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RP899 
 
GOVERNMENT OF SAO TOME AND PRINCIPE 
 
Social Sector Support Project (SSSP) 
Additional Financing 
 
RESETTLEMENT POLICY FRAMEWORK 
1
A
LKA KOTHARI 
Updated on October 31, 2009 
1
This is an update from the original report prepared in 2004 for the purpose of the IDA-financed Social 
Sector Support Project. 
 
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TABLE OF CONTENTS
A.  Introduction and Project Description 
 
B.  Principles and objectives governing resettlement preparation 
and implementation 
Page No. 
4
9
C.  A description of the process for preparing and approving 
10 
Resettlement plans 
D.  Eligibility criteria for defining various categories of project affected persons 
13 
E. 
Methods of valuing affected assets 
14 
F. 
A legal framework reviewing the fit between borrower laws and regulations 
15 
and Bank policy requirements and measures proposed to bridge any gaps 
between them 
G.  Organizational procedures for the delivery of entitlements 
20 
H.  A description of the implementation process 
22 
I. 
A description of the grievance redress mechanisms 
24 
J. 
A description of the arrangements for funding resettlement, including the 
26 
preparation and review of cost estimates, the flow of funds, 
and contingency arrangements 
K.  A description of mechanisms for consultations with, and participation of, 
30 
affected and/or displaced persons in planning, implementation, and monitoring 
L. 
Arrangements for monitoring by the implementation agency and, 
32 
if required, by independent monitors 
Government of Sao Tome and Principe
Resettlement Policy Framework
2
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PASS 
Glossary of Key Terms
x
Cut - off Date 
–
refers to a day on and beyond which any person who occupies land 
required for project use, will not be eligible for compensation. The date is often the day 
when the assessment of persons and their property in the project area commences. 
x
Market rate – 
is defined as the highest rate over the last three to five years based on 
commercial terms. 
x
Project Affected Person(s) (PAPs) – 
are persons affected by the land use or acquisition 
needs of project supported activities that lead to these person(s) being required to (or not 
necessarily required to) be physically displaced or relocated due to loss of shelter and or, 
lose, denied or restricted access and or to economic assets, or lose income sources or 
means of livelihood, whether or not the person(s) must move to another location. 
x
Resettlement and Compensation Plans (RAPs), 
are also known as Resettlement Action 
Plans or Resettlement Plans 
–
are resettlement instruments (documents) to be prepared 
when project activities 
are identified 
,
that require land acquisition that leads to physical 
displacement of persons, and/or loss of shelter, and /or loss of livelihoods and/or loss, 
denial or restriction of access to economic resources. RAPs are prepared by the party 
impacting people and livelihoods in this manner and contain specific and legal binding 
requirements to be taken by that party to resettle and compensate the affected party before 
project activities causing this adverse impact are implemented. 
x
Resettlement Policy Framework (RPF), 
is also a resettlement instrument (this document) 
that is prepared by the borrower (in this case by the Government of Sao Tome e 
Principe) when project activities that require land acquisition that lead to physical 
displacement of persons, and/or loss of shelter, and /or loss of livelihoods and/or loss, denial 
or restriction of access to economic resources, 
are not identified 
at the project preparation 
stage. The RPF is therefore prepared and disclosed before the proposed project is appraised 
setting out the resettlement and compensation principles, organizational arrangements and 
design criteria to be applied to meet the needs of the people who may be affected by the 
project, when project activities are identified. The RAP is prepared consistent 
with the provisions of the RPF. 
Government of Sao Tome and Principe
Rese
ttlement Policy Framework
3
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Social Sector Support Project (SSSP) 
Additional Financing 
B. INTRODUCTION and PROJECT DESCRIPTION 
 
This Resettlement Policy Framework (RPF) is an update of the original framework prepared in 
2004 for a Social Sector Support Project (PASS).  This update focuses on the 
additional financing 
of the Social Sector Support Project 
(SSSP) granted to the Republic of São Tome & Principe for 
an amount of US$2.4 million.  The development objective of the proposed additional financing is to 
contribute to improving delivery of basic education services, with a focus on greater and more 
equitable access, better quality, and improved local governance.  
 
The Grant will allow for the scaling up of ongoing health interventions launched under the PASS. It 
will particularly contribute to: (a) improving equity and access to basic health services; (b) 
im
p
roving the quality of basic health services; (c)
 
cross-sectoral issues (HIV/AIDS and Malaria. 
The following activities to be funded by the CF Grant have been identified: 
 
(i) 
Improving access and equity to basic services
.
Activities under the first sub-component 
include the rehabilitation of the health center in Porto Alegre to complete the set of 
rehabilitation works of rele
vant health centers that have bee
n
carried out with the support 
of the project, and the construction of four residences for health staff in the district of 
Cantagalo and the island of Principe, which are deemed necessary to retain and motivate 
health staff in these remote areas of the country.    
(ii) 
Im
p
roving the quality of basic health services
.
The quality sub-component includes 
capacity building and training activities such as developing alternatives for the medium-
term financing of the health sector, as a first step towards a financial sustainability of the 
health system; rehabilitation and equipment of the health national school and a high-level 
training of its personnel, particularly nurses and managers; validation and pilot experiment 
of the health information system set up with the support of the Project; pursue the use of the 
media to promote health prevention attitudes among the population, including issues of 
reproductive health; and training of teachers of primary schools on visual, oral, and 
intestinal health as a complement of the ongoing de-worming program in schools.    
(iii) 
Cross-sectoral issues (HIV/AIDS and Malaria
)
:
This component has two sub-components: 
HIV/AIDS and Malaria. Activities under these sub-components include the rehabilitation 
and expansion of National Center for Endemic Diseases (
Centro Nacional de Endemias
)
to 
help improve its functionality; the training of key health staff working on HIV/AIDS 
program; and the purchase and distribution of condoms for the prevention of HIV/AIDS 
transmission, in line with what the Project has been doing over the last years 
 
The preparation of a Resettlement Action Plan (RAP) is not required at this stage since the 
project will finance classrooms on existing school sites. Notwithstanding, in line with the Bank’s 
Involuntary Resettlement Policy OP 4.12, the Government of Sao Tome e Principe is required 
to prepare a Resettlement Policy Framework for disclosure before appraisal. The RPF 
establishes the resettlement principles, organizational arrangements and design criteria to 
be applied to activities that will be prepared during project implementation in compliance with 
the laws of STP and the Bank’s safeguards policy on resettlement. 
B. POLICY PRINCIPLES and OBJECTIVES GOVERNING RESETTLEMENT 
Government of Sao Tome and Principe
Resettlement Policy Framework
4
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PR
EPARATION and IMPLEMENTATION 
The impacts due to involuntary resettlement from development projects, if unmitigated, often 
gives rise to severe economic, social and environmental risks resulting in production 
systems being dismantled, people facing impoverishment when their productive assets or 
income sources are lost, people being relocated to environments where their productive skills 
may be less applicable and the competition for resources greater; community institutions and social 
networks being weakened; kin groups being dispersed; and cultural identity, traditional authority, 
and the potential for mutual help are diminished or lost.  
Therefore, the objectives of this policy are the following: 
i) Involuntary resettlement should be 
avoided where feasible, or minimized, exploring all viable alternative in activity design. 
Where involuntary resettlement is unavoidable, resettlement activities should be 
conceived and executed as sustainable development programs, providing sufficient 
investment resources to give the persons displaced by the project the opportunity to share 
in project benefits. Displaced persons should be meaningfully consulted and should 
have opportunities to participate in planning and implementing resettlement programs. 
Displaced persons should be assisted in their efforts to improve their livelihoods 
and standards of living or at least to restore them, in real terms, to pre-displacement levels 
or to levels prevailing prior to the beginning of project implementation, whichever is 
higher. 
Here, the affected people, according to the Bank policy, refers to people who are directly 
affected socially and economically by the Bank assisted investment projects, caused by: (a) the 
involuntary taking of land and other assets resulting in: 
 
