Environmental Assessment Report

Summary Environmental Impact Assessment Project Numbers: 39265 and 39493

August 2007

Mongolia: Western Regional Road Corridor Development Project – Phase I

Prepared by the Government of for the Asian Development Bank (ADB).

The summary environmental impact assessment 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.

CURRENCY EQUIVALENTS (as of 18 July 2007)

Currency Unit – togrog (MNT) MNT1.00 = $0.00086 $1.00 = MNT1,163.50

The exchange rate of the togrog is determined under a floating exchange rate system. In this report, the rate used is the rate prevailing as of 18 July 2007.

ABBREVIATIONS

ADB – Asian Development Bank EIA – environmental impact assessment EMP – environmental management plan GDP – gross domestic product GPS – global positioning system IBA – important bird area KNP – Khar-Us Nuur National Park MNE – Ministry of Nature and Environment MNR – Manhan Nature Reserve MRTT – Ministry of Road, Transport and Tourism NAMHEM – National Agency of Meteorology Hydrology and Environmental Monitoring Agency NGO – nongovernment organization PIU – project implementation unit RSRC – Road Supervision Research Center SEIA – summary environmental impact assessment SPA – strictly protected area WCS – World Conservation Society WWF – World Wild Fund for Nature

WEIGHTS AND MEASURES

оС – degree Celsius ha – hectare km – kilometer m – meter

NOTE

In this report, “$” refers to US dollars.

CONTENTS

Page

MAP I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 1 III. DESCRIPTION OF THE ENVIRONMENT 2 A. Definition of the Project Area 2 B. Physical Resources 3 C. Ecological Resources 4 D. Special Protected Areas 6 E. Economic Development of the Western Corridor 9 F. Social and Cultural Resources of the Western Corridor 10 IV. ALTERNATIVES 11 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 13 A. Scoping B. Measures before Construction 13 C. Physical Environment 14 D. Socioeconomic Impacts 14 E. Possible Change in Alignment 19 21 VI. ECONOMIC ASSESSMENT 21 VII. ENVIRONMENTAL MANAGEMENT PLAN 22 VIII. PUBLIC CONSULTATION AND DISCLOSURE 24 IX. CONCLUSION 25 APPENDIXES 1. Terms of Reference for the Topographical and Environmental Survey 26 2. Environmental Management Plan 28 3. Implementation Time Frame 37 4. Environmental Monitoring Plan 38

96o 00'E 111 o 00'E

RUSSIAN FEDERATION

o o 50 00'N 50 00'N UVS HOVSGOL Suhbaatar SELENGE Moron Olgiy Darhan R U S S I A N DARHAN-UUL BAYAN- Hovd OLGIY ZAVHAN Bulgan ORHON HENTIY Choybalsan F E D E R A T I O N ARHANGAY ULAANBAATAR Uliastay DORNOD TOV HOVD Ondorhaan Bayanhongor GOVISUMBER Baruun-Urt Altay Choyr Arvayheer SUHBAATAR Shiikhen National GOVI-ALTAY OVORHANGAY Saynshand Project Area DUNDGOVI Park Part B BAYANHONGOR DORNOGOVI Ulaanbaishint 42 o 00'N OMNOGOVI 42 o 00'N Tsugaannuur Shiikhen National Park Part A Shiilkhen PEOPLE'S REPUBLIC OF CHINA IBA 96o 00'E 111 o 00'E

92 o 00'E

Tsambagaray Olgiy National Park MONGOLIA WESTERN REGIONAL ROAD CORRIDOR DEVELOPMENT PROJECT Phase I Lake IBA Tolbo Lake

Tolbo Ch ing gis PHASE - I W I all

Khar Us Nurur 48 o 00'N Hovd IBAs Khar-Us Nuur National Park 48 o 00'N

M O N G O Manhan L Nature Reserve I A PEOPLE'S REPUBLIC N

OF CHINA Manhan A L T

A P Y H A S R E - A I National Park N Nature Reserve G E Mountain National Capital Provincial Capital B O Most Other Town/Village D A N C Important Bird Area (IBA) H

C A Project Road N Y O Phase II Road N Other Road N Chinggis Wall Yarant River Uyench Provincial Boundary 0 15 30 45 60 Bulgan River Bulgan International Boundary Nature Reserve Bulgan River Kilometers Boundaries are not necessarily authoritative. IBA Altai 92 o 00'E

07-1982 HR

I. INTRODUCTION

1. This summary environmental impact assessment (SEIA) describes the possible environmental impacts of the construction and operation of the proposed Western Regional Road Corridor Development Project – Phase I (the Project) in Mongolia and recommends measures to mitigate adverse impacts. The SEIA conforms to the Environmental Assessment Guidelines (2003) and the Environment Policy (2002) of the Asian Development Bank (ADB). ADB rates the Project as category A, according to its environmental classification criteria. This SEIA is based on the environmental impact assessment (EIA) prepared by the project preparatory technical assistance consultant team.1

2. Mongolia’s EIA requirements are regulated by the Law on Environmental Impact Assessment, which defines two types of EIAs: general and detailed. To initiate a general EIA, the project implementer submits a brief description of the project to the Ministry of Nature and Environment (MNE), including the feasibility study, technical details, and drawings. The general EIA will lead to one of four conclusions: (i) no detailed EIA is necessary, (ii) the project may be completed pursuant to specific conditions, (iii) a detailed EIA is necessary, or (iv) the project is canceled. The scope of the detailed EIA is defined by the general EIA. The detailed EIA contains the following chapters: (i) environmental baseline data; (ii) project alternatives; (iii) recommendations for minimizing, mitigating, and eliminating impacts; (iv) analysis of extent and distribution of adverse impacts and their consequences; (v) risk assessment; (vi) environmental protection plan; (vii) environmental monitoring program; and (viii) opinions of residents on whether the project should be implemented.

II. DESCRIPTION OF THE PROJECT

3. The Government of Mongolia, acting through its Ministry of Road, Transport, and Tourism (MRTT), is undertaking development of a road corridor in the western region of Mongolia (the Western Road Corridor Project). The corridor is approximately 748.4 kilometers (km) and connects Yarant (at the Mongolia-Republic of China [PRC] border) and Ulaanbaishint (at the Mongolia-Russian Federation border). It is to improve the country’s internal transport network and increase trade and transit links between Mongolia and the PRC and Russian Federation. The Government carried out a feasibility study and an EIA for the entire road length. The detailed EIA is being prepared using the EIA prepared by the project preparatory technical assistance consultants, which includes assessment required for the detailed EIA. MNE is expected to approve the detailed EIA for the entire road in August 2007.

4. The Western Road Corridor Project will be implemented into two phases: phase I, from the Mongolia-PRC border to Hovd (431.2 km), will start construction in 2008. Phase II, from Hovd to the Mongolia-Russian Federation border, will start construction in 2010. This SEIA is for Phase I. When the phase II project is prepared, a separate SEIA will be prepared.

5. The road corridor crossing plains and hilly areas are earth multitracks. For decades, the lack of paved roads has resulted in drivers optimizing their traffic routes within road corridors throughout virgin lands. In many sections, as many as 50 or more tracks can be spread across the width of the plain. This leads to land degradation, damages flora, triggers erosion, and generates substantial dust. The Project will select one of the tracks and pave it. The main

1 TERA International Group, Inc. 2007. Project Preparatory Technical Assistance Final Report Mongolian Western Road Corridor Project. Manila.

2 construction activities 2 will be inside the existing multitrack area with no realignments or development of new alignments in previously undisturbed areas.

6. The entire corridor between Yarant and Ulaanbaishint (the Western Corridor) will be designed as a two-lane road. The road improvement works proposed are (i) road upgrading on the existing alignment; (ii) asphalt concrete overlay with an asphalt concrete regulating course, providing selected fills and granular material for shoulders; (iii) blasting works (where required) to widen the existing road in limited areas; (iv) road markings, road signs, and guide posts; (v) construction of road maintenance centers and rest areas; and (vi) new construction and reconstruction works for pipe culverts, box culverts, and single- to 3-span bridges with lengths up to 45 meters (m) (a total3 of eight bridges and 132 culverts). Total earthwork and pavement quantities for the Project are given in Table 1.

Table 1: Earthworks and Pavement for the Project

Item Total Quantity (m3) Phase I (m3) Phase II (m3) Subbase 1,385,230 764,280 620,950 Embankment fill 7,039,393 3,690,981 3,348,412 Excavation 2,697,963 951,904 1,746,059 Asphalt concrete mixture 4,580,800 2,570,400 2,010,400 m3 = cubic meter. Source:TERA International Group, Inc. 2007. Project Preparatory Technical Assistance Final Report Mongolian Western Road Corridor Project. Manila.

7. Project Location. The Western Corridor is located in western Mongolia. The Project will upgrade approximately 367 km road of between Bulgan, near the Mongolia-PRC border,4 and Hovd, the aimag center.

8. Implementation Schedule. The road upgrading will require approximately 6 years. Asphalt pavement work is limited to 5 months of the year (May–September) and earthwork is limited to 6 months of the year (May–October) because of cold weather. Stockpiling of aggregates, precast concrete structures, and other preparatory works can be conducted throughout the year. The scheduling includes (i) detailed design and tender documents, 12 months; (ii) prequalification of contractors, 3 months; (iii) tendering for civil works, 2 months; and (iv) implementation of civil works, 42 months. Civil works contracts will include a defect liability period of 12 months.

III. DESCRIPTION OF THE ENVIRONMENT

A. Definition of the Project Area

9. The potentially affected area associated with the Project is defined principally in regard to two factors: nature and scale of the proposed action, and sensitivity and circumstances of the environment in which the proposed action will occur or gives rise to special concern. The project road crosses through Hovd aimag (province) with a combined population of approximately 91,687 (2005). The alignment passes through nine soums (municipalities) in Hovd: Bulgan, Uyench, Altai, Most, Manhan, Jargalant, Erdeneburen, Hovd, and Buyant; they comprise the

2 Borrow pits and quarries are planned outside the existing multitrack road area. 3 These figures are only for phase I. 4 As the 64 km section between the PRC border and Bulgan is paved, the road improvement section length is different from the project length in paragraph 4.

3 project area. To determine the impact of the entire Project, five soums in Bayan-Olgiy aimag are also included in the project area: Tolbo, Buyant, Bugat, , and .

B. Physical Resources

10. Topography. The Project will follow an existing alignment that passes through high mountain areas, hills, canyons, valleys, and plains with elevations ranging from 1,194 m to 2,871.3 m above sea level.

11. Geology. The Western Corridor is situated in the Mongol Altay high mountainous area. The geological setting of this territory began to form in the Cambrian Period, when the rocks were folded and faulted as the Mongolian and Siberian cratons collided in the Paleozoic and Mesozoic eras. Granite rocks dominate the high peaks. The Altay Mountains were formed mostly by Paleozoic rocks of intrusive complex, comprising granite-granodiorite and granite. Gabbro, granite, diorite, and granodiorite rock deposits were found in Hovd, along with a metamorphic massif underlying the Bodonch Canyon Mountains.

12. The Manhan steppe area is covered by Kainozoic and quaternary sediments. In this area, the soil contains a wide variety of continental and marine sedimentary rocks, some with fossils: conglomerate, sandstone, mudstone, dolomite, and limestone.

