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Initial Environmental Examination

June 2021

Mongolia: Aimags and Soums Green Regional Development Investment Program

Prepared by the Ministry of Construction and Urban Development for the Asian Development Bank. This is a revised version of the draft originally posted in May 2020 available on https://www.adb.org/projects/documents/mon-49430-005-iee. CURRENCY EQUIVALENTS (as of 2 June 2021)

Currency unit – togrog (MNT) MNT1.00 = $0.00035 $1.00 = MNT2,846.27

ABBREVIATIONS

ADB - Asian Development Bank Aimags and Soums Green Regional ASDIP - Development Investment Program CEMP - Contractor Environmental Management Plan DFE - Disease Free Establishment EIA - Environmental Impact Assessment EMP - Environment Management Plan EMR - Environmental Monitoring Report GOM - Government of Mongolia GRM - Grievance Redress Mechanism IEE - Initial Environment Examination MET - Ministry of Environment and Tourism MNT - Mongolian Tugrik MCUD - Ministry of Construction and Urban Development MOFALI - Ministry of Agriculture and Light Industry NFPUG - National Federation of Pasture User Groups TOSK - Provincial Housing Authority PIU - Project Implementation Unit PPTA - Project Preparatory Technical Assistance REA - Rapid Environmental Assessment RP - Resettlement Plan SPS - Safeguard Policy Statement (2009) USD - United States Dollar

WEIGHTS AND MEASURES km - kilometer km2 square kilometer kg - kilogram ha - hectare m - meter m3 - cubic meter mg - milligram mg/l - milligrams per litre t - metric tonne

In this report, "$" refers to US dollars.

2 This initial environmental examination 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. Your attention is directed to the “terms of use” section of this website.

3 EXECUTIVE SUMMARY

1. The feasibility design of Tranche 1 of the Aimags and Soums Green Regional Development Investment Program (ASDIP) has been prepared. The ASDIP will promote local economic development and improve basic urban services in priority Aimags of Mongolia1. The program will support the government in establishing inclusive, green urban development, resilient rangeland management, and sustainable agrobusiness values chains in select Aimags. For each Aimag the ASDIP will comprise a sequenced set of green urban and rural infrastructure developments, and agrobusiness investments, which are supported by implementation mechanisms, policy actions, and capacity building support. The ASDIP investments will reduce the vulnerability of the country to climate change and further pastureland degradation.

The four outputs of the ASDIP are:

(i) Climate-resilient, low-carbon, and attractive aimag and soum centers developed; (ii) Climate-resilient, high-carbon sequestration, and sustainable herding rangeland management implemented; (iii) Accessible financing for low-carbon and climate-resilient livestock value chains created; and (iv) Institutional capacity and policies for low-carbon and climate-resilient agro- territorial development strengthened.

2. The ASDIP will be financed with a Multi-tranche Finance Facility (MFF) loan modality. Tranche 1 and the focus of this IEE include the three western Aimag centres of Ulaangom of Uvs Aimag, Ulgii of Bayan-Ulgii Aimag, Jargalant of Khovd Aimag, and the two soum centres of Umnugovi and Deluun of Uvs and Bayan-Ulgii Aimags, respectively.

3. To facilitate the Outputs of the project the multisector ASDIP will invest in the following two major component areas:

(i) Basic urban infrastructure, services, and facilities; and (ii) Agrobusiness facility developments including improved pastureland management

4. The tables below summarize the planned investments. The urban infrastructure investments will occur primarily inside the Aimag centres and soum centres, whereas the agrobusiness investments will occur outside but near the Aimag centres and soum centres. The new agrobusiness facility investments will also be supported with infrastructure.

1 An Aimag is an administrative subdivision equivalent to province in Mongolia. There are 21 Aimags and Aimag centres. A soum is an administrative subunit of an Aimag, and its centre is called a soum center. There are 304 soums in Mongolia (not including Aimag centres). Soums have average populations of 4,000 and cover an average land are of 5,000 square kilometers.

4 Planned Urban Investments of ASDIP in Aimag and Soum Centers

Urban & Agrobusiness Infrastructure

• Ger housing redevelopment2 • Heating supply network improvements • River and dyke embankments for flood • Road developments and drainage control • Improvements to wastewater collection and new or completed • Water canals upgraded treatment plants (WWTP)

• Water treatment and distribution • Landfill improvements improvements • Upgraded schools, hospitals, • Electrical power upgrades municipal buildings • Communication towers & fibre optic networks

Planned Agrobusiness Investments of ASDIP in Aimag and Soum Centres

Agrobusiness Investments*

• Community-based micro-projects for • Agroparks PUGs3: - animal husbandry, - Disease Free Establishments - hay protected areas & storage, - Meat processing facilities - small irrigation, - Laboratory & veterinary services - well water development, - Research Development Centre - small river/stream bridges - Business incubator centres - Processing industries • Irrigation schemes and fodder farms * investments will be supported by infrastructure from table above

5. Briefly, the ASDIP will be executed by the Ministry of Construction and Urban Development (MCUD) with support from a multi-agency Executive Working Group and upper Steering Committee. An MCUD-created project management office (PMO) in Ulaanbaatar will oversee implementation of the urban infrastructure and agrobusiness components with technical and policy support from the Ministry of Agricultural and Light Industry (MOFALI). The PMO will coordinate implementation of Tranche 1 with counterpart staff at the three Aimag project offices (APO) which in turn will work with inter-soum project offices. The Financial Intermediary Loan (FIL) component of project will be implemented by the Development Bank of Mongolia (DBM).

2 This is in relation to an ongoing ADB project. ADB 2018. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Administration of Loan and Grants to Mongolia for the Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal Sector Project. Manila. 3 Pasture User Groups

5 Assessment Context

6. The ASDIP remains category B for environment pursuant to ADB’s 2009 Safeguard Policy Statement. This category B project will have potential adverse impacts that are less adverse than those of a Category A project because potential impacts of a category B project are short-term, site-specific, largely reversible, and can be mitigated with the supporting Aimag environmental management plans (EMP).

7. The original Category B designation for ASDIP is maintained because the project components for Tranche 1 are not in, near, or will affect national or international protected areas, or critical wildlife habitat (SPS 2009) and are not inhabited by rare or endangered wildlife. Two initially proposed project sites were screened out of Tranche 1 during the site investigations because the sites were located inside a National Park and a Game Reserve. Also, the field investigations confirmed that the potential impacts of planned project components of Tranche 1 are largely short-term construction-related disturbances that can either be prevented or mitigated. The original ADB Rapid Environmental Assessment (REA) of the ASDIP which assigned the project as Category B is found in Appendix A.

Benefits of ASDIP

8. A major comprehensive benefit of Tranche 1 of the ASDIP is the significant increase in standard of living of residents in the target Aimag centres and soum centres that will arise from the improvements to the diverse array of urban infrastructure and services. The attributes of the improvements to the standard of living and family health that will be realized by the affected communities are as follows: (i) in Aimag centres, access to modern, energy efficient apartments to replace traditional ger housing will lead to immediate improvements to in-house air quality (i.e., reduction in PM2.5 from coal & wooding), and a reduction in gastrointestinal- related illnesses from replacement of pit latrines with modern toilets and central wastewater collection. (ii) expanded piped potable water supply; (iii) new and improved central wastewater collection and treatment; (iv) expanded and improved central hot water and heating networks; (v) improved electrical power supply; (vi) better organized solid waste collection including cleaned & better contained landfills; (vii) improved flood control and drainage; (viii) improved utility services to community facilities such as schools, hospitals, community centres; and (ix) significant improvements to surface water quality from improved wastewater treatment; and (x) estimated 1.1 million tCO2 in direct emission reductions over the investment lifetime from the urban energy efficiency and renewable energy infrastructure computed for the climate change mitigation component of the separate Funding Proposal (FP) to the Green Climate Fund (GCF).

9. The second major benefit area of the ASDIP will arise from the agricultural component of the project which will introduce modern agrobusiness technology and practices at the Aimag and

6 soum centres which will be defined in Agropark complexes comprised of Disease Free Establishments, laboratories and veterinary services, regional research centres, meat processing facilities, and process industries. Supporting the Agroparks will be irrigated fodder and hay farms. Major positive impacts of the agrobusiness and pastureland management components will be:

(i) introduction of modern meat processing, handling and storage technologies (e.g., FAO 1988, WHO 1984, and other international standards), and waste management thereby reducing ongoing environmental pollution from present meat processing practices.

(ii) from #1, increased quality of meat produced for domestic and international markets thereby improving livelihood incomes of herders and exporters from meat exports to previously inaccessible lucrative international markets;

(iii) from #2, decreased size of livestock herds and therefore decreased overgrazing of the pastures in the Aimags leading to pasture habitat restoration;

(iv) from #3, decreased livestock methane (CH4) and nitrous oxide (NO3) emissions, and increased CO2 sequestration in restored pastureland thereby significantly reducing the carbon footprint of the project affected areas of western Mongolia. Specifically, estimates computed for separate Funding Proposal (FP) to the Green Climate Fund (GCF) are 94.0 million tCO2 in direct emission reductions over the investment lifetime from enhanced soil carbon sequestration, and 17.2 million tCO2e in direct emission reductions from reduced methane and nitrous oxide emissions resulting from a reduction in herd sizes. 10. With the estimated 1.1 million tCO2 direct emission reductions over the lifetime from the urban energy efficiency and renewable energy components, the total reductions in emissions over the lifetime of the investments estimated at 112.4 million tCO2.

Potential Impacts – Construction Phase

11. The five project sites for Tranche 1 are not in, near, or will affect any area of conservation significance (SPS 2009).

12. The potential impacts of the construction of new and upgraded infrastructure (i.e., utility trunks lines [potable water, hot water, electricity, communications, wastewater], roads, buildings, drainage, riverbank and dyke improvements, water supply canals) for the urban areas and for the agrobusiness components outside the urban areas will focus on short-term disturbances and impacts from civil works activities.

13. Common impacts and disturbances caused by the civil works in the Aimag centres and soum centres will consist of reduced and/or blocked public movement & access, disrupted utility services, disrupted business and recreation activity, noise & dust caused by earthworks, heavy truck movement, & equipment use, homestead soil pollution caused by equipment operation and maintenance, risk of public and worker accidents & injury, increased traffic congestion & traffic accidents, land erosion and downstream sedimentation of Aimag/soum rivers, and temporary localized drainage and flooding problems. Solid waste and domestic pollution from temporary worker camps can occur, as well as potential communicable disease and community problems caused by migrant workers. These short-term impacts and disturbances will occur at different levels of magnitude depending on the civil works activity and location in Aimag centre or soum

7 centre. Specific impacts or disturbances of construction phase of Tranche 1 are summarized below.

At three Aimag centres and Umnugovi and Deluun soum centres

Safe and sustainable water supply

14. The households and businesses of all project areas rely on obtaining drinking water from nearby kiosks, and transporting the water primarily by foot back to homes and businesses. Often children of families are responsible for fetching and carrying the family water to the home.

15. It is critical that this single domestic activity is not disrupted when the infrastructure works and ger housing redevelopments occur. Children and mothers must be able to walk safely and freely near the construction sites while laden with the daily/weekly supply of water. Existing pedestrian routes must be protected with barriers between all construction sites and walkways. Temporary, protected routes must be created for water transport where necessary to protect the public. Similarly, the supply of potable water to the community ger distribution kiosks must also not be interrupted from construction activities.

Batch concrete and asphalt plants

16. Temporary batch plants for asphalt and concrete may be used for the infrastructure works in the urban areas. Batch plants potentially act as point sources of environmental and aesthetic pollution for the affected sites and local community. The issues arise from potential wind and water erosion (dust & sedimentation) from stockpiles of the raw materials of sands and other aggregates, chronic noise and public safety risks from batch processing and heavy truck traffic to/from the plants. Improper handling and storage of raw materials can also cause soil and surface water pollution from the curing chemicals in cement and hydrocarbons from (e.g., oil & thinners) for asphalt.

17. Best practice methods must be conducted to manage the creation, operation, and ultimate decommissioning of temporary batch plants. The contractor under supervision of MCUD must follow international guidelines stipulated by the World Bank (IFC) EHS Guidelines for 1) Cement & Lime Manufacturing, 2) Construction Material Extraction; and 3) Retail Petroleum Networks. The recent USEPA (2014) Code of practice Concrete batch processing can also be consulted.

Disruption of utility services

18. The extensive rehabilitation and expansion of infrastructure and utilities in the Aimag centres and soum centres will undoubtedly cause periods of utility outages for residents and businesses. Where possible temporary auxiliary or alternate utility service will be supplied to minimize the disruptions to the community. All required power outages will be scheduled with outage schedule(s) distributed to all affected households and businesses at least 48 hours ahead of the outage.

Ulaangom

Flood prevention dyke improvements along levee lake

19. The 4.0km earthen dyke southwest of the city will be upgraded to prevent seasonal flooding of Ulaangom from spring stream-river runoff from the mountains in the west. The north

8 end of the dyke will become a 1km embankment to create a small pond for local drinking water and irrigation. Extra care must be taken to ensure that the berms and / or silt curtains are placed between the dyke work areas to prevent erosion and siltation of the levee lake.

Umnugovi soum centre

Dumpsite rehabilitation

20. Tranche 1 will include a detailed needs assessment of solid waste management at all five urban project sites including the five existing dumpsites. The needs assessments will characterize existing conditions, such as type of waste, physical profile (soils, topography & groundwater) and the environmental hazards that need to be remediated during future tranches of ASDIP. Groundwater sampling and testing will occur to assess possible existing contamination. The depth of the water table and quality of groundwater needs to be determined to ensure that groundwater is not being contaminated by the garbage. Initial works to be conducted will be to clean-up the dumpsites and consolidate the existing waste on site and install peripheral fencing around the sites to contain wind-blown waste.

Ulgii

Riverbank improvements to prevent flooding

21. A 1,250m section of the Khovd riverbank in Ulgii will be rehabilitated to prevent recurrent flooding of the city during spring high flow periods. Similar, to the levee lake in Ulaangom, care must be taken to install silt curtains and temporary earthen berms between the river and all riverbank works to prevent erosion and sedimentation of the river.

Potential Impacts - Operation phase

Infrastructure Components

Redeveloped Ger Housing

22. The significant benefit of the redeveloped of ger apartments in three Aimag centres will be a significant increase in the standard of living of the participating families. There are potential issues and impacts of introducing modern, densified apartment living that could detract from the increased standard living. Potential social-family issues with the operation/occupancy of the new apartments could arise from the increased density of family and possibly extended family households. Other potential issues relate to successful affordable operation and maintenance of the upgraded, modern utility services, energy efficient building technologies

Sustainable potable water supply

23. The potential impact of expanded water supplies is creation of water deficit situations from too much consumption. The planned expansion of potable groundwater supplies to the Aimag centres, and in particular soum centres, from additional pumps and/or wells via expanded supply networks must be sustainable. At the detailed design stage of Tranche 1 the seasonal availability of potable water whether groundwater or surface water needs to be examined to confirm sustainability of the sources both in terms of quantity and quality. Knowledge of the future sustainability of potable water is important given the impact of climate change on regional water resources.

9 Air emissions

24. A potential impact of the project is increased air pollution (CO2, NOx and SOx) as a result of the planned expansions of hot water heating networks in all three Aimag city centres (Ulaangom, Ugii, and Jargalant). Improvements to the quality of the coal-fired heating plant emissions are not planned for Tranche 1, and the present heating plants currently do not meet national or international emission standards. This means the ASDIP will need to consider upgrading the emission treatment technologies of the existing heating plants in the three cities to meet national or international (IFC-EHS – WHO) industrial emission standards in Tranche 2 or 3.

Agrobusiness components

i. Sustainable water supply

(i) Surface waters

25. The project will develop four 200ha and 500ha fodder farms that will be irrigated with local river water. The 200ha and 500ha fodder farms will require an estimated average 0.250m3/s and 0.625m3/s of water diverted from the adjacent rivers during the important growing period of May – September. The river flow available to the four fodder farms was estimated from river flow data collected from government flow gauge stations located either upstream of, or on adjacent tributaries of the rivers.

26. The fodder farm design specialists assert that the available river flow data indicate that sufficient river flow will be available for the downstream fodder farms. However, at implementation stage the flows of the source rivers at the actual sites where water will be diverted to irrigate the fodder farms must be confirmed to ensure sufficient river water is available between May and September for the fodder farms, and for other existing downstream water users of the rivers. Anecdotal information obtained from the public consultations on environmental issues of the project indicates that the source river (Teel river) for the Tarialan soum fodder farm dries up in summer below the planned location of the fodder farm.

(ii) Groundwater

27. Some of the investments of the agroparks that will be developed by the project such as meat processing plants, and Disease Free Establishments will require groundwater to operate. The groundwater requirements of the different facilities have been determined. The Water Resources Division (WRD) of the Ministry of Environment and Tourism (MET) conducted a study (2020) of available groundwater resources for ongoing and future development in Mongolia. The study indicated abundant groundwater resources exist in western Mongolia including the three project Aimags of Uvs, Bayan-Ulgii, and Khovd.

28. Similar to surface waters, at implementation stage groundwater availability at the finalized sites for these agropark facilities needs to be confirmed to ensure adequate groundwater exist for the project and for other users. And as indicated above groundwater sustainability must also be confirmed for the planned expansion of potable water supplies in the Aimag and soum centres as indicated above.

10 ii. Impact of Tarialan irrigation schemes on Uvs Lake Strictly Protected Area

29. The two types irrigation schemes planned in Tarialan soum will extract water from the Kharkiraa and downstream Teel river system that discharges into Uvs Lake which is a national Strictly Protected Area. However, the information obtained from the public consultations on the project indicates that the Teel river dries up before reaching Uvs Lake in summer which indicates that the impact of the two irrigation schemes on Uvs lake protected area will likely be nonexistent or negligible.

Existing Facilities of the ASDIP

30. The present wastewater treatment plants (WWTP) and heating plants (HCP) in the three Aimag centres are “existing facilities” (SPS (2009). The three Aimag WWTPs plants will be replaced or completely redesigned during Tranche 1 as part of the overall improvements to wastewater collection and treatment. The WWTPs will be replaced because the original Soviet technologies of the plants are no longer functioning as designed resulting in the plants not meeting national or IFC-EHS operational and environmental protection standards. Thus, the corrective actions (SPS 2009) for the existing WWTPs will become the new or completely upgraded plants that are produced by Tranche 1 of the ASDIP.

31. Tranche 1 will focus on upgrading the heating (hot water) networks in the three Aimag centres. The existing three Aimag HCPs are not part of the planned network upgrades with only water pumps possibly being replaced at a HCP. During detailed design stage of Tranche 1 the technologies, operations, and environmental protection management of the HCPs will be further examined to determine the extent of rehabilitation the HCPs will require for Tranche 2. During the site visit consultations with the HCP operators it was determined that the emissions of the plants do not meet national, and therefore international emission quality standards. Thus, the required corrective actions for the existing HCPs will be confirmed during detailed design stage of Tranche 1 for implementation during Tranche 2.

Cumulative or Induced Impacts

32. The major positive cumulative impact of ASDIP is increased standard of living of affected communities caused by the comprehensive improvements to urban infrastructure and services. Moreover, the significant induced impact of redeveloped ger housing is the effect of improvements to individual and family health on individual and family prosperity, and ultimately strengthened ger socio-economy.

33. Another major positive induced impact of ASDIP is the dual climate change mitigation of the future reductions livestock herds on the sequestration of CO2 into restored pastureland habitat, and the reduction in emissions of methane (CH4) produced by livestock.

34. In view of the need to confirm existing data and surface and ground water resource sufficiency at implementation phase, the only potential negative, cumulative impact of ASDIP could arise from the water consuming components of the project. Potential negative cumulative impacts of the project could become newly created or exacerbated existing water shortages caused by the water consuming components of the project. The water consuming components are defined by the expanded urban potable water supplies (e.g., groundwater), new irrigation schemes (e.g., surface water), and agrobusiness components such as planned meat processing facilities (groundwater).

11 Conclusions and Recommendations.

35. The construction phase of the diverse array of infrastructure components require careful mitigation measures to ensure construction disturbances and impacts are minimized and managed with standard construction practice and mitigation measures. Of particular importance is that the current practice of manual transport of household water needs from local kiosks must receive maximum protection during construction phase so that no water supply to any household is disrupted for a single day.

36. The infrastructure and agrobusiness components of the ASDIP will not negatively impact protected areas, critical wildlife habitat, or rare or endangered wildlife. This was ascertained with the early screening and removal of the Mankhan soum and Myangad soum sites in Khovd Aimag which contained all three sensitive ecological characteristics, and by the determination that the feasibility designs of the two types of irrigations schemes planned on the Kharkiraa-Teel river system in Tarialan soum, Uvs Aimag will not impact the Uvs lake protected area.

37. In support of reported abundant groundwater resources and estimated sufficient surface water resources, water resource availability will be confirmed at implementation to ensure sustainable surface and groundwater water resources are available for all users in the project areas.

38. The Aimag EMPs developed for ASDIP provide impact mitigation plans, environmental monitoring plans, and specify the institutional responsibilities and capacity needs for the environmental management of ASDIP. The EMPs will need to be reviewed and updated at the detailed design phase to ensure that EMPs fully addresses the potential impacts of the final project component designs.

39. The IEE concludes that the description of the feasibility designs of Tranche 1 of the ASDIP combined with available information on the affected environments is sufficient to identify the scope of potential environmental impacts of ASDIP. Providing significant changes do not occur to the design of one or more of the ASDIP components, that information on available water resources obtained at detailed design does not identify water shortages problems, and that new sensitive environmental or social receptor data are not discovered, the ASDIP will remain Category B for environment and will not require further detailed environmental impact assessment (EIA).

