G0204-MON: Southeast Gobi Urban and Border Town Development Project

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1 Resettlement Monitoring Report Annual Report October 2014 G0204-MON: Southeast Gobi Urban and Border Town Development Project Prepared by the Ministry of Construction and Urban Development of Mongolia for the Government of Mongolia and the Asian Development Bank.

2 ABBREVIATIONS ADB Asian Development Bank AP Affected person/people GDP Gross domestic product LAR Land acquisition and resettlement LARP Land acquisition and resettlement plan ROW Right of way (i) NOTE{S} In this report, "$" refers to US dollars. This resettlement monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 DUE DILIGENCE REPORT ON LAND ACQUISITION AND RESETTLEMENT FOR OMNOGOVI AIMAG (Prepared by the LAR specialist D.Purevsuren) PROJECT DESCRIPTION Within the scope of Part B of the Southeast Gobi Urban and Border Town Development Project being implemented in accordance with the agreement between ADB and Governor s Office of Omnogovi and Dornogovi aimags dated 7 June 2010, improvements to basic urban services involving water supply, sanitation, solid waste management, district heating, storm water drainage and roads improvement in the soum centers of Dalanzadgad, Khanbogd, Gurvantes and Tsogttsetsii of Omnogovi aimag which costs US$8.1 million in total will be made. AIMAG INTRODUCTION The area of Omnogovi aimag is 165,000 km 2 and the aimag has 15 administrative subdivisions (soums) and 53 bags (subdivisions of a sum). The aimag center or Dalanzadgad city is located in 560 km from Ulaanbaatar. It is considered as the biggest province which has m 2 territory in Mongolia and its population settlement is under-populated, 3,4 km 2 is appointed to 1 person and 13,2 km 2 is for one household. The aimag GDP is million tugrugs and the GDP per capita is US$2.7 as of the end of Its livestock numbered over 1 million and the province is the leading one for its number of camel livestock. Regional climate is harsh and continental. In summer time, it gets hot as , in winter time, it gets 40. Wind speed is around 5-15 m/sec, sometimes it reaches 34-45m/sec. Total people in households are living in Omnogovi aimag. Around 31.1% of the total population is 0-15 years old, 62.8% between years old and 6.1% and 60 and older. As of the end of 2010, 34% is living in a city (aimag capital), 23% is in center of soum, and 43% is living in countryside. Obligations of the LAR Specialist are: To update LARP of Khanbogd soum; and If required, to develop LARPs for other subprojects. ADB s Policy on Involuntary Resettlement (1995) To avoid LAR as much as possible; To minimize impacts; and To fairly compensate. Actions taken in order to avoid impacts: On 2 September 2012, the LAR specialist have conducted 2 trainings on ADB s Policy on Involuntary Resettlement among concerned officials of Mon Hydro LLC, a consulting company, Korean consultants and other engineers and supplied the manuals. The preliminary design was received on 22 September 2012 and according to the design, quite many

