Achieving Sustainable Integrated Water Resources Management in NO. 138

JUNE 2020 ADB BRIEFS

KEY POINTS Achieving Sustainable Integrated • Addressing Mongolia’s water security challenges requires a Water Resources Management strong institutional system at national and regional levels. in Mongolia: The Role of River At the regional level, river basin organizations (RBOs) Basin Organizations have the key responsibility of implementing effective interventions based on integrated water resources Mingyuan Fan1 management (IWRM). Principal Water Resources Specialist • RBOs are primarily East Asia Department tasked with preparing Asian Development Bank and implementing river [email protected] basin management plans, protecting water resources, promoting habitat conservation, and ensuring MONGOLIA AND ITS WATER RESOURCES SYSTEM effective water use. However, restricted autonomy, limited Mongolia is the 19th largest country and the second-largest landlocked country in the financial resources, and lack world.2 With a land area of 1.56 million square kilometers and a population of 3.2 million of professional capacities in 2018,3 Mongolia has a population density of around two persons per square kilometer, are major constraints to the making it the most sparsely populated fully sovereign country in the world. The country functioning of RBOs. comprises 21 administrative divisions called aimags (provinces), and each aimag is composed of smaller units known as soums (districts). • Significant communication gap between the line Up until 1990, the centrally led government attended to water management in ministries, local governments, Mongolia based on 5-year state planning. As a result of the democratic revolution in the and the RBOs also poses early 1990s, this centrally led approach was largely abandoned under the assumption an important challenge as that markets could take care of the water management tasks. However, this did not RBOs have to deal with happen, and many water systems collapsed or are in poor condition. It took some time several aimag (provincial) before the government realized this and took action to reinstate water management in governments within their the country as a government task.4 river basin. • The next step in the development of a decentralized IWRM is 1 This brief draws heavily from the results and recommendations of two assessment reports prepared to push the RBOs into by the Asian Development Bank (ADB) on Mongolia’s water sector. ADB. 2017. Country Water Security Assessment of Mongolia. Consultant’s report. Manila (TA 8855-MON); and M. Fan and becoming drivers of E. van Beek. 2020. Overview of Mongolia’s Water Resources System and Management: A Country Water sustainable IWRM. Security Assessment for Mongolia. Manila: ADB. 2 The Embassy of Mongolia to the Swiss Confederation, and the Permanent Mission of Mongolia to the United Nations Office and Other International Organizations in Geneva. Geography and Climate. 3 Government of Mongolia, National Statistics Office. Mongolian Statistical Information Service (accessed 4 April 2019). 4 Government of Mongolia, Ministry of Environment and Green Development. 2013. Integrated Water Management Plan: Mongolia. Ulaanbaatar. ISBN 978-92-9262-244-2 (print) ISBN 978-92-9262-245-9 (electronic) ISSN 2071-7202 (print) ISSN 2218-2675 (electronic) Publication Stock No. BRF200175-2 DOI: http://dx.doi.org/10.22617/BRF200175-2 ADB BRIEFS NO. 138