(i) 
relocation or loss of shelter; 
(ii) 
loss of assets or access to assets; 
(iii) 
loss of income sources or means of livelihood, whether or not the 
affected persons must move to another location; 
or 
(b) the involuntary restriction of access to legally designated parks and protected 
areas results in adverse impacts on the livelihood of the displaced persons. 
 
The resettlement policy applies to all components under the project, whether or not they are 
directly funded in whole or in part by the Bank. It also applies to other activities resulting 
from involuntary resettlement, which in the judgment of the GoSTP and the Bank, are (a) 
directly and significantly related to the Bank assisted project, (b) necessary to achieve its 
objectives as set forth in the project documents; and (c) carried out, or planned to be carried 
out, contemporaneously with the project.  
 
The policy applies to all displaced persons regardless of the total number affected, the severity of 
impact, and legal title to land. Particular attention should be paid to the needs of vulnerable groups 
among those displaced; especially those below the poverty line, the landless, the elderly, women 
and children, indigenous groups and ethnic minorities or other displaced persons who may not be 
protected through STP’s land compensation legislation. In particular for this project, the policy also 
requires that the implementation of resettlement plans are a pre-requisite for the 
implementation of activities to ensure that displacement or restriction of access does not occur 
before necessary measures for resettlement are in place. For activities involving land acquisition, it 
is further required that these measures include provision for relocation, prior to displacement, and 
preparation and provision of resettlement sites with adequate facilities, where required. In 
particular, the taking of land and related assets may take place only after compensation has been 
Government of Sao Tome and Principe
Resettlement Policy Framework
9
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6
paid and, where applicable, resettlement sites and moving allowances have been provided to 
displaced persons. For activities requiring relocation or loss of shelter, the policy further 
requires that measures to assist the displaced persons are implemented in accordance with the 
activity’s resettlement plan of action. 
The policy aims to have the displaced persons perceive it to be fair and the compensation process 
transparent. 
C. DESCRIPTION OF THE PROCESS FOR PREPARING AND APPROVING 
RESETTLEMENT PLANS 
To address the impacts under this policy, activities resettlement plans must include measures to 
ensure that the displaced persons are; 
a) 
informed about their options and rights pertaining to resettlement 
b) 
consulted on, offered choices among, and provided with technically and 
economically feasible resettlement alternatives 
c) 
provided prompt and effective compensation at full replacement cost for loss 
of assets attributable to the activity as well as costs incurred as a result of 
resettlement. 
At the start of implementing the project, two studies would have to be conducted, namely, 
a) 
A
Socio-economic Study 
b) 
Assets Evaluation Study 
The purpose of the Socio-economic study is to collect baseline data within the project targeted areas 
thereby enabling the social assessment of potentially affected populations/communities. Under this 
study a comprehensive census would be carried out to identify potentially affected people on the 
individual and household levels, vulnerable groups (women, children, the elderly, female 
headed households, etc.). The social assessment would focus on identification of stakeholders 
(demographic data), the participation process, identification of affected people and impact on their 
property and their production systems, the institutional analysis and the system for monitoring and 
evaluation. Detailed calculation of household economies will be necessary in the social assessment 
and be the determinant in the potential compensation process. 
The purpose of the evaluation of assets study is to evaluate potential activity requiring land and to 
determine the sizes of the individual pieces of land that will be acquired. It would also classify the 
land, built structure and any other immovable assets and will also provide guideline information on 
the value of these assets.  
When the results of these studies are available, the resettlement plans for activities would be 
prepared by the implementers (Focal Points) and screened and approved through the 
Department of Infrastructure (DoI) in compliance with the project institutional 
administrative arrangements. It would also require that the resettlement plans are 
consistent with this framework policy and approved by the Bank. 
Therefore, each activity that is proposed to be included would be screened and classified 
according to its environmental and social impact. The screening and classification 
process should follow certain criteria already established and the mitigation measures that will be 
proposed vis-à-vis environmental and social issues should be in compliance with all Government 
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7
of STP Environmental and World Bank Safeguard policies. Certain activities will not be 
funded by the project, including those likely to trigger selected safeguards for e.g. disputed areas, 
cultural property, indigenous peoples and natural habitats. 
The DoI will screen the proposed activities that it receives from the beneficiaries. 
The  
Screening Process 
The screening process would take the form of; 
1.) 
Classifying the activities by activity into the following categories; 
i) 
Building of schools 
ii) 
Building of medical clinics 
iii) 
Others 
2.) 
Identifying and evaluating potential impacts for each proposed activity on the resettlement 
policy. 
3.) Triggering of the resettlement policy would require a preliminary determination of 
whether the activity should be proposed or not, based on an assessment of the intensity of 
the impact and on the mitigation measures that would need to be developed and 
proposed. The Focal Point can then decide to present its case even where 
extensive/cumbersome mitigation measures are deemed necessary in the activity. 
4.) 
Determining the need for land acquisition and whether there is a need to obtain legal 
title to the land. This is a pre-condition for approval. 
5.) 
Using of the Socio Economic Studies to identify affected people on the household level and 
vulnerable groups in the activity impact area(s) and to calculate household economies. 
6.) 
Using the assessment evaluation reports. 
7.) 
Ensuring that land required/acquired is 
not, 
(i) in disputed areas, (ii) cultural property, (iii) 
negatively affecting indigenous peoples and (iv) is not in natural habitats. This is a pre-
condition for approval. 
The above screening process should be used by the FP in the preparation of the activities to 
enhance their likelihood for approval. Notwithstanding, at the level of the DoI activities 
received would be reviewed applying very similar screening and evaluation mechanisms as 
those carried out by the FPs in order to review and control the process already carried out. 
Furthermore, the DoI should as a guideline consider the cumulative factor and not approve 
activities that have individual high impact intensity. For example, where land acquisition is 
required to such an extent that it would require more than 5% of a communities total 
land under cultivation or when the mitigation measures are so cumbersome that their 
efficacy cannot be predetermined or they cost more than 20% of the investment budget. 
Before the decision to approve a activity is taken, the DoI will need to approve or disapprove the 
resettlement plan of the activity in totality with the overall environmental and social 
screening process that has been applied for each activity and to also approve or disapprove of 
the proposed mitigation measures, if any. Final approval of Resettlement Action Plans will be 
made by the Bank. 
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The activities focus only on constructing additional classrooms on existing school facilities. 
D. ESTIMATED POPULATION DISPLACEMENT AND LIKELY CATEGORIES OF 
DISPLACED PERSONS 
 
