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Environmental and Social Management FrameworkChapter 77 Resettlement Policy Framework (RPF)7.1 IntroductionThe Government of Nepal (GoN) currently prepares the second ten year SectorWide Road Program and Priority Investment Plan (SWRP & PIP) for theDepartment of Roads (DoR) as part of the World Bank funded Road Maintenanceand Development Project (RMDP). This study/program includes both theStrategic Road Network (SRN) as well as Rural Accessibility Issues. The scopeof the study includes the new construction and upgrading of strategic roadnetworks, district roads as well as the feeder roads of about 815 km of roads inmid and far west of the country. The list of candidate roads has been agreed withDoR to include in the study for which the Resettlement Policy Framework (RPF)has been developed. The RPF is developed to deal with land acquisition as wellas resettlement component of project-affected persons (PAPs).This Resettlement Policy Framework establishes the resettlement andcompensation principles, organizational arrangements and design criteria to beapplied to meet the needs of the people who may be affected by the projectactivities resulting due to land acquisition loss of shelter, assets or livelihoods,and/or loss of access to economic resources. The RPF is prepared to thestandards of the GoN as specified in relevant legislation and the policy of theWorld Bank, Operational Policies (OP) 4.12. The RPF will be applicable to allsub-projects under the study project as well as in other projects planned in theroad sector where land acquisition and/or resettlement is required as part of theproject implementation. All resettlement actions will be approached uniformly inall sub-projects.The objective of the RPF is to implement the proposed Project smoothly tocontrol or minimize any adverse effect on the people affected by the project TheRPF makes comprehensive reference to the policies and guidelines discussed inChapter 3 of this ESMF (Legal Framework Analysis) document to guide theprocess of land acquisition and resettlement on subproject roads, and vulnerablecommunity development initiatives within the zone of impact of the proposed subprojectroads. Specific terms relating to this chapter are summarized in ANNEX 3.The surveys for the SRN Program indicate that none of the per sub-projectsdealing with road rehabilitation will exceed more than 20 households to becomefully affected and be subject for complete resettlement. As per GoNrequirements, only for one (Nagma-Gamgadhi new road) a Resettlement ActionPlan will be required. The survey is yet to be completed, and it will probably resultin more than 20 HHs affected. In any case, Resettlement Action Plans (RAP) willbe required for all future rural road development projects where majorresettlement actions are unavoidable. This is even more the case when newproposals for land acquisition policies will materialize that aim at the acquisition ofa 30 m RoW corridor (see discussion Ch. 3.9.4 in this ESMF document). Withsuch policy, the number of even small rural upgrading projects will raise thenumber of PAFs considerably and will require substantial planning forresettlement.April 2007 Chapter 7-1
Environmental and Social Management Framework7.2 Comparison of the GoN’s and Donor Agencies Policies on InvoluntaryResettlement and Land Acquisition:Upon request of the Client, this ESMF shall carry out a comparative analysis ofthe national and donor agencies policies on involuntary resettlement/landacquisition, and presents recommendations to bridge identified gaps.7.2.1 Common PrinciplesGenerally, both the donors’ and the policy of GoN support the following basicprinciples:• Involuntary resettlement shall be avoided or minimized to the extent possible,through the incorporation of social consideration into design options andalignment selections.• Where displacement is unavoidable, i.e. people losing assets, livelihood andother resources shall be assisted in improving or at a minimum regaining theirformer status of living at no cost to themselves.There are some areas, however, where additional measures or furtherspecifications for the entitlements under national guidelines and laws arenecessary to meet the standards of the World bank (OP 4.12), ADB (Handbookon resettlement: A Guide to Good Practice) and other agencies. These additionalmeasures are essential for ensuring that the principles mentioned above will beachieved. In addition, a well thought out, specific entitlement framework wouldprotect the project from major delays caused by confusion.7.2.2 Identification of Gaps and Limitations in the National PoliciesThe main gaps and limitations of the national legal and policy framework are:• National law makes provision for compensation to the titled landholder onlyand, by default, omits all other PAP, including non-registered tenant farmers,landless farmers, squatters, agricultural labourers, shopkeepers, artisangroups and Dalits. There are also no provisions to protect the interests ofvulnerable groups.• National law does not make any provision for encroachers or squattersregarding to the entitlement for compensation. The reason to them is to assistpoor people whose assets and livelihoods may be lost or disrupted by theproject.• Accordingly, there is no provision for rehabilitation assistance for suchvulnerable groups.• When GoN requires assets, national law does not specify about the provisionof mandatory replacement cost.• The Land Acquisition Act, 1977 does not emphasize transparency andstakeholder participation for various decisions that directly affect the longtermwellbeing of PAPs. Also, the CDC does not require participation of eitherthe representatives of PAPs or representatives from the localVDC/municipalities.• There are no clear directives to look at project design options that avoid orminimize involuntary resettlement.• Only cash compensation is considered for payment. It is the easiest mode ofoperation but its long- term impact on families who are not used to large cashflow can be more negative than otherwise.• There is a provision in the Land Acquisition Act, 2034 for land-for-landcompensation such that if a titleholder loses all his/her land and opts for landas compensation, the government may provide land if there is ailani(unclaimed land) or other government land available. Past experience,however, indicates that the relevant clauses are too general and do not obligeChapter 7-2 April 2007
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