12 TABLE OF CONTENTS EXECUTIVE SUMMARY 4 I. INTRODUCTION 17 B. Background to IEE 17 C. Assessment Context 19 D. Structure of report 20 II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK 20 A. Environmental Impact Assessment 20 B. Legal Framework for Environmental Protection 21 C. ADB Safeguard Policy 27 III. DESCRIPTION OF THE ASDIP 27 A. Uvs Aimag 29 B. Bayan-Ulgii Aimag 77 C. Khovd Aimag 113 IV. DESCRIPTION OF AFFECTED ENVIRONMENTS 131 A. Physical Environment 131 B. Ecological Resources 169 C. Socioeconomic Profile 175 V. PUBLIC CONSULTATION 179 A. Identification of Stakeholders 180 B. Consultation Discussion Topics 181 C. Consultation Procedure 182 D. Results of Public Consultation in the Aimag centres and soum centres 183 VI. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATIONS 188 A. Benefits to the three Aimag centres and two soum centres 188 B. Impacts and Mitigations 189 C. Cumulative or Induced Impacts 197 D. Existing Facilities of Feasibility Design of Tranche 1 198 E. Climate Change 198 VII. ANALYSIS OF ALTERNATIVES 199 VIII. INFORMATION DISCLOSURE AND GRIEVANCE REDRESS MECHANISM 201 A. Information Disclosure 201 B. Grievance Redress Mechanism (GRM) 201 IX. INSTITUTIONAL CAPACITY & TRAINING NEEDS 204 X. CONCLUSIONS AND RECOMMENDATIONS 205 APPENDIX A: ORIGINAL RAPID ENVIRONMENTAL ASSESSMENT OF THE ASDIP 206 APPENDIX B: NATIONAL QUALITY STANDARDS RELEVANT TO ASDIP 211 APPENDIX C: COMPLETE PUBLIC CONSULTATION MEETING MINUTES 219 ENVIRONMENTAL MANAGEMENT PLANS

13 Table 1. Planned urban investments of ASDIP in Aimag and soum centres ...... 18 Table 2. Planned agrobusiness investments of ASDIP in Aimag and soum centres ...... 18 Table 3. Summary of laws relevant to the ASDIP...... 22 Table 4. Relevant international conventions to which Mongolia is signatory ...... 26 Table 5. Planned urban infrastructure investments of Tranche 1 in Ulaangom ...... 33 Table 6. Effluent quality standard (MNS 4943:2015) for discharge to environment...... 43 Table 7. Effluent standard for discharge to central sewage system (MNS 6561:2015) ...... 43 Table 8. Planned urban infrastructure investments of Tranche 1 in Umnugovi soum ...... 48 Table 9. Hay and fodder storage requirements ...... 58 Table 10. Example equipment and consumables required for laboratory support...... 59 Table 11. Estimated process industry water requirements of Agroparks ...... 63 Table 12. Comparison of Agropark heating alternatives ...... 65 Table 13. Applicable air emission standards (mg/Nm3) for new agropark heating plants ...... 66 Table 14. Plant rotation and production for feedlot ...... 69 Table 15. Proposed seasonal diversion of 3% of river to storage ponds ...... 75 Table 16. Plant rotation and production for feedlot ...... 77 Table 17. Planned urban infrastructure investments of Tranche 1 in Ulgii ...... 82 Table 18. Planned urban infrastructure investments of Tranche 1 in Deluun soum ...... 94 Table 19. Hay/fodder storage needs ...... 106 Table 20. Example required equipment and consumables for inspection laboratory...... 107 Table 21. Estimated process industry water requirements of Agroparks ...... 109 Table 22. Crop rotation and production for feedlot ...... 112 Table 23. Planned urban infrastructure investments of Tranche 1 in Jargalant ...... 116 Table 24. Hay and fodder storage requirements ...... 128 Table 25. Example required equipment and consumables for inspection laboratory...... 128 Table 26. Estimated process industry water requirements of Agropark ...... 130 Table 27. Climate data for Ulaangom, Uvs Aimag ...... 134 Table 28. Climate data for Umnugovi Soum, Uvs Aimag ...... 134 Table 29. Climate data for Ulgii, Bayan-Ulgii Aimag ...... 135 Table 30. Climate data for Deluun soum, Bayan-Ulgii Aimag ...... 135 Table 31. Climate data for Jargalant, Khovd Aimag ...... 136 Table 32. Air quality in Ulaangom, Uvs Aimag centre ...... 136 Table 33. Air quality in Ulaangom, Uvs Aimag ...... 137 Table 34. Air Quality in Ulgii, Bayan-Ulgii Aimag centre 2002-2018 ...... 137 Table 35. Air quality in Ulgii soum of Bayan Ulgii Aimag ...... 137 Table 36. Air quality in Jargalant, Khovd Aimag centre (last 17 years) ...... 138 Table 37. Air quality in Jargalant Soum, Khovd Aimag ...... 138 Table 38. National and international ambient air quality standards ...... 139 Table 39. Boiler Emission National Standard and WHO Guidelines ...... 139 Table 40. Ambient noise in Jargalant of Khovd Aimag ...... 140 Table 41. Ambient noise in Ulaangom of Uvs Aimag ...... 141 Table 42. Ambient noise in Ulgii of Bayan-Ulgii Aimag ...... 141 Table 43. Number of rivers, springs, and lakes in Khovd, Uvs and Bayan-Ulgii Aimags ...... 143 Table 44. Estimated available discharge (m3/sec) of source rivers for fodder farms ...... 146 Table 45. Mongolia surface water quality standards ...... 151 Table 46. Bacteria levels in Kharkiraa river and tributaries of Ulaangom ...... 153 Table 47. Bacteriology levels in Namir river upstream and downstream of Umnugovi ...... 154 Table 48. Bacteria levels in Khovd river upstream and downstream of Ulgii...... 154 Table 49. Bacteria levels in Chigertei river upstream and downstream of Deluun...... 155 Table 50. Bacteria levels in Buyant River in Jargalant, Khovd Aimag ...... 155 Table 51. Heavy metal content in five rivers at ASDIP project areas...... 156

14 Table 52. Heavy metal content in wastewater effluent ...... 157 Table 53. Chemical properties of groundwater at ASDIP project sites ...... 158 Table 54. Bacteria levels in groundwater at project sites ...... 159 Table 55. National soil quality standards for heavy metals ...... 166 Table 56. Summary of public consultations of affected persons and local government ...... 180 Table 57. Environmental components to guide discussions...... 182 Table 58. Guiding questions and information requests for stakeholder consultations ...... 183 Table 59. Summary of key discussion points of consultations in the five project sites ...... 184 Table 60. Estimated land acquisition and resettlement (LAR) ...... 189

Figure 1. Three western Aimags of Tranche 1 ...... 28 Figure 2. Aerial view of Ulaangom highlighting Bag 4 (red) and Bag 9...... 30 Figure 3. Bag 4 of Ulaangom ...... 31 Figure 4. Example khasha in Ulaangom representative of other Aimag centres ...... 32 Figure 5. Plan views of infrastructure investments of Tranche 1 in Ulaangom ...... 37 Figure 6. Planned improvements to public buildings and sanitation in Umnugovi soum ...... 47 Figure 7. Plan views of infrastructure investments of Tranche 1 in Umnugovi soum ...... 50 Figure 8. Location of Agropark just north of Ulaangom ...... 56 Figure 9. Location of Agropark at Umnugovi soum ...... 57 Figure 10. Irrigated fodder farm in Tarialan soum southeast of Ulaangom ...... 67 Figure 11. Aerial view of subprojects 1 and 2 of MET’s HMWM proposal in Tarialan ...... 73 Figure 12. Plan view of subproject 2 of HMWN and 500ha irrigation scheme ...... 73 Figure 13. Subproject 2 of HMWM in Tarialan soum ...... 74 Figure 14. Site of irrigated fodder farm north of Umnugovi soum ...... 76 Figure 15. Aerial view of Ulgii highlighting Bag 13 (red) and Bag 5...... 79 Figure 16. Bag 13 of Ulgii ...... 80 Figure 17. Plan views of infrastructure investments of Tranche 1 in Ulgii ...... 85 Figure 18. Planned improvements to public buildings and sanitation in Deluun soum ...... 93 Figure 19. Plan views of infrastructure investments of Tranche 1 in Deluun soum ...... 96 Figure 20. Location of Agropark south of Ulgii centre ...... 104 Figure 21. Location of Agropark at Deluun soum ...... 105 Figure 22. Location of irrigation scheme southeast of Ulgii in Buyant soum...... 110 Figure 23. Location of irrigated hay growing area in Deluun soum ...... 112 Figure 24. Aerial view of Jargalant highlighting Alagtolgoi (Bagh)...... 114 Figure 25. Alagtolgoi (Bag) of Jargalant ...... 115 Figure 26. Plan view of infrastructure investments of Tranche 1 in Jargalant ...... 119 Figure 27. Location of Agropark east of Jargalant...... 127 Figure 28. Soil types in Western Aimags ...... 133 Figure 29. Noise levels in Jargalant ...... 140 Figure 30. Noise levels in Ulaangom ...... 141 Figure 31. Noise levels in Ulgii ...... 142 Figure 32. Surface waters of western Aimag project areas ...... 144 Figure 33. BOD5 and pH levels in Gashuun river at Ulaangom ...... 147 Figure 34. Nutrient and pH levels in Namir River, Umnugovi soum ...... 148 Figure 35. Nutrient and pH levels in Khovd river at Ulgii ...... 149 Figure 36. Nutrient, pH, and BOD5 levels in Buyant river at Jargalant ...... 150 Figure 37. Nutrient and pH levels in Deluun soum, Bayan-Ulgii Aimag ...... 151 Figure 38. Groundwater resources of project areas ...... 159 Figure 39. Groundwater resources assessment map...... 161 Figure 40. Soil heavy metals in two locations in Jargalant ...... 162 Figure 41. Soil arsenic content in city’s market and powerplant area in Jargalant ...... 162

Figure 42. Soil heavy metals in polluted areas of Ulgii ...... 163 Figure 43. Soil heavy metals in Deluun ...... 164 Figure 44. Soil heavy metals in Ulaangom ...... 165 Figure 45. Soil Arsenic in Ulaangom ...... 165 Figure 46. Soil heavy metals in Umnugovi soum ...... 166 Figure 47. Permafrost in western Aimags ...... 168 Figure 48. Vegetation types of western Aimags ...... 169 Figure 49. Location of Altai-Sayan ecosystem ...... 170 Figure 50. Geographic range of Saiga antelope ...... 171 Figure 51. Protected areas in western Aimags ...... 172 Figure 52. Grievance Redress Mechanism ...... 203

I. INTRODUCTION

B. Background to IEE

1. The Aimags and Soums Green Regional Development Investment Program (ASDIP) will promote local economic development and improve basic urban services in priority Aimags of Mongolia4. The program will support the government in establishing inclusive, green urban development, resilient rangeland management, and sustainable agrobusiness values chains in select Aimags. For each Aimag the ASDIP will comprise a sequenced set of green urban and rural infrastructure developments, and agrobusiness investments, which are supported by implementation mechanisms, policy actions, and capacity building support. The ASDIP investments will reduce the vulnerability of the country to climate change and further pastureland degradation.

2. The four outputs5 of the ASDIP are:

(i) Climate-resilient, low-carbon, and attractive aimag and soum centers developed ; (ii) Climate-resilient, high-carbon sequestration, and sustainable herding rangeland management implemented ; (iii) Accessible financing for low-carbon and climate-resilient livestock value chains created (financial intermediation loan component); and (iv) Institutional capacity and policies for low-carbon and climate-resilient agro- territorial development strengthened .

3. The ASDIP will be financed with a Multi-tranche Tranche (MFF) loan modality. Tranche 1 and the focus of this IEE are the three western Aimag centres of Ulaangom of Uvs Aimag, Ulgii of Bayan-Ulgii Aimag, Jargalant of Khovd Aimag, and the two soum centres of Umnugovi and Deluun of Uvs and Bayan-Ulgii Aimags, respectively.

4. To facilitate the Outputs of the project the multisector ASDIP will invest in the following two major component areas:

(i) Basic urban infrastructure, services, and facilities; and (ii) Agrobusiness developments including improved pastureland management in the three selected Aimag centres and two soum centers. Tables 1 and 2 summarize the planned investments. The urban investments will occur primarily inside the Aimag and soum centres, whereas the agrobusiness investments will occur outside but near the Aimag and soum centres.

4 An Aimag is an administrative subdivision equivalent to province in Mongolia. There are 21 Aimags and Aimag centres. A soum is an administrative subunit of an Aimag, and its centre is called a soum center. There are 304 soums in Mongolia (not including Aimag centres). Soums have average populations of 4,000 and cover an average land are of 5,000 square kilometers. 5 From Fact Finding Mission (11/19) with national project counterparts (MCUD/ALAMGac, MOFALI/NFPUG)

Table 1. Planned urban investments of ASDIP in Aimag and soum centres

Urban Investments • Heating supply network • Ger housing redevelopment6 improvements • River and dyke embankments for • Road developments and drainage flood control • Improvements to wastewater collection, and new or completely • Irrigation networks upgraded treatment plants (WWTP)

Table 2. Planned agrobusiness investments of ASDIP in Aimag and soum centres

Agrobusiness Investments*

• Community-based micro-projects for • Agroparks PUGs7:

- animal husbandry, - Disease Free Establishments - hay protected areas & storage, - Meat processing facilities - small irrigation, - Laboratory & veterinary services - well water development, - Research Development Centre - small river/stream bridges - Business incubator centres - Processing industries

• Irrigation networks and fodder farms** * investments will be supported by infrastructure in Table 1 ** irrigation network and fodder farm not planned for Khovd Aimag

5. The ASDIP will be executed by the Ministry of Construction and Urban Development (MCUD) which will receive direct technical and policy support from the Ministry of Agricultural and Light Industry (MOFALI). The MCUD will oversee implementation of the urban infrastructure and services components of the project while the MOFALI and the Development Bank of Mongolia (DBM) will implement the agrobusiness and rangeland management components. The dual ministerial technical and policy support of ASDIP is essential for the successful and sustainable implementation of the two major, and very different project investments.

6. The ASDIP is a complex project with respect to environmental protection and safeguards. The institutional arrangements and responsibilities that will be established for the project will

6 sensu, Ulaanbaatar Affordable Green Housing and Resilient Urban Renewal Project (AHURP), TA 9030, 2017. 7 Pasture User Groups

18 ensure that sufficient agency and consultant staff are engaged to ensure the environment is well protected with minimal permanent negative impacts resulting from the project investments. The environmental management plans (EMP) for the three Aimags detail the required institutional arrangements and responsibilities (see below).

C. Assessment Context

7. The ASDIP remains category B for environment pursuant to ADB’s 2009 Safeguard Policy Statement8 and recent good practice sourcebook9. A category B project will have potential adverse impacts that are less adverse than those of a Category A project, are site-specific, largely reversible, and can be mitigated with an environmental management plan (EMP)10. The original Category B designation for ASDIP is maintained because the project components for Tranche 1 are not in, near, or will affect national or international protected areas, or critical wildlife habitat (SPS 2009) and are not inhabited by rare or endangered wildlife. Two initially proposed project sites were screened out of Tranche 1 during the site investigations because the proposed sites created Category A conditions being located inside a National Park and a Game Reserve. Also, the field investigations confirmed that the potential impacts of planned project components of Tranche 1 are largely short-term construction-related disturbances that can either be prevented or mitigated. The original Rapid Environmental Assessment (REA) of the ASDIP is found in Appendix A.

8. Pursuant to the Mongolian Law on Environmental Impact Assessment (2012), the ASDIP will require a Detailed Environmental Impact Assessment (DEIA) to guide and ensure safeguard compliance with the Law. The DEIA will be conducted following the completion of the PPTA for the ASDIP and will be prepared based on the future detailed designs of Tranche 1.

1. Impact footprints of ASDIP

9. The urban investments (Table 1) will occur inside established urban areas and on existing urban development impact footprints. Thus, the dominant environmental impacts of the urban developments in general will be the short-term disturbances and impacts of the construction and civil-works phase of the infrastructure investments. The planned improvements to water treatment, wastewater collection & treatment, solid waste management, and drainage and flood control will result in significant net positive impacts on the urban environments.

10. The planned agrobusiness investments (Table 2) will occur mostly outside urban areas in primarily pastureland areas. The agrobusiness investments of the modern Agroparks, animal husbandry, and livestock complexes of meat processing and animal health centres are new to Mongolia and thus will be new to the affected pastureland areas. Some agrobusiness investments were screened out of sensitive ecological areas during the field investigations (see Chapter VI).

2. Financial Intermediary Implementation

11. Some of the agrobusiness components of the ASDIP will be implemented by three private sector financial intermediaries (FI) as per SPS (2009) which are defined by the following commercial banks: the Asset Management Corporation (AMC) of the Development Bank of Mongolia (DBM), Xac Bank, and Khan Bank. Safeguard direction and support for the participating

8 ADB. 2009. Safeguard Policy Statement. Manila. 9 ADB. 2012. Environmental Safeguards, A Good Practice Sourcebook, Draft. Manila. 10 Footnote 5, pg 19.

19 financial intermediaries (PFI) will be provided by a separately prepared Environmental and Social Management System (ESMS) that the PFIs will follow to supplement their in-house ESMSs.

3. Assessment Framework

12. As a MFF loan project that will be disbursed in a series of three tranches, the ASDIP will require an Environmental Assessment and Review Framework (EARF) to guide project counterparts with their assessment and safeguard developments of the subsequent tranches of the ASDIP11. The EARF for the ASDIP was prepared separately.

D. Structure of report

13. A single IEE was prepared for the three Aimags including both soum centres. This report on the IEE follows closely the format of an EIA outlined in Annex 1, Appendix 1 of the SPS (2009). The results of the IEE are presented by Aimag centre / soum centre. Common environments and assessment results are presented together in order to prevent or minimize redundancy in the assessment. However, three single environmental management plans (EMP) have been prepared for the three Aimags and constituent soum centres.

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

14. The ASDIP will be executed by the Ministry of Construction and Urban Development (MCUD) and be implemented jointly with Ministry of Agricultural and Light Industry (MOFALI), and the Development Bank of Mongolia (DBM). The DBM will oversee the implementation of Agrobusiness component of ASDIP to the private sector through three Financial Intermediaries (FI) defined by the Asset Management Company (AMC) of DBM, Xac bank and Khan Bank. The MCUD will oversee implementation of the urban infrastructure and services components of the project while the MOFALI and DBM will implement to agrobusiness and pastureland management components. The dual ministerial technical and policy support of ASDIP is essential for the successful and sustainable implementation of the two major, and very different project components.

A. Environmental Impact Assessment

15. Environmental impact assessment in Mongolia is guided by the Law on Environmental Impact Assessment (2012) which is administered by the Ministry of Environment and Tourism (MET). The EIA protocol for all projects is two tiered defined initially by a general EIA (GEIA) - initial screening, followed by either a full detailed EIA (DEIA) or an Environmental Management Plan (EMP). The initial GEIA is normally conducted by the MET which identifies the required level of further impact assessment of a project. For major projects the GEIA prescribes the follow-up requirement a DEIA, whereas for minor impact projects, the GEIA can prescribe only an environmental management plan (EMP) be prepared for the project.

16. The initial step in the EIA process is the submission by the project owner of an application to the MET or provincial/municipality environment department for a GEIA to be conducted on the proposed project. The initial application is comprised of the following information components: i) original baseline description of the affected environments; ii) description of the detailed design of the project including drawings; and iii) technical and economic justification for the project. As

11 Footnote #4.

20 introduced above, the possible outcomes of the GEIA are:

(i) project may be implemented without conducting a detailed environmental impact assessment (DEIA) or EMP; (ii) project may be implemented without conducting a detailed environmental impact assessment (DEIA), but with specific conditions and/or impact mitigation measures specified in an EMP; (iii) project requires a full DEIA; or (iv) project rejected on grounds of non-conformity with relevant legislation, or the adverse impact of the equipment and technology on the environment are too great, or absence of the project in the land management.

17. Finally, in accordance with the EIA Law (2012) for minor-impact projects the initial GEIA of a project can be prepared by the provincial environment department or the municipality office in which the project will occur. The provincial department or municipality then reviews and approves the requirements specified by their GEIA which is normally an EMP. This approach facilitates a faster review of any environmental issues of projects which is preferred for projects that are relatively benign with respect to environmental impacts.

18. The Ministry of Construction and Urban Development (MCUD), who is the owner of the ASDIP, is responsible for preparing and submitting an application for the initial GEIA to be prepared by the MET. As part of the environmental due diligence of the ASDIP the national consultant will prepare and submit the required GEIA application to the MET using the FS design for Tranche 1. Given the complexity of the ASDIP, the outcome of the GEIA will most likely be the requirement for a DEIA. Implementation of the DEIA, however, must wait and be based on the detailed designs of Tranche 1 of ASDIP. When the GEIA application is submitted to the MET the MET will also review and approve the IEE.

19. The GEIA application is very helpful to the ADB IEE and overall environmental safeguard requirements of the SPS (2009). In particular, are the original environmental baseline data and information that is collected and data for the GEIA application. This information strengthens the IEE and supporting EMPs.

B. Legal Framework for Environmental Protection

20. The Government of Mongolia has established specific laws and environmental standards for the protection of the environment, resources, and protected areas, and for pollution management. The elements of the broader legal framework of Mongolia that are relevant to the ASDIP are summarized in Table 3. The relevant national environmental quality and technical standards for ASDIP are listed in Appendix B. The GEIA for a nationally or donor funded project that is prepared by the MET that is followed by either the preparation of DEIA or EMP by a licensed Mongolian EIA Institute is the single comprehensive domestic safeguards requirement. The environmental due diligence conducted by ODA or donor agencies such as the ADB are not required to be reviewed and endorsed by the government.

Table 3. Summary of laws relevant to the ASDIP.

National Law Relevant Responsible Ministry / Agency Chapter

1. Law on the Development Policy Planning Ministry of Urban Development and Construction (MCUD)

Convene public consultation with the affected communities on the scope and 19 impacts of policies, strategies and programs. 2. Law on Water Ministry of Environment and Tourism (MET)

Protection of water resources 22

Protection of water resources from pollution: Dismiss water use rights of entities in case of excessive discharge of wastewater or non-compliance with applicable 24 standards

The Government shall establish fees for water pollution and depletion of water 25 resources

Conditions for termination of the water use contracts 29

Obligations of water users 30

Water use fees and tariffs 31 3. Law on Fees for Water Pollution MET

Determination and registration of water polluters 4

Subject for water pollution fees 5

Exemptions and discounts from water pollution fees 8

Operations of urban water supply and sewerage network 9

Tasks and compositions of the Regulatory Commissions for Water Supply and 9 Sewerage Network

Technical specifications for the operations of urban water supply and sewerage 11 networks

Special permits and licenses 12

Contracts 13

Obligations of the service providers 14 The service provider shall not be allowed to impede consumers rights without legal basis and reject applications for the technical specifications

Users rights and obligations 15

Conditions for suspension of water supply and sewerage services 16

Protection zone for sewerage line and it is not allowed to construct facilities and 17 utilities within 6 meters from sewerage line.

The technical requirements for locations of wastewater treatment plants 18

National Law Relevant Responsible Ministry / Agency Chapter MET and MCUD 4. Law on Land

Transfer of the land title 39

The land leaser shall release land on the expiration of land possession certificate 41

The public land owner shall pay compensation for premature termination of the 43 land lease agreement

Use of land for special and public purposes 46

Use of third party land for temporary and transit uses 48

The requirements for proper use of land 50

Public health requirements for land use 51

Proper use and protection of urban land 56

Compensation for land damage 61 5. Law on Re-Development of Urban Settlements MCUD

The re-development of urban settlements shall comply with the requirements and principles set forth in the Paragraph 4.1 of the Law on Urban Planning. The top 5 priority is to represent interests of the residents.

Types of re-development activities shall include 12.1.3 re-development of ger 12 areas land

Regarding planning of the ger areas 17

Rights and obligations of the developers 23

Tripartite agreement shall be made between the land possessor, developer and 24 respective administrative unit Governors

The land title shall be transferred to the developer in accordance with terms and 25 conditions of the tripartite agreement 6. Law on Land Privatization MCUD

Rights and obligations of the land owner 27

Termination of the land ownership rights 31

Re-possession of the land right by the state 32

Conditions for the servitude 33

Confiscation of the land 35

Conditions for resettlement 37 7. Law on Land Fees MCUD

Determination of the Land Use Fee payers 3

The Subjects to Land Fees 4

National Law Relevant Responsible Ministry / Agency Chapter

Exemptions from land fees 8

Liabilities of land fee payers 12 8. Law on Environmental Protection MET

Rights and obligation of citizen with regard to environmental protection 4

Immunity of natural resources 6

Protection of environment from pollution 21

Rights and obligations of entities and organizations 31

Compensation for damage to environment 49, 57 9. Law on Soil Protection and Preventing Desertification MET

Soils protection measures 6

Compensation for damages to soil 9 10. Law on Environmental Impact Assessment MET

Detailed EIA 8

Environmental Management Plan (EMP) 9

Obligations of program and project proponents 14

Rights and obligations of the licensed EIA entity 15

Financing institutions shall refrain from supporting project with adverse 17 environmental and public health impacts

Public consultation process in EIA 18

Compensation for damages from non-compliance with EIA and EMP 20 MET 11. Law on Air

Rights and obligations of individuals and organizations 9

Air quality data 12

Principles and measures to reduce air pollution 13

Critical zone to improve air quality 15

List of prohibited activities in the critical zone 16

Air emissions 20

Technical requirements for construction works to protect air quality 21 12. Law on Fees for Air Pollution MET

Registration of air polluters 4

Physical factors to determine air polluters fee 6

Fees 7

National Law Relevant Responsible Ministry / Agency Chapter

Exemptions and discounts of fees 8 13. Law on Construction MCUD

Permits for construction 7 11,12, Technical requirements for design, construction materials and civil works 13

Requirements for construction sites 16

Servitude in accordance with civil code and other applicable legislations 17

The client for construction projects shall not be entitled to modify the original 37 design without prior consent of the author

14. Law on Wildlife MET

Protect wildlife 6

Compensation for damage to wildlife 37 MET 15. Law on Plant Protection

Obligations of individuals and organizations on plant protection 13

Plant quarantine 14 Ministry of Education, 16. Law on Protection of Cultural Heritage Culture and Science (MECS)

Registration and database on cultural heritage 21

Any activities related to mining, agriculture and construction of infrastructure are 38 prohibited in historical sites. 17. Law on Work and Health Safety Ministry Labor and Social Welfare (MLSW) and Ministry of Health (MH)

Work safety requirements for construction and production sites 7

Safety requirements for work equipment and tools 9

Fire safety requirements 13

Obligations of the employers with regard to work safety and public health 28

Response to industrial disaster and employment injuries 29

State compliance inspections 33 National Emergency 18. Law on Fire Safety Management Agency (NEMA)

Rights and obligations of individuals on fire safety 16

National Law Relevant Responsible Ministry / Agency Chapter

General requirements for fire safety 19

Technical requirements for fire control equipment 23 19. Law on Waste 2016 MET

General rights and obligations of citizen and entities with regard to solid waste 9

Disposal of solid wastes 11

Collection and transportation of solid wastes 12 MET 20. Law on Toxic and Hazardous Chemicals

Basic requirements for handling of toxic and hazardous chemicals 13

Risk assessment 17 21. Law on Hygiene MH

Sanitary requirements to environment 4

Sanitary requirements to urban planning and construction 5

Sanitary requirement to work place 6

21. Mongolia is signatory to international environmental treaties and conventions which provide a comprehensive legal framework related to environmental management. Table 4 outlines these conventions.