At this stage any attempt to quantify the estimated likely number of people who may be affected 
would be at best, unreliable, since the activities have not all been identified.  
However, the likely displaced persons can be categorized into three groups, namely; 
i) 
Affected Individual - 
An individual who suffers loss of assets or investments as a 
result of the activities and to whom compensation is due. For example, an 
affected individual is a person who farms a field, or who has built a structure on land 
that has been demarcated for agricultural use by the GoSTP and is now required 
by an activity. 
ii) 
Affected Household - 
The people whom an affected individual declares ought 
to join him or her in resettlement. This provides for: 
a) 
vulnerable individuals who may be too old or ill to farm along with the others 
b) 
relatives who cannot reside together because of cultural rules, but who depend 
on one another for their daily existence. 
c) 
relatives who may not eat together but provide housekeeping, or reproductive 
services critical to the family’s maintenance, and 
d) 
other vulnerable people who cannot participate for physical or cultural reasons 
in production, consumption, or co-residence. 
Resettlement will not be limited to people who live together in a co-resident group, since this might 
leave out people whose labor contributions are critical to the functioning of the “household”. For 
example, many wives have separate homes. An opposite-sex parent and child cannot live together, 
due to special proscriptions, even though the child is often the parent’s main support. 
iii) 
Vulnerable Households - 
vulnerable households may have different land 
needs from most households or needs unrelated to the amount of land available to 
them. This provides for: 
a) 
Women 
–
may depend on husbands, sons, brothers or others for 
support. In many cases too, women are the main breadwinner in their 
household. They need relatively easy access to health service facilities, as 
mothers and wives. Women are central to the stability of the 
household. They should not be resettled in a way that separates them from their 
households as the very survival of their households depends on them. 
b) 
Unmarried women – 
may be dependent on sons, brothers, or others for 
support. Since an affected individual is able to name the person with whom 
s/he is linked in dependency as part of the household, resettlement will never 
sever this link. 
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c) 
Non-farming females 
–
these earn income from other sources and/or depend 
on 
relatives for “exchanges” of staple foods. Since they do not farm, they will 
not be affected by the activities need for agricultural land. If a building of 
theirs lies on land needed by a activity, they will receive replacement cost 
compensation. If someone on whom they depend is resettled, they are 
protected because the resettler can name them as part of the household. 
d) 
Elderly 
–
Elderly people farm as long as they are able. They produce small 
amounts of food to "exchange" with others, they can subsist on the cooked 
food and generous return gifts of cereal from people such as their kin and 
neighbors. Damage to their economic viability would result if resettlement 
separates them from the person or household on whom they depend for their 
support. The definition of household by including dependents avoids this. 
These household types are not mutually exclusive: e.g. an elderly woman may be 
unmarried (or widowed). 
E. ELIGIBILITY CRITERIA FOR DEFINING VARIOUS CATEGORIES OF PROJECT 
AFFECTED PERSONS 
The Bank’s OP 4.12 suggests the following four criteria for eligibility: 
a) 
Those who have formal rights to land (including customary land, 
traditional and religious rights), recognized under Sao Tomean Law. 
b) 
Those who do not have formal legal rights to land at the time the census begins 
but have a claim to such land or assets provided that such claims are recognized 
under the laws of STP or become recognized through a process identified in the 
resettlement plan. 
c) 
Those who lose other economic resources such as trees, agricultural 
produce on cultivated fields, etc, and or have their access to these 
economic resources denied or restricted. 
d) 
Those who have no recognizable legal right or claim to the land they are 
occupying, using or getting their livelihood from. 
Those covered under a) and b) above are to be provided compensation for the land they lose, and 
other assistance in accordance with the policy. Persons in category c) are compensated for loss 
of economic resources in accordance with this RPF. Persons covered under d) above are 
to be provided with resettlement assistance in lieu of compensation for the land they 
occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they 
occupy the project area prior to a cut-off date established by the DoI subject to “no objection” of 
the Bank. Persons who encroach on 
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The area after the cut-off date are not entitled to compensation or any other form of resettlement 
assistance. All persons included in a), b) or c) above are to be provided with compensation for loss of 
assets other than land. 
Therefore, it is clear that all affected persons irrespective of their status or whether they have formal titles, 
legal rights or not, squatters or otherwise encroaching illegally on land, are eligible for some kind of 
assistance if they occupied the land before the entitlement cut-off date. Persons who encroach on the area 
after the socio-economic study (census and valuation) are not eligible for compensation or any form of 
resettlement assistance. 
Eligibility for Community Compensation 
Communities (districts, regions, communes, towns and villages) permanently losing land and/or access to 
assets under communal rights will be eligible for compensation. 
Method to Determine the Cut 
–
Off Dates 
The entitlement cut-off date refers to the time when the assessment of persons and their property in the 
activity area is carried out, i.e. the time when the activity area has been identified and when the socio-
economic study is taking place. Thereafter, no new cases of affected people will be considered. The 
establishment of a cut-off date is required to prevent opportunistic invasions /rush into the chosen land 
thereby posing a major risk to the project. Therefore, establishment of a cut-off date is of critical 
importance. 
F. LEGAL FRAMEWORK  
Context 
STP was colonized by the Portuguese in the late 15
th
 century. As was the model of 
Portuguese colonization in other parts of Africa, a defined plantation 
system (roças) was 
established, and the great majority of the land, and certainly all agricultural land, 
was controlled by a small group of white Portuguese plantation owners. The 
plantation labor system was the economic model of STP development, which 
depended entirely on slavery, indentured and contract migrant labor. After the 
abolition of slavery, workers, though freed in theory, were still forced to work on the 
plantations.  
 