At present, the water system is in a state of change as Mongolia’s ESTABLISHING THE RIVER socioeconomic structure transforms from a weak rural economy to BASIN ORGANIZATIONS a fast-developing mixed economy characterized by rapid growths in urbanization, industrialization, and mining. Since 2004, the Increasing water security requires efficient water institutions Government of Mongolia took several actions to reinstate the at both national and regional levels. Since water crosses institutional system on water resources management. In 2005, the administrative borders, cooperation is needed between regional Water Authority was established and the first principles of river administrations. The preferred management unit for water basin management were laid down in a Water Law, including the is a river basin. Hence, an important element of a strong and introduction of a water use fee. In 2010, Parliament adopted a new integrated institutional system is the establishment of river basin National Water Program (the 2010 Parliament Resolution No. 24) organizations (RBOs) for the identified 29 river basins (Map 2), and decided that it will be implemented in two stages: an intensive based on international best practice. RBOs work in parallel development phase 1 (2010–2015) and a stable development with each other and have the key responsibility to implement phase 2 (2016–2021). Among the strategic goals of the water effective interventions at regional level, thereby paving the way program were strengthening water resources management, for the decentralization of water management and facilitating the regulating and promoting the effective use of water resources, and involvement of citizens in water management. improving the legal environment for the management of water resources and water bodies. In 2012, the Water Law was revised RBOs are relatively young organizations in Mongolia since the to better regulate water use and exploration. The revision clearly country was divided into 29 river basins only in 2010 by the Order stipulates the categorization of water resources, the tasks for of the Minister of Environment and Tourism. There are currently rational water management, and the procedure for the issuance 21 operational RBOs, the first of which was established on the Tuul of water use permits. Subsidiary legislations were also adopted to River Basin in 2012. Each RBO consists of an operational group of define river basins and to provide guidance on the development 5–12 water professionals (that make up the RBA) along with the of river basin management plans and the establishment of river representatives from government, stakeholders, and water users basin authorities (RBAs) and river basin councils (RBCs) as the (that make up the RBC). These newly established RBOs will need country’s key institutional system for water resources management. time to become fully operational and effective. The law also specifies that the Ministry of Environment and Green Development—now Ministry of Environment and Tourism The main function of the RBOs is to implement effective water (MET)—is the main central government organization responsible management based on IWRM, with two fundamental tasks: for water resources management. preparing river basin management plans for each river basin, and supporting the implementation of these plans. The RBOs Mongolia faces considerable challenges to achieve water security are responsible for protecting the water resources, ensuring by meeting the demands of socioeconomic development while effective water use, and promoting habitat conservation. The ensuring the environmental integrity of its water systems. This RBAs coordinate water-related activities in their basin at national, includes, in particular, the urban center of Ulaanbaatar and the regional, and intersector levels; while the RBCs promote local water provision of water to mining activities in the , but governance through a transparent and participatory approach. also in other regions where actions are needed. The capital and largest city, Ulaanbaatar, is home to approximately 47% of the total The RBC is a nongovernment organization composed of 31–45 population, which makes Mongolia a highly urbanized country members, equally representing the following three sectors: (74%). The water supply of Ulaanbaatar depends on upstream (i) public administration and parliaments, (ii) nongovernment groundwater sources of the Tuul River Basin (Map 1). This relatively organizations and local communities, and (iii) water users from small basin alone supports about 50% of the country’s population. the industry and agriculture sectors. In 2018, MET approved For achieving long-term sustainability and security of water amendments to the RBC guideline to extend existing RBCs to resources, a strong and integrated institutional system is needed a river basin multistakeholder platform. Recently, 24 river basin for the country. These institutions are needed to implement multistakeholder platforms were established all over the country. integrated water resources management (IWRM), including the development of water resources plans and the enforcement of Under the Country Water Security Assessment technical regulations; and to facilitate the operations of government-owned assistance project of the Asian Development Bank (ADB) and the water investments, among others. Government of Mongolia, the performance of the 21 operational RBOs has been assessed through benchmarking.5 Specifically, the RBOs’ functioning of their mandates was evaluated against 14 key performance indicators, which were rated from 0 (worst) to 4 (best). The figure on page 5 shows the present scores and the targets the RBAs have set for themselves in 2020. The benchmarking methodology of the Network of Asian River Basin

5 ADB. 2014. Technical Assistance to Mongolia for Country Water Security Assessment. Manila (TA 8855-MON). 2 Achieving Sustainable Integrated Water Resources Management in Mongolia

Map 1: Natural Water Resources System in Mongolia

96o 00'E 111 o 00'E

MONGOLIA NATURAL WATER RESOURCES SYSTEM

Khovsgol Lake

Uvs Lake Khovsgol Lake o 50 o 00'N 50 00'N Turgen Altan Els Mongol Daguur Achit Lake Sukhbaatar Mongol Murun Daguur Ulgii Khan Khentii Darkhan Khar-Us Lake Noorthernrthern ArArcctictic Erdenet Altai OOceancean BBasinasin Tavan Bogd Khokh Terkhiin Tsagaan Serkh Khovd Bulgan Choibalsan Uliastai Lake ULAANBAATAR Khar-Us Lake Ogii Lake Tarvagatai Nuruu Tsetserleg Chinggis Paacificcific OOceancean BBasinasin Nomrog

Zuunmod Tuul River Basin Altai Khustain Nuruu Eastern Choir Baruun-Urt Bayankhongor

Arvaikheer

Mandalgovi Great Gobi B Valley of the Lakes Ganga Lake

CCentrentraall AAsiansian Innternalternal BBasinasin Sainshand

Dalanzadgad Gobi Gurvansaikhan 42 o 00'N 42 o 00'N Basin Great Gobi A Ramsar Site N Small Gobi Tuul River Basin Protected Area

0 50 100 150 200 250 National Park National Capital Kilometers Provincial Capital

192242A River This map was produced by the cartography unit of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this International Boundary map do not imply, on the part of the Asian Development Bank, any judgment on Map does not include all protected areas and national parks. 17 MON the legal status of any territory, or any endorsement or acceptance of such Boundaries are not necessarily authoritative. boundaries, colors, denominations, or information. ABV 96o 00'E 111 o 00'E

Source: Asian Development Bank.