13. According to the geomorphological map of Mongolia, the terrain conditions primarily involve excessive rolling ranges, medium rolling ranges and mountains, slight rolling ranges of sloped structure, mountainous ravines, semilevel surfaces of mountain skirts, glacial valleys, mountains with sharp ridged peaks, alluvial lake valleys, delluvial-prolluvial, and mountain river valleys.

14. Soils and Permafrost. Soil characteristics vary substantially within the Western Corridor. The most common throughout the Yarant border to Bodonch section are alluvial, desert, and semidesert brown and Govi brown soils. High mountain steppe raw humic, and soils of high mountain tundra are typical for the high-altitude part of Bodonch Canyon. Govi brown and light krasnozem soils are dominant between Manhan and Hovd, with solonchak, and solonets near Khar Us Lake. High mountain steppe raw humic soils are widespread for the high altitude sections between Hovd and Ulaanbaishint border. Spots of high mountain tundra occur largely between Hovd and Olgiy. Govi brown soil dominates near Hovd and Olgiy. Both perennially and seasonally frozen soils occur in the project area. Continuous permafrost persists between Ulaanbaishint and Tsagaannuur, Hovd and Olgiy (between Hashaat and Buraat passes), and the upper part of Bodonch Canyon. Seasonally frozen soils occur near Hovd and Olgiy. Permafrost is rare in the vicinity of Bulgan soum and Bulgan River valley.

15. Seismic Characteristics. The Western Corridor is in the Mongol Altai and Gobi Altai seismically active zones; earthquakes with the magnitude of about 8 were registered in 1931 and 1957.

16. Natural Disasters. Flashfloods (mudflows), rockfalls, and drifting snow are distinctive features of the project area. Rockfalls occur in Bodonch, Havchig, and Hongio canyons; flashfloods are widespread in Bodonch and Hongio canyons, the Manhan–Hovd section, and near Hashaat and Buraat passes. Drifting snow is characteristic for Baga Ulaan, Buraat, and Zeegt passes, as well as in the Tsagaannuur–Ulaanbaishint section.

4

17. Climate and Air Quality. The annual average air temperature in the Western Corridor has ranged between minus 0.2oCelsius (C) and 1.3oC for the past 10 years. The annual range of air temperature varies between 66oC and 82oC, depending on geographic location and natural zone. The monthly absolute maximum and minimum air temperatures observed at meteorological stations along the road show that July is the warmest month and January or February the coldest. During the last 10 years, the absolute maximum air temperature reached 39oC at Bulgan soum in Hovd Aimag in 2004 and the absolute minimum air temperature was minus 44oC at Manhan soum in 2005.

18. About 85.0%–94.5% of annual precipitation falls between May and September. During the cold season, snowstorms can occur, causing the road to be closed. The stable snow cover formation date varies from the middle of November to the beginning of December, with snow cover completely clearing in March. The dominant wind direction is from the west and northwest, with maximum wind speed varying from 18 to 28 m per second. Dust storms are typical for Olgiy. Air quality is good and does not exceed maximum allowable concentrations except local dust pollution caused by vehicles.

19. Hydrology and Water Resources. Water resources in the project area are represented by surface water (rivers, springs, and lakes) and groundwater. The largest lakes are freshwater Tolbo and Khar Us lakes. The largest rivers include Hovd, Buyant, Bulgan, Bodonch, and Uyench rivers. Spring flooding for the rivers of the project area generally begins in the middle of April, with peak flow occurring in late June and continuing for 110–150 days. The spring flood flow is 60%–90% of the total annual flow of Altay Mountain rivers. The groundwater resource distribution is uneven. Moving from north to south, groundwater resources become more sporadic and mineralization increases. The water quality of all of the rivers and lakes of the project area is assessed as “very clean” and “clean.”

20. Solid Waste. Solid waste, including domestic waste, is abundant in the road corridor. No organized solid waste dumps were noted within the road corridor.

C. Ecological Resources

21. Flora. Dominant flora in the Western Corridor is associated with specific conditions of the area. The flora and the areas in which they are located are presented in Table 2.

Table 2: List of Dominant Plants

Zone Dominance Cerastium lithospermifolium, Dryadanthe tetrandra, Parrya exscapa, Kobresia belardii, High mountain Carex melanatha, Carex orbicularis Festuca lenensis, Oxytropis oligantha, Potentilla nivea, Stellaria pulvinata, Artemisia argyrophylla, Kobresia filifolia Festuca lenensis, Helictotrichon desertorum, Festuca valesiaca, Poa attenuate, Silene Mountain steppe repens, Arenaria capillaries, Onosma arenaria, Spiraea hypericifoloa, Agropyron cristatum, Carex pedifopmis, Galium verum Festuca lenensis, Agropyron cristatum, Krylovia eremophylla, Peucedanum histrix, Allium edaurdii, Potentilla sericea Dry steppe Caragana bundei, Caragana pugmaea, Stipa krylovii, S.kirghisorum, Festuca valesiaca, Agropyron cristatum, Artemicia dolosa, Melandrium viscosum, Saussuea pricei Stipa gobica, Agropyron nevskii, Agropyron cristatum, Artemisia frigida, Arenaria capillaries, Caragana leucophloea, Eurotia ceratoides Desert steppe Stipa glareosa, S.sibirica, Agropyron cristatum, Cleistogenes squarrosa, Allium equardii, Artemisia rutifolia, Caragana bundei, Lophanthus chinensis Stepped desert Stipa glareosa, Caragana bundei, Euratia certoides, Anabasis brevifolia, Artemisia

5

Zone Dominance xerophytica, Agropyron nevskii Nanophyton grubovii, Eurotia ceratoides, Stipa glareosa, Artemisia gracilescens, Grasses: undershrub Reamurea songorica desert Anabasis brevifolia, Stipa glareosa, Arthemisia xerophytica, A.hanthochroa, Ajania fruticosa, Zygophyllum pterocarpum, Ephedra sinica Euratia certoides, Reamurea songorica, Haloxylon ammodendron, Artemisia terrae-albae, Undershrub and shrub Anabasis salsa, A. truncata desert Haloxylon ammodendron, Anabasis brevifolia, Zygophyllum xanthoxylon, Reamurea songorica, Achnathuerum splendens, Leymus, Iris lacteal, Carex enervis, Kalidium foliatum, Hamad Reamurea songorica, Phragmites communis, Tamarix ramosissima, Haloxylon ammodendron, Popolus diversifolia Source: TERA International Group, Inc. 2007. Project Preparatory Technical Assistance Final Report Mongolian Western Road Corridor Project. Manila.

22. Rare plant species growing in Hovd and Bayan-Olgiy aimags include Juniper, Sabina juniper, Pseudosabina, Forked stitchwort, Least Water lily, Pink peony, March saxifrage, Roseroot, Mongolian milk-vetch, Mongolian Caryoperis, Saussurea involucrate, Wild onion, Tulipa uniflora, Shining water lily, Gueldenstaedtia monophylla, Prickly milk-vetch, Fragile- leaved milk-vetch, Red goyo, Halodendron salt tree, Tsengel’s Hedysarum, Squamarina pamirica, Ferula ferulacoides.

23. Fauna. The Mongolian Altai region is characterized by rich fauna biodiversity with 360 species of vertebrates, including 90 species of mammals, more than 250 species of birds, 11 species of reptiles, 123 species of insects, 10 species of fish, and 1 species of amphibians. Rare and endangered mammals and birds that occur in Bayan-Olgiy and Hovd aimags are detailed in Tables 3 and 4.

Table 3: List of Rare and Endangered Animals in Hovd and Bayan-Olgiy

Potential Occurrence in English Name Mongolian Name Latin Name the Project Area Asiatic wild doga Чоно, цєєвєр Cuan alpinus Bodonch Canyon Snow leoparda Ирвэс Uncia Uncia Bodonch Canyon, near Tsambagarav Nature Reserve, Shine Pass, Siilkham National Park Asiatic wild ass Хулан Equus hemionus Southern part of Bulagan soum Wild boar Зэгсний гахай Sus scrofa nigripes Khar Us Nuur Saiga Соргог бєхєн Saiga tatarica tatarica Manhan Nature Reserve, Khar Us Nuur National Park Mongolian saiga antelopea Монгол бєхєн Saiga tatarica mongolica Near Khar-Us Nuur and Manhan Nature Reserve Goitered gazelle Хар сїїлт зээр Gazella subgutturosa Manhan Nature Reserve Wild mountain sheep Алтайн аргаль Ovis ammon Near Bodonch River Ibex Янгир Capra Ibex siberica in Bodonch Canyon, near Tsambagarav Nature Reserve, Shine Pass, Siilkham National Park Beavera Тєв азийн минж Castor fiber birulai Bulgan River Satunin’s Jerbao Таван хуруут Cardiocranius paradoxus Khar Us Nur National Park атигдаахай Thick-tailed Pygmy Jerboa Єєхлєг атигдаахай Salpingotus crassicauda Khar Us Nur National Park a Included in appendices I and II of the Convention on the International Trade of Endangered Species (CITES). Source: Mongolian Red Book. 1997.

6

Table 4: List of Rare and Endangered Species of Local and Migrant Birds

Bayan- English Name Mongolian Name Latin Name Hovd Olgiy Dalmatian pelican Борцгор хотон Pelecanus crispus + Great white egret Цасч дэглий Egretta alba + Eurasian spoonbill Халбаган хошуут Platalea leucorodia + + Black stork Хар єрєвтас Cionia nigra + + Whopper swan Гангар галуу Cygnus Cygnus + + Bar-headed goose Хээрийн галуу Eulabeia indica + + Swan goose Хушуу галуу Cygnopsis cygnoides + + Osprey Явлаг сар Pandion haliaeus + White tailed sea eagle Усны цагаан сїїлт Haliaeetus albicilla + + бїргэд Altai snowcock Алтайн хойлог Tetraogallus altaicus + + Ring necked pheasant Гургуул Phasianus colchicus + + Japanese white napped crane Цэн тогоруу Grus vipio + Houbara bustard Жороо тоодгой Chlamydotis undulate + Great black-headed gull Итэлгэн цахлай Larus ichthyaetus + + Hodgson’a bushchat Єгєєлэй шулганаа Saxicola insignis + + Euroasian pinduline tit Уран шувуу Remiz pendulinus + Henderson’s ground jay Хулан жороо Podoces hendersoni + Source: Mongolian Red Book. 1997.

D. Special Protected Areas

24. The Mongolian Law on Special Protected Areas (1994) distinguishes four types: strictly protected, national parks, nature reserves, and monuments.

25. National Parks. The Western Corridor includes three national parks. Khar-Us Nuur National Park (KNP) was established in 1997 and has a total area of 850,272 hectares (ha). KNP is of both national and international importance, as it is listed in the National Protected Area Network, Ramsar list, Important Bird Area (IBA), and Endemic Bird Area. KNP is home to 54 mammal species, many of which are globally and nationally threatened: Siberian marmot, Snow leopard, Mongolian gazelle, and Mongolian saiga antelope. Of the at least 268 bird species reported to inhabit KNP, 17 are globally threatened, including the White-headed duck, Swan goose, and Saker falcon. Four of five species of fish occurring at KNP are considered threatened in Mongolia: Altai osman, Dwarf Altai osman, Bigmouth altai, and Mongolian grayling.