4 households/entities were likely to be affected. Since then, the design company has been requested in writing total 5 times (23 Sep 2012, 15 Oct 2012, 22 Nov 2012, 18 Jan 2012 and 19 Feb 2013, respectively) to modify the design, minimize numbers of the affected and mitigate impacts according to ADB requirements. The last version of the design of the subprojects was received in February 2014 and according to the version, Dalanzadgad had no APs and Khanbogd had 21, Tsogttsetsii -16 and Gurvantes- 4 APs. During the field trip of LAR specialist to the aimag made on March 2014, LAR consultant personally visited the subproject sites and carefully established that there is no LAR impact in the foresaid soums and met Governors of the foresaid soums, officials of the Land Department and other concerned specialists along with the project civil engineer and carefully discussed about actual chances to avoid resettlement under the design. TSOGTTSETSII SOUM Project component: The subproject will construct 5.9 km water supply pipe, 2.8 km sewerage pipe, 2 water reservoirs with 100 m 3 capacity, 3 water kiosks, heating boiler, 1 sewerage pump station and 1.8 km road in Tsogttsetsii soum. ROW: According to the Water Supply, Outdoor Network and Facility Standard of the Construction Norms and Standards , width of the ROW of the water supply and sewerage pipes transverse through ger area of the subproject is 10 m. Since the width of the ROW is more than 10 m in all parts, there is no need to narrow the ROW. Scope of LAR impact: As of 11 March 2014, total 11 households/entities were likely to be affected pursuant to the design delivered by the design company in February out of 11 APs were located in the area where width of its ROW is enough or m. It was determined that those APs were shown as affected due to error of the base design developed by the design company. If the ROW is shifted in 4 parts, the remaining 6 households will not be affected. Furthermore, the lands with/without fence allocated to total 13 households in 2 areas, which not named as affected, can be avoided as well. Accordingly, after holding several meetings and making phone calls with the design company and local administration management, the design was modified and avoided the impacts completely. No LAR will take place in any parts of the water kiosks, water supply and sewerage pipes and the project components will be implemented on public lands. Ts.Munkhdelger, chairman of the soum Citizen s Representatives Khural, E.Ariuntulga, land officer, Ts. Zolboo, specialist in charge of infrastructure, S.Boldmaa, project civil engineer and the resettlement specialist worked on the final version of the design and all agreed that there will be no impact due to the project implementation (See Attachment 1). Areas required the ROW shifting: 1. Page 6. Households with No 5 and 6 can be avoided if the ROW is shifted. 2. Page 16. If the ROW is shifted, total 4 households including a household owned the land which not included in the design, avoided. 3. Page 9. There was a fence. However, currently there is no household. 2 lands were allocated to households and avoided. 4. Page 15. Although it was empty, there was land allocated to 11 households. Shifted the ROW towards to the households fence.

5 PHOTOS: Areas with enough ROW Areas where ROW shifted and mitigated impacts KHANBOGD SOUM Project component: The subproject will construct 3.3 km water supply pipe, 7.7 km sewerage pipe, 2 km heating pipes, 2 water kiosks, heating boiler, 1 waste water treatment plant in Khanbogd soum. ROW: According to the Water Supply, Outdoor Network and Facility Standard of the Construction Norms and Standards , width of the ROW of the water supply and sewerage pipes transverse through ger area of the subproject is 10 m. Since the width of the ROW is more than 10 m in all parts, there is no need to narrow the ROW. Scope of LARP impacts: According to the project design, Khanbogd was the soum with largest number of the APs (total 21 APs). On 12 March 2014, LAR consultant has visited and checked personally the

6 ROW of the 5.1 km water supply pipe, 5 km sewerage pipe and 2 km heating pipe. During the field trip, the fact was way different. 16 among total 21 affected which not affected at all, were shown in the design as affected due to error of the cadastral base design and negligence act of the design company. For instance, total 14 with No 1-14 affected households were not affected at all and the width of the ROW was m from the road earth edge to household s fence which was enough for the construction of the pipes. Furthermore, while the distance between hospital and laboratory (No 16) was more than 30 m, the fence was affected in the design. 4 affected can be not affected upon shifting of the ROW (No 15, 18, 20 and 21). The affected property or the cement area in front of the Cultural Center (No 19) is the property with local ownership. Therefore, 16 households were avoided as a result of the modification to the design and 4 affected as a result of shifting of the ROW. According to the agreement, the project resettlement cost will be borne by the local administration and Mr. Buyan-Ulzii, Governor, informed that the local administration will be fully responsible for the affected Cultural Center since this affected property is the locally owned. PHOTOS: Areas with enough ROW

