Resettlement Policy Framework

Simplified Template for Low or Moderate Risk Projects

April 2023

Template Instructions: This document is an optional, simplified Resettlement Policy Framework (RPF)
template for Low and Moderate Risk projects. Information specific to the project should be inserted
where there are [ ] (for example, “[name of project]”). Delete the [ ] when inserting information.

A. Introduction

1. This document constitutes a simplified template for a Resettlement Policy Framework (RPF)
prepared for a Low or Moderate Risk project, consistent with requirements of the World Bank
Environmental and Social Framework.1 Its fundamental purpose is to establish terms of agreement
between relevant authorities in [formal sovereign borrower name] and the World Bank regarding
principles and procedures to be used in subsequent preparation of a Resettlement Plan (RP) or
Resettlement Plan (RPs).2 World Bank approval of an RP (or RPs) is required before project authorities
invite bids for any contracts in which works are expected to involve physical or economic displacement
as a result of land acquisition or restrictions on access or use of natural resources.

2. The RPF is intended to avoid or minimize any adverse impacts associated with physical or
economic displacement, and to ensure arrangements are in place to mitigate any adverse impacts that
may occur. The [formal sovereign borrower name] hereby agrees to apply the principles, procedures,
and standards incorporated in ESS5 of the World Bank ESF if obtaining any sites for project use would
cause economic displacement3 or physical displacement.4

3. This RPF is intended to utilize the existing legal and policy framework of [name of formal
sovereign borrower], incorporating any supplementary measures necessary to achieve consistency with
ESS5 principles and standards.5

B. Project Objectives and Description

4. The objective of the [name of project, with acronym for further reference] is [Project
Development Objective, from Project Concept Note (PCN), Project Appraisal Document (PAD), or other
available documentation].

5. [Project description, including identification of components, from PCN, PAD or elsewhere]

6. [Identification of components that may require physical displacement or land acquisition for
project use, including description of likely scale of land required for use, and explanation why
preparation of a site-specific RP is not technically feasible at the time the RPF is prepared. If feasible, a
description of likely resettlement-related impacts and an estimated number of persons likely to be
affected by them is also included.]

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C. Key Principles and Definitions

7. In World Bank-assisted projects, borrowers are expected to take all feasible measures to avoid
or minimize adverse impacts from land acquisition and restrictions on land use associated with project
development. The fundamental objective of ESS5 is to ensure that, if physical or economic displacement
cannot be avoided, displaced persons (as defined below) are compensated at the replacement cost for
land and other assets, and otherwise assisted as necessary to improve or at least restore their incomes
and living standards.

8. Other ESS5 objectives include:

a) To avoid forced eviction6

b) To improve living conditions of poor or vulnerable persons who are physically displaced, through
provision of adequate housing, access to services and facilities, and security of tenure 7
c) To conceive and execute resettlement activities as sustainable development programs,
providing sufficient investment resources to enable displaced persons to benefit directly from
the project, as the nature of the project warrants
d) To ensure that resettlement activities are planned and implemented with appropriate disclosure
of information, meaningful consultation, and the informed participation of those affected.

9. Displaced persons (ESS5, Para. 10) are defined as any persons subjected to project-related
adverse impacts who (a) have formal legal rights to land or assets; (b) have a claim to land or assets that
is recognized or recognizable under national law; or (c) who have no recognizable legal right or claim to
the land or assets they occupy or use. The term incorporates all potential categories of persons affected
by land acquisition and associated impacts; all of those adversely affected are considered “displaced”
under this definition regardless of whether any relocation is necessary.

10. Replacement cost (ESS5, Para. 2, footnote 6) is defined as a method of valuation yielding
compensation sufficient to replace assets, plus necessary transaction costs associated with asset
replacement. Where functioning markets exist, replacement cost is the market value as established
through independent and competent real estate valuation, plus transaction costs. Where functioning
markets do not exist, replacement cost may be determined through alternative means, such as
calculation of output value for land or productive assets, or the undepreciated value of replacement
materials and labor for construction of structures or other fixed assets, plus all transaction costs
associated with asset replacement. In all instances where physical displacement results in loss of
substandard shelter, replacement cost must at least be sufficient to enable purchase or construction of
housing that meets minimum community standards of quality and safety.