26. Tsambagarav National Park (111,500 ha) was established in 2000 to protect the natural environment of the area, which has historical, cultural, scientific, educational, and ecological importance, and to develop tourism. It is inhabited by rare and endangered species of flora such as roseroot and wild onion, and fauna such as wild mountain sheep, ibex, Snow leopard, and Altai snowcock.

27. Siilkhem National Park (142,700 ha), established in 2000, is the habitat of rare and endangered species such as wild mountain sheep, ibex and Snow leopard. The park also contains many historical and cultural heritage items from the third to second centuries BC.

28. Nature Reserves. The corridor has two nature reserves. Manhan Nature Reserve (MNR) was established in 1993 to protect the population of Mongolian saiga antelope. The total area of the reserve is 390,071 ha. It has important ecological biodiversity and provides the habitat for the endangered, rare mammal—Mongolian saiga antelope (Saiga tatarica mongolica). The total population of saiga within the MNR is decreasing; according to the last census (January 2007)

7 the population was 15–17 (about 0.5% of the population in the Sharga Nature Reserve located southeast of MNR). This is partly due to the existing multitrack road destroying vegetation in the area. The World Conservation Society is currently conducting studies of the Manhan and Sharga populations and their migration patterns using global positioning system (GPS) technologies (GPS collars). The World Wide Fund for Nature (WWF) plans to conduct a feasibility study on reintroducing Mongolian saiga to a suitable habitat in the Great Lakes Basin.

29. The Bulgan River Nature Reserve (7,657 ha) was established to protect the Asian beaver. The beaver was included in the Mongolian Red Book in 1987.

30. Important Bird Areas. The IBAs located in the vicinity of the project area are Bulgan River, KNP, and Tolbo Lake. Bird species characteristic of Bulgan River IBA are Swan goose (Anser cygnoides), Lesser kestrel (Falco naumanni), Imperial eagle (Aquila heliaca), Relict gull (Larus relictus); Tolbo Lake bar-headed goose (Anser indicus), Whooper swan (Cygnus cygnus), Ruddy shelduck (Tadorna ferruginea), Great cormorant (Phalacrocorax carbo), Pallas’s fish- eagle (Haliaeetus leucoryphus), Northern lapwing (Vanellus vanellus); and of Khar Us IBA, Swan goose (Anser cygnoides), Greylag goose (Anser anser), Bar-headed goose (Anser indicus), Whooper swan (Cygnus cygnus), Ruddy shelduck (Tadorna ferruginea), Common shelduck (Tadorna tadorna), Gadwall (Anas strepera), Eurasian wigeon (Anas penelope) and many others.

31. Ramsar Sites. The only Ramsar site in the project area is localized within KNP. The site, located at elevations of 1,106–1,160 m, occupies 321,360 ha and is a highly representative part of the Great Lakes Basin in Western Mongolia.

32. Protected Area Near the Project. KNP and MNR are adjacent. The proposed alignment was moved 1.5 km westward from the existing main track to avoid the tourist zone of KNP. The alignment goes into MNR. (Figure 1)

9

33. The alignment runs about 300–500 m north of Bulgan River Nature Reserve near Yarant, and passes at the north of Bulgan IBA. Because the section between Yarant and Bulgan is already paved, no civil works are planned; the Project will install equipment in the border facility area.

34. Other Protected Areas. Other protected areas include two planned protected areas with local importance: Alag Teht Mountain and Buurugiin Nuruu Mountain, near Bodonch Canyon. The protected area boundaries and protection categories are under consideration and will be designated after 2008.

E. Economic Development of the Western Corridor

35. Gross Domestic Product. The gross domestic product (GDP) of Hovd amounted to MNT44,033.6 million (MNT476,500 per capita) in 2005. The most important sectors were agriculture, hunting, and forestry (76.0%); transport and communication (5.1%); and education (5.1%). The GDP of Bayan-Olgiy was MNT36,000 million (MNT375,000 per capita) in 2005. The most important sectors were agriculture, hunting, and forestry (71.7%); education (6.5%); financial intermediation (5.8%); and trade (4.5%).

36. Agriculture. Animal breeding is the main economic sector in both Hovd and Bayan-Olgiy. The sector contributes 76.0% of aimag GDP (MNT33.4 billion) in Hovd, and 68.3% of GDP (MNT24.6 billion) in Bayan-Olgiy. The number of livestock in both aimags is constantly increasing. Crop production is of less importance in the agriculture sector of both aimags; Hovd produces vastly more crops than Bayan-Olgiy.

37. Mining. Mining activity in Western Mongolia is associated with several operating mines and other sites that plan to commission deposits to extract coal, gold, silver, and tungsten.

38. Water Supply Systems. The water supply system in Hovd provides centralized drinking water distribution to office buildings and urban residential areas. Daily water supply is 4,600 cubic meters (m3) from nine groundwater wells. Traditional dwellings (ger) in Hovd are supplied with water from eight water distribution stations, four deep wells, and three hand water pumps. Water consumption is 388,300 m3 per day. Some 2,133 wells are used for water supply in rural areas. Surface water is the main source of the water for livestock. In Tsagaannuur, the only source of drinking water is located within the project area.

39. Electric Distribution Systems. Hovd Aimag is largely served with electricity from the Russian Federation; local energy capacity is limited. A 110-kilovolt (kV) transmission line links the Russian Federation and Olgiy town in Bayan-Olgiy and Miyangad soum in Hovd. Altantsugts, Buyant, Sagsai, Tsengel, and soums of Bayan-Olgiy, as well as Hovd town, Duut and Erdeneburen soums of Hovd aimag are connected to this line with a 35 kV transmission line. A hydropower plant with 12 megawatt (MW) capacity in Durgun soum in Hovd is expected to be commissioned by the end of 2007. This plant will be connected to Miyangad soum in Hovd by a 220 kV transmission line. Manhan and Uy also have some smaller 200 kW power stations. A 35 kV transmission line connects Uyench and Bulgan soums.

40. Land Use. Agricultural land has been the dominant land use across both aimags, occupying more than 77% of the total land area. Transportation and the transport network occupy 0.2% in Bayan-Olgiy and 0.31% in Hovd (Table 5). The proposed road will follow existing earthen tracks, thereby slightly reducing land use for transportation.

10

Table 5: Land Area by Classification

Bayan-Olgiy Aimag (Phase II area) Hovd Aimag (Phase I area) Land Classification (‘000 ha) (%) (‘000 ha) (%) Agricultural lands 3,520,000 77.10 5,885,0 77.0 Settlements 15,405 0.34 28,405 0.3 Transportation, network 14,059 0.31 21,128 0.2 Forest resource land 22,568 0.49 464,851 6.1 Water resource land 46700 1.02 43,117 0.5 State special use land 947,844 20.74 1,163,642 15.2 Total area 4,566,576 100.00 7,606,038 100.0 ha = hectare. Source: Land management report of Hovd and Bayan-Olgiy aimags, 2005.

41. Tourism. Ecotourism dominates in the region. In 2006, Hovd Aimag had 19 tourist camp sites, visited by a total of 8,247 international and domestic tourists. A recreational center, spa resort, and children’s camp are attractions for several hundred tourists per year along with biological resources.

42. Health Services. In Hovd aimag (the project area), some 14 medical clinics, two inter- soum medical clinics, and six hospitals for families provide basic services to local residents and herders. A hospital in Hovd town plays a major role as a regional hospital to serve patients from the Western Region. In total, the area has 569 hospital beds, 16 private hospitals, and six pharmacies. Some 128 physicians, 11 pharmacists, 235 nurses, and 115 medical assistants work in medical services of the aimag, providing 14 physicians, 12 medical assistants, 38 mid- level medical personnel, and 61 beds per 10,000 people. Bayan-Olgiy aimag (phase II area) has 30 medical clinics with 561 beds; and about 141 physicians, 5 pharmacists, and 392 mid-level medical personnel working in medical services.

43. Noise and Vibration. The project road largely passes through a remote area with almost no settlements and no sensitive receptors. Three areas where noise can affect wildlife are Bodonch Canyon due to possible blasting operations, MNR during construction and KNP during construction.

F. Social and Cultural Resources of the Western Corridor

44. Social Resources. The population of the project area accounts for about 7.32% of the national population. Bayan-Olgiy has a population of 95,758, 28,248 live in the aimag center; the population density is 2.09 per square kilometer. Hovd has a population of 91,687, 32,351 live in the aimag center; the population density is 1.09. Mongols dominate the population in Hovd (82%), while Kazakh are the majority of the population (about 90%) in Bayan-Olgiy.

45. Historical and Cultural Heritage. Human settlement can be traced back in the project area as early as the Paleolithic and Neolithic eras. Alignment avoids all historical and cultural sites, providing a safe distance for their protection. During road operation, explanation boards will be provided for tourists to visit and learn about the sites. The following four types of relics are located near the project alignment, outside of the right-of-way: deer stones, khirigsuur, tomb in Takhilt Valley, and Chinggis Wall or Sartagtain Channel.

46. Deer Stones. These are Mongolian ancient megaliths carved with symbols. To date, archaeologists have recorded around 700 deer stones, of which 550 are located in Mongolia.

11

Deer stones probably were originally erected by Bronze Age nomads around 1000 BC. Along the proposed road are six groups of deer stones; the tallest and biggest deer stone group is located at Bayanzurh bag in Bodonch Canyon.

47. Khirigsuur. These stone mounds are a type of monument found in Bronze Age sites in Mongolia. Built by mobile pastoralists of the Bronze and Iron age, khirigsuurs consist of a stone mound, surrounded by a square or circular fence of surface stones. The khirigsuurs are less studied than the tombs. During the field inspections, many of these ritual monuments were recorded along the road, especially in the Bodonch area.

48. Tomb in Takhilt Valley. The tomb is located in a valley on the southern bank of Khoid River of Mankan soum in Hovd. The site includes more than 200 Hun tombs. Scholar D. Navaan has completed the archeological excavation and found many objects related to the early Hun period.

49. Chinggis Wall or Sartagtain Channel. This is one of the cultural, historical, and archeological heritages that can show the development of cultivation in Mongolia, and the history of ancient states settled in Mongolian territory. This channel dates to 625 to 635 AD or the time of the Chinese Tang Dynasity in Mongolian territory. Since the Sartagtain channel is located along the coast of Khar Us Lake in Hovd (Map), it is protected as part of KNP.

50. Eleven other kinds of cultural relics are found in the Western Corridor: petroglyphs of Bayan-Enger, petroglyphs in Khalzan bulag, Turkic inscriptions of Ereen Kharganat, petroglyph in Tsambagarav, petroglyphs of Hongio River, petroglyphs of Khushuut, petroglyph in Ishgen hill, petroglyphs near to Hovd Town, “San” wall, Turkic inscription in Olon Nuur, and Man stone in Olonnuur.