7 GURVANTES SOUM Project component: The subproject will construct 5.5 km water supply pipe, 2.6 km sewerage pipe, water reservoir with 100 m 3 capacity, 2 wells, 3 water kiosks, waste water treatment plant, flood protection damn and 2 km paved road in Gurvantes soum. ROW: According to the Water Supply, Outdoor Network and Facility Standard of the Construction Norms and Standards , width of the ROW of the water supply and sewerage pipes transverse through ger area of the subproject is 10 m. Scope of LARP impacts: As a result of cooperation with the design company and local administration, the number of APs (9 APs) was reduced and furthermore, the impacts were completely avoided. No LAR will take place in any parts of the water supply and sewerage pipes. All project components will be implemented on public area. Outcome of the joint investigation confirmed by the letter 01/215 of the aimag Governor dated 15 May 2014 is submitted as shown below (See Attachment 2). CONCLUSION Obligations of the project resettlement specialist was to update the LARP for Khanbogd soum and if required, to develop LARP for the other subprojects. As a result of the activities including observation made during the term of the agreement in compliance with the possible resettlement avoidance, trainings among the staffs of the design company, meetings, cooperation, field trips, personal inspection and meetings with the affected persons, the LAR impacts which might be incurred due to the civil works of the subproject in Tsogttsetsii, Khanbogd and Gurvantes soums, Omnogovi aimag. Since there will be no impacts, it is deemed that there is no need to develop the LARP. For Khanbogd soum, there was no need to implement or update the existing LARP while the project ROW is changed and impacts are avoided.

8 Attachment 1. LETTER FROM OF THE CHAIRMAN OF CITIZEN S REPRESENTATIVES KHURAL, TOGTS-TSETSII SOUM

9 Logo OMNOGOVI AIMAG CITIZEN S REPRESENTATIVES KHURAL OF TSOGTTSETSII SOUM Uguumur, Tsogttsetsii soum, Omnogovi aimag Tel: Date: 12 March 2014 Ref: 29 To: B. Oyun, Project Manager, Southeast Gobi Urban and Border Town Development Project We hereby submit you the following proposals following inspection carried out jointly by local concerned officials, D.Purevsuren, project resettlement specialist, and S.Boldmaa, project civil engineer, on the water supply and sewerage pipes to be constructed by the project. Among total 11 affected households, 8 households as well as 3 households (No 7, 8 and 9) can be avoided by shifting the ROW. This impacts can be avoided by connecting the pipe, which turning it on right side of police station with the sewerage pipe coming from right side. Furthermore, pages 9 and 15 of the design show that the pipes will be constructed on the empty lands owned by total 13 households. Therefore, please avoid the impacts by shifting these pipes. CHAIRMAN (signed and sealed) TS.MUNKHDELGER

10 Attachment 2. LETTER FROM GOVERNOR OF GURVANTES SOUM Logo

11 OMNOGOVI AIMAG GOVERNOR OF GURVANTES SOUM Gurvantes soum, Omnogovi aimag, Tel: Date: 15 May 2014 Ref: 1/215 To: B. Oyun, Project Manager, Southeast Gobi Urban and Border Town Development Project We hereby inform you that there is no household or entity affected by the water supply, sewerage pipes to be constructed under the Southeast Gobi Urban and Border Town Development Project implemented in the soum. GOVERNOR (signed and sealed) G.GANGAMAA

12 DUE DILIGENCE REPORT ON LAND ACQUISITION AND RESETTLEMENT FOR DORNOGOVI AIMAG (Prepared by D.Purevsuren, LAR specialist) PROJECT DESCRIPTION Within the scope of Part B of the Southeast Gobi Urban and Border Town Development Project being implemented in accordance with the agreement between ADB and Governor s Office of Omnogovi and Dornogovi aimags dated 7 June 2010, improvements to basic urban services involving water supply, sewage pipe, heating pipe, road and other improvements in the soum centers of Sainshand and Zamyn- Uud of Dornogovi aimag which costs US$7.9 million in total will be made. AIMAG INTRODUCTION The area of Dornogovi aimag is km 2 and the aimag has 14 administrative subdivisions (soums) and 58 bags (subdivisions of a sum). The aimag center or Sainshand city is located in 465 km from Ulaanbaatar. Total people in households are living in Dornogovi aimag. Around 48.7% of the total population is male and 51.3% is female. As of the end of 2013, 60.6% is living in a city (aimag capital), 15.2% is in center of soum, and 24.2% is living in countryside. Unemployment rate is 2.6%. Regional climate is harsh and continental. In summer time, it gets hot as +41, in winter time it gets 41. Wind speed is around m/sec; sometimes it reaches 35m/sec. Obligations of the LAR Specialist are: To update LARP of Khanbogd soum; and If required, to develop LARPs for other subprojects. ADB s Policy on Involuntary Resettlement (1995) To avoid LAR as much as possible; To minimize impacts; and To fairly compensate. SAINSHAND SOUM Project component: The subproject will construct 6,45 km water supply pipe, 5,06 km sewerage system, 2,7km heating pipe, 1 heating boiler and 2 km road in Sainshand soum. ROW: a) In order to minimize resettlement impact, the standard total trench width of 10m was reduced to 5m along several sections of the pipeline in accordance with the Construction Standard and Rules of Mongolia for Water Supply, External Networks and Structures BNBD b) The subproject will improve a 2 km dirt road section by paving the road surface. The right of way (ROW) of the subproject roadincludes a 7m wide carriageway (2 lanes of 3.5m each), a side walk of 1.5m width on each side, a