Table 4. Relevant international conventions to which Mongolia is signatory

Responsible International Convention / Protocol Joined Ministry or Agency

MET United Nations Framework Convention on Climate Change 1993 (r) MET Kyoto Protocol 1999 (a) MET Convention on Biological Diversity 1993 (r)

Ramsar Wetlands MET Vienna Convention for the Protection of the Ozone Layer 1996 (a) MET Montreal Protocol on Substances That Deplete the Ozone Layer 1996 (a) MET Washington Convention on International Trade in Endangered 1996 (a) Species of Wild Fauna & Flora (CITES) MET, Stockholm Convention on Persistent Organic Pollutants Ministry of 2004 (r) Foreign Affairs (MFA) (a) accession; (e) entry into force; (r) ratification.

C. ADB Safeguard Policy

22. The ADB safeguard policy statement (SPS, 2009) along with the recent Good Practice Safeguard Sourcebook (2012) clarify the rationale, scope and content of an environmental assessment. The SPS (2009) and Sourcebook (2012) are supported by the comprehensive World Bank Group/IFC Environmental Health and Safety (EHS) Guidelines (2007) for development projects. The IFC-EHS guidelines provide directives for environmental protection and safety for a range of sectors relevant to the ASDIP including water and sanitation, liquid and solid waste management, agrobusiness including animal product processing, and road development which provide general and industry -specific Good International Industry Practice (GIIP) guidelines. The IFC-EHS guidelines also provide environment quality standards for air, water, effluent, and emissions. When national environmental standards are less stringent than IFC standards, the relevant IFC standard is used.

23. Projects are initially screened to determine the level of assessment that is required according to the following three environmental categories (A, B, or C). Category A is assigned to projects that normally cause significant or major environmental impacts that are irreversible, diverse or unprecedented such as hydroelectric dams (an Environmental Impact Assessment is required). Category B projects have potential adverse impacts that are less adverse than those of category A, are site-specific, largely reversible, and for which mitigation measures can be designed more readily than for category A projects (an Initial Environmental Examination is required). Category C projects are likely to have minimal or no negative environmental impacts. An environmental assessment for Category C projects is not required but environmental implications need to be reviewed and reported. As indicated above the ASDIP is category B for environment. The structure of the required IEE follows Annex 1 of Appendix 1 of the SPS (2009).

24. The SPS (2009) requires a stakeholder consultation strategy be developed that embodies the principles of meaningful engagement, transparency, participation, and inclusiveness to ensure that affected and marginalized groups such as women and the poor were given equal opportunities to participate in the design of the project. To support stakeholder engagement a grievance redress mechanism (GRM) is required for the ASDIP. The GRM ensures that issues or concerns of potentially affected persons will be heard easily by the authorities.

III. DESCRIPTION OF THE ASDIP

25. The description of the components of ASDIP was prepared by the engineering and agricultural teams which they submitted as part the project final report12. The ASDIP is comprised of the following two major types of investment:

(i) Improvements to basic urban infrastructure and services including ger housing and community buildings; and (ii) Development of agrobusiness facilities including improved pasture management.

26. Tranche 1 of the ASDIP will occur in the three western Aimags of Uvs, Bayan-Ulgii, and Khovd (Figure 1) in the Aimag city centres of Ulaangom (Uvs), Ulgii (Bayan-Ulgii), and Jargalant (Khovd). Investments will also occur in the soum centres of Tarialan and Umnugovi (Uvs Aimag),

12 Final Report on ASDIP, April 2020, 5 Vols + Annexes

27 and Deluun and Buyant (Bayan-Ulgii Aimag). A soum centre of Khovd Aimag is not included in Tranche 1.

Figure 1. Three western Aimags of Tranche 1

**From ASDIP Draft Final Report.

Structure of project description

27. The description of the project is structured by the three Aimags in the following order: Uvs, Bayan-Ulgii, and Khovd including the constitutent Aimag soums13. Within each Aimag section the Infrastructure components are presented first followed by the Agrobusiness components.

28. In the Aimag centres the infrastructure components consist: (i) of ger housing redevelopment; and (ii) other basic infrastructure such as heating, wastewater, water supply, electricity, roads, solid waste etc which also support the ger housing redevelopments. In the soum

13 A project soum is not included for Khovd Aimag.

28 centres the infrastructure components are defined by: (i) public building improvements; and (ii) other basic infrastructure such as heating, wastewater, water supply, electricity, roads, solid waste etc which also support the public building redevelopments.

29. In both the Aimag and soum centres the agrobusiness components consist of: (i) Pasture User Group Support; (ii) Agroparks; and (iii) Irrigation schemes and fodder farms. Unlike the infrastructure components the agrobusiness components in the Aimag and soums centres are presented together because the components are the same. The only deviation is in Tarialan soum (Uvs Aimag) and Buyant soum (Baya-ulgii Aimag) in which only irrigation schemes and fodder farms will be developed.

A. Uvs Aimag

Overview

30. The improvements to basic urban infrastructure, and the development of agrobusiness facilities will occur Ulaangom; the centre of UVs Aimag and at the selected soum centres of Umnugovi and Tarialan. Unlike the infrastructure and agrobusiness investments in Umnugovi soum, only irrigation schemes will be developed in Tarialan soum. Most of the urban infrastructure will occur inside both urban centres while the agrobusiness activities will occur just outside both urban areas. Urban infrastructure planned for Ulaangom and Umnugovi soum is presented first followed by planned agrobusiness investments.

1. Urban Infrastructure

a. Ulaangom

31. Urban infrastructure investments in Ulaangom are defined by the following 2 main components:

(i) Ger area housing redevelopment & services rehabilitation; and (ii) a complex of basic infrastructure and utility service improvements throughout Ulaangom comprised of water supply, heating, wastewater collection & treatment, electricity, communications, solid waste management, roads & drainage, and flood control.

i. Ger area housing redevelopment in Ulaangom

32. Figure 2 provides an aerial view of Ulaangom which highlights the perimeters of urban districts of Bag 4 (red) and Bag 9. Ger housing redevelopment is planned for Bag 4 and optionally in Bag 9. Ger redevelopment in Bag 9 may wait until Tranche 2 which will be determined at detailed design stage of Tranche 1. Redevelopment of housing and utility services will occur along a selected pilot road in Bag 4 (Figure 3). The pilot road will be upgraded and new and upgraded utility trunk lines to service the redevelopment area will be installed along the right-of-way (ROW) of pilot road.

33. Redevelopment of ger area housing will occur in individual khashas and will consist of small 1-2 story apartments that are constructed with modern energy efficient construction materials. The apartments will be serviced with hot water heating, wastewater collection disposal, electricity, and solid waste recycling facilities. Technical Units (TU) comprised of toilets, bathing and laundry facilities will be included.

Figure 2. Aerial view of Ulaangom highlighting Bag 4 (red) and Bag 9.

Figure 3. Bag 4 of Ulaangom14

(a) Bag 4 showing pilot road (white line) (b) Ger housing redevelopment along pilot road

**Map and schematic provided by project architect

34. Owners of a khasha plot will be able to swap (cede) all or some of their khasha property for an apartment and/or TU. The options for participation with ger housing redevelopment that were determined from focus group discussions (FGD) with khasha owners is summarized as follows and shown in Figure 3b.

1. No land swap for an apartment but may buy serviced TU 2. Partial land swap for small apartment including TU 3. Total swap of khasha land for multi-family apartment and TU. 4. No decision on participation

35. For all ger redevelopment in Ulaangom and in the other Aimag centres of Ulgii and Jargalent there is not a minimum required level of participation of individual khasha owners. Individual owners can cede entire land for upgraded housing or services, or not participate at all. Also, there is not a minimum requirement of the number of khashas that must participate in the ger redevelopment program in the Aimag centres. The level of collective khasha interest

14 Bag 4 perimeter plot, pilot road ger development provided by project architect

31 determines the scope of redevelopment including infrastructure support. The strict definition of khasha in the Aimag centres is fenced area. Traditionally land plots allocated households by government is defined by the wooden fence, or khasha as exemplified in Figure 4.

Figure 4. Example khasha in Ulaangom representative of other Aimag centres

ii. Basic urban infrastructure for Ulaangom

36. The planned urban infrastructure and utility services investments of Tranche 1 in Ulaangom are summarized in Table 5. Figure 5 shows plan views of the infrastructure investments for Ulaangom. Schematic drawings of planned infrastructure will be prepared for the detailed designs of Tranche 1. The scope of infrastructure investment in Ulaangom includes utility services to re-developed ger housing of Bag 4 and optional redeveloped ger housing of Bag 9, and some of the agrobusiness investments for Ulaangom. (see below).

Table 5. Planned urban infrastructure investments of Tranche 1 in Ulaangom15

Activity Description Details

Type Type

Rehabilitate buildings, pumps, controls and related equipment at two 200 m3/h, lining DN150-250, Water Resource and Distribution System locations, including chlorination systems; Replace connecting 2,150m Upgrades pipeline between sources. Rehabilitate leaking water mails with internal lining. New pipelines with manholes to connect the Bag 4 and Bag 9 DN200, 190m, DN200, 260m New Water Pipes to Support Ger Area rehabilitation areas to the existing water supply network adjacent to Water Water Rehabilitation existing roads. Water source well for new Agropark, including submersible pumps, Depth 60 m, 2 wells, DN150, New Well and Pipes to Support the controls and electrical connection, with a small reservoir and 500m

Agropark wellhouses, with pipelines to connect the various Agropark facilities.

New wastewater treatment facility (WWTP) to be constructed at 3,000 m3/d New Wastewater Treatment Plant, collector previously designated location north of the city. Gravity sewer main to pipeline, pump station rehabilitation connect the existing city collection network with the new WWTP. Existing wastewater pump station will be demobilized. New gravity sewers with manholes to support project facilities and to DN200, 2,450m, DN300, Sewer pipelines to support Ger Area replace some existing lines larger new pipes of higher capacity. 2,300m Rehabilitation and Urban Areas Lines will be installed mostly adjacent to existing roads. Plant capable of treating industrial wastewater generated by the Agro- 250 m3/d, DN200, 750m

Wastewater Wastewater Treatment Plant and Pipelines Park to standards appropriate for disposal by infiltration, tentatively for the Agropark located 250 m north of the park. Includes gravity sewers to connect the various Agropark facilities with the new wastewater treatment

plant. State Heating Plant Circulation Pump Possible replacement of heating plant circulation pump 200 m3/h Upgrades Heating distribution substations will be installed at previously 2@4 gcal/hr + 3@ 1,2 & 4 designated locations. Facilities are of a standards configuration and gcal/hr for ger rehab; are necessary to control heat and water distribution to area buildings. DN100*2+DN100, 330m, New Heating substations and heating Substations will be owned by the State and operated by the DN150*2+DN100, 730m, Heating lines to support ger area upgrading organization responsible for operating the housing areas. Heating DN200*2+DN200, 1080m, supply and return lines will be installed in 1500mm concrete channel DN250*2+DN200, 610m, with potable water line, including valve stations and access manholes. DN250*2, 420m

Lines will be installed adjacent to existing roads. 15 From engineering description of Annex 3, Vol II of ASDIP Final Report

15 From engineering description of Annex 3, Vol II of ASDIP Final Report

Activity Description Details

Type Type

New coal-fired heating plant to serve the Agropark with heat and hot 1-2 gcal/hr New Heating Plant and Heating Lines to support the water and connecting pipelines to the Agropark facilities with valve DN100*2, 300m Agropark (see section 2b below on Agroparks) stations and manholes. Plant will meet national and international operations and environmental protections standards ASDIP will introduce heat meters as a means to initiate usage- 150-DN32, Heat Metering in Ulaangom based heat tariffs that will serve as a incentive to improve energy 100-DN50, conservation and building energy efficiency. 50-DN80 Line and distribution station upgrades (on existing poles) to Western 110 kV, 11.9 km, Power Grid to increase capacity and efficiency, which will allow 2*25,000 kVa transformers New feeder from Western Power Grid and upgrading of aging distribution infrastructure 10kV from 6kv to allow with switchgear Distribution Substation Upgrades new installations (including Bag 4 & 9 ger area rehabs) to be served with the current 10kv standard. Includes new switchgear and will be installed within the existing distribution site. Replacement and upgrading of deteriorated overhead distribution 24 km line upgrades; lines, with pole replacements as required, and replacement of some Substations: Distribution Line and Substation Upgrades aging 6kV/0.4kV transformers to 10kV/0.4kV, at existing locations. 20-400 kVa This program can be continued in Tranche 2-3 Electrical Electrical 10-630 kVa 5-1000 kVa Power Lines and Substations to support Ger Overhead distribution lines with new poles and transformers for Bag 10 kV, AC-70, 0.95 km & Area Upgrading 4 Ger Area Rehabilitation area, mostly located within the rehab 0.9km; area. Substations: 4@400kVA Power Line Upgrade and Substation to support Replacement of old overhead 6kV line and substation to improve 10 kV, AC-70, 1.5 km; 630

Agropark reliability and provide needed capacity for the Agropark facilities kVA substation

48 core, 158 km General Aimag Center and Ulaangom-Omnogovi Upgrade fiber optic capacity and improve reliability of data Communications Upgrades transmission to and from the aimag center. New communications tower and new underground optic cable to Omnogovi soum

Upgrades to Support Ger Area Upgrade capacity and improve reliability of data transmission to and 48 core 2,500m, 1000 Rehab Communications from the soum center and support the Rehab Areas. user, 48 core, 3,600m 1000 user

Communications Upgrade capacity and improve reliability of data transmission to and Upgrades to Support the Agropark 48 core 4,550m, 500 from the soum center and support the Agropark user

Communications

Upgrade and pave 1.8km of existing road for connection to nearest Upgraded road to Agropark asphalt, 1.8 km

paved road, with drainage and street lighting.

Roads

Activity Description Details Type Type

Coordinated improvements to the city drainage facilities in 3,120m Drainage improvements for Urban Center accordance with the Drainage Plan prepared by the ASDIP TA Construct lined channels and culverts so that drainage water from 2,320m the rehabilitated area and immediate vicinity can be directed away

Drainage improvements to Support Ger Area Rehab from adjacent settlement areas. Does not include drainage facilities within the rehab areas and these designs must be coordinated. Preparation of a comprehensive drainage plan for the urban areas of Ulaangom that will calculate drainage flows, develop design TA for Urban Area Drainage Plan Drainage criteria and identify improvement projects needed to implement

the plan and guide local planners Following the existing plan made by the Aimag, the existing 5 km flood Flood protection protection levee will be repaired and strengthened with erosion embankment – 4004m protection. The levee will be provided with a bike-pedestrian access long, 3-4 m high; Lake way that will serve for restricted maintenance access. The existing embankment is 1050m Rehabilitate Levee, develop lake and provide pond at the northern end of the levee will be improved with long and 5-6m high. overflow scheme embankment protection and a connection with a flow control Materials: 3050m3 rock structure to the planned channel to the Agropark area. A small for lake embankment recreational green park and environmental enhancements will be protection, 9750m3 soil included. The slopes of levee will be vegetated down and into the and gravel for shallow nearshore of levee lake to create a small wetland area for embankment repairs wildlife and public interest. An overflow from the lake into existing and concrete irrigation channel will be installed to manage flood events. aggregate, 101,600 m3 accumulated sediment will be removed from the lake. Rehabilitate 2.5 km of existing irrigation channel and construct 2.9 Earth Channel Rehab km of new channel to connect the pond at the northern end of the 2,500m, 0.5*1.0 m; flood protection levee with the storage pond at the Agropark. The Concrete Channel

Flood Protection Flood Channel Rehabilitation and Supply to Agropark pond will hold 1000 m3 of water and will be used for irrigation and 2,900m, 0.6*0.9 m; livestock watering, with separate distribution piping from the potable Pond with HDPE liner water system supplied by the well (1.1c). It will be constructed with and cover 1000m3 an impervious HDPE liner and a floating cover to restrict evaporation and extend the time that the pond can be used in cold

weather.

TA support to first phase program to provide the aimag center with an environmentally sound and sustainable solid waste program: Characterization of existing conditions - Includes physical situation TA on site assessment, business plan, formalize (soils, groundwater, topography) and the environmental. collection, recycling Initiate formulation of a solid waste management plan at the local level. Recycling plan. T2-3 Investment Program

First phase of project works anticipated as follows: Existing 70ha site • Identify area to designate for permanent development and reduced to 15 ha

Solid Waste Solid Initial cleanup, priority actions, fencing and access consolidation of existing waste and construct a fence with fenced area control access control and security. • Priority activities to correct current bad practices. • Initiate site cleanup

• Pilot containerized waste collection

Figure 5. Plan views of infrastructure investments of Tranche 1 in Ulaangom a) Water & Wastewater

37 b) Heating

38 c) Electricity and Communications

39 d) Flood Protection and Drainage

40 e) Location and Cross Section of Dyke Rehabilitation, and Existing Levee Reservoir

(i) Additional context for most environmentally sensitive infrastructure from Table 5

(excerpted from engineering description from Vol II of ASDIP Final Report)

Wastewater:

37. The present wastewater treatment plant (WWTP) in Ulaangom is at the site of mechanical plant constructed in 1986 which became non-functional during economic transition in the early 1990's, and which today provides little treatment (25-27% BOD16 reduction). The plant is affected by drainage water during summer rainstorms due to open manholes rather than by infiltration in

16 Biological Oxygen Demand reduction is a standard measure of WWTP effectiveness. to the piping system. There is one lift station with screening equipment that is in need of repairs and upgrading and a pressure sewer that conveys wastewater to the WWTP. The pressure line terminates at small surge tank with pump that is part of the old mechanical plant site that supplies the settling ponds. All equipment is in poor condition. Construction of the new WWTP will allow the existing facilities to be decommissioned.

38. In addition to a new WTTP, the collection network in the developed area of the city will be upgraded and expanded by replacement of 1.45 km of existing lines with new DN400 pipes. New gravity sewer lines will be required to serve the Ger Area Rehabilitation projects in Bag 4 (DN200) and optional Bag 9 (DN300).

39. The Agropark (see below) will generate wastewater not suitable for treatment by the city system which will be designed for domestic wastewater only, so the agropark will have its own small treatment plant (250 m3/day) on-site that will be specifically designed to treat the Agropark waste, which then can be safely discharged to the environment. A small collection network will connect the Agropark facilities to the new plant.

40. A site for new wastewater plant (Figure 5a) has been identified by the government which is located in an open area northeast of the city. Surface soils at site are dry and sandy with apparent deep groundwater. There is a small stream about 300m from the site that may be used for effluent disposal that drains to Uvs Lake about 22km away. The new WTTP will be designed to meet national and international operations and environmental protection (i.e., treated effluent) standards as Uvs Lake is a national protected area. The design of the plant will be done during detailed design stage of Tranche 1.

Design of WWTPs

41. The WWTPs of all three Aimag centres (Ulaangom, Ulgii, and Jargalant) and at agroparks are envisioned to follow the technology and designs developed for ongoing ADB projects in Mongolia. Those plants are fixed film, activated sludge processes that will meet current Mongolian effluent discharge standards (Table 6).

42. The four agropark pre-treatment plants (see below) will have mechanical screening and grease removal equipment followed by a chemical flocculation and precipitation treatment stage using Aluminum Sulphate or Polyaluminum Chloride (PAC), as needed. Effluent from the mechanical and chemical stages will be conveyed to either an on-site biological stage or municipal plant as described above and will meet MNS 6561:2015 which establishes requirements for municipal WWTP influent.

Treated effluent quality and standards

43. The treated effluent standard for discharge to the environment (MNS 4943:2015) and for discharge to a central sewer system (MNS 6561:2015) for Mongolia were revised in 2015 and now align closely with European Standards and are appropriate for Mongolian conditions. These standards will be used for the new WWTPs which are listed in Tables 6 and 7. These effluent standards are the standards used for the Darkhan WWTP (2020, ADB Project #37697-025).

Table 6. Effluent quality standard (MNS 4943:2015) for discharge to environment.

Parameter Unit Permissible Parameter Unit Permissible level level Water temperature C 20 Cobalt (Co) mg/l 0,02 pH - 5-9 Manganese (Mn) mg/l 0,5 Odor sense no odor Molybdenum (Mo) mg/l 0,05 Suspended solids (SS) mg/l 30 Mercury (Hg) mg/l 0,001 Biochemical oxygen mgO/l 20 Nickel (Ni) mg/l 0,2 demand (BOD) Chemical oxygen mgO/l 50 Selenium (Se) mg/l 0,02 demand (COD) Permanganate mg/l 20 Strontium (Sr) mg/l 2 Total dissolved solids 1000 (minerals) mg/l Total iron (Fe) mg/l 1 Total nitrogen (TN) mg/l 15 Uranium (U) mg/l 0,05 Total phosphorous mg/l 1.5 Lead (Pb) mg/l 0,1 (TP) Hydrogen sulphide mg/l 0.5 Total Chromium (Cr) mg/l 0,3 (H2S) Hexavalent Chromium Residual chlorine (CI) mg/l 1 mg/l 0,01 (Cr+6) Barium (Ba) mg/l 1.5 Aluminum (AI) mg/l 0,5 Beryllium (Be) mg/l 0,001 Total arsenic (As) mg/l 0,01 Boron (B) mg/l 0,5 Zinc (Zn) mg/l 3 Vanadium (V) mg/l 0,1 Antimony (Sn) mg/l 0,05 Copper (Cu) mg/l 1 Total cyanide (CN) mg/l 0,05 Cadmium (Cd) mg/l 0,03 Free cyanide (CN) mg/l 0,005 Fat oil mg/l 5 Fhenol (C5H20H) mg/l 0,05 Mineral oil mg/l 1 Benzapyren mg/l 0,005 Surface active agents mg/l 2,5 Trichloroethylene mg/l 0,2 Faecal coliforms 0 Tetrachloroethylene mg/l 0,1

Table 7. Effluent standard for discharge to central sewage system (MNS 6561:2015)

Parameter Unit Permissible Parameter Unit Permissible level level Water temperature C +30 Nickel (Ni) mg/l 0.5 pH - 6-9 Selenium (Se) mg/l 0.1 Suspended solids (SS) mg/l 400 Total iron (Fe) mg/l 3.0 Biochemical oxygen mgO/l 400 Lead (Pb) mg/l 0.2 demand (BOD) Chemical oxygen mgO/l 800 Aluminum (AI) mg/l 0.5 demand (COD) Ammonium ion mg/l 15 Total Chromium (Cr) mg/l 1.0 Total nitrogen Hexavalent Chromium mg/l 30 mg/l 0.05 (TN/NH3+NO2+Norg (Cr+6) ) Source: Darkhan WWTP, Updated IEE (June 2020), ADB Project Number: 37697-025

Heating:

44. The developed portions of Ulaangom are served by two district heating plants. The original plant, which was privatized after the 1990 economic transition, and was constructed in 1986 and was converted from steam to hot water production in 2003. The plant has a capacity of 39 MW and consumes 12-18 thousand tons of coal per year. The company has maintained and upgraded portions of the piping network with their own resources. The private company operates their plant and portions of the distribution piping network, which is owned by the State. The State- owned heating plant was commissioned in 2014 and provides heat to approximately 1500 families and 340 organizations. 75% of the families and 25% of the organizations are also supplied with hot water.