Organizations has been used for that purpose. The assessment An important finding of the assessment was that a substantial gap was designed to include both the RBA and RBC, and evaluate their in communication exists between the RBOs, the line ministries, collective operations. Benchmarking is basically a self-assessment and the local governments (aimags and soums). Partly related to process undertaken by the RBA managers in close collaboration this is the conclusion that the establishment and operationalization with RBC representatives, as they know best the current state of of the RBCs are strongly lagging behind the RBAs. The RBAs are their organization and the adequacy of their resources.6 There is quite small (less than 10 staff) and have difficulties showing the a section in the questionnaire where the evaluators are asked to added value of their work to the aimags and soums in terms of provide a description of the current condition and a summary of specialized advice. This is again due to the limited budget that recommended actions for implementation prior to the next round is made available for the RBOs. Finally, investment and policy of benchmarking (proposed in December 2020). decision-making involve many agencies; yet, the RBOs sit outside the main nucleus of such decision-making process.

6 The benchmarking process involved representatives of each RBO ranging from four to six participants, but all from the RBAs and none from the RBCs. 3 ADB BRIEFS NO. 138

Map 2: River Basin Areas in Mongolia with Administrative Borders

96o 00'E 111 o 00'E

MONGOLIA RIVER BASINS WITH ADMINISTRATIVE BORDERS

Shishged 3

o 50 o 00'N -Tes 50 00'N 29 Khuvsgul Lake-Eg 2 Ulz Delgermurun Selenge River 13 -Khovd 4 1 Eroo 28 Khanui 11 Khyargas Lake-Zavkhan 7 24 Ider Kharaa Onon 5 10 12 Kherlen Chuluut 14 Bulgan 6 Tuul Buir Lake- 27 Orkhon 9 Khalkh Gol 8 Menen Steppe 15 Khuisiin Govi-Tsetseg Lake 25 16 Buuntsagaan Uench-Bodonch Lake-Baidrag 26 23 Taatsiin Tsagaan Umard Goviin Guveet- 21 Khalhiin Dundad Tal 17 -Tui 22

Ongi 19 Galba-Uush-Doloodiin Govi

Altain Uvur Govi 18 20 42 o 00'N 42 o 00'N

N

0 50 100 150 200 250 21 Water Basin Number River Kilometers Lake or Reservoir

192242B 17 MON Provincial Boundary This map was produced by the cartography unit of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this International Boundary map do not imply, on the part of the Asian Development Bank, any judgment on Boundaries are not necessarily authoritative. the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information. ABV 96o 00'E 111 o 00'E

Source: Asian Development Bank.

The average overall benchmarking score was 1.8 (out of 4.0). STRENGTHENING THE This indicates that the 21 RBOs have established basic water INSTITUTIONAL SETTING resources management capacities. The next step is to push the RBOs to become proactive drivers of sustainable water resources The RBOs are key institutions for the implementation of IWRM management (i.e., beyond their present monitoring and supporting in Mongolia. The RBAs should work closely together with the roles) and to demonstrate their added value to the aimags, soums, aimags and soums, where most of the actual decision-making and the central government. For this, core weaknesses need to be and implementation on water management measures take place. overcome such as insufficient funds; weak connections between At its current level (i.e., fourth in the MET structure), the RBAs the aimag and soum governments, and with water sector agencies; have restricted autonomy as majority of management decisions lack of professional capacities and scientific support; and sluggish go through several levels of MET. Moreover, issues concerning progress in setting up RBCs. intersector decisions are referred to and handled by the National Water Committee. The mix of decentralization at aimag level and the centralized position of the RBOs make decision-making 4 Achieving Sustainable Integrated Water Resources Management in Mongolia

cumbersome and inefficient, thereby reducing effectiveness. A balance needs Results of Benchmarking of Participating River Basin to be attained between central and local Organizations, by Performance Indicator control by clearly defining the level of devolved responsibilities for the RBOs as 1. Status of the RBO well as the aimag and soum governments. 2. Adequacy of institutional framework

