Guidance note

EBRD Performance Requirement 5:

Land acquisition, restrictions
on land use and involuntary
resettlement
March 2023
EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

Disclaimer
This document contains references to good practices and should be interpreted bearing in mind the Environmental and Social
Policy adopted by the EBRD; it is not a compliance document. It does not alter or amend EBRD policies and does not create
any new or additional obligations for any person or entity. In case of any inconsistency or conflict between this document and
the Environmental and Social Policy adopted by the EBRD as amended from time to time, such policy shall prevail. Questions
of interpretation shall be addressed solely in respect of the Environmental and Social Policy.

The information and opinions within this document are for information purposes only. No representation, warranty or
undertaking expressed or implied is made in respect of any information contained herein or the completeness, accuracy, or
currency of the content herein. The EBRD does not assume responsibility or liability with respect to the use of or failure to use
or reliance on any information, methods, processes, conclusions, or judgments contained herein, and expressly disclaims any
responsibility or liability for any loss, cost, or other damages arising from or relating to the use of or reliance on this document.
In making this document available, the EBRD is not suggesting or rendering legal or other professional services for any person
or entity. Professional advice of qualified and experienced persons should be sought before acting (or refraining from acting) in
accordance with the guidance herein.

This document does not constitute or imply a waiver, renunciation or other modification, either express or implied, of any of
the privileges, immunities and exemptions granted to the EBRD under the Agreement Establishing the European Bank for
Reconstruction and Development, international convention or any applicable law. Certain parts of this document may link to
external internet sites and other external internet sites may link to this publication. The EBRD does not accept responsibility
for any of the content on these external internet sites.

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Contents
1. Introduction and objectives 5
1.1. Purpose of this guidance note 5
1.2. Key changes since the 2014 PR5 6
1.3. Key objectives of PR5 6
1.4. Terminology: compensation, resettlement, livelihood restoration 6
2. Applicability and scope of PR5 8
2.1. Applicability of PR5 8
2.2. Non-applicability of PR5 8
2.2.1. Overview 8
2.2.2. Voluntary transactions (or “willing buyer-willing seller”) 8
2.2.3. Refugees, IDPs and victims of natural disasters 8
2.3. Impacts on livelihoods unrelated to land acquisition 8
2.4. Scope of PR5 9
3. Requirements 10
3.1. General requirements 10
3.1.1. Project categorisation 10
3.1.2. Process 10
3.1.3. Avoidance and minimisation of displacement 11
3.1.4. Forced evictions 12
3.1.5. Negotiated settlements 13
3.2. Consideration of vulnerable groups 14
3.2.1. General 14
3.2.2. Vulnerability criteria 14
3.2.3. Vulnerability analysis and pre-identification of potentially vulnerable people 15
3.2.4. Identification of vulnerable people 15
3.2.5. Assistance for vulnerable people 15
3.2.6. Livelihood and standard-of-living restoration for vulnerable people 15
3.3. Consideration of gender aspects 15
3.3.1. General 15
3.3.2. Gender aspects in socio-economic baseline surveys 16
3.3.3. Gender aspects in consultation 17
3.3.4. Gender aspects in devising compensation entitlements 17
3.3.5. Gender aspects in livelihood restoration 18
3.4. Baseline surveys and cut-off date 18
3.4.1. General 18
3.4.2. Socio-economic surveys 18
3.4.3. Census and inventory of affected assets 19
3.4.4. Cut-off date 19
3.4.5. Data management 21
3.5. Valuation at full replacement cost 21
3.5.1. Definition 21
3.5.2. Replacement cost in functional real-estate markets 21
3.5.3. Replacement cost in formative or non-functional real-estate markets 22
3.5.4. Should future or current value be considered? 22
3.5.5. Valuation of inadequate housing 22
3.5.6. Transaction costs 23
3.5.7. Updating full replacement cost during the project cycle 23

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3.6. Valuation of businesses 23

3.7. Other valuation issues 24
3.7.1. Loss in value of land not subject to project land acquisition 24
3.7.2. Valuation of restrictions on land 24
3.8. Compensation entitlements 24
3.8.1. Eligibility 24
3.8.2. Overview of entitlements for the three categories of project-affected person 24
3.8.3. Project-affected persons with recognisable rights in category (i) 26
3.8.4. Informal users in category (iii) 26
3.8.5. Timing of payments 27
3.8.6. Cash versus in kind 27
3.8.7. Entitlements in an expropriation process 28
3.8.8. Voluntary land donations 28
3.8.9. Compensation for community-held resources 29
3.8.10. Community facilities, utilities and public amenities 29
3.9. Stakeholder engagement and grievance management 29
3.9.1. Stakeholder engagement 29
3.9.2. Safety of stakeholder engagement and remote engagement 29
3.9.3. Information disclosure 30
3.9.4. Grievance mechanism 30
3.10. Resettlement planning documentation 31
3.10.1. Applicability of the requirement for a resettlement plan 31
3.10.2. Title of resettlement plan 31
3.10.3. Contents of the resettlement plan 31
3.10.4. Resettlement framework 31
3.10.5. Independent preparation of resettlement plans (or frameworks) 32
3.10.6. Changes to resettlement plans 32
3.10.7. Formal endorsement of resettlement plans 32
3.10.8. EBRD disclosure of resettlement planning documents 32
3.11. Organisational capacity and commitment 32
3.12. Government-managed land acquisition and resettlement 32
3.12.1. Background 32
3.12.2. EBRD client obligations in government-managed land acquisition 33
3.13. Land acquisition and resettlement undertaken prior to the EBRD’s involvement 34
3.13.1. Principles 34
3.13.2. Audit and corrective action plan 34
3.14. Monitoring and evaluation 35
3.14.1. Overview 35
3.14.2. Internal monitoring and reporting to the EBRD 35
3.14.3. Land acquisition and resettlement execution report 35
3.14.4. External compliance reviews 36
3.14.5. External completion audit 36
3.15. Physical displacement and resettlement assistance 36
3.15.1. Physical displacement also entails economic displacement 36
3.15.2. Physical resettlement strategies 37
3.15.3. Security of tenure 37
3.15.4. Adequate housing 37
3.15.5. Resettlement assistance 37
3.15.6. Impacts of physical resettlement on host communities 38
3.15.7 Contents of the resettlement plan in case of physical displacement 38

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3.16. Economic displacement and livelihood improvement or restoration 38

3.16.1. Overview 38
3.16.2. Examples of livelihood restoration activities in typical situations 39
3.16.3. Specifics in the case of informal users 40
3.17. Impacts on indigenous groups 40
Appendix 1. Glossary 41
Appendix 2. Frequently asked questions 44
Appendix 3. Resettlement plan – template outline 47
Appendix 4. Resettlement plan for projects with limited impact – template outline 50
Appendix 5. Resettlement framework – sample outline 51
Appendix 6. Acronyms 53
Appendix 7. Additional resources 54
References 55

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1. Introduction and objectives

1.1. Purpose of this guidance note
The European Bank for Reconstruction and Development This note provides EBRD clients and stakeholders with
(EBRD) is committed to promoting environmentally sound practical guidance on interpreting and implementing PR5.
and sustainable development in the full range of its It is intended as a reader-friendly guide that will enable
activities, pursuant to the Agreement Establishing the Bank.1 EBRD clients, their consultants and other stakeholders to
The Environmental and Social Policy (ESP) is one of the understand and interpret its requirements.
Bank’s three good governance policies and a key document This guidance note does not supersede the Resettlement
that guides this commitment to promoting “environmentally Guidance and Good Practice note published by the EBRD
sound and sustainable development” in the full range in 2016, which remains valid, providing valuable practical
of its investment and technical cooperation activities.2 guidance and examples useful to those involved in projects
The EBRD’s Board of Directors approved the 2019 ESP and with resettlement.
its 10 related Performance Requirements (PRs) on 25 April
2019. They apply to projects started after 1 January 2020. In case of any inconsistency or conflict between this
document and the previous guidance, the PR5 will prevail
The EBRD’s 2019 Performance Requirement 5 (PR5) will prevail. Questions of interpretation will be addressed
on land acquisition, restrictions on land use and solely in respect of this policy.
involuntary resettlement recognises that “unless properly
managed, involuntary resettlement may result in long-
term hardship and impoverishment for affected persons
and communities”. 3 International financial institutions
such as the EBRD often regard resettlement as one of
the main risks to projects: the livelihoods, health, well-
being and human rights of real people are at stake. This
is why, like other, similar multilateral institutions, the
EBRD has dedicated a Performance Requirement, PR5,
to the management of displacement impacts, involuntary
resettlement and livelihood restoration.

1 See EBRD (1990), Article 2.1(vii).

2 See EBRD (2019).
3 See EBRD (2019), p. 27.

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1.2. Key changes since the 2014 PR4 1.3. Key objectives of PR5
The 2019 version of PR5 has a more user-friendly structure, The key objectives of PR5 are stated in paragraph 4 and are
clarifies the requirements and provides additional content. in line with the overall “mitigation hierarchy” required by the
The general objective of PR5, however, remains the same ESP and PR1:
– to protect affected people, projects and the Bank against • Avoid displacement and, where this is not possible,
the social and economic risks of displacement. Key changes implement additional measures to minimise, mitigate
include the following: and, as a last resort, compensate for potential residual
• PR5 was restructured to ensure that the requirements adverse impacts (see section 3.1.3).
flow more logically, in line with key steps and tasks in the • Forced evictions are prohibited, in line with international
resettlement planning and implementation process. law (see section 3.1.4).
• A new section (paragraph 8) was introduced to clarify • Unavoidable residual displacement impacts have to be
what is not within the scope of PR5, including, for mitigated by (i) timely compensation at full replacement
example, the settlement of internally displaced people cost and (ii) ensuring meaningful consultation in
(IDPs) resulting directly from conflict. Similarly, it clarifies accordance with PR10.5
that impacts to livelihoods not caused by land acquisition
• Livelihoods have to be improved or, at a minimum,
fall within the scope of PR14 and that the mitigation
restored (see section 3.16).
of such impacts on livelihoods is to be planned and
undertaken in accordance with the principles of PR5 • Living conditions have to be improved by the provision
(paragraph 62). of adequate housing with security of tenure (see section
3.15.4).
• A clearer distinction was made between compensation
(in respect of lost assets) and livelihood restoration (in 1.4. Terminology: compensation, resettlement,
respect of lost livelihoods). livelihood restoration
• The definition of “forced evictions” was clarified and This guidance note includes a detailed glossary (Appendix 1)
their prohibition was strengthened (paragraph 13 and of key terms used in PR5 and in the note itself. The following
footnote 53). table provides clarification on the following key terms:
• Requirements related to vulnerable groups (paragraph
• Compensation – which is meant to offset the loss of
15) were strengthened and clarified.
physical assets such as land or buildings.
• A new gender section (paragraphs 16 to 19) was added
• Livelihood restoration – which addresses economically
to consolidate and clarify previously existing provisions.
displaced people with measures meant to improve or
• New requirements pertaining to voluntary land donations restore their livelihoods and income sources.
were introduced (paragraph 35).
• Resettlement – which covers all activities PR5 requires
• Requirements relating to past land acquisitions (prior to where either physical assets or livelihoods are affected
the EBRD’s involvement) were clarified (paragraph 7). (including compensation, physical relocation of physically
• Requirements for the preparation and disclosure of displaced people and livelihood restoration). In short,
resettlement planning documentation were clarified resettlement can be defined as the sum of compensation
(paragraphs 41 to 44). and livelihood restoration.
• The roles and responsibilities of EBRD private-sector
borrowers were clarified in the case of government-
managed land acquisition (paragraphs 46 to 48).
• Monitoring and evaluation requirements were also
clarified (paragraphs 49 to 53).

4 See EBRD (2019), p. 13.

5 See EBRD (2019), p. 47.

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Table 1: Compensation, livelihood restoration, resettlement

Question Compensation Livelihood restoration Resettlement

What is it? Compensation is what a project Livelihood restoration includes Involuntary resettlement refers to
has to provide (in cash or in kind) measures meant to support both physical displacement and
to offset loss of assets such as economically displaced people in economic displacement impacts, as
buildings, land, trees and crops. restoring their livelihoods. well as to the processes to mitigate
and compensate for these impacts.
Resettlement is considered
involuntary when affected persons
or communities do not have the
right to refuse land acquisition
or restrictions on land use, other
assets and natural resources,
even if compulsory acquisition is
used only as a last resort after a
negotiated process.

What is it meant Loss of assets. Loss of livelihood (also called Loss of shelter/residential buildings
to mitigate? economic displacement). caused by physical displacement
and loss of livelihoods caused by
economic displacement.

Examples A piece of agricultural land, with A farmer’s income is affected by A house has to be removed to
trees on it, has to be purchased loss of land and of the ability to farm make way for a road (physical
to build a pumping station (loss of on that land. displacement) and the homeowner’s
assets). A certain sum of money The operator and employees livelihood is affected (economic
will be paid to the owner to offset of a roadside restaurant are displacement). The homeowner is
this loss (compensation), or the economically affected by road provided with a replacement house
land and trees or structures can be widening that requires the removal and supported through livelihood
replaced in kind. of that restaurant. restoration activities.
In both cases, measures will
have to be devised to support
affected people, not only by
offsetting the physical loss through
compensation, but also by restoring
their livelihoods.

What drives it? Local law typically has detailed International standards, International standards,
provisions in relation to such as PR5. such as PR5.
compensation of assets.
Is it an obligation or It is an obligation as long as there It is an obligation as long as there is It is an obligation as long as there
a “nice to have”? is land acquisition or restrictions on economic displacement. is either physical or economic
land use and natural resources. displacement.
Is it part of community No No No
development?
Company- or project-provided community development or social investment programmes with an aim to bring
additional benefits to communities for various reasons (that is, to obtain a “social licence to operate”), but
these are beyond the mitigation and compensation measures required in PR5. Impacts of land acquisition
should be avoided or mitigated, if not compensated, to comply with PR5 requirements. However, in some cases,
community development projects can also help to enhance the livelihoods of people affected by land acquisition
in addition to livelihood restoration measures.

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2. Applicability and scope of PR5

2.1. Applicability of PR5 • where people are displaced as a direct result of natural
The vast majority of projects with land acquisition trigger disasters, conflict, crime or violence, such as refugees or
IDPs (see details in section 2.2.3).
PR5. The conditions under which it applies are spelled out
in paragraphs 6 and 7 of PR5. PR5 applies to projects that 2.2.2. Voluntary transactions
entail physical or economic displacement regardless of their Purely voluntary transactions (or “willing buyer–willing seller”)
magnitude and whether permanent or temporary, resulting are those where the affected landowner can refuse the
from one of the following types of transaction: transaction (for example, where the planned facility can easily
be relocated to another land plot). PR5 does not apply to
• land rights and/or assets acquired through expropriation
voluntary transactions, but the EBRD still expects reasonable
or other compulsory procedures
compensation to be paid.
• land rights and/or assets acquired through negotiated
settlements, if expropriation or other compulsory Negotiated transactions are not voluntary if the project
processes can be initiated in case negotiation fails sponsor can at some point resort to expropriation or another
similar compulsory process to acquire land, either due to the
• restrictions that result in people experiencing loss of
unwillingness of landowners to reach an agreement or to legal
access to land, assets, natural resources or livelihoods, and/or administrative technicalities, even if expropriation is
irrespective of whether such rights of restriction are eventually not used. In such cases, PR5 does apply.
acquired through negotiation, expropriation, compulsory
purchase or by means of government regulation Where transactions are purely voluntary, the livelihood
• relocation of people without formal, traditional or impacts on land users other than the land owner (even if
recognisable usage rights under national laws, who are they are informal) need to be considered, as the presence
of such users would trigger the application of PR5 (see
occupying or utilising land prior to the cut-off date
PR5, paragraph 8 and FAQ 3). This applies regardless of the
• displacement of people as a result of project impacts regime of tenure, whether formal or informal. For example,
that render their land or assets unusable or inaccessible. if there are herders informally using a plot of land that is
PR5 also applies to any physical displacement or economic voluntarily sold to the project by its owner, PR5 will apply,
displacement carried out by the client or a government agency and adequate livelihood restoration measures will have to
for purposes relevant to a project prior to EBRD involvement. be developed for the herders.
For projects to which PR5 applies, all requirements of
Note that voluntary transactions (where compensation is paid)
paragraphs 1 to 54 apply. Requirements contained in
differ from voluntary land donations (where no compensation
paragraphs 55 to 60 apply only to projects that entail physical
is paid), addressed in section 3.8.8.
displacement, while requirements in paragraphs 61 to 63
apply only to projects that cause economic displacement. 2.2.3. Refugees, IDPs and victims of natural disasters
In the early stages of project development, and unless In cases where there has been displacement as a result of
convincing information is provided to demonstrate non- conflict, natural disasters, crime or violence prior to project-
applicability per the conditions below, it is safe to assume that induced displacement, the involuntary resettlement process
PR5 applies to any project that involves land expropriation will be guided by the United Nations’ Guiding Principles on
Internal Displacement.6
or acquisition and/or restrictions on people’s access to
resources, thereby affecting their livelihoods. 2.3. Impacts on livelihoods unrelated to land
acquisition
2.2. Non-applicability of PR5
Where project impacts on livelihoods result from
2.2.1. Overview environmental and or construction impacts unrelated to land
PR5 does not apply in the following cases: acquisition, temporary occupation or restrictions on resource
use, such impacts will be addressed in accordance with PR1
• where a project entails no acquisition or access to, or requirements. However, specific compensation and livelihood
restrictions on land and/or assets and/or people living on restoration measures for such impacts will be undertaken in
it (and, as a result, no impact on livelihoods depending on accordance with the principles of PR5 (see PR5, paragraph
this land or assets) 62). For example:
• where a project entails impacts on land and/or assets,
• farming or other activities, such as beekeeping, affected
if and only if all transactions are voluntary (also called
by the fallout from industrial emissions or dust generated
“willing buyer–willing seller”) and if, in addition, no land
by construction activities along a road
user (other than the landowner) has their livelihood
affected as a result of the transaction (see PR5 • shops in a village centre that might be affected by a road
by-pass that reduces their access to potential clients
paragraph 8 and details in section 2.2.2)
• waste pickers that would be affected by the closure of an
existing dumpsite (see PR5, paragraph 6).

6 See UN OCHA (2001).

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Impacts on artisanal miners (minerals, sand, aggregates) • Economic or physical displacement of people as a result
affected by a project are to be addressed in accordance with of project impacts that render their land, assets or
PR5. In all of the above cases, the project7 would have to resources unusable or inaccessible. Typical examples
develop livelihood restoration measures in line with PR5. include:
2.4. Scope of PR5 ○ residents that have to be relocated due to
environmental impacts (such as noise) exceeding
PR5 covers the full range of impacts on people and their acceptable standards for residency (for instance,
livelihoods resulting from land acquisition (including, but near a high-speed rail line)
not limited to, land expropriation) or restrictions on access
to resources and assets. In addition to permanent and ○ fishermen that have to move from a landing site due
temporary land acquisition from rightful owners (which is to dam construction in continental waters or due to
typically addressed by local law), it also includes the following port construction (and/or associated ship
types of land acquisition or restrictions: manoeuvring areas) in sea waters
○ temporary or permanent restrictions on access
• The displacement of people without formal, traditional to businesses caused by road or other construction
or recognisable usage rights under national law, who are activities
occupying or utilising land, assets or natural resources
○ waste pickers on dump sites
prior to the cut-off date. Typical examples include:
○ gatherers, herders, hunters using natural resources
○ persons using public land informally for agricultural
on communal or state-owned land (forest,
purposes, including animal grazing; for example,
meadows, wetlands) affected by a project.
affected persons using land based on an
unregistered written or verbal agreement with • Restrictions on land use that result in a loss of access to
a municipal authority, or high mountain pasture land, assets, natural resources or livelihoods, irrespective
land used informally and seasonally by transhumant of the process to acquire the rights to impose restrictions
herders (a situation that is relatively common in (be it through negotiation, expropriation, compulsory
Caucasus and Northern African countries) purchase or government regulation). Typical examples
include:
○ informal tenants or sharecroppers of private land
○ rights of way required for the construction of linear
○ people using land based on an informal customary
or other projects (transmission lines, pipelines),
regime, a situation commonly encountered in
where land is occupied temporarily during
Northern Africa, Türkiye, the Caucasus and
construction and a permanent restriction is then
Central Asia
imposed during operation (for example, no building
○ informal renters or other occupiers of dwellings or trees)
affected by a project, which would not typically
○ restrictions on use in “sanitary protection zones”
be eligible for compensation or assistance under
around potentially hazardous industrial facilities,
local legislation
water storage reservoirs and other facilities; this
○ fishermen in near-shore or continental waters, may result in the loss of value of assets if building or
who may be registered as businesses but have residency are prohibited, or even in the loss of the
no registered right to the use of a certain body of assets themselves if they are not usable any longer
water, which is usually deemed state property
○ restrictions on use imposed in or around biodiversity
○ gatherers of natural products (mushrooms, berries, conservation areas, such as national parks and
grass, straw, fuel or wood) reserves
○ temporary users of a given space, which could ○ severance of access to certain lands or natural
include beekeepers moving from one area to resources, with associated impacts on livelihoods
another, transhumant or nomadic herders, or mobile (for example, a linear project, such as a high-speed
communities such as the Roma in Europe. railway, which is fenced off for safety reasons,
preventing community access to grazing areas).

