Resettlement Action Plan (RAP)

A Resettlement Action Plan (RAP) is a formal document that a borrowing government prepares, with development-bank approval, when a financed project will physically displace people from their land, homes, or livelihoods. It describes who will be affected, what they will lose, how they will be compensated, and how their living standards will be restored or improved.

What is a RAP?

Development banks apply involuntary resettlement policies that prohibit pauperisation of displaced populations. When a project - a road, dam, power line, urban renewal scheme - requires acquiring land or causing economic displacement, the borrowing government must prepare a RAP that meets the bank's policy standards before the bank will approve the project or allow construction procurement to proceed. The RAP documents the census of affected households, a valuation of assets lost, the entitlement framework (cash compensation, replacement land, livelihood restoration assistance), a grievance mechanism, a budget, an implementation schedule, and a monitoring framework.

The RAP is a sister document to the esia and is implemented alongside the esmp. On large infrastructure projects, the RAP must be substantially implemented - meaning most affected households have been compensated and relocated - before civil works on the affected sections can begin. The bidding-document for construction work will reference RAP obligations and may include clauses in the gcc or scc that restrict the contractor from entering certain areas until RAP clearance is granted.

Why RAPs matter for bidders

A RAP that is behind schedule poses a direct programme risk for construction contractors. If the procuring entity has not completed resettlement on a section of works before the contractor is expected to begin, the contractor cannot access the site and will incur standing costs. Bidders on large infrastructure contracts should check the status of the RAP - disclosed on the financing bank's project portal - and assess whether resettlement timelines are realistic before pricing their construction programme. Delay caused by incomplete resettlement that is the procuring entity's responsibility is typically treated as an excusable delay under the fidic-red-book and similar standard contract forms, entitling the contractor to a time extension but not necessarily additional cost.

FAQ

What development bank policy governs RAPs?

The World Bank's Environmental and Social Standard 5 (ESS5) on Land Acquisition, Restrictions on Land Use and Involuntary Resettlement is the primary policy framework. ADB, AfDB, and other MDBs have equivalent safeguard policies, and while the details differ, the core principle - restore or improve living standards of displaced people - is consistent across lenders.

Can construction begin before the RAP is fully implemented?

On portions of the works that do not affect displaced households, construction may proceed. On sections where households have not been fully compensated and relocated, the bank will generally not allow construction to begin. Partial RAP implementation clearances are issued section by section on large linear infrastructure projects.

Is the RAP publicly available?

Yes. Development banks require public disclosure of the RAP before project appraisal is complete. The document is posted on the bank's project portal and is typically available in both English and the local language.