45. The Ulaangom heating plants operate only in the cold months (1 October to 1 May), so residents and organizations must generate their own hot water when the plants are not running. This is commonly done with electric water heaters. The portion of the heating network served by the State heating plant is 3-10 years old and is in good condition. Heating in the ger areas and places outside the service area of the heating network is typical of all urban ger areas in Mongolia where heating and cooking are by residential stoves that burn coal, wood or dung. Larger structures heat by unregulated, low-pressure heat-only combustion boilers that primarily use coal.

46. The operations of the two heating plants and the distribution networks is generally satisfactory to providing heat to the city and supporting the planned ASDIP improvements without additional interventions by the project. The State-owned heating plant is in need of upgrades to its circulation pumps, but no other actions are planned at either heating plant.

47. The planned Agropark below is located far enough from the city heat distribution network that a separate small, coal-fired heating plant is the most economical means of providing heat (see section 2b on Agroparks below). There will be heat distribution pipes installed in concrete channel that will serve the various Agropark facilities. The separate heating plant will allow an operating schedule that conforms to the needs of the Agropark.

48. The Rehabilitation Areas in Bag 4 and Bag 9 (above) will require the construction of a total of five heat distribution substations (CTPs), which will make domestic hot water for distribution with heating and cold water to the buildings in its service area. The locations for substations in both areas have been previously identified in the Ulaangom Master Plan, which will simplify the connection piping design and operations. Pipelines to convey heat and cold water will be constructed to serve the new CTPs. These pipes will be installed together in concrete channels buried adjacent to existing streets in accordance with Mongolian construction standards.

Solid Waste: 49. Solid waste collection and disposal has only been loosely regulated in the project aimag centers such as Ulaangom and project soum centres, and large areas of land have been impacted by indiscriminate dumping and uncontained windblown trash. Governments have only recently begun to plan for improvements to collection and containment, but there has been little funding available and there are large challenges to overcome to change the situation.

50. The large impacted area in Ulaangom is now close to developed areas. Uncontrolled, random dumping of waste from commercial enterprises in addition to household waste present significant risks to public health and the environment. Fencing and access control have been

44 initiated in some locations but there has been no funding available for the equipment and operations costs to manage disposal, mitigate impacts and to do anything to clean and reduce affected land areas.

51. The Ulaangom solid waste dumpsite is located approximately 2.5 km to the southeast of the city and due to largely unregulated operations has expanded to an area of 74 hectares. The city has constructed some fencing and an access control gate and guardhouse but these are fairly recent. A large portion of the impacted area is windblown trash and there is no provision or equipment available to cover or consolidate the waste. The city does not presently have a formal solid waste collection and transport system that fully covers all areas, and waste from commercial and industrial waste generators is handled by the respective organizations.

52. Ash from the heating plants is disposed separately from the city dumpsite, but ash from small stoves and boilers makes up a large portion if the waste at the city site. The dumpsite is situated on a hill about 1 km from a river the flows into Uvs Lake, 27 km distant. There is no evidence that there is near-surface groundwater at the dumpsite, but there are no measures in place to prevent runoff from the site from entering the river. The operators of the dumpsite have begun to separate waste with potential recycling value, such as glass and metals, but there is no program or plan for implementing a recycling program.

53. The existing situation with solid waste collection and disposal in Ulaangom and the need to meet current environmental standards and practices is too large a problem to be quickly solved. ASDIP Tranche 1 will be the first phase of a program to provide Ulaangom with an environmentally sound and sustainable solid waste management system and clean up/ remediate the results of past uncontrolled solid waste disposal practice. The activities will be a mix of technical assistance and works projects:

▪ Characterization of existing conditions - Includes type of waste, physical situation (soils, groundwater, topography) and the environmental hazards that need to be remediated and mitigated, based on the existing waste and projected future use of the sites. This will result in recommendations for design of cleanup programs and site improvements. Includes drilling, groundwater sampling and testing. ▪ Initiate formulation of a solid waste manage plan at the local level that includes collection, disposal and cost recovery mechanism(s) and capacity development needs, as well as implementation of a phased cleanup and restoration plan. ▪ Construct a fence with access control and security around areas designated for permanent development and consolidation of existing waste (15 ha). ▪ Initiate priority activities to correct current bad practices that are public health risks, such as groundwater contamination. ▪ Research and formulate opportunities for recycling with associated costs and benefits, coordinated with Aimag and regional programs. ▪ Develop a capital investment program for new facilities and equipment that can be done in T2-3 and with State funding. ▪ Initiate cleanup of existing dump sites by consolidating waste into aggregated piles for possible disposal in new landfill site if deemed necessary at detailed design. Peripheral site fences will be installed to contain wind-blown waste. No liner or leachate collection technology is planned. ▪ Pilot containerized solid waste collection in urban core and ger rehabilitation areas with five trucks and 50 bins or skips.

54. The results of the Tranche 1 programs will be the basis for scoping Tranche 2 activities that will include facility construction and equipment.

55. The potential for recycling programming has yet to be explored at Ulaangom and other Aimags. The markets for recycled materials are not defined, so it is not yet possible to ascertain if there will be sufficient cost recovery to justify investments. Recycled materials from Ulaanbaatar are shipped to China for processing, but the logistics for this in the western Aimags is far different and local or regional processing of recyclables may be more feasible than export.

b. Umnugovi soum

56. The infrastructure investments in Umnugovi are similar but smaller in scale than planned investments in Ulaangom. The investments do not include a ger area redevelopment plan. Instead public buildings and amenities will be improved. Similar to Ulaangom improvements to infrastructure will also service some of the agrobusiness facilities that will be developed in Umnugovi (see below).

i. Public Buildings and Amenities

57. Urban infrastructure and services of Tranche 1 include improvements to sanitation housing, and public buildings which are described below and outlined in Figure 6. Sanitation: 58. Indoor toilets are inadequate or are lacking in most public buildings such as schools- kindergartens, dormitories, and hospitals. The ASDIP will finance rehabilitation or construction of new sanitary units which will replace the existing dominant pit latrines which are often located at uncomfortable distances away from buildings. Dormitories: 59. One of the biggest handicaps for education in the rural areas is the lack of beds for children at school. The ASDIP will construct required student dormitories. Multi-purpose buildings: 60. These buildings are required to support activities that are lacking such as such as libraries or recreation for students on school property. The project will rehabilitate or construct new buildings to enable various multi-purpose functions. Sport: 61. The ASDIP will construction simple sport complexes for the community. The complexes will serve playground needs of young children as well as more organized sport for young adults. Staff housing units: 62. In order to attract and keep outside staff (e.g., teachers, medical professionals) whether permanent or seasonal staff, housing accommodation is required. The project will construct simple housing apartment units for this purpose. All buildings will be equipped with an additional supply of electricity through the implementation of PV solar panels with batteries as power storage.

Figure 6. Planned improvements to public buildings and sanitation in Umnugovi soum

ii. Basic infrastructure improvements in Umnugovi soum

63. The planned improvements to basic infrastructure in Umnugovi soum is summarized in Table 8. Aerial plan views of the infrastructure are provided in Figure 7.

Table 8. Planned urban infrastructure investments of Tranche 1 in Umnugovi soum17

Activity Description Details

Type Type

Water source wells (2) for the soum center developed area to be located Well depth 120 m New Water Source with reservoir and pipelines in the vicinity of the developed area, including submersible pump, controls and electrical connection, with a small reservoir and wellhouse Underground pipelines with manholes to connect the various major DN50, 500m Water distribution network for soum center

buildings in soum center. DN100, 1,200m Water Water 2 water source wells for new Agropark to be located with in the Depth 120m New Well and Pipes to Support the Agropark designated Agropark area and underground pipelines to connect the DN100, 800m

various Agropark facilities with the new water.

Plant capable of treating domestic wastewater generated by the schools 100 m3/d and public buildings, to standards appropriate for surface disposal, DN150, 400m New Wastewater Treatment Plant, Collection Network tentatively located north of the schools. Buried gravity sewers will DN200, 800m connect the schools and other public facilities with the new wastewater treatment plant. New tanker trucks will be provided configured for cold climate operations 5 m3 Vacuum Tank equipped with a vacuum pump and hoses that can extract sewage and Vacuum truck for septic system service sludge from holding tanks, cesspits and septic tanks as required for maintenance and transport the waste to a designated location for

Wastewater treatment and/or disposal. New trucks will not replace existing trucks Plant capable of treating industrial wastewater generated by the 50 m3/d; Agropark to standards appropriate for surface disposal, tentatively DN200, 750m Wastewater Pre-treatment for Agropark located adjacent to the Agropark. Buried gravity sewers to connect the

various Agropark facilities with the new wastewater treatment plant.

New coal-fired heating plant to serve the Agropark with heat and hot 1-2 gcal/hr water and connecting pipelines to the Agropark facilities with valve DN100*2+DN80 New Heating Plant with Lines to support Agropark (see stations and manholes. Plant design will incorporate national and section 2b below on Agroparks)

Heating international operation and environmental protection standards. .

Power line cable and pole replacement for main supply to the soum 4 km, 15kV line General Electrical Distribution Upgrades (includes center with substation equipment upgrading, and replacement of replacement new water source) overhead cables and transformers to increase the capacity and 14km local 0.4 kV, 1- reliability of power distribution within the soum center. 250 kVa, 1-400 kVa substation New overhead power distribution lines and transformers to serve 0.7km,10 kV OH line, Supply Line and Substation for the Agropark

Electricity Agropark facilities. AC-50

400 kVA Substation

17 Modified from engineering designs of Annex 3, Vol II, of ASDIP Final Report 2.5kkm, 48 core, 500 Upgrades to Support Soum Center and Agropark New Optical cable with 500 user MSAN station to support Deluun soum user

Communications and Agropark (Communications)

Commun ications

26.4 km, two lane asphalt with guard rail sections and some drainage New Road - Umnugobi soum to Ulgii soum

Roads New Road - Tarialan soum to Paved Network 9.0 km, two lane asphalt with guard rail sections and some drainage

First phase of project works anticipated as follows: Existing 70ha site reduced • Identify area to designate for permanent development and to 5 ha fenced area Initial cleanup, priority actions, fencing and access consolidation of existing waste and construct a fence with access control control and security. • Priority activities to correct current bad practices.

• Initiate site cleanup Solid Waste Solid

• Pilot containerized waste collection

17 Modified from engineering designs of Annex 3, Vol II, of ASDIP Final Report

Figure 7. Plan views of infrastructure investments of Tranche 1 in Umnugovi soum a) Water and Wastewater

50 b) Electricity

51 c) Communications

52 d) Dumpsite

(i) Additional context for most environmentally sensitive infrastructure from Table 6

(excerpted from engineering description from Vol II of ASDIP Final Report)

Wastewater: 64. There is no formal wastewater collection, treatment or disposal system in Umnugovi soum center. All public buildings and housing areas use pit latrines exclusively. In conjunction with upgraded water supply system will be a wastewater collection network that will connect to a small (100 m3/day) wastewater treatment plant capable of treating domestic wastewater generated by the schools and public buildings to standards appropriate for surface disposal, tentatively located north of the schools.

65. The Agropark (see below) will generate wastewater unsuitable for treatment by the soum center system, which will be designed for domestic wastewater only, so the park will have its own small treatment plant (50 m3/day) on-site that will be specifically designed to pre-treat Agropark waste so it can be safely discharged into the main soum center WWTP. A small collection network will connect the Agropark facilities to the new agropark plant.

66. Umnugovi will also be supplied with a 5m3 sewage tanker truck equipped with a vacuum pump for servicing holding and septic tanks, and other on-site sanitation systems. Provisions for receiving, treating and correctly disposing of waste collected by the truck will be included in the WWTP design and plan for overall wastewater treatment and disposal for the soum center.

Heating: 67. There is one privately owned, coal fired heating plant in Umnugovi with a piped distribution network that that serves most of the public buildings and operates during the winter heating season. Smaller public buildings and residences heat by individual stoves that burn coal, wood, or dung. There are no planned ASDIP Tranches to be associated with the privately owned and operated heating system in the soum center. The Agropark is located far enough from the soum center heat distribution network that a new, separate small coal-fired heating plant is the most economical means of providing heat and hot water (see section 2b on Agropark below). There will be heat distribution pipes installed in concrete channel that will serve the various Agropark facilities.

Solid Waste Collection and Disposal: 68. The existing situation with solid waste collection and disposal in Umnugovi is similar to that in Ulaangom, although on a smaller scale, and the need to meet current environmental standards and practices is too large a problem to be quickly solved. The Umnugovi solid waste dumpsite is located approximately 1.5 km to the south of the soum center and due to largely unregulated operations has expanded to an area of approximately 50 hectares. The dumpsite is located in a flat area and there is no surface water near the site. Groundwater is believed to be at a depth of 8-10 meters and at the time the site was visited a company doing road and bridge construction had excavated two deep pits to mine gravel that were planned to be used for depositing waste There is no fencing or access control and a large portion of the impacted area is windblown trash. There is no provision or equipment available to cover or consolidate the waste.

69. The soum center does not have a formal solid waste collection and transport system, and residents are responsible for their waste disposal. A large proportion of the waste is stove ash, but there is also waste from livestock slaughtering openly dumped with the household waste.

70. Tranche 1 of ASDIP will be the first phase of a program to provide an environmentally sound and sustainable solid waste management system and clean up/ remediate the results of past uncontrolled solid waste disposal practice. The activities will be a mix of technical assistance projects as follows: ▪ Characterization of existing conditions - includes type of waste, physical situation (soils, groundwater, topography) and the environmental hazards that need to be remediated and mitigated, based on the existing waste and projected future use of the sites. This will result

in recommendations for design of cleanup programs and site improvements. Includes drilling, groundwater sampling and testing. ▪ Initiate formulation of a solid waste manage plan at the local level that includes collection, disposal and cost recovery mechanism(s) and capacity development needs, as well as implementation of a phased cleanup and restoration plan. ▪ Construct a fence with access control and security around areas designated for permanent development and consolidation of existing waste (5 ha). ▪ Initiate priority activities to correct current bad practices that are public health risks, such as groundwater contamination. ▪ Research and formulate opportunities for recycling with associated costs and benefits, coordinated with Aimag and regional programs. ▪ Develop a capital investment program for new facilities and equipment that can be done in T2-3 and with State funding. ▪ Similar to dumpsite in Ulaangom, initiate cleanup of existing dump site. ▪ Pilot containerized solid waste collection for the larger buildings with one truck and 5 bins or skips.

2. Agrobusiness investments at Ulaangom and Umnugovi & Tarialan soums

71. Tranche 1 of ASDIP will develop the following three types of agrobusiness investments Ulaangom and in the soum centres of Umnugovi and Tarialan (only irrigation scheme).

(a) Community-based projects for Pasture User Groups (b) Agroparks (c) Irrigation schemes and fodder farms

a. Community-based projects for Pasture User Groups (PUG)

72. Community micro-projects for herders will be financed by the project to increase animal productivity. Herders must be a member of local PUG to access support. Members of PUGs will contribute through the provision of in-kind labor, cash and/or materials. The locations of the projects have not been determined.

73. The indicative types of community micro-projects to be financed are listed below. ▪ Hay protected areas: a 15ha pastureland perimeter near a river will be selected and enclosed with stonewalls. Water canal diversions likely established for irrigation by gravity. ▪ Small equipment and trucks: mini-tractors equipped with agricultural machinery and tools to support pasture management will be provided. ▪ Storage for hay and fodder (shelters). ▪ Animal combing and shaving facility and equipment with storages and disinfecting bath. ▪ Winter wind shelters for animals. ▪ Water wells: Construction of 6 new wells and rehabilitation or fixing of 4 old wells will be performed.

▪ Animal bathing facilities. ▪ Animal drinking water facilities. ▪ Small bridge/river/stream crossing and earth road repair.

b. Agroparks

74. The Agroparks in Ulaangom and Umnugovi soum will consist of Disease Free Establishments, meat processing facilities, laboratory & veterinary services, a Research Development Centre, business incubator centres, and agricultural processing industries. New, small coal-fired heating plants will be built in the agroparks of Ulaangom and in Umnugovi soum to serve the Agroparks (see below). The Agroparks will be located just north of Ulaangom (Figure 8) and just southeast of Umnugovi soum (Figure 9). The Agroparks will be utility-serviced in part by the urban infrastructure planned for the urban centres defined above.

i. Disease Free Establishments

75. The Disease Free Establishments in the Agroparks will include the following sub- components: ▪ Inspection laboratory and animal inspection zone. ▪ Animal feedlot – disease free zone with quarantine activity for disease controlling.

76. The Disease Free Establishment will be located to enable easy reach by livestock herds. The irrigation perimeter and fodder farms (see below) will produce fodder that is necessary for the Disease Free Establishment to function.

Figure 8. Location of Agropark just north of Ulaangom

** Map provided by agricultural team

Figure 9. Location of Agropark at Umnugovi soum

** Map provided from project agricultural team

77. The Animal Feedlot of the Disease Free Establishment in Ulaangom will have a capacity of 1,000 animals that can be kept isolated for two to three weeks in case of animal disease outbreaks or for export requirements. On average the required area for small and big animals is 10 m2/animal. The required total area for the disease-free zone and feedlot is 1ha. To be added is a 0.5ha animal inspection unit with offices and laboratories, a 0.5ha animal shelter, a 0.5ha hay and fodder shelter area, a 0.5ha abattoir zone, and a 0.5ha agricultural machinery parking lot.

78. The facility will include enough hay & fodder storage in order to feed the 1000 head of livestock during a 2-3 week isolation period without grazing. Table 9 estimates hay/fodder storage requirements of 2,592 tons which considers the single harvest for hay at the end of the summer.

Table 9. Hay and fodder storage requirements

Daily Number Number Number of Total (kg of nutrition, kg of of days cycles in a hay/fodder) animals year Small 1.5 800 18 12 259,200 animals Big animals 7 200 18 12 302,400 Total 561,600 ** Table provided by agricultural team

79. The animal feedlot of the Disease Free Establishment will include the following features:

▪ 1.5m stone perimeter to delimit the isolated 1ha feedlot and protection zone. ▪ Shelter for the animals from the wind and snow with total area of about 5,000 m2. ▪ Elevated hay storage (to prevent overconsumption) for a total capacity of 500 tons. ▪ Livestock food containers to feed the animals. ▪ Drinking water for the animals and water supply connection. ▪ 2km road connection to the nearby paved road. ▪ Agriculture machinery and equipment park area. ▪ Veterinary inspection center with offices and laboratories.

80. The animal feedlot in Umnugovi soum will be half the capacity of the feedlot in Ulaangom. Similarly, the Disease Free Establishment will be integrated within the Agropark at Umnugovi soum. Capacity of the disease-free zone and feedlot is 500 animals and an area of 0.5 ha.

81. The Disease Free Establishment of Ulaangom will include an inspection laboratory and animal inspection zone that will form part of the main laboratory for veterinary services and disease and quality control. The main laboratory will be integrated within the Agropark. Since 2018, the Veterinary Agency became separated from the Ministry of Food, Agriculture and Light Industry (MOFALI) and therefore need new offices. The offices and the laboratory will be combined in the same building in the Agropark.

82. The laboratory in Umnugovi soum will also be integrated within the Disease Free Establishment at the Agropark at the edge of the soum center. The Disease Free Establishment will also include veterinary offices.

83. It is necessary to provide a building and properly designed laboratories, equipment, and laboratory consumables for the operation of Veterinary Agencies at Ulaangom and Umnugovi soum relative to the animal disease prevention, traceability, clinical services, and activities in the disease-free zone. The main features of the laboratories including equipment are exemplified in Table 10. Medical consumables will be incinerated with hospital waste until the integrated waste management plan will be formulated under Tranche 1 and implemented under Tranche 2.

Table 10. Example equipment and consumables required for laboratory support18.

Amount needed

Items Purpose Ulaangom Umnugovi

Equipment 1 Thermostat Drying samples and glasses 2 pc 1 pc 2 Sterilization for tools and Autoclave 2 pc 1 pc glasses Determining toxic substances 3 LC tandem MS in meat and food such as 1 pc - antibiotics, pesticides, toxins Determining fat, moisture, 4 NIR spectroscopy carbohydrates & sugar in milk 1 pc 1 pc and other substances For extraction of 5 Centrifuges sedimentation from various 2 pc 2 pc biological samples Determining acidity condition 6 pH-Meter 2 pc 2 pc of samples 7 Microscopes Analytical purpose 2 pc 2 pc Car equipped for 8 veterinary For mobile laboratory activity 1 pc 1 pc services For keeping animals during 9 Mobile fence 7 pc 7 pc the veterinary activity For animal wash and 10 Disinfecting bath 7 pc 7 pc disinfecting purpose 11 Laminar hood For aseptic isolation activity 1 pc - Consumables For blood and other biological 1 Sample label 40,000 pc 40,000 pc samples Container for 2 For carrying samples 40 pc 40 pc labels 3 Biological tubes For blood sample 40,000 pc 40,000 pc For syringe for blood 4 Aseptic needle 40,000 pc 40,000 pc withdraw 5 Needle stand For blood sampling 400 pc 400 pc 6 Gloves For aseptic purpose 500 box 500 box Laboratory safety For aseptic and disinfecting 7 1000 pc 1000 pc clothes activity Lab kits for fast 8 For field test 40 pc 40 pc testing of rabies Lab kits for fast 9 For field test 40 pc 40 pc testing of cow-pox For training and capacity building activity For data processing in the 1 Laptops 1 pc 1 pc field

18 Table provided by project agricultural team

Amount needed

Items Purpose Ulaangom Umnugovi For data processing in the 2 Desktops 1 pc 1 pc office 3 OH projector For data presentation 1 pc 1 pc 4 Microphone For data presentation 1 pc 1 pc 5 Color printer For data sharing 1 pc 1 pc 6 White screen For data sharing 1 pc 1 pc

(i) Water needs

84. The water requirements of the Disease Free Establishment in Ulaangom are estimated at drinking water: 2.6 m3/day, and process water: 50 m3/day

ii. Meat processing facilities

85. There are three functional meat processing facilities in Ulaangom centre and two under construction. The existing meat processing facilities have similar capacities of about 600 animals per day, but none are functioning at full capacity. The project will provide financing support to the private sector to build a new meat processing facility close to the Disease Free Establishment on the Agropark site. The capacity of the meat processing facility will be 150 big animals and 600 small animals per day and will function 8 months a year.

(i) Water Needs

86. The water requirements of the meat processing facility in Ulaangom are estimated as: drinking water: 105 m3/day and a total of 210 m3/day with meat processing.

87. There isn’t a proper meat processing facility in Umnugovi. Animals are simply killed outside by hand. The project will build a simple meat processing facility respecting international environment standards and equipped with storage facilities and sorting rooms. The capacity of the meat processing facility will be 150 animals per day in a combined line (small and big animals) which will function 8 months a year. The meat processing facility will be located close to the Disease Free Establishment within the Agropark.

(ii) Water Needs

88. The water requirements of the meat processing facility in Umnugovi are estimated as: 30 m3/day without meat processing (60 m3/day with meat processing).

(iii) International standards for meat processing and production for Tranche 1

89. The design of the meat processing and storage facilities for Ulaangom, Umnugovi soum, and for the other Aimag and soum centres will follow FAO (1988) and WHO (1984) standards for operations and environmental protection along with the international standards as summarized below. All meat processing facilities of Tranche 1 will incorporate and follow key international standards in order to produce a quality of meat that can be marketed to international markets. There are four primary standards that will be applied to meat processing developed by ASDIP

60 which are: (i) CAC/RCP 58-2005; (ii) ISO/FSSC 22000; (iii) HACCP system; and (iv) HALAL certification for Islamic countries such as Islamic Republic of Iran, and Kazakhstan.

90. While each country market has their own regulations and standards on food quality and safety to comply in domestic supply chains of food products, international bodies, such as the CAC (Codex Alimentarius Commission), the ISO (International Organization for Standardization), and the OIC (Organization of the Islamic Conference), regulate and ensure the quality and safety of food production, distribution, and export in worldwide. The scope of each of the four standards from above s briefly summarized below.