11. ESS5 also establishes key principles to be followed in resettlement planning and
implementation. These include:

a) All displaced persons are entitled to compensation for land and attached assets, or to alternative
but equivalent forms of assistance in lieu of compensation; lack of legal rights to the assets lost

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 will not bar displaced persons from entitlement to such compensation or alternative forms of
assistance.
b) Compensation rates refer to amounts to be paid in full to the eligible owner(s) or user(s) of the
lost asset, without depreciation or deduction for fees, taxes, or any other purpose.
c) Compensation for land, structures, unharvested crops, and all other fixed assets should be paid
prior to the time of impact or dispossession.
d) When cultivated land is to be taken for project purposes, the [name of implementing agency]
seeks to provide replacement land of equivalent productive value if that is the preference of the
displaced persons.
e) Community services and facilities will be repaired or restored if affected by the project.
f) Displaced persons should be consulted during preparation of the RP, so that their preferences
are solicited and considered.
g) The RP (in draft and final versions) is publicly disclosed in a manner accessible to displaced
persons.
h) A grievance mechanism by which displaced persons can pursue grievances will be established
and operated in a responsive manner.
i) Negotiated settlement processes are acceptable as an alternative for legal expropriation if
appropriately implemented and documented.8
j) Land donation is acceptable only if conducted in a wholly voluntary manner and appropriately
documented.9
k) The [name of implementing agency] bears official responsibility for meeting all costs associated
with obtaining project sites, including compensation and other considerations due displaced
persons. The RP includes an estimated budget for all costs, including contingencies for price
inflation and unforeseen costs, as well as organizational arrangements for meeting financial
contingencies.
l) Monitoring arrangements will be specified in the RP, to assess the status and effectiveness of RP
implementation.

D. Legal and Regulatory Framework

12. [This section will be drafted on a country-by-country basis, briefly summarizing relevant
constitutional, legal, and regulatory provisions. Relevant provisions include expropriation, compensation
standards and procedures, tenurial arrangements, treatment of persons lacking full legal title, and other
topics that may be pertinent to the project context and location.]

13. The [formal name of sovereign borrower] agrees to take all actions necessary to ensure full and
effective implementation of RPs prepared in accordance with the RPF, and to otherwise take actions
necessary to achieve all relevant provisions of ESS5.

E. Preparing a Resettlement Plan

14. All projects causing physical or economic displacement through land acquisition or project-
related restrictions on resource access or use are required to prepare a resettlement plan for World
Bank approval. Responsibility for preparation and implementation of the RP (or RPs) rests with the
[name of implementing agency]. As necessary, [name of implementing agency] will exercise its authority
to coordinate actions with any other involved agencies, jurisdictions, or project contractors to promote
timely and effective planning and implementation.

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15. RP preparation begins once the physical footprint of a proposed investment has been
determined, establishing that a particular site (or sites) must be acquired for project use. The [name of
implementing agency] initially screens proposed sites to identify current usage and tenurial
arrangements and identifies the site (or sites) that will minimize physical and economic displacement.
The [name of implementing agency] subsequently carries out, or causes to be carried out, a census
survey to identify and enumerate all displaced persons on the selected site (or sites) and to inventory
and valuate land and other assets that are to be acquired for project use.

16. Each RP is based on the principles, planning procedures, and implementation arrangements
established in this RPF,10 and normally includes the following contents:

a) Description of the project (with appropriate maps and illustrations), including explanation for
the necessity of acquiring particular sites for project use and efforts undertaken to avoid or
minimize the amount of land acquisition or other potential impacts deemed necessary
b) Results of a census survey of displaced persons and inventory and valuation of affected land and
assets
c) Description of any project-related restrictions on resource use or access
d) Description of tenure arrangements, including collective, communal, or customary use or
ownership claims
e) Review of relevant laws and regulations pertaining to acquisition, compensation, and other
assistance to displaced persons, and identification of gap-filling measures needed to achieve
ESS5 requirements
f) Description of land and asset valuation procedures and compensation standards for all
categories of affected assets
g) Eligibility criteria for compensation and all other forms of assistance, including a cutoff date for
eligibility
h) Organizational arrangements and responsibilities for RP implementation
i) Implementation timetable
j) Estimated budget and financial contingency arrangements
k) Consultation and disclosure arrangements
l) Description of grievance mechanism
m) Arrangements for monitoring implementation progress.

