Relevance of Nexus for Ulaanbaatar city, Nexus activities in Ulaanbaatar city

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1 Relevance of Nexus for Ulaanbaatar city, Nexus activities in Ulaanbaatar city Fourth Regional Workshop on Integrated Resource Management in Asian Cities: The Urban Nexus Ulaanbaatar, Mongolia, 5-7 November, 2014

2 Relevance Current situation in UB: Population grows/migration and booming housing construction in last years; Problems facing: Uncontrolled Ger area expansion, causing severe air pollution, soil and groundwater contamination; acute heat energy and water supply capacity shortage; Programs of UB to cope with: Master plan of UB, Ger area re-development program, Housing program, Sub program for reduction of thermal losses in existing old buildings.

3 Migration effects on current urbanization

4 Population Population of Mongolia is 2.93 million as the end of 2013, of which 1.37 million or 46.8% are residing in the capital city Ulaanbaatar. Улсын National хэмжээнд Улаанбаатар Ulaanbaatar

5 Programs of Ulaanbaatar city related to Nexus Master plan of Ulaanbaatar until 2030 enacted by Parliament of Mongolia in 2013; Housing program of Ulaanbaatar adopted by City Council in May 26, 2014; the 5 th sub-program is about the thermo-technical retrofitting of panel apartment buildings in UB; Ger-area development through re-planning, re-developments projects are running in 21 Locations; Creation of additional heating capacity at Power plants No.3,4 and new Heat only power plant with capacity of 300 MW in the eastern part of UB to be ready in 2015;

6 Programs of Ulaanbaatar related to Nexus Establishment of UB city Finance corporation; UB city program for community mapping (in cooperation with The Asia Foundation) aiming at the improvement of public services especially in Ger districts of UB; Piloting of health and safety indexes for UB city; Economic development strategy is under development;

7 Programs of Ulaanbaatar related to Nexus Creation of Wi-Fi environment for entire city; Water safety program; Program for establishing of the Food bank aiming at price controlling and supervision; Elaboration of City chapter and Regulation for issuing of technical permission/conditions; UB city s radiation control program (soil, water, air, ash, power plants) to protect and promote the physical and environmental health of the people of Ulaanbaatar city;

8 Nexus activities of UB City Government A project design document for The thermo-technical retrofitting of public and apartment buildings in Ulaanbaatar to be implemented in 16 th Khoroo, Bayanzurkh district to reduce the thermal loss in the pre-cast panel apartment buildings elaborated with support of GIZ; A study on public schools and kindergartens for implementation of TTR conducted with support of GIZ; A study on Elaborating Financial mechanism for the Implementation of the Ulaanbaatar Thermo-technical Renovation project (a key for the successful implementation of the TTR program) has been conducted with support of GIZ (XAC Bank);

9 Justification for TTR program Panel apartment buildings show substantial thermal losses leading to condensation and mold grows inside of the buildings, continuous dilapidation of the building structure; Uncomfortable conditions and cold indoor temperature during the winter season in Ulaanbaatar (heating season lasts for 8 months, outside air temperature up to -40 C); Due to the lack of major overhaul the heating system is deteriorated (blocked heating pipes, broken valves, heating regulation is hardly possible); High heat energy consumption (The average annual heating consumption of these buildings is over 350 kwh/m 2 ).

10 Importance of TTR program Panel building quarters in UB constructed in 70,80,90 s (20% of the population of UB live in these buildings, forming 1/3 of the housing stock of UB): With the thermo-technical retrofitting (TTR) of total 14 panel building micro districts a saving of heat energy amounting to 70.3 Gcал/h or 30% saving is achievable. But this saving refers only to the insulation measures. By introduction of consumption based tariffs and technical installations for heat energy metering and regulating the savings could reach 50%. With the saving or freeing of 70.3 Gcал/h heat energy capacity it is possible to supply heat energy for a micro district having the size of micro district No.3,4. XXX

11 Financial mechanism for the TTR program One of the possible financial structures (out of 3 proposed) proposes the utilization of the JCM subsidy scheme developed by MOEJ and GEC.

12 Financial mechanism for the TTR program The second possible financial structure proposes additionally the Mansard roof construction and Sale.

13 TTR program output The heat energy savings from the retrofitted apartments will be distributed elsewhere in the city or to the Ger districts for new construction. Some results estimated: After all clusters are complete, a total of 55, tonnes of coal will be saved per year. After all clusters are complete, the city will be able to sell 4,082,170, MNT of extra heat to customers around the city per year. Each cluster saves 10, MWh/year, which is equal to 3, tonnes of CO 2, so after all 10 clusters are complete, CO 2 emissions will be reduced by 204, tonnes per year.

14 Best practices in UB (TTR in Ulaanbaatar) Before After Joint Pilot Retrofitting project financed by GIZ an UB city (2007)

15 Best practice GIZ retrofitting project financed by USAID has thermo-technically retrofitted three school buildings in Ulaanbaatar School No.63 in Khan-Uul district, Yarmag Solar collectors for warm water on the roof (School No.63 )

16 Impacts In terms of social and economic impacts: Free heat energy capacity will be available to connect many newly buildings to the district heating system of Ulaanbaatar. TTR will considerably prolong the lifetime of these buildings and will help to reduce heating costs. The heating quality, thermal comfort and hygienic conditions will be improved significantly. The TTR will create new jobs in the construction sector of Mongolia.

17 Impacts on the city look: The TTR will improve the appearance/facade of buildings contributing to a more beautiful city. Impacts on reducing air pollution of the city: Saving heating energy will reduce the fuel consumption of decentralized heating furnaces (school and kindergarten buildings in Ger-districts) and so positively impact on reducing air pollution in the winter months. Impacts on application of renewable energy sources The TTR of buildings will create favourable conditions for the usage of renewable energy (solar collectors for warm water and heating provision). The combination of TTR with renewable energy applications is the most effective way to reduce fossil fuel consumption.

18 Other related activities Meeting with ADB Climate Investment Fund scoping mission to introduce the study on state-owned schools and kindergartens (in April, 2014); ADB expressed its interest to fund (matching funds) retrofitting of public schools and kindergarten/climate investment fund funding renewable energy devices for schools and kindergartens in the Ger districts of UB; The enacting of a comprehensive Capital city housing program by the City council in May 2014 including TTR of panel apartment buildings; Practical thermo-technical retrofitting of 2 Kindergartens in Uliastai and Khovd including on-job-training in collaboration with TVET schools.

19 Thank you for your attention!

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