Depending on context, the displacement schedule may indicate that potential future resettlement projects may be required at different times and locations over the site’s lifecycle. To promote consistent good resettlement practices, and thereby reduce business risk, all elements of resettlement planning and implementation, particularly entitlements and compensation principles must be applied consistently across the site over time. This is achieved through the development of a displacement framework which, amongst other things, sets out guidelines for entitlements and compensation.
Every site where displacement is likely to occur is required to develop a displacement framework, even if the land access and displacement strategy (see 4F.2 Guidance, Task 1) identifies only one likely resettlement project, as this is required in preparation for the development of the appropriate (, or ). If not already in place, the displacement framework should be developed as part of the Phase 1 – Scoping and framing study for the potential resettlement.
The displacement framework must be developed by a resettlement expert; if an external expert is engaged, operations teams must play an active and guiding role during the process, provide information as required by the consultant and facilitate internal approvals of the framework.
In developing this framework, consideration of any previous resettlement and compensation practices by the site is required to understand the context in which future practices and compensation will occur:
- If past practices were sub-standard, future practices may elicit grievances from historically displaced households. The displacement framework should highlight this potential risk and consider the approach to deal with these grievances.
- If past practices exceeded 5 requirements, a benchmark has been set for the site’s affected community – who may expect the same. The displacement framework must acknowledge this benchmark. To the extent possible, future practices and compensation must be aligned to this benchmark.
An important component of the framework is a review of mining, land, compensation, housing and other relevant national legislation to determine the minimum requirements as per the host country. A gap analysis must be conducted between these requirements and that of the 5, to determine a clear approach to bridge this gap. The legal review should also consider land access alternatives if negotiated settlement cannot be reached.
An equally important component is the entitlement matrix and compensation strategy, including the approach to valuation of assets and determination of rates according to which various assets will be compensated, while recognising that actual compensation rates will only be determined during the development of the (4F.2 Guidance, Task 7).
Aligned with the IFC PS5 requirement, compensation for loss of assets as a result of physical or economic displacement must be provided at replacement cost, and the compensation package must include other assistance, such as various types of allowances and transitional assistance.
Adequate consideration of vulnerability and gender aspects during the resettlement process is required to avoid disproportionate and/or unforeseen impacts on vulnerable or marginalised groups. Measures to allow meaningful participation by these groups must be embedded in the displacement framework.
Table 4F. 5 (see 4F.4 Tools and guidance notes) provides the scope and contents of a Displacement Framework, accompanied by guidance notes on each aspect. Once completed, the displacement framework must be approved by Group . The displacement framework should be reviewed upon completion of resettlement implementation (at the time the project team hands over to the operations team) or when there are changes in local legislation or international good practice standards.