As for agricultural production, after colonization, STP soon became the world’s 
largest producer of sugar. Having lost their dominance in sugar production to the 
Caribbean in later centuries, they began to center production around cocoa and 
coffee in the nineteenth century. In 1909, the Portuguese colonial authorities attempted to 
restrict re-contracting in the face of growing international pressure; in practice, indentured 
labourers had no chance of leaving the service of the plantation they had been allocated to. 
However, the reforms proved these developments led to chronic shortages of labour. Despite 
very high levels of unemployment, Sao Tomeans have always shunned labour on the 
plantations, owing to its close association with slavery. 
After independence 1975, the skilled Portuguese agro-managerial elite fled STP and there 
were failed attempts at collectivization and land reform by the new government. These 
problems were exacerbated by extremely poor commodity prices in the 1970s and the 
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1980s. 
Following STP’s independence, the roças were nationalized and later regrouped 
into 15 Empresas Estatais Agro-pecuárias (State Agriculture and Livestock Enterprises, 
called 
empresas 
for short), which was defended as the necessary response to the flight 
of the Portuguese. The first Republic embraced socialists policies, especially 
concerning land tenure and agricultural production. Unfortunately, the twin-
problems of running state-owned farms and the collapse of cocoa prices in 1979 left 
STP without sufficient foreign exchange to pay for vital inputs for the industry. Only one state-
owned plantation was profitable in the 1990s. 
In 1990 the country began reform of the socialist, state-run economy, and began a 
large-scale land reform initiative. Consequently, the government adopted a new 
privatization program in connection with public enterprise reform in 2000. In the agricultural sector, the 
government has already turned all its large agricultural estates over to private operators under long-term 
operating leases and redistributed about 30,000 hectares of cultivated land to 5,000 families of small-and 
medium-scale farmers. In 2000, it finalized, with assistance from the World Bank, its strategy for 
privatizing large government agricultural estates and rationalizing the land tenure system in order to 
increase production and reinforce investment incentives. Achieving sustainable growth in per capita 
income will help reduce poverty in São Tom é and Príncipe. Specifically, the distribution of arable land to 
small farmers and the rationalization of the land tenure system should improve appreciably the 
standard of living of rural populations. 
Legal Context 
Lei N 3/91 on Land Tenure recognizes the expropriation and rehabilitation of public and private lands. 
Specifically, article 46 specifies the general modalities for expropriation. 
The law also defines the parameters for private use of state-owned land for private use in Article 2, and the 
definition of private land and property. 
The law relating to land tenure in STP is clear that entitlements for payment of compensation are 
essentially based on the right of ownership. In practice, the consultant saw many cases where people had 
been resettled and compensated based on customary rights to the land and/or property. The laws 
of STP have no fixed standard for compensation or identification of people who are eligible for 
resettlement compensation. 
The Bank OP is fundamentally different from this and states that affected persons are entitled to 
some form of compensation whether or not they have legal title if they occupy the land by a cut-off 
date. The two legal frameworks will be used in a complimentary manner to strengthen and ensure 
the principles of fair compensation and compensation at market value. Nonetheless, as this is a 
Bank funded project, the principles of must be adhered to if the Bank is to fund the project. As a 
result, people affected by this project would be entitled to protection of the Laws of STP and the 
Bank OP 4.12. Where there is a conflict, the Bank OP4.12 must take precedence. 
Category of PAPS/ Type of Lost 
World Bank OP4.12 
Land Owners 
Recommends land-for-land compensation. 
Other compensation is at replacement cost. 
17
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Land Tenants 
Are entitled to some form of compensation 
whatever the legal recognition of their 
occupancy. 
Land Users 
Entitled to compensation for crops, may be 
entitled to replacement land and income must 
be restored to pre-project levels at least. 
Owners of “Non permanent” Buildings
Entitled to in-kind compensation or cash 
compensation at full replacement cost 
including labor and relocation expenses, prior 
to displacement. 
Owners of “Permanent” buildings 
Entitled to in-kind compensation or cash 
compensation at full replacement cost 
including labor and relocation expenses, prior 
to displacement. 
Perennial 
Crops 
As per section G of this RPF once approved by the 
Bank and disclosed in ST and at the Bank Infoshop.
Based on the above compensation structure, entitlement matrix presented below is so designed to 
be in compliance with these requirements. The missing values in the entitlement matrix will 
be determined at the time the resettlement plans (RAPs) are being negotiated and prepared. 
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Page  15
15
G. METHODS OF VALUING AFFECTED ASSETS. 
Valuation methods for affected land and assets would depend on the type of asset. The two land 
asset types identified earlier in this policy framework are: 
(i) 
Assets held under Statute Law (including State or Privately held Land) 
(ii) 
Assets held under Customary Law 
State owned land may be allocated free or sold on a commercial basis to the project by the 
Minister responsible for land administration (perhaps except for processing and registration fees), 
the project would be expected to pay compensation to acquire land in this category in cases where 
the state-owned land is being used by farmers or for instance grazed upon, settled upon or other 
wise being used. Privately owned property would have to be acquired at the market value. The 
guiding principle is that whoever was using the land to be acquired would be provided other land of 
equal size and quality. 
EFA/FTI would compensate for assets and investments, including labor, crops, buildings, and 
other improvements, according to the provisions of the resettlement plan. 
Compensation rates would be market rates as of the date and time that the replacement is to be 
provided. The market prices for cash crops would have to be determined. Calculations 
for compensation would not be made after the entitlement cut-off date in compliance with this 
policy. For communal land held under customary law, the permanent loss of any such land 
will be covered by community compensation which will be in-kind, only. However, because the 
Bank policy on resettlement, OP 4.12, makes no distinction between statute and customary rights, 
not
only assets and investments will be compensated for, but also land. Thus, a customary land 
owner or land user on state owned land will be compensated for land, assets, investments, 
loss of access etc. at market rates at the time of the loss. 
Compensation Payments and Related Considerations 
Individual and household compensation will be made in cash, in kind, and/or through assistance. 
The type of compensation will be an individual choice although every effort will be made to instill 
the importance and preference of accepting in kind compensation if the loss amounts to more that 
20%
of the total loss of subsistence assets. 
FORMS OF COMPENSATION 
Cash Payments 
Compensation will be calculated in dobras. Rates will be 
adjusted for inflation. 
In-kind Compensation 
Compensation may include items such as land, houses, and 
other buildings, building materials, seedlings, agricultural 
inputs and financial credits for equipment. 
Assistance 
Assistance may include moving allowance, transportation 
and labor 
Making compensation payments raises some issues regarding inflation, security and timing 
that must be considered. One purpose of providing in-kind compensation is to reduce 
inflationary pressures on the costs of goods and services. Local inflation may still occur, thus 
Page  16
16
market prices will be monitored within the time period that compensation is being made to allow 
for adjustments in compensation values. The question of security, especially for people who will be 
receiving cash compensation payments needs to be addressed by the local administration. Local 
banks and micro finance institutions should work closely with the local administration at this 
level to encourage the use of their facilities which will positively impact the growth of the local 
economies. The time and place for in-kind compensation payments will be decided upon by each 
recipient in consultation with the project sponsor and the EFA/FTI. 
Compensation for Land 
Compensation for land is aimed at providing a farmer whose land is acquired and used for 
project purposes with compensation for land labor and crop loss. For this reason, and for 
transparency, “Land” is defined as an area or Homestead: 
·
In cultivation 
·
Being prepared for cultivation, or 
·
Cultivated during the last agricultural season 
This definition recognizes that the biggest investment a farmer makes in producing a crop is his of 
her labor. A farmer works on his/her land most of the months of the year. The major input for 
producing a crop is not seed or fertilizer, but the significant labor put into the land each year by the 
farmer. As a result, compensation relating to land will cover the market price of labor invested as 
well as the market price of the crop lost. 
Land measurement 
For purposes of measuring land, the unit of measurement would be that which is used and 
understood by the affected farmers. Therefore, if a traditional unit of measurement exists, 
that unit should be used. In most cases the unit the farmer knows is called “the strip”. A strip is 
an equal portion of part of a homestead that has been so divided for use by members of that 
homestead. For example, Homestead A with five entitled members may contain five strips; another 
home with twelve entitled members may be divided into twelve strips. The strips in Homesteads A 
and B of this example will not be the same size (in most cases). But the members of each 
homestead know the size or area of their own strip. If a traditional unit of measurement does not 
exist in a particular area and they are not familiar with the concept of “strips”, then it is 
recommended that land should be measured in meters or any other internationally accepted unit of 
measurement. However, in such an event, the unit that is being used must be explained to the 