CAC/RCP 58-2005

91. The CAC or the Codex Alimentarius Commission was established by the Food and Agriculture Organization of the United Nations (FAO) and the World Health Organization (WHO), and is recognized by the World Trade Organization as an international reference point for the resolution of disputes concerning food safety and consumer protection. The CAC works on internationally recognized standards, codes of practice, guidelines, and other recommendations relating to foods, food production, and food safety.

92. The CAC/RCP 58-2005 or “Code of Hygienic Practice for Meat” is the main regulation which to be complied by the abattoirs, slaughterhouses. The scope of this code covers hygiene provisions for raw meat, meat preparations and manufactured meat from the time of live animal production up to the point of retail sale. The CAC/RCP 58-2005 is translated and adopted as Mongolian as “MNS CAC RCP 58:2013” (Махны эрүүл ахуйн дадлын дүрэм). The primary elements of the CAC/RCP 58-2005 for meat processing facilities are as follows:

• Primary production: • Personal hygiene: • Presentation of animals for slaughter: • Transportation • Establishments: design, facilities, and equipment • Product information and consumer awareness • Process control: • Training • Establishments: maintenance and sanitation

ISO/FSSC 22000

93. The ISO 22000:2018 or “Food safety management systems” consists the requirements for a food safety management system in any organization in the food chain. It defines what an organization must do to demonstrate its ability to control food safety hazards and ensure that food is safe for consumption. ISO 22000 is based on the CAC/RCP principles for food hygiene and this enables authorities to refer to ISO 22000 in national requirements and government inspections to ensure that all the criteria for food safety are met.

94. The FSSC 22000 or “Food Safety System Certification (FSSC)” is a certification scheme system was designed to provide companies in the food industry with an ISO-based food safety management system certification that is recognized by the Global Food Safety Initiative (GFSI). The FSSC 22000 system uses a management systems approach to food safety, using ISO 22000 for the management system requirements and ISO Technical Standards (for prerequisite program requirements). In accordance with ISO/FSSC 22000, meat processing facilities must to consider the requirements on following elements of meat processing and production: ▪ Management responsibility: ▪ Resource management:

▪ Planning and realization of safe products ▪ Validation, verification and improvement of the food safety management system:

HACCP system

95. The HACCP is a scientifically based control system to be implemented at all stages of food production, storage and marketing from ingredient preparation to delivery of end products relying on control of factors exerting adverse impacts on food safety, identification of potential hazards and prevention measures rather than testing of end products. The HACCP consists seven principles and 12 steps. HACCP concept that a system of controlling and inspecting ready end products is not capable of certification of food safety resulted in its development to be worldwide standard. In accordance with HACCP system, meat processing facilities must to consider the requirements on following key process and operations elements:

• Prerequisite Requirements: • Hazard Responsibilities • Scope of HACCP Plan • Confirmed Food Safety Objectives (FSOs) • Product Description and Intended Use • Critical Control Point (CCP) Determination • Setting Initial Food Safety Objectives Process • Establishing Critical Limits • Constructing a Process Flow Diagram • Monitoring CCPs • Job Descriptions • Setting Corrective Actions • Raw Material Hazard Identification • Verification of the HACCP Plan • Process Step Hazard Identification • Documentation and Record keeping

HALAL certification

96. In order to export meat and meat products to Muslim countries such as Islamic Republic of Iran, Republic of Iraq, Saudi Arabia, the United Arab Emirates, Malaysia, Indonesia, some provinces of China, Azerbaijan, and Kazakhstan, animals must be slaughtered in HALAL way in accordance with the provisions of Islamic Sharia. In accordance with CAC/GL 24-1997 or “General guidelines for use of the term ‘Halal’”, and GS 993/1998 or “Animal slaughtering requirements according to Islamic Law”, all lawful land animals should be slaughtered in compliance with the rules laid down in the CAC/RCP 58-2005 and the following requirements: ▪ The person should be a Muslim who is mentally sound and knowledgeable of the Islamic slaughtering procedures. ▪ The animal to be slaughtered should be lawful according to Islamic law. ▪ The animal to be slaughtered should be alive or deemed to be alive at the time of slaughtering. ▪ The phrase “Bismillah” (In the Name of Allah) should be invoked immediately before the slaughter of each animal. ▪ The slaughtering device should be sharp and should not be lifted off the animal during the slaughter act. ▪ The slaughter act should sever the trachea, esophagus and main arteries and veins of the neck region.

(iv) Waste treatment

97. Wastewater collection and treatment of the meat processing facilities of agroparks of the Aimag centres will form part of the new Aimag WTTP plants. Pretreated effluent at the processing facilities will be conveyed to the new WWTPs in the Aimag centres for treatment according the Mongolian effluent quality standards identified in Table 6. Similarly, the meat processing facilities at the agroparks at the two soum centres will convey wastewater to the small pre-treatment plants at the agroparks that will treat effluent suitable for discharge to the environment (Tables 6 and 7).

iii. Processing industries, storage, & business incubation

98. The Agroparks will support development of small agro-process industries and business promotion. It is envisioned that the Agropark will host a non-exhaustive list of business and agro- process opportunities that will be dictated by and support local Agrobusiness Development Planning. Example processing facilities are dairy products, greenhouses, vegetable processing, leather finishing (not tanneries), and wool processing.

(i) Water requirements

99. The estimated water requirements of planned processing industries of Agroparks are summarized in Table 11.

Table 11. Estimated process industry water requirements of Agroparks

Wool factory Leather finishing Dairy farm Greenhouse farm Vegetable processing factory process water: 1.0 process water: 0.1 potable water: process water: 1.0 1.0 m3/ton of product m3/ton product, m3/u, potable water: 1.5m3 / m3 of milk litre/m2, potable potable water: 100 litre/day water: 100 litre/day 1000 litre/day

iv. Four heating plants

100. Four new heating plants will be built to serve the four agroparks located in Ulaangom, Umnugovi soum, and in Ulgii, and Deluun soum. The proposed two heating plants for Ulaangom and Umnugovi soum are 1.5 gcal/hour (1.7 MW) based on the assumed facilities to be served. Similarly, the two heating plants for Ulgii and Deluun soum are sized at 1 to 2 gcal/hour (1.2-2.3 MW). The heating plants in the soum centers will serve locations where central heating systems do not exist or where connection to existing privatized heating plants is not feasible. New plants in agroparks of the Aimag centers were identified where the distance to connect to an existing plant makes the cost prohibitive. The recommended technology for the small heating plants was based on: i) Cost and availability of energy sources in the project area. Coal is commonly used and readily available, and possible alternatives such as wood/biomass, LPG, and electricity have restricted supply and unit energy costs many times that of coal. The ASDIP will improve the availability and reliability of electrical supply, however the grid capacity will not be sufficient to support electric heating directly or as the backup necessary for renewable energy sources;

63 ii) Capital costs of heating equipment and delivery technology. Combustion boilers are far less expensive than alternatives, and Mongolia is able to source heating equipment from neighboring countries that will meet emissions requirements; iii) Suitability of the heating for sustainable operations and maintenance by local staff. The project areas are remote from sources of technical specialists and repair parts, and operations; and iv) Heat only boilers (HOBs) were not well regulated in Mongolia in the past and older boilers still contribute to poor air quality in the population centers. Mongolia has initiated technical standards, including MNS 6298:2011 for heating plants and MNS 5043:2016 for HOBs 4.2 MW of less. The heating plants recommended for ASDIP are smaller than 4.2 MW so MNS 5043:2016 will apply.

101. Table 12 compares the heating alternatives explored by the engineering design team of ASDIP.

Table 12. Comparison of Agropark heating alternatives

Base Operating No Technology Impact Discussion Conclusion Cost Cost 1 Connection to Varies Low Air Quality, Ash Connection to an existing system has the lowest Best solution if connection costs are Existing Central disposal operating cost, and maintenance organizations are in less than other alternatives. Heating System place. The cost of long piping connections can be prohibitive. Some small, privatized heating plants in the Soum centers are not interested in expanding their plants and are ineligible for ASDIP investment. 2 Electric Hot Water Low High Electrical Unit energy costs for electricity are approximately 10 Not feasible without additional grid Generation1 times higher than for coal. ASDIP will be improving capacity upgrades electrical distribution capacity in many locations, the local grids will not be able to support heating loads. High operating costs negatively impact project sustainability. 3 Coal-Fired Boiler Medium Low Air Quality, Ash Most common heating method in Mongolia, and the Best solution when connection to disposal technology is known and regulated. Fuel is lowest cost of existing plant is not feasible non-renewable alternatives. New boiler plants constructed to latest emissions standards are relatively cleaner that all of the existing heating plants in the project area, which were built before the new standards were introduced. 4 Other Combustion Medium High Air Quality, Ash Gas or liquid petroleum fuels have limited available in the Not feasible. High operating costs Boilers disposal for project areas and have unit energy costs 2-4 times would negatively impact project some higher than coal. There are no sustainable biomass sustainability. sources in the project areas and emissions are still a factor. 5 PV solar Medium - Medium Minimal during PV requires either expensive battery storage or grid High base cost if storage is required. High operations but connection, for which limited grid capacity is still a battery disposal if problem. storage is needed 6 Ground Source Heat High High Similar to electric Cold soil temperatures in Mongolia limit performance of Not feasible. High operating costs Pump heating geothermal2 so that 20-40% of heating energy will still would negatively impact project come from electricity. Geothermal systems are not sustainability. common and complex technology is difficult to maintain in remote locations

Notes: 1The Western Energy System, which generates 28% of demand from hydropower and presently imports most of the remaining 72% from the Russia central grid (48% gas, 18% coal, 18% hydro, 17% nuclear), is relatively clean compared with other Mongolia regions. Planned solar and hydro project are intended to displace imported power with renewable sources. 2Coefficient of Performance (COP) for ground source geothermal systems has been found to be 5 or less, which means that 20% or more of the heating load will come from electricity. Emissions

Table 13 lists the emission standards considered for the new heating plants. Note the recent emission standards for Mongolia (MNS 6298:2011 and MNS 5043:2016) are more stringent that the older Mongolia standards, and also exceed the emission standards of the IFC EHS (2007). The difference between the two current Mongolian standards is in permissible CO which allows for technology less complex than circulating fluidized bed, which on previous projects was found to be difficult to obtain in the small boiler sizes that will be required for ASDIP. The new heating plants following MNS 5043:2016 will be a cleaner alternative to connecting to older systems that do not meet the newer standards.

Table 13. Applicable air emission standards (mg/Nm3) for new agropark heating plants

Standard Name NOx SO2 CO PM Notes Mongolian MNS 5919:2008 1150 1500 1030 12000 Old standard Mongolian MNS 6298:2011 Population >10 450 400 180 50 per km2 Mongolian MNS 5043:2016 400 600 4000 300 1.0 to 4.2 MW International IFC EHS (2007) 650 2000 -- 50-150

GHG emission offsets

102. The ASDIP will involve a number of programs that will reduce building energy consumption and install renewable energy systems that will significantly reduce GHG emissions from the project area such as: (i) 10MW of rooftop PV solar systems; (ii) 1000 solar street lights; (iii) Improved insulation for over 200,000 m2 of buildings that will reduce energy consumption from 300 to 140kWh/m2 per year; and (iv) Introduction of heat metering and unit rate billing in Ulaangom to provide incentives for energy conservation and allow for direct calculation of benefits from building energy improvements to existing buildings.

v. Environmental Management System for Agroparks

103. The government will need to develop an Environmental Management System (EMS) for the Agroparks in Ulaangom and Umnugovi that will be managed by the Aimag and soum governing authorities. The EMS will consist of a set of procedures and guidelines to ensure the protection of local environment and natural resources. The PISC will assist with the development of the EMS during the detailed design phase of Tranche 1. The requirement for an EMS for the Agropark will form part of the project loan covenants.

c. Irrigation perimeters and fodder farms

i. Ulaangom – Tarialan soum

104. An existing irrigation system to support a 500ha fodder farm will be rehabilitated in Tarialan soum southeast of Ulaangom (Figure 10) The site was a previous irrigation perimeter during the Soviet era. Due to land availability, proximity of an existing paved road & electricity supply, and closeness to Ulaangom, the 500-ha site was selected in the Teeliin Gol river basin, Khukh-Ukhert, of Tarialan soum. The system will divert water from the Teelingol (Teel) river into a head structure which will feed water by gravity along a 7.5 km main canal to the irrigated area. The irrigation system will be implemented in two phases:

o The head structure and main irrigation canal will be rehabilitated with upgraded equipment (i.e., sluice gates etc).

o A Water Resources Management Plan will be prepared.

o Financing support (concessional loans) will be provided to the private sector (cooperative or private company) to develop a water irrigation scheme on the identified 500 ha.

Figure 10. Irrigated fodder farm in Tarialan soum southeast of Ulaangom

** Map provided by project agricultural team

Site characteristics:

105. Chemical and physical parameters of the soil of irrigated perimeter have been determined. The soil salinity is low (0.04%) which indicates the soil is suitable for crop farming with appropriate cultivation technologies. The low level of the three primary nutrients, nitrogen, phosphorus & potassium (N - undetected) in the soil indicates the need for appropriate application inorganic fertilizers as well as cultivation of leguminous plants, such as alfalfa in a crop rotation regimen.

106. The soil is classified as sandy brown – dry land pasture soil comprised 45.5% (±3.7%) of 0.25-0.05 mm of particles; 11.8±1mg/kg of phosphate (P) levels; and 15-20 cm of humus. The soil is alkaline with pH of 8.14). The low level of humus composition (0.92%) strongly indicates a need of organic fertilizers such as composts made of animal manure. The proximate mineral compositions are as follows: calcium (Ca) = 13.4±1.5 meq/100g), magnesium (Mg) = 7±0.9 meg/100g), and potassium (K) = 39.4±2.8 mg/100g). The Ca/Mg ratio of 2 suggests the soil fertility needs to be improved with inorganic calcium (gypsum or lime) and with potassium-based fertilizers.

Planned development:

107. Irrigation water will be delivered by gravity from a head structure that diverts water from the Teelingol river. Water will flow in open and closed concrete canals with water gates, and irrigation machinery. The irrigation system will include the following sub-components which will be owned and managed by the soum government:

▪ Head structure and main concrete closed and open canals ▪ Water use management plan in the Tarialan river basin area ▪ 5 pawed irrigation machines. ▪ 2 tractors equipped with agricultural machineries for soil and crop cultivation activities. ▪ One silage preparation unit with a capacity of 1,000 tons. ▪ One fodder and silage storage house. ▪ One fence with garages for agricultural machinery parking. ▪ Financing support for 500 ha irrigation scheme and Irrigation machineries

Proposed Crops:

108. The purpose of this irrigation system and fodder farm is to supply the Disease Free Establishment and the herders with food for animals. The irrigated perimeter will produce a combination of cereal and leguminous crops to be used for fodders such as oat, barley, wheat, corn, beans/peas, and alfalfa, and these crops will be mixed together to produce fodder.

109. The proposed crop plants will be cultivated in a five-year rotation scheme based on cultivation schedule of the perennial crop alfalfa for 5 years as a purpose of enhancement of soil organic matters. Potato plant will also be introduced in the crop rotation scheme for weed suppression and soil loosening purpose. According to the five-year rotation plan, the field will be divided into 5 sections as described Table 14. The first plant in the 5-year rotation is alfalfa followed by corn. After corn, wheat and barley will be introduced to the rotation. Potato will be entered to the field at the penultimate order. The last plant in the rotation are oats. It is estimated that the area needed for the irrigation perimeter is 500ha. Expected yields for silage are 3,100 tons and for dry grain are 200 tons.

Table 14. Plant rotation and production for feedlot

Crop plants Purpose Field, (ha) Yield, Total yield, (ton/ha) (ton) Alfalfa silage 100 2 200 Corn silage 100 25 2500 dry grain 50 2 100 Wheat & Barley silage 50 4 200 Potato crop rotation 100 - - Oat dry grain 50 2 100 silage 50 4 200 Total - 500 - 3300

**Table provided from project agricultural team

(i) Water requirements

110. The estimated water requirements to irrigate the 500ha irrigated fodder farm in Tarialan soum are at 0.625 m3/sec. As part of the assessment of water needs for the 500ha fodder farm, the agriculture specialists assessed water availability in the Teel river for irrigation using most recent available flow to ensure sufficient water will be available. Table 40 summarizes the available flow data for the four rivers that will be used for irrigation including the Teel river. The Teel river flow data are derived from the recent assessment conducted by the Ministry of Environment and Tourism (MET) for the separate Tarialan Regulated Irrigation System Project (see below) which will also divert water from the Kharkhiraa-Teel river. The hydrometeorologists and agricultural specialists for both projects are confident that the available flow data (Table 40) indicate that sufficient water will be available for the needs of both irrigation projects. At implementation seasonal water flows in the Teel river will be examined to confirm availability for the 500ha fodder farm.

ii. Environmental protection of all irrigation perimeters of Tranche 1

111. All irrigated perimeters (schemes) of ASDIP will include design structures to mitigate contamination of running and ground waters by agri-inputs which will be regularly monitored (see EMPs). As part of the Environmental Management Systems (EMS) that the government will be required to develop and implement for the Agroparks, all concessional loans to private sectors as part of the FIL component of ASDIP will be conditional on strict compliance with agro- environmental safeguards dictated by the EMSs. Comprehensive, in-depth training on agro- ecology is included as part of the agrobusiness component in support of the EMS formulation and implementation are included in ASDIP capacity building component (incl. theoretical and on-the- site follow-up). Specific environmental protection is summarized as follows:

(i) Soil protection and conservation ▪ Protective banks, peripheral embankments and drains will be constructed to protect both irrigated perimeters and surrounding area from floods and prevent soil erosion. ▪ Productive windbreaks area (25 meters width min.) surrounding the perimeter will (i) primarily protect the irrigated perimeter and surrounding area from wind erosion; (ii) act as drained-water filter and absorb excess nutrients and other agri-inputs; (iii) act as a pool of life and biological diversity, hence increasing biological control of pests and diseases. Windbreaks will be composed of high, medium and small size local tree species, including

locally adapted fruit trees and shrubs that will be harvested by local herders’ households and rural communities. ▪ Productive windbreaks hedges will be set-up inside the irrigated perimeters and inserted between cultivated strips. Ratio of windbreak hedges over cultivated are will be at least 1ha/ 100 ha. ▪ Cropping technical itineraries will be elaborated on a 5 years minimum rotation scheme, including roots vegetable for biological soil loosening and decompaction. Rotation schemes will be strengthened, elaborating largest collaboration scheme with other crop producers and mutually benefiting to each. ▪ Crops residues, such as straw, cobs and brans will be used as mulching materials to protect soils from heavy rains and wind erosion, and will contribute (i) to organic matter enrichment and; (ii) improved water management thanks to mitigation of evapotranspiration. ▪ Access to conditional loans will be favorized for entities relying on low impact mechanical soil preparation and cultivation practices such as surface tillage, shallow stubble ploughing or tillage across the slope.

(ii) Water use efficiency and mitigation of water contamination

▪ All irrigation canals (primary and secondary – bottom and slopes) will be lined with waterproofing membranes (i.e. geotextiles) to prevent water losses by infiltration and leaks. ▪ Water efficient irrigation techniques will be favored. Not only the irrigation technology will be considered for assessment but the entire set of cultivation practices impacting water usage and mitigation of evapotranspiration. ▪ In case of drought only complemental irrigation will be authorized, ensuring crop survival and avoiding to dry out rivers’ flows. Decision for such measure will be taken by River Basin Administrations and Councils, themselves informed by NAMEM on meteorology, hydrology, hydro-geology, water quality and environmental conditions of shared watercourses. ▪ Windbreaks hedges surrounding and within the irrigated perimeters will be watered by drip irrigation systems. ▪ Excess irrigation water will not be driven back to rivers or aquifers but channelized through a network of vegetated ditches to absorbing beds constructed downstream the perimeters (i) collecting and containing excess runoff from irrigated perimeters (i) acting as filters absorbing excess of nutrients and other agro-inputs (phytopurification); (ii) facilitating water percolation and evaporation; (iii) stabilizing soils.; (iv) offering biodiversity support. ▪ A surface and groundwater monitoring and evaluation system will be implemented by NAMEM to ensure that cropping practices are not contaminating running and ground waters. Every year, samples of water will be collected downstream the irrigated perimeter (exit of vegetated strips, in the river downstream, and in aquifer downstream) and compared to samples collected upstream. All data will be compared to the ones collected during previous years in order to assess long-term water quality evolution and potential cumulative contamination. A first data collection and analysis will be performed in Year 1, before setting-up of the irrigated perimeter, and will be used as a baseline.

(iii) Weeds, pests and diseases control and management

▪ Access to concessional loans will be favorized for entities relying on organic production practices. Whereas Government of Mongolia is subsidizing herbicides and pesticides for

fodder production countrywide it is commonly accepted that Western region of Mongolia is (i) less sensitive to pests and diseases because of altitude and specific climate; (ii) hosting unique ecosystems, hydrologic systems and related wildlife populations, which are extremely sensitive to chemical agri-inputs (particularly aquatic fauna and flora). Organic weed, pest and disease control, management and practices will be thus disseminated under the ASDIP capacity building component, with specific emphasis on prophylactic practices. ▪ Adapted seeds (cold on drought resistant) will be compulsory. Hardy varieties cultivated under similar climates (i.e. Russia, China) will be favorized, especially Mongolian ones. ▪ Crops rotation (minimum 5 years) and crops association plans will be compulsory to favorize biological control agents and limit large scale contamination. Monoculture will not be tolerated. ▪ Biological or chemical inputs (i.e. Mycete based solutions developed by MULS for fungus diseases on grain fodder crops; Bordeaux mixture), for both preventive and curative measures, will be accepted only if listed in Mongolian Law of Organic Agriculture, and are respecting the dosages stated in the related standards. Residual chemical molecules will be filtered by vegetated strips established downstream the irrigated perimeter. ▪ Weeds will primarily be controlled by mechanical solutions such as false seed bed and mechanical wedding.

(iv) Fertilizer use

▪ Fertilization inputs, application and management will strictly comply with (i) the International Organization for Standardization set of criteria for fertilizers, soil conditioners and beneficial substances19; (ii) the International Code of Conduct for the Sustainable Use and Management of Fertilizers (FAO, 2019); (iii) the Mongolian agri-inputs’ market regulation procedures and related Laws on Standardization and Accreditation (2003); on Food (2013), on Food Safety (2013), and on Organic Food (2016). ▪ Sound soil analysis will be performed in every year to accurately inform soil composition and characteristics, identify fertilization needs according to the specie cultivated, and avoid overuse of fertilizer. ▪ Considering that compost production by valuing effluents from Disease-Free Establishment and meat processing facilities will request a minimum of two years, usage of chemical fertilizers will be authorized until enough compost is produced to meet fertilization need. Dosage of in-organic fertilizer is estimated to amount 112 kg of N.P.K. per ha and per year (thus, 56 tons for 500 ha and 22.4 tons for 200 ha). ▪ Once compost (2-year preserved manure compost) will be made available in sufficient amount (estimated in Year 3), it will be used for soil fertilization up to a maximum of 60 tons/ha. ▪ In accordance with soil analysis liming will also be performed to improve soil pH, in the limit of +0.5 pH point increase per amendment. 112. The Disease Free Establishments will be equipped with livestock-derived biological waste collection facility in compliance with biosecurity principles mentioned in Mongolian regulations. The manure pit will amount 100 m3 and will be suckled every month. Manure extracted from the

19 https://www.iso.org/committee/52376/x/catalogue/p/1/u/0/w/0/d/0

71 pit will be mixed with carbon materials and composted on a dedicated platform. The estimated production of compost will amount about 1,800 tons of compost per year. 113. Learning from the recent pilot for sludge reuse for agriculture and land reclamation under MON-42184-024, the project will also look at possible inclusion of sludge for composting for the WWTP under the project.

iii. Tarialan – Regulated Irrigation System

Rationale:

114. The National Agency for Meteorology and Environmental Monitoring, during the last seventy years recorded the following important climate change data: ▪ Average annual temperature increase of 2.26°C; ▪ Decrease of the frost days by 15d. and increase of the summer days by 19d.; ▪ Decrease of western glacier area from 535km2 to 375km2; ▪ Increase of the Dzud conditions.

