Adaptive Resettlement for Urban Water Security: Lessons from Dhaka

The project required 310 acres of land (194 acres of which were privately owned), with 2,870 families directly affected through the loss of homes, farmland, small and medium businesses, and common property resources, such as graveyards. Legal and administrative hurdles, such as disputes and incomplete land records, delayed compensation and created uncertainty for affected individuals. Cultural sensitivity was paramount, especially in the relocation of a graveyard, which raised profound concerns where community’s sentiments and attachments were valued more than monetary compensation. At one point, this led to a breakdown of trust between the community and the implementing agency. Many households faced livelihood risks because losing major income sources required more than financial assistance—they needed training, diversification, and additional support to rebuild social capital. Vulnerability and inclusion were also critical considerations, since non-titled residents, women, and marginalized groups risked exclusion without deliberate measures to ensure their participation. Given the scale and complexity of urban resettlement, the need for a robust database management and monitoring system to track outcomes effectively was vital.

Building trust through collaboration

The project placed affected persons (APs) at the center of resettlement planning and ensured that decisions reflected local priorities and concerns. Tripartite committees, comprising project teams, community representatives, and local government officials, oversaw fair valuation, compensation, and grievance redress, fostering ownership and trust.

Sensitive issues, such as graveyard relocation, were resolved through inclusive dialogue among religious leaders, affected families, elected representatives and officials. This ensured cultural acceptance through careful transfer of graves, prayers by religious leaders, and the provision of supporting infrastructure, such as pavements, greenery, electricity, and water, as well as facilities for ritual ablutions. Affected households facing physical displacement were relocated only after receiving compensation and once their houses were ready for occupancy, ensuring no temporary displacement.

A multi-tier grievance redress mechanism and a strong NGO field presence facilitated community participation and timely identification and resolution of issues, while proactive disclosure maintained transparency and community confidence throughout implementation.

Escrow account to safeguard compensation

During implementation, unresolved compensation prevented contractors from accessing sites and alignments, leading to delay damage claims. To address these delays, the project introduced an interest-bearing escrow account, the first among multilateral development bank–financed initiatives in Bangladesh. The protocols for opening and disclosing escrow account were developed in coordination with ADB’s legal experts and safeguards team and agreed with Dhaka Water and Sanitation Agency (DWASA). The account safeguarded compensation for affected persons with unresolved legal or documentation issues, protecting entitlements until payments could be released and sharing interest earned proportionally among eligible households. This arrangement also allowed the project’s civil works to continue while securing unpaid compensation amounts.

The Property Valuation Advisory Committee approved top-up payments beyond the government’s standard cash compensation to meet replacement cost requirements, consistent with ADB’s safeguard principles and international good practice. Developed in close coordination with ADB and its financing partners, these mechanisms reflected strong financial governance and a commitment to equitable outcomes.

Institutional capacity and coordination

The project strengthened DWASA’s institutional capacity by embedding social, resettlement, and gender expertise within implementation teams and translating safeguard commitments into inclusive, on-the-ground outcomes. Key institutional features included deploying professional safeguards and gender officers, building capacity continuously for both the implementing agency and affected communities, engaging an NGO, and establishing joint verification and resettlement advisory committees to promote local participation.

The NGO Development Organization for Rural Poor (DORP), operating from field offices near affected communities, played a pivotal role in processing compensation, verifying eligibility, and ensuring vulnerable and women-headed households access payments effectively. When the external monitoring agency appointed in the initial years proved ineffective, ADB appointed an independent monitor to conduct regular and independent reviews of resettlement outcomes.

ADB and DWASA held fortnightly reviews of land acquisition and resettlement implementation during the critical phase to coordinate among institutional stakeholders, address field-level issues, identify course corrections, and agree on actions that ensured compliance with ADB and government policies.  

Livelihood restoration

Livelihood and income restoration programs emphasized skills development^[2] (including tailoring, poultry, vegetable gardening, and small businesses), along with seed capital and access to microfinance. These interventions were based on an assessment of market-supported and sustained livelihoods in the urban context.  Training delivered in the local language and designed to be accessible to women and non-titled residents helped households to rebuild and diversify income sources. DWASA, the independent monitor, and the NGO worked closely to identify and address hurdles to livelihood restoration for elderly women and other vulnerable affected persons. They introduced adaptive measures such as doorstep training tailored to specific needs. The project team regularly tracked each vulnerable affected person to support continuous livelihood improvement.

Integration of gender-responsive measures in resettlement

The project team maintained a specific focus on gender issues in resettlement throughout the project cycle. Women and marginalized groups actively participated in decisions on housing, water access, and livelihood, supported by continuous awareness campaigns. The gender action plan identified targeted activities to promote inclusion and participation of women from affected households. Gender-responsive clauses in tender documents ensured women’s participation in civil works, while targeted allowances supported female-headed households. Sex-disaggregated data tracked women’s participation and outcomes in both gender action plan progress monitoring and resettlement monitoring.

Database management and adaptive learning

A web-based resettlement database tracked entitlements, payments, and grievances in real time, with built-in verification and daily backups. This digital system enhanced transparency, minimized bureaucracy, and enabled data-driven monitoring and adaptations.

Regular reviews and feedback drove mid-course corrections throughout implementation. Lessons learned strengthened grievance redress mechanism, improved institutional coordination, ensured timely information dissemination, and established a model for fair, transparent, and community-responsive resettlement management.
 

Left: Relocated graveyard and front gate. Right: Graveyard land development.

Left: Raw water pipeline works. Right: Community consultation at Shombhupura Mouza.

Affected person with improved livelihood through cattle rearing and enhanced living conditions in a rebuilt pucca house.