7 Whether by land acquisition or indirectly, as the prohibition of

artisanal mining is enforced by the state when a new mining
project takes place.

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3. Requirements
3.1. General requirements For category B projects, early resettlement scoping is also
3.1.1. Project categorisation necessary to drive further planning and, in particular, to
trigger the impact avoidance and minimisation process
Displacement is one of the criteria driving project described in section 3.1.3.
categorisation per the EBRD ESP. “Projects which may
involve significant involuntary resettlement or economic 3.1.2.2. Baseline studies
displacement” are categorised as “A”, as established in The baseline studies required by PR5, paragraph 10 are
the EBRD ESP (EBRD 2019, Appendix 2). “Significant” addressed in further detail in section 3.4.
here is context-specific and will be assessed by the EBRD
on a case-by-case basis, taking into account project and 3.1.2.3. Engaging resettlement experts
displacement risks. For projects that entail “significant” resettlement, per
Appendix 2 to the ESP, the EBRD requires the project to
However, all PR5 principles apply equally to category A and
engage independent resettlement experts to support
category B projects. As long as projects entail physical or
the resettlement planning process and to prepare
economic displacement, PR5 is deemed applicable.
associated documents. Where there are no local qualified
3.1.2. Process resettlement experts with experience of international
3.1.2.1. Integration of resettlement scoping and planning standards, the expertise of international specialists will
into the ESIA process be needed. In such cases, international specialists will
have to be supported by local experts familiar with local
For category A projects, which require an environmental regulations and social conditions.
and social impact assessment (ESIA), it is desirable (but
not mandated) to integrate the resettlement scoping In addition, many jurisdictions require that valuations be
and planning process into the ESIA (or even into a pre- undertaken by independent and locally certified valuers.
feasibility stage prior to the ESIA). This has a number of Certain tasks that are part of the resettlement planning
advantages, most notably, allowing a comprehensive and process can be undertaken directly by the project or
holistic review of project design and siting alternatives (see by a state agency responsible for land acquisition (for
section 3.1.3) that integrate all aspects, including both example, some components of survey processes or
environmental considerations and potential displacement. aspects of stakeholder engagement), but preferably
under the supervision of independent, experienced
However, this is not always possible. Specifically, some experts hired by the project developer.
jurisdictions require a project to be permitted first – which
would typically require an ESIA (or an environmental For projects that entail no “significant” resettlement
impact assessment (EIA) – so that a Declaration of Public in the sense of the ESP, it may be acceptable for the
Interest can then be passed. This is the necessary legal project developer to undertake the resettlement planning
trigger for statutory asset and valuation surveys related process directly and prepare resettlement planning
to resettlement planning. In such cases, clients must documents in line with PR5, as long as they have
engage with the EBRD to identify a mutually agreeable sufficient capacity. This will need to be confirmed by the
solution. Such situations would typically require a client EBRD prior to the preparation of resettlement planning
to provide the EBRD with an update of the permitted documents.
ESIA (for example, in the form of a “supplementary lender
3.1.2.4. Resettlement planning documents
information package”)8 when the resettlement planning
process is complete and the resettlement plan can be The resettlement planning documents required by
submitted. Some aspects of the resettlement planning PR5, paragraph 11 are addressed in further detail in
process may then need to be “retrofitted” into this section 3.10.
updated ESIA, including, for example, the environmental
assessment of resettlement site development.

8 Which may cover other aspects/issues/impacts not addressed

in local regulation but required by the EBRD’s Performance
Requirements.

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3.1.3. Avoidance and minimisation of displacement Depending on the timelines of ESIA and resettlement plan
Poorly planned and implemented physical and economic preparation, the summarised outcomes of this assessment
displacement usually poses a high risk to affected people can be presented either in the ESIA as part of the overall
(for example, losing one’s home or livelihood) and projects assessment of alternatives, or in the resettlement plan.
(for example, delayed schedules or financial overruns). An important part of this assessment is a preliminary
Whenever a project causes potential displacement, the estimate of the cost of resettlement, compensation and
first duty of the EBRD Client is to seek avoidance of this livelihood restoration, which should be assessed early in
displacement, consistent with the mitigation hierarchy the project design phase. Mitigation and compensation
mandated by PR1. As stated in PR5, “avoidance is the for physical and economic displacement can be costly,
preferred approach”. Experience shows that alternative and these assessments need to be reviewed with utmost
project designs are often possible, albeit too often attention to ensure that a potential underestimation (often
discarded or not considered due to insufficient or the case) does not bias the comparison of alternatives.
inadequate scrutiny. Key reasons for this may include: The process to avoid and minimise displacement is
• insufficient consultation with potentially affected people usually iterative and involves the following steps in
chronological order:
• old habits, whereby mainly engineering and financial
considerations drive the project design • avoidance:
• late engagement with resettlement experts, after the ○ high-level identification of potential sites, routes,
design has been completed or already permitted designs and comparison, with adequate weight
• poor or no cooperation between project social specialists given to environmental and social factors
and engineering teams, which generally stems from ○ selection of those options with the best technical,
insufficient management attention economic, financial, environmental and social
• poor or no cooperation between those in charge of combinations of outcomes
resettlement and the environmental and social (E&S) ○ more detailed analysis of a few sites, routes
team and designs, including, but not limited to
• absence of cooperation between agencies in charge of (i) the preliminary cost estimates mentioned
land acquisition (often governmental organisations) and above and (ii) the engagement of key stakeholders
the project design team (government, local authorities, non-governmental
• underestimation of resettlement costs, leading to the organisations (NGOs), community leaders as
selection of designs that will end up costing more. warranted)
• minimisation:
The EBRD requires a comprehensive assessment of
○ fine-tuning of project site boundaries, ancillary
alternative project designs, commensurate with the
facilities and construction-related facilities to
potential magnitude of impacts, including consultation
minimise footprint and displacement.
with directly affected parties. This assessment and its
effects on displacement avoidance or minimisation must be However, avoidance and minimisation of displacement must
documented. Examples include: not be undertaken at the expense of safety, health and/or
the environment. This emphasises the need for integrated
• optimising the location and height of a dam to minimise ESIA approaches rather than teams working in isolation.
land occupied by a reservoir For example, safety buffers around potentially hazardous
• looking for alternative routes for linear projects (roads, industrial facilities should be maintained per applicable
rail, transmission and pipelines) that avoid settlements or regulation and sound ESIA assessment. Community
agricultural land cohesion is another important consideration; the social
• identification of sites well away from settlement and cohesion and economic sustainability of a community may
agricultural land for plants, power production (including require displacement and resettling as a whole, rather than
renewables), and so on. just the part of the community that falls directly within the
project footprint.

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3.1.4. Forced evictions The first way of avoiding an eviction is to consider in a

3.1.4.1. Prohibition of forced eviction fair manner any claims by the community that refuses to
leave. Sometimes the refusal to leave stems from valid
Forced evictions are prohibited by international human claims that had been disregarded previously. Grievance
rights law,9 by the EBRD’s ESP and by PR5. This prohibition redress mechanisms and access to legal remedies need
is absolute and applies regardless of circumstances and the to be in place. Mediation by independent parties, such as
extent of the evictions. humanitarian and/or human rights NGOs, could be helpful
3.1.4.2. What constitutes a forced eviction in certain situations.
Forced eviction, according to the definition in PR5,10 refers The second way to avoid an eviction is through information
to the “acts and/or omissions involving the coerced or and consultation. Informing and consulting local political
permanent or temporary involuntary displacement of leaders, community elders, moral and religious opinion
individuals, groups and communities from homes and/or leaders, traders’ associations, women or youth societies
lands and common property resources which they occupy and communities at large will typically help solve most
or depend on, thus eliminating or limiting the ability of issues, with affected people eventually leaving of their
an individual, group or community to reside or work in own accord after a certain period of time and repeated
a particular dwelling, residence or location, without the information efforts. In speaking with such leaders and
groups, it is important to stress that providing compensation
provision of, and access to, appropriate forms of legal or
to ineligible people would backfire on the whole community
other protections provided for under PR5”.11
from a reputational and cohesiveness perspective, by
The following elements are key to what constitutes a fuelling anger and jealousy among bona fide claimants, as
forced eviction: they would deem such compensation unfair. Community
leaders are often very sensitive to such arguments. Claims
• coercion or involuntary character by ineligible people can be addressed by other mitigation
• absence, inadequacy or lack of access to legal remedies measures, including community development initiatives.
and protections. Such legal remedies and protections
Lastly, clients can resort to the courts to obtain formal
include, but are not limited to: access to a lawyer; adjudication, followed by law-enforcement actions by
adequate formal notifications; access to temporary the relevant judicial organs, in line with processes and
housing; transitional food support, healthcare and procedures set out in law. Where such a route is followed,
access to a school for children of school age; and specific any potential risks to human rights associated with public
support for vulnerable individuals, including the sick and interventions by force should be assessed and mitigated.
disabled.
A firm approach does not involve threats to resort to public
The right not to be forcibly evicted is an element of the
force. Where there are potential security issues during
human right to adequate housing.
this consultation phase, it is important to engage security
As specified in PR5, the exercise of expropriation is not a forces to avoid any use of force and seek compliance with
forced eviction provided it complies with the conditions the Voluntary Principles on Security and Human Rights12 or
stated in PR5, paragraph 13. similar guidelines.

3.1.4.3. Avoiding evictions 3.1.4.4. Unavoidable evictions as opposed to

forced evictions
Projects can face situations in which groups of ineligible
people (for example, people having encroached on the Where all avenues to reach amicable outcomes have been
exhausted and a project ends up having to proceed with
project’s footprint after the cut-off date) or people having
unavoidable evictions, the obligation to avoid a forced
already received their compensation refuse to leave even
eviction still applies. The United Nations 2014 Fact Sheet on
though all commitments under local legislation and PR5
Forced Evictions13 recognises that evictions are sometimes
have been met. In such cases, the project will have to get unavoidable. This guidance note, therefore, distinguishes
them to leave the area while avoiding an eviction that might between “forced evictions” (absolutely prohibited) and
constitute a forced eviction. “unavoidable evictions” (permissible as a last resort under
certain conditions).

9 Based on the fundamental principle in the Universal Declaration of Human Rights (Article 17) that “no one shall be arbitrarily deprived
of his property”. See OHCHR (1948).
10 This definition was originally proposed by the UN Basic Principles and Guidelines on Development-based Evictions and Displacement.
See OHCHR (2007).
11 See EBRD (2019), p. 27.
12 See Voluntary Principles Initiative (n.d.).
13 See OHCHR (2014), in particular, the section entitled “Obligations when an eviction is unavoidable”, pp. 26-35.

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The United Nations 2014 Fact Sheet provides detailed 3.1.5. Negotiated settlements
directions on how to conduct unavoidable evictions of Project developers are required to seek to acquire land
ineligible dwellers and/or encroachers while ensuring through negotiated settlement, even if the project has
fundamental human rights are respected. Key guidelines the legal means of gaining access to the land without the
include, but are not limited to: consent of the seller (that is, through expropriation). In a
• considering all alternatives to eviction (see section PR5 context, negotiation entails the following:
3.1.4.3) and demonstrating the “unavoidable” character
of the eviction • good faith (both parties genuinely seek to reach an
agreement that they find acceptable)
• conducting an eviction impact assessment
• provision of sufficient time
• respecting human rights and due process (including
proper notifications, resort mechanism and availability of • transparency and absence of favouritism
legal remedies) • balance (for example, situations in which an illiterate
• respecting the rights to information and meaningful or vulnerable landowner “negotiates” with three highly
consultation skilled project lawyers are imbalanced), absence of
coercion and threats
• ensuring that the eviction does not result in
homelessness • comprehensiveness (for example, no negotiation on
minor details if strategic decisions have been made
• taking specific safeguarding measures during and after unilaterally before)
the eviction, particularly with regard to the use of public
force and presence of independent observers (see • access to legal support and a fair grievance mechanism
details in the United Nations Fact Sheet).14 for project-affected people.
The EBRD expects any process aimed at reaching a
3.1.4.5. EBRD client obligations in cases of negotiated settlement to be properly documented, so
unavoidable eviction that it can be demonstrated that the criteria listed above
Where all avenues cited in section 3.1.4.3 have been have been met.
exhausted and the client is considering an unavoidable
For large-scale resettlements, negotiation will often be most
eviction, they must undertake the following:
effective where it is organised on a collective level through
• Inform the EBRD ahead of any eviction action being representative organisations. Depending on the case in
taken, including providing the EBRD with: question, such organisations can be municipal councils,
○ a memo establishing the rationale for the farmers and/or agricultural cooperatives, business unions,
unavoidable eviction, including a description of and/or specific committees representing affected persons.
the origin of the issue, the rationale for the land This is frequently the case in rural areas. Negotiation
being urgently needed, and the avoidance measures typically involves successive steps (methods and rules
taken of negotiation should be agreed first with the affected
community or their representatives, then principles of
○ a plan of action describing precisely how the
compensation, then rates, and so on). It is often a long
unavoidable eviction will be conducted and which
process that needs to be accommodated accordingly in
remedies will be in place (see indicative list in
project schedules.
section 3.1.4.4), as well as the consultations
undertaken with relevant stakeholders, including Once a collective agreement on compensation rates or
government, security forces, as warranted, and civil- amounts has been reached with the entire group of affected
society organisations. people, individual bargaining should be avoided, as it may
• Document the implementation of the unavoidable fuel a perception that the process is not transparent or
eviction by appropriate means and provide associated fair. Some level of individual fine-tuning may, however, be
documentation to the EBRD. useful on top of collectively agreed compensation rates to
take into account specific situations where there is clear
justification (for example, to reflect levels of interior finish or
the productivity of agricultural land).

14 Ibid.

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It is good practice for the project to offer independent Vulnerable people or people prone to becoming vulnerable
legal support to affected parties during the design and because they are disproportionately affected potentially
implementation of the resettlement process. Such support include, but are not limited to:
can be implemented by NGOs, such as those specialising in
resettlement and human rights protection, • female-headed households
or private lawyers. • child-headed households
• mentally or physically disabled people
Lastly, it is important to understand that “negotiated
settlement” is not tantamount to “voluntary transaction” • people living with chronic diseases and/or those who are
(or “willing buyer-willing seller”) as detailed in section seriously ill
2.2.2. A negotiated settlement can take place within an • indigenous groups per PR715
expropriation process (which automatically triggers PR5). • ethnic, cultural or religious minorities
3.2. Consideration of vulnerable groups • sexual and gender minorities
3.2.1. General • people living in poverty, as defined by national statistics
institutes or otherwise
Vulnerable groups receive more attention in the 2019
version of PR5, as there is growing realisation that • people holding no formalised or customary rights to
vulnerable groups may be affected significantly more than the assets they use for residence or livelihood (informal
other people in the resettlement process. There is a higher users of land, slum dwellers)
risk that even in a process deemed successful for the • migrant workers
majority, vulnerable groups or people will be left out, will • nomadic and other mobile communities (for example,
not benefit while others do, or will be disproportionately those engaged in seasonal transhumance, temporary
affected. migrants)
3.2.2. Vulnerability criteria • refugees and IDPs
Potential vulnerability factors can be context, group and/or • elderly people.
household specific. There are plenty of examples: Several economies in which the EBRD operates recognise
• An ethnic minority may be vulnerable in a given area and some of these criteria (but usually not all) as triggering an
not in another, depending on history, current political official “vulnerable” classification (official terminology may
conditions and the local socio-economic context. vary) and associated benefits, such as pensions, some
degree of tax exemption, free or discounted healthcare and
• An elderly person may or may not be vulnerable at a
free or discounted transport. While officially recognised
given time, depending on their health status, social
criteria must be considered in the vulnerability analysis
integration and socio-economic circumstances.
mandated by PR5 (and described in section 3.2.3), it is
• A female-headed household may or may not be usually necessary to broaden the analysis to cover the
vulnerable, depending on their socio-economic additional criteria mentioned above, which local social
circumstances, level of education and social acceptance welfare and other regulations do not necessarily take into
of such households locally. account. It is also important to recognise that some criteria
In all these examples, people are potentially vulnerable in in the above list may be socially or politically contentious
the context of physical or economic displacement and may (for example, consideration of sexual and gender minorities,
or may not be actually vulnerable. It is, therefore, important slum dwellers or undocumented migrants) and, in such
to adapt the vulnerability assessment to local risks and situations, tactful consultation with both government and
specific household circumstances. It is also important communities will be needed.
to consider the fact that some people who may not be
vulnerable in the pre-displacement situation can become
vulnerable due to the physical or economic displacement,
so are disproportionately affected. This would, for example,
be the case for elderly people losing connection to their
relatives and/or local solidarity networks because of
physical resettlement.

15 See EBRD (2019), p. 39.

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3.2.3. Vulnerability analysis and pre-identification of • food aid over a finite transition period
potentially vulnerable people • assistance in securing alternative decent housing
The vulnerability analysis recognises the multi- • assistance in securing sustainable livelihoods (such
dimensional character of vulnerability and can include the as the provision of agricultural land, the provision of
following steps: agricultural inputs and technical support, assistance in
• Identification of vulnerability criteria that are relevant establishing small businesses, literacy and numeracy
in the context of the project. Select and refine, from training, vocational training, linkages with direct or
the list of criteria in section 3.2.2, those that apply to indirect project employment and procurement)
project-affected communities. This should be done in • temporary healthcare support
the early stages (scoping) of resettlement planning and • provision of equipment to mitigate disabilities
can be based on consultation with local community • specific accessibility provisions on resettlement sites to
representatives, government institutions, particularly facilitate access to elderly individuals and people with
those in charge of social welfare activities, and NGOs. disabilities and special needs
• Based on selected criteria, the establishment of a • where affected people are physically displaced, specific
vulnerability matrix to take into account the multi- assistance during and after the moving period
dimensional nature of the vulnerability, which may
• specific (for example, more frequent or longer) livelihood
include a preliminary vulnerability scoring system to
and social monitoring in the post-displacement period.
enable the ranking of households by vulnerability score.
• Application of this matrix to household-level socio- 3.2.6. Livelihood and standard-of-living restoration for
economic data gathered in baseline surveys to generate vulnerable people
a list of vulnerable people that may be potentially PR5, paragraph 4, requires clients to “improve, or as a
affected by the project. Where detailed socioe-conomic minimum restore the livelihoods and standards of living
surveys of a sample of affected people (long linear of affected persons compared to pre-displacement
projects, for example) are carried out, vulnerability levels”. This guidance note expands on the provisions in
information should still be gathered on all affected section 3.16. The general requirement is restoration “as a
people. This can happen in a further data-collection minimum”. However, where the livelihoods of people living
stage, for instance, in the negotiation stage. in poverty are affected, EBRD projects should seek to
3.2.4. Identification of vulnerable people bring about significant improvement in these livelihoods.
Similarly, where standards of living are poor, the obligation
Based on the list generated by the aforementioned is to improve conditions by providing adequate housing (see
vulnerability analysis, the project should interview section 3.15.4), not to restore prior squalid conditions.
all individuals identified as potentially vulnerable.16
Based on these interviews, final validation and identification In addition, livelihood restoration planning must take
should be done and documented. Where possible, external account of vulnerability: proposed activities should match
stakeholders should participate in and/or validate this final the abilities and capacities of all, including the vulnerable. In
identification, including local government and its social some cases, it may be possible to transfer the eligibility for
welfare specialists, community representatives and NGOs. livelihood restoration of elderly people, with their consent,
to others in their household, particularly where activities
3.2.5. Assistance for vulnerable people are proposed that older people may not embrace easily (IT
Assistance for vulnerable people is meant to support training or language training, for example).
them during and after the resettlement process to
achieve the desired outcomes per the objectives of PR5. 3.3. Consideration of gender aspects
Such assistance should be devised so as to enhance 3.3.1. General
the sustainability of housing conditions and livelihoods, Land acquisition, displacement and resettlement may affect
rather than generate additional dependency. Depending men and women differently. For example, in some jurisdictions
on household circumstances and based on consultation only men’s ownership of real estate is recognised. In others,
with the affected households themselves, community the joint property of married couples exists in law, but not
representatives, government institutions and local NGOs,17 in practice, particularly where land ownership and use are
measures could include: primarily governed by customs. The result is often that men

16 The interview should preferably be conducted in the householder’s home and with both spouses or partners present if they are a couple. It
should also be based on a formalised interview guide or questionnaire devised by a qualified social specialist familiar with local conditions.
17 Such as women’s rights groups, NGOs advocating for the rights of people with disabilities or special needs, NGOs supporting refugees or
IDPs, and lesbian, gay, bisexual and transgender (LGBT) organisations.