The RP should be complemented by a separate set of individual compensation files for each displaced
household or persons. These files are to be handled confidentially by the borrower to avoid any
prejudice to displaced persons. In fragility, conflict, and violence (FCV) environments, RPs should also
clarify procedures to be applied to ensure the security of displaced persons when they receive
compensation payments.

Eligibility criteria for compensation and all other forms of assistance should be clearly summarized in a
table that can be used for consultation with displaced persons (see example provided in Annex).

Additional planning measures must be incorporated into RPs for projects causing physical displacement,
or significant economic displacement, as described below.

17. For projects causing physical displacement,11 the RP should include planning measures relating
to the following, as relevant for project circumstances:

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 a) Description of relocation arrangements, including options available to displaced persons, and
including transitional support for moving or other expenses
b) Description of resettlement site selection, site preparation, and measures to mitigate any
impacts on host communities or physical environment, including environmental protection and
management
c) Measures to improve living standards and otherwise address particular needs of relocating poor
or vulnerable households, including measures to ensure that replacement housing is at least
consistent with minimum community standards and is provided with security of tenure
d) Description of project design measures to improve living standards, access to or functioning of
community services or facilities, or for providing other project-related benefits
e) Any measures necessary to address impacts of resettlement on host communities.

18. For projects causing significant economic displacement,12 the RP describes (as relevant):

a) The scale and scope of likely livelihoods-related impacts, including agricultural production for
consumption or market, all forms of commercial activity, and natural resource use for
livelihoods purposes
b) Livelihoods assistance options (for example, employment, training, small business support,
assistance in providing replacement land of equivalent productive value, other) available to
persons losing agricultural land or access to resources
c) Assistance measures available to commercial enterprises (and workers) affected by loss of
assets or business opportunities directly related to land acquisition or project construction
d) Project measures to promote improvement of productivity or incomes among displaced persons
or communities.

F. Consultation and Disclosure Arrangements

19. The RP summarizes results of measures taken to consult with displaced persons regarding the
project, its likely impacts, and proposed resettlement measures. It also summarizes the meetings held
with displaced persons (dates, locations, number of participants), including comments, questions, and
concerns expressed by displaced persons during these meetings as well as responses provided to them.
The [name of implementing agency] discloses a draft RP to the displaced persons (and the public) after
Bank review and solicits comments from displaced persons regarding the proposed plan. Disclosure of
the final RP occurs following consideration of comments received and following Bank acceptance.

G. Monitoring and Evaluation

20. [Name of implementing agency] will make arrangements for monitoring implementation and
will provide periodic monitoring reports to the Bank regarding the status of land acquisition and
implementation of the RP. For projects with significant impacts, competent resettlement monitoring
professionals will monitor implementation progress and provide advice on any necessary corrective
actions and will conduct an implementation review when all mitigation measures in the RP are
substantially complete. The implementation review evaluates the effectiveness of mitigation measures
in achieving RP and ESS5 objectives and recommends corrective measures to meet objectives not yet
achieved.

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H. Grievance Mechanism

21. To ensure that displaced persons can raise complaints regarding the land acquisition process,
calculation or payment of compensation, provision of assistance, or other relevant matters, the RP
provides for an accessible and responsive grievance mechanism. The RP describes submission
procedures, organizational arrangements, and responsive performance standards for handling
grievances, and measures to be taken to inform displaced persons or communities about grievance
initiation and response standards. The grievance mechanism does not preclude displaced persons from
pursuing other legal remedies available to them.

22. The [name of implementing agency] keeps a record of all complaints referred to the grievance
mechanism, including a description of issues raised and the status or outcome of the review process.

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Annex A - Suggested Outline for Preparation of RP Entitlements Matrix – Example Only, to be adapted
for specific project

IMPACT AFFECTED ELIGIBILITY ENTITLEMENT IN MITIGATION

PERSONS CRITERIA PRINCIPLE STANDARDS/MEASURES
[A. Loss of
agricultural land

- Irrigated land Owners (TBD) Compensation in kind (TBD; usually unit of

- Rainfed land or at replacement cost currency per unit of land)
- Pasture
- Groves Users with (TBD) Compensation in kind (TBD; usually unit of
- Fishpond legalizable claims or at replacement cost currency per unit of land)
- Other
Renters/Lessees
(TBD) Prorated compensation (TBD; usually unit of
for remainder of term; currency per unit of land)
assistance in finding
Other users suitable alternative
(squatters, (TBD) (TBD)
encroachers) Compensation for
improvements;
assistance in lieu of
land compensation
B. Loss of
residential land