IV. ALTERNATIVES

51. No-Action Alternative. The no-action alternative would result in continued impediments to travel and transport of people and goods, and a substantial constraint to future improvements in the economy of local communities. Using multitrack earth roads will continue to affect pasture lands, habitats, and flora; and deteriorate air quality with dust. Improving the accessibility of environmentally sensitive protected areas located close to the road corridor may result in increased poaching and transmission of disease. However, the adverse impacts can largely be avoided or mitigated by careful planning and implementation of an environmental management plan (EMP). Accordingly, the no-action alternative is not considered to be a reasonable course of action.

52. Route Location. The Western Road Corridor Project should connect the Russian Federation at Ulaanbaishint and PRC border at Yarant, providing access for two aimag centers, Hovd and Olgiy (Map). Between Yarant and Hovd, only the proposed corridor passing through Bodonch Canyon is feasible. Two canyons are located to the west of Bodonch Canyon, but the terrain is far more difficult as the alignment would pass through the central part of the Mongolian Alty Range. Also, the alignment cannot be set further east to avoid the Altay Range; as such a detour would not meet the project objective.

53. Manhan Nature Reserve. MNR is in the north of Bodoch Canyon (Figure 1). The current multitrack road area occupies the east half of the MNR area; the proposed alignment selected one of the tracks. To the west of MNR is the Altaly Range, where road construction is virtually impossible given the financial capacity of the Project. The east border of

12

MNR contacts KNP with Ramser sites where construction is prohibited. Therefore, the only practical alternative was selected where the alignment bypasses the southern part of MNR as much as possible and crosses the northern part of MNR. In the northern part of MNR near Manhan, the selected alignment will avoid the ancient tomb area (para. 48).

54. Possible environmental impacts were discussed with local and national experts from Government, nongovernment organizations (NGOs) (WWF and World Conservation Society [WCS]), and the general public. The general opinion is that the proposed alignment will not have any significant impact to saiga, provided that mitigation measures are taken. Rather, the Project with proper mitigation measures will have positive impacts on saiga, as the project road will significantly reduce the area of vehicle operation of the current multitrack road area. Public consultation during EIA preparation, and discussions with government officials including MNE and NGOs indicate that they understand the proposed alignment is the only feasible option and are generally positive about the road improvement plan as the paved road will reduce the width of multitrack road area significantly.

55. Location Alternatives. In several sections, alternatives were studied to identify better alignments. Among them, a major route alternative studied for the Project is Har Belchir pass.

56. Har Belchir Pass. Table 6 presents factors for route comparisons in the Har Belchir Pass, near Most. Alternative 1 through Har Belchir Pass is shorter, but traverses more complex terrain at higher altitude than alternative 2 (Figure 2). The alternatives were assessed as almost the same for environmental conditions. Alternative 1 was selected due to engineering considerations.

Table 6: Comparison for Route Alternatives in Har Belchir Pass

Criteria Alternative 1 Alternative 2 Length, km 34 51 Environment No sensitive sites No sensitive sites Land Use Less More for Pasturage Construction Difficulty Virtually the same as Alt. 2 Slightly easier Construction Cost Less due to short distance More than Alt. 1. Maintenance and Operation Slightly more costly Less Conclusion Selected due to less construction cost Alt. = alternative, km = kilometer. Source: TERA International Group, Inc. 2007. Project Preparatory Technical Assistance Final Report Mongolian Western Road Corridor Project. Manila.

13

Figure 2: Alternatives in Har Belchir Pass

Alternative 1 Hilly Area Alternative 2

Plane Area Source: TERA International Group, Inc. 2007. Project Preparatory Technical Assistance Final Report Mongolian Western Road Corridor Project. Manila. Most

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Scoping

57. Main Road. Through scoping, the major negative environmental impacts are identified associated with (i) physical resources: natural hazards (rockfalls, flashfloods, snowstorms), soil erosion, and permafrost; (ii) biological resources: possible impacts to fauna such as interruption of migratory patterns; and to protected areas, physical disturbance of wildlife, and increase in poaching and illegal trade; and (iii) social impacts: minor relocation of stone storage sheds and livestock pens that are easily disassembled in Bodonch Canyon area.

58. Positive impacts are expected on (i) physical resources: improvement of air quality related to dust, less degradation of soil due to erosion; (ii) biological resources: less impact to flora and natural habitats due to construction of asphalt road that utilizes an alignment far narrower than the multitrack alignment (up to 100 meters wide in places); and (iii) economic resources: pastureland regained, contribution to reducing unemployment and economic development of the region.

59. Borrow Pits and Quarries. Four borrow pits are designated for the Project. All four sites are away from rivers or lakes as well as residential areas. All sites are planned with sufficient distance from protected areas; one borrow pit is planned about 10 km south of MNR, which is the closest borrow pit planned to any protected area. Adverse environmental impacts expected are soil erosion and surface vegetation in the site.

60. Maintenance Centers and Rest Areas. The current road maintenance capability in the project area is inadequate to cover increasing requirements for service of the road due to its relative isolation and low road network density. To remedy this, road maintenance centers will be established along the proposed project road approximately every 100 km. The maintenance centers will be located near towns or villages in Bulgan soum, Baga Ulaan Pass, and Manhan soum. As the project area has abundant space, existence of maintenance centers will cause no adverse impacts on people in the community. Also, for safe travel for road users, rest areas will be provided at about 50 km intervals (half of them are planned adjacent to the maintenance centers), providing a parking lot and garbage bins. Environmental impacts associated with

14 these facilities will be waste from maintenance activities, which will be easily handled by each community’s normal solid waste management system.

B. Measures before Construction

61. A topographic and environmental survey will be organized in the pre-detailed-design stage for sensitive environmental areas. The survey will be for flora, fauna, protected areas, permafrost, and archeological heritage. Another survey will be organized by the departments of special protected area of Olgiy and Hovd aimag governments during the pre-detailed-design phases to identify wildlife migration routes. Terms of reference for the survey are in Appendix 1. After the detailed design, stakeholders’ views on design will be learned through public consultation for sensitive sites, such as MNR, sections near IBA and cultural relics, residential areas, and any sections near water bodies. Provisions for the protection of the environment are included in the EMP, which specifies the provision of mitigation measures and good management practices. Civil works contracts will include contractors’ responsibilities specified in the EMP.

C. Physical Environment

1. Topographic Characteristics and Soils

62. Impacts of the Project on land will be positive due to reduced land degradation by diversion of traffic from earth tracks to a hard surface road. Provided erosion prevention measures during construction and operation are taken, no substantial adverse impacts to soil are foreseen. No contamination of soil is foreseen. No significant environmental impacts to soil are anticipated during operation of the road. No mitigation actions related to potential loss of agricultural soil are warranted. No mitigation actions related to contamination of soil are warranted. Degradation of ice-reach permafrost due to natural causes (global warming) or anthropogenic activities (road construction) can trigger a process called thermokarst. Activities such as construction of roads and disturbance of vegetation cover in permafrost areas can severely affect the topography leading to subsidence and disruption of engineering structures, and modification of drainage patterns.

63. Civil works contracts will contain provisions to avoid adverse impacts due to altered road embankments, borrow pits, and provisions for quarry operations. Adequate antierosion measures such as minimizing the area of soil clearance, selecting less erodable material, ensuring good compaction, and placing gabions and riprap will be taken. For sections to be cut, the maximum grade for slopes will be designated for each cut to prevent soil erosion.

64. A preventive approach will be followed to avoid permafrost degradation where possible; this means avoiding areas with poor cryogenic and hydrogeological conditions such as with close surface location of ground ice, perennial icing, frost mounds, solifluction-prone slopes, areas with ice-saturated soils, thermokarst areas, and thermokarst lakes. This approach has been used in the Olonnuur area to bypass degraded areas. An additional topographical and environmental survey will be accomplished at the pre-detailed-design stage to map sensitive permafrost areas both degraded and with a potential for permafrost thawing with correspondent impacts to infrastructure.

65. Construction practices and mitigation measures to minimize impacts of road construction in permafrost areas have been elaborated in some countries with large northern

15 regions. For example, the Russian Federation5 proposes general engineering measures during construction to enable the stability of road structure in permafrost areas.

66. The Russian measures recommend selecting one of two approaches depending on climatic and permafrost conditions: (i) providing the elevation of the upper boundary of permafrost not lower than the embankment bed and keeping it at this level throughout road operation (designed condition of soil in bed—frozen), and (ii) enabling soils in the embankment bed to be thawed during road operation considering allowable subsidence of road pavement. As for the requirements for material for the roadbed, the construction regulations recommend applying coarsely clastic rock, sand, and clay soils in thawed state; clay soils should meet the requirements specified in the Russian measures.

67. For borrow pits and quarries, allowable maximum grade will be set for each site to prevent soil erosion. After the use of the sites, the ground will be leveled and compacted to prevent deterioration of the land. Civil works contract will prohibit using borrow pits and quarries other than designated sites. The civil work contract will include soil erosion prevention measures.

2. Climate and Air Quality

68. Likely moderate, temporary air quality impacts during construction of the Project can be anticipated due to fugitive dust generation. Minor increases in the level of nitrogen oxide (NOx) and sulfur oxide (SOx) from construction equipment are expected. No significant environmental impacts on air quality are anticipated during operation of the road. Moreover, the improved road will reduce dust emissions caused by driving on the earth tracks. No significant air quality impacts warranting mitigating actions during operation are anticipated.

69. Civil works contracts will contain provisions to avoid adverse impacts on air quality, such as trucks carrying earth, sand, or stone will be covered with tarps to avoid spilling; operators will be required to install emission controls. Routine air quality monitoring will be required in areas of high potential impact (such as asphalt plants) during the life of the Project.

3. Surface and Groundwater Hydrology

70. No impacts on water quality or the availability of water for domestic or agricultural use will occur except for Bodonch Canyon. Construction activities may temporarily impact on the water quality of the river adjacent to the road. As groundwater in the project area is relatively deep, no impacts on groundwater resources are anticipated during either construction or operation of the Project. No wells or hand pumps within the proposed construction zones are located in the area of potential impact. No net loss of water access points will result. However, fuel and chemical substances used for road construction could contaminate groundwater and surface water if they are not properly stored and disposed.

71. During detailed design, the drainage system will be designed to avoid any water pollution during operation. Detailed design near any water body will be the subject of consultation with the stakeholders before construction. Mitigation measures for minimizing construction impact should be considered for implementation during road maintenance, especially during major road maintenance. Civil works contracts will contain provisions to avoid

5 Departmental Construction Regulations of Russian Federation VSN 84-89. 1990. Surveying, Designing and Construction of Roads in Permafrost Areas. Moscow.

16 adverse impacts on water quality, including developing and implementing a spill management plan.

72. During construction, impacts on water quality will be caused mainly by bridge construction, runoff from unstable earthworks, vehicles and equipment maintenance and cleaning, as well as activities associated with construction camps (e.g., sewage and waste disposal). One section of the alignment is near the river in Bodonch Canyon, where surface water could be contaminated from slurries from bridge and culvert construction, particularly during drilling and grouting. Surface water or groundwater may be contaminated by improper utilization or storage of construction materials that are toxic or hazardous, such as chemicals or petroleum products. The sewage from work camps and construction wastewater will affect the river. Improper operation of borrow and spoil pits will also impact water quality.