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de jure or de facto own the land and other assets. As a result, mitigation measures for individual or household needs.
women may be excluded from compensation, particularly Important insights and socio-economic indicators, such as
where compensation is in cash, with sometimes drastic differences in income, key livelihood streams, land tenure
implications if the man decides to use compensation to satisfy arrangements, levels of education and skill, preferences for
his own aspirations exclusively. The contribution of women resettlement and livelihood options, can be derived from
to household livelihoods is often non-monetary: for example, such quantitative data collection and analysis.
they may earn no direct cash income in situations where
farming sales are managed exclusively by the male spouse, In administering the questionnaire, care should be taken
although women’s labour may have been critical to generating that the female spouse is present. Enumerators must be
this income. Similarly, it is often women who deal with general trained accordingly, taking into account cultural sensitivities.
household chores, which are not monetised. As a result, 3.3.2.2. Further investigations
women’s contribution tends to be underestimated in devising
The knowledge gained from the quantitative survey can be
livelihood restoration and improvement programmes.
supplemented with further investigations that help to better
Understanding such gender-specific details will help to
understand local gender and social dynamics and support
devise compensation and mitigation measures that benefit
the design of more effective resettlement mitigation
both women and men, are equally available to men and
measures. It is useful to look into the below aspects,
women and are adapted to their respective needs.
potentially using qualitative research methods, such as
3.3.2. Gender aspects in socio-economic baseline surveys interviews, key informant interviews and/or focus-group
The EBRD expects its clients to identify all types of gender discussions. Focus-group discussions should be conducted
impact a project might have, including gender-based separately for women and men:
violence and harassment (GBVH) risks, to both workforce • intra-household division of responsibilities and tasks
and community. (earning cash income, farming, dealing with animals,
Therefore, a broader gender impact assessment should be child education and care, elder care, domestic chores)
carried out as part of the ESIA process for high-risk projects • differences in livelihood streams between males and
and not be limited to affected landowners/users. For such females and differential impacts of land acquisition on
projects, the conclusions of the gender assessment on land, each of these streams
income and resettlement-related issues must be considered • intra-household management of money:
in the design of the resettlement plan. ○ who manages cash and/or bank accounts
On projects where a standalone gender impact assessment ○ where the male and female earn cash income
is not required, these gender aspects must still be considered independently of each other, how this is managed
in the baseline surveys carried out for resettlement planning. ○ who caters to the needs of children (school fees,
3.3.2.1. Incorporating gender aspects into household-level clothes, health expenses)
data collection and analysis ○ how decisions are made about significant household
expenses (such as fixing the house or purchasing a
Socio-economic surveys for land acquisition and
vehicle)
resettlement are typically carried out using the household
as the investigation unit, because, in the vast majority ○ how women’s aspirations are handled within the
of cases, the whole household is affected and subject household
to displacement. It is, therefore, logical to carry out the ○ when times are tough, how money matters are
analysis and present the results at household level. handled within the household
When designing quantitative survey questionnaires, it is • the potential for the project to exacerbate differences in
important to incorporate sufficient levels of demographic income between men and women
detail, which will subsequently allow for meaningful data
• the potential for the project to exacerbate GBVH risks
analysis of the potential differences in resettlement impacts
(see below)
on men and women. Well-designed questionnaires will allow
for additional household-level analysis by disaggregating • potential expectations and preferences for resettlement
data by the gender of the household head, thus providing mitigation measures.
insights into the potential differences between women- and These investigations need tact, experience and discretion.
men-led households. The analysis may also be carried out Interaction with women and girls in focus group discussions
at an individual level, thus providing information on relevant is often (but not necessarily) best handled by female
differences between men and women. resettlement specialists.
This approach will help to identify and design more suitable

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The potential for GBVH in relation to the resettlement This type of information can be gathered using qualitative
process should also be assessed. This is important, as the methods, such as focus-group discussions with separate
delivery of cash compensation within a land acquisition groups of men and women and interviews with experts and
programme may result in increased risks of GBVH. It is community elders.
also critical, where relevant, to assess and avoid GBVH
risks related to the very process of investigation, as the 3.3.3. Gender aspects in consultation
disclosure by women of information to outsiders may By mixing women and men in the same consultation
also result in GBVH. A resettlement-related GBVH risk events, gender specificities may end up being overlooked,
assessment must be conducted in line with the Guidance as men may be more vocal and suppress women’s views.
on Addressing Gender-Based Violence and Harassment In specific cultural contexts, it is, therefore, important
issued by the EBRD, CDC and the International Finance to arrange separate consultation opportunities with
Corporation (IFC).18 males and females, in addition to general meetings
where both attend. Various methods can be used, from
3.3.2.3. Investigation of gender aspects of tenure gender-specific community meetings to focus groups and
Understanding land tenure arrangements is a key aspect individual interviews, as well as meetings with women’s
of socio-economic baseline investigations undertaken in groups and associations. Proper consultation avenues
preparation of land acquisition and resettlement. Land should be used and the outcomes of these events
tenure arrangements are often detrimental to women due should be adequately processed so that the potentially
to certain traditions, even where the law gives males and different views of both genders are genuinely reflected
females equal rights. The following should be investigated and taken into consideration (for example, when devising
from both a legal and a social perspective: compensation and livelihood restoration entitlements).
In addition, consultation times and arrangements should
• legal aspects: be conducive to women’s presence and participation (for
○ legal rights to land of men and women example, allowing children to be present or making sure
○ whether the law allows for joint ownership of assets that meeting times do not coincide with women’s typical
by both spouses household chores).
○ whether assets acquired by married couples are 3.3.4. Gender aspects in devising compensation
automatically registered in both names entitlements
○ legal provisions on separation, divorce and When compensation for land and other assets is required,
inheritance (who gets what in the event of divorce or it must take into account that men and women may have
succession) different preferences. For example, experience shows that
○ how the above provisions apply, by law, to informally men overwhelmingly prefer cash compensation. Women,
held assets (if they apply at all) in contrast tend to prioritise access to adequate housing,
○ the rights of men and women to other household livelihood security and access to health and education
assets (buildings, livestock, agricultural equipment, services for their household members. It is, therefore,
furniture, household items) important that compensation entitlements be discussed
• social aspects and customs: with representatives of both genders and be based on a
comprehensive gender analysis, as mentioned previously.
○ how the law is applied in practice
○ whether custom has the force of law Titles to resettlement properties should be established
in the name of both spouses, and cash compensation
○ what regimes of inheritance apply to informally held
should be paid into joint accounts where this is legally and
assets, particularly land and immovable property
culturally possible. Where there are legal or cultural hurdles
(check the respective rights of the deceased’s
to achieving this, the project should adopt a best-effort
spouse and children)
approach, for example, by proposing on a systematic basis
○ provisions applicable to divorce that titles be established in both names and seeking to
○ status of polygamous households convince all relevant parties that this is in the best interest
○ customary dowry regimes, where applicable, and of families in the long term.
implications for ownership of land and other The potential adverse effects on women of cash
assets in the event of succession, divorce or de compensation should be mitigated by appropriate
facto separation. awareness and training activities, including access to
financial training.

18 See EBRD, CDC and IFC (2020).

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3.3.5. Gender aspects in livelihood restoration 3.4.2. Socio-economic surveys

As reflected in section 3.3.2 on baseline surveys, livelihood Socio-economic surveys typically use a combination
streams are often different for women and men. For of quantitative social research methods (in the form of
example, males may take care of open-field agriculture household interviews based on a questionnaire) and
while women may handle livestock and backyard gardening. qualitative investigation.
Secondary or seasonal activities can also differ. In many
areas, gathering (berries, mushrooms) is a female activity, 3.4.2.1. Quantitative surveys
while fishing or hunting is a male activity. Women and men Quantitative surveys are typically administered at household
also tend to engage in different small business activities. level. The questionnaire should be simple, allow information
These gender-specific livelihood streams will be affected (or to be coded, allow for stratified data analysis by relevant
not) in different ways by land acquisition or restrictions on indicators, such as gender, and include indicators relevant
resource access. to further livelihood monitoring, such as indirect income
and expense and standard-of-living indicators (for example,
It is critical to understand these different impacts, gender- possession of certain household items). To minimise
specific constraints and gender responsibilities when the onus on affected people, the questionnaire should
devising livelihood restoration plans. While there may be administered in one hour or less wherever possible.
be common points, the livelihood restoration activities Where the household involves a couple, the questionnaire
proposed to representatives of each gender may also be should ideally be administered in the presence of both
different, depending on the cultural, social and economic spouses. Tablet-based questionnaires are generally
context, as well as on the abilities and wishes of each convenient and should be considered. Quality control, the
gender. It is, therefore, essential that separate consultation training of enumerators and the supervision of teams by
take place, as suggested in section 3.3.3. qualified social scientists are critical. These socio-economic
questionnaires can also include a section on compensation
3.4. Baseline surveys and cut-off date preferences (for example, cash versus in-kind, resettlement
See also sections 3.2 (vulnerability) and 3.3 (gender). location preferences). They should also include questions
related to potential vulnerability criteria in order to identify
3.4.1. General vulnerable people within the project-affected community.
The key objectives of baseline surveys are as follows:
For long linear projects, such as highways or transmission
• socio-economic surveys: establish a social and economic lines, or projects in dense urban settings that can affect
profile of affected individuals, communities and groups thousands of people in a relatively marginal way, it may
that will be used, among other things, to: be unreasonable to administer a detailed socio-economic
○ devise livelihood restoration activities survey to all, so a sample is acceptable. The size of the
○ provide the pre-impact baseline against which post- sample should be sufficiently representative and generate
project livelihood restoration and standards of living reasonable statistical confidence (typically 95 per cent
will be assessed and monitored confidence for a 5 per cent margin of error).19 The sample
may need to be stratified to reflect geographic or other
○ provide the information for a gender analysis relevant differences, such as gender and ethnicity. The
• census: identify all affected people survey design and sampling method need to be established
• inventory of affected assets: provide the basis of by a qualified social scientist or statistician. All physically
compensation entitlements displaced households should be included in the sample.
• establish a cut-off date after which people moving into Basic identification and vulnerability information is required
the area will not be eligible for all affected people.
• vulnerability analysis (see section 3.2): identify
vulnerability factors and pre-identify vulnerable people.
Where socio-economic surveys have been conducted well
before actual impacts, an update should be carried out after
2-3 years, sometimes sooner if significant macroeconomic
changes have taken place.

19 The EBRD Resettlement Guidance and Good Practice document includes specific
guidance on sample size for socio-economic surveys. See EBRD (2017), page 33.

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3.4.2.2. Qualitative surveys • confirmation of landowners (cadastral data may be

While household surveys provide systematic baselines on obsolete, with recent transactions or successions not
all affected people, qualitative surveys will provide further registered)
information necessary to qualify and elaborate on the • identification of any land users, whether formal or
quantitative information and better understand specific informal, permanent or seasonal
issues, such as: • physical characteristics (slope, access, soil), actual land
• land tenure, particularly where informal users are use (which may differ from information in the cadastral
affected database), presence of specific developments (such as
irrigation or drainage canals), presence of structures and
• local governance and decision-making nature/description of these structures
• gender issues, such as those discussed in sections • identification and description of trees and crops
3.3.2.2 and 3.3.2.3
• measurements and detailed characterisation of land
• livelihood streams plots and structures.
• vulnerability factors (see also sections 3.2.2 and 3.2.3) The design of asset surveys must be consistent with any
• use of communal natural resources and specific applicable national valuation requirements. It is usually best
livelihood activities, such as fishing, hunting and to allocate their implementation to licensed topographers
gathering and/or valuers that are familiar with both national standards
• compensation preferences and the concept of full replacement cost. Satellite imagery
• discussions with specific groups, such as community or drone flyovers can be very useful and cost effective,
leaders, community elders, youth, women, the elderly particularly if linked to a Geographic Information System
and business communities. (GIS) with cadastral information. These should always be
considered for long linear projects.
Qualitative investigations must be conducted by
experienced social scientists and be properly documented 3.4.4. Cut-off date
and processed. 3.4.4.1. Objective
3.4.2.3. Outcome of socio-economic surveys The cut-off date is meant to ensure a distinction between
The desired outcomes of socio-economic surveys are listed people owning, occupying or using the area prior to this date
in PR5, paragraph 20, as follows: (and who will genuinely be affected by it) and those settling
in the area for speculative reasons. It aims to protect the
• Establish a social and economic profile of the affected project from opportunistic claims for undue compensation.
communities and people with disaggregation of data by The cut-off date should be transparently established and
sex and age. disclosed.
• Establish village profiles, particularly for linear projects.
3.4.4.2. Cut-off date established by law
• Identify sources of livelihood that are affected and their
Where the state is involved in project land acquisition,
significance to the overall livelihoods of affected people.
the cut-off date, as defined by PR5, is usually established
• Identify land-tenure regimes in the affected area. by a legal act of government, such as a declaration of
• Identify any gender issues that may affect the land public interest (or, in some jurisdictions, by a specific
acquisition and resettlement process. decree or order taken in application of the declaration of
• Identify relevant factors of vulnerability and establish a public interest). Where this is the case, the project must
list of vulnerable groups or persons. coordinate its census and asset survey exercise (both in
terms of method and schedule) with the statutory steps
3.4.3. Census and inventory of affected assets
required by law. While not mandated by law, it is desirable
Where data are available (which is the case in most in such cases that socio-economic surveys be concurrent
economies where the EBRD operates), such investigations with the census and asset surveys. Ensuring consistency
typically start with the review of any cadastral data obtained between the requirements of PR5 and the mandatory steps
from the relevant authority. This will provide a list of land prescribed by expropriation legislation is usually possible,
plots located within the project footprint or corridor, usually but needs to be planned with care, before the declaration
with some basic characteristics, possibly including a of public interest is taken, and preferably in discussion
cadastral or fiscal value, as well as the identification of with the EBRD.
registered landowners. This is, however, not sufficient and
must be complemented by field investigations to gather the
following information with a view to valuation:

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3.4.4.3. Project cut-off date • where the cut-off date is established by the project (see
For private-sector projects, or where the cut-off date is not section 3.4.4.3), it is valid for a “reasonable period”.
prescribed by a statutory process, the project will establish In cases where a cut-off date was established several years
its own cut-off date. PR5 mandates that this cut-off date (sometimes decades) ago and people are found to occupy
be at the end of the census/inventory process. It should these earmarked public areas, such a cut-off date would
preferably be backed by visual data produced through typically not qualify as clearly established and made public
drone or satellite surveys, or photographs showing the site per the provisions of PR5, paragraph 23. A new census
conditions. It is advisable that the project cut-off date be and inventory must conducted and a new cut-off date
supported by a legal act taken by a local mayor, district must be set.
head or regional governor.
Such situations can occur in three cases:
3.4.4.4. Disclosure of cut-off date
• A cut-off date was declared and the area was cleared
PR5 has clear requirements as far as disclosing the cut- (sometimes with compensation), but people came back
off date to the public and affected people is concerned. when they realised the project would not materialise
A cut-off date is valid only if has been properly disclosed soon, or settled because the area appeared free of
to the public (see PR5, paragraph 23). This is important occupation and they were not aware that a project had
where the project is faced with potential legacy issues, as been suspended.
a government agency may have cleared land in the past
• A cut-off date was declared (a census may have
based on a cut-off date that was not meaningfully disclosed.
taken place, sometimes even some compensation or
Where the project resumes after a long period of time,
assistance may have been delivered), but the area was
people that have settled in the footprint will claim that they
never cleared of occupants.
were not informed and, if the proper disclosure of the cut-off
is not documented, a new survey, census and inventory and • A cut-off date was declared, but the census dealt only
a new cut-off date may be necessary. To be meaningful, with formal occupants (those with a title), neglecting
disclosure must take place locally, in local languages, and informal users who were never informed.
the process must ensure that all affected people have been In any of these cases, the strategy will depend on applicable
informed in a timely manner. legal requirements if the cut-off date was declared as part
of a mandatory legal process20 and on how much time has
3.4.4.5. Seasonal and other users
passed since the cut-off date was declared (assuming it was
The cut-off date process and the need to implement a clearly established and made public per the provisions of
census or survey immediately thereafter may miss people PR5, paragraph 23):
that occupy the project area on a seasonal basis, such
as herders, beekeepers, fishermen, waste pickers or • If people were compensated or assisted at the time of
sharecroppers. In undertaking socio-economic surveys the initial cut-off date under conditions that meet the
and consultations with communities, the project must pay objectives of PR5 and subsequently moved back or did
attention to the potential presence of such users in the not move:
project area. If they cannot be identified and surveyed at the ○ If the cut-off date is less than three years old and
same time, they will need to be surveyed later. people received compensation and/or assistance
under conditions in line with the objectives of PR5,
Similarly, the project must make sure that secondary
this cut-off date can typically be deemed valid and
users, such as people using mineral resources formally or
the project can proceed with clearing the area,
informally, hunters and gatherers, are captured by census
subject to a check that compensation rates paid at
and socio-economic surveys.
the time still meet full replacement cost,
3.4.4.6. Validity of cut-off date taking inflation into account.
Complex projects can often take longer than expected ○ If the cut-off date is three to five years old, then
to materialise. There can sometimes be a long period an updated survey and census should be conducted
between a declaration of public interest or similar act and to assess the extent of changes and identify any
the project actually starting. The government and project additional eligible people (assuming a census was
may then be tempted to consider any occupants who have conducted concurrently with the cut-off).
settled in the area as illegal and seek to evict them without Compensation rates should also be updated.
compensation. However, the requirements pertaining to cut- ○ If the cut-off date is more than five years old, it
off date validity contained in PR5, paragraph 24, apply: should be deemed invalid and the whole process of
declaring a cut-off date and surveying the
• where the cut-off date is established further to a national
area should be redone. Those present at the time of
statutory process (see section 3.4.4.1)
the new cut-off date should then be compensated.

20 Most countries have clear requirements in this regard.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

• If people were not compensated or assisted at the time 3.5. Valuation at full replacement cost
of the initial cut-off and a census is available: 3.5.1. Definition
○ If the cut-off date is less than three years old, it Full replacement cost valuation is a method of valuation
can be deemed valid and the project can proceed that calculates compensation sufficient to replace assets
with compensating and assisting affected people, and the requisite transaction costs associated with asset
subject to an update of compensation rates, but replacement. Where residential structures are concerned,
avoiding double payments. the full replacement cost method must yield a value that
○ If the cut-off date is three to five years old, then an is sufficient to purchase a residence that meets adequate
updated survey should be conducted housing criteria. This is important, as many poorer residents
(similar to above) prior to establishing eligibility lists live in inadequate or small structures, the valuation of
for compensation and assistance, along with an which would provide a sum insufficient to buy a house on
update of compensation rates. the market.
○ If the cut-off date is older than five years, it should
3.5.2. Replacement cost in functional real-estate markets
be deemed invalid and the whole process of
declaring a cut-off and surveying to determine Where real-estate markets are functional and reflect
eligibility for compensation and assistance should supply and demand, replacement cost is the market value
be redone. established by independent and competent real-estate
valuation plus transaction costs. Valuation in such cases
The above provisions may need to be adapted depending on
is usually based on the comparative method, whereby the
the applicable national laws, but the general objectives that
property being acquired (or its constitutive elements – land,
these provisions reflect should be safeguarded as much
buildings, trees, and so on) is valued by comparing it with
as possible.
similar transactions in equivalent areas. EBRD projects
3.4.5. Data management should be mindful of the following when using this method:
Survey and other compensation- and resettlement- • The number of transactions should be sufficient to create
related data must be properly stored, as they will be a meaningful baseline.
used throughout the compensation implementation and
• Asking prices and real transacted prices may be
monitoring phases. For projects with a high numbers of
different, so using asking prices in the comparative
transactions, it is advisable to use professional tools and
method (such as those on real-estate websites) may yield
adequately qualified specialists to manage and store data.
biased results.
There are “off-the-shelf” software solutions available on
the market, which still need to be tailored and usually • Properties used as benchmarks should be comparable in
require significant training effort. For large projects, a all respects (location, economic potential, condition).
tailored tool using open-source development tools is often a • Transactions should be recent and take into account
good solution. macroeconomic changes in the recent past that may
affect the price of real estate.
EBRD clients should check data privacy legislation in the
economy where they operate, as this legislation may have • In some jurisdictions, transactions may be under-
implications for survey data gathering, processing and declared to the tax authorities to minimise taxes due.
storage, as well as for consultation. It is often necessary to Using the tax registry to create a baseline of comparable
get project-affected people to sign a legal waiver at the time transactions may, therefore, be misleading. The
of survey, explicitly giving them permanent right of access comparison should seek to estimate the higher price
and correction. In addition, some jurisdictions prohibit such actually paid rather than that declared.
data being stored or processed in a foreign country. Where land acquisition takes place within a state-led
project, EBRD projects should make sure that valuation is
undertaken by officially certified valuers using prescribed
mandatory methods. Valuation standards established by
the International Valuation Standards Council can also be
considered.
Experience shows that in those economies where the
EBRD operates, functional real-estate markets typically
exist in larger cities, but not always in rural areas, where
there are often too few transactions to generate reliable
comparative data.