Owners (TBD) Compensation in kind (TBD; usually unit of

or at replacement cost currency per unit of land)

Users with (TBD) Compensation in kind (TBD; usually unit of

legalizable claims or at replacement cost currency per unit of land)

Renters/Lessees
(TBD) Prorated compensation (TBD; usually unit of
for remainder of term; currency per unit of land)
assistance in finding
Other users suitable alternative
(squatters, (TBD) (TBD)
encroachers) Compensation for
improvements;
assistance in lieu of
land compensation
C. Loss of
commercial land

Owners (TBD) Compensation at (TBD; usually unit of

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 replacement cost, currency per unit of land)
commercial real estate
Users with (TBD) value (TBD; usually unit of
legalizable claims currency per unit of land)
Compensation at
Renters/Lessees replacement cost,
(TBD) commercial real estate (TBD; usually unit of
value currency per unit of land)

Other users
(squatters, (TBD) Prorated compensation (TBD; usually unit of

1
Specifically, Environmental and Social Standard 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement
(ESS5), Annex 1B. The template is primarily intended for use in projects initially classified as Low or Moderate Risk. It may also
be appropriate for use in projects with a Substantial Risk classification if risks identified as substantial do not relate directly to
ESS5.
2
To ensure that the relevant authority is aware of its obligations, it is recommended that the RPF be accompanied by a
provision of a transmittal letter, signed by the chief executive (or similar relevant authority) of the implementing agency.
3
As described in ESS5, Paras. 33–36.
4
As described in ESS5, Paras. 26–32.
5
The RPF does not supersede provisions of ESS5 or the ESF, and the World Bank remains solely responsible for determining
what is required to achieve consistency with those requirements throughout the course of project implementation.
6
Defined as the removal against the will of individuals, families, and/or communities from the homes and/or land which they
occupy without the provision of, and access to, appropriate forms of legal and other protection, including all applicable
procedures in ESS5.
7
Security of tenure means that displaced persons are resettled to a site that they can legally occupy, where they are protected
from the risk of eviction and where the tenure rights provided to them are at least as robust as those they had prior to
displacement.
8
Appropriate principles for negotiated settlement transactions include (a) intended project sites are screened to identify
competing claims to ownership or use, or other encumbrances that would impede two-party negotiations; (b) if the site is
collectively or communally owned or used, the negotiation process includes those individuals or households who directly
occupy or use it; (c) prior to negotiations, owners or users are informed by project authorities of their intent to obtain relevant
land (and other assets) for project use; (d) owners or users are informed of their rights and options to pursue legal remedies or
other actions, and sign a declaration indicating willingness to negotiate; (e) at the onset of negotiations, project negotiators
present the owner or user with a proposed package of compensation or other beneficial considerations, along with an
explanation as to the basis of this initial offer; (f) owners or users are informed that they may make counterproposals as they
may see fit; (g) negotiations are conducted without resort to coercion or intimidation in any form; (h) an agreement
establishing payment amounts or other agreed considerations is written, signed, and recorded; (i) payment of compensation
and provision of any other agreed considerations is completed prior to taking possession for project use; and (j) owners or users
retain the right of access to the grievance mechanism if they have complaints regarding any aspect of the negotiated settlement
process.
9
Any land or asset donation for project use will be consistent with these principles: (a) the potential donor is informed that
refusal is an option, and that right of refusal is specified in the donation document the donor will sign; (b) donation occurs
without coercion, manipulation, or other pressure on the part of public or traditional authorities; (c) the donor may negotiate
for some form of payment, partial use rights, or alternative benefits as a condition for donation; (d) donation of land is
unacceptable unless provision is made to mitigate any significant impacts on incomes or living standards of those involved; (e)
donation of land cannot occur if it were to necessitate any household relocation; (f) for community or collective land, donation
can only occur with the consent of individuals directly using or occupying the land; (g) the land to be donated is free of
encumbrances or encroachment by others who may be adversely affected; (h) any donated land that is not used for its agreed
purpose by the project is returned to the donor in a timely manner; and (i) each instance of land donation is documented,
including a statement identifying the land or assets donated and terms of donation, which is signed by each owner or user.
Persons donating land or assets for project use may use the project grievance mechanism to raise complaints regarding any
aspect of the donation process.
10
Additional details regarding preparation of an RP are included in ESS5, Annex 1.
11
Additional details regarding planning measures for physical displacement are provided in ESS5, Annex 1, paras. 17–23.