13 0.75m wide median between the carriage way and side walk, a 0.5m shoulder on each side. Accordingly, the total ROW is 12.5m. Scope of LAR impact: With the joint cooperation of Design Company and local administration, several inspections had been carried out in the field and number of the affected reduced from 9 to 3. Furthermore, impacts are fully avoided. No LAR will be carried out in any parts of the water supply and sewerage pipes and paved road will be constructed in an area where there is no settlement and development. Therefore, all components of the project will be implemented in public areas. Outcome of the joint inspection is confirmed and delivered, by the Governor s letter No 13 of the soum dated 13 May (Please see Annex 1). ZAMYN-UUD SOUM Project component: The subproject will construct 13.4 km water supply, 7.9 km sewage system, 3 km heating pipe, 3 heating distribution centers, 3 water kiosks, 2 sewage pump stations, and 1 km paved road in Zamyn-Uud soum. ROW: In order to minimize resettlement impact, the standard total trench width of 10m was reduced to 5m along several sections of the pipeline in accordance with the Construction Standard and Rules of Mongolia for Water Supply, External Networks and Structures BNBD ). The subproject will improve a 1 km dirt road section by paving the road surface. The right of way (ROW) of the subproject roadincludes a 7m wide carriageway (2 lanes of 3.5m each), a side walk of 1.5m width on each side, a 0.5m shoulder on each side. The total ROW is 11m. Scope of LAR impact: As a result of cooperation with the Design Company and local authorities, a total number of the affected persons were reduced and furthermore, LAR impacts are fully avoided. On 17, 18 and 19 March 2014, carried out the field visit with M.Bayanmunkh, Governor, P.Tumenjargal, head of the Mayor s Office, U.Sanraajav, Chief Engineer of the Pre-Mining Administration, Altanchimeg and Bat-Orgil, land officers and B.Batnyam, PIU manager in Zamyn-Uud soum, Dornogovi aimag. According to the design delivered by the design company on 20 February 2014, total 5 households/entities were affected. However, those 5 affected were not affected in fact. Instead, there were properties of total 39 households/entities were likely to be affected however, not shown in the design. Those are: 12 iron fences, trees, 7 houses, 2 iron containers, 5 cement and concrete areas, shed and open pits with no permission built by people on public lands. As a result of negotiation with the Design Company and relevant local administration officials, 39 affected were fully avoided by shifting the ROW and narrowing width of the ROW. No LAR will be carried out in any parts of the water supply and sewerage pipes and all components of the project will be implemented in public areas. Outcome of the joint inspection is confirmed and delivered, by the letter No 02/102 by the Governor of the soum dated 13 May 2015 (Please see Annex 2). According to the design for 1km road, delivered by the author, 73 fences and 52 houses were likely to be affected. However, the reality was way different and only few fences, 2 brick houses and 1 new sandwich grocery store were likely to be affected in fact. Impacts on households fences and 2 small brick houses can be fully avoided if ROW is shifted. However, the sandwich grocery store cannot be avoided. During the field visit, issue regarding 1 km paved road construction in ger area was arisen but not finalized. When it was decided to construct the road, the resettlement specialist s contract term was expired. Therefore, there was no chance to prepare the LARP. The local administration was agreed to be responsible for this issue and discuss with the PIU. Furthermore, the PIU agreed to ensure and monitor