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3.5.3. Replacement cost in formative or non-functional real- close to a large city that was soon likely to be developed into
estate markets suburbs, farmers claimed that their land should be valued
Where real-estate markets are in their formative years as construction land rather than agricultural land, even
or where they do not exist, using full replacement cost though it had not been reclassified as such by the relevant
valuation is generally more complex, as the comparative authority. Similar claims can arise from the construction of
method outlined above cannot be used. Full replacement infrastructure, such as roads, that might increase the value
cost can be determined by alternative means, such as one of adjacent land. Lastly, a project may cause a change in
or more of the following: land cadastral classification (for example, from agricultural
to construction or industrial land), which could, in turn,
• Land: trigger a notable increase in land value.22
○ Dedicated surveys: Preferably use focus-group
According to legislation and/or practice in most countries, land
discussions and key informant interviews to query
should be valued at its current value, not taking into account
locals on typical prices (this often requires tact
potential opportunity losses. Where such issues arise,
and a good understanding of local culture and
the EBRD recommends considering national benchmarks
values in relation to land and money).
for similar situations, including the engagement of both
○ Calculate the output value for land or productive government officials and valuers, checking how similar
assets (the “income” valuation method). questions have been addressed in other projects and setting
• Structures: A bill of quantities-based methodology can project policy accordingly. Whatever the avenue, the outcome
be used to calculate the undepreciated value (“as new”) should always meet the “full replacement cost” requirement.
of replacement materials and labour for the construction
of structures or other fixed assets, with no deduction for 3.5.5. Valuation of inadequate housing
depreciation or taxes and the like. In cases of physical displacement, the full replacement
• Trees and crops: cost must at least be sufficient to enable the purchase
or construction of housing that meets adequate housing
○ Annual crops:21 The full replacement cost is the criteria. This is particularly relevant to projects involving
typical yield observed in the area multiplied by the poorly built, inadequate residences, such as slums, but can
average or median selling price (variations in time also apply to projects in rural or urban areas that affect
need to be considered). No deductions are made for old, traditional houses that do not meet current building
expenses or other items. standards, such as those associated with energy efficiency
○ Perennial crops: The full replacement cost is the or earthquake resilience (“non-compliant” housing).
sum of:
The best way to approach this is usually to propose project-
– The loss of income during the whole period
built resettlement houses that are designed to meet all
required to re-establish the affected perennial
applicable national standards.
crop to its current level of production. This is usually
calculated by integrating over a period of time the However, where the compensation approach is based on
value of the lost harvests at the local selling cash for all or some of the physically displaced people, the
price. This calculation usually requires gathering amounts should be such that the minimum paid will always
data from qualified agronomists and/or the affected allow the purchase of adequate housing that meets local
farmers themselves. standards. The usual way to achieve this outcome is to
– The direct cost of inputs (labour, fertilisers, and so provide a minimum amount per square metre, which has
on) during that period. been calculated to align with adequate housing criteria,
Where affected people are allowed to salvage materials national building standards and the value of what is
from their affected structures, no deductions to the full actually available on the market. People living in affected
replacement cost are made. inadequate or non-compliant housing will receive this
amount so that they can replace it with adequate and
3.5.4. Should future or current value be considered? compliant housing. Note that for slum dwellers and informal
There are situations in which affected people claim that users, the EBRD does not necessarily mandate that they
their properties should be valued taking into account the be provided with alternative housing under a full ownership
value increase brought about by the project itself or by a arrangement, as detailed in section 3.15.3.
forthcoming change in land categorisation. For example, in Further detail on adequate housing is provided in
one pipeline project affecting agricultural land in an area section 3.15.4.

21 Note that entry to land should generally be planned in such a way that annual crops can be harvested ahead of taking ownership.
22 In several economies where the EBRD operates, mining or industrial projects are only permitted once a change in land classification has
taken place. This typically requires an update of spatial plans. The land must then be classified as industrial before it can be acquired.
In such cases, although the initial purpose and classification of the land are clearly agricultural, law and practice would certainly require
compensation for the land to be classified as industrial.

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3.5.6. Transaction costs For linear projects, consistency of rate calculation

Transaction costs are all of the costs an affected owner methodology over the length of the project is also
incurs as a result of the involuntary transaction (whether important to avoid discrepancies between neighbouring
negotiated or resulting from a compulsory process), which administrative units.
she or he would not have incurred if the project had not
taken place. These can include:
3.6. Valuation of businesses
The valuation of an affected business can comprise up to
• direct transaction costs, such as registration taxes, four components:
inheritance taxes, notary fees, cost of establishing power
of attorney • Any fixed asset (such as land or structures) owned by a
business and affected by the project will be valued at full
• indirect transaction costs in reasonable lump-sum
replacement cost under rules similar to those applying to
amounts, such as transport, telecommunications and
any land or structures affected by the project.
value of time lost
• Professional equipment that cannot reasonably be
• taxes that the affected landowner may incur on top of
moved should be valued at full replacement cost.
direct costs as a result of the transaction, including
income taxes, for example • Loss of income during the transition period should
be offset by cash compensation if legally possible or
• the cost of processes an informal user may incur to
other assistance, based on records and/or tax returns
register their rights to land.
for formal businesses. For informal businesses, a fair
In some economies where the EBRD operates, cadastral assessment of earnings should be made together with
registries are not necessarily up to date, particularly in the owner and/or operator and targeted assistance in
remote rural areas. When a project starts, it is important cash or other forms should be made available.
to check at the resettlement planning stage the status
• Employees should be given targeted assistance in
and currency of cadastral data. Where they appear to be
respect of any work stoppage resulting from the impact
outdated, the project should engage with the relevant
on the enterprise, so that their livelihoods are maintained
authorities and consider supporting the update of the
during that suspension of income. Alternatively, their
cadastre, including procuring licensed surveyors to
termination or suspension of employment should be
undertake the fieldwork and paying registration fees.
addressed in compliance with PR2.23 Where there
Experience shows that doing this proactively is well worth
are no unemployment schemes that can handle such
the time and money invested, as it saves considerable time
assistance, the project should find alternative mitigation
down the line, removes a burden from the affected people
measures. Employees of informal businesses, employees
and often supports the project’s “social licence to operate”.
without a work contract and individual businesses
3.5.7. Updating full replacement cost during the project cycle that depend significantly on the activity of the affected
For projects that involve multiple transactions over a business should be addressed as well via cash or non-
period of more than one year, it is necessary to review cash assistance (that is, among other things, identified
compensation rates on a regular basis, typically once a year in the census and investigated in the socio-economic
unless circumstances such as currency devaluation or high surveys), as their livelihoods will be affected too.
inflation demand otherwise. Where the enterprise cannot be re-established for
whatever reason, providing employees with six months
The compensation rates should be updated by qualified of lost income is generally adequate. Assistance with re-
valuers and involve a review of applicable rates against employment, including training, can also be proposed.
current market conditions particularly for crops and trees Where a business is operated by a person who is not the
(as agricultural prices can be quite volatile) and for land and owner, tripartite agreements (project, owner and operator)
structures, where applicable (the cost of construction can may be needed to share the compensation according to the
also be quite volatile, as it is linked to cement and steel, respective losses of the different parties.
which can see significant fluctuations).
Where employees are to be given targeted assistance
Any updated rates should be publicly disclosed, with clear in respect of impacts on their employment, the EBRD
conditions of applicability (from what date, for which period recommends direct payment to the employee rather than
of time). The initial resettlement plan does not necessarily indirect payment through the business owner, where this is
need to be updated accordingly, but it is important legally possible.
that contingencies in the initial budget are sufficient to
accommodate such updates and that the plan establishes
the frequency of and arrangements for such updates.

23 See EBRD (2019), p. 16.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

For large, formal businesses held by several shareholders, In most jurisdictions, there is typically no mandatory or even
specific legal and financial advice may be needed to broadly accepted methodology for valuing such restrictions.
mitigate legal risks to the project associated with the The project must assess the actual impacts and devise a
payment of compensation. compensation strategy that addresses the full extent of
the impacts and takes in account local precedents, if any.
For very small, informal businesses (such as a farmer using For example:
a roadside stall to sell fruit), the best solution is to facilitate
their swift relocation to minimise the economic disruption. • If people living in an area designated as a sanitary
protection zone on a formal or informal basis are required
Where activities are very specific (for example, wine making to move out as a result of a project, they should be
in designated areas or fishing), business valuers may need offered a full resettlement package in line with PR5.
to be supported by experts in the field.
• Where land affected by a restriction is constructible24
3.7. Other valuation issues and the project-induced restriction will prohibit
3.7.1. Loss in value of land not subject to project land construction, affected people could be offered the
acquisition difference in value between construction and agricultural
land (both estimated at full replacement cost), even
There are cases where people whose properties are not if they have no immediate project to build, for those
being acquired claim the project has caused a reduction patches of land that are actually potentially constructible.
in value (for example, due to landscape or environmental
impacts, such as noise). This could be the case, for • Where farmers are prohibited from growing trees under
example, for projects with landscape impacts, such as a transmission line in an area where trees are cultivated,
overhead transmission lines, and is particularly relevant to they should be offered compensation for this restriction
areas with high tourism potential, where the value of a good based, for example, on the net present value of the loss
view can be very high. of income.
3.8. Compensation entitlements
PR5 does not specifically address such issues. They can
sometimes be considered as part of the impact assessment 3.8.1. Eligibility
process, for example, through mitigation measures for In line with similar standards, EBRD PR5 identifies three
noise, such as the double-glazing of windows in residential categories of rights holder that are eligible for various types
areas. They can also be considered on a case-by-case of compensation:
basis through the grievance management process, whereby
(i) persons who have formal legal rights to the land
the merit of the claim is assessed, taking local legislation,
(including customary and traditional rights recognised
jurisprudence and practice into account. However, where
under national laws) or assets
such issues are identified and assessed as likely at
project planning stage (for example, in tourism areas), (ii) persons who do not have formal legal rights to land or
the EBRD will require a methodological approach to be assets at the time of the census, but who have a claim to
prepared and presented in the resettlement plan to ensure land or assets that is recognised or recognisable under
consistency and fairness of treatment, rather than an ad national law
hoc process that could result in unfair mitigation measures (iii) persons who have no recognisable legal right or claim to
or compensation only for more vocal or better-connected the land or assets they occupy or use.
individuals. Note that the word “persons” covers both people and
3.7.2. Valuation of restrictions on land legal entities.
Some projects base their land acquisition strategy on 3.8.2. Overview of entitlements for the three categories of
restrictions rather than outright purchase. This is the case project-affected person
with many pipelines and transmission lines. Lands above Table 2 provides a brief overview of potential compensation
and around the pipeline or under the conductors will remain entitlements for all three categories of affected people, as
in original ownership, albeit with restrictions, such as a ban defined in PR5, paragraph 26.
on erecting structures or planting high trees, with the owner
then compensated for these restrictions. This can also be
the case in “sanitary protection zones” established by the
local regulator, for example, around potentially hazardous
industrial sites, airports or intakes from ground or surface
water, or similar safety or protection zones.

24 “Constructible” in this instance should be understood as including both land that is officially categorised as construction land
and land that actually bears constructions, even if it is not categorised officially as construction land.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

Table 2: Overview of compensation entitlements for the three categories of affected person
Impact (i) Formal rights holders (ii) Holders of recognisable rights (ii) Informal users25

1 Physical displacement
11 Land Land-for-land compensation Provide support for the legal recognition PR5 does not require compensation for land
or compensation at full of rights and, once rights are recognised, to informal users
replacement cost land-for-land compensation or Replacement land can be offered as a
compensation at full replacement cost livelihood restoration measure
12 Crops and Replacement (where practical) Replacement (where practical) or Replacement (where practical) or
trees or compensation at full compensation at full replacement cost compensation at full replacement cost
replacement cost
13 Residential Cash compensation at full Provide support for the legal Compensation at full replacement cost of
buildings replacement cost, replacement recognition of rights structures and/or resettlement assistance
and resettlement assistance and, once rights are recognised, cash to allow relocation to adequate housing (not
compensation at full replacement cost and necessarily in full ownership, but with some
replacement and resettlement assistance degree of security of tenure, for example,
social housing with a long-term lease); this
may apply to occupants and tenants, whether
formal or informal
Formal or informal tenants can also be
addressed by a cash payment sufficient to
allow them to pay the deposit required to
secure a new rented dwelling (typically three
to six months of rent), unless they are formal
tenants already adequately addressed in
legislation and tenancy agreements (for
example, with an adequate notice period)
14 Non- Replacement or compensation Provide support for the legal Replacement or compensation at full
residential at full replacement cost recognition of rights replacement cost for non-residential buildings
buildings and, once rights are recognised,
replacement or compensation at full
replacement cost
2 Economic displacement
21 Land Land-for-land compensation Provide support for the legal recognition No compensation for land, however,
or compensation at full of rights and, once rights are recognised, replacement land could be offered as a
replacement cost and livelihood land-for-land compensation or livelihood restoration measure, as well as
restoration assistance compensation at full replacement cost and livelihood restoration assistance
livelihood restoration assistance
22 Crops and Replacement (if practical) Replacement (if practical) or Replacement or compensation at full
trees or compensation at full compensation at full replacement cost replacement cost (for trees in ownership of
replacement cost the informal user of land)
23 Structures Replacement or compensation Provide support for the legal recognition Replacement or compensation at full
at full replacement cost of rights and, once rights are recognised, replacement cost for those non-residential
replacement or compensation at full buildings that are in full ownership of informal
replacement cost users of land
24 Enterprises Replacement or cash Replacement or cash compensation of Replacement or cash compensation of
compensation of structures structures and business re-establishment structures and business re-establishment
and business re-establishment assistance assistance
assistance
25 Business Compensation for If viable, provide support for the legal Targeted assistance covering lost income
employees termination or suspension of recognition of rights and, once rights are during the period required to re-establish
employment per PR2 recognised, compensation for lost income the business
or Livelihood restoration assistance if the
compensation for lost income business cannot be re-established
during the period required to re-
establish the business
or/and livelihood restoration
assistance if the business
cannot be re-established

25 See details in section 3.8.3.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

3.8.3. Project-affected persons in category (i) In dealing with informal settlers, clients should be mindful
Projects that affect persons of the second category per that the EBRD does not accept forced evictions, as detailed
PR5, paragraph 26 (see section 3.8.1) must provide free in section 3.1.4. Projects where a forced eviction is found
legal support to project-affected persons to regularise their to have taken place prior to the EBRD’s involvement will
ownership rights, such that they can receive compensation typically not proceed.
per category (i) entitlements. This may entail: 3.8.4.2. Eligibility of and benefits for informal users per PR5
• registering or re-registering ownership rights and issuing Informal users fall under category (iii) of PR5 paragraphs
related title documentation 26 and 28. The EBRD does not require the compensation
• regularising inheritance, marriages and divorces, of informal users of land that they do not own. However,
transactions or servitudes the Bank mandates compensation for any assets held
in ownership by informal users on the land they occupy,
• regularising or updating building permits and any missing
such as structures, be they residential or not, business
permits or certificates that local legislation may require.
equipment, irrigation or drainage structures, trees and
Projects should make legal services (qualified lawyers crops. The EBRD also mandates resettlement assistance
or notaries and paralegals) available to project-affected for all physically displaced groups, including informal users.
persons to support them in preparing documents and Such assistance does not necessarily involve access to a
applying to the relevant agencies, and monitor the process. replacement dwelling with full property ownership and could
The payment of fees associated with legal support is a include facilitating access to one of the following options,
project obligation. However, the payment of tax arrears, for example:
levies, duty and stamp rights, and so on due by project- • municipal or state social housing under an affordable
affected persons as a result of the regularisation process rental arrangement, as long as the “adequate housing”
is not necessarily a project obligation (although it may be criterion is met (see 3.15.4.) and there is reasonable
good practice in many cases and substantially expedite security of tenure (that is, a lease over several years)
the process).
• privately held rental housing
3.8.4. Informal users in category (iii) • facilitated access to a plot of land with security of tenure,
3.8.4.1. Background where physically displaced households can self-build
Many projects have to deal with informal settlers or land a residential house with project assistance, including
users occupying public land (and, more rarely, private accessing affordable financing mechanisms.
land) on an informal basis. In the economies where the A common situation in the economies where the EBRD
EBRD operates, people occupy public land designated for operates is that of herders informally using state, municipal
purposes other than construction for various reasons. For or community land to graze their animals. This is tolerated,
example, they settle in non-constructible areas for a lack but rarely formalised in a lease or similar legal agreement.
of other solutions, they establish informal shops, kiosks or In such cases, the project is expected to facilitate access
stalls along roads, or they build informal dwellings in areas by these herders to similar grazing land in a favourable
meant for flood protection or as safety buffers around location. Where possible, the formalisation of this
hazardous industrial facilities (and which are supposed to occupation should also be facilitated to provide improved
be empty of people). security of tenure.

Informal users have often occupied such areas for a long In addition, the EBRD mandates livelihood restoration for
time. They are generally tolerated by local authorities in economically displaced informal users based on principles
the name of social peace, but also because their presence similar to those that apply to registered owners. Livelihood
and livelihood activities can be both a source of inputs for restoration requirements also apply to informal users of
businesses or of income for local municipalities through natural resources, such as herders grazing animals on
market taxes or other levies. Sometimes, state utility state-owned, municipal or community-held meadows,
companies provide power or water to these informal areas, gatherers of berries, mushrooms, fuel wood in public
thereby sanctioning the informal occupation. forests, hunters, as well as fishermen using continental
or maritime water bodies on an informal basis, as long
Residents of slums or informal traders are sometimes as such fishing activities are not illegal (see 3.8.4.3) or
undocumented migrants whose rights to legal due process environmentally harmful.
are limited by regulations or by the fear of legal action, fines
or deportation. They may go unnoticed or be tolerated until Clients are not required to compensate or assist
a government agency requires the land where they live opportunistic settlers who encroach on the project area
or trade for public purposes. As a result, such people are after the cut-off date as long as this cut-off date meets the
particularly vulnerable to forced evictions and they will often conditions of PR5, paragraph 23.
be unwilling or unable to demand legal due process.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

It is important to note that these requirements of PR5 are 3.8.6. Cash versus in kind
unchanged from previous versions of the Performance Resettlement research has for many years documented
Requirements and in line with the policies of all major multiple examples of cash compensation failing to achieve
multilateral lenders. policy objectives due, among other things, to recipients
3.8.4.3. Illegal activities being unprepared to receiving relatively large amounts of
cash and resulting cash misuse, often to the detriment
Projects may affect illegal activities, such as the growing of women and children in the household. The EBRD
of plants for the preparation of narcotics, or illegal fishing supports in-kind compensation wherever possible, that is,
or hunting of prohibited species or in protected areas. resettlement through the provision of housing to physically
Sometimes, such activities are somehow supported by displaced people and the replacement of productive
national or international criminal organisations. The EBRD assets, particularly agricultural land, for economically
does not expect compensation for such activities. However, displaced people.
where the livelihoods of project-affected persons are based
on illegal activities, the EBRD expects livelihood restoration For physically displaced people, clients are expected to
activities to support conversion to legal alternatives, while identify suitable and reasonably attractive26 resettlement
recognising the difficulties inherent in such endeavours. solutions (which could be the construction of new houses or
Planning is delicate and may involve specialist assessments the purchase of existing properties) and propose them as
(potentially including a security assessment) and extensive an alternative to cash compensation (see section 3.15.1).
interaction with government and/or non-government
agencies handling such programmes. There are certainly legal and practical obstacles that
make land replacement more challenging than cash
3.8.5. Timing of payments compensation and projects frequently claim that it is
Compensation will be provided before displacement or the unfeasible or unacceptable to the people in question.
imposition of access restrictions on land or assets. This is a The EBRD requires that any such claims be fully
fundamental principle that is enshrined in the constitutions of substantiated by signed consultation minutes, with
many countries (“fair and prior compensation”). Resettlement adequate demonstration that women have been involved
plans must substantiate the mechanisms that are put in in discussions. It may also require a land availability study
place to ensure this principle is respected, including in to be carried out by an independent party (as part of the
government-led land acquisition. Exceptions to this principle resettlement plan) to assess whether replacement land is
may be acceptable (subject to EBRD review and approval) in available.
the following cases only, to be detailed in resettlement plans: In interpreting “land-based livelihoods”, it is important to
• where certain legal difficulties are experienced (absentee recognise that in many of the economies in which the EBRD
landowner, succession, ownership dispute before court), operates, so-called “backyard agriculture” and other forms
as long as due process has been followed under the of small-scale agriculture (including keeping some livestock)
control of a judge, notary or similar officer, and the can be critical to the livelihoods of poor people, particularly
compensation monies are deposited into a dedicated elderly pensioners living on small pensions, sometimes
escrow account (such account preferably remaining even in suburban or urban areas. The livelihoods of poorer
under the control of an independent party such as a people are often multi-dimensional, so affecting just one
judge or notary), with a proven mechanism to effect income stream, as small as it appears, can jeopardise
payment immediately upon resolution of the legal a households’ livelihood in a lasting way. People whose
problem primary activity is not agriculture may still depend on land
to such an extent that depriving them of this land could
• where a payment in instalments can mitigate the risks of
aggravate poverty.
cash misuse and subject to such payment being explicitly
consulted upon with the community and formally Where land is owned by a group of co-owners (typically
accepted by each recipient in a specific agreement that inheritors of the original owner), with one or more of
clearly indicates the timing and amounts of instalments. the co-owners actually using the land, the flaw in cash
“Prior to impact” means prior to the time that people are compensation is that the actual user will only receive a
unable to access their land, be it because construction of small fraction of the compensation, resulting in them being
the project has started or because land rights have been unable to purchase alternative land and their livelihoods
formally transferred. For agricultural land, it is always a good being jeopardised. As mentioned in PR5, paragraph 31,
idea, where possible, to take into account agricultural cycles the EBRD requires land-for-land compensation in such
when planning land entry to minimise impacts on livelihoods cases. This may also apply to land owned by communities
(for example, allow farmers to harvest). (for example, communal pastureland), for which in-kind
compensation is preferable.
26 In proper locations, built according to proper design and
standards, meeting adequate housing criteria and meeting the
expectations of affected people.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