A second constraint to the functioning of 3. Stakeholder satisfaction the RBOs is the lack of funds to carry out actual activities. The RBOs are financed 4. Stakeholder feedback by the water fees that users have to pay 5. Stakeholder environment for withdrawing and discharging water. The present budget for the RBOs is only 6. Stakeholder livelihoods 35% of the water fees collected and is 7. Human resources development used mainly (80%) for salaries of the RBA staff. No budget is available for the 8. Technical development RBCs, which makes it difficult to make 9. Organizational development these RBCs operational. Many RBOs have not been able to establish RBCs 10. Water planning and management for this reason. To make the RBOs more 11. Water allocations proactive (e.g., by carrying out additional monitoring or surveys) and to make the 12. Information management RBCs operational, additional budget 13. Financial independence should be made available. 14. Financial efficiency

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

2016 rating (0–4) 2020 target rating (0–4)

RBO = river basin organization. Note: Scores indicate that 0 is worst and 4 is best. Source: Asian Development Bank. 2017. Country Water Security Assessment of Mongolia. Consultant’s report. Manila (TA 8855-MON).

CAPACITY BUILDING TECHNOLOGICAL AND SCIENTIFIC SUPPORT In Mongolia, the concept of IWRM is relatively new, and the RBO- based approach to river basin planning and management is likewise Supporting permanent positions for specialist skills covering very recent. Capacity building is required on how to implement all areas in the RBAs is not efficient for RBOs because of their IWRM, both from the side of the RBOs as well as the side of the decentralized status. It is, therefore, essential for RBOs to have staff of the aimags and soums and the stakeholders (the RBCs). access to specialist skills, as and when needed. Such access was The training program has to include a rolling 5-year plan and raised as a crucial issue during the benchmarking process. Special annual training plans that detail the objectives, types of training, short-term training courses are able to address some knowledge and monitoring procedures. The training has to be structured by a and capacity requirements but are no proxy to professional mix of on-the-job training as well as classroom training. Important expertise. Examples of high-level professional expertise are the topics for training should include the following: determination of renewable groundwater and environmental flow • understanding the water resources system (for the nontechnical requirements, transboundary river management, climate change, staff members of the aimags, soums, and the RBCs); setting up of databases, and computer modeling. • the governance of IWRM (involvement of stakeholders, decision-making process); and Options for specialist support include establishing a central unit • technical aspects (such as groundwater, water quality) that are of water resources management specialists and improving access of particular interest to a specific basin. to specialist skills from the academe and the private sector. This specialist expertise will be available to the RBOs, but also to support the National Water Committee, sector agencies, and other MET staff. Framework contracts through a specialist organization (e.g., from a university) may be used to engage the services of 5 ADB BRIEFS NO. 138

recurrent specialists. The terms and scope of the services should Water Security Assessment in Mongolia was completed, whereby be flexible and adaptable to the specific needs of clients, and pre- the present water situation was assessed in terms of the five agreed rates should be clearly defined. key dimensions of water security (rural household, economic, urban, environmental, and resilience to water-related disasters); an institutional analysis was carried out; and a water sector ADB’S INVOLVEMENT investment program was proposed (footnote 5). A new technical assistance, Implementing Innovative Approaches for Improved ADB is supporting the Government of Mongolia in the field of Water Governance, is ongoing to strengthen Mongolia’s water water management by means of technical assistance, grants, governance and address the institutional issues mentioned in this and loan projects. In 2017, the technical assistance on Country policy brief.7

CONCLUSION AND RECOMMENDATIONS

Mongolia has embarked on a promising road to implement IWRM by establishing RBOs for their 29 river basins. A good start has been made, but next steps are needed to have the RBOs accepted by other government agencies and the public as institutes that have added value as drivers for sustainable water management. These next steps include • harmonizing policies and regulations to clarify the roles of the different organizations involved in water resources, in particular the role of the RBOs; • strengthening the RBAs in terms of staff, budget, and specialized knowledge support; and • improving the communication and interaction between the Capacity-building training. A training session was conducted in 2018 for the RBAs, the line ministries, and the local administration units as establishment of river basin multistakeholder platform (photo by the Asian well as local communities. Development Bank TA 8855-MON project team).

7 ADB. 2017. Technical Assistance to Mongolia for Implementing Innovative Approaches for Improved Water Governance. Manila (TA 9440-MON).

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