115. Since 2014, the Ministry of Environment and Tourism (MET) has been developing the concept of integrated water basin management (IWBM) applied to the 29 water basins covering the whole country20. The MET has developed a proposal called High Mountain Water Management (HMWM) which aims to build climate change resilience for the vulnerable populations that are highly water-dependent essentially due to its agricultural activities: water for animal husbandry, pasture, farming and households use. The HMWM is in line with the Mongolian Law on Water. Completion of the feasibility assessment of the HMWM in Tarialan soum by the MET is in progress. The main objective of the MET is to create a capacity for storage of heavy runoff water from glacier melt and during the rainy season in order to: ▪ avoid the wastage of river waterflow; ▪ regulating waterflow in order to preserve the ecosystem in receiving waterbodies in this case the Uvs Lake which is a national Critically Protected Area; ▪ reducing high river flow losses from evaporation in the shallow Uvs lake; ▪ avoiding flood and soil quality degradation; and ▪ providing for the irrigation needs of the area during water shortages to support to the crops and livestock value-chain as developed in Output 2 of the ASDIP.

116. This whole-basin approach relies on river basins in which natural, potential storage ponds exist adjacent to the river courses. The MET’s HMWM scheme involves 4 subprojects which will harvest the spring-summer high flows of rivers by diverting a portion of the high flows to adjacent natural storage ponds for later irrigation use. The four subprojects are located in Uvs and Bayan- Ulgii Aimags.

117. Figure 11 shows subprojects 1 and 2 of the HMWM scheme near Tarialan soum centre including the planned 500ha irrigation scheme of Tarialan soum located downstream closer to Uvs Lake (green polygon) from Figure 10. Figure 12 shows a different perspective plan view of

20 From 2010 to 2013: setting up of the first 13 river basins resources management plans. 72 subproject 2 as well as the 500ha irrigation scheme, and Figure 13 shows closeup view of subproject 2.

Figure 11. Aerial view of subprojects 1 and 2 of MET’s HMWM proposal in Tarialan

Source: Adapted from Vol III of ASDIP Final Report

Figure 12. Plan view of subproject 2 of HMWN and 500ha irrigation scheme

Source: Adapted from MET power point presentation of High Mountain Water Management Scheme

Figure 13. Subproject 2 of HMWM in Tarialan soum

118. Tranche 1 of ASDIP will include subproject 2 because it is located just upstream and thus considered complementary and consistent with the planned 500ha irrigation scheme described above (Figure 10), which is also shown in Figures 11 and 12. Subproject 2 consists of abandoned 12.5 km water canal through which water from the Kharkiraa-Teel river at Tarialan will be channeled to two storage reservoirs (Figure 13). The abandoned canal and storage reservoirs (ponds) were once used for local irrigation.

119. The proposal is to divert 3% of Kharkiraa-Teel river flow during April-August period (Table 11) through the 12.5km canal to fill the two storage ponds for later discharge for local irrigation (Figure 13). Columns B and C in Table 15 indicate, respectively, long-term average monthly discharge (m3/s) of the river just above the mouth of the 12.5km canal, and the corresponding 3% volume of average flow (m3/s) that would be diverted to the two storage ponds. Table 11 indicates that the proposed 3% extraction from the river is notably small relative to the mainstem flow.

120. The upstream catchment area providing source water is approximately 55km2. Storage in the two ponds is approximately 64 million m3. The HMWM subprojects 3 & 4 (not shown above) and subproject 1 (Figure 11) may be considered for subsequent Tranches of the ASDIP after the formal feasibility studies are completed.

Table 15. Proposed seasonal diversion of 3% of river to storage ponds

A B B-2 C D E F G

Available water 3% Number of days for volume (April Total Water Irrigated area in discharge reservoir filling +40,000m3 = pre- volume per ha - 7t fodder/ha - Discharge for irrigation (approx. 40,000m3) filled reservoir) Month month 210m3 water/ton Remarks (m3/s) (m3/s) (m3) fodder: = 40000/ 1470 ha = b*3% (C*3600*24) = c*3600*24*nb. days January 0,20 frozen February 0,20 frozen March 0,30 frozen April 4,84 12 545 280 0,15 3,19 416 358 283 May 7,20 19 284 480 0,22 2,14 578 534 394 vegetation June 14,68 38 050 560 0,44 1,05 1 141 517 777 growing July 18,28 48 961 152 0,55 0,84 1 468 835 999 season August 11,28 30 212 352 0,34 1,37 906 371 617 September 4,76 October 5,36 November 2,87 frozen December 0,20 frozen

TOTAL 149 053 824 4 511 615 3 069 Source: Adapted from Hydro Fountain Engineering Firm, retained by Uvs government to do analysis

iv. Umnugovi soum

121. Similar Tarialan soum just south of Ulaangom, an irrigation scheme and fodder farm is planned for Umnugovi soum. Based on local government’s suggestion, an abandoned irrigated scheme located in 10 km north from the soum center was selected (Figure 14) for fodder crop farming. Similar to Ulaangom, the irrigated scheme will produce hay for the Disease Free Establishment of the Agropark in the soum centre and local herders.

Figure 14. Site of irrigated fodder farm north of Umnugovi soum

** Map provided from project agricultural team

Site characteristics:

122. Analyses of physical and chemical properties of the soil indicate that the soil is suitable for crop farming activity with introduction of appropriate crop farming rotation techniques and soil fertility improvements. In general, the soil is classified in light loamy soul (30.76% of 0.05-0.01mm particles) with 15 cm depth. Chemical conditions of soil are defined as: humus content is moderate (2.28%); major nutrient levels are poor, i.e., potassium - 15.8mg/100g, phosphorus - 1.88 mg/100g, nitrogen - 1.01mg/100g, calcium - 26.4 meq/100g, and magnesium - 5.8 meq/100g. The alkaline pH (7.9) of soil indicates a requirement for organic (manure) fertilizers during the crop farming activity.

Planned development:

123. The irrigation system of 200ha will function by gravity starting with a head structure that will divert water from nearby river into an open concrete canal with water gates. The irrigation system will include the following sub-components:

o Rehabilitation of existing head structure and main concrete open canals with public investment. o Water use management plan developed from public investment o Financing support for construction of surface irrigation distribution canals from a financial intermediary.

Proposed crops:

124. The same five-year crop rotation plan described for the field of Ulaangom-Tarialan soum is suggested for Umnugovi soum. Alfalfa will start first in the rotation for 5 years followed by corn. After corn, wheat and barley will be introduced to the rotation. Potato will be entered to the field at the penultimate order. The last plant in the rotation are oat. It is estimated that the area needed for irrigation perimeter is 200ha. Expected yields for silage are 1,240 tons and for dry grain are 80 tons (Table 16).

Table 16. Plant rotation and production for feedlot

Crop plants Purpose Field, Yield, Total yield, (ha) (ton/ha) (ton) Alfalfa silage 40 0.8 80 Corn silage 40 10 1000 dry grain 20 0.8 40 Wheat & Barley silage 20 1.6 80 Potato crop rotation 40 - - Oat dry grain 20 0.8 40 silage 20 1.6 80 Total - 200 - 1320 ** Table provided by project agricultural team

(i) Water requirements

125. The estimated water requirements to irrigate the 200ha irrigated fodder farm of Umnugovi soum are estimated at 0.250 m3/sec.

B. Bayan-Ulgii Aimag

Overview

126. The improvements to basic urban infrastructure, and the development of agrobusiness facilities will occur Ulgii; the centre of UVs Aimag and at the selected soum centres of Deluun and Buyant. Unlike the infrastructure and agrobusiness investments in Deluun soum, only an irrigation scheme will be developed in Buyant soum. Most of the urban infrastructure will occur inside both urban centres while the agrobusiness activities will occur just outside both urban areas. Urban infrastructure planned for Ulgii and Deluun soum is presented first followed by planned agrobusiness investments.

1. Urban Infrastructure

a. Ulgii

127. Urban infrastructure investments in Ulgii are defined by the following 2 main components:

(i) Ger area housing redevelopment & services rehabilitation; and (ii) a complex of utility service improvements throughout Ulgii comprised of water supply, heating, wastewater collection & treatment, electricity, communications, solid waste management, roads & drainage, and flood control.

i. Ger area housing rehabilitation

128. Figure 15 provides an aerial view of Ulgii which highlights the perimeters of urban districts of Bag 13 (red) and Bag 5. Ger housing redevelopment is planned for Bag 13 and optionally in Bag 5. Ger redevelopment in Bag 5 may wait until Tranche 2 which will be determined at detailed design stage of Tranche 1. Redevelopment of housing and utility services will occur along a selected pilot road in Bag 13 (Figure 16a). The pilot road will be upgraded and new and upgraded utility trunk lines to service the redevelopment area will be installed along the right-of-way (ROW) of pilot road.

129. Redevelopment of ger area housing will occur in individual khashas and will consist of small 1-2 story apartments that are constructed with modern energy efficient construction materials. The apartments will be serviced with hot water heating, wastewater collection disposal, electricity, and solid waste recycling facilities. Technical Units (TU) comprised of toilets, bathing and laundry facilities will be included.

Figure 15. Aerial view of Ulgii highlighting Bag 13 (red) and Bag 5.

** Map provided from project architect

Figure 16. Bag 13 of Ulgii21

(a) Bag 13 showing pilot road (white line) (b) Ger housing redevelopment along pilot road

130. Owners of a khasha will be able to swap (cede) all or some of their khasha property for an apartment and/or TU. The options for participation with ger housing redevelopment that were determined from focus group discussions (FGD) with khasha owners is summarized as follows and shown in Figure 16b.

1. No land swap for an apartment but may buy serviced TU 2. Partial land swap for small apartment including TU 3. Total swap of khasha land for multifamily apartment and TU. 4. No decision on participation

ii. Basic urban infrastructure for Ulgii

131. The planned complex of infrastructure and utility services investments for Ulgii in Tranche 1 are summarized in Table 17 and shown in Figure 17. Schematic drawings of planned infrastructure will be prepared for detailed designs of Tranche 1. The scope of infrastructure

21 Bag 13 perimeter plot, pilot road ger development provided by project architect 80 investment in Ulgii includes utility services to re-developed ger housing of Bag 13 and optional redeveloped ger housing of Bag 5, and some of the agrobusiness investments for Ulaangom. (see below).

Table 17. Planned urban infrastructure investments of Tranche 1 in Ulgii22

Activity Descriptions Details

Type Type

Install new water well at the existing water source and two water storage Well 180 m3/hr; reservoirs that will improve flow and pressure regulation of the southern portion New Reservoirs 2x2,000 Water Resource and Distribution Upgrades of the city water distribution network, which includes the Bag 13 redevelopment m3; area. Twin 300-millimeter diameter water lines to connect the water source DN300, 2,800m;

directly to the new water reservoirs. Rehabilitate buildings, pumps, controls Water source/booster Water Water and related equipment at the water source, including new chlorination system station 200 m3/h Pipelines with manholes to connect the various Agropark facilities with the city DN150, 2,200m New Pipelines to support the Agropark

water distribution network.

Sewer Lines and Pump Station to Support Ger New gravity sewers with manholes to support project facilities. Lines will be DN200, 790m and Area Rehab in Bag 5 and Bag 13 installed mostly adjacent to existing roads 1,000m Plant capable of treating industrial wastewater generated by the Agropark to 250 m3/day Wastewater Treatment and Collection Lines for standards appropriate for disposal by infiltration, located near the park. Gravity the Agropark sewers to connect the various Agropark facilities with the new wastewater treatment plant will also be constructed. New wastewater treatment facility (WWTP) to be constructed at previously 3,000 m3/d New Wastewater Treatment Plant and Supporting designated location. Existing wastewater pump station and pressure sewer to Wastewater Facilities the WWTP capacity will be increased to

handle additional loading from urban development, with improved reliability. Heat distribution network rehabilitation necessary to support Bag 5, which will DN500*2, 1,500 m Heat Distribution System Upgrade also reduce system losses due to old pipe. Network pipes will be publicly owned A heat distribution substation will be installed at a new location to be Substation 2 gcal/hr; incorporated in the Bag 5 rehabilitation design. Facilities are of a standards DN200*2+DN100, configuration and are necessary to control heat and water distribution to area 450m, Heating Components to Support Bag 5 Rehab buildings to generate domestic hot water. Substations will be owned by the State and operated by the organization responsible for operations and maintenance of the housing area infrastructure. New heating supply and return lines installed adjacent to existing roads

in 1500mm concrete channel with potable water line Heating Similar to Bag 5 requirements, with a new heating distribution substation and Substation 2 gcal/hr; Heating Components to Support Bag 13 Rehab connecting pipelines in concrete channel DN150*2+DN100, 470m; DN200*2, 630m New coal-fired heating plant to serve the Agropark with heat and hot water, and 1.5 gcal/hr New Heating Plant to support Ulgii Agropark (see connecting pipelines with valve stations and manholes.

section 2b above on agroparks)

22 Modified from engineering description of Annex 3, Vol II of ASDIP Final Report 82

Electrical equipment replacements in central distribution station to improve 4000 kVA; 10kV lines, Central Electrical Distribution and System efficiency. Upgrade parts of the distribution system to current 10kV standard to 1.5 km; 1-400 kVa, 2- Upgrades improve efficiency and reliability. Replacement of aging 6/0.4 kV transformers 630 kVa, 1-1000 kVa with 10/0.4 kV, concurrent with line replacements. Overhead distribution lines with new poles and transformers for both Bag 5 and 10 kV, 0.71 km, 0.95km; Electrical Upgrades to Support Ger Area Rehab Bag 13, and some buried distribution lines, mostly located within the rehab Substations 4@400kVA areas. Electricity Electrical Upgrades to Support the Agropark New overhead power distribution lines and substation to serve Agropark facilities 10 kV line 0.45km;

400kVA substation

22 Modified from engineering description of Annex 3, Vol II of ASDIP Final Report

Activity Descriptions Details

Type Type

General Ulgii Aimag Center Communications Upgrade capacity and improve reliability of data transmission within the 48 core fiber-optic Upgrades aimag center Communications Upgrades to Support Ger Area Provide internet, IP TV and phone service to the Bag 5 and Bag 13 48 core, 1000 user x 2, 5760m Rehab rehab area residents and businesses, and adjacent areas

Communications Upgrades to Support the Agropark Provide internet, IP TV and phone service to the Agropark businesses, 48 core, 1000 user, 3780m

Communications and adjacent areas.

Rehabilitate and upgrade 6.9 km of the 15.3 km of urban roads as shown in the plan provided by the Aimag Government, comprising of 5 sections: 3.5 km of existing earth road on the north side of the Khovd river to be upgraded to serve as a flood protection embankment with erosion protection and asphalt paved, with lighting and sidewalks. 420 m of Urban Roads with drainage and utilities urban street in the area of the Military Camp will be upgraded with drainage and rebuilt water, sewer and heating, paving with sidewalks and lighting. 540 m of urban streets in the area between the Soum Governor's

Roads Office and School No.3 will be upgraded with drainage and rebuilt water, sewer and heating, paving with sidewalks and lighting. 310 m of urban street between the Thermal Plant and Eagle's Nest Hotel will be upgraded with drainage and rebuilt water, sewer and heating, paving with sidewalks and lighting. 1.9 km of earth road starting near the communications tower going south past the new Agropark site will be upgraded with drainage features and erosion protection, and asphalt paved, with lighting and

sidewalks.

Activity Descriptions Details

Type Type

Construct lined channels and culverts so that drainage water from the DN300, concrete culvert, 1.0 km; Upgrades to Support Ger Area Rehab rehabilitated area and immediate vicinity can be directed away from 1.0*1.0 m concrete channel, 1.15 km adjacent settlement areas. Does not include drainage facilities within the rehab areas. Upgrades to Support the Agropark Concrete lined channel to convert and convey drainage water away 1.0*1.0 m, 0.42 km from the Agropark site. Preparation of a comprehensive drainage plan for the urban areas of

TA on Urban Area Drainage Plan Ulgii that will calculate drainage flows, develop design criteria and Drainage identify improvement projects needed to implement the

plan and guide local planners. Flood protection embankment approximately 1.25 km along the Flood embankment to Bag 5 (Similar for West northern side of Bag 5, starting at the Khovd River bridge. embankment project) Embankment will be designed with recreational amenities such as foot/bike paths and rest areas following the guidance of the concept drawings prepared by the Aimag Government. Flood Protection -Bukhun section - Industrial zone - ASDIP will fund construction of part of the flood protection system 3.98 km around the southern industrial zone, following the plan prepared by the Aimag Government Completion of Flood Protection Levee system planned by the Aimag

Flood Protection Flood Flood Protection- Urban Perimeter

First phase of project works anticipated as follows: Existing 130ha site reduced to 15 ha Works Projects for Initial Site Cleanup, Priority • Identify area to designate for permanent development and fenced area Interventions, Waste Collection Pilot

consolidation of existing waste and construct a fence with Solid Solid Waste Waste access control and security. • Priority activities to correct current bad practices. • Initiate site cleanup • Pilot containerized waste collection

Figure 17. Plan views of infrastructure investments of Tranche 1 in Ulgii a) water and sewage

b) heating

86 c) electrical and communication

87 d) roads

88 e) flood protection and drainage

(i) Additional context for most environmentally sensitive infrastructure from Table 17

(excerpted from engineering description from Vol II of ASDIP Final Report)

Wastewater 132. Ulgii has a non-functioning mechanical wastewater treatment plant (WWTP) that was constructed in the 1980s. The Aimag government has increased the number of simple settling ponds to meet growing capacity needs. The facility is designed for 2700 m3 per day but often receives 3000 to 3500 m3 per day. The volume increases after summer rainstorms and when the nearby wool washing plant is in operation. There is no formal sanitation system in the ger areas with most residents using pit latrines that risk groundwater contamination.

133. The MCUD requested ADB to include funding for a new WWTP in ASDIP Tranche 1. A site for the new wastewater plant is tentatively located near the existing WWTP. There are no significant problems identified for the collection system piping. Rehabilitation of the primary sewage pump station and a DN250 replacement of the existing pressure sewer from the pump station will be done concurrently with the new WWTP.

134. The planned Agropark (see below) will generate wastewater not suitable for treatment by the city system, which will be designed for domestic wastewater only, so the park will have its own small treatment plant (250 m3/day) on-site that will be specifically designed to treat the Agropark waste. A small collection network will connect the Agropark facilities to the new plant. New gravity sewer lines will be required to serve the Ger Area Rehabilitation projects in Bag 5 and Bag 13. A small 50 m3/hr sewage pump station will be required for service of Bag 5 because of the low elevation at the eastern end.

Heating: 135. The developed portions of Ulgii are served by a single coal-fired heating plant, which was privatized after the 1990 economic transition. The private company owns and operates both the heating plant and the heat distribution network. The boiler equipment dates to 1983 but the company says that some of the pipe network dates back to 1955. The plant has a capacity of 65 MW using 4 boilers. The company has maintained the plant and the piping network with their own resources.

136. The company estimates that an additional 45 MW capacity will need to be added to meet planned growth in the next 20 years. The Ulgii heating plant operates only in the cold months (1 October to 1 May), so residents and organizations must generate their own hot water when the plants are not running. This is commonly done with electric water heaters. Heating in the ger areas and places outside the service are of the heating network is typical of all urban ger areas in Mongolia, where heat and cooking is by residential stoves that burn coal, wood or dung. Larger structures heat by unregulated, low-pressure heat-only combustion boilers that primarily use coal. The existing heating plant has the capacity to meet immediate heating demands for the city, but efficiency can be improved with replacement of some of the old, leaky pipes serving the central city. Approximately 1.2 km of dual DN 500 heating lines will be installed under Tranche 1, which will delay the need for additional heating plant capacity.

137. The Agropark (see below) is located far enough from the city heat distribution network that a separate small coal-fired heating plant is the most economical means of providing heat. There will be heat distribution pipes installed in concrete channel that will serve the various Agropark facilities. The separate heating plant will allow an operating schedule that conforms to the needs of the Agropark.

138. The Rehabilitation Areas in Bag 5 and Bag 13 will each require the construction of two heat distribution substations (CTPs), which will make domestic hot water for distribution with heating and cold water to the buildings in its service area. The Locations for substations in the Bag 5 areas have been previously identified in the Ulgii Master Plan, which will simplify the connection piping design and operations. Pipelines to convey heat and cold water will be constructed to serve then new CTPs. These pipes will be installed together in concrete channels buried adjacent to existing streets, in accordance with Mongolian construction standards.

139. The Aimag government has requested for support to construct a new heating plant of 45- 60 gcal/hr near the old airport. While the additional capacity will be needed in the future, rehabilitation of the aging pipe network will increase efficiency and effectively add some capacity to meet near-term needs. A budget for the new heating plant has been included for ASDIP Tranche 2-3. The request to install heating infrastructure in the settled areas north of the Khovd River is also designated for Tranche 2-3 along with the water and sewer systems. The configuration of the heat distribution network north of the river should be done to take advantage of the new heating plant.

Solid Waste Collection and Disposal: 140. The existing situation with solid waste collection and disposal in Ulgi centre is similar to Ulaangom and the need to meet current environmental standards and practices is too large a problem to be quickly solved. The Ulgii solid waste dumpsite is located on a hillside north of the Khovd River, and due to largely unregulated operations has expanded to an area of approximately 160 hectares. It is now quite close to residential settlements that have expanded from the south. Access is essentially limited to one road entering from the south, but there is no access control and no designated areas for dumping different types of waste. A large portion of the impacted area is windblown trash and there is no provision or equipment available to cover or consolidate the waste. The dumpsite is situated in an elevated area about 1.5 km from the Khovd river, but there is a large settlement area in between the dumpsite and the river. There is no evidence that there is near-surface groundwater, but there are no measures in place to prevent runoff from the site from impacting the nearby settlements.

141. The city does not presently have a formal solid waste collection and transport system that fully covers all areas, and waste from commercial and industrial waste generators is handled by the respective organizations. Ash from the heating plants is disposed separately from the city dumpsite, but ash from small stoves and boilers makes up a large portion if the waste at the city site. However, similar, to Ulaangom and Jargalant (below), heating plant dumps sites for ash are not part of the project. Further, following the protocol for the Aimag heating plants, ash from the new heating plants in the agroparks will also be dumped into separate dumps sites which will also not be part of the project. There are no fees of fee collection mechanisms for dumping at the site.

142. Similar to Ulaangom and Jargalant below, Tranche 1 will be the first phase of a program to provide Ulgii with an environmentally sound and sustainable solid waste management system and clean up/ remediate the results of past uncontrolled solid waste disposal practice. The activities will be a mix of technical assistance as follows: ▪ Characterization of existing conditions - Includes type of waste, physical situation (soils, groundwater, topography) and the environmental hazards that need to be remediated and mitigated, based on the existing waste and projected future use of the

sites. This will result in recommendations for design of cleanup programs and site improvements. Includes drilling, groundwater sampling and testing. ▪ Initiate formulation of a solid waste manage plan at the local level that includes collection, disposal and cost recovery mechanism(s) and capacity development needs, as well as implementation of a phased cleanup and restoration plan. ▪ Construct a fence with access control and security around areas designated for permanent development and consolidation of existing waste (15 ha). ▪ Initiate priority activities to correct current bad practices that are public health risks, such as groundwater contamination. ▪ Research and formulate opportunities for recycling with associated costs and benefits, coordinated with Aimag and regional programs. ▪ Develop a capital investment program for new facilities and equipment that can be done in T2-3 and with State funding. ▪ Initiate cleanup of existing dump site with waste consolidation and perimeter fencing. ▪ Pilot containerized solid waste collection in urban core and ger rehabilitation areas with five trucks and 50 bins or skips.

b. Deluun soum

143. The infrastructure investments in Deluun are similar but smaller in scale than planned investments in Ulgii. The investments do not include a ger area redevelopment plan. Instead public buildings and amenities will be improved. Similar to Ulaangom improvements to infrastructure will also service some of the agrobusiness facilities that will be developed in Umnugovi (see below).

i. Public Buildings and Amenities

144. Urban infrastructure and services of Tranche 1 include improvements to sanitation housing, and public buildings in the soum centre which are described below and illustrated in Figure 18. Sanitation: 145. Indoor toilets are inadequate or are lacking in most public buildings such as schools- kindergartens, dormitories, and hospitals. The ASDIP will finance rehabilitation or construction of new sanitary units which will replace the existing dominant pit latrines which are often located at uncomfortable distances away from buildings. Dormitories: 146. One of the biggest handicaps for education in the rural areas is the lack of beds for children at school. The ASDIP will construct required student dormitories. Multi-purpose buildings: 147. These buildings are required to support activities that are lacking such as libraries or recreation for students on school property. The project will rehabilitate or construct new buildings to enable various multi-purpose functions. Sport:

148. The ASDIP will construction simple sport complexes for the community. The complexes will serve playground needs of young children as well as more organized sport for young adults. Staff housing units: 149. In order to attract and keep outside staff (e.g., teachers, medical professionals) whether permanent or seasonal staff, housing accommodation is required. The project will construct simple housing apartment units for this purpose. All buildings will be equipped with an additional supply of electricity through the implementation of PV solar panels with batteries as power storage.