73. To protect ground and surface water, measures will include the following: (i) slurries from bridge and culvert construction will be stored in tanks, and be dried before disposal at designated sites; (ii) toxic and hazardous material will be managed in accordance with relevant regulations; and (iii) sewage from construction work camps will be discarded where the groundwater is deep enough to prevent groundwater pollution.

4. Noise

74. Noise is not a significant problem along the route. However, some increases in noise will be experienced during construction. Potential serious noise pollutant will be generated from blasting at Bodonch Canyon. Noise impacts during construction will be mitigated through the use of source controls, site controls, and time and activity constraints. Although few people live in Bodonch Canyon, blasting will be carried out only with the permission of the construction chief engineer, using a preestablished schedule that will be made available to surrounding communities.

5. Flora

75. No threatened or endangered flora species are located within the right-of-way. No adverse impacts to such species are likely to occur due to construction activities. Plant species present within the right-of-way are native species, which are highly tolerant of grazing, compaction, and other physical disturbances. Moreover, construction of the paved road will have moderate positive impact on flora by excluding the use of multiple earth tracks that affect flora.

6. Fauna

76. Habitat Loss and Wildlife Migration Patterns. No significant habitat loss is anticipated; moreover, habitat gain is anticipated as a result of construction of an asphalt road instead of the multitrack road area throughout the width of the alignment. Experts of the Strictly Protected Area Administration Department in Bayan-Olgiy, WCS, and WWF Mongolia Program Office identified potential wildlife crossing zones.

77. Discussions with experts of strictly protected area administration departments in Ulaanbaatar and Bayan-Olgiy, WCS, and WWF, and observations during field trips provide evidence that the magnitude of adverse impacts to wildlife patterns will likely be insignificant because (i) although the traffic volume is presently low, the existing alignment is multiple earthen tracks with widths up to 500 m, which cause disturbance to a larger area than the

17 paved road to be constructed; (ii) the projected volume of traffic is quite low, less than 700 vehicles per day by 2013 and a bit more than 2000 by 2022; such traffic intensity will have only minor effects on fauna and migration patterns; and (iii) construction activity will be short-term, mitigation measures will be implemented, and no substantial negative impacts are anticipated.

78. Poaching presents a threat to wildlife in the project area along with natural factors, such as unfavorable weather conditions (severe winters and summer droughts) and food shortage. The WWF representative in Mongolia noted that the network of poachers and illegal wildlife traders in the project area has been terminated. The activity of this network was weakened by a new WWF project aimed at conservation of the Mongolian saiga antelope. Currently WWF supports eight rangers equipped with radio-communication responsible for saiga conservation. The rangers work in close contact with two antipoaching brigades also supported by WWF, whose duties include control of poaching. Nevertheless, high demand (the assessment is between 6,000 and 10,000 kg of horn per year) and ever-increasing prices for saiga horn in the PRC, high poverty in saiga habitat regions, and limited resources in combating poaching and smuggling, when combined with enhanced road accessibility to saiga populations, create potential for adverse impacts. The customs officials at the Mongolia-PRC and Mongolia-Russian Federation borders report no illegal trade cases over many years.

79. Bulgan River. Two ecologically sensitive areas are located on the Bulgan River: a nature reserve and an IBA. Both these areas are located within sections where the road is already paved; the Project will provide road signs.

80. Bodonch Canyon. Potential impacts on fauna in Bodonch Canyon may be linked to construction activities. Intensive cut and fill and blasting operations will make this site a source of physical disturbance for wildlife. Proper construction plans and implementation of the EMP by the civil works contractor will minimize adverse impacts.

81. Manhan Nature Reserve. According to the Academy of Science of Mongolia and WWF data, approximately 15–17 saiga inhabit the MNR. They have no clear population range, and the boundaries of the reserve are a matter of convention. During recent years, the species is reported to have been migrating to Dorgon Khuren Steppe. To define the range of saiga, WCS is currently conducting studies of the Manhan and Sharga populations using GPS collars. No significant impacts on the population are anticipated during project construction and operation, provided proper antipoaching measures are taken. Construction impacts will be temporary and confined to the construction impact area. Operation impacts will be insignificant due to the low volume of traffic.

82. Mitigation for Habitat Fragmentation and Wildlife Migration Patterns. A number of prevention and mitigation strategies have been considered to reduce habitat fragmentation and avoid wildlife migration patterns.

83. Wildlife overpasses are an effective, but expensive solution that is likely unsuitable for the purposes of the Project, due to its low cost-benefit ratio and lack of detailed information about wildlife migratory patterns and behavior of animals.

84. Wildlife underpasses are a less effective, but less costly solution when compared with overpasses. The efficiency of underpasses for the Project was questioned by WWF and WCS during project consultations. The projected relatively low volume of traffic during the first 10–15 years of the road operation will likely make underpasses inefficient. Additional studies as part of

18 the EMP will be required with regard to migratory routes and behavior of wildlife in the project area.

85. At-grade crossings are an inexpensive alternative to other wildlife crossing structures, such as wildlife pipes or culverts and wildlife underpasses or overpasses. They are typically recommended for low traffic volumes. The at-grade crossing solution was discussed with WWF, WCS, and MNE, but was found to be impractical.

86. Wildlife warning reflectors are effective at night and on roads with low traffic volume. Wildlife reflectors provide an inexpensive solution when compared with artificial wildlife corridors. They do not reflect light back to a driver, are activated only when a vehicle is approaching, are simple in installation and maintenance, and are suitable for most terrain.

87. Thus, overpasses, underpasses, and at-grade crossings were assessed as expensive or potentially ineffective structures for the Project, at least in the initial stage of project operation. The projected volume of traffic will be low enough not to recommend these measures. For example, Recommendations on Environment Protection Measures for Highways and Bridges of the Russian Federation (1995) suggests installation of wildlife fencing and corridors in cases where traffic volume exceeds 2,000 vehicles per day—a traffic volume that will be reached on the project road after 2020. However, sufficient information about wildlife corridor locations and behavior of animals is currently not available. Therefore, the proposed mitigation measures are as follows:

(i) Warning signs and wildlife reflectors will be installed along the migration route for the initial stage of project operation. (ii) Capacity building will be provided for the administrations of strictly protected areas in Hovd and Bayan-Olgiy aimags. They will be responsible for collecting additional information on wildlife migration routes and behavior of animals to provide recommendations, in close cooperation with WWF and WCS, on feasible mitigation measures when the traffic increases. (iii) As traffic volume increase, the database should be sufficient to provide a framework to assess whether additional mitigation measures (e.g., overpasses, underpasses, at-grade crossings) are warranted.

88. Antipoaching Measures. Local environmental protection authorities and international organizations are making a major effort to control poaching in the project area. However, their potential is still limited. Improved accessibility as a result of road construction will require additional measures. The mitigation measures will include two major options:

(i) Strengthen antipoaching units. This task is currently addressed by WWF with assistance from other NGOs. (ii) Prevent illegal trade. The capacity of customs at the Mongolia-Russian Federation border and especially the Mongolia-PRC border should be strengthened to not allow poachers and illegal traders to smuggle saiga horns, skins of rare animals, and similar articles. The training course for customs and border officers should be organized as a supplement to the Convention on the International Trade of Endangered Species (CITES) and include such issues as the saiga horn illegal market, identification of saiga horns, identification and prosecution of illegal traders, and creation of awareness.

19

89. Impact on Protected Natural Areas. Several protected areas may be directly or indirectly affected by the Project. In the instances of MNR, where the alignment passes, direct and indirect impacts should be considered. Although the Bulgan River Natural Reserve and Bulgan River IBA are located close to the project area, they will not be considered in the present report as their corresponding road sections are already paved. However, the Bulgan River related protected areas will be considered for indirect and cumulative impacts during operation. Site-specific considerations are discussed in following paragraphs.

90. Khar Us Nuur National Park. Currently, numerous earth tracks can be observed in the KNP conservation zone where road construction activities are prohibited by the Law on Special Protected Areas. KNP specialists and MNE experts predict increased environmental pressure on the lake if road traffic increases. Therefore, the proposed alignment was moved 1.5 km westward from the existing main track to set the alignment away from the KNP tourist zone.

91. Manhan Nature Reserve. The existing road crosses MNR, which protects a population of Mongolian saiga antelope, in two places. The alignment cannot be rerouted to the east, as MNR connects with KNP. Also, no practical option is available to bypass MNR from the west from engineering and financial viewpoints. The Law on Special Protected Areas does not prohibit road improvement with proper mitigative measures for the reserve. As a result of the road improvement, the current multitrack road area will be reduced to one strip of paved road, with fewer impacts on the Mongolian saiga antelope than that of current traffic.

92. No substantial impacts on Mongolian saiga antelope are anticipated as a result of the road construction and operation. Routine procedure calls for MRTT to inform MNE about the activity; MNE will then determine if further actions are warranted.

93. Bulgan River IBA and Bulgan River Nature Reserve. Since this road section is already paved, only impacts during road operation will be considered. No considerable direct or indirect impacts are anticipated on the Bulgan River IBA due to low volume of traffic, seasonal character of bird nesting, and relatively large distance between the road and the IBA. Monitoring of the Bulgan River Nature Reserve will be required during road operation to assess impacts on the Asian beaver.

94. Litter by Road Users. Along the current road, road users litter and deteriorate the surrounding area. Increased traffic due to improved road conditions will intensify the issue. To mitigate this, rest areas installed at about 50 km interval will provide garbage bins that will be cleared periodically by maintenance center staff. The staff will also collect garbage littered along the road during operation as part of their road maintenance activities. Disposal of the collected waste will follow local community waste management practice. If a community’s waste management capacity is insufficient to handle additional waste from the project road (although the traffic volume expected in the near future is insignificant), the local government supported by the aimag and MRTT will increase its capacity.

D. Socioeconomic Impacts

95. Relocation. With the proposed alignment and a 50-m wide corridor of influence, about nine households may have stone walls of storage sheds and livestock pens affected. These are herder families that utilize these structures as they shift from one grazing area to another. None of the structures are within the 16 m road width. No houses or house plots are within the corridor of influence. The stone structures can be disassembled and rebuilt further back from the alignment. Detailed design will avoid any current permanent structures along the alignment.

20

Communities along the road will be consulted after the detailed design so that any unexpected influence on the people can be detected before construction. If an unexpected influence on the people along the road is detected during construction, any people or group of people affected by temporarily or permanent land acquisition and resettlement will be compensated according to ADB guidelines and procedures. Compensation will be based on an assessment by an independent valuation company hired by the governor of Hovd Aimag. The potentially affected are in Most and Altai soums in the vicinity of Bodonch Canyon. Maintenance centers and rest areas will be located near communities, but outside of them, so that the facilities do not impact the communities.

96. Nontransport Infrastructure. The Project will have no direct impact on area water supply systems, area sewerage systems, or area energy systems. Potential waste disposal impacts could occur due to the improper disposal of construction waste, waste oil and solvents, and human waste from construction camps. Contracts will contain provisions requiring preconstruction monitoring of existing water quality to provide a baseline for the measurement of impacts during construction. Routine water quality monitoring will also be required in areas of high potential impact during the life of the Project. Coordination with concerned officials will be required for energy systems. Contacts for the Project will include enforceable provisions for the proper disposal of waste.

