The likely social and environmental impacts of the project and their possible mitigation measures need to be assessed early on in the project planning phase. Many countries have special laws on environment, which stipulate the requirements for environmental impact studies. These requirements need to be carefully assessed.
Large tracts of land may be required for many infrastructure projects. In such cases, resettlement and rehabilitation of the affected people and compensation for the acquired land/property may become major issues in project development and implementation. The problem may become of a serious nature in the absence of fair policies, and necessary legal measures to deal with such complex social issues. These issues also have deep financial as well as political implications. Some governments have formulated clear policies on these matters. The social, legal, administrative and financial implications of these issues need to be carefully considered during the project planning stage.