Cash and in-kind compensation are not mutually exclusive. • Wherever it is legally possible (and it is, indeed, possible
Rather, combinations of the two often provide excellent in many jurisdictions), affected landowners should have
solutions that meet both the need for a safety net (a house the option to suspend the expropriation process at any
and/or agricultural land) and allow households to satisfy point before the final ruling and seek an out-of-court
some basic needs or pay back old debts. negotiated settlement.
3.8.7. Entitlements in an expropriation process • Where an indemnity is eventually awarded that is lower
than what was initially proposed, the project should
Where landowners reject negotiated compensation offers consider “topping up” this indemnity to achieve full
and the project has to resort to expropriation, this typically replacement cost and/or compensation rates negotiated
raises a number of potential issues: for all landowners.
• The judicial process may be complex and lengthy, • Where possible, the cost of expropriation should be
potentially resulting in the state seeking “urgent entry covered by projects where expropriation has to be
into land” as a first step in the expropriation process. In triggered for technical reasons (for example, with
some jurisdictions, land can be entered into based on an absentee landowners that cannot be contacted).
“urgent entry” ruling by a judge, with payment delayed • There must be no retaliation against people involved
to a later stage. This can result, for example, in farmers in expropriation processes. Specifically, their right
being deprived of their livelihoods with no immediate to access livelihood restoration activities and other
compensation. non-compensation-related project benefits must be
• The expropriation process could result in a lower safeguarded.
indemnity to the affected landowner than what was • EBRD requirements on the prohibition of forced evictions
initially proposed in the negotiated process. apply to people in an expropriation process.
• Expropriation may result in significant legal costs for the • Resettlement plans should precisely describe
affected landowner. expropriation processes and conditions that would trigger
• Expropriation may result in eviction where the landowner expropriation and address all points mentioned above.
consistently refuses to leave, in which case the
provisions of section 3.1.4 should apply. 3.8.8. Voluntary land donations
The EBRD recognises that projects are not always in a The acceptable way to acquire land is to compensate for it
position to exert leverage on the state agencies and judicial in kind or in cash per the requirements of PR5. Voluntary
bodies that take over land acquisition processes when land donations are not a typical way of acquiring land in
expropriation is triggered. This is the main reason why PR5 EBRD projects. Voluntary land donations are acceptable
requires negotiated settlements, with expropriation only a only as an exception, where all conditions mentioned in
last resort. Where expropriation is triggered, projects should PR5, paragraph 35 are met:
take the following steps: • The potential donor or donors have been appropriately
• Affected people should be properly informed of the informed and consulted on the project and the choices
implications of expropriation, including potential delays available to them.
in receiving compensation, the risks of “urgent entry into • The potential donor or donors have confirmed their
land” or similar mechanisms, the potential for a lower willingness in writing.
indemnity, where applicable, and available recourse • No coercion, intimidation or bribery has been used.
mechanisms. • The amount of land being donated will not reduce the
• Affected people must be informed, with adequate notice, donor’s current livelihood levels and the land donation
of the project’s intention to resort to expropriation and entails no residual livelihood impact.
such notices must be documented, as they can be • No household relocation is involved.
required by the EBRD for auditing purposes.
• The donors are expected to benefit directly from the
• Projects should continue to seek engagement with project.
affected landowners throughout the expropriation
process and affected persons should be able to access • For community or collective land, donation can only occur
the project grievance mechanism. with the consent of individuals using or occupying the land.
• Clients will maintain a transparent record of all
consultations and agreements reached.

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Any prospective land donation in an EBRD project must be reinstatement principles and designs are agreed and
submitted to the Bank for prior review and written approval. staff are appointed or reappointed in time. Where a
Donations sought by contractors or sub-contractors are new system has to be built, care should be taken that
covered by PR5 and the conditions above apply. this new equipment meets applicable standards and
can be permitted (for example, drinking-water quality,
Unsanctioned or undocumented land donations will be energy efficiency, and so on). The cost of the service
deemed tantamount to forced eviction. should also be assessed, as new affordability issues
3.8.9. Compensation for community-held resources may arise, so that the new facilities are affordable and
sustainable. Where necessary, specific provisions for
There are multiple examples in the economies where the
the vulnerable will need to be devised, so that they can
EBRD operates of natural resources being held in collective
access the service.
ownership (formal or informal) by communities (like high-
mountain pastureland in the Caucasus or “collective land” 3.9. Stakeholder engagement and grievance
in Morocco). The land may be formally titled to the state or a management
municipal entity, but communities hold a well-recognised (often 3.9.1. Stakeholder engagement
customary) usage right and sometimes formal ownership
rights. In such case, the following steps should be taken: Stakeholder engagement is central to land acquisition
and resettlement scoping, planning and implementation.
• understanding legal requirements (in some countries, PR10 principles apply to engagement undertaken for
there is a prescribed process for acquisition and land acquisition and resettlement.29 Any resettlement
compensation of such land) plan submitted to the EBRD must include:
• valuing the loss (sometimes difficult when there are no • a clear and detailed account of consultation
transactions on similar land) methods, events and outcomes, as well as relevant
• consulting the community on their compensation and documentation, such as signed minutes of meetings,
livelihood restoration preferences,27 prioritising, wherever which must be kept for potential auditing
possible, modes of compensation that will offset impacts • a plan for further consultation in the resettlement
on livelihoods and strengthen community governance,28 implementation period (alternatively, this can be
rather than simply sharing cash between residents presented in the stakeholder engagement plan for
• consulting direct users (who may be different to the the project).
customary owners, for example, nomadic or transhumant For sensitive resettlement activities, particularly where
herders using community land in a certain area), significant physical displacement is envisaged or where
particularly in view of access to alternative resources and indigenous groups or vulnerable parties are affected, the
livelihood restoration if there is a substantiated impact EBRD may require a specific stakeholder engagement
on their livelihoods plan for the resettlement process. This may be similar in
• reaching a negotiated settlement in the sense of section structure to the project stakeholder engagement plan,
3.1.5, including the associated formalisation and but with a specific focus on consultation, negotiation
documentation requirements. processes and information disclosure specifically related
to resettlement, as experience shows that formalising
3.8.10. Community facilities, utilities and public amenities
engagement planning into a document is generally
A project taking land may affect schools, health centres, useful to the project itself.
markets, administrative buildings and associated services,
water or power supplies, sanitation facilities, community 3.9.2. Safety of stakeholder engagement and remote
centres, and central heating facilities and networks, among engagement
other things. From a Covid-19 pandemic perspective, clients should
scrutinise potential stakeholder engagement activities
The EBRD requires the replacement of such equipment and/
in light of (1) measures prescribed or recommended by
or associated services to a similar or better level. This does
national authorities and (2) EBRD guidance on the topic,
not necessarily mean that a new facility has to be built,
including the Covid-19 stakeholder engagement guidance
but the replacement of the service could be through the
note,30 which lists a number of alternative methods
enhancement of existing equipment (for example, adding
for safe, remote stakeholder engagement involving no
classrooms to an existing school or expanding an existing
physical meetings. The use of online tools should ensure
water or heating network). This requires engagement
with the relevant agency or community, such that service personal data security and respect of privacy.

27 If there are impacts on livelihoods.

28 Examples include community projects, such as repairing a school or water system, livelihood projects, such as providing access to
veterinary services (or artificial insemination services) to affected communities, improving the quality of other available pasturelands and
supporting rational management of pasture land to avoid over-grazing.
29 See EBRD (2019), p. 47.
30 See EBRD (2020).

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

Where meetings are deemed necessary for meaningful The GLAC should be disseminated to all affected people and
engagement and are permissible, precautionary measures made broadly available in administrative offices (districts,
must be taken. This includes complying with all national municipalities), public libraries, on the project website
requirements and guidelines, ensuring that the venue is and social networks. In multilingual countries, it should be
accessible, applying social distancing and ensuring the prepared in languages accessible to those who are affected,
availability of handwashing and disinfectant facilities, which may include official and unofficial languages.
masks, and so on.
3.9.4. Grievance mechanism
3.9.3. Information disclosure 3.9.4.1. Overview
Requirements pertaining to the disclosure of resettlement The grievance mechanism can be part of the system
plans are detailed in section 3.10.6. However, resettlement established for the project as a whole per PR10,32 or
plans are often complex and bulky documents. They separate. The accompanying guidance note on PR10 provides
include multiple details that may be of limited interest to detailed advice on establishing a grievance mechanism.33 For
project-affected persons. This is why the EBRD requires projects with significant displacement impacts, or where land
(“simple, practical, accurate and culturally appropriate acquisition is managed separately from other impacts (for
documentation meant for broad dissemination to affected example, by a government agency), there are often benefits to
persons”),31 such as a guide to land acquisition and having a separate grievance mechanism for land acquisition
compensation (GLAC). A GLAC is not meant as a substitute and resettlement, also because land acquisition may
for a resettlement plan, the full disclosure of which remains start earlier than other project processes. Another reason
necessary in line with section 3.10.6. Rather, it should for keeping the two separate is the fact that the general
include practical, short and user-friendly information that grievance mechanism described in PR10, paragraph 29 does
project-affected people can use as a guide throughout the not necessarily include a recourse mechanism (although
land acquisition, compensation and (if applicable) relocation this is recommended),34 and the land acquisition and
process, such as: resettlement grievance mechanism must have one. All key
• key project and sponsor information, including relevant principles that apply to the grievance mechanism also apply
addresses and contact details to the resettlement grievance mechanism.35 The anonymous
processing of grievances and compliance with national data
• a summary description of project land and displacement
privacy requirements is also necessary.
impacts (physical, economical) with relevant numbers
and clear maps The grievance mechanism has to be in place from the
• eligibility rules inception of the land acquisition and resettlement planning
process (usually well before the resettlement plan is
• compensation principles and processes
submitted) and, specifically, prior to the declaration of cut-
• legalisation processes and associated project support, off and asset surveys, which typically generate a significant
where applicable number of grievances.
• compensation rates for the various types of affected
asset 3.9.4.2. Recourse mechanism
• survey process and cut-off date PR5 requires a recourse mechanism designed to resolve
disputes in an impartial manner to be included in the
• description of resettlement sites, where applicable
project grievance management system. This recourse
• resettlement assistance measures mechanism should be distinct from the judicial system;
• livelihood restoration measures aggrieved persons can resort to the justice system at any
• documents that project-affected persons should prepare step in the grievance process, but they should also be given
(such as identity documents, land titles, building permits, an opportunity to appeal the project’s initial decision without
passports and so on) resorting to the courts. The arrangements are context
specific and could include the following:
• contact information for community representatives and/
or local authorities involved in the land acquisition and • forming a local grievance committee, which could include
resettlement process local authorities, municipal counsellors, representatives
• grievance management, relevant avenues and contact of project-affected persons (both male and female) and
information. civil society (such as NGO representatives or religious
leaders); such committees can be established for each
31 PR5, paragraph 39. sizable affected community or be project-wide, depending
on the size of the project-affected area and taking into
32 See EBRD (2019), p. 47.
account cultural and socio-political sensitivities
33 See EBRD (2023). • using local representatives of national ombudsman
34 See EBRD (2019), p. 47. services where these are available at a reasonable
35 Ibid. distance from the project site.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

3.9.4.3. Mediation services • livelihood impacts and livelihood restoration and

For projects with significant displacement impacts, it improvement measures
may be expedient to arrange for mediation services be • monitoring (inputs, outputs, livelihoods)
provided to aggrieved persons by an independent party, • resources for implementation, roles and responsibilities,
which could be a local lawyer with such experience or an budget and implementation schedule
NGO. The mediation can be triggered through the recourse
• annexes – lists of affected plots, lists of affected
mechanism described in the previous section.
households and their characteristics, relevant maps and
3.10. Resettlement planning documentation photographs, minutes of relevant meetings.
3.10.1. Applicability of the requirement for a 3.10.3.2. Projects with physical displacement or significant
resettlement plan economic displacement
Where PR5 is applicable (see sections 2.1 and 2.3), The template structure of a resettlement plan (including
the EBRD requires a resettlement plan. No project that situations that entail physical displacement) is presented in
triggers PR5 is exempt from the requirement to prepare Appendix 3.
a resettlement plan and submit it to the EBRD. This
requirement applies regardless of the magnitude of 3.10.4. Resettlement framework
displacement (that is, it starts from one land plot and one The EBRD normally requires a resettlement plan, including
household). a detailed impact assessment based on the results of
detailed asset and socio-economic surveys in the final
However, as detailed in other sections of this note, the project footprint, prior to the project’s consideration by
scope, contents and preparation arrangements of the the EBRD Board of Directors. In exceptional cases, where,
resettlement plan must be proportionate to the magnitude for compelling reasons, the project design is not finalised
of impact. at the time of submission to the EBRD Board, it may be
3.10.2. Title of resettlement plan acceptable, subject to the approval of the Bank during due
diligence, to postpone the preparation of a full resettlement
Resettlement plans are named as such, per PR5, for the
plan, as long as a resettlement framework is submitted
sake of clarity and simplicity. This is the recommended title.
as a first step. Similarly, a resettlement framework may
However, the name of the document can be changed if it is
be acceptable for certain linear projects or projects with
deemed more conducive to engagement with stakeholders,
several sub-components.
particularly to avoid confusion or concern in projects
with no physical displacement or where translation of Where the project footprint can be partially identified at
the word “resettlement” may cause confusion in national the time of project submission for the consideration of
and local languages. For example, “land acquisition and the EBRD Board of Directors, the EBRD may require a
compensation plan”, “land acquisition and livelihood resettlement framework that covers all impacts, while a full
restoration plan” and multiple variations on these terms resettlement plan will cover that part of the footprint already
are all acceptable, as long as they adequately reflect the fully identified. One or several resettlement plans will be
substance of the plan. submitted and disclosed (per the rules in section 3.10.6)
over the course of the loan disbursement to cover the rest
3.10.3. Contents of the resettlement plan
of the project footprint at mutually agreeable milestones.
3.10.3.1. Projects with minor land acquisition impacts
Where a resettlement framework has been submitted
The resettlement plan can be brief and should present the
earlier, further resettlement plan(s) can be simplified and do
following (see also Appendix 4):
not necessarily need to repeat materials already presented
• the extent of impacts (number of affected land in the resettlement framework, such as the legal review,
plots, affected households, affected individuals), key for example. However, materials and data related to the
characteristics of affected land and other assets particular impacts covered by the plan must be presented
(structures, crops, trees, natural resources), location on in full (including, for example, the results of surveys and any
map(s) entitlements that are specific to the area being considered).
• eligibility criteria, cut-off date, results of asset surveys Public disclosure rules applicable to resettlement
and socio-economic surveys frameworks are the same as those for resettlement plans
• entitlements (valuation methodology, compensation (see section 3.10.6).
rates, payment procedures)
The template structure of a resettlement framework is
• consultations carried out to date and key outcomes, plan
presented in Appendix 5.
for further consultations, grievance management system

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3.10.5. Independent preparation of resettlement plans (or 3.10.8.2. Category B projects

frameworks) For category B projects falling under categories (ii) and (iii)
For any project outside of the scope of PR5 paragraph 41 of PR5, paragraph 41, the Bank may also require the public
(i) (projects with minor land acquisition impacts – see also disclosure of resettlement plans where the magnitude of
section 3.10.3.1), the EBRD requires that the resettlement displacement impacts is significant.
plan be prepared by an independent party. This is the case
for any project involving physical displacement or significant 3.11. Organisational capacity and commitment
impacts on livelihoods. For projects within the scope of PR5 Land acquisition and resettlement are resource-demanding
paragraph 41 (i), a brief resettlement plan can be prepared activities, in terms of staff, logistics and budget.
and submitted by project personnel themselves. As part of its review of resettlement plans, the EBRD will
closely scrutinise the implementation of organisational
The EBRD will advise projects in the early stages of due
arrangements, including roles and responsibilities,
diligence whether they trigger PR5 and are deemed to fall
particularly where external parties are involved in the
under PR5 paragraph 41 (i).
implementation, budget, implementation schedule,
3.10.6. Changes to resettlement plans capabilities of proposed staff members, reporting channels,
monitoring and documentation resources, training and
An update or addendum to the resettlement plan can
capacity-building arrangements. The land acquisition
be required if there is a significant change in the socio-
and resettlement schedule must be presented in the
economic context of the affected communities and if
resettlement plan in a manner that allows checks on its
there are material design changes that entail significant
consistency with the overall project development schedule.
changes to the footprint and/or number of affected people
since approval of the initial resettlement plan. This should The resettlement plan is a project commitment. The project’s
be discussed and agreed with the Bank on a case-by- environmental and social action plan (ESAP) will refer to it
case basis. as one of the management plans against which the EBRD
will assess project performance as part of its project
3.10.7. Formal endorsement of resettlement plans
monitoring activities.
The project sponsor must demonstrate commitment to the
resettlement plan, including its budget and implementation 3.12. Government-managed land acquisition and
arrangements. The forms this commitment can take will be resettlement
discussed with the EBRD at the time of project review and
3.12.1. Background
due diligence. For public institutions, it could take the form of
a decree or order by the relevant head of agency. For private Any project financed by the EBRD is required to comply
companies, it could be by way of a letter confirming full with PR5, regardless of the organisational and financial
endorsement of the document. arrangements pertaining to land acquisition and
resettlement. In many jurisdictions, land acquisition for
3.10.8. EBRD disclosure of resettlement public purpose projects is a responsibility of the state,
planning documents even where the project is implemented and financed
3.10.8.1. Category A projects by a private investor. This is often the case for public-
For category A projects, the EBRD requires public disclosure private partnership (PPP) projects. In such situations, the
of the resettlement plan as part of, and concurrently with, government will implement land acquisition according to
the ESIA (typically, the resettlement plan is one volume applicable legislation. However, there may be gaps between
of the ESIA), as foreseen in PR10 and the EBRD’s 2019 local legislation and this PR, including one or several of the
Access to Information Policy. This applies to all category following:
A projects, including those falling under PR5, paragraph • Acquisition of land by the state usually involves limited
41 (i), for which the resettlement plan should meet the consultation – there will generally be prior disclosure of
requirements presented in section 3.10.3.1, and those the state’s plans in various forms, but no consultation
falling under PR5 paragraph 41 (ii) and (iii), for which the on entitlements and other aspects as required by
resettlement plan should meet the requirements presented international standards.
in section 3.10.3.2.
• Public interest and expropriation may be triggered
Any confidential personal information contained in without prior attempts to reach negotiated settlement.
resettlement plans or frameworks will be removed from • With a few exceptions, compensation for structures
the versions meant for public disclosure. This may include is at market or depreciated value rather than full
lists of project-affected persons, certain photographs and replacement cost.
information on income, among other things.