14 whether the affected living standard remains as it is now, whether the LAR carried out in accordance with ADB Involuntarily Resettlement Policy and whether fair compensation was allocated. Such is confirmed and delivered, by the soum Governor s letter No2/35 dated 20 April 2014 (Please see Annex 2). Areas with enough ROW Areas where ROW is shifted

15 CONCLUSION Obligations of the project resettlement specialist or the project was to update the LARP for Khanbogd soum and if required, to develop LARP for the other subprojects. As a result of the activities including observation made during the term of the agreement in compliance with the possible resettlement avoidance, trainings among the staffs of the design company, meetings, cooperation, field trips, personal inspection and meetings with the affected persons, the LAR impacts which might be incurred due to the civil works of the water supply, sewage pipe and road improvement fully avoided in Sainshand soum. Since there will be no impacts, it is deemed that there is no need to develop the LARP. The letter No13 of the soum Governor dated 13 May 2014 is attached here as a proof. For water supply, sewage system and heating pipe work of the Zamyn-Uud sub project, the LAR impacts which might be incurred due to the works are fully avoided and this has been confirmed by the letter No1/102 of the soum Governor dated 13 May However, there is only affected person in ROW of the road in Mobicom Street in Zamyn-Uud. Since there are few numbers of the affected and it was stated in the project agreement that the local administration will be responsible for compensation, it is required that relevant local authorities should be responsible for the resettlement and PIU conducts its own internal monitoring of compliance with the ADB Involuntary Resettlement Policy and report to PMU and ADB. Such is confirmed by Zamyn-Uud soum Governor s letter No2/35 dated 20 April It is considered that there is no need to engage resettlement specialist and to prepare LARP.

16 ANNEX 1: LETTER BY THE GOVERNOR OF SAINSHAND SOUM

17 Translation from Mongolian DORNOGOVI AIMAG GOVERNOR OF SAINSHAND SOUM AND MAYOR OF THE CITY Sainshand soum, Dornogovi aimag Tel: (705) Date: 13 May 2015 Ref: 13 To: B. OYUN, PROJECT MANAGER, PMU, ADB PROJECT G-0204 It is our pleasure to express our gratitude to your project team for caring about people and development of Sainshand soum and implementing large-scale investment and development. For engineering network maintenance, outside areas of Sydney, Ajnai and Gurvanbayan shopping centers were affected by the project. However, they were avoided as a result of mutual agreement with management of relevant professional authority. Sincerely, (Signed and sealed) B. BATBAYAR

18 ANNEX 2: LETTERS BY THE GOVERNOR OF ZAMYN-UUD SOUM

19 Translation from Mongolian DORNOGOVI AIMAG MAYOR S OFFICE OF ZAMYN-UUD CITY Borhoin Tal, Zamyn-Uud soum, Dornogovi aimag Tel/Fax: ( ) Date: 13 May 2015 Ref: 2/102 To: B. OYUN, PROJECT MANAGER, PMU, ADB PROJECT G-0204 Sub: Settlement of matter Within the framework of G-0204 project financed by the Government of Mongolia and ADB, Hangain Nar LLC developed the design for replacement of existing sewerage main pipes and installment of new branch pipes and S&A Trade and Hangiltsag LLC were selected as contractor for the work. Few numbers of households and companies were affected by the engineering network. As a result of mutual agreement with relevant professional authority and the households, impacts on such were avoided. Appendix: 3 pages. Sincerely, (Signed and sealed) P. TUMENJARGAL

20

21 DORNOGOVI AIMAG MAYOR S OFFICE OF ZAMYN-UUD CITY Borhoin Tal, Zamyn-Uud soum, Dornogovi aimag Tel/Fax: ( ) hot@yahoo.com Translation from Mongolian Date: 20 April 2015 Ref: 2/35 To: B. OYUN, PROJECT MANAGER, PMU, ADB PROJECT G-0204 The local administration will be fully responsible for land acquisition and impact removal to be occurred due to construction of 1km paved road in Mobicom Street, 2 nd bag, Zamyn-Uud soum, financed by the ADB. Thank you for your cooperation. Sincerely, (signed and sealed) P. TUMENJARGAL