 58 5/25/17 8:35 AM  31.  The Borrower will not resort to forced evictions affected business owners will be compensated of affected persons. “Forced eviction” is defined as for the cost of identifying a viable alternative the permanent or temporary removal against the location; for lost net income during the period will of individuals, families, and/or communities of transition; for the cost of the transfer and from the homes and/or land which they occupy reinstallation of the plant, machinery, or other without the provision of, and access to, appropri- equipment; and for reestablishing commer- ate forms of legal and other protection, including cial activities. Affected employees will receive all applicable procedures and principles in this ESS. assistance for temporary loss of wages and, if The exercise of eminent domain, compulsory acqui- necessary, assistance in identifying alternative sition or similar powers by a Borrower will not be employment opportunities; considered to be forced eviction providing it com- (b) In cases affecting persons with legal rights or plies with the requirements of national law and the claims to land that are recognized or recogniz- provisions of this ESS, and is conducted in a man- able under national law (see paragraph 10 (a) ner consistent with basic principles of due process and (b)), replacement property (e.g., agricul- (including provision of adequate advance notice, tural or commercial sites) of equal or greater meaningful opportunities to lodge grievances and value will be provided, or, where appropriate, appeals, and avoidance of the use of unnecessary, cash compensation at replacement cost; and disproportionate or excessive force). (c) Economically displaced persons who are with- 32.  As an alternative to displacement, the Borrower out legally recognizable claims to land (see may consider negotiating in situ land develop- paragraph 10 (c)) will be compensated for lost ment arrangements by which those to be affected assets other than land (such as crops, irriga- may elect to accept a partial loss of land or local- tion infrastructure and other improvements ized relocation in return for improvements that will made to the land), at replacement cost. Addi- increase the value of their property after develop- tionally, the Borrower will provide assistance in ment. Any person not wishing to participate will be lieu of land compensation sufficient to provide allowed to opt instead for full compensation and such persons with an opportunity to reestab- other assistance as required in this ESS. lish livelihoods elsewhere. The Borrower is not required to compensate or assist persons who Economic displacement encroach on the project area after the cutoff 33. In the case of projects affecting livelihoods or date for eligibility. income generation, the Borrower’s plan will include 35. Economically displaced persons will be pro- measures to allow affected persons to improve, or at vided opportunities to improve, or at least restore, least restore, their incomes or livelihoods. The plan their means of income-earning capacity, production will establish the entitlements of affected persons levels, and standards of living: and/or communities, paying particular attention to gender aspects and the needs of vulnerable seg- (a) For persons whose livelihoods are land-based, ments of communities, and will ensure that these replacement land that has a combination of are provided in a transparent, consistent, and equi- productive potential, locational advantages, table manner. The plan will incorporate arrange- and other factors at least equivalent to that ments to monitor the effectiveness of livelihood being lost will be offered where feasible; measures during implementation, as well as evalu- (b) For persons whose livelihoods are natural ation once implementation is completed. The miti- resource-based and where project-related gation of economic displacement will be considered restrictions on access envisaged in paragraph 4 complete when the completion audit concludes that apply, measures will be implemented to either affected persons or communities have received all allow continued access to affected resources of the assistance for which they are eligible, and or to provide access to alternative resources have been provided with adequate opportunity to ESS5 with equivalent livelihood-earning potential reestablish their livelihoods. and accessibility. Where common property 34. Economically displaced persons who face loss resources are affected, benefits and compen- of assets or access to assets will be compensated sation associated with restrictions on natural for such loss at replacement cost: resource usage may be collective in nature; and (c) If it is demonstrated that replacement land or (a) In cases where land acquisition or restrictions resources are unavailable, the Borrower will on land use affect commercial enterprises,24 offer economically displaced persons options for alternative income earning opportunities, such as credit facilities, skills training, business This includes shops, restaurants, services, manufacturing 24 start-up assistance, employment opportunities, facilities and other enterprises, regardless of size and whether licensed or unlicensed. or cash assistance additional to compensation 59 1707130_Environmental_and_Social_Framework.indd 59 5/25/17 8:35 AM  for assets. Cash assistance alone, however, ESS5—Annex 1. Involuntary resettlement frequently fails to provide affected persons instruments with the productive means or skills to restore livelihoods. 1.  This Annex describes the elements of the plans addressing physical and/or economic displacement 36.  Transitional support will be provided as neces- described in paragraph 21 of ESS5. For purposes sary to all economically displaced persons, based of this Annex, these plans shall be referred to as on a reasonable estimate of the time required to “resettlement plans.” Resettlement plans include restore their income-earning capacity, production measures to address physical and/or economic dis- levels, and standards of living. placement, depending on the nature of the impacts expected from a project. Projects may use alterna- C. Collaboration with other responsible tive nomenclature, depending on the scope of the agencies or subnational jurisdictions resettlement plan—for example, where a project 37.  