The world Bank sets out responsibilities for assessing, managing and monitoring environmental and

social risks and

impacts associated with each stage of a

project supported by the Bank through

Investment Project Financing, in order to

achieve environmental and social outcomes consistent with the Environmental

and Social Standards (ESSs).

The world Bank recognizes that project-related land acquisition and restrictions on land use can

have adverse impacts on communities and

persons. Therefore its objective is to

1. Avoid involuntary resettlement or, when unavoidable minimize involuntary resettlement by exploring
project design alternatives.(Involuntary resettlement refers to this impacts).

2. To avoid forced eviction.

3. To mitigate unavoidable adverse social and economic impacts from land acquisition or restrictions on
land use by: (a) providing timely compensation for loss of assets at replacement cost

(b) assisting displaced persons in to improve, or at least restore, their livelihoods and living standards, to
pre-displacement levels or to levels that is prevailing prior to the beginning of project implementation,
whichever is higher.

4. To improve the living conditions of poor or vulnerable persons who are physically displaced, through
provision of adequate housing, access to services and facilities, and security of tenure.

5. To conceive and execute resettlement activities as sustainable development programs, providing

sufficient investment resources to enable displaced persons to benefit directly from the project, as the
nature of the project may warrant.

6. To ensure that resettlement activities are planned and implemented with appropriate disclosure of
information, meaningful consultation, and the informed participation of those affected.

This responsibility applies to permanent or temporary physical and economic displacement resulting
from the

following types of land acquisition or restrictions on land use undertaken or imposed in connection with

project implementation:

(a) Land rights or land use rights acquired or

restricted through expropriation or other compulsory procedures in accordance with national law;

(b)

Land rights or land use rights acquired or

restricted through negotiated settlements with property owners or those with legal rights to the land, if
failure to reach settlement would have resulted in expropriation or other compulsory procedures;

(c)

Restrictions on land use and access to natural resources that cause a community or groups within a
community to lose access to resource usage where they have traditional or customary tenure, or
recognizable usage rights. This may

include situations where legally designated protected areas, forests, biodiversity areas or buffer zones
are established in connection with the project

(d) Relocation of people without formal, traditional, or recognizable usage rights, who are

occupying or utilizing land prior to a projectspecific cut-off date;

(e) Displacement of people as a result of project

impacts that render their land unusable or

inaccessible;

(f) Restriction on access to land or use of other

resources including communal property and

natural resources such as marine and aquatic

resources, timber and non-timber forest products, fresh water, medicinal plants, hunting and

gathering grounds and grazing and cropping

areas;

The policy stressed on the following aspects

1. Compensation and benefits for affected persons

2. Community engagement

3. Grievance mechanism

4. Planning and implementation

Compensation and benefits for affected persons

That when land acquisition or restrictions on land use (whether permanent or temporary) cannot be
avoided, the Borrower will offer affected persons compensation at replacement cost, and other
assistance as may be necessary to help them improve or at least restore their standards of living or
livelihoods, subject to the provisions of this ESS.

Compensation standards for categories of land

and fixed assets will be disclosed and applied consistently. Compensation rates may be subject to
upward adjustment where negotiation strategies are employed. In all cases, a clear basis for calculation
of compensation will be documented, and compensation distributed in accordance with transparent
procedures.

Where livelihoods of displaced persons are

land-based, or where land is collectively owned,

the Borrower will offer the displaced persons an

option for replacement land in accordance with this ESS, unless it can be demonstrated to
the Bank’s satisfaction that equivalent replacement land is unavailable. As the nature and objectives of
the project may allow, the Borrower will also provide opportunities to displaced communities and

persons to derive appropriate development benefits from the project. In the case of affected persons

under paragraph 10 (c), resettlement assistance will be provided in lieu of compensation for land, as
described in paragraphs 29 and 34 (c).

The Borrower will take possession of acquired land and related assets only after compensation in
accordance with this ESS has been made available and, where applicable, displaced people have been
resettled and moving allowances have been provided to the displaced persons in addition to
compensation. In addition, livelihood restoration and improvement programs will commence in a timely
fashion in order to ensure that affected persons are sufficiently prepared to take advantage of alternative
livelihood opportunities as the need to do so

arises.

In certain cases there may be significant difficulties related to the payment of compensation to particular
affected persons, for example, where repeated efforts to contact absentee owners have failed, where
project-affected persons have rejected compensation that has been offered to them in

accordance with the approved plan, or where competing claims to the ownership of lands or assets are
subject to lengthy legal proceedings. On an exceptional basis, with prior agreement of the Bank, and
where the Borrower demonstrates that all reasonable efforts to resolve such matters have been taken,
the Borrower may deposit compensation funds as required by the plan (plus a reasonable additional
amount for contingencies) into an interest-bearing escrow or other deposit account and proceed with
the relevant project activities. Compensation placed

in escrow will be made available to eligible persons in a timely manner as issues are resolved.