affected farmers and must somehow be related to easily recognizable land features that the 
communities are familiar with, such as using location of trees, stumps, etc. as immovable pegs. The 
most important concern of this exercise is to ensure that the affected person is able to verify using 
his/her own standards/units of measurement for him/herself, and the size of land that is being 
lost. Ensuring that this occurs maintains transparency in the system and will thus avoid subsequent 
accusations of wrong measurements or miscalculation of areas. For instance, a farmer losing one 
strip in a homestead knows exactly how much land he/she is losing, in terms of size and the 
replacement land must be at least of that same size of “strip”, determinable by the farmer. 
Calculation of Crops Compensation Rate 
The current prices for cash crops would have to be determined. All crops to be 
Page  17
17
compensated using a single rate regardless of the crop grown. This rate incorporates the value of 
crops and the value of the labor invested in preparing a new land. Determining compensation using 
a
single rate creates transparency because anyone can measure the area of land for which 
compensation is due and multiply that by a single rate known to all. This approach also allows 
assignment of values to previous year’s land (land in which a farmer has already invested 
labor) and land that have been planted but have not yet sprouted. Further, it avoids contention 
over crop density and quality of mixed cropping. The value of the labor invested in 
preparing agricultural land will be compensated at the average wage in the community for the 
same period of time. The rate used for land compensation is to be updated to reflect values at the 
time compensation is paid. 
Crop values will be determined based on: 
·
A
combination of staple foods and cash crops. Specifically, the 80/20 ratio of land that a 
farmer typically has in food crops and cash crops is used to determine the chances s/he 
would lose food crop rather than a cash crop income. 
·
The value of stable crops to be taken as the highest market price (over 3 years) reached 
during the year, in recognition of these factors: 
Although most farmers grow staple crops mainly for home consumption, they always have the option 
of
selling these crops to take advantage of the market. 
Farmers most often purchase cereals when they have run out, during the “hungry season” when 
prices are high. Compensating at a lower value might put the individual or household at risk. 
•
The labor cost for preparing replacement land is calculated on what it would cost a farmer to 
create a replacement land. This value is found by adding together the average costs of clearing, 
plowing, sowing, weeding twice, and harvesting the crop. Labor costs will be paid in dobras, at 
the prevailing market rates. 
The following table presents an example of a compensation schedule for a one-hectare land. The 
dobra values will need to be validated at the time payments are made. 
EXAMPLE OF LAND COMPENSATION SCHEDULE OF PAYMENTS 
Activity 
Month Paid 
Labor in dobras/ha 
Rate Cost/day x no. of days 
Clear
March
Plough
May
Sow
May
-
Page  18
18
Weed
May
Harvest
November
Total
All agricultural labor activities are included for two reasons. First, because of the need for 
transparency, all land labor will be compensated for at the same rate. Second, it is difficult 
to forecast when during the growing season a farmer might need to give up his/her land. Thus, 
the land compensation covers all investments that a farmer will make. In certain cases, assistance 
may be provided to land users in addition to compensation payments, for example, if the farmer is 
notified that his/her land is needed after the agriculturally critical date of March, when s/he will 
no longer have enough time to prepare another land without help. Assistance will be 
provided in the form of labor intensive village hire, or perhaps mechanized clearing, so that 
replacement land will be ready by the sowing dates. The farmer will still continue to 
receive his/her cash compensation so that /s/he can pay for sowing, weeding and harvesting. 
Compensation for Buildings and Structures 
Compensation will be paid by replacing structures such as huts, houses, farm 
outbuildings, latrines and fences. Any homes lost will be rebuilt on acquired replacement land, 
however cash compensation would be available as a preferred option for structures (i.e. extra 
buildings) lost, that are not the main house or house in which someone is living. The going 
market prices for construction materials will be determined. Alternatively, compensation 
will be paid in-kind for the replacement cost without depreciation of the structure. The project 
will survey these prices for administrative purposes on an ongoing basis. 
Compensation will be made for structures that are: 
·
Abandoned because of relocation or resettlement of an individual or household, or 
·
Directly damaged by construction activities. 
Replacement values will be based on: 
·
Drawings of individual’s house and all its related structures and support services, 
·
Average replacement costs of different types of household buildings and 
structures based on collection of information on the numbers and types of 
materials used to construct different types of structures (e.g. bricks, rafters, bundles 
of straw, doors etc.), 
·
Prices of these items collected in different local markets, 
·
Costs for transportation and delivery of these items to acquired/replacement land or 
building site, 
·
Estimates of construction of new buildings including labor required. 
COMPENSATION FOR 
BUILDINGS AND STRUCTURES
Buildings and structures will be replaced by an equivalent 
structure or, on an exception basis, cash and/or credits will be 
paid based on replacement costs. 
Item
Example
House 
Raw or Baked brick 
Straw or tin roof 
Varying sizes (small, medium large) 
Page  19
19
Kitchen Open, 
closed 
Stables/sheds/pens 
Cattle, goat, donkey, sheep, other 
Coops 
Chicken, duck, other 
Fence 
Straw/poles (per unit poles & mat), raw and/or baked brick/cement 
blocks (per 
1-m length) 
Private Bathin 
. 
Latrine 
Replacement latrines will be similar to those currently operational 
and financed 
by the bank or other donor agencies at health centers, schools. 
Open well 
Internally lined with concrete rings and provided with a hand 
driven pump. 
Storage building 
Cement/sandblock walls with thatched roof on z-profiled metal 
sheets. 
Sun Screen open huts/shades 
Similar to those replaced, on thatched roof on wood poles. 
Compensation for Sacred Sites 
This policy does not permit the use of land that is defined to be cultural property by the Banks 
Safeguards OP 4.11. Sacred sites include but not restricted only to; altars, initiation 
centers, ritual sites, tombs and cemeteries. It includes other such sites or places/features that are 
accepted by local laws (including customary), practice, tradition and culture as sacred. To avoid 
any possible conflicts between individuals and/or communities/homesteads the use of sacred sites 
for any project activity, is 
not 
permitted under this project. 
Compensation for Vegetable Gardens 
These are planted with vegetable and ingredients for daily use. Until a replacement garden 
starts to bear, the family displaced (economically or physically) as a result of the project land needs 
will have to purchase these items in the market. The replacement costs therefore, will be calculated 
based on the average amount that an average town dweller spends on buying these items for one 
year per adult from the local market. 
Compensation for Horticultural, Floricultural and Fruit trees 
Cacao and Banana trees are featured here below as two examples of the set of primary fruit/bean 
trees in the project targeted area and are estimated to account for a significant amount of all 
fruit/bean bearing trees. They are primarily important as a source of: 
·
Subsistence food for families 
Page  20
20
·
Cash produce that contribute to the export economy 
·
Petty market income in some areas 
For Banana trees, they have a relatively much shorter productive life, normally, than coconut 
trees. Banana trees will not bear fruit more than once. Therefore, compensation for banana trees 
would be compensated at the full market rates for bananas harvested in that year and for another 
year. The second year payment is for the replacement cost of planting a new tree, looking after it 
and harvesting it which could all be done in one year. Therefore, the farmer should have restored 
his pre-project position by the end of the second year. This example of bananas is an example 
for trees/plants that have a relatively short life. 
Given their significance to the local and export economy, which this project intends to positively 
impact, cacao trees will be compensated on a combined replacement/market value. Cacao trees 
used for commercial purposes will be compensated at market value based on historical production 
records. If households chose to resettle, they will be compensated for the labor invested in the 
trees they leave behind, because they will continue to own the trees left behind under customary 
rights. It is not uncommon for individuals to own trees in other villages in which they formally lived 
and, in some cases, to continue to harvest fruit from those trees for subsistence purposes 
and/or sale to traders. If a homestead chooses to transfer ownership of the trees, transfer costs will 
be
paid in addition to labor costs. The compensation rate will be based on information 
obtained from the socio-economic study. From this study, a compensation schedule for cacao trees 
can be developed incorporating the following goals: 
·
Replace subsistence cacao production yields as quickly as possible. 
·
Provide subsistence farmers with trees to extend the number of months of the year during 
which cacao is produced and can be harvested. 
·
Provide farmers with the opportunity to derive additional production income from trees 
bearing more valuable fruits/beans at off-season periods. 
·
Provide cash payments to farmers to replace pre-project income derived from the sale of 
excess cacao production until replacement trees produce the equivalent (or more) in 
projected cash income. 
The compensation schedule is based on providing a combination of new grafted and local trees to 
farmers, as well as cash payments to offset lost yearly income. The schedule could assume the 
following (the figures in dobras to be determined in the socio-economic study): 
Cacao Trees
Estimated Avg. Bean Yield (kg) of Mature tree 
Kg/year 
Estimated Yield used 
kg/tree/year 
Market Price, 
•
Height of harvest season 
•
End of season 
dobras/kg 
dobras/kg 
Price used as basis of this estimate 
80% height of season;20% end of season 
Page  21
21
Years to Production 
 
