IFC Performance Standard 5

PS 5: Land Acquisition and Involuntary Resettlement

ifc-ps-5-iconKey Questions to be addressed during due diligence:

A resettlement action plan (RAP) specifies the procedures that will be followed and the actions that will be taken to mitigate adverse effects compensate losses and provide development benefits to persons affected.

Project design

  • Is there any land acquisition planned (or already carried out) for the proposed investment?
  • If yes, what was the previous land use?
  • How was the land acquired? (Willing buyer seller relationship?)

Compensation and Benefits for Displaced Persons

  • Has there been any physical displacement (affected persons to shift their homes) or economical displacement (affected persons to loose their assets or access to assets that leads to loss of income sources or means of livelihood) as a result of land acquisition for this project?
  • Has the client engaged with the displaced persons and communities?

Community engagement

  • Has the client disclosed all relevant information, consulted with affected persons and facilitated their engagement in the decision making process?

Grievance Mechanism

  • Has the client established an effective mechanism to receive and address specific concerns about compensation and relocation that are raised by displaced persons or members of host communities?

Resettlement and Livelihood Restoration Planning and Implementation

  • Has the client considered alternative designs to avoid or minimize displacement?
  • Has the client identified persons to be displaced by the project and those eligible for compensation and assistance through a baseline census?
  • Has the client prepared a Resettlement Action Plan that mitigates the negative impacts of displacement?
  • Does the RAP include a livelihood restoration section, i.e. a plan that assures that affected persons will be assisted to earn their living after resettlement?

Private Sector Responsibilities under Government-Managed Resettlement

  • Was resettlement managed by the government?
  • If yes, does the client collaborate with the responsible government agency, to the extent permitted by the agency, to achieve outcomes that are consistent with PS 5?
  • In addition, where government capacity is limited: Does the client play an “active role” during resettlement planning, implementation, and monitoring?