Community engagement

The Borrower will engage with affected communities, including host communities, through

the process of stakeholder engagement described

in ESS10. Decision-making processes related to

resettlement and livelihood restoration will include

options and alternatives from which affected persons may choose. Disclosure of relevant information

and meaningful participation of affected communities and persons will take place during the
consideration of alternative project designs referred to in

paragraph 11, and thereafter throughout the planning, implementation, monitoring, and evaluation

of the compensation process, livelihood restoration

activities, and relocation process. Additional provisions apply to consultations with displaced Indigenous
Peoples, in accordance with ESS7.

18. The consultation process should ensure that

women’s perspectives are obtained and their interests factored into all aspects of resettlement planning
and implementation. Addressing livelihood

impacts may require intra-household analysis in

cases where women’s and men’s livelihoods are

affected differently. Women’s and men’s preferences in terms of compensation mechanisms, such

as replacement land or alternative access to natural

resources rather than in cash, should be explored.

Grieviance mechanism

The Borrower will ensure that a grievance mechanism for the project is in place, in accordance with

ESS10 as early as possible in project development

to address specific concerns about compensation,

relocation or livelihood restoration measures raised

by displaced persons (or others) in a timely fashion. Where possible, such grievance mechanisms

will utilize existing formal or informal grievance

mechanisms suitable for project purposes, supplemented as needed with project-specific arrangements
designed to resolve disputes in an impartial

manner.

Planning and implementation

Where land acquisition or restrictions on land

use are unavoidable, the Borrower will, as part of

the environmental and social assessment, conduct

a census to identify the persons who will be affected

by the project, to establish an inventory of land and

assets to be affected,17 to determine who will be

eligible for compensation and assistance,18 and to

discourage ineligible persons, such as opportunistic

settlers, from claiming benefits. The social assessment will also address the claims of communities or

groups who, for valid reasons, may not be present in

the project area during the time of the census, such

as seasonal resource users. In conjunction with the

census, the Borrower will establish a cutoff date for

eligibility. Information regarding the cut-off date

will be well documented and will be disseminated

throughout the project area at regular intervals in

written and (as appropriate) nonwritten forms and

in relevant local languages. This will include posted

warnings that persons settling in the project area

after the cutoff date may be subject to removal.

21. To address the issues identified in the environmental and social assessment, the Borrower will

prepare a plan19 proportionate to the risks and

impacts associated with the project:

(a) For projects with minor land acquisition or

restrictions on land use, as a result of which

there will be no significant impact on incomes

or livelihoods, the plan will establish eligibility

criteria for affected persons, set out procedures and standards for compensation, and

incorporate arrangements for consultations,

monitoring and addressing grievances;

(b) For projects causing physical displacement,

the plan will set out the additional measures

relevant to relocation of affected persons;

(c) For projects involving economic displacement with significant impacts on livelihoods

or income generation, the plan will set out

the additional measures relating to livelihood

improvement or restoration; and

(d) For projects that may impose changes in land

use that restrict access to resources in legally

designated parks or protected areas or other

common property resources on which local

people may depend for livelihood purposes,

the plan will establish a participatory process

for determining appropriate restrictions on use

and set out the mitigation measures to address

adverse impacts on livelihoods that may result

from such restrictions.

22. The Borrower’s plan will establish the roles and

responsibilities relating to financing and implementation, and include arrangements for contingency
financing to meet unanticipated costs, as well as

arrangements for timely and coordinated response

to unforeseen circumstances impeding progress

toward desired outcomes.

20 The full costs of resettlement activities necessary to achieve the objec

tives of the project are included in the total costs of

the project

. The costs of resettlement, like the costs

of other project activities, are treated as a charge

against the economic benefits of the project; and

any net benefits to resettlers (as compared to the

“without-project” circumstances) are added to the

benefits stream of the project.

23. The Borrower will establish procedures to monitor and evaluate the implementation of the plan

and will take corrective action as necessary during

implementation to achieve the objectives of this

ESS. The extent of monitoring activities will be proportionate to the project’s risks and impacts. For all

projects with significant involuntary resettlement

impacts, the Borrower will retain competent resettlement professionals to monitor the implementation
of resettlement plans, design corrective actions

as necessary, provide advice on compliance with

this ESS and produce periodic monitoring reports.

Affected persons will be consulted during the monitoring process. Periodic monitoring reports will be
prepared and affected persons will be informed

about monitoring results in a timely manner.