Years to Maximum Production 
 
Costs of Sapling 
Dobras, locally available. 
Proposed Schedule for Cacao Trees Cut Down 
Type/Age of Tree 
Est. 
Years
In-kind replacement for 
Local Guava and Mangoes 
Credits/Financial 
Support. 
Sapling 
Trees planted after 
project 
cut-off date in area will 
not 
be eligible for 
compensation 
0-1 
Deliver to 
Farmer: 
•
Choice of two cacao trees 
(local and/or improved grafted) 
•
Supplies: fencing to protect 
Tree, a bucket for watering, and a
spade. 
•
Dobra
s
Sapling/Young Tree 
First minor production 
1-6 
Deliver to 
farmer: 
•
Choice of cacao trees 
(local and/or improved grafted) 
•
Supplies: fencing to protect 
Tree, a bucket for watering, and a
Spade 
Equivalent of X no. of 
dobras in credits or 
other 
financial support for 
labor 
invested in planting, 
fencing, and watering, 
made in one payment. 
Mature Cacao Trees 
6-30+
Deliver to 
farmer: 
•
Choice of two cacao trees 
(local and/or improved grafted) 
•
Supplies: fencing to protect 
Tree, a bucket for watering, and a
Spade 
Equivalent of X no. 
dobras 
in credits or other 
financial 
support for labor 
invested 
in planting, fencing, and
watering, made in one 
payment. 
Equivalent of X no. 
dobras 
in credits or other 
financial 
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Total: Equivalent of 
X
no. dobras in cash 
or equivalent 
financial support to 
be paid in one 
installment. 
No compensation will be paid for minor pruning of trees. Compensation for removal of limbs will 
be prorated on the basis of the number of square metres of surface area removed. The total 
surface area of the tree will be calculated using the following formula: 
(½ diameter of canopy 
)
2
x
3.14. 
Other domestic fruit and shade trees 
These trees have recognized local market values, depending upon the species and age. Individual 
compensation for wild trees “owned” by individuals which are located in lands as defined in this 
policy will be paid. Note that wild, productive trees belong to the community when they occur in 
the true bush as opposed to a fallow land. These trees will be compensated for under the umbrella 
of
the village or community compensation. 
No compensation will be paid for minor pruning of trees. Compensation for removal of limbs will 
be prorated on the basis of the number of square metres of surface area removed. The total 
surface area of the tree will be calculated using the following formula: (½ diameter of canopy 
)
2
x
3.14. 
.
INDIVIDUAL COMPENSATION
Sub-Category Unit 
Compensation 
Value 
(X no. of DOBRAS)
foodstuffs & others(e.g. 
cocoa) 
To be determined 
Rubber, wood, timber 
To be determined 
Individual Owned Wild Productive Trees 
Copra 
Non-productive 
Productive 
Cassava 
Non-productive 
Productive 
Coconut 
Non-productive 
Productive 
Fruit Trees 
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23
Non-productive 
Productive 
Avocado 
Bread Tree 
Non-productive 
Productive 
Banana 
Non-productive 
Productive 
Papaya 
Non-productive 
Productive 
H. Organizational procedures for the delivery of entitlements, including, for projects 
involving private sector intermediaries, the responsibilities of the financial intermediary, the 
government, and the private developer 
 