Affected person with improved livelihood (cattle rearing).

Livelihood and Income Restoration Program (LIRP) training.

Effective management of resettlement and grievances

Escrow accounts, tripartite committees to facilitate decision-making and verification, and structured grievance systems ensured timely, transparent compensation, and minimized disputes or delays throughout the process. In total, 2,429 titled landowners and 441 non-titleholders received top-up payments and resettlement assistance, reflecting the project's commitment to fairness. Clear protocols for both titled and non-titled residents further strengthened equity and reduced conflict risks. Community-led processes relocated cultural sites, such as graveyards, with proper rituals and continuity measures, preserving trust and social cohesion.

Enhanced urban living standards and infrastructure access

Affected households were able to access improved housing, potable water, sanitation, and essential services, significantly enhancing their quality of life. Citywide upgrades, including new water treatment and distribution systems, strengthened Dhaka’s long-term water security.

A total of 574 affected persons, including vulnerable households, completed skills training under the Livelihood and Income Restoration Program, enabling them to diversify their income sources and build resilience. Both non-titled and vulnerable residents received equitable benefits alongside titled owners, ensuring fairness and inclusivity.

Gender-responsive outcomes

As of June 2025, women represented 47% of consultation participants and accounted for 39% of trained project-affected persons, reflecting strong engagement in project activities. About 94% of trained women continued income-generating activities after completing their training, demonstrating sustainable livelihood recovery. Gender-sensitive employment practices, targeted allowances, and the use of sex-disaggregated monitoring data further reinforced accountability and promoted women’s economic empowerment throughout the project.

Institutional strengthening and policy learning

The project’s institutional arrangement strengthened coordination among government agencies, NGOs, and community committees, fostering effective collaboration throughout implementation. Digital resettlement databases promoted accountability, transparency, and efficient delivery of compensation and assistance to affected persons. Furthermore, lessons learned in Dhaka have informed subsequent ADB-financed urban infrastructure projects, shaping regional policy benchmarks aligned with the ADB Safeguard Policy Statement (2009) and the Sustainable Development Goals—particularly SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 6 (Clean Water and Sanitation), and SDG 11 (Sustainable Cities and Communities).

Strengthened trust and social capital

Culturally sensitive resettlement approaches, combined with consistent community engagement, strengthened trust and reinforced confidence in the implementing agency. Independent monitoring confirmed high levels of community satisfaction and strong ownership of project outcomes. As a result, affected persons successfully sustained diverse livelihoods, demonstrating tangible recovery and resilience.

Adaptive management drives resettlement success. Integrating monitoring, feedback, and corrective actions (supported by multi-layer internal and independent, external monitoring systems) keeps projects fair, efficient, and responsive to community needs.

Escrow accounts safeguard compensation. Coupled with transparent information disclosure, escrow accounts protect unpaid compensations and facilitate implementation, strengthening institutional credibility.

Tailored livelihood support delivers transformative outcomes. Customized, regularly reviewed livelihood plans (especially for vulnerable households) combined with consistent monitoring and follow-up, promote sustainable recovery and empowerment.

Accessibility of implementing agencies builds confidence. NGO presence in local offices accessible to affected communities ensured rapport, quick grievance resolution, and inclusion of non-titled and marginalized residents, alongside documentation support for compensation access.

Cultural sensitivity sustains social cohesion. Consensus-building on sensitive issues, such as graveyard relocation, preserved dignity, spiritual continuity, and community harmony.

Robust data systems institutionalize learning. Centralized, dynamic databases, supported by valuation systems and independent external monitoring, underpin transparency, enable course correction, and serve as replicable models for future resettlement monitoring. 

The information presented in this article was prepared with the valuable contributions of ADB consultants Kali Sankar Ghosh and Rupa Banerjee Pravin; Dr. Rafeza Akter and Ruksana Jahan, members of the Management, Design, and Supervision Consultants’ team; and the Resettlement NGO, Development Organization for Rural Poor (DORP).

The authors gratefully acknowledge the continued support of the Project Management Unit (PMU) team, including all Project Directors—Md. Mahmudul Islam and Bahrul Islam, who led the PMU during implementation, and Md. Azizul Haque and Md. Wahidul Islam Murad, who guided it through project closure—as well as Mr. Tofazzal Hossen, Safeguards Officer (Social and Gender). The authors also extend sincere appreciation to ADB Project Officers Akira Matsunaga, Momoko Nitta Tada, Pushkar Srivastava, Alan Baird, and Amit Datta Roy for their guidance and oversight.

Special thanks are due to Nargis Halimova, Safeguards Specialist (Social), ADB, for her thoughtful peer review and valuable insights.

^[1] The DESWSP loan became effective in February 2015 and was closed in October 2025. Financed by ADB, EIB, and AFD, the project integrates large-scale water supply infrastructure with robust social safeguard measures.

^[2] Voices from the Community: 1) SA, a participant in livelihood training, shared that she continues to learn new methods and technologies for goat rearing by watching instructional videos online. This income-generating activity has improved her financial status and given her a new sense of identity. She is proud to be self-reliant and feels renewed hope to dream of a brighter future. 2) Another vulnerable community member, NIM, shared that he was able to purchase a larger and more productive land parcel with the compensation he received. He expressed gratitude and surprise that the compensation amount exceeded the cash compensation provided under law. Source: External Monitoring Report, July 2025.

Asian Development Bank (ADB). 1998. Handbook on Resettlement A Guide to Good Practice.

World Bank. 2024. Involuntary Resettlement Sourcebook: Planning and Implementation in Development Projects. Vol. 1 of 2. Washington, DC.