Land Acquisition, Resettlement, Rehabilitation and Indigenous Peoples’ Policy, 3rd edition (2007) e. The full costs of resettlement and compensation should be included in the presentation of project costs and benefits f. Some costs of resettlement may be considered for inclusion in the Bank loan financing the project. Costs that are covered include all costs associated with land improvement, construction of new housing and community infrastructure, and income generating measures. Other costs including land acquisition would need review and clearance of a special committee in the World Bank Headquarters in Washington. Thus, it must be covered by a specific proposal with all the required information. 3. Basic Principles of World Bank’s Indigenous Peoples’ Policy (O.P 4.10) a. The World Bank recognizes that Indigenous peoples play a vital role in sustainable development, and it aims to ensure that the development process fully respects the dignity, human rights, economies, and cultures of Indigenous Peoples. b. The World Bank recognizes that the identities and cultures of Indigenous Peoples are inextricably linked to the lands on which they live and the natural resources on which they depend. These distinct circumstances expose Indigenous Peoples to different types of risks and impacts from development projects. c. Involuntary resettlement of indigenous peoples is to be avoided whenever feasible. d. The project proponent or borrower undertakes a social assessment whenever screening shows that Indigenous Peoples are present in, or have collective attachment to, the project area. The social assessment is necessary to evaluate the project’s potential positive and adverse effects on indigenous peoples. e. When a project is found to definitely affect Indigenous Peoples, the project proponent engages in a free, prior, and informed consultation with them. f. On the basis of the social assessment and the free, prior, and informed consultation, the proponent ascertains if the affected Indigenous Peoples’ communities provide their broad support to the project. Environmental and Social Services OfficeDepartment of Public Works and Highways February 2007 9