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PERFORMANCE STANDARD 5
REQUIREMENTS

1 General Requirements

2 Resettlement Planning and Implementation

3 Physical Displacement

4 Economic Displacement

5 Private Sector Responsibilities under Government-Managed Resettlement

Performance Standard 5.

LAND ACQUISITION

Project Design

Consider feasible alternative designs to minimise physical or economic displacement, while balancing environmental, social, and financial costs and benefits.

Compensation and Benefits for Displaced Persons

Offer displaced persons and communities compensation for loss of assets at full replacement cost and other assistance6 to help them improve or

Restore their standards of living or livelihoods. Compenstion should be transparent.

Offer landbased compensation, where feasible.

Provide opportunities to displaced persons and communities to derive appropriate development benefits from company.

Private sector company acquiring the land or by an agent of the company can carry out negotiations. If government, acquired, they or agent carries out negotiations.

Consultation

Consult with and facilitate the informed participation of affected persons and communities, including host communities.

Continue during the implementation, monitoring, and evaluation of compensation payment and resettlement.

Grievance Mechanism

Establish a grievance mechanism and address specific concerns about compensation and relocation, including a recourse mechanism designed to resolve disputes in an impartial manner.

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