Private PRINCIPLE 5: LAND ACQUISITION AND INVOLUNTARY

IIF- SEMS - Annexes 42 and standards of living to economically displaced persons whose livelihoods or income levels are adversely affected as follow:  For affected persons whose livelihoods are land-based, as priority, replacement land that has a combination of productive potential, locational advantages and other factors at least equivalent to that being lost.  For affected persons whose livelihoods are natural resource-based and where project related restrictions to land or use of other resources apply, the client will implement measures to either allow continued access to affected resources or provide access to alternative resources with equivalent livelihood-earning potential and accessibility. Benefits and compensation associated with natural resource usage may be collective in nature rather than directly oriented towards individuals or households.  If due to some circumstances, the client is not able to provide land or similar resources as described above, the client will provide alternative income earning opportunities e.g. credit facilities, training, cash or employment opportunities.  Provide transitional support to economically displaced persons, as necessary, based on a reasonable estimate of the time required to restore their income-earning capacity, production levels, and standards of living. 112. Where communities of Indigenous Peoples are economically displaced but not relocated as a result of project-related land acquisition, the client will meet the applicable requirements of this Principle, as well as those of Principle 7.

3.5.3. Private

Sector Responsibilities under Government-Managed Resettlement 113. Where land acquisition and resettlement are the responsibility of the host government, the client will collaborate with the responsible government agency, to the extent permitted by the agency, to achieve outcomes that are consistent with the objectives of this Principle. In addition, where government capacity is limited, the client will play an active role during resettlement planning, implementation and monitoring, as described in the ensuing paragraphs. 114. In the case of Type I transactions acquisition of land rights through expropriation or other legal procedures involving physical or economic displacement, and Type II transactions negotiated settlements involving physical displacement, the client will identify and describe government resettlement measures. If these measures do not meet the requirements of this principle, the client will prepare a Supplementary Resettlement Plan or a framework that, together with the documents prepared by the responsible government agency, will address the relevant requirements of this Principle the General Requirements and requirements for Physical Displacement and Economic Displacement above. The client may need to include in its Supplementary Resettlement Plan: i Identification of the affected persons and impacts; ii Description of regulated activities, including the entitlements of displaced persons provided under applicable laws and regulations; iii Supplemental measures proposed to bridge any gaps between such entitlements and the requirements of this Principle; and iv The financial and implementation responsibilities of the government agency andor the client. in the implementation of this Supplementary Resettlement Plan. IIF- SEMS - Annexes 43 115. In the case of Type II transactions negotiated settlements involving economic but not physical displacement, the client will identify and describe the procedures that the responsible government agency plans to use to compensate affected persons and communities. If these procedures do not meet the relevant requirements of this Principle, the client will develop its own procedures to supplement government action. 116. If permitted by the responsible government agency, the client will, in collaboration with such agency: i implement its plan or procedures established in accordance with paragraphs above; and ii monitor resettlement activity that is undertaken by the government agency until such activity has been completed.

3.5.4. Land Acquisition Procedures in the Indonesian Context