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• Compensation for land may be at cadastral value (or ○ in-kind compensation (resettlement, land-for-
similar mandatory requirements), which is generally lower land) and legal avenues to deliver such types of
than the market or full replacement cost. compensation
• Provisions for compensation of businesses may fall short ○ consultation and negotiation prior to expropriation
of international requirements. procedures
• People cannot choose between several compensation ○ rights of informal users
options—compensation is typically in cash only, although ○ risk of forced evictions
some jurisdictions have provisions for resettlement,
○ baseline studies
replacement properties or property exchange.
○ livelihood restoration programmes.
• Informal users are typically excluded from compensation.
• Benchmark other projects benefitting from the support
• Evictions may have taken place with limited safeguards
of international financial institutions (IFIs) in the country,
or due process.
as it is likely that other IFI-backed projects have faced
• Livelihood restoration is usually not required, and similar issues in aligning government practice with
livelihood or other socio-economic baseline information their standards, and use lessons learned from their
is not gathered as a result. experience.
• There may be no specific provisions for vulnerable people • Engage government on the benefits of PR5 and provide
in land-acquisition legislation, although there may be capacity building if required.
other legislative acts protecting vulnerable people.
• Engage the government on a “top-up” approach,
• Gender-related risks are rarely considered. whereby government takes care of compensation in
• Planning documents (resettlement plan or framework) line with national legislation, while project-specific top-
are generally not required. up measures are developed and paid for separately
• Monitoring and evaluation are not required. by the project developer. Where cash top-ups are not
acceptable to government, look at the possibility of
• Government agencies may be reluctant to provide better
implementing in-kind top-ups.
treatment to people affected by a specific project and
could invoke a “precedent effect” that they believe will • Look into cost-sharing arrangements, whereby the
make further land acquisition under usual government government provides the funds for compensation in
conditions difficult or impossible. accordance with national legislation, while the private
project developer finances supplemental costs arising
Where local law or project-specific legal arrangements
from the application of EBRD PRs (i.e. additional
require the government to lead land acquisition, these gaps
compensation contributions, livelihood restoration and
may be difficult to overcome unless addressed specifically
compensation for informal users who are not eligible for
by the project proponent early in the development
compensation in line with the national law).
process, and provided in project agreements or other legal
documentation. • Look into the rules governing the channelling of funds and
disbursement of government funds and check whether
3.12.2. EBRD client obligations in government-managed funds can be made available before land is required
land acquisition (compensation to be delivered prior to land entry).
3.12.2.1. Gap analysis and government engagement • Seek formal agreement from government on key areas
Scoping issues that might arise as a result of a government where regulation is not aligned with PR5.
leading land acquisition should be flagged as early as • Formalise government commitments in an agreed
possible, so that mitigation actions can be developed supplemental resettlement plan.
and legally formalised. This requires engagement with • Check at what level of government the supplemental
the relevant government agency, as mandated in PR5, resettlement plan needs to be approved.
paragraph 46 (i), and should be factored into the project
schedule. Cases where such engagement is not successful 3.12.2.2. Avenues for meeting gaps in government practice
must be reported early to the EBRD. The gap analysis This is one of the most difficult issues in government-
process should: managed land acquisition. For example, government
• Review national legislation against PR 5 requirements officials are generally reluctant to accept higher
and identify gaps (if any), with focus on the following: compensation rates, as they allege this would create a
“precedent” effect or might expose them to allegations of
○ compensation at full replacement cost and related misuse of public money. In PPP projects, or other projects
valuation methodologies (detailed analysis of gaps involving a private partner, the private partner is usually able
in government valuation methods against to bridge gaps and fund these measures, for example using
full replacement cost methodology as detailed in a resettlement action plan fund (for compensation beyond
this guidance note)

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

national legal requirements) to disburse compensation In such situations, the EBRD will review previous activities
to ineligible project-affected people, which can be co- and check compliance with PR5 provisions or deviations
managed with the responsible government agency. In fully from them. Where necessary (see section 3.13.2), an audit
public projects, other avenues will have to be found. When may need to be commissioned and any deviations will need
compensation cannot be increased to meet replacement to be addressed to the satisfaction of the Bank.
costs or broadened to cover ineligible categories, it is often
advisable to seek to offset insufficient compensation by 3.13.2. Audit and corrective action plan
paying allowances or livelihood restoration benefits that will Where the EBRD’s interaction with a client, other relevant
not be presented as part of compensation. In such cases, parties and available documentation does not provide a
terminology may become important from a government clear picture of how past land acquisition was implemented
perception perspective. or of the strategy going forward, or where significant gaps
to PR5 provisions are presumed, an audit of past land
3.12.2.3. Supplemental resettlement plan acquisition will be carried out at the project sponsor’s
The supplemental resettlement plan must meet the expense to establish the following:
requirements of PR5, paragraph 48. It should include:
• cut-off date, census, past implementation of eligibility
• a description of the entitlements of displaced persons criteria and consultation on these aspects
provided under applicable laws and regulations • compensation packages and an assessment of
• the measures proposed to bridge any gaps between such compensation rates paid against the replacement cost
entitlements and the requirements of PR5 requirement
• the financial and implementation responsibilities of the • livelihood restoration, including any facilitation to relocate
government agency and/or the client in the execution of to alternative settings
this plan. • clearance of the project area and conditions surrounding
In cases where land acquisition and resettlement have its implementation (notifications, due process, grievance
been undertaken by a government agency prior to the management, use of public force, any violence reported)
EBRD’s involvement (as detailed in section 3.13), the • grievance redress (accessibility, transparency, fairness,
supplemental resettlement plan and the corrective action effectiveness).
plan described in this guidance note (section 3.13.2) will be
Comparing aerial photographs in time sequence can be
the same document.
very helpful to detect any significant changes in occupation.
3.12.2.4. Responsibilities In urban areas, the resolution of publicly available satellite
Clients are responsible for meeting the objectives of the imagery and the time sequences available are generally
EBRD PRs. This holds for compliance with PR5 in the case sufficient to achieve this.
of government-managed land acquisition. Here, clients are For projects with significant impact, the audit will be
expected to deploy a best-endeavour approach and report undertaken by an independent party acceptable to the
any issues to the EBRD. Where possible (for example, on EBRD. The project will be expected to provide all relevant
certain PPP projects), the EBRD should seek to formalise information in a transparent and straightforward manner.
government commitments with regard to the Performance For projects with lesser impacts, an internally established
Requirements in a tri-partite agreement. history and documentation of processes may be acceptable
but, generally, the involvement of an experienced
3.13. Land acquisition and resettlement resettlement specialist with experience in PR5 application is
undertaken prior to the EBRD’s involvement advisable.
3.13.1. Principles
Where gaps are observed, the audit will result in a corrective
Any land acquisition carried out as part of an EBRD action plan to address any PR5-related shortfalls. The
project prior to the Bank’s involvement has to conform to project sponsor will be responsible for implementing
the objectives and principles of PR5. This also applies to this corrective action plan, which will entail the same
situations in which such land acquisitions were undertaken commitment as a resettlement plan (it will be referred to in
by another entity (for example, in a PPP project, where the project ESAP). The corrective action plan should include:
land acquisition was undertaken by the state or where
the project operator changed between the time of the • a description of all activities needed to achieve
land acquisition and when the project was proposed to compliance with PR5
the EBRD). • a time-bound action plan with clear milestones and
deadlines
• a description of implementation arrangements, including
a budget, an implementation schedule and a clear
allocation of roles and responsibilities.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

3.14. Monitoring and evaluation • a description of efforts to avoid and minimise

3.14.1. Overview displacement that may have taken place during the
monitoring period
Monitoring and evaluation (M&E) is a key component of
the resettlement and livelihood restoration process and • a summary of consultation events and outcomes
is, therefore, a requirement of PR5. The M&E process • a description of any issues encountered and how they
examines what works and what does not, why it works or were resolved
why it does not, and what needs to change. It is meant • a summary of grievances received and how they
to track progress and to report, but also – and more were resolved, including how commitments related to
importantly – to guide action, particularly where correction grievance processing (particularly average and median
is needed. time to resolve a grievance) were met
Monitoring is a recurring task that starts from the • livelihood restoration activities during the monitoring
resettlement planning stage and involves the measurement period
through time of information for three purposes: • activities meant to support vulnerable people
• to identify deviations from objectives and commitments • a gender sensitivity review of activities implemented
so that corrections can be made where needed during the monitoring period
• to learn from experience to improve future practice • a description of resources mobilised to implement land
acquisition, resettlement and livelihood restoration
• to strengthen accountability and transparency on activities
progress and issues encountered.
• key results of internal monitoring (and external, if
Evaluation assesses the performance of a completed applicable), including how findings of external compliance
project against initial objectives, as well as its compliance reviews (if relevant) were followed up.
with policies, standards and the initial resettlement plan.
Improvements and corrective actions are recommended, 3.14.3. Land acquisition and resettlement execution report
and learning occurs through evaluation. It is typically based Clients submit a land acquisition and resettlement
on data gathered during the monitoring exercise. execution report to the EBRD upon completion of land
acquisition and resettlement activities (that is, completion
Regardless of the magnitude of impacts, all projects that of compensation delivery and processing of grievances,
trigger PR5 are expected to undertake internal monitoring not necessarily including all ongoing livelihood restoration
per the provisions in section 3.14.2 and to submit a activities, which may span a number of years after all
land acquisition and resettlement execution report (see compensation has been delivered).
section 3.14.3). Projects with more significant impacts are
also expected to have independent external monitoring The report should be structured as follows:
(either compliance reviews or a completion audit, or both)
• a summary of final project impacts (both physical and
in accordance with the provisions of sections 3.14.4
economic displacement)
and 3.14.5.
• a summary of key principles, including cut-off and
3.14.2. Internal monitoring and reporting to the EBRD entitlements, guiding the resettlement plan
As part of regular project monitoring obligations arising • a description of efforts to avoid and minimise
from PR1 (paragraph 32), clients submit environmental displacement
and social monitoring reports to the EBRD. Where PR5 • a summary of consultation events and outcomes,
is triggered, these reports must include a chapter on including how they influenced entitlements and other
land acquisition and resettlement. The frequency of features of the land acquisition, resettlement and
submission is normally annual, but for projects with livelihood restoration process, and any provisions made
significant displacement impacts, the EBRD may require to ensure inclusion of women and vulnerable persons in
more frequent reporting (to be specified in the ESAP and/ engagement activities
or loan agreements). The chapter of the environmental and
• a description of the compensation delivery process,
social monitoring report dedicated to land acquisition and
including cash and in-kind compensation, as applicable
resettlement (or the standalone internal land acquisition
and resettlement monitoring report, as the case may be) • livelihood restoration activities and their interim results
should be structured as follows: • activities meant to support vulnerable people
• progress of land acquisition and resettlement activities • a gender sensitivity review of activities
during the monitoring period, with relevant numerical • a description of any issues encountered and how they
indicators, such as number of households moved or were resolved
compensated, compensation paid into escrow accounts,
progress on implementation of livelihood restoration
activities, and so on

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

• a summary of grievances received and how they were • check on any grievances that may have been left
resolved, including the list of any grievances and court outstanding
cases pending at the date of submission of the report • check that any physically displaced people are living in
• a description of resources mobilised to plan and adequate housing with security of tenure
implement land acquisition, resettlement and livelihood • identify any corrective actions necessary to achieve
restoration activities the completion of resettlement plan commitments,
• key results of internal monitoring (and external if particularly additional livelihood restoration, should
applicable), outstanding issues and lessons learned. livelihoods of certain groups be demonstrated not to
have been restored.
3.14.4. External compliance reviews
The completion audit should be conducted by an
Compliance reviews are meant to check whether the independent expert, in coordination with project teams.
implementation of land acquisition and resettlement It is expected to focus on livelihood restoration and should
complies with the PR5, the resettlement plan and local build on previous internal and external monitoring and the
legislation. Such reviews can be integrated into a broader land acquisition and resettlement execution report. It will
independent monitoring scope that covers compliance generally include a comparison of the post-resettlement
with all PRs by an independent environmental and social economic situation of affected households with the
consultant or similar) as mandated under PR1, paragraph baseline data. Where a large number of households have
35. Compliance reviews are mandated for higher-risk been affected, a representative sample can be used.
projects (with significant displacement impacts). This comparison usually requires a certain period of time
The reviews are an ongoing exercise that covers planning to have elapsed since the disbursal of compensation for
and implementation until the completion audit, or until livelihood measures to have been effective. As a result,
the compliance reviewers declare that resettlement completion audits are typically undertaken a few years
and compensation are complete if no completion audit after compensation has been disbursed and resettlement
is expected. Compliance reviews typically take place assistance and livelihood restoration activities have been
from once every year to once every quarter for the most completed, within the validity period of the loan agreement.
sensitive projects. Where compliance reviews are expected, The completion audit report should present conclusions
clients are expected to recruit an independent reviewer on livelihood improvement or restoration and identify
acceptable to the EBRD based on a scope of work to be any corrective measures necessary to achieve livelihood
submitted for the Bank’s approval. Compliance reviewers restoration (at a minimum) of displaced households.
should have unlimited and independent access to affected The scope, timing and implementation arrangements
persons for interviews and consultation, as well as to other for the completion audit should be presented in the
stakeholders, and be able to carry out their investigations resettlement plan, along with clear completion criteria
without interference from the project. that the project will be expected to meet.
The need for compliance reviews is assessed by the EBRD The need for a completion audit is assessed by the EBRD
during due diligence and will be sanctioned in the ESAP. during due diligence and will be sanctioned in the ESAP. The
Compliance review reports are submitted to the EBRD and completion audit report is submitted to the EBRD and may
may be publicly disclosed. EBRD staff may join compliance be publicly disclosed.
reviews as part of the Bank’s own monitoring activities.
3.15. Physical displacement and resettlement
3.14.5. External completion audit assistance
The completion audit is mandated for higher-risk projects 3.15.1. Physical displacement also entails economic
(with significant displacement impacts). It aims to verify displacement
that PR5 has been met and that the livelihoods of affected In most cases, physical displacement also entails economic
people have been improved or at least restored. It can take displacement. The livelihoods of displaced people are
place only after the Bank has approved the land acquisition obviously impacted, usually because they lose productive
and resettlement execution report. Key objectives of the assets, such as agricultural land or businesses, or
completion audit are to: simply because of the disruption caused by the move.
• verify that all entitlements and commitments described Economic displacement is addressed separately for the
in the resettlement plan and committed upon therein sake of clarity, but people who are physically displaced
have been delivered will also require livelihood restoration measures per PR5,
paragraphs 61 to 63.
• determine whether measures have been effective in
restoring or enhancing affected persons’ living standards
and livelihoods, including men and women, as well as
vulnerable people

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

3.15.2. Physical resettlement strategies 3.15.3. Security of tenure

The EBRD recommends that physical resettlement The EBRD requires that physically displaced people be
strategies be based on the provision of adequate offered a replacement property with security of tenure.
replacement properties rather than cash compensation. For people that previously owned a property in full (be
Where a client is proposing cash compensation to it formalised or not), this means that any replacement
address physical displacement, the EBRD will require it property should also be owned in full, with documented
to demonstrate that project-affected persons, including ownership rights (that is, a perpetual title). For informal
both genders and potentially vulnerable groups, have been users or tenants that had no property rights prior to the
meaningfully consulted and have overwhelmingly stated project, while it is good practice to offer ownership rights if
their preference for cash compensation (see section 3.8.6). possible, long-term leases in social housing, for example,
Physical resettlement may involve one or a combination of could also be acceptable. For tenants, a cash payment to
the following strategies: allow them to pay a deposit to secure a new dwelling is also
adequate. It is typically three to six months of rent.
• development by the project of a resettlement site and the
reconstruction of dwellings 3.15.4. Adequate housing
• purchase of existing properties and allocation to Adequate housing should meet the following criteria:
physically displaced households
• adequate privacy
• construction by the project of new dwellings within
the fabric of an existing community rather than at a • adequate space
dedicated resettlement site (“in-fill” resettlement) • physical accessibility
• facilitated self-build of dwellings either in a dedicated • adequate security
resettlement site or in “in-fill” land plots. • security of tenure
All options have their pros and cons, which are context • structural stability and durability
specific. The selection of one or more options should • adequate lighting, heating and ventilation
involve thorough consultation with all strata of the
• adequate basic infrastructure, such as water-supply,
affected communities. For projects that physically displace
sanitation and waste-management facilities
significant numbers of people, it is good practice to offer
several options and/or resettlement sites. • suitable environmental quality and health-related factors
• adequate and accessible location with regard to work
All PRs apply to the development of resettlement sites as
and basic facilities
part of the project. Specifically:
• affordability.
• an ESIA may be required under PR136 Most of these criteria are context specific. Many of the
• PR2 applies to workers employed to develop the economies in which the EBRD operates have stringent
resettlement site and build resettlement housing37 building and housing standards, and most criteria for
• any secondary displacement at the resettlement site adequate housing are supposed to be achieved by applying
itself must be managed according to PR5 and the main these standards. However, there may be certain gaps in the
project resettlement plan standards or in their actual implementation by architects
• consultation with host communities must take place in and contractors (for example, accessibility), and standards
line with the principles of PR1038 typically do not cover all aspects of adequate housing (for
example, location or security). Consultation with affected
• care must be taken to deal with any biodiversity groups and other stakeholders, such as national housing
and cultural heritage issues at resettlement sites in regulators and architects, is paramount in arriving at
accordance with PR6 and PR8, respectively.39 suitable, adequate housing criteria in the context of the
project area. In addition, resettlement is not conducive
to experimentation and only proven technologies and
materials must be used.
3.15.5. Resettlement assistance
Resettlement assistance is required where people are
physically displaced by a project and is meant to minimise
the disruption caused by a move. Resettlement assistance
will vary according to the type of entitlement (provision of
36 See EBRD (2019), p. 13.
a replacement house or cash compensation) and category
37 See EBRD (2019), p. 16. of those affected (owners versus tenants, residents versus
38 See EBRD (2019), p. 47. non-residents).
39 See EBRD (2019), p. 35 and 42.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

Resettlement assistance must be discussed with affected 3.15.7. Contents of the resettlement plan in case of
persons, including women, and should include: physical displacement
• for residents, whether owners or tenants: The template structure of a resettlement plan (including
situations that entail physical displacement) is presented in
○ support in moving belongings, either in kind
Appendix 3.
(provision of moving services) or in cash (moving
allowance covering the cost of a self-move) 3.16. Economic displacement and livelihood
○ support with administrative formalities, such as improvement or restoration
registration at the new address and updating 3.16.1. Overview
identity documents
In the spirit of PR5 and other similar standards,
○ support in re-establishing utilities at the new compensation addresses affected assets such as land,
location structures or trees, while livelihood improvement or
○ support in establishing resident committees, restoration aims to address impacts on livelihoods resulting
management arrangements and cost from the impacts on those assets. Livelihood restoration
recovery mechanisms where there are common is neither part of compensation nor a “nice to have”; it is a
facilities that require collective management project obligation wherever livelihoods are affected, on top
(such as lifts, gardens or playgrounds) of compensation. As a result, livelihood restoration should
• for resident tenants: be separate from both compensation and community
○ support in identifying a replacement dwelling development and other “corporate social responsibility”
activities, which are not usually project obligations arising
• for non-residents:
from the need to mitigate impacts. It should be separately
○ no specific assistance. funded and monitored.
3.15.6. Impacts of physical resettlement on host
As mentioned in section 3.15.1, physically displaced people
communities
are also economically displaced in the vast majority of
Any secondary impacts of an influx of resettlers into an cases. The requirements of PR5, paragraphs 61 to 63 and
existing community must be assessed and managed the following sections, therefore, also apply to physically
in close consultation with all relevant stakeholders in displaced people.
that community. Typical examples of impacts on host
communities include: The EBRD, like similar institutions, requires that impacts
on livelihoods be assessed as part of resettlement plans
• land take for resettlement sites and associated livelihood (through socio-economic surveys), be mitigated through
impacts specific activities and that the improvement or restoration
• additional load on utilities (water, power, sanitation), as be monitored until the completion audit shows that
well as educational and health facilities objectives have been met.
• conflict over the use of natural resources, such as grazing PR5, paragraph 63 provides guidance on the types of
land or fishing grounds, among other things activity suited to various impacts. Livelihood restoration
• potential conflict and jealousy between “haves” (the should be adequately funded and implemented by
resettlers) and “have-nots” (the hosts) competent personnel with the right experience. There
• cultural differences between communities. is no room for experiments where livelihoods have been
Any land acquisition, physical or economic displacement affected; only proven techniques and implementation
affecting a host community must be managed in partners should be used. Linkages are often key (with state-
accordance with PR5, that is, seeking avoidance and funded economic development programmes, agricultural
minimisation, then compensating for any residual impact development agencies and, possibly, existing cooperatives,
according to the same principles that apply to affected training institutes, business promotion agencies and
people. In addition, indirect impacts on utilities and NGOs). The involvement of government agencies is often
community facilities in host communities should be paramount in sustaining support and long-term monitoring.
mitigated through the expansion of capacity (including
both facilities and staff, as applicable). Indirect impacts on
communal natural resources, such as increased pressure
on grazing land or water bodies, must also be addressed,
for example, through support for better management. Lastly,
it is good practice to offset impacts on host communities by
including them in livelihood improvement activities designed
for directly affected persons.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

3.16.2. Examples of livelihood restoration activities in typical situations

Table 3: Examples of livelihood restoration activities in typical situations

Situation Indicative livelihood restoration activities

Linear project with marginal Support for the intensification of agricultural activities (improvement of soil preparation techniques,
impacts on a large number of use of improved varieties, fertilisation); support for better marketing of agricultural production;
agricultural land plots linkage of affected farmers with existing agricultural development initiatives
Large footprint affecting whole Support for access to replacement agricultural land; support for the intensification of agricultural
agricultural plots techniques; pension schemes for older farmers; training for younger farmers and consideration of
the development of alternative activities; facilitation of access to credit
Physical displacement of a In addition to the above, look at re-establishing backyard gardening, which may provide an
rural community important source of livelihood to the most vulnerable part of the population (particularly the
elderly); replace houses with gardens with houses with gardens rather than apartments; re-
establish breeding of small animals (poultry) and support improved techniques (health, feed)
Large footprint affecting Support for access to alternative grazing areas; support for improvement in animal husbandry
pasture land techniques (for example, improvement of animal feed, forage crops, animal health, artificial
insemination); facilitate access to financing; improve marketing, including storage and/or
processing of milk

Urban project with impacts on Support for the re-establishment of businesses in other locations (identification of sites and
existing businesses facilitation of access by businesspersons to these sites); support for improved business
management; support for the formalisation of informal businesses; linkage with existing business
support programmes; linkage with micro-finance institutions or commercial banks to improve
access to financing

Road widening affecting roadside Establishment of parking areas where roadside businesses can be relocated; support for
businesses, such as small cafés management and formalisation; linkage with existing business support programmes; linkage with
and restaurants or fruit sellers micro-finance institutions or commercial banks to improve access to financing
Ship terminal or port and Support for improved fishing techniques; provision of improved equipment; certification of produce
associated manoeuvring areas where possible (eco-friendly fishing or similar); support for improved marketing (including cold-
affecting fishing-vessel movement chain and transport); establishment of cooperatives or similar groupings; improved management of
and fishing grounds fishing enterprises; access to credit

The examples in Table 3 are provided for general guidance only. Each situation is specific, and livelihood restoration
planning should rely heavily on consultation with affected people, including women and vulnerable persons, government
agencies specialising in the delivery of economic development programmes and local experts with relevant experience
(agronomists, biologists, veterinarians, business development and training specialists, and so on).