Figure 18. Planned improvements to public buildings and sanitation in Deluun soum

ii. Basic infrastructure improvements in Deluun soum

150. The planned improvements to basic infrastructure in Deluun soum are summarized in Table 18. Aerial plan views of the infrastructure are provided in Figure 19.

Table 18. Planned urban infrastructure investments of Tranche 1 in Deluun soum23

Activity Description Details

Type Type

Two water supply wells with wellhouses. with water reservoirs and Well depth 60m; reservoir 50m3 connecting pipelines, for soum center and Agropark. There should be a New Water Source with reservoir and pipelines hydrogeology study done to confirm the best well location as part of the design TA for the soum center infrastructure. Water Buried water supply pipe network with manholes and building connections for DN100, 3,300m Water distribution network (includes Agropark) the major public buildings and the Agropark. DN50, 680 m

Plant capable of treating domestic wastewater generated by the schools and 100 m3/d activated sludge plant; New Wastewater Treatment Plant, Collection Network public buildings to standards appropriate for surface disposal, tentatively DN150, 200m located southeast of the soum center, and a buried gravity sewer collection DN200, 1,100m gravity sewers network to convey sewage from major public buildings to the wastewater with connections treatment plant. Tanker truck configured for cold climate operations equipped with a vacuum 5 m3 capacity pump and hoses that can extract sewage and sludge from holding tanks, Vacuum truck for septic system service cesspits and septic tanks as required for maintenance and transport the waste to a designated

Wastewater location for treatment and/or disposal. Plant capable of pre-treating industrial wastewater generated by the 50 m3/day

Wastewater Pre-treatment for Agropark Agropark to standards appropriate for treatment by the community WWTP.

New coal-fired heating plant to serve the soum center and Agropark with heat 1.5 gcal/hr plant; and hot water, and connecting pipelines to the major buildings and Agropark DN150*2+DN100 pipelines, New Heating Plant and Distribution Network (see facilities with valve stations and manholes. 950m

Heating section 2b above on agroparks)

Replacement of overhead cables and transformers to increase the capacity 0.4 kV, with substations; New Compact Transformer substations and 0.4 kV and reliability of power distribution within the soum center. Includes new 10 kV, AC-50, 1.5 km lines with meters and boxes for Soum Center (design overhead high voltage supply with transformer to provide power to the new is done) water supply well pumps New overhead power distribution lines and 400kVA substation to serve 10 kV OH line, 0.63km;

Electricity New 10 kV lines and Substation for Agropark Agropark facilities 400 kVa substation

23 Modified from engineering designs of Annex 3, Vol II of ASDIP Final report

Activity Description

Type Type

New Optical cable with 500 user MSAN station to Provide internet, IP TV and phone service to the soum center and Agropark 48 core, 500 user, 2360m

support Deluun soum and Agropark residents and businesses.

Communications

First phase of project works anticipated as follows: • Identify area to designate for permanent development and Initial Site Cleanup, Priority Interventions, Waste consolidation of existing waste and construct a fence with access Existing 200ha site reduced to 15 Collection Pilot control and security. ha fenced area • Priority activities to correct current bad practices.

• Initiate site cleanup Solid Waste Solid

• Pilot containerized waste collection

Figure 19. Plan views of infrastructure investments of Tranche 1 in Deluun soum a) water and sewage & new WWTP

96 b) heating

97 c) electrical

98 d) communications

99 e) dumpsite

100

(ii) Additional context for most environmentally sensitive infrastructure from Table 18

(excerpted from engineering description from Vol II of ASDIP Final Report) Wastewater: 151. There is no formal wastewater collection, treatment or disposal system in the soum center. Public buildings and housing areas use pit latrines and cesspits that present potential risks of groundwater contamination. There are no provisions for servicing pit latrines or holding tanks, and when they become full, they are covered and relocated.

152. Companion to the water supply system will be a wastewater collection network that will connect to a new small (100 m3/day) wastewater treatment plant capable of treating domestic wastewater generated by the schools and public buildings to standards appropriate for surface disposal, tentatively located east of the settled area of the soum center.

153. The planned Agropark (see below) will generate wastewater not suitable for treatment by the soum center system, which will be designed for domestic wastewater only, so the park will have its own small treatment plant (50m3/day) on-site that will be specifically designed to pre-treat the Agropark waste so it can be safely discharged to the soum center treatment plant. A small collection network will connect the Agropark facilities to the new plant.

154. Deluun will also be supplied with a 5m3 tanker truck equipped with a vacuum pump for servicing holding and septic tanks, and other on-site sanitation systems. Provisions for receiving, treating and correctly disposing of waste collected by the truck will be included in the WWTP design and overall plan for wastewater treatment and disposal for the soum center that will be developed at detailed design stage of Tranche 1.

Heating: 155. There is one privately owned, coal-fired heating plant in Deluun with a piped distribution network that that serves some of the public buildings and operates during the winter heating season. Smaller public buildings and residences heat by individual stoves that burn coal, wood, or dung. Heating needs for the Deluun and the Agropark exceed the capacity of the present privately-run heating plant, so a new 1.5gcal/hour plant will be constructed under ASDIP Tranche 1 that will serve the public buildings and the new Agropark. There will be a new buried heat distribution network installed in concrete channels that will also contain water lines, which will connect to all serviced buildings.

Solid waste management: 156. The existing situation with solid waste collection and disposal in Deluun, although on a smaller scale, is similar to that in Ulgii and the need to meet current environmental standards and practices is too large a problem to be quickly solved. The Deluun solid waste dumpsite is located approximately 2.2 km to the east of the soum center and due to largely unregulated operations has expanded to an area of approximately 50 hectares. There is no fencing or access control and a large portion of the impacted area is windblown trash. There are no provisions to cover or consolidate the waste. The dumpsite is located in a flat area and there is no surface water near the site. Groundwater is shallow in the area, but the dumpsite is located at a lower elevation from settled areas and the planned ASDIP Agropark.

157. There is presently no formal solid waste collection and transport system, and residents are responsible for their waste disposal. The soum center does have a truck and front-end loader that can be used to support dumpsite operations, but there is limited funding support. A large proportion of the waste is stove ash, but there is also waste from livestock slaughtering openly dumped with the household waste.

158. Tranche 1 will be the first phase of a program to provide an environmentally sound and sustainable solid waste management system and clean up/ remediate the results of past uncontrolled solid waste disposal practice. The activities will be a mix of technical assistance as follow: ▪ Characterization of existing conditions - Includes type of waste, physical situation (soils, groundwater, topography) and the environmental hazards that need to be remediated and mitigated, based on the existing waste and projected future use of the sites. This will result in recommendations for design of cleanup programs and site improvements. Includes drilling, groundwater sampling and testing. ▪ Initiate formulation of a solid waste manage plan at the local level that includes collection, disposal and cost recovery mechanism(s) and capacity development needs, as well as implementation of a phased cleanup and restoration plan. ▪ Construct a fence with access control and security around areas designated for permanent development and consolidation of existing waste (5 ha). ▪ Initiate priority activities to correct current bad practices that are public health risks, such as groundwater contamination. ▪ Research and formulate opportunities for recycling with associated costs and benefits, coordinated with Aimag and regional programs. ▪ Develop a capital investment program for new facilities and equipment that can be done in T2-3 and with State funding. ▪ Initiate cleanup of existing dump sites. ▪ Pilot containerized solid waste collection for the larger buildings with one truck and 5 bins or skips.

2. Agrobusiness investments at Ulgii and Deluun & Buyant soums

159. Tranche 1 of ASDIP will develop the following three types of agrobusiness investments Ulgii and in the soum centres of Deluun and Buyant (only irrigation scheme).

(a) Community-based projects for Pasture User Groups (b) Agroparks (c) Irrigation schemes and fodder farms

a. Community-based projects for Pasture User Groups (PUG)

160. Community micro-projects for herders will be financed by the project to increase animal productivity. Herders must be a member of local PUG to access support. Members of PUGs will contribute through the provision of in-kind labor, cash and/or materials. The locations of the projects have not been determined.

102

161. The indicative types of community micro-projects to be financed are listed below: ▪ Hay protected areas: a 15ha pastureland perimeter near a river will be selected and enclosed with stonewalls. Water canal diversions likely established for irrigation by gravity. ▪ Small equipment and trucks: mini-tractors equipped with agricultural machinery and tools to support pasture management will be provided. ▪ Storage for hay and fodder (shelters). ▪ Animal combing and shaving facility and equipment with storages and disinfecting bath. ▪ Winter wind shelters for animals. ▪ Water wells: Construction of 6 new wells and rehabilitation or fixing of 4 old wells will be performed. ▪ Animal bathing facilities. ▪ Animal drinking water facilities. ▪ Small bridge/river/stream crossing and earth road repair.

b. Agroparks

162. The Agroparks in Ulgii and Deluun soum will consist of Disease Free Establishments, meat processing facilities, laboratory & veterinary services, a Research Development Centre, business incubator centres, and agricultural processing industries. The Agroparks will be located just south of Ulgii (Figure 20) and just southeast of Deluun soum (Figure 21). The Agroparks will be serviced in part by the urban infrastructure planned for the urban centres defined above.

i. Disease Free Establishment

163. The Disease Free Establishment will include the following sub-components: ▪ Inspection laboratory and animal inspection zone. ▪ Animal feedlot – disease free zone with quarantine activity for disease controlling.

103

Figure 20. Location of Agropark south of Ulgii centre

164. The Disease Free Establishment will be located to enable easy reach by livestock herds. The irrigation scheme and fodder farm (see below) will produce fodder that is necessary for the Disease Free Establishment to function.

104

Figure 21. Location of Agropark at Deluun soum

165. The Animal Feedlot of the Disease Free Establishment in Ulaangom will have a capacity of 1,000 animals that can be kept isolated for 2 to 3 weeks in case of animal disease outbreaks or for export requirements. On average the required area for small and big animals is 10 m2/animal. The required total area for the disease-free zone and feedlot is 1ha. To be added is a 0.5ha animal inspection unit with offices and laboratories, a 0.5ha animal shelter, a 0.5ha hay and fodder shelter area, a 0.5ha abattoir zone, and a 0.5ha agricultural machinery parking lot.

166. The complex will include enough storage for hay & fodder in order to feed the 100 head of livestock during the two to three week period without grazing. Table 15 calculates the corresponding hay/fodder storage need as 2,592 tons, given that there is only one harvest for hay at the end of the summer.

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Table 19. Hay/fodder storage needs

167. The animal feedlot of the Disease Free Establishment will include the following features:

168. An Animal Feedlot will be also established in Deluun soum but with half the capacity. Similarly, the Disease Free Establishment will be integrated within the Agropark at Deluun soum. Capacity of the disease-free zone and feedlot is 500 animals and an area of 0.5 ha. 169. The Disease Free Establishment of Ulgii will include an inspection laboratory and animal inspection zone that will form part of the main laboratory for veterinary services and disease and quality control. The main laboratory will be integrated within the Agropark. Since 2018, the Veterinary Agency became separated from the Ministry of Food, Agriculture and Light Industry (MOFALI) and therefore need new offices. The offices and the laboratory will be combined in the same building in the Agropark. 170. The laboratory in Deluun soum will also be integrated within the Disease Free Establishment at the Agropark at the edge of the soum center (see below). It will also include veterinary offices. 171. It is necessary to provide a building and properly designed laboratories, equipment, and laboratory consumables for the operation of Veterinary Agencies at Ulgii and Deluun soum relative to the animal disease prevention, traceability, clinical services, and activities in the disease-free zone. The main features of the laboratories including equipment are exemplified in Table 20. The management of lab waste consumables, provision of a possible incinerator for these wastes, and funding for licensed operators in support of the laboratories of all agroparks will wait to be determined at until DED.

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Table 20. Example required equipment and consumables for inspection laboratory

Items Purpose Amount needed Ulgii lab. Deluun lab. Equipment required 1 Thermostat Drying samples and glasses 2 pc 1 pc 2 Autoclave Sterilization for tools and glasses 2 pc 1 pc Determining toxic substances in meat and 3 LC tandem MS 1 pc - food such as antibiotics, pesticides, toxins NIR Determining fat, moisture, carbohydrates 4 1 pc 1 pc spectroscopy & sugar in milk and other substances For extraction of sedimentation from 5 Centrifuges 2 pc 2 pc various biological samples 6 pH-Meter Determining acidity condition of samples 2 pc 2 pc 7 Microscopes Analytical purpose 2 pc 2 pc Car equipped for 8 veterinary For mobile laboratory activity 1 pc 1 pc services For keeping animals during the veterinary 9 Mobile fence 7 pc 7 pc activity 1 Disinfecting bath For animal wash and disinfecting purpose 7 pc 7 pc 0 1 Laminar hood For aseptic isolation activity 1 pc - 1 Consumables needed 1 Sample label For blood and other biological samples 40,000 pc 40,000 pc Container for 2 For carrying samples 40 pc 40 pc labels 3 Biological tubes For blood sample 40,000 pc 40,000 pc 4 Aseptic needle For syringe for blood withdraw 40,000 pc 40,000 pc 5 Needle stand For blood sampling 400 pc 400 pc 6 Gloves For aseptic purpose 500 box 500 box Laboratory safety 7 For aseptic and disinfecting activity 1000 pc 1000 pc clothes Lab kits for fast 8 For field test 40 pc 40 pc testing of rabies Lab kits for fast 9 testing of cow- For field test 40 pc 40 pc pox Training and capacity building activity 1 Laptops For data processing in the field 1 pc 1 pc 2 Desktops For data processing in the office 1 pc 1 pc 3 OH projector For data presentation 1 pc 1 pc 4 Microphone For data presentation 1 pc 1 pc 5 Color printer For data sharing 1 pc 1 pc 6 White screen For data sharing 1 pc 1 pc

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(i) Water needs

172. The water requirements of the Disease Free Establishment in Ulgii are estimated as drinking water: 2.6 m3/day, and process water: 50 m3/day.

ii. Meat processing facilities

173. There are two meat processing facilities in Ulgii which use apply the Halal standardization. Both have contracts established to export raw meat to China and Iran. Existing meat processing facilities have similar capacities, about 600 animals per day, but none of them function at full capacity. The project will provide financing support to the private sector to build a meat processing facility close to the Disease Free Establishment. The capacity of the meat processing facility will be 150 big animals and 600 small animals per day, functioning 8 months a year. The design of the meat processing facility will follow FAO (1988) and WHO (1984) standards for operations and environmental protection.

(i) Water Needs

174. The water requirements of the meat processing facility in Ulgii are estimated as: drinking water: 105 m3/day and a total of 210 m3/day with meat processing.

175. There is not a proper meat processing facility in Deluun. Animals are simply killed outside. The project will build a simple meat processing facility respecting international environment standards and equipped with storage facilities and sorting rooms. The capacity of the meat processing facility will be 150 animals per day in a combined line (small and big animals) functioning 8 months a year. The meat processing facility will be located close to the Disease Free Establishment within the Agropark (see below).

(ii) Water Needs

176. The water requirements of the meat processing facility in Deluun are estimated as: 30 m3/day without meat processing (60 m3/day with meat processing).

(iii) Design standards for meat processing

177. The design of the meat processing and storage facilities for Ulgii and Deluun will follow FAO (1988) and WHO (1984) standards for operations and environmental protection along with the other international standards for meat processing facilities summarized above for Ulaangom and Umnugovi.

(iv) Waste treatment

178. See description of waste treatment detail for Agroparks for Ulaangom and Umnugovi soum above.

iii. Processing industries, storage, & business incubation

179. The Agroparks will support development of small agro-process industries and business promotion. It is envisioned that the Agroparks will host a non-exhaustive list of business and agro- process opportunities that will be dictated by and support local Agrobusiness Development

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Planning. Example processing industries are dairy farm, greenhouses, vegetable processing, leather finishing (not tanneries), and wool processing.

(i) Water requirements

180. The estimated water requirements of planned processing industries of Agropark are summarized in Table 21.

Table 21. Estimated process industry water requirements of Agroparks

iv. Environmental Management System

181. The government will need to develop an Environmental Management System (EMS) for the Agroparks in Ulgii and Deluun that will be managed by the Aimag and soum governing authorities. The EMS will consist of a set of procedures and guidelines to ensure the protection of local environment and natural resources. The PISC will assist with the development of the EMS. The EMS will form part of the project loan covenants.

c. Irrigation networks and fodder farms

i. Ulgii / Buyant soum

182. An abandoned irrigation scheme and fodder farm will be rehabilitated. A 500ha site has been selected in Buyant soum due to land availability, and close proximity to an existing paved road and electrical power supply lines. The irrigation scheme will be implemented into three parts:

o The head structure and the main irrigation canal will be rehabilitated with associated equipment (water gates, etc). The system will function by gravity. o A Water Resources Management Plan will be prepared. o Financing support (concessional loans) will be provided to the private sector (cooperative or private company) to develop a dual water irrigation scheme on 500 ha comprised of two perimeters of 230ha and 270ha.

183. The selected site was an irrigated perimeter during the Soviet era. It is easily accessible from Ulgii and can be easily connected to needed infrastructures, including the main irrigation canal / head structure. The proposed existing head-structure of the irrigation scheme, irrigation canal, and irrigation perimeter of a total of 500ha are shown in Figure 22.

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Figure 22. Location of irrigation scheme southeast of Ulgii in Buyant soum

Site characteristics:

184. The chemical and physical parameters of the soil of the irrigated perimeters have been determined. The low salinity level (0.05%) of the soils indicate the perimeter areas are suitable for crop farming with appropriate cultivation technologies. The low levels of the three primary nutrients, NPK (N=0.91 mg/100g), suggests the need for appropriate application of inorganic fertilizers as well as cultivation of leguminous plants, such as alfalfa, in the crop rotation plan.

185. The soil is classified as light loamy brown – dry land pasture soil with 61.4%±4 of 0.01- 0.25 mm of particles; 19.7±1mg/kg of phosphate (P) levels; and 15-20 cm of humus. The alkaline pH 8.16±0.2) indicates a need of organic fertilizers such as compost comprised of animal manure in order to normalize the pH level. The soil has sufficient amount of humus (2.07%±0.1) for proper crop farming activity. The composition of calcium (Ca = 17.89±1.3 meq/100g), magnesium (Mg = 5±0.6 meg/100g) and potassium (K = 29.3±2.3 mg/100g), as well as the Ca/Mg ratio of 3.9

110 suggests the soil fertility needs to be improved with inorganic calcium (gypsum or lime) and potassium-based fertilizers.

System implementation:

186. The irrigation system will function by gravity with a head structure diverting water from the nearby river into open and closed concrete canals with water gates and irrigation machinery. The irrigation system will include the following sub-components which will be owned and managed by the soum government: ▪ Head structure and main concrete closed and open canals ▪ Water use management plan in the Umnugovi river basin area ▪ 5 pawed irrigation machinery. ▪ 2 tractors equipped with agricultural machinery for soil and crop cultivation ▪ One silage preparation unit with a capacity of 1,000 tons. ▪ One fodder and silage storage house. ▪ One fence with garages for agricultural machinery parking. ▪ Financing support for 500 ha irrigation scheme and machinery

(i) Water requirements

187. The estimated total water requirements to irrigate the combined 500ha irrigated fodder farm of Ulgii / Buyant soum is estimated at 0.625 m3/sec.

Expected crops

188. The purpose of this irrigation system/fodder farm is to supply the Disease Free Establishment and herders with food for animals. The irrigated perimeter will produce a combination of cereal and leguminous crops to be used for fodder such as oat, barley, wheat, corn, beans/peas, and alfalfa, and these crops will be mixed together to produce fodder. The proposed crop plants will be cultivated in a five-year rotation scheme based on cultivation schedule of the perennial crop alfalfa for 5 years as a purpose of enhancement of soil organic matters. Potato will also be introduced in the crop rotation scheme for weed suppression and to loosen the soil. According to the five-year rotation plan, the field will be divided into 5 sections as described in Table 22. The first plant in the rotation is alfalfa to be grown for 5 years, followed by corn After the corn, wheat and barley will be introduced to the rotation. Potato will be entered to the field at the penultimate order. The last crop in the rotation are oats. It is estimated that the needed area of the irrigation perimeter will be 500 hectares. Expected yields for silage are 3,100 tons and for dry grain are 200 tons.

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Table 22. Crop rotation and production for feedlot

Crop plants Purpose Field, (ha) Yield, Total yield, (ton/ha) (ton) Alfalfa silage 100 2 200 Corn silage 100 25 2500 Wheat & dry grain 50 2 100 Barley silage 50 4 200 Potato crop rotation 100 - - Oat dry grain 50 2 100 silage 50 4 200 Total - 500 - 3300

ii. Deluun soum

189. As recommended by local government, an abandoned 200ha irrigated perimeter located 5km southwest of the soum center will be re-used for hay production (Figure 23). Similar to Ulgii, the irrigated perimeter will produce hay for the Disease Free Establishment of Agropark and local herders.

Figure 23. Location of irrigated hay growing area in Deluun soum

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Site characteristics 190. In general, the soil is classified in light loamy soil with depth of <15 cm (51.8% of 0.05- 0.25mm particles). Chemical conditions of soil are: humus content is moderate (1.43%); major nutrient elements compositions are poor, such as, K- 24.17mg/100g, P- 2.27 mg/100g, N- 0.12mg/100g, Ca- 11.33meq/100g, and Mg- 5.5meq/100g. Alkaline pH level (7.7).

Planned development:

191. The irrigation system for the hay field of 200ha will function by gravity starting with a head structure that will divert water from nearby river into an open concrete canal with water gates. The irrigation system will include the following sub-components:

(i) Water requirements

192. The estimated water requirements to irrigate the 200ha irrigated hay field of Deluun soum are estimated at 0.250 m3/sec.

C. Khovd Aimag

Overview

193. The improvements to urban infrastructure and services, and the development of agrobusiness facilities will occur in Jargalant; the centre of Khovd. A soum centre for Khovd Aimag has not been selected with Tranche 1. Most of the urban infrastructure will occur inside the urban area while most of the agrobusiness activities will occur just outside Jargalant. Urban infrastructure planned for Jargalant is presented first followed by planned agrobusiness investments.

1. Urban infrastructure

194. Urban infrastructure investments in Jargalant are defined by the following 2 main components:

a) Ger area housing & services rehabilitation; and b) a complex of utility service improvements throughout Jargalant comprised of water supply, heating, wastewater collection and treatment, electricity, communications, solid waste management, flood protection, and roads & drainage.

a. Ger area housing rehabilitation

195. Figure 24 provides an aerial view of Jargalant centre which highlights the perimeter of Alagtolgoi (Bagh) in which ger housing redevelopment is planned. Redevelopment of housing and utility services will occur along a selected pilot road in Alagtolgoi (Figure 25a). The pilot road will

113 be upgraded and new and upgraded utility trunk lines to service the redevelopment area will be installed along the right-of-way (ROW) of pilot road.

Figure 24. Aerial view of Jargalant highlighting Alagtolgoi (Bagh).

** Map provided from project architect

196. Redevelopment of ger area housing will occur in individual khashas and will consist of small 1-2 story apartments that are constructed with modern energy efficient construction materials. The apartments will be serviced with hot water heating, wastewater collection disposal, electricity, and solid waste recycling facilities. Technical Units (TU) comprised of toilets, bathing and laundry facilities will be included.