97. Transport Infrastructure. Some impact to road transport will occur during construction due to detours and traffic inconveniences. Following construction, the primary transport impact of the Project will be improved performance of the transport sector and greatly facilitated flow of traffic, goods, and travelers. Contracts will specify that care must be taken during construction to ensure that traffic disruptions are minimized.

98. Historical and Cultural Heritage. Some impacts can occur during construction related to archeological and cultural heritage. The edge of the right-of-way is close (15–20 m) to some archeological sites in the Bodonch Canyon area, and near Khar Us Lake, which could possibly be encountered during the earthworks processes. A detailed topographical and environmental survey of environmentally sensitive areas (including archeological sites) will be conducted in the pre-detailed-design phase. The selected road alignment in these sensitive areas will bypass these archaeological sites. The civil works contractor will prepare and implement a cultural heritage management plan to manage any sites that may be encountered during construction.

99. Health Issues. No significant impacts on air quality and sensitive noise receptors, and consequently public health are anticipated. The construction of the paved road will contribute to decreasing dust concentrations in the air. No contamination of local water supplies is anticipated. Human health risks associated with the Project during construction or operation may include facilitation of the transmission of disease, contamination of local water supplies, decreased air quality, and noise pollution. Contract provisions include ensuring that awareness programs regarding HIV/AIDS and sexually transmitted infections is incorporated in all project bid documents. Contract specifications will include avoiding contamination of local water supplies and controlling air and noise pollution.

100. Safety. The upgraded road will allow for increased travel speeds, which generally increase the possibility of accidents and fatalities. Recommendations include introducing engineering to reduce the likelihood of accidents, educating road users on the risks of high speeds, and enforcing traffic laws. The road is already being engineered for accident prevention; warning signs and road markers will be used as appropriate.

21

101. Cumulative Impacts. Cumulative and induced impacts identified are associated with the development of the mining industry and tourism. Synergistic impacts of global warming and anthropogenic effects to permafrost areas (such as road construction activities) can pose risks of accelerated permafrost thawing and development of thermokarst processes. Adverse impacts associated with the mining industry and tourism will be mitigated by strict application of the environment assessment process for the development of any physical change in the environment.

E. Possible Change in Alignment

102. If the alignment must be changed, the following measures will be taken: (i) For a minor deviation in the alignment, the environmental design engineer will propose mitigation measures and incorporate these into the detailed design drawings. (ii) For a major deviation that may cause significant environmental impacts or affect additional people, the project implementation unit (PIU) will conduct additional environmental assessment, including public consultation. The revised EIA will be submitted to MNE for approval, following government procedures. MRTT, in consultation with ADB, will determine whether a deviation is minor or major.

VI. ECONOMIC ASSESSMENT

103. Environmental Benefits. Environmental benefits associated with the Project are related mostly to regaining pastureland, decreasing the occurrence of erosion, reducing dust and noise, decreasing the number of vehicle breakdowns, decreasing pollution of rivers due to avoidance of direct crossings of watercourses, and reducing vehicle fuel use and emissions.

104. Table 7 provides an assessment of the amount of land (pastureland and protected land) regained as a result of the elimination of earth tracks. In total, the estimated amount of land to be regained is 2,100 ha.

Table 7: Assessment of Land Regained with Elimination of Multitrack

Estimated Average Width Land Total Land

Length Average Number of All Tracks Regained Regained, Section (km) of Tracks (m) (ha/km) (ha) Bodonch-Manhan 70 20 100 10 700 MNR 40 70 350 35 1,400 Total 2,100 ha = hectare, km = kilometer, m = meter, MNR = Manhan Nature Reserve. Note: With the assumption that the width of track is 5 m. Source: TERA International Group, Inc. 2007. Project Preparatory Technical Assistance Final Report Mongolian Western Road Corridor Project. Manila.

105. The number of vehicle breakdowns occurring along the project road is expected to decrease as a result of improved road conditions. The specific quantification of this benefit is difficult, however, due to lack of data.

106. Improvements in vehicle emissions and fuel consumption per vehicle are expected as a result of improving the physical characteristics of road surface and road geometry. Quantification of these benefits is difficult at the present time.

22

107. Environmental Costs. Table 8 summarizes the environmental costs of the Project. The costs include mitigation measures, monitoring, collection of detailed information, and capacity building.

Table 8: Environmental Costs

Item Quantity Unit Cost ($) Cost ($) A. Mitigation 1. Dust and moisture control (days) 360 500 180,000 2. Drifting snow fence (meters) 9,400 8.2 38,540 3. Rockfall retaining wall (meters) 1,750 187 327,250 4. Sanitization at construction camps Lump sum 25,000 5. Reflective road studs (wildlife warning reflectors) 200,000 50 5,000 (kilometers) 6. Air pollution control equipment Lump sum 50,000 7. Blasting mats Lump sum 20,000 8. Protection of drinking water sources Lump sum 1,000 9. Solid waste management Lump sum 30,000 10. Detailed EIA by local company Lump sum 10,000 Subtotal (A) 881,790 B. Monitoring 1. Laboratory and field monitoring equipment Air quality measurement Lump sum 30,000 Noise measurement Lump sum 15,000 Water quality measurement Lump sum 40,000 2. Ecological monitoring (Administration of SPA) 80,000 Lump sum (equipment + vehicles) Subtotal (B) 165,000 C. Collection of Detailed Information 1. Topographical environmental survey Lump sum 100,000 2. Public consultation on detailed design Lump sum 10,000 3. Grievances Lump sum 25,000 Subtotal (C) 135,000 D. Capacity Building Workshops for custom/border officers Lump sum 20,000 Subtotal (D) 20,000 Total 1,201,790 EIA = environmental impact assessment, SPA = strictly protected area. Source: Asian Development Bank estimates.

108. The environmental protection cost, $1.2 million, is only 1.1% of the total cost of $112 million. Although the environmental benefits are not quantified, the Project’s environmental benefits outweigh its environmental costs. Also, the Project’s net present value is $49.5 million, calculated taking into account all environmental costs. Therefore, the Project is viable in terms of economic analysis.

VII. ENVIRONMENTAL MANAGEMENT PLAN

109. Environmental Management Plan. Appendix 2 presents the EMP, which identifies feasible and cost-effective measures to be taken to reduce potentially significant negative impacts to acceptable levels. This EMP is site-specific, and focuses on the road sections to be

23 developed by the Project. Additionally, the EMP contains indirect environmental impacts and corresponding mitigation measures. The contractors will be responsible for preparing a more comprehensive EMP based on this EMP. Before construction activities commence, the contractors will prepare and submit proposals and method statements consistent with the EMP to the project implementation unit (PIU) for review and approval. These proposals will include quarry and borrow pit management plan, spill management plan, construction camp management plan, waste management plan, reinstatement and revegetation management plan, cultural heritage management plan, and bridge construction method statements.

110. A program of institutional strengthening and training will be needed through the provision of on-site training, procurement of laboratory equipment and supplies, and workshops. In additional, given future road development projects and large areas of environmentally sensitive areas and ecological resources in Mongolia, the capacity of the Road Supervision Research Center (RSRC) should be strengthened.

111. The time frame for project implementation is provided for three aspects: mitigation, monitoring, and capacity development in Appendix 3.

112. Institutional Arrangements. Responsibility for the Project’s environmental issues will be as follows:

(i) MRTT will be the Executing Agency for the Project. (ii) The steering committee will comprise representatives of different ministries and agencies such as the Ministry of Health, MNE, and MRTT; and will be chaired by the state secretary of MRTT. (iii) The PIU will reside within RSRC with on-site offices in Hovd and Olgiy. The PIU will be responsible for overall contract administration and day-to-day project supervision including environmental management. Environment officers will be appointed within the PIU to be responsible for ensuring the EMP, including monitoring requirements, are implemented effectively. (iv) Supervision consulting engineers will assist the PIU in carrying out its responsibilities, including instrumental environmental monitoring of the Project.

113. Construction works will be carried out by a contractor who will be responsible for implementing the mitigation and monitoring measures defined in the EMP. Civil works contracts, in general and in technical specifications, will include environmental protection provisions described in the EMP.

114. Environmental Monitoring. The monitoring plan for the Project is summarized in Appendix 4. Monitoring activities include site supervision; verification of permits; monitoring environmental impacts such as noise, air, and water pollution; as well as wildlife migration route monitoring.

115. A training program on environmental management will cover aspects of environmental monitoring for different matrices, protected area issues, wildlife management, and other issues. 116. Monitoring Equipment. Basic environmental monitoring equipment will be procured as part of building RSRC capacity.

24

117. Workshops. A training program for customs and border officers, rangers, and antipoaching brigades on illegal wildlife trade will cover issues of wildlife management, poaching, and illegal trade. This training program is anticipated to last for approximately 1 month. The PIU, MNE, and State Professional Inspection Agency will regularly undertake joint inspections of the environmental aspects of the Project.

VIII. PUBLIC CONSULTATION AND DISCLOSURE

118. Two rounds of stakeholder workshops were organized: during the early stages of EIA field work and when the draft EIA report was available. The first round of consultations was organized in Hovd and Bayan-Olgiy aimags on 24 and 27 March 2007, respectively. About 40 people actively participated in the workshops. The second round was organized in Hovd and Bayan-Olgiy from 26 to 30 May 2007 (Bulgan, 26 May; Most, 28 May; Manham, 28 May; Hovd town, 29 May; Olgiy, 31 May; and Tsagaannuur, 30 May) after draft versions of EIA reports were prepared and the draft SEIA report was distributed to the stakeholders in Hovd and Olgiy. In total about 280 people participated in the second round of workshops.

119. First Round. Representatives of local government officials; government environmental, infrastructure, and inspection organizations; NGOs; representatives of universities; and the general public attended the Hovd and Olgiy workshops. Discussions took place on a range of issues associated with the proposed road alignment, alternatives and their lengths, construction priority of the road sections, EIA, current condition of quarries and their rehabilitation, special protected areas along the road, and migratory routes of ibex and wild sheep. Twenty-six written responses were received from the participants. Discussions and written feedback included comments on socioeconomic benefits of the road (reduction of unemployment, saving money and time, development of tourism and other infrastructure), trade links with neighboring countries, special protected areas along the road, flora (tree planting along the road), fauna (migratory routes of wildlife, poaching), and land degradation (current condition of quarries and their rehabilitation).

120. A separate set of consultations was organized with MNE officers, the local administration of strictly protected areas, experts of local and Ulaanbaatar offices of the Altai-Sayan Eco-region project, local environmental authorities, specialists of WWF and WCS in Mongolia, local governors, and environmental inspectors at every soum along the road. Baseline information on flora, fauna, and archeological findings, as well as other comments on potential environmental impacts of the road during design, construction, and operation were recorded. Sensitivity of ecological resources, possible migration routes of wildlife, and correspondent prevention/mitigation measures were discussed. Additionally, 38 local people were interviewed along the road. Firsthand information about wildlife and its habitats and migration routes, archeological and cultural heritage, and other environmental resources was obtained. All of those consulted supported construction of the road.