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

3.16.3. Specifics in the case of informal users 3.17. Impacts on indigenous groups
Livelihood restoration is a PR5 obligation for all Where a project affects indigenous groups (as defined in
economically displaced persons, including informal users PR7),40 impacts on customary lands and resources and
that may not be eligible for compensation for land. physical displacement are two of the three circumstances
that trigger free, prior and informed consent (FPIC).
Farmers or herders informally using affected public land,
The “collective attachment” of indigenous peoples to their
as well as sharecroppers or renters on affected public or
lands and resources quite often constitutes a unique way
private land, must be included in agricultural livelihood
of viewing life itself. Retaining the integrity of their habitat
restoration meant for affected farmers in general,
and avoiding impacts is, therefore, of central concern
notwithstanding their informal status. This may involve
in any project that affects indigenous groups. In such
access to replacement land and/or other initiatives to
circumstances, it is critical that the environmental and
enhance agricultural productivity.
social assessment capture the details of land use and
Similarly, livelihood restoration activities must be devised for the land tenure system, ensuring that communally held
small businesses informally occupying public space, on top lands under use are included in the assessment of project
of the compensation described in PR5, paragraph 53, first impacts and risks and that maximal efforts are made to
bullet point. The best approach is usually to facilitate access avoid or minimise lands used by the project. If impacts on
to an alternative location: customary lands and resources are unavoidable, clients
must obtain the FPIC of the affected indigenous people.
• In rural areas, there are multiple examples in Central In addition, any impacts on lands and resources resulting
Asia and the Caucasus where the reconstruction of in physical or economic displacement must be managed
an intercity highway provided an opportunity to build in accordance with the requirements of PR5. It is also
regularly spaced parking areas, where farmers selling advisable that clients secure the services of qualified
food or farm produce can establish a stall or kiosk in specialists to conduct studies of land use and land-
safer conditions. This can allow public authorities to tenure systems.
collect a modest levy on such sales, an obvious win-win
outcome. PR7 emphasises that avoiding relocation is the top
• In urban areas, the access of small businesses to formal priority for project planning (paragraph 18), a principle
markets should be facilitated; interaction with municipal that is also fundamental to PR5. As with loss of lands and
authorities is needed to identify alternative locations resources, the issue of relocation is fraught with danger
where small businesses can be re-established. as, regardless of the goodwill and compensation involved,
resettlement almost unavoidably results in negative social,
economic and cultural impacts on indigenous peoples.
For many indigenous peoples, “collective attachment” is
real. When physical displacement is unavoidable, clients
need to obtain the FPIC of affected indigenous people
and work collaboratively with them to plan resettlement
according to their needs and wishes and consistent with the
requirements of PR5.

40 See EBRD (2019), p. 39.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

Appendix 1. Glossary
Term Definition

Adequate Adequate housing comprises adequate privacy, space, physical accessibility, security, security of tenure, structural
housing stability and durability, lighting, heating and ventilation, basic infrastructure, such as water supply, sanitation
and waste-management facilities, suitable environmental quality and health-related factors, an adequate and
accessible location with regard to work and basic facilities, and affordability.
Affected A community affected by the project as defined by PR1 and whose members are experiencing physical or economic
community displacement. Affected communities include host communities.

Affected A natural person or legal entity experiencing either physical or economic displacement as a result of project-related
person land acquisition or restrictions on land use, other assets or natural resources.

Business Businesses are defined as shops, restaurants, services, manufacturing facilities and other enterprises, regardless
of size and whether licensed or unlicensed.

Compensation Payment in cash or in kind for loss of land, other assets or natural resources, and access thereto, that are acquired
or affected by the project. It encompasses all forms of compensation, both in kind and in cash, including the
provision of a dwelling (apartment or house and land) to replace the affected one.

Completion External audit of land acquisition and resettlement activities undertaken after the activities set out in the
audit resettlement plan have been completed, to determine whether the requirements of PR5 and provisions of the
resettlement plan have been met, particularly those pertaining to livelihood improvement or restoration.

Displacement Loss of assets, including land, or of access to assets that leads to loss of income sources or means of livelihood
(economic) as a result of project-related land acquisition, temporary occupation or restriction of access to natural resources.
People or enterprises may be economically displaced with or without experiencing physical displacement.

Displacement Loss of dwelling or shelter as a result of project-related land access, which requires the affected person(s) to move
(physical) to another location.

External Periodic external reviews of land acquisition and resettlement activities undertaken during planning and
compliance implementation of these activities to determine whether the requirements of PR5 and provisions of the
review resettlement plan are being met. It must include recommendations to correct any observed gap.

Forced Forced eviction refers to acts and/or omissions involving the coerced, permanent or temporary involuntary
eviction displacement of individuals, groups and communities from homes and/or lands and common property resources
that they occupy or depend on, thus eliminating or limiting their ability to reside or work in a particular dwelling,
residence or location, without the provision of and access to appropriate forms of legal or other protections
provided for under PR5.
Full Full replacement cost valuation is a method of valuation that calculates compensation sufficient to replace
replacement assets plus the requisite transaction costs associated with asset replacement. Where functioning markets exist,
cost replacement cost is the market value established by independent and competent real-estate valuation, plus
transaction costs. Where functioning markets do not exist, replacement cost may be determined by alternative
means, such as calculating the output value for land or productive assets or the undepreciated value of
replacement material and labour for the construction of structures or other fixed assets, plus transaction costs.
In all instances, where physical displacement results in loss of shelter, the replacement cost must at least be
sufficient to enable the purchase or construction of housing that meets acceptable minimum community standards
of quality and safety.
Gender The socially constructed roles, attributes, opportunities and relationships that a given society considers appropriate
for men and women. These expectations differ from society to society and change over time. In some societies, it
has been recognised that there are more than two genders. However, “men/boys” and “women/girls” are the most
commonly recognised genders and are, therefore, used throughout this guidance note.
Inventory Inventory should include a detailed account, prepared through a consultative, impartial and transparent process, of
the full range of rights held or asserted by affected people, including those based on custom or practice, secondary
rights, such as rights of access or use for livelihoods purposes, and rights held in common.

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EBRD PR5 | LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT | GUIDANCE NOTE MARCH 2023

Term Definition

Host community Any community receiving resettled persons.

Involuntary In the context of PR5, resettlement refers to two distinct but related processes:
resettlement • displacement, whereby a project causes affected persons to lose land, dwellings or other assets, or access to
these assets or natural resources
• resettlement, whereby affected persons are assisted in relocating to new dwellings and in improving, or at least
in restoring, their livelihoods, including incomes and living standards.
Resettlement is considered involuntary (thereby making PR5 applicable) when affected persons do not have the right
to refuse land acquisition that results in displacement. This occurs in cases of:
• expropriation using the “eminent domain” powers of the state
• negotiated settlements in which the buyer can use expropriation, even if as a last resort, where negotiations with
the seller fail.

Land Land acquisition refers to all methods of obtaining land for project purposes, which may include outright purchase,
acquisition the expropriation of land and assets and the acquisition of temporary or permanent access rights, such as
easements, rights of way and the establishment of restrictions of access to protected and other areas. Land
acquisition may also include: (a) the acquisition of unoccupied or unutilised land whether or not the landholder
relies upon such land for income or livelihood purposes; (b) the repossession of public land that is used or occupied
by individuals or households; and (c) project impacts that result in land being submerged or otherwise rendered
unusable or inaccessible. “Land” includes anything growing on or permanently affixed to land, such as crops,
buildings and other improvements, as well as water bodies contained therein.

Land acquisition A report finalised on completion of land acquisition, resettlement and livelihood restoration activities, which
and resettlement includes: a summary of project impacts (both physical and economic displacement) and principles guiding the
execution report resettlement plan; a description of efforts to avoid and minimise displacement; a summary of consultation events
and outcomes, including how they influenced entitlements and other features of the land acquisition, resettlement
and livelihood restoration activities; a description of the compensation delivery process; a description of any
issues encountered and how they were resolved; a summary of grievances received and how they were resolved,
including the list of any grievances and court cases pending at the date of submission of the report; a description of
resources mobilised to plan and implement land acquisition, resettlement and livelihood restoration activities.

Land rights Land rights include full and permanent ownership rights recognised by the law of the country, whether registered
or customary; permanent or temporary usage rights derived from a formal or informal agreement or from custom,
including long- or short-term leases, tenancy and sharecropping, as well as formal or informal use of communally
held natural resources, such as forest, pasture, and water bodies; rights of way established by law or custom; and
restrictions of use or access established by law or custom.

Livelihood Livelihood refers to the full range of means that individuals, families and communities use to make a living, such
as wages from employment; cash income earned through an enterprise or through the sale of produce, goods,
handicrafts or services; rental income from land or premises; income from a harvest or animal husbandry, share of
a harvest (such as various sharecropping arrangements) or livestock production; self-produced goods or produce
used for exchange or barter; self-consumed goods or produce; food, materials, fuel and goods for personal or
household use or trade derived from natural or common resources; pensions and various types of government
allowance.
Livelihoods are often split into three categories:
• land-based livelihoods (activities such as cropping and the grazing of livestock, as well as the harvesting of
natural resources)
• wage-based livelihoods
• enterprise-based livelihoods.
Livelihoods in developing, emerging and transition economies, however, are often based on complex combinations of
activities at household level.

Livelihood Specific allowances or activities meant to support affected persons in improving or, at a minimum, restoring their
improvement or livelihoods compared with pre-displacement levels.
restoration

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Term Definition

Property Buildings, land or both together, including all fixed assets attached to the land, such as trees and ancillary
structures.
Resettlement Technical and financial assistance provided to displaced people in addition to compensation to support their efforts
assistance in relocating to a new home and restoring their livelihoods.
Restrictions Limitations or prohibitions on the use of agricultural, residential, commercial or other land that are directly
on land use introduced and put into effect as part of the project. These may include restrictions on access to legally designated
parks and protected areas, restrictions on access to other common property resources, and restrictions on land
use within utility easements or safety zones.

Security of Security of tenure refers to resettled individuals or communities resettled to a site they can legally occupy, where
tenure they are protected from the risk of eviction and where the tenure rights provided to them are socially and culturally
appropriate.

Transition period Period between the occurrence of the displacement and the time when affected livelihoods are restored.

Vulnerable Vulnerable groups refers to people who, by virtue of gender identity, ethnicity, age, disability, economic disadvantage
groups or social status, may be more adversely affected by project impacts than others and who may be limited in their
(or people) ability to claim or take advantage of project benefits. Vulnerable individuals and/or groups may also include people
living below the poverty line, the landless, the elderly, women- and children-headed households, refugees, internally
displaced people, ethnic minorities, natural resource-dependent communities or other displaced persons who may
not be protected by national and/or international law.

Willing buyer- Negotiated market transactions in which the seller is not obliged, coerced, intimated or bribed to sell and the buyer
willing seller cannot resort to expropriation or other compulsory processes if negotiations fail.
transactions

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Appendix 2. Frequently asked questions

Applicability of PR5 Answer: No, PR5 applies and you will have to mitigate
1. Question: In our renewable energy project, we have to this impact. The project will affect the livelihoods of these
acquire 10 land parcels from local farmers. There is no farmers, as they may lose the opportunity to sell their
physical displacement; land is used only for agricultural products if this impact is not addressed. Furthermore,
purposes. We are making every effort to acquire these their presence has been tolerated by the authorities and
parcels in “willing buyer-willing seller” transactions and are local municipalities are collecting market taxes from them.
engaging each landowner in negotiations. However, we They are informal, but not illegal. Where affected people
want to be sure that the project can proceed in the unlikely have established immoveable structures, you will have to
event that one or two landowners are unwilling to sell pay compensation. You will also have to provide livelihood
their land. We have therefore approached the government restoration measures, for example, by establishing
about potentially triggering compulsory acquisition per the alternative locations for the sale of farm produce.
country’s expropriation law if this is the case. Does PR5 This will have to be presented to the EBRD in a brief
apply to our project? resettlement plan.

Answer: Yes, PR5 applies to your project as long as Compensation payments

compulsory acquisition is triggered, even as a last 4. Question: In our project, some project-affected persons
resort and even if this is unlikely. All requirements apply. would be better off if they did not receive all of their
Specifically, you will have to provide the EBRD with a brief compensation at once, as they are not used to handling
resettlement plan setting out your negotiation process. large amounts of cash. Is it acceptable to pay land,
structure and crop compensation in several instalments
2. Question: In our transmission line project, we have no
over a period of, say, two years?
permanent land acquisition, only temporary land occupation
during the construction period. The land is then handed Answer: PR5 mandates that compensation must be paid
back to landowners with some very limited restrictions (such prior to impact (PR5, paragraph 30). The first thing you must
as no building or planting of high trees). We have routed the consider, before envisioning paying cash in instalments,
line to avoid all houses. Does PR5 apply? is delivering compensation in kind rather than in cash
(see PR5, paragraphs 31 and 32), for example, replacing
Answer: Yes, PR5 applies to your project. First, even if it is
affected agricultural land with similar land or providing
very limited, you will need to undertake some permanent
houses to replace affected dwellings. This will mitigate the
land acquisition for the towers. You cannot erect the towers
risks of cash payment, which are, indeed, high in some
on somebody else’s land, so you will have to acquire the
communities. A payment in instalments, some of which are
base of the towers. You may have to permanently acquire
paid after the impact, could potentially be considered where
some access roads for maintenance purposes. Lastly, you
all of the following criteria are met:
will impose a restriction on land use under the line and
this, of itself, triggers PR5. The only situation in which PR5 • there is a demonstrated social risk attached to a one-off
would not apply is if you were implementing all these land payment
transactions in fully “willing buyer-willing seller” mode, • no livelihoods are affected as a result of the payment in
but this is unlikely. In addition, as this is a public purpose instalments
project, the expropriation legislation of your country will
• affected people confirm that they want a payment
apply. All PR5 requirements should apply. You will also have
in instalments and this is sanctioned both in public
to provide the EBRD with a brief resettlement plan.
consultation and individually in writing (addendum to
3. Question: As a government agency, we are widening an compensation agreement or similar)
intercity highway from three to four lanes. Land has already • the timeframe remains reasonable (maximum two years)
been acquired in the past for the four-lane corridor, so we • people can opt out at any given time and receive the
have no land still to acquire. However, the project will affect remainder of their compensation immediately if so
some informal kiosks and stalls established by farmers they wish.
selling fruit and vegetables on the roadside and we will
have to remove them. As these kiosks are established on
government land, we believe that PR5 is not applicable and
that we have no obligation to them. Is this correct?

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5. Question: Our project affects 200 agricultural plots. 6. Question: We have to acquire a building and demolish
Some of these plots are owned by large groups of people it to build a shopping mall. There are tenants in the
(the many successors to the original owner) – up to 200 in a building whose leases will end before demolition takes
few cases. Sometimes, some of these inheritors live abroad. place. Does PR5 mandate anything specific in terms of
Do we have to compensate each one of them before we compensation to tenants or their livelihood restoration?
start construction on these land parcels?
Answer: As leases come to an end before the acquisition,
Answer: Compensation has to be paid before entry into the project has no obligation arising from PR5 to these
land and you must make every effort to achieve this very tenants. If businesses are affected, livelihood restoration
fundamental requirement. Unjustified deviations from activities may be considered.
this principle are serious non-compliance and may result
in default. However, the EBRD recognises that there Expropriation
are situations in which it may be impossible to meet 7. Question: We have to undertake expropriation in a
this requirement and PR5 addresses such situations in few cases where acquisition was not possible for legal
paragraph 30. Such situations must remain the exception, technical reasons. Do we have to pay the legal fees of
not the rule. The same can apply where ownership is those affected?
disputed. In such cases, you must follow local legislation
and, at a minimum, put the following in place, with support Answer: Yes.
from experienced local lawyers: 8. Question: We have to undertake expropriation in a few
• You must demonstrate that you have sought repeatedly cases where landowners are unwilling to sell their land
to contact all co-owners using all reasonable despite our best efforts. Do we have to pay the legal fees
avenues. You must also be able to provide associated of those affected?
documentary evidence to the EBRD. Answer: No. However (see answer to next question),
• In many jurisdictions, it is acceptable for the absent co- you may offer to reimburse legal fees if some of these
owner to provide power of attorney to a trusted individual, reluctant landowners come back to the negotiating table
who may then be able to sign agreements and even during the course of the expropriation process.
receive compensation on their behalf. Sometimes, if the
9. Question: We are a private project and have offered
person giving power of attorney lives abroad, specific
relatively generous compensation to affected landowners,
procedures apply (such as notarisations or apostils)
more than what government expropriation processes
that you will have to follow per the guidance of local
would typically involve in similar cases. The vast majority
lawyers. In other jurisdictions, a telephone conversation
of those affected have accepted the offer and we have
in the presence of a public notary is deemed sufficient
been able to acquire 95 per cent of the land we need
evidence of agreement.
in negotiated transactions. However, despite repeated
• If such efforts prove unsuccessful, the associated attempts, we have been unable to engage one landowner
compensation amount will have to be paid into an in reasonable discussions and he has let it be known that
escrow account under the control of local judges or he will never sell his land to us. We have to embark on
notaries. It will be kept in this account until the recipient expropriation (local legislation gives us this possibility).
has been able to receive them. The EBRD may require What should we do if the indemnity this person obtains
documentary evidence that compensation funds have through the expropriation process is lower than what we
been transferred into said escrow account prior to entry initially offered?
into land.
• The project must make sure that no livelihoods are Answer: First of all, you should try to outline the risks
affected as a result of delayed payment, which is why of expropriation to the affected person, possibly using
payment of any compensation due to actual land users indirect engagement (neighbours, the local mayor, for
(such as compensation for crops, developments on land) instance), his lawyer, and/or an independent mediator
and livelihood restoration packages should be delivered acceptable to the affected person. Then, you should look
ahead of the impact, even if some shareholders are not closely at the legislation in question and check whether
paid due to legal technicalities. the person can “exit” the process when it transpires
that the compensation may be lower than what you
• Where such issues (including, but not limited to multiple
offered and come back to the negotiation table. If the
co-ownership and various land ownership disputes, such
person exits the process, you should pay him what you
as problematic succession issues) are identified in the
initially offered. In addition, you could consider paying his
project preparation phase, the resettlement plan must
legal fees.
address such cases and provide solutions, so that the
project is not taken by surprise when they actually arise.

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Resettlement plan – applicability, preparation Valuation

and disclosure 13. Question: Among the people our project is affecting
10. Question: We affect six agricultural land plots. There is is a group of slum dwellers that live in poorly constructed
no physical displacement and all landowners are amenable structures with no running water, illegal power supply and
to land acquisition. Do we have to prepare a resettlement limited sanitation. Although they live illegally on the land, we
plan and submit it to public consultation? are thinking of compensating them to avoid an eviction that
might have undesirable social and political implications.
Answer: If land has already been acquired in willing Our valuers assessed the full replacement cost of these
seller-willing buyer transactions and there are no land structures by calculating the value “as new” of constitutive
users (informal users) whose livelihoods may be affected, materials. However, when we look at the outcome we realise
PR5 does not apply and there is no need to provide a that the values arrived at would certainly not allow these
resettlement plan. The EBRD will, however, require a short slum dwellers to acquire normal housing.
land acquisition and resettlement execution report (see
PR5, paragraph 52). If land has not already been acquired, Answer: This can be approached in several ways, but
but you have reasonable evidence (such as option sale- certainly not through inadequate cash compensation
purchase agreements) that it will be acquired in willing that would only allow them to acquire an inadequate and
seller-willing buyer transactions and there are no affected informal dwelling. In such situations, the EBRD requires
land users other than the owner whose livelihoods may the relocation of informal dwellers to adequate housing
be affected, there is no need to provide a resettlement with reasonable security of tenure. The EBRD does not
plan. The EBRD will require you to provide documentary necessarily require the relocation of informal slum dwellers
evidence of such conditions and, later, to provide a short to housing that they would own in full. You could consider
land acquisition and resettlement execution report (see relocating them to adequate social housing where they
PR5, paragraph 52). In all other cases and despite the small would pay rent.
number of affected land plots, you will have to provide a
14. Question: Our country is on an EU accession track.
resettlement plan. Note that the plan is expected to be
The government has already introduced some EU
commensurate with the magnitude of impacts, so for six
requirements into the building code, for example, energy
affected land plots, it could be a document of a few pages
efficiency norms. Our project affects traditional houses
in line with PR5, paragraph 41 (i).41
that are far from being energy efficient. Should we take
11. Question: Must the resettlement plan be prepared by an newly introduced energy efficiency and other currently
independent party? applicable requirements into account when calculating full
replacement cost?
Answer: For any project outside of the scope of PR5
paragraph 41 (i), the EBRD requires that the resettlement Answer: Yes, if these requirements are already applicable.
plan be prepared by an independent party. This is the case The full replacement cost should be sufficient to allow the
for any project involving physical displacement or projects affected owner build or acquire a dwelling that fully meets
where the impacts on livelihoods are significant. applicable national standards.

