Catalog

	Table of Contents
p. 25 of 79 BACK | NEXT Foreword Abbreviations Glossary 1. Introduction 2. The Resettlement Plan in the Project Cycle 3. Resettlement: Key Planning Concepts 3.1 Avoiding or Minimizing Resettlement 3.2 Policy Framework 3.3 Developing a Resettlement Policy 3.4 Defining Entitlement and Eligibility 3.5 Resettlement Planning for Vulnerable Groups 3.6 The Entitlement Matrix 3.7 Resettlement Budget and Financing 3.8 Land Acquisition and Resettlement Time Line 3.9 Checklist: Key Planning Concepts 4. Consultation and Participation 5. Socioeconomic Information 6. Relocation 7. Income Restoration 8. Institutional Framework 9. Monitoring and Evaluation Selected Reading List Appendix 1: The Bank's Policy on Involuntary Resettlement Appendix 2: Sample Terms of Reference for Full Resettlement Plan Appendix 3: Resettlement Policies in Selected DMCs Appendix 4: Resettlement Monitoring: Sample Formats for Monthly Progress Reports

Handbook on Resettlement: A Guide to Good Practice : 3. Resettlement: Key Planning Concepts

---

3.7. Resettlement Budget and Financing

An itemized budget is required for all resettlement activities, including compensation for land acquisition. An annual resettlement budget is usually prepared, showing the budget scheduled expenditure for key items. The land acquisition and resettlement cost is included in the project costs. The borrower may request for at least part of the costs other than land acquisition costs to be included in Bank loan financing for the project.

Income restoration and resettlement costs will usually come from central and/or state or provincial government through the project entity. There may also be local government contributions to development of income restoration schemes and resettlement sites and services. The RP specifies the mechanisms for channeling funds to key resettlement units or agencies, for disbursement to APs. The timeframe and responsibilities for disbursal are specified.

If a project is co-financed with other donors, it is important to know the resettlement policies of co-financiers. Any discrepancies should be addressed and resolved prior to loan approval. The types of costs which are likely to be required in a resettlement plan are set out below.

Budgetary approval by the government is essential for resettlement implementation. Unless policies are approved and financing arrangements are made, the RP lacks ownership by the government.

Preparing Resettlement Cost Estimates and Budget

Source: Cernea, Michael, 1988. Involuntary Resettlement in Development Projects, The World Bank, Washington, D.C.

Back 3.6 The Entitlement Matrix	Next 3.8 Land Acquisition and Resettlement Time Line