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regimes and Indigenous land use agreements include benefit-sharing mechanisms,
with some agreements offering significant benefits packages and annual payments. 62
64. Contingency funding. When mobilizing funds for resettlement planning, it is
vital to allocate contingency funding, especially for higher-risk projects. Safeguards
and loan agreements should require clients to establish contingency funds or insurance
to address potential human rights impacts. Rights violations can profoundly affect
both project viability and affected individuals, necessitating funds for infrastructure
and resettlement needs. However, current development finance institution safeguards
lack such a requirement. 63
65. In 2008, 10 Ghanaian communities entered into agreements with Newmont
Ghana Gold Limited for local job creation, development and decision-making; a decade
later, research highlighted persistent challenges, including inadequate compensation
for resettlement and adverse impacts on communities beyond the mining area. 64 This
emphasizes the importance of comprehensive agreements, legal support, effective
grievance mechanisms and project contingency funding for unforeseen challenges.
Development finance institutions should also consider potential State financial
liquidity crises, which can undermine the implementation of resettlement action plans
and impair human rights-based resettlement, in particular for infrastructure projects
with large-scale social impacts.
IV. Resettlement implementation
66. State agencies’ role. State agencies are central to the successful implementation
of resettlement projects. They are primarily responsible for overseeing project
execution and ensuring adherence to international human rights standards. Beyond
creating policy and regulatory frameworks, State agencies should manage land
allocation, service provision and infrastructure development at resettlement sites.
Their duties also include enforcing laws, protecting human rights, resolving conflicts
and providing or overseeing redress mechanisms. For instance, they should mandate
the presence of government officials or representatives during evictions and take
measures to prevent gender-based violence or discrimination against women during
relocation. However, in practice, State responsibilities are often delegated to private
sector actors, with State involvement during implementation frequently lacking.
67. Adapting to challenges. Even with meticulous planning, resettlement efforts
may face unforeseen challenges or contextual shifts requiring adjustments.
Implementing agencies must preserve bureaucratic and organizational capabilities
and adhere to established procedures for overseeing and monitoring relocation
processes. This means remaining consistent with the plans and commitments made to
communities. In addition, training and support should be provided to new project
administrators who may lack local knowledge or relationships with the community.
68. Role of development finance institutions. In projects supported by
development finance institutions, the institutions play a crucial role in overseeing
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63
64
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See www.wa.gov.au/organisation/department -of-the-premier-and-cabinet/south-west-native-titlesettlement.
IFC has recently advocated for the establishment of a contingency budget, typically 10 to 20 per
cent of the total resettlement cost, to address unexpected issues and ensure successful
resettlement. See IFC, Good Practice Handbook: Land Acquisition and Involuntary Resettlement ,
2023; available at www.ifc.org/content/dam/ifc/doc/2023/ifc-handbook-for-land-acquisition-andinvoluntary-resettlement.pdf.
Benjamin Boakye, Maggie Cascadden and others, “Implementing the Ahafo benefit agreements:
seeking meaningful community participation at Newmont’s Ahafo gold mine In Ghana”, Social
Sciences Research Network, 2020.
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