The Borrower will establish means of collabora- involves only economic displacement, the reset- tion between the agency or entity responsible for tlement plan may be called a “livelihood plan” or project implementation and any other governmen- where restrictions on access to legally designated tal agencies, subnational jurisdictions or entities parks and protected areas are involved, the plan that are responsible for any aspects of land acqui- may take the form of a “process framework.” This sition, resettlement planning, or provision of nec- Annex also describes the framework referred to in essary assistance. In addition, where the capacity paragraph 25 of ESS5. of other responsible agencies is limited, the Bor- rower will actively support resettlement planning, A. Resettlement plan implementation, and monitoring. If the procedures 2. The scope of requirements and level of detail or standards of other responsible agencies do not of the resettlement plan vary with the magnitude meet the relevant requirements of this ESS, the Bor- and complexity of resettlement. The plan is based rower will prepare supplemental arrangements or on up-to-date and reliable information about provisions for inclusion in the resettlement plan to (a) the proposed project and its potential impacts address identified shortcomings. The plan will also on the displaced persons and other adversely specify financial responsibilities for each of the affected groups, (b) appropriate and feasible miti- agencies involved, appropriate timing and sequenc- gation measures, and (c) the legal and institutional ing for implementation steps, and coordination arrangements required for effective implementation arrangements for addressing financial contingen- of resettlement measures. cies or responding to unforeseen circumstances. Minimum elements of a resettlement plan D. Technical and financial assistance 3.  Description of the project. General description of 38.  The Borrower may request technical assistance the project and identification of the project area. from the Bank to strengthen Borrower capacity, 4.  Potential impacts. Identification of: or the capacity of other responsible agencies, for resettlement planning, implementation and moni- (a) the project components or activities that toring. Such forms of assistance may include staff give rise to displacement, explaining why the training, assistance in formulating new regulations selected land must be acquired for use within or policies relating to land acquisition or other the timeframe of the project; aspects of resettlement, financing for assessments (b) the zone of impact of such components or or other investment costs associated with physical activities; or economic displacement, or other purposes. (c) the scope and scale of land acquisition and 39.  The Borrower may request the Bank to finance impacts on structures and other fixed assets; either a component of the main investment caus- (d) any project-imposed restrictions on use of, or ing displacement and requiring resettlement, or a access to, land or natural resources; free-standing resettlement project with appropriate (e) alternatives considered to avoid or minimize cross-conditionalities, processed and implemented displacement and why those were rejected; and in parallel with the investment that causes the dis- placement. The Borrower may also request the Bank (f) the mechanisms established to minimize to finance resettlement even though it is not financ- displacement, to the extent possible, during ing the main investment that makes resettlement project implementation. necessary. 60 1707130_Environmental_and_Social_Framework.indd 60 5/25/17 8:35 AM  5.  Objectives. The main objectives of the resettle- 7.  Legal framework. The findings of an analysis of ment program. the legal framework, covering: 6.  Census survey and baseline socioeconomic stud- (a) the scope of the power of compulsory acquisi- ies. The findings of a household-level census iden- tion and imposition of land use restriction and tifying and enumerating affected persons, and, with the nature of compensation associated with the involvement of affected persons, surveying land, it, in terms of both the valuation methodology structures and other fixed assets to be affected by and the timing of payment; the project. The census survey also serves other (b) the applicable legal and administrative pro- essential functions: cedures, including a description of the rem- edies available to displaced persons in the (a) identifying characteristics of displaced house- judicial process and the normal timeframe for holds, including a description of production such procedures, and any available grievance systems, labor, and household organiza- redress mechanisms that may be relevant to tion; and baseline information on livelihoods the project; (including, as relevant, production levels and income derived from both formal and informal (c) laws and regulations relating to the agencies economic activities) and standards of liv- responsible for implementing resettlement ing (including health status) of the displaced activities; and population; (d) gaps, if any, between local laws and practices (b) information on vulnerable groups or persons covering compulsory acquisition, imposition of for whom special provisions may have to be land use restrictions and provision of resettle- made; ment measures and ESS5, and the mechanisms to bridge such gaps. (c) identifying public or community infrastructure, property or services that may be affected; 8.  Institutional framework. The findings of an analy- (d) providing a basis for the design of, and budget- sis of the institutional framework covering: ing for, the resettlement program; (a) the identification of agencies responsible for (e) in conjunction with establishment of a cutoff resettlement activities and NGOs/CSOs that date, providing a basis for excluding ineligible may have a role in project implementation, people from compensation and resettlement including providing support for displaced assistance; and persons; (f) establishing baseline conditions for monitoring (b) an assessment of the institutional capacity of and evaluation purposes. such agencies and NGOs/CSOs; and As the Bank may deem relevant, additional studies (c) any steps that are proposed to enhance on the following subjects may be required to sup- the institutional capacity of agencies and plement or inform the census survey: NGOs/CSOs responsible for resettlement (g) land tenure and transfer systems, includ- implementation. ing an inventory of common property natural 9.  Eligibility. Definition of displaced persons and resources from which people derive their criteria for determining their eligibility for compen- livelihoods and sustenance, non-title-based sation and other resettlement assistance, including usufruct systems (including fishing, grazing, or relevant cutoff dates. use of forest areas) governed by local recog- nized land allocation mechanisms, and any 10.  Valuation of and compensation for losses. The issues raised by different tenure systems in the methodology to be used in valuing losses to deter- project area; mine their replacement cost; and a description of (h) the patterns of social interaction in the the proposed types and levels of compensation for ESS5 affected communities, including social net- land, natural resources and other assets under local works and social support systems, and how law and such supplementary measures as are nec- they will be affected by the project; and essary to achieve replacement cost for them. (i) social and cultural characteristics of displaced 11.  Community participation. Involvement of dis- communities, including a description of for- placed persons (including host communities, where mal and informal institutions (e.g., community relevant): organizations, ritual groups, nongovernmental organizations (NGOs)) that may be relevant to (a) a description of the strategy for consultation the consultation strategy and to designing and with, and participation of, displaced persons in implementing the resettlement activities. 61 1707130_Environmental_and_Social_Framework.indd 61 5/25/17 8:35 AM