Compensation (and resettlement) will be funded like any other a
ctivity eligible under the projects’ 
administrative and financial management rules and manuals. 
The compensation process which will involve several steps, significantly; 
x
Public Participation 
with the communities would initiate the compensation process as part 
of an ongoing process that would have started at the planning stages when the technical 
designs are being developed and at the land selection/screening stage. Communities would 
be sensitized at the land selection/screening stage on the employment needs of the project 
sponsors and their contractors. 
This process would ensure that no affected 
individual/household is simply “notified” one day that they are affected in this way. 
Instead, this process seeks their involvement and wishes to involve communities in a 
participatory approach with the project, from the beginning. 
x
Notification 
of land resource holders – PASS, having identified the land it requires 
will notify the village inhabitants who will help to identify and locate the property users. 
The user will be informed through both a formal notification in writing and, as some people 
are illiterate, by verbal notification delivered in the presence of the local leader or his 
representative. In addition, elders and individuals who control fishing areas or wild 
trees will accompany the survey teams to identify sensitive areas. 
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24
x
Documentation 
of
Holdings and Assets 
–
village officials and their local administration and 
officials of DoI will arrange meetings with affected individuals and/or homesteads to 
discuss the compensation process. For each individual or homesteads affected, officials of 
the project sponsors completes a compensation dossier containing necessary personal 
information on, the affected party and those that s/he claims as household/homestead 
members, total land holdings, inventory of assets affected, and information for monitoring 
their future situation. This information is confirmed and witnessed by village officials. 
Dossiers will be kept current and will include documentation of lands surrendered. This is 
necessary because it is one way in which an individual can be monitored over time. 
All claims and assets will be documented in writing. 
x
Agreement on Compensation and Preparation of Contracts 
–
All types of compensation 
are to be clearly explained to the individual and homesteads involved. The 
AFAP 
draws up a contract listing all property and land being surrendered, and the types of 
compensation (cash and/or in-kind) selected. A person selecting in-kind compensation 
has an order form which is signed and witnessed. The compensation contract and the 
grievance redress mechanisms are read aloud in the presence of the affected party and the 
village leaders prior to signing. 
x
Compensation Payments – 
All handing over of property such as land and buildings 
and compensation payments will be made in the presence of the affected party, and the 
elders. 
Community Compensation Payments 
Community compensation will be in-kind only for a community as a whole in the form of 
reconstruction of the facility to at least the same standard or equivalent better standard to that being 
built by other Bank funded projects or other donors in the area to serve the same function. 
Examples of community compensation include; 
·
Public Toilets 
·
Well or Pump 
·
Market Place 
·
Road 
·
Storage warehouse 
Community compensation may in itself require land take and people may be affected, thus a 
change of impacts which will be compensated for. 
I. 
A
description of the implementation process 
Before any project activity is implemented, communities will need to be compensated in 
accordance with the resettlement policy framework. For activities involving land 
acquisition or loss, denial or restriction to access, it is further required that these measures include 
provision of compensation and of other assistance required for relocation, prior to displacement, and 
preparation and provision of resettlement sites with adequate facilities, where required. In particular, 
the taking of land and related assets may take place only after compensation has been paid and, 
where applicable, resettlement sites and moving allowances have been provided to displaced 
persons. For project activities requiring relocation or loss of shelter, the policy further 
requires that measures to assist the displaced persons are implemented in accordance with the 
individual resettlement plan of action. The measures to ensure compliance with this policy 
directive would be included in the resettlement plans that would be prepared for each land 
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25
involving resettlement or compensation. 
J. 
A
description of grievance redress mechanisms 
At the time that the individual resettlement plans are approved and individual 
compensation contracts are signed, affected individuals and homesteads would have been informed 
of the process for expressing dissatisfaction and to seek redress. The grievance procedure will be 
simple, administered as far as possible at the local levels to facilitate access, flexible and open to 
various proofs. The project sponsors being a party to the contract would not be the best office to 
receive, handle and rule on disputes. Therefore, taking these concerns into account, all grievances 
concerning non-fulfillment of contracts, levels of compensation, or seizure of assets without 
compensation should be addressed to the village leader/elder for resolution.
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26
If the verdict rendered by the village leader/elder is not acceptable to either the individual affected or 
the project sponsor, then the parties in their compensation contract would have agreed that the 
matter would be appealed to an Independent Advisory Council (IAC), whose decision would 
be final and binding on the parties. The IAC would comprise of one member from the 
representatives of the homesteads, one member selected by PASS and one member from the 
Ministry of Infrastructure. The IAC can coop/seek the services of professionals, such as property 
valuers, engineers etc. The members of the IAC are so composed so 
that each party’s standing is 
represented and the third member from an independent source. The IAC is also deliberately composed 
so that the village leader and the government have no influence in choosing members so that each 
party can have confidence in the IAC. 
All attempts would be made to settle grievances. The IAC will consult with the village elders and 
other records to determine claim’s validity. If valid, an appropriate compensation will be 
paid. 
Also, in the local cultures it takes people time to decide that they are aggrieved and want to complain. 
Therefore, the grievance procedures will give people up to the end of the next full agricultural 
season after surrendering their assets to set forth their case. 
K. A description of the arrangements for funding resettlement and 
compensation, including the preparation and review of costs estimates, the flow of funds, and 
contingency arrangements. 
The estimate of the overall cost of resettlement and compensation would be determined during the 
socio-economic study. 
The Project would have to finance the resettlement compensation because 
they are the party who would be impacting livelihoods. 
At this stage, it is not possible to 
estimate the likely number of people who may be affected since the technical designs/details have not 
yet been developed and land needs have not yet been identified. When these locations are known, and 
after the conclusion of the site specific socio-economic study, information on specific impacts, 
individual and household incomes and numbers of affected people and other demographic data would 
be available, thus facilitating the preparation of a detailed and accurate budget for resettlement and 
compensation. The project sponsors will prepare the resettlement budget and will finance this budget 
through the project’s administrative and financial management rules and manuals like any other 
activity eligible for payment under the project. 
At this stage however, all that can be reasonably and meaningfully prepared is an indicative 
budget, highlighting key features that the budget must contain, inter alia, as follows: 
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No.
Item 
Costs (in 
Dobras) * 
Assumptions 
1
Compensation for loss of Land 
/hectare 
For land acquisition purposes, 
based on cost realized in 
projects involving similar issues 
in STP. 
2
Compensation for loss of Crops 
/hectare of 
farm lost 
Includes costs of labor invested 
and average of highest price of 
staple food crops as per methods 
described in Section G of this 
RPF 
3
Compensation for loss of access to 
pastoralists 
N/A 
Those affected would be 
provided with shared access, or 
alternate routes (decision agreed 
through consultation and 
participation of all) 
4
Compensation for loss of access to 
fishing resources. 
/fishmonger 
Data provided from revised 
socio-economic study will 
determine market values of 
catch, fish products etc. that is 
produced. 
5
Compensation for Buildings and 
Structures 
 
This compensation would be in- 
kind. These new buildings 
would be built and then given to 
those affected. Cost based on 
basic housing needs for a family 
of eight, including house with 
three bedrooms, ventilated pit 
latrines, outside kitchen and 
storage. 
6
Compensation for Trees 
/year/tree 
Based on methods described on 
page 25 of this RPF for 
compensation for trees. 
7
Cost of Relocation 
Assistance/Expenses 
/household 
8
Cost of Restoration of Individual 
Income 
 
This cost is to facilitate 
transportation, etc. 
Assumed to be higher than the 
GDP/capita. 
9
Cost of Restoration of Household 
Income 
 
Through employment in Project 
Activities. 
10 
Cost of Training Farmers, pastoralists 
and other communities 
 