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 encroachers, for remainder of term; currency per unit of land)
illegal businesses) assistance in finding
suitable alternative

Compensation for
improvements;
assistance in lieu of
land compensation

D. Temporary loss Owners, (TBD) Compensation for (TBD)

of land occupants, users duration of project use;
restoration of land to
prior condition

E. Loss of Producers (TBD) Opportunity to bring to (TBD)

agricultural market, or
production compensation at
market value at
- crops maturity (or
-fruit/nut trees compensation at net
-timber trees present value for trees
-aquaculture and livestock)
-forest produce
-livestock forage
-livestock

F. Loss of
productive fixed
assets

-irrigation Asset (TBD) Compensation at (TBD)

facilities owners/users replacement cost (non-
-fencing depreciated value
-wells including labor and
-troughs materials)
-sheds
-barns
-other

G. Loss of
residential
structures

12
Consideration of scale of loss of productive assets as well as changes in institutional, technical, cultural, economic, and other
factors may be important in determining the significance of economic displacement. In general practice, however, loss of 10
percent or more of productive land or assets from a household or enterprise often is considered significant. Additional details
regarding planning measures for economic displacement are provided in ESS5, Annex 1, paras. 24–29.

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(Often Owners (TBD) Direct house (TBD, usually specified as
categorized by replacement or unit of currency per square
major building compensation at meter of structure)
material ,fixed replacement cost (non-
improvements, or depreciated value
other features) including labor and
Occupants with (TBD) materials); transitional (TBD, usually specified as
legalizable claims assistance unit of currency per square
meter of structure)
Direct house
replacement or
Renters/Lessees compensation at
(TBD) replacement cost (non- (TBD)
depreciated value
including labor and
Illegal structures materials); transitional
(TBD) assistance (TBD)

Prorated compensation
for remainder of term;
assistance in finding
suitable alternative;
transitional assistance

Direct house
replacement or
compensation at
replacement cost (non-
depreciated value
including labor and
materials); transitional
assistance

H. Loss of
commercial
structures

(Often Owners (TBD) Compensation at (TBD)

categorized by replacement cost for
major building structures, fixed
material, function equipment and other
and capacity, improvements;
fixed transitional assistance
improvements, or Occupants with (TBD) (TBD)
other features) legalizable claims
Compensation at
replacement cost for

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 structures, fixed
Renters/Lessees equipment and other
(TBD) improvements; (TBD)
transitional assistance

Prorated compensation
Illegal structures for remainder of term;
(TBD) compensation at (TBD)
replacement cost for
fixed equipment and
other improvements;
transitional assistance

Compensation at
replacement cost for
structures, fixed
equipment and other
improvements;
transitional assistance

I. Loss of Affected TBD, requires In addition to (TBD)

agricultural agricultural definition of compensation for lost
livelihood producer significant lane and assets,
impact caused persons whose
by severity of livelihoods are
loss or significantly affected
imposed receive alternative
changes in employment, skills
livelihood training, business
methods development
assistance, or other
additional assistance
linked to livelihoods
restoration or
improvement
J. Temporary loss Owner, (TBD) Payment of support for (TBD, based on prior
of business enterprise period of disruption reported profits or other
income forms of estimation)

K. Temporary loss Employees (TBD) Payment of wages or (TBD, based on payment

of employment or unemployment support records or other forms of
wages for period of disruption estimation)

L. Loss of public Public or private (TBD) Compensation at (TBD)

or community owners replacement cost for
infrastructure, damage or destruction

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facilities or of infrastructure and
services facilities; assistance in
restoring functionality
and accessibility of
services
M. Material
assistance to
vulnerable or
disadvantaged

Displaced illegal (TBD) In addition to (TBD)

residents, users applicable forms of
or occupants compensation and
assistance, provision of
Blind or (TBD) defined security of (TBD)
otherwise tenure
disabled
Project design provides
Occupants (TBD) features relating to (TBD)]
displaced from safety and accessibility
substandard
housing
Arrangements for
obtaining replacement
housing meeting
minimum legal or
community standards

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Endnotes

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