24. Implementation of the Borrower’s plan will be

considered completed when the adverse impacts

of resettlement have been addressed in a manner

that is consistent with the relevant plan as well as

the objectives of this ESS. For all projects with significant involuntary resettlement impacts, the Borrower
will commission an external completion audit

of the plan when all mitigation measures have been

substantially completed. The completion audit will

be undertaken by competent resettlement professionals, will assess whether livelihoods and living

standards have been improved or at least restored

and, as necessary, will propose corrective actions to

meet objectives not yet achieved.

25. Where the likely nature or magnitude of the

land acquisition or restrictions on land use related

to a project with potential to cause physical and/or

economic displacement is unknown during project

preparation, the Borrower will develop a framework

establishing general principles and procedures

compatible with this ESS. Once the individual project components are defined and the necessary

information becomes available, such a framework

will be expanded into one or more specific plans

proportionate to potential risks and impacts. No

physical and/or economic displacement will occur

until plans required by this ESS have been finalized

and approved by the Bank

In the case of physically displaced persons under

paragraph 10 (a) or (b), the Borrower will offer the

choice of replacement property of equal or higher

value, with security of tenure, equivalent or better

characteristics, and advantages of location, or cash

compensation at replacement cost. Compensation

in kind should be considered in lieu of cash.

21

29. In the case of physically displaced persons under

paragraph 10 (c), the Borrower will provide arrangements to allow them to obtain adequate housing

with security of tenure. Where these displaced persons own structures, the Borrower will compensate

them for the loss of assets other than land, such

as dwellings and other improvements to the land,

at replacement cost.

22 Based on consultation with

such displaced persons, the Borrower will provide

relocation assistance in lieu of compensation for

land sufficient for them to restore their standards

of living at an adequate alternative site.

23

30. The Borrower is not required to compensate or

assist those who encroach on the project area after

the cutoff date for eligibility, provided the cut-off

date has been clearly established and made public.

The Borrower will not resort to forced evictions

of affected persons. “Forced eviction” is defined as

the permanent or temporary removal against the

will of individuals, families, and/or communities

from the homes and/or land which they occupy

without the provision of, and access to, appropriate forms of legal and other protection, including

all applicable procedures and principles in this ESS.

The exercise of eminent domain, compulsory acquisition or similar powers by a Borrower will not be

considered to be forced eviction providing it complies with the requirements of national law and the

provisions of this ESS, and is conducted in a manner consistent with basic principles of due process

(including provision of adequate advance notice,

meaningful opportunities to lodge grievances and

appeals, and avoidance of the use of unnecessary,

disproportionate or excessive force).

32. As an alternative to displacement, the Borrower

may consider negotiating in situ land development arrangements by which those to be affected

may elect to accept a partial loss of land or localized relocation in return for improvements that will

increase the value of their property after development. Any person not wishing to participate will be

allowed to opt instead for full compensation and

other assistance as required in this ESS.

Economic displacement

33. In the case of projects affecting livelihoods or

income generation, the Borrower’s plan will include

measures to allow affected persons to improve, or at

least restore, their incomes or livelihoods. The plan

will establish the entitlements of affected persons

and/or communities, paying particular attention to

gender aspects and the needs of vulnerable segments of communities, and will ensure that these

are provided in a transparent, consistent, and equitable manner. The plan will incorporate arrangements
to monitor the effectiveness of livelihood

measures during implementation, as well as evaluation once implementation is completed. The

mitigation of economic displacement will be considered

complete when the completion audit concludes that

affected persons or communities have received all

of the assistance for which they are eligible, and

have been provided with adequate opportunity to

reestablish their livelihoods.

34. Economically displaced persons who face loss

of assets or access to assets will be compensated

for such loss at replacement cost:

(a) In cases where land acquisition or restrictions

on land use affect commercial enterprises, affected business owners will be compensated

for the cost of identifying a viable alternative

location; for lost net income during the period

of transition; for the cost of the transfer and

reinstallation of the plant, machinery, or other

equipment; and for reestablishing commercial activities. Affected employees will receive

assistance for temporary loss of wages and, if

necessary, assistance in identifying alternative

employment opportunities;

(b) In cases affecting persons with legal rights or

claims to land that are recognized or recognizable under national law (see paragraph 10 (a)

and (b)), replacement property (e.g., agricultural or commercial sites) of equal or greater

value will be provided, or, where appropriate,

cash compensation at replacement cost; and

(c) Economically displaced persons who are without legally recognizable claims to land (see

paragraph 10 (c)) will be compensated for lost

assets other than land (such as crops, irrigation infrastructure and other improvements

made to the land), at replacement cost. Additionally, the Borrower will provide assistance in

lieu of land compensation sufficient to provide

such persons with an opportunity to reestablish livelihoods elsewhere. The Borrower is not

required to compensate or assist persons who

encroach on the project area after the cutoff

date for eligibility.