This is a mitigation measure 
which seeks to involve those 
affected by the project activities. 
This figure represents a costs of 
around dobras/person 
*
These costs are to be confirmed during the socio-economic study and revised at the time the payments are made 
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L. 
A
description of mechanisms for consultations with, and participation of, displaced 
(economically or physically) persons in planning, implementation, and monitoring. 
Public consultation and participation are essential because they afford potential communities the 
opportunity to contribute to both the design and implementation of the project activities and reduce the 
likelihood for conflicts between and among communities and the project sponsors. The way 
land administration is undertaken in STP today makes public consultation with the rural 
communities indispensable. Furthermore, as the rural communities are the intended ultimate 
beneficiaries of this project, effective and close consultation with them are a pre-requisite for project 
success. In recognition of this, particular attention would be paid to public consultation with potentially 
affected individuals/households/homesteads when resettlement and compensation concerns are involved. 
Public consultation will take place at the inception of the planning stages when the potential land 
areas are being considered. The participation strategy would evolve around the provision of a full 
opportunity for involvement. Therefore, as a matter of strategy, public consultation would be an on-
going activity taking place through out the entire project cycle. For example, public consultation 
would also occur during the preparation of the (i) the socio-economic study, (ii) the resettlement and 
compensation plan and (iv) the environmental impact assessment and (v) during the drafting and reading 
of the compensation contract. 
Public participation and consultation would take place through meetings, radio programs, request for 
written proposals/comments, filling in of questionnaires/ application forms, public readings and 
explanations of project ideas and requirements, making public documents available at the national, 
local and homestead levels at suitable locations like the official residences/offices. These measures would 
take into account the low literacy levels prevalent in these rural communities by allowing enough time for 
responses and feedback. 
Notwithstanding, the best guarantor for public interest is the local leaders who are responsible 
members of their local communities and can inadvertently be part of the potentially displaced 
(economically or physically) individuals/households either in part or in whole. 
Monitoring of this process would be through the local leader as part of the individual resettlement and 
compensation plans and overall the monitoring and evaluation mechanism of the entire project. 
This requirement is in line with the Bank policy on disclosure. 
M. 
Arrangements for monitoring by the implementation agency and, if required, by 
independent monitors. 
 
The arrangements for monitoring would fit the overall monitoring plan of the entire project which 
would be through the Project Implementation Unit (or AFAP). 
The PIU will institute an administrative reporting system that: 
(a) 
alerts project authorities to the necessity for land acquisition 
(b) 
provides timely information about the valuation and negotiation process, 
(c) 
reports any grievances that require resolution, and 
(d) 
documents timely completion of project resettlement obligations (i.e. payment of the agreed-
upon sums, construction of new structures, etc.) for all permanent and temporary loses, as well 
as unanticipated, additional construction damage. 
The objective will be to make a final evaluation in order to determine; 
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29
(i) 
if affected people have been paid in full and before implementation of the project activities , 
(ii) 
if the people who were affected by the project have been affected in such a way that they 
are now 
living a higher standard than before, living at the same standard as before, or 
they are they are actually poorer than before. 
A
number of indicators would be used in order to determine the status of affected people (land being 
used compared to before, standard of house compared to before, level of participation in project activities 
compared to before, how many kids in school compared to before, health standards, etc). Therefore, the 
resettlement and compensation plans will set three major socio-economic goals by which to evaluate its 
success: 
·
Affected individuals, households, and communities are able to maintain their pre-project 
standard of living, and even improve on it; and 
·
The local communities remain supportive of the project. 
·
The absence or prevalence of conflicts 
In order to access whether these goals are met, the resettlement and compensation plans will indicate 
parameters to be monitored, institute monitoring milestones and provide resources necessary to carry out 
the monitoring activities. 
The following parameters and verifiable indicators will be used to measure the resettlement 
and compensation plans performance; 
·
Questionnaire data will be entered into a database for comparative analysis at all levels of 
Governments, 
·
Each individual will have a compensation signed dossier recording his or her initial 
situation, all subsequent project use of assets/improvements, and compensation agreed 
upon and received. 
·
The PIU will maintain a complete database on every individual impacted by the project land use 
requirements including relocation/resettlement and compensation, land impacts or damages 
·
Percentage of individuals selecting cash or a combination of cash and in-kind compensation, 
·
Proposed use of payments 
·
The number of contention cases out of the total cases 
·
The number of grievances and time and quality of resolution 
·
Ability of individuals and families to re-establish their pre-displacement activities, land and 
crops or other alternative incomes 
·
Pastoral and Agricultural productivity of new lands 
·
Number of impacted locals employed by the civil works contractors 
·
Seasonal or inter annual fluctuation on key foodstuffs 
·
General relations between the project and the local communities 
The following indicators will be used to monitor and evaluate the implementation of resettlement and 
compensation plans; 
VERIFIABLE INDICATORS 
Monitoring Evaluation 
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Outstanding compensation or resettlement 
contracts not completed before next 
agricultural season. 
Outstanding individual compensation or 
resettlement contracts. 
Communities unable to set village-level 
Outstanding village compensation 
compensation after two years. 
contracts. 
Grievances recognized as legitimate out of 
all complaints lodged. 
All legitimate grievances rectified 
Pre- project production and income (year 
Affected individuals and/or households 
before land used) versus present production 
compensated or resettled in first year who 
and income of resettlers, off-farm-income 
trainees, and users of improved agricultural 
have maintained their previous standard of 
tech 
techniques. 
living at final evaluation.  
Pre- project production versus present 
production (crop for crop, land for land). 
Equal or improved production per affected 
household/homestead. 
Pre-project income of vulnerable 
Higher post- project income of vulnerable 
individuals identified versus present 
income of vulnerable groups 
individuals. 
Financial records will be maintained by the PIU, to permit calculation of the final cost of resettlement 
and compensation per individual or household. Each individual receiving compensation will have a 
dossier containing; 
·
Individual biological information, 
·
Number of people s/he claims as household/homestead dependents 
·
Amount of land available to the individual or household when the dossier is opened. 
Additional information will be acquired for individuals eligible for resettlement and/or compensation: 
·
Level of income and of production 
·
Inventory of material assets and improvements in land, and 
·
Debts 
Each time land is used /acquired by the project; the dossier will be updated to determine if the 
individual or household/homestead is being affected to the point of economic non-viability and eligibility 
for compensation/resettlement or its alternatives. These dossiers will provide the foundation for 
monitoring and evaluation, as well as documentation of compensation agreed to, received, and signed 
for. 
It is normal that some compensation procedures and rates may require revision at some time during 
the project cycle. The PIU will implement changes through the Change Management Process in the 
Monitoring and Evaluation manuals of the project (PIM or Project Implementation Manual), which will 
require feed back from: 
·
Indicators monitored by the local provincial governments to determine whether goals are being 
met, and 
·
a
grievance procedure for the local community to express dissatisfaction about implementation 
of compensation and resettlement.
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