121. Second Round. Representatives of the local government; environmental, infrastructure, and inspection organizations; NGOs such as WWF and Altai-Sayan Eco-region project; and representatives of universities attended the Hovd and Olgiy workshops. The topics raised during workshop discussions related to socioeconomic benefits of the road, access roads, environmental impacts and mitigation (MNR and census of the population of Mongolian saiga antelope tatarica, a detailed survey in order not to affect endangered species in nature reserves and national parks, building a road with a lower embankment within MNR to enable saiga to cross it safely), archeological and historical sites, and the need for a detailed EIA before commencing civil work. Recommendations were provided for the draft EIA report.

25

122. A separate set of consultations (at Yarant border, Takeshiken border, Bulgan soum, Most soum, Manhan soum, Hovd town, Olgiy town, Ulaanbaishint border, Tsagaannuur village) were organized in addition to the meetings in Hovd and Olgiy aimags. During the meetings at the Mongolia-PRC and Mongolia-Russian Federation borders, custom officers were asked to share their opinion about illegal poaching and trade. The response was that cases of poaching and illegal trade have not been registered over the last several years. During all of these meetings the major goal was to gather public opinion about negative environmental impacts and mitigation measures. The great bulk of responses were “No environmental impacts,” with the exception of Tsangaannuur village. During the meeting in Tsagaannuur, 6 the residents mentioned that the only source of the potable water for the village may be affected by construction and should be considered. They pointed out that the hydrological conditions may be modified as a result of construction activities and amount and quality of water may decrease.

IX. CONCLUSION

123. A comprehensive study of the environmental aspects of the Project including consultations with government agencies, NGOs, and the general public was conducted. The Project will have some negative, positive, direct, and indirect environmental impacts on the physical, ecological, and socioeconomic environment during road construction and operation. Despite the road’s alignment through an environmentally sensitive area, no serious negative environmental impacts are anticipated. The road corridor already exists and this is an upgrading project. Temporary environmental impacts are anticipated during construction, although proper planning will minimize them. Good engineering design and implementation of the proposed mitigation measures and monitoring programs and will not pose any threat to the environment.

6 Tsangaanuur village is in the phase II project area.

26 Appendix 1

TERMS OF REFERENCE FOR THE TOPOGRAPHICAL AND ENVIRONMENTAL SURVEY

1. Purpose. Conduct a detailed topographical survey of environmentally sensitive areas, assess potential environmental impacts for local alternatives, and propose solutions that prevent or minimize environmental impacts on sensitive areas including optimized alignment and mitigation measures.

2. Subordination and Coordination. The survey team will report to the project implementation unit. Responsibilities will be coordinated with the departments of strictly protected areas (SPAs) in Hovd and Olgiy that will be involved in surveying migratory routes.

3. Budget. The budget of this survey is $100,000 for field trips, office expenses, global information system (GIS) software, and remuneration.

4. Reference Documents. The environmental impact assessment (EIA) report, preliminary EIA, and summary environmental impact assessment (SEIA) should be referenced as well as these terms of reference.

5. Report Stage and Duration. Reports should be provided before the detailed design. The survey will be conducted over 2–3 months during May–August for biological components (flora and fauna) and permafrost. The range is wider for archeological and cultural resources (March–October).

6. Composition of the Survey Team. The survey team will comprise the following expertise:

(i) team leader (international), (ii) topographer(s), (iii) specialist on flora (local), (iv) specialist on fauna with knowledge of ornithology (local), (v) specialist on protected areas (local), (vi) specialist on permafrost (local), (vii) specialist on archeological and cultural resources (local), and (viii) computer specialist with knowledge of GIS.

7. Proposed Locations. The detailed survey area should be determined by referring to the EIA and SEIA and include:

(i) Bodonch Canyon (flora, fauna, and archeology), (ii) Manhan area (protected areas and fauna), (iii) Olonuur area (permafrost, flora, and fauna), and (iv) Tolbo Lake (fauna and protected area).

8. Procedure. The survey will be carried out in following steps:

(i) Identify environmentally sensitive locations along the road corridor and its modification (if necessary). (ii) Define the boundaries of the environmentally sensitive area and make a detailed survey of environmentally sensitive resources. Present the resources on a large- scale map (preferably as GIS layers) in electronic format with GPS coordinates.

Appendix 1 27

(iii) Discuss potential impacts with regard to local alternative alignments and possible mitigation measures. (iv) Map and document the optimal road alignment in electronic and paper formats and provide to the project implementation unit.

9. The following environmental issues will be surveyed:

(i) Flora. Identify endangered and rare flora located in environmentally sensitive areas. Propose mitigation measures and contribute to a discussion about optimal alignment.

(ii) Fauna. Identify endangered and rare fauna inhabiting environmentally sensitive areas. Propose mitigation measures and contribute to a discussion about optimal alignment. Coordination with other stakeholders such as SPA departments, WWF, and WCS is required.

(iii) Protected Areas. In cooperation with the topographer, identify exact boundaries of the protected areas and propose alignments minimizing conflicts with actual legislation on protected areas. Coordination is required with fauna and flora specialists and SPA departments.

(iv) Permafrost. Identify the less environmentally sensitive alignment in permafrost area.

(v) Archeology and History. Together with the topographer, map all known and poorly studied archeological sites and contribute to the discussion about the optimal alignment of the road.

(vi) Together with the topographer and thematic specialists, develop corresponding GIS layers that can be used for modeling and optimization purposes.

10. Reporting will include the following:

(i) electronic and paper maps with finally staked alignment; (ii) GIS layers with information about flora, fauna, protected areas, permafrost, and archeological heritage as GIS layers; and (iii) a report documenting the methods used, work accomplished, and findings.

28 ENVIRONMENTAL MANAGEMENT PLAN Environmental Estimated Responsibility Mitigation Measures Location Time Frame Issue Cost, $ Implementation Supervision Appendix 2 A. Detailed Design Phase 1. Topographical and Environmental Survey • Survey will be carried out by a Road Topographical team of local environmental Throughout the alignment Supervision survey of all Research Center specialists in flora, fauna, Before detailed Detailed design environmentally 100,000 Particularly for Bodonch, (RSRC) and protected areas, permafrost, and design consultants sensitive areas on archeological and historical Manhan, and other project the large scale map heritage; and focused on migration route areas implementation environmentally sensitive areas. unit (PIU) 2. State Environmental Review • Detailed environmental impact Detailed assessment should be completed Before detailed Mongolian company environmental 10,000 Project area MNE by Mongolian company authorized design authorized by MNE impact assessment by Ministry of Nature and Environment (MNE). 3. Fauna Departments of strictly protected • Build capacity of administrations of area (SPA) in Hovd Habitat Bulgan River Nature Pre-detailed- strictly protected areas in Hovd and Olgiy, in fragmentation and Reserve design, detailed and Olgiy. 100,000 coordination with RSRC wildlife corridor Bodonch Canyon, design, and World Wild Fund for restriction • Study/monitor wildlife routes and Manhan Nature Reserve operation animal behavior. Nature (WWF) and World Conservation Society (WCS) 4. HIV/AIDS/STIs,a Communicable Diseases, and Human Trafficking Included in Detailed design • Provide awareness raising b HIV/AIDS Project area and campaign for local population. budget construction 5. Public Consultation on the Detailed Design • Conduct public consultations to disclose information on the People’s opinion on detailed design and obtain the Bodonch Canyon Detailed design the detailed design 10,000 Detailed design RSRC/PIU opinions of environmental experts consultants and general public on the detailed design in environmentally sensitive areas and other affected

Environmental Estimated Responsibility Mitigation Measures Location Time Frame Issue Cost, $ Implementation Supervision areas.

6. Possible Change in Alignment • For a minor deviation in the alignment, the environmental design engineer will propose RSRC/PIU mitigation measures and incorporate these into the Ministry of detailed design drawings. Road, • For a major deviation that may Transport and cause significant Tourism (MRTT), in Possible change in environmental impacts or affect Before Detailed design Throughout the alignment consultation alignment additional people, the project construction consultants implementation unit (PIU) will with the Asian conduct additional Development environmental assessment, Bank (ADB), including public consultation. will determine The revised environmental whether a impact assessment report will deviation is be submitted to MNE for minor or major. approval, following government procedures. B. Construction Phase 1. Grievances • Designate an official in charge of MRTT people’s grievance in RSRC and the PIU. • Distribute a leaflet outlining environmental protection

measures and listing grievance Appendix 2 Before Grievances contact points. 25,000 Throughout the alignment RSRC/PIU construction • Provide community leaders with detailed information on grievance management. • Inform nongovernment organizations (NGOs) in the same manner as the community leaders. 29

30 Environmental Estimated Responsibility Mitigation Measures Location Time Frame Issue Cost, $ Implementation Supervision

2. Soil Appendix 2 • Minimize areas of soil clearance. • Select less erodable materials; ensure good compaction, placement of gabions, and riprap particularly around bridges and culverts. • Require stepped embankments for embankments greater than 6 meters. • Separate topsoil from subsoil during excavation works; reuse topsoil as a superficial layer. • Reshape the slope surface by notching, blazing, and pocking to In all sections; Included in enhance seedling survivability. Geotextile-Baga Ulan Construction Soil erosion the main civil Contractor RSRC/PIU Pass in Bodonch area phase • Seed with a fast-growing native works cost species and seed mix immediately and bypass of Hovd town after fill placement. • Stabilize embankment slopes and road cuts by revegetating with grazing resistant plant species. • Complete discharge zones from drainage structures with riprap to reduce erosion when required. • Line down drains/chutes with riprap/masonry or concrete to prevent erosion. • Restrict construction in erosion and flood-prone areas to the dry season. • Design roadbed in embankments. • Construct roadbed of rock, Included in coarsely clastic rock, and sand Construction Permafrost the main civil In permafrost areas Contractor RSRC/PIU soils; and, in case of their phase shortage, clay materials. works cost • Use natural and artificial heat- insulating materials for subgrade,

Environmental Estimated Responsibility Mitigation Measures Location Time Frame Issue Cost, $ Implementation Supervision embankment, and road pavement. • Use nonwoven synthetic materials (geotextile) in subgrade and embankment. • Replace waterlogged soils of seasonally thawing layer and ice- saturated underlying permafrost with coarsely clastic rock and sand soils correspondingly. 3. Natural Hazards • Install rockfall retaining structures. Construction Rockfalls $327,250 Bodonch Canyon Contractor RSRC/PIU • Construction of stone pitching phase • Rockfall warning signs Included in • Install box culverts. Bodonch Canyon, Construction Flashfloods the main civil Contractor RSRC/PIU Manhan-Hovd phase • Provide warning signs. works cost Blowing and drifting Baga Ulaan Pass, Buraat, Construction $38,540 Contractor RSRC/PIU snow • Install earth fencing. Hashaat Pass phase 4. Air Quality • Cover all earthwork vehicles to avoid spillage. • Place material storage site 300 m Construction sites, Construction Generation of dust away from residential areas. $180,000 Contractor RSRC/PIU • Spray water on construction sites asphalt plants phase near sensitive areas and major feeder roads twice a day during the dry season. • Fit existing asphalt batching RSRC/PIU plants/ crushing plants with dust $50,000 for extraction units in compliance with air pollution Emissions from local standards. control construction Construction sites