12. Question: Do we have to disclose the resettlement 15. Question: Our country has stringent space per person
plan to affected people? We believe it contains confidential requirements in the housing code.42 These standards are
information and we are therefore unwilling to disclose it. not met in affected housing: more people typically live in
affected dwellings than permissible under the housing code.
Answer: Yes, the resettlement plan has to be publicly Should we apply these requirements in calculating
disclosed. The modalities of this can be discussed with full replacement cost?
the EBRD. To avoid disclosing what might be deemed
confidential information, you should remove all personal Answer: Yes. You should apply the full replacement cost
data (including names, addresses, photographs of specific to the surface area that the true household composition
features or people, and so on) and any information that requires. For example, if there are six people living in
could easily be related to identifiable individuals or groups. 72 m2 while the housing code requires a minimum space
In addition, you have to provide transparent information per person of 14 m2 (that is 84 m2 for this particular
to support meaningful consultation with affected people. household) and the full replacement cost of that dwelling is
Because the resettlement plan is not necessarily a user- €69,000, the compensation this household should receive
friendly document for affected people, a simplified GLAC will is: €69,000 / (72 / 84) = €80,510.
be useful in the spirit of PR5, paragraph 39.

41 Projects falling within the scope of PR5, paragraph 41 (i) are “projects with minor land
acquisition or restrictions on land use”, for which a simplified resettlement plan is provided.
42 This is actually the case in several former Soviet countries.

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Appendix 3. Resettlement plan – template outline

Note 1: This is presented as general guidance and should 3.4 Legislative processes (if relevant)
be adapted to the specificities of the project in question.
3.5 EBRD policy on involuntary resettlement (brief
It applies to projects in categories (ii) and (iii) of PR5,
summary of PR5 and this guidance note)
paragraph 41.
3.6 Gap review (comparison of local legislation with
Note 2: The EBRD appreciates conciseness. The expected EBRD policies and the identification of potential
size of a resettlement plan for a project with significant gaps, if any, with the proposed way forward
impacts is in the range of 50-100 A4 pages, appendices to meet PR5)
not included. Bulky and disorderly documents will not be
reviewed and not be accepted. The executive summary 4. Principles, objectives and processes
should provide an adequate overview in approximately 4.1 Key principles and objectives (should spell out in a
5-12 pages. formal manner and at high level, without details, the
key commitments the project is making as regards
Note 3: As an action plan referred to in the ESAP, the
compliance with PR5)
resettlement plan is a project commitment. A resettlement
plan is not a study that makes “recommendations”. If an 4.1.1 Avoidance of forced evictions
action is included in the resettlement plan, it becomes a
4.1.2 Cut-off date and eligibility
firm commitment that must be implemented and against
which the project will be monitored by the EBRD. 4.1.3 Compensation at replacement value, in-kind
compensation wherever possible
Note 4: Projects with limited impacts are addressed in
Appendix 4. 4.1.4 Livelihood restoration wherever livelihoods
are affected
Executive summary
1. Scope of the resettlement plan: Introduction 4.1.5 Consideration of vulnerable people
1.1 Scope and contents of this report 4.1.6 Consultation-grievance mechanisms
1.2 Key definitions 4.1.7 Monitoring and external reviews
2. Project description and potential impact 4.1.8 Key principles for implementation arising
2.1 Project objectives, location, rationale and benefits from agreements with government or law,
particularly where government is playing a
2.2 Key project components (should be brief and can
mandatory role in implementation
refer to the ESIA for further details)
2.3 The project footprint and its associated land 4.2 Process overview
impacts (with maps, description and photographs 4.2.1 Negotiated settlements (the process for
as relevant) arriving at a negotiated agreement, collective
2.4 Avoidance and minimisation of project then individual negotiations, offers, refusals,
displacement impacts (should explain the iterative acceptance, formalisation of agreement)
process of changing and adapting the design to 4.2.2 Process in case no agreement is reached
avoid and minimise displacement impacts, and
the outcomes of such process, with tabular and • with expropriation (formalised ownership)
cartographic illustration as relevant)
• without expropriation (informal occupation)
3. Legal framework (to be adapted to the context in
the jurisdiction) 5. Baseline of affected assets and affected persons
3.1 The constitution (or any other fundamental law, 5.1 Census of affected assets and affected households
typically establishing high-level principles related 5.1.1 Methodology
to the public interest and expropriation versus
protection of the right to private property) 5.1.2 Implementation

3.2 The expropriation law (review of principles and 5.1.3 Results

processes) 5.2 Socio-economic baseline surveys
3.3 Land tenure regime (including customary and 5.2.1 Methodology
informal regimes as relevant)
5.2.2 Implementation
5.2.3 Results (including livelihoods, social fabric,
culture, relevant sociopolitical aspects)

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5.3 Affected land 6.3.3 Resettlement site development (planning

standards, site planning (with relevant
5.3.1 Estimates of surfaces potentially required
drawings), community facilities, utilities, plot
5.3.2 Categorisation of land needs (permanent, allocation within the site)
temporary)
6.3.4 Housing design (consultation around
5.3.3 Land tenure regimes housing design, principles, selected
construction materials, selected designs, with
5.4 Affected structures relevant drawings)
5.4.1 Estimates of numbers of affected structures
6.4 Cash compensation
5.4.2 Categorisation of structures 6.4.1 Rates for all different types of asset
5.4.3 Structure ownership regime 6.4.2 Payment process
5.5 Affected businesses 6.4.3 Cash risk mitigation (including financial
5.5.1 Estimates of numbers of affected businesses training, payment in instalments or any other
relevant mitigation)
5.5.2 Categorisation of businesses
6.5 Incremental land acquisition (ongoing acquisition
5.5.3 Business ownership regime of small pieces of land during project construction
5.6 Affected people and operation, beyond the scope of this
resettlement plan)
5.6.1 Estimated number of affected households
and persons 6.5.1 Scope

5.6.2 Economic and physical displacement 6.5.2 Processes (including consultation)

5.6.3 Summary socio-economic description and 6.6 Gender sensitivity assessment on proposed
categorisation of affected persons compensation entitlements (gender analysis and
mitigation of any identified gender risks)
5.6.4 Compensation preferences
7. Livelihood restoration and improvement
6. Resettlement and compensation strategy 7.1 Principles (eligibility, key aspects of livelihood
6.1 Entitlements restoration and improvement entitlements)
6.1.1 Eligibility for compensation 7.2 Restoration and improvement of land-based
livelihoods (replacement land and agricultural
6.1.2 Entitlement matrix
improvement packages)
6.2 Valuation of affected assets 7.3 Restoration and improvement of non-land-based
6.2.1 Land livelihoods (employability enhancement, project
procurement and employment, support for SME
6.2.2 Structures creation and development, and so on)
6.2.3 Crops and trees 7.4 Training
6.2.4 Businesses 7.5 Specific aspects related to gender
6.3 Resettlement packages (for projects with physical 7.6 Specific aspects related to vulnerability
displacement – category (ii) of PR5, paragraph 41) 7.7 Partnerships and linkages for the planning and
6.3.1 Reconstruction (project or self, arrangements implementation of livelihood restoration and
for reconstruction) improvement

6.3.2 Resettlement site (or sites as applicable) 8. Consultation and disclosure

selection (comparison of options, consultation 8.1 Main results of consultation carried out in
around site identification and selection) preparation for the resettlement plan
8.2 Engagement plan for further stages
8.3 Disclosure

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9. Grievance management and redress system Appendix A. Detailed results of the census and
9.1 Key principles socio-economic survey

9.2 Registration of grievances Appendix B. Census dossier and methodology

9.3 First tier of amicable settlement Appendix C. Template of a claim registration and
follow-up form
9.4 Resort mechanism and mediation
9.5 Appeal to court Plus any other relevant appendices (photographs, maps,
drawings, and so on)
10. Vulnerable people
10.1 Vulnerability analysis
10.1.1 Vulnerability definition and criteria in the
context of the project
10.1.2 Vulnerability matrix (with scoring of criteria)
10.1.3 Consultation around vulnerability criteria
10.2 Pre-identification of vulnerable people
10.3 Potential activities to assist vulnerable people
10.4 Arrangements for the implementation and
budgeting of assistance to vulnerable people
11. Monitoring and evaluation
11.1 General objectives of monitoring and evaluation
11.2 Auditing and monitoring during implementation
11.2.1 Scope and content – internal activities
11.2.2 Scope and content – external reviews
11.2.3 Indicators, including key performance
indicators
11.2.4 Reporting
11.3 Completion audit
11.3.1 Objectives and scope
11.3.2 Success/completion criteria
11.3.3 Timing and implementation arrangements
for completion audit
12. Implementation responsibilities and funding
12.1 Implementation responsibilities
12.2 Budget and arrangements for funding
12.3 Time schedule (including review of compatibility
of resettlement schedule with overall project
construction and development schedule)
12.4 Change management

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Appendix 4. Resettlement plan for projects

with limited impact – template outline
Note 1: This is presented as general guidance and should 5. Baseline of affected assets and affected persons
be adapted to the specificities of the project context.
Should be proportionate to the magnitude of the impacts.
It applies to projects with limited physical or economic
displacement impacts. 5.1 Description of affected assets
Executive summary 5.2 Affected businesses
1. Scope of the resettlement plan: Introduction 5.3 Affected people (numbers, nature of displacement,
2. Project description and potential impacts permanent or temporary displacement, restrictions)
2.1 Project objectives, location, rationale, benefits and 6. Entitlements
key components 6.1 Valuation principles
2.2 Project footprint and associated land impacts – 6.2 Entitlement matrix
avoidance and minimisation
6.3 Gender sensitivity assessment as relevant
3. Legal framework (to be adapted to the context in the
jurisdiction) 7. Livelihood restoration
Brief description of legal processes to be followed for 7.1 Principles (eligibility, key aspects of livelihood
land acquisition in the project and brief review of potential restoration and improvement entitlements)
problematic gaps with EBRD’s standards, if any. 7.2 Activities
4. Principles, objectives and processes 7.3 Partnerships for livelihood restoration activities
4.1 Key principles and objectives (should spell out in a 8. Consultation and disclosure
formal manner and at high level, without details, the
8.1 Main results of consultation carried out in
key commitments the project is making as regards
preparation for the resettlement plan
compliance with PR5)
8.2 Engagement plan for further stages
4.1.1 Avoidance of forced evictions
8.3 Disclosure
4.1.2 Cut-off date and eligibility
9. Grievance management and redress system
4.1.3 Compensation at replacement value, in-kind
9.1 Description of grievance management system
compensation wherever possible
9.2 Resort mechanism and mediation
4.1.4 Livelihood restoration wherever livelihoods
are affected 10. Vulnerable people
10.1 Identified vulnerable groups or people
4.1.5 Consideration of vulnerable people
10.2 Assistance for vulnerable people
4.1.6 Consultation-grievance mechanisms
11. Monitoring and evaluation
4.1.7 Monitoring and external reviews
11.1Internal monitoring scope
4.1.8 Key principles for implementation arising
11.2 Indicators
from agreements with government or law,
particularly where government is playing a 11.3 Reporting frequencies
mandatory role in implementation
12. Implementation responsibilities and funding
4.2 Process overview 12.1 Implementation responsibilities
4.2.1 Negotiated settlements (the process for 12.2 Budget and arrangements for funding
arriving at a negotiated agreement, collective
12.3 Time schedule
then individual negotiations, offers, refusals,
acceptance, formalisation of agreement) Any relevant appendices (photographs, maps, drawings,
sample questionnaires, and so on)
4.2.2 Process in case no agreement is reached

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Appendix 5. Resettlement framework

– sample outline
EXECUTIVE SUMMARY 4.1.4 Livelihood restoration wherever livelihoods
are affected
1. Scope of the resettlement framework: Introduction
1.1 Scope and contents of this framework 4.1.5 Consideration of vulnerable people

1.2 Key definitions 4.1.6 Consultation-grievance mechanisms

2. Project description and potential impacts 4.1.7 Monitoring and external reviews
2.1 Project objectives, location, rationale and benefits 4.1.8 Key principles for implementation arising
from agreements with government or law,
2.2 Key project components (should be brief and can
particularly where government is playing a
refer to the ESIA for further details)
mandatory role in implementation
2.3 The potential project footprint and its associated
land impacts (with maps, description and 4.2 Process overview
photographs as relevant) – this is tentative, as the 4.2.1 Negotiated settlements (what is the process
design of the project will typically not have been to arrive at a negotiated agreement, collective
finalised at the time of framework submission, but then individual negotiations, offers, refusals,
a first estimate should be presented based on a acceptance, formalisation of agreement)
worst-case impact scenario, with possible different
options, if applicable 4.2.2 Process in case no agreement is reached:

2.4 Commitment to the avoidance and minimisation of • with expropriation (formalised ownership)
displacement in further project development • without expropriation (informal occupation)
3. Legal framework (to be adapted to the context in
5. Tentative resettlement and compensation strategy
the jurisdiction)
5.1 First approach to entitlements
3.1 The constitution (or any other fundamental law,
typically establishing high-level principles related 5.1.1 Eligibility for compensation
to the public interest and expropriation versus the
protection of the right to private property) 5.1.2 Entitlement matrix

3.2 The expropriation law (review of principles and 5.2 Valuation of affected assets (principles,
processes) methodology, arrangements for valuation
implementation)
3.3 Land tenure regime (including customary and
informal regimes as relevant) 5.2.1 Land

3.4 Legislative processes (if relevant) 5.2.2 Structures

3.5 EBRD policy on involuntary resettlement (brief 5.2.3 Crops and trees
summary of PR5 and this guidance note)
5.2.4 Businesses
3.6 Gap review (comparison of local legislation with
EBRD policies and identification of potential gaps, if 5.3 Cash compensation
any, with the proposed way forward to meet PR5) 5.3.1 Rates for all different types of asset
4. Principles, objectives and processes 5.3.2 Payment process
4.1 Key principles and objectives (should spell out in a
5.3.3 Cash risk mitigation (including financial
formal manner and at high level, without details, the
training, payment in instalments or any other
key commitments the project is making as regards
relevant mitigations)
compliance with PR5)
4.1.1 Avoidance of forced evictions 5.4 Gender sensitivity assessment on proposed
compensation entitlements (gender analysis and
4.1.2 Cut-off date and eligibility mitigation of any gender risks)
4.1.3 Compensation at replacement value, in-kind
compensation wherever possible

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6. Livelihood restoration and improvement 10. Monitoring and evaluation

6.1 Principles (eligibility, key aspects of livelihood 10.1 General objectives of monitoring and evaluation
restoration and improvement entitlements)
10.2 Auditing and monitoring during implementation
6.2 Restoration and improvement of land-based
10.2.1 Scope and content – internal activities
livelihoods (replacement land and agricultural
improvement packages) – tentative identification of 10.2.2 Scope and content – external reviews
potential activities
10.2.3 Indicators, including key performance
6.3 Restoration and improvement of non-land based indicators
livelihoods (employability enhancement, project
procurement and employment, support for SME 10.2.4 Reporting
creation and development, and so on) – tentative 10.3 Completion audit
identification of potential activities
10.3.1 Objectives and scope
6.4 Training
10.3.2 Success/completion criteria
6.5 Specific aspects related to gender
6.6 Specific aspects related to vulnerability 10.3.3 Timing and implementation arrangements
for completion audit
6.7 Partnerships and linkages for planning and
implementation of livelihood restoration and 11. Implementation responsibilities and funding
improvement 11.1 Implementation responsibilities
7. Consultation and disclosure 11.2 Budget and arrangements for funding
7.1 Main results of consultation carried out in 11.3 Time schedule (including review of compatibility
preparation for the resettlement framework of resettlement schedule with overall project
7.2 Engagement plan for further stages construction and development schedule)

7.3 Disclosure 11.4 Change management

8. Grievance management and redress system Appendix A. Census dossier and methodology

8.1 Key principles Appendix B. Template of a claim registration and

follow-up form
8.2 Registration of grievances
Plus any other relevant appendices (photographs, maps,
8.3 First tier of amicable settlement drawings, and so on).
8.4 Resort mechanism and mediation
8.5 Appeal to court
9. Vulnerable people
9.1 Vulnerability analysis
9.1.1 Vulnerability definition and criteria in the
context of the project
9.1.2 Vulnerability matrix (with scoring of criteria)
9.2 Potential activities to assist vulnerable people
9.3 Arrangements for implementing and budgeting for
assistance to vulnerable people

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Appendix 6. Acronyms
EBRD European Bank for Reconstruction and Development
EIA Environmental impact assessment
ESAP Environmental and social action plan
ESIA Environmental and social impact assessment
ESP Environmental and Social Policy
FPIC Free, prior, informed consent
GBVH Gender-based violence and harassment
GLAC Guide to land acquisition and compensation
IDP Internally displaced person
IFC International Finance Corporation
LGBT Lesbian, gay, bisexual, transsexual
M&E Monitoring and evaluation
NGO Non-governmental organisation
OHCHR United Nations Office of the High Commissioner for Human Rights
PR Performance Requirement
UN United Nations
UN OCHA United Nations Office for the Coordination of Humanitarian Affairs

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Appendix 7. Additional resources

A.7.1. MDB resettlement policies
African Development Bank (2013) African Development Bank Group’s Integrated Safeguards System: Policy statement and
operational safeguards, Tunis. Available at: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/
December_2013_-_AfDB’S_Integrated_Safeguards_System__-_Policy_Statement_and_Operational_Safeguards.pdf.
Asian Development Bank (2009) Safeguard Policy Statement, Mandaluyong, Metro Manila. Available at: https://www.adb.
org/sites/default/files/institutional-document/32056/safeguard-policy-statement-june2009.pdf.
Asian Infrastructure Investment Bank (2016) Environmental and Social Framework, Beijing. Available at: https://www.aiib.
org/en/policies-strategies/_download/environment-framework/20160226043633542.pdf.
European Investment Bank (2018) Environmental and Social Standards, Luxembourg. Available at: https://www.eib.org/
attachments/strategies/environmental_and_social_practices_handbook_en.pdf.
International Finance Corporation (2012) Performance Standard 5: Land Acquisition and Involuntary Resettlement,
Washington, DC. Available at: https://www.ifc.org/wps/wcm/connect/75de96d4-ed36-4bdb-8050-400be02bf2d9/PS5_
English_2012.pdf?MOD=AJPERES&CVID=jqex59b.
International Finance Corporation (2012) International Finance Corporation’s Guidance Notes: Performance
Standards on Environmental and Social Sustainability, Washington, DC. Available at: https://www.ifc.org/wps/wcm/
connect/9fc3aaef-14c3-4489-acf1-a1c43d7f86ec/GN_English_2012_Full-Document_updated_June-27-2019.
pdf?MOD=AJPERES&CVID=mRQmrEJ.
World Bank (2017) Environmental and Social Standard 5: Land Acquisition, Restrictions on Land Use and Involuntary
Resettlement, Washington, DC. Available at: http://pubdocs.worldbank.org/en/837721522762050108/Environmental-
and-Social-Framework.pdf#page=67&zoom=80.
World Bank guidance notes, good practice notes and other resources on the Bank’s Environmental and Social Framework.
Available at: https://www.worldbank.org/en/projects-operations/environmental-and-social-framework.

A.7.2. Private industry resettlement guidelines

International Council on Mining and Metals (2015) Land acquisition and resettlement: lessons learned, London. Available
at: https://www.icmm.com/en-gb/guidance/social-performance/2015/land-acquisition-and-resettlement.
G. Reddy, E. Smyth and M. Steyn (2015) Land access and resettlement, a guide to best practice, Greenleaf Publishing.

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References
EBRD (1990) “Agreement Establishing the European Bank for Reconstruction and Development” in EBRD (2013) Basic
Documents of the European Bank for Reconstruction and Development, London. Available at: https://www.ebrd.com/news/
publications/institutional-documents/basic-documents-of-the-ebrd.html.
EBRD (2017) Resettlement Guidance and Good Practice, London. Available at: https://www.ebrd.com/publications/
resettlement-guidance-good-practice.pdf.
EBRD (2019) Environmental and Social Policy, London. Available at: https://www.ebrd.com/news/publications/policies/
environmental-and-social-policy-esp.html.
EBRD (2020) Stakeholder Engagement (PR10) – Covid-19: EBRD briefing note, London. Available at: https://www.ebrd.
com/covid19-consultation.pdf.
EBRD (2023) EBRD Performance Requirement 10: Information disclosure and stakeholder engagement – guidance
note, London.
EBRD, CDC and IFC (2020) Addressing Gender-Based Violence and Harassment: Emerging Good Practice for the Private
Sector, London and Washington, DC. Available at: http://www.ebrd.com/gbvh-good-practice.pdf.
OHCHR (1948) Universal Declaration of Human Rights, New York. Available at: https://www.ohchr.org/en/universal-
declaration-of-human-rights.
OHCHR (2007) Basic principles and guidelines on development-based evictions and displacement, New York. Available at:
https://www.ohchr.org/en/documents/thematic-reports/basic-principles-and-guidelines-development-based-evictions-and.
OHCHR (2014) Forced Evictions, Factsheet No. 25/Rev. 1, New York. Available at: https://www.ohchr.org/sites/default/
files/Documents/Publications/FS25.Rev.1.pdf.
UN OCHA (2001) Guiding Principles on Internal Displacement, New York. Available at: https://www.internal-displacement.
org/sites/default/files/publications/documents/199808-training-OCHA-guiding-principles-Eng2.pdf.
Voluntary Principles Initiative (n.d.) Security and Human Rights, Ottawa. Available at: https://www.voluntaryprinciples.org/.

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1552 Performance Requirement 5: Land acquisition, restrictions on land use and involuntary
resettlement – Guidance note
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