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The Tripartite Council of Khanbogd Soum, Umnugovi Aimag Cover Letter to Final Report of MDT and IEP

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The Tripartite Council of Khanbogd Soum, Umnugovi Aimag Cover Letter to Final Report of MDT and IEP The Tripartite Council of Khanbogd soum, Umnugovi aimag Cover Letter to Final Report of MDT and IEP Khanbogd soum Umnugovi aimag Mongolia January 12, 2017 The reports of the socio-economic study of Khanbogd soum herder households and Phase 2 study of cumulative impact of Undai River diversion conducted by the independent experts employed by the Tripartite Council (TPC)1 of Khanbogd soum, Umnugovi aimag, are hereby disclosed to the public. This study was carried out to facilitate the resolution of complaints lodged by Khanbogd soum herders with the Office of the Compliance Advisor Ombudsman (CAO) of the World Bank Group. The purpose of study was to map independently and objectively the changes over the last decade in livelihood and socio-economic conditions of Khanbogd soum herder households, based on information from diverse sources, and subsequently to determine which changes were caused by or attributable to Oyu Tolgoi (OT) company operations. In addition, the study aimed to assess the adequacy of the OT’s compensation programs, cumulative impacts on regional water and pasture resources due to Undai, Khaliv and Dugat River Diversions, and impacts from OT tailings’ storage facility. Multi-Disciplinary Team (MDT) and Independent Experts’ Panel (IEP) carried out the studies in 2016 and submitted the final report to the TPC of Khanbogd Soum in January, 2017. Conclusions provided in the report by MDT and IEP are not the TPC’s position; and the report presents solely independent conclusions and assessments of the independent experts. We notify any interested entities herein that some conclusions of the report are not fully accepted by the parties of TPC. Nonetheless, the Parties of TPC agreed to discuss and implement the recommendations of the report in order to solve the herders’ complaint issues. Any party using this report improperly will be subject to liability in accordance with the relevant laws. Please refer to the following in respect of the report: The Tripartite Council Khanbogd soum Umnugovi aimag 1 TPC (The Tripartite Council), composed of representatives from Khanbogd soum local government, herders’ representation and Oyu Tolgoi company, has been officially established on June 8, 2015, as per Memorandum of Understanding signed with purpose of resolving complaints among the Parties. The Office of the Compliance Advisor Ombudsman (CAO) facilitates the operations of the TPC. The CAO is the independent recourse mechanism for the International Finance Corporation & Multilateral Investment Guarantee Agency the World Bank Group. JANUARY!2017!!!!!! ! ! ! ! ! ! ! ! MULTI'DISCIPLINARY!TEAM!AND! INDEPENDENT!EXPERT!PANEL! JOINT!FACT!FINDING!! ! SUMMARY!OF!THE!EXPERTS’!REPORTS! JSL!CONSULTING!LTD.!! OXFORD,!UK! www.shankleman.com!! ! Multi'Disciplinary!Team!and!Independent!Expert!Panel! Summary!Report! January!2017! ! EXECUTIVE(SUMMARY(...................................................................................................................(1! 1! INTRODUCTION(.......................................................................................................................(2! 1.1! BACKGROUND(..........................................................................................................................(2! 1.2! JOINT(FACT(FINDING((JFF)(..........................................................................................................(2! 1.3! THIS(REPORT(............................................................................................................................(3! 2! EVALUATION(OF(THE(QUALITY(OF(AND(ACCESS(TO(PASTURE(AND(HERD(WATER(.....................(4! 2.1((! SCOPE(OF(THE(EVALUATION(........................................................................................................(4! 2.2! METHODOLOGY(........................................................................................................................(4! 2.3! CONCLUSIONS(..........................................................................................................................(4! 2.3.1! MONITORING!................................................................................................................................!6! 2.3.2! DUST!...........................................................................................................................................!6! 2.3.3! OVERALL!......................................................................................................................................!6! 2.4! (RECOMMENDATIONS(................................................................................................................(6! 3! ANALYSIS(OF(CHANGES(OVER(THE(PAST(DECADE(TO(HERDER(ASSETS(AND(LIVELIHOODS(.........(8! 3.1! SCOPE(....................................................................................................................................(8! 3.2! METHODOLOGY(........................................................................................................................(9! 3.3! CONCLUSIONS(..........................................................................................................................(9! 3.4! RECOMMENDATIONS(...............................................................................................................(10! 4! COMPENSATION(PROGRAMME(REVIEW(................................................................................(10! 4.1! SCOPE(OF(THE(REVIEW(..............................................................................................................(10! 4.2! METHODOLOGY(......................................................................................................................(11! 4.3! CONCLUSIONS(........................................................................................................................(11! 4.4! RECOMMENDATIONS(...............................................................................................................(12! 5! 2ND(PHASE(REPORT:(UNDAI(RIVER(DIVERSION(COMPLAINT(..................................................(13! 5.1(! SCOPE(OF(THE(EVALUATION(......................................................................................................(13! 5.2! METHODOLOGY(......................................................................................................................(13! 5.3! CONCLUSIONS(........................................................................................................................(14! 5.3.1! HYDROLOGY!...............................................................................................................................!14! 5.3.2! SOCIAL!ASSESSMENT!.....................................................................................................................!14! 5.(4((! RECOMMENDATIONS(.............................................................................................................(14! 5.4.1! HYDROLOGY!...............................................................................................................................!14! 5.4.2! SOCIAL!ASSESSMENT!.....................................................................................................................!15! 6! OVERALL(CONCLUSIONS(........................................................................................................(16! 6.1! MDT/IEP(STUDIES(.................................................................................................................(16! 6.2! ADDITIONAL(OBSERVATIONS(......................................................................................................(17! 7! COMPENDIUM(OF(RECOMMENDATIONS(...............................................................................(18! ! ! ! JSL!Consulting!Ltd.!38!Hayfield!Road,!Oxford,!OX2!6TT,!UK! UK!Co.!Reg.!04068123;!VAT!768!4469!73! +44!(0)1865!512365/+44!(0)7500!729!681/Skype:shankleman! ! Multi'Disciplinary!Team!and!Independent!Expert!Panel! Summary!Report!! January!2017! RECOMMENDATIONS(RELATING(TO(PASTURE(..............................................................................(19! RECOMMENDATIONS(RELATING(TO(WATER(.................................................................................(20! RECOMMENDATIONS(RELATED(TO(MONITORING,(REPORTING(AND(COMMUNITY(RELATIONS(....(21! RECOMMENDATIONS(ON(COMPENSATION(..................................................................................(23! ABBREVIATIONS(...........................................................................................................................(26! PHOTO(LOG(..................................................................................................................................(27! PHOTO(LOG(..................................................................................................................................(27! LIVESTOCK!INSPECTION(................................................................................................................(28! !!WATER!MEASUREMENT(..............................................................................................................(29! !!DRONE(.......................................................................................................................................(29! SURFACE!WATER,!BAYAN!BAGH(....................................................................................................(30! PLACING!DUST!TRAP(.....................................................................................................................(30!
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