Regularly maintain and correctly equipment for Construction Appendix 2 vehicles, • (asphalt plants/crushing Contractor operate all vehicles, equipment, asphalt phase equipment, and plants) and machinery used for plants / machinery construction (including the use of crushing dust filters or hoods) throughout plants the project corridor. Monitoring of • Monitor the basic parameters of Construction Construction 30,000 Construction sites RSRC/PIU impacts to air construction emissions near phase Supervising 31

32 Environmental Estimated Responsibility Mitigation Measures Location Time Frame Issue Cost, $ Implementation Supervision quality sources (carbon monoxide, Engineers Appendix 2 nitrogen oxides, sulfur dioxide, particulate matter) 5. Water Issues • Control water flow speed by means of ripraps, dissipation structures, grass, etc. • Construct storm-water drainage Included in Contamination of and retention basins and install a Construction the main civil Construction sites Contractor RSRC water bodies siltation fence (where a phase river/stream is nearby) prior to works cost commencing construction. • Develop and implement (by the contractor) a spill management plan. • Monitor the basic parameters of wastewater and affected water Monitoring of bodies (temperature, suspended Construction Construction impacts on water particle, measure of 40,000 Construction sites supervising RSRC/PIU phase bodies acidity/alkalinity, dissolved oxygen engineers content, chemical oxygen demand, biological oxygen demand, oil products). 6. Fauna Capacity building beginning from the detailed design phase; Contractor, SPA Habitat • Install wildlife reflectors. installation of administrations in fragmentation and • Install warning signs. 200,000 Wildlife migration routes reflectors and Hovd and Olgiy in RSRC/PIU wildlife corridor • Study and monitor wildlife routes signs during coordination with restriction and animal behavior. construction; WWF and WCS maintenance of reflectors during road operation The Construction Illegal poaching • Write clauses into construction restriction will In all sections and post- Contractor RSRC/PIU and hunting contracts to result in immediate firing and prosecution of be included construction

Environmental Estimated Responsibility Mitigation Measures Location Time Frame Issue Cost, $ Implementation Supervision individuals involved in poaching in and illegal trade, hunting, or construction cutting of vegetation. contracts 7. Flora Included in In Bodonch area and • Provide landscaping. Post- Planting trees the main civil areas with favorable Contractor RSRC/PIU construction works cost conditions for trees 8. Noise and Vibration • Conduct blasting operations in RSRC/PIU accordance with Law on Control of Explosives (2004). • Publicly disseminate blasting schedules in areas where residents will be impacted by the blasting noise, including shepherds. Safety • Identify potential structures that measures are may be impacted from blasting included in the main civil Bodonch Canyon and Construction Blasting operations vibration prior to blasting and Contractor monitor during blasting. Implement works cost project quarries phase appropriate safety measures for all 50,000 blasting sites (cuts, rock quarries) (blasting during all blasting activities. mats) • Conduct trial blasts in less sensitive areas for better blast design and identification of potential zone of influence. • Use noise reduction techniques to decrease physical disturbance of wildlife (Bodonch Canyon). • Ensure plants and equipment used in construction strictly conform to Appendix 2 local noise standards. Noise from Included in vehicles, plant, and • Within 200 m of the nearest the main civil Construction Construction sites Contractor RSRC/PIU earthmoving habitation, stop construction work works cost phase equipment such as crushing, concrete mixing and batching, mechanical

compaction, etc., between 2200 33

34 Environmental Estimated Responsibility Mitigation Measures Location Time Frame Issue Cost, $ Implementation Supervision

and 0600 hours throughout the Appendix 2 project corridor, sites temporarily acquired, and all borrow areas. Construction Sensitive construction Construction Monitoring of noise 15,000 supervising RSRC/PIU • Monitor noise in sensitive areas. sites (Bodonch area) phase engineers 9. Historical, Cultural, and Archaeological Heritage • If a historical, cultural, or archaeological relic is encountered during construction, throughout the project corridor, halt all activities RSRC, and implement an established If needed action (notification of soum/district soum/district Encountered during Construction governor, Institute of Archeology, Project area Contractor governor, construction phase and local police). Recommence Institute of works only after appropriate Archeology, and measures have been taken as local police requested by the appropriate authority, and confirmation has been received from them that works may resume. 10. Restoration of Borrow Pits and Quarries After a • Provide a topsoil strip (where Included in • Reinstatement Identified quarries and completion of necessary) and retop soil. the main civil Contractor RSRC/PIU of borrow pits borrow pits along the road construction works cost and quarries • Provide grass for the area. works 11. Construction Camps • Damage of topsoil • Ensure construction camp • Contamination management complies with the related to fuel construction camp management storage and plan. fuelling 40,000 Contractor RSRC/PIU operations • Ensure proper waste management complies with the waste • Sewerage management plan. related contamination • Ensure spill management complies with the spill management plan. • Waste management

Environmental Estimated Responsibility Mitigation Measures Location Time Frame Issue Cost, $ Implementation Supervision • Ensure engineering to reduce the Design, likelihood of accidents. Included in construction, Contractor, local 12. Road Safety road safety In all sections RSRC/PIU • Educate users on the risks of high and operation police budget speeds. phases • Enforce traffic laws. C. Operation Phase • Require contractors to clean up the right-of-way after construction. National Agency of • Install garbage bins in Meteorology Operation Hydrology and 1. Solid waste maintenance centers and service 25,000 In all sections MRTT stations. phase Environmental • Ensure maintenance center staff Monitoring Agency carry out periodic solid waste (NAMHEM) collection at least twice a year. The cost of this equipment is Supervision • Monitor air quality in the proximity to included in Operation consulting 2. Air Quality Hovd NAMHEM towns. air quality phase engineers, monitoring NAMHEM during construction The cost of this equipment is included in 3. Water Quality • Monitor water quality in the NAMHEM NAMHEM proximity of major rivers. water quality monitoring during construction The cost of State this Professional equipment is Inspection 4. Noise and • Monitor noise and vibration in the included in Operation State Professional Agency Appendix 2 Hovd Vibration proximity to towns. noise phase Inspection Agency monitoring during construction 5. Impact on Fauna

Habitat • Maintain wildlife reflectors. $200,000 Wildlife migration routes Capacity Contractor, 35

36 Environmental Estimated Responsibility Mitigation Measures Location Time Frame Issue Cost, $ Implementation Supervision fragmentation and • Provide warning signs. (reflectors) building Administrations of Appendix 2 wildlife corridor beginning SPAs in Hovd and • Study and monitor wildlife routes. restriction during the Olgiy in coordination detailed design with WWF and phase; WCS. installation of reflectors and signs during the construction phase; and maintenance during the operations • Build capacity of customs staff at Mongolia-People’s Republic of Contractor Poaching China borders on antipoaching $20,000 RSRC/PIU and illegal trade (train wildlife Customs custom inspectors and provide equipment) a AIDS = acquired immunodeficiency syndrome, HIV = human immunodeficiency virus, STI = sexually transmitted infection. b Provision for HIV/AIDS prevention campaign for workers will be included in work contracts. Source: TERA International Group, Inc. 2007. Project Preparatory Technical Assistance Final Report Mongolian Western Road Corridor Project. Manila.

Appendix 3 37

IMPLEMENTATION TIME FRAME

Phase Issue Schedule Detailed design • Build capacity of administrations of SPAs in Hovd and Olgiy Training: 2–3 (cars, monitoring equipment). Establish monitoring program times as for migration measures. required • Conduct detailed topographic and ecological survey to warrant detour of environmentally sensitive areas Topographic specifically in Bodonch area, Manhan area (southern part), survey: 1 time Olonuur (permafrost) • Provide training for custom/border officers

Mobilization/ Pre Complete training for PIU and DRMU before the beginning of 1 time construction mobilization phase

During mobilization PIU to review and approve contractor’s method statements 1 time phase and forward them to the relevant DRMU and supervision consulting engineers

During construction Mitigation and monitoring See monitoring plan During construction Reporting: • Contractor to PIU/RSRC Monthly • DRMU to PIU/RSRC Monthly • Traffic Police to PIU/RSRC Monthly • PIU to RSRC Monthly • RSRC to ADB (through MRTT) Semiannually

During operation DRMU to RSRC To be determined

During operation Mitigation, monitoring of air and water quality, wildlife Regularly corridors, efficiency of wildlife reflectors, and warning signs according to monitoring program ADB = Asian Development Bank; DRMU = district road maintenance unit; MRTT = Ministry of Road, Transport and Tourism; PIU = project implementation unit; RSRC = Road Supervision Research Center; SPA = strictly protected area. Source: TERA International Group, Inc. 2007. Project Preparatory Technical Assistance Final Report Mongolian Western Road Corridor Project. Manila.

38 ENVIRONMENTAL MONITORING PLAN Monitoring Location and Frequency of Parameter Measurement Location Time Frame Responsibility Parameters 1. Air Quality A. Construction Phase Construction sites, Construction Construction phase: Appendix 4 Monitoring parameter: TSP Hovd and operation Contractor; Monitoring frequency: 2 times/day Including impact phases Operation phase: NAMHEM Monitoring points: Construction sites and transportation roads monitoring of asphalt B. Operation Phase plants in Hovd Monitoring parameter: TSP, CO, NOx, SO2 Monitoring frequency: 2 times / year Monitoring points: near Hovd and Olgiy C. Monitoring Standard Mongolian standard: MNS 0017-2-3-16:1988 2. Water Quality A. Monitoring Parameters: COD, BOD5, suspended solids, oil products Project Area, Construction Construction phase: B. Monitoring Frequency: specifically Bulgan and operation Contractor; Construction phase: 3 times/day River, Uyench River, phases Operation phase: NAMHEM Operation phase: 2 times/year Bodonch River, Monitoring points (Quantity): Bulgan River (2), Uyench River (1), Bodonch Buyant River, Hovd River (1), Buyant River (2), and Hovd River (3) River, and Khar-Us C. Monitoring Standard Nuur Lake Mongolian standard: MNS 4586:1998 MNS 4943:2000 3. Noise A. Monitoring Frequency Sensitive receptors Construction Construction: Contractor; Construction phase: 1 time/day in settlements: Operation: State Professional Operation phase: 2 times / year Inspection Agency B. Monitoring Points Construction phase: Near sensitive receptors (Uyench, Manhan, and Hovd) Operation phase: Hovd C. Monitoring Standard Mongolian standard: MNS 0012-1-009:1995 4. Fauna A. Monitoring Item In ecologically Before Construction: Contractor; Endangered fauna and its migration patterns. IBAs sensitive project detailed Operation: Administration of B. Monitoring Frequency areas design, SPAs of Hovd and Bayan- Seasonal observations for day and night time detailed Olgiy aimags C. Monitoring Points design, and Wildlife migration routes and IBAs: Bulgan River Nature Reserve, operation Bodonch Canyon, Manhan/Khar-Us Nuur, Tsambagarav National Park phases BOD5 = biological oxygen demand (measured over 5 days), CO = carbon monoxide, COD = chemical oxygen demand, IBA = important bird area, NAMHEM = National Agnency of Meteorology Hydrology and Environmental Monitoring Agency, NOx = nitrogen oxide, SO2 = sulfur dioxide, SPA = strictly protected area, TSP = total suspended particles. Source: TERA International Group, Inc. 2007. Project Preparatory Technical Assistance Final Report Mongolian Western Road Corridor Project. Manila.