Experience has shown that moneycompensation payments to individual citizens are ineffectivewhen used alone as a means to achieve the Bank's aimsand World Bank for evidence on the Bank's experience].Instead, the Bank's advice is that compensationpayments should be a part of a wider, coordinated package ofdevelopment assistance. It is not the purpose of this Noteto describe how such a package should be developed, orindeed how the package as a whole should be evaluated.Rather, the question addressed in this Note is the narrowerone: How should money compensation payments be evaluated?Section 2 begins by asking what costs the payments areintended to compensate for, and on what basis the value ofcompensation should be estimated. Section 3 continues toconsider how institutional arrangements affect the waycompensation payments are designed and channeled inpractice. Section 4 turns to the benefits of resettlementcompensation and Section 5 brings these strands together toconsider how compensation payments should be evaluatedwithin the economic evaluation of World Bank transport projects.
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