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Figure 25. Alagtolgoi (Bag) of Jargalant24

(a) Alagtolgoi showing pilot road (white line) (b) Ger housing redevelopment along pilot road

197. Owners of a khasha will be able to swap (cede) all or some of their khasha property for an apartment and/or TU. The options for participation with ger housing redevelopment that were determined from focus group discussions (FGD) with khasha owners is summarized as follows, and shown in Figure 25b.

b. Basic urban infrastructure improvements

198. The planned improvements to the complex of infrastructure and utility services for Tranche 1 for Jargalant are summarized in Table 23. Plan views of infrastructure upgrades are provided in Figure 26. Schematic drawings of planned infrastructure will be prepared for detailed designs of Tranche 1. The scope of infrastructure improvements includes utility services to planned ger housing rehabilitation of Alagtolgoi, and to the planned agrobusiness investments (see below).

24 Alagtolgoi perimeter plot, and pilot road ger development provided by project architect. 115

Table 23. Planned urban infrastructure investments of Tranche 1 in Jargalant25

Type Activity Description

Rehabilitate wellhouse buildings, pumps, controls, electrical supply and Wells 90m3/h; control wiring. Replace and enhance flow and pressure monitoring with Booster Pumphouse appropriate SCADA so that water production and equipment status can be 200m3/h Water Source and Booster Pump Station monitored and controlled; Replace connecting pipeline between locations Rehabilitation, new Chlorination System and rebuild fences and security features as required. Booster pump station rehab to strengthen network pressurization, and new chlorination system. Upgrade system metering and identify leaks for prioritizing pipe replacements

Water Water New water pipeline with manholes to connect the Rehabilitation Area to DN200, 3,200 m New Pipelines to support Ger Area Rehab the existing water supply network. New water pipeline with manholes to connect the Agropark to the existing DN150, 680m New Pipelines to support Agropark (single pipeline) water supply network. Water source well for new livestock health facility, including submersible 90m3/h Water well for Livestock Health Facility pump, controls and electrical connection, with a small reservoir and

wellhouse

Major rehabilitation of existing wastewater treatment plant (WWTP) to bring 3,000m3/d; plant up to secondary treatment standards and projected loading through Pressure Sewer DN300, Rehabilitate and upgrade of existing WWTP, pump 2040 (3000 m3/day), including replacement of all major equipment, 3,200 m station and pressure sewer pipeline rehabilitation of tankage and piping to repair leaks, chlorination system and effluent disposal system. Add facility to receive latrine waste from remote locations. Work will be done within existing WWTP site. New Sewer Lines to support Bag Takhilt and New gravity sewers with manholes to support project facilities. Lines will DN300, 1200 m Alagtolgoi Ger Area Rehab be installed mostly adjacent to existing roads. Wastewater Wastewater treatment plant designed to stabilize industrial wastewater from 250 m3/d Wastewater Treatment and Effluent Lines for the the Agropark so that the plant effluent can be safely introduced into the city DN200, 2,330m

Agropark collection and treatment system, which is designed for domestic waste.

Possible upgrade to the heat distribution pumps at the State heating plant 200m3/h, 2 pumps Circulation Pump Upgrade at State Heating Plant to improve capacity until the Tranche 2-3 major upgrading project New heating supply and return lines, previously planned and designed, to DN80*2+DN80, 232 m Heating Components to Support Bag Takhilt and serve the ASDIP Ger Area Rehab will be installed in 1500mm concrete DN125*2+DN100, 54 m

Heating Alagtolgoi Rehab channel with potable water line, including valve stations and access DN200*2+DN100, 774 m manholes. Lines will be DN250*2+DN100, 583m

installed adjacent to existing roads.

25 Modified from engineering designs of Annex 3, Vol II of ASDIP Final Report. Type Activity Description

New heating supply and return lines installed in 1500mm concrete channel 2 gcal/hr substation; Heating Components to Support the Agropark with potable water line, including valve stations and access manholes, Pipes DN200*2+DN150, and new heating distribution substation for the Agropark. Facilities are 3,800 m standard design configuration and are necessary to control heat and water distribution to area buildings and include heat exchangers to generate domestic hot water.

Type Activity Description Details

Rehabilitation and efficiency upgrades for central distribution substation. 10 kV OH lines, 40 km; General Aimag Center Electrical Upgrades Preparation for eventual conversion to 10 kV from 6kV. Replacement of 35 Substations: aging and inefficient 6.0/0.4kV transformers. 20-400 kVA, 10-630 kVA, 5-1000 kVA Electrical Upgrades to Support Ger Area Rehab New substations to satisfy load requirements of ASDIP ger area rehab. 3-400 kVA Overhead line from the central distribution substation and 10/0.4 kV 10 kV, AC-70, 0.5km;

Electricity Electrical Upgrades to Support the Agropark substation at the Agropark for service to new facilities 630 kVA Substation

General Khovd Aimag Center Communications Cable replacement to upgrade capacity and improve reliability of data 48 core fiber-optic Upgrades transmission to and from the aimag center

Communications Upgrades to Support Ger Area Provide internet, IP TV and phone service to the rehab area residents and 48 core, 1000 user, 2.5 Rehab businesses, and adjacent areas km Provide internet, IP TV and phone service to the Agropark businesses and 48 core, 500 user, 4.6

Communications Communications Upgrades to Support the Agropark adjacent areas. km

Upgrading of 2.2km of ger area earth roads with asphalt paving, sidewalks and improved lighting, incorporating water, sewer and heating infrastructure. New roads for urban and ger areas, Agropark 0.2 km asphalt road connecting the Agropark to the nearest paved road, with

sidewalks Roads

and lighting Construct lined channels and culverts so that drainage water from the Drainage channel and rehabilitated area and immediate vicinity can be directed away from adjacent pipe, 4 km Drainage Improvements per Jargalant Soum Master settlement areas. Does not include drainage facilities within the rehab areas Plan and these designs must be coordinated. Drainage structures will be constructed adjacent to existing roads whenever possible. Work to begin in

Drainage Tranche 1 and

continue in Tranche 2-3 after drainage master plan is completed and approved.

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Type Activity Description Details

Staged construction of flood protection channels on the south and east Flood protection channels and storage pond per perimeters of the city that will integrate flood protection with a pond that can Channel C1 + C2m, 7.2

Master Plan to Protect Urban Center km

tion Protec Flood Flood that can hold drainage water for reuse for irrigation First phase works projects: Existing 284ha site • Identify area to designate for permanent development and reduced to 15 ha fenced consolidation of existing waste and construct a fence with access area Initial cleanup, priority actions, fencing and access control and security. control • Priority activities to correct current bad practices.

Solid Waste Solid • Initiate site cleanup

• Pilot containerized waste collection

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Figure 26. Plan view of infrastructure investments of Tranche 1 in Jargalant a) water and wastewater

119 b) heating

120

c) electricity

121

d) flood protection

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(i) Additional context for most environmentally sensitive infrastructure in Table 23

(excerpted from engineering description from Vol II of ASDIP Final Report)

Wastewater: 199. Jargalant city centre is served by a mechanical treatment plant that was constructed in 1987 and was upgraded with new air blowers, pumping equipment and a chlorination system in 2012. The plant was designed capacity is 7,200 m3/day and the reported maximum flow is 4,800 m3/day, but the plant's treatment effectiveness is reported as 50%-60% under normal operations. Discharge from the WWTP is pumped to unlined settling ponds that are located about 300 m from a small stream that is part the Buyant River channel.

200. The Jargalant WWTP is in need of major repairs and upgrading to meet national and international discharge standards, but it is not presently included in any Aimag Center WWTP upgrading programs. A detailed analysis of the existing facility and detailed design of improvements will be conducted at detailed design stage of Tranche 1 to determine what actions will be required. However, the anticipated major upgrades should be able to meet environmental requirements for treated effluent and have the capacity to adequately treat anticipated wastewater flows until the year 2045. With the new WWTP from Tranche 1 there should be upgrading or replacement of the existing wastewater pump station and pressure sewer that connects the city collection network to the new plant.

201. The planned Agropark for Jargalant (see below) will generate wastewater not suitable for treatment by the city system, which will be designed for domestic wastewater only. The park will have its own small treatment plant (250 m3/day) on-site that will be specifically designed to pre- treat the Agro-park waste so that the effluent can be disposed through the city sewage collection system without disrupting operations of the WWTP. A small collection network will connect the Agro-park facilities to the new plant. New gravity sewer lines will be required to serve the Ger Area Rehabilitation project in Bag Takhilt and Alagtolgoi and other urban areas to connect them to the city sewage collection network.

Heating: 202. The developed portions of Jargalant are served by two coal-fired district heating plants. The original plant, which was privatized after the 1990 economic transition, serves the northern portion if the city. The company has maintained and upgraded portions of the piping network with their own resources. The State-owned heating plant was commissioned in 2014 and provides heat to approximately 50% of Jargalant Soum - 1600 families, 24 organizations and 25 businesses. The plant is designed to produce 14MW from 3 boilers but is already running at nearly full capacity and the Aimag Government is proposing an upgrade to double the plant's capacity.

203. The State plant was designed for coal with a heating value of 6100-6200 kcal/kg and to operate at 80%-85% efficiency, but the coal that they receive is lower quality, with a heating value of 4200kcal/kg, so they are presently operating only at about 55% efficiency and are unable to meet emissions standards. The State heating plant gets its coal from the Khusurt mine operated by the company that owns and operates the private heating plant in Khovd, and this is apparently the only feasible coal source for the plant.

204. A large portion of the heating network served by the State heating plant relatively new and is in good condition, but there are some older sections that date as far back as the 1960s. The Khovd heating plants operate only in the cold months (1 October to 1 May), so residents and organizations must generate their own hot water when the plants are not running. This is commonly done with electric water heaters.

205. Heating in the ger areas and places outside the service are of the heating network is typical of all urban ger areas in Mongolia where heat and cooking is by residential stoves that burn coal, wood or dung. Larger structures heat by unregulated, low-pressure heat-only combustion boilers that primarily use coal.

206. Additional heating capacity is needed for Jargalant. The situation with the Jargalant heating plant is that it was designed for coal with higher energy content than the coal that is now available and it cannot be operated efficiently with the lower grade coal. The problem with sourcing the correct coal is more political than technical, and the ASDIP has identified a TA budget to gather facts and make recommendations for the best solution. This can be done by either retrofitting the boilers to burn lower grade coal or changing the coal source, and ASDIP will conduct a TA study to define alternatives and recommend solutions.

207. Conversely, the smaller scale heating plants of the project will be designed so that the plants can be operated efficiently and meet emissions standards with lower grade coal. The design stage of the project will take this into account and plants will be designed to accommodate the range of coal quality from available sources. Moreover, during the design stage, encouraging other energy options that avoid coal even will be examined in the country so heavily dependent on it.

208. Tranche 1 will fund some small upgrades to the existing State plant's circulation pumping system that will improve delivery capacity to accommodate network expansions, including the Ger Area Rehabilitation project. A new Heat Distribution Substation (CTP) will be required to provide heat to the Agropark, and new dual DN200 heating lines, installed in a concrete channel with the DN150 water supply pipe, will connect the new substation to the city heat distribution network.

209. The rehabilitation areas in Bag Takhilt and Alagtolgoi will require the construction of a new heat distribution substation (CTP), which will make domestic hot water for distribution with heating and cold water to the buildings in its service area. The locations for the substation have been previously identified in the Khovd Master Plan, which will simplify the connection piping design and operation. Pipelines to convey heat and cold water will be constructed to serve then new CTPs. These pipes will be installed together in concrete channels buried adjacent to existing streets, in accordance with Mongolian construction standards.

Solid Waste Management: 210. The existing situation with solid waste management in Jargalant similar to Ulgii and Ulaangom and the need to meet current environmental standards and practices is too large a problem to be quickly solved. Jargalant has a head start over some of the other aimags, but their existing dumpsite is significantly larger.

211. The Jargalant waste dumpsite is located in close proximity to developed areas to the southeast of the city and due to largely unregulated operations has expanded to an area of over 280ha. The city has constructed 600m of fencing that partially encloses the dumpsite and an access control gate and guardhouse but dumping outside the fenced area was observed during the ASDIP team site visit. A large portion of the impacted area is windblown trash and there is no provision or equipment available to cover or consolidate the waste.

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212. The Jargalant government, who is responsible for solid waste collection and disposal, is planning a formal solid waste collection and transport system that fully covers all areas, but is lacking the resources for implementation. There is some organized waste collection, but transport and disposal of waste from commercial and industrial entities is handled by the respective organizations.

213. Ash from the heating plants is disposed separately from the city dumpsite, but ash from small stoves and boilers makes up a large portion if the waste at the city site. The dumpsite is situated on a high ground to the southeast of the developed area of the city. There is no evidence that there is near-surface groundwater at the dumpsite, but there is a high potential for rainfall runoff to convey leached materials from the dumpsite. The Aimag has constructed a lined drainage channel along the lower boundary of the site that conveys water to open land near the dump site.

214. The government would like to implement a recycling program in Jargalant, but they do not have the financial resources for detailed planning or implementation. Solid waste user fees are set and collected by the Aimag government and tariffs revenues are not directly applied to recover operating costs or fund capital improvements. A recycling program in Jargalant will be studied under Tranche 1, and, if adequate and feasible, will be included under Tranche 2, using Tranche 2 financing.

215. Tranche 1 will be the first phase of a program to provide Jargalant with an environmentally sound and sustainable solid waste management system and clean up/ remediate the results of past uncontrolled solid waste disposal practice. The activities will be a mix of technical assistance as follows: ▪ Characterization of existing conditions – Includes type of waste, physical situation (soils, groundwater, topography) and the environmental hazards that need to be remediated and mitigated, based on the existing waste and projected future use of the sites. This will result in recommendations for design of cleanup programs and site improvements. Includes drilling, groundwater sampling and testing. ▪ Initiate formulation of a solid waste manage plan at the local level that includes collection, disposal and cost recovery mechanism(s) and capacity development needs, as well as implementation of a phased cleanup and restoration plan. ▪ Construct a fence with access control and security around areas designated for permanent development and consolidation of existing waste (15 ha). ▪ Initiate priority activities to correct current bad practices that are public health risks, such as groundwater contamination. ▪ Research and formulate opportunities for recycling with associated costs and benefits, coordinated with Aimag and regional programs. ▪ Initiate cleanup of existing dump sites. ▪ Pilot containerized solid waste collection in urban core and ger rehabilitation areas with five trucks and 50 bins or skips. 2. Agrobusiness investments at Jargalant

216. Tranche 1 of ASDIP will focus on developing agrobusiness facilities in Jargalant. A soum centre will not be included. An irrigation scheme and fodder farm will also not be included with the

125 investments in Khovd Aimag. The following two types of agrobusiness investments will be developed in Jargalant. An irrigated fodder farm will not be developed for agropark:

a) Community-based projects for Pasture User Groups b) Agroparks

a. Community-based projects for Pasture User Groups (PUG)

217. Community micro-projects for herders will be financed by the project to increase animal productivity. Herders must be a member of local PUG to access support. Members of PUGs will contribute through the provision of in-kind labor, cash and/or materials. The locations of the projects have not been determined.

218. The indicative types of community micro-projects to be financed are listed below. ▪ Hay protected areas: a 15ha pastureland perimeter near a river will be selected and enclosed with stonewalls. Water canal diversions likely established for irrigation by gravity. ▪ Small equipment and trucks: mini-tractors equipped with agricultural machinery and tools to support pasture management will be provided. ▪ Storage for hay and fodder (shelters). ▪ Animal combing and shaving facility and equipment with storages and disinfecting bath. ▪ Winter wind shelters for animals. ▪ Water wells: Construction of 6 new wells and rehabilitation or fixing of 4 old wells will be performed. ▪ Animal bathing facilities. ▪ Animal drinking water facilities. ▪ Small bridge/river/stream crossing and earth road repair.

b. Agropark

219. The Agropark in Jargalant will consist of a Disease Free Establishment, meat processing facility, laboratory & veterinary services, a Research Development Centre, business incubator centre, and agricultural processing industries. The Agropark will be located just east of Jargalant (Figure 27). The Agropark will be serviced as needed by the urban infrastructure investments of planned for Jargalant.

i. Disease Free Establishment

220. The Disease Free Establishment will include the following sub-components: ▪ Inspection laboratory and animal inspection zone. ▪ Animal feedlot – disease free zone with quarantine activity for disease controlling.

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Figure 27. Location of Agropark east of Jargalant.

221. The Disease Free Establishment will be located to enable easy reach by livestock herds. It will have a capacity of 1,000 animals, to be kept isolated in case of animal disease outbreaks or exportation purpose for a period between two to three weeks. On average small animal and big animals require 10 m2 / animal. Required total area for the disease free zone and feedlot is 1ha, 0.5ha for animal inspection unit with offices and laboratories, 0.5ha for animal shelter, 0.5ha for hay and fodder shelter, 0.5ha for abattoir zone, and 0.5ha for agricultural machinery parking lot.

222. The complex will include enough storage for hay & fodder in order to feed this number of livestock during the 2 to 3 week periods without grazing. Table 24 estimates the corresponding need for hay/fodder storage as 2,592 tons, given there is only one harvest for hay at the end of the summer.

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Table 24. Hay and Fodder Storage Requirements

223. The Disease Free Establishment will include the following features: (i) 1.5 m stone-walls to delimit the isolated 1ha feedlot and protection zone. (ii) Shelters for the animals from wind and snow. The shelter will have a total covered area of 5,000 m2. (iii) Elevated hay storage (to prevent overconsumption) will have a total capacity of 500 tons. (iv) Livestock food containers to feed the animals. (v) Drinking water facilities and water supply connection. (vi) 6km road connection to the paved road. (vii) Agriculture machinery and equipment park area (viii) Veterinary inspection center with offices and laboratories

224. The Disease Free Establishment of Jargalant will include an inspection laboratory and animal inspection zone that will form part of the main laboratory for veterinary services and disease and quality control. It is necessary to provide proper designed laboratory facilities in a dedicated building, equipment, and laboratory consumables for proper operation of Veterinary Agencies at Jargalant relative to the animal disease prevention, traceability, clinical services, and activities in the animal health zone.

225. Since 2018, the Veterinary Agency has been separated from the Ministry of Food, Agriculture and Light Industry (MOFALI) and therefore new offices are needed. The offices and the laboratory will be combined in the same building (see agropark below). The main features of the laboratory including equipment are detailed in Table 25.

Table 25. Example required equipment and consumables for inspection laboratory

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Items Purpose Amount needed Ulgii lab. Deluun lab. For extraction of sedimentation from 5 Centrifuges 2 pc 2 pc various biological samples 6 pH-Meter Determining acidity condition of samples 2 pc 2 pc 7 Microscopes Analytical purpose 2 pc 2 pc Car equipped for 8 veterinary For mobile laboratory activity 1 pc 1 pc services For keeping animals during the veterinary 9 Mobile fence 7 pc 7 pc activity 1 Disinfecting bath For animal wash and disinfecting purpose 7 pc 7 pc 0 1 Laminar hood For aseptic isolation activity 1 pc - 1 Consumables needed 1 Sample label For blood and other biological samples 40,000 pc 40,000 pc Container for 2 For carrying samples 40 pc 40 pc labels 3 Biological tubes For blood sample 40,000 pc 40,000 pc 4 Aseptic needle For syringe for blood withdraw 40,000 pc 40,000 pc 5 Needle stand For blood sampling 400 pc 400 pc 6 Gloves For aseptic purpose 500 box 500 box Laboratory safety 7 For aseptic and disinfecting activity 1000 pc 1000 pc clothes Lab kits for fast 8 For field test 40 pc 40 pc testing of rabies Lab kits for fast 9 testing of cow- For field test 40 pc 40 pc pox Training and capacity building activity 1 Laptops For data processing in the field 1 pc 1 pc 2 Desktops For data processing in the office 1 pc 1 pc 3 OH projector For data presentation 1 pc 1 pc 4 Microphone For data presentation 1 pc 1 pc 5 Color printer For data sharing 1 pc 1 pc 6 White screen For data sharing 1 pc 1 pc

(i) Water needs

226. The water requirements of the Disease Free Establishment in Ulaangom are estimated as drinking water: 2.6 m3/day, and process water: 50 m3/day

ii. Meat processing facility

227. There are three meat processing facilities in Jargalant. Existing meat processing facilities have similar capacities, about 600 animals per day, but none of them operate at full capacity. The project will provide financing support to the private sector to build a meat processing facility close to the Disease Free Establishment on the Agropark site. The capacity of the meat processing facility will be 150 big animals and 600 small animals per day, functioning 8 months a year.

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228. The existing meat processing in Jargalant do not correspond to the standard promoted by the project (related to wastewater treatment, hygienic and sanitary condition, storage, etc). Also, they are not designed to fully capture the animal product and are not designed for the demand outside of Jarglant (export or UB) and therefore cannot be fully utilized.

229. The ASDIP provides a financial and technical support to the private sector to invest in more performant facilities (they could be new or existing facilities can benefit of the support to upgrade). This will depend on the private sector demand and local potential. Finally, the de- stocking process will increase the need for higher capacity in meat processing.

(i) Water Needs

230. The water requirements of the planned meat processing facility in Jargalant are estimated as: drinking water: 105 m3/day and a total of 210 m3/day with meat processing.

(ii) Design standards for meat processing

231. The design of the meat processing and storage facilities for Ulgii and Deluun will follow FAO (1988) and WHO (1984) standards for operations and environmental protection along with the other international standards for meat processing facilities summarized above for Ulaangom and Umnugovi.

iii. Processing industries, storage, & business incubation

232. The Agropark at Jargalant will support development of small agro-process industries and business promotion. It is envisioned that the Agropark will host a non-exhaustive list of business and agro-process opportunities that will be dictated by and support local Agrobusiness Development Planning. Example processing industries are dairy products, greenhouses, vegetable processing, leather finishing, and wool processing.

(i) Water requirements

233. The estimated water requirements of planned processing industries of Agropark are summarized in Table 26.

Table 26. Estimated process industry water requirements of Agropark

iv. Environmental Management System

234. The government will need to develop an Environmental Management System (EMS) for the Agropark in Jargalant that will be managed by the Aimag governing authorities. The EMS will consist of a set of procedures and guidelines to ensure the protection of local environment and

130 natural resources. The PISC will assist with the development of the EMS during the detailed design stage. The EMS requirement will form part of the project loan covenants.

IV. DESCRIPTION OF AFFECTED ENVIRONMENTS

A. Physical Environment

235. The Mongolian geo-physical environment is very varied and can be divided into six zones – High mountain, mountain taiga, forest steppe, steppe, semidesert steppe and desert. The northern part of the country is covered by forest and mountain ranges and the southern part by desert, desert steppe, and steppe areas with low mountains. The western part is dominated by the high snow-capped mountain belt of the Mongol Altai and Khangai mountainous regions, with their perpetual snow and glaciers and the eastern part by vast plains and wild heaths. About 81% of the country is higher than 1,000m above sea level and the average elevation is 1,580 m. The highest mountain is Tavan Bogd in Bayan-Ulgii Aimag at 4,374 m and the lowest point is Khukh Nuur in the east at 560m.

1. Topography and Geography

236. The Aimag and Soum Development Investment Project area covers three western Aimag centers (Ulgii, Jargalant and Ulaangom soums) and Deluun, Mankhan and Umnugovi intersoums of Bayan-Ulgii, Khovd and Uvs Aimags.

237. Western Mongolia dominated by the Altai Mountain range stretching along the southern border with China which slopes down to the Great Lakes Region of Mongolia. Eastern part of Mongolia consists dominantly of flat steppe area.

a. Uvs Aimag

238. Ulaangom soum is located in the west of the Uvs Lake, occupying 34 sq. km of land at the elevation of 939m above sea level and is 1,336km away from Ulaanbaatar city. Many snow- capped mountains such as Tsagaan Deglii, Must, Tsagaan Shuvuut, also over 40 big and small, salty and fresh water lakes such as Uvs, Khyargas, Achit and Uureg that are abundant in fish and vast forests and steppes are in this aimag. The Uvs aimag is situated in westren Mongolia occupying the Khankhukhii, Kharkiraa, Turgenii mountain ranges and the Gobi in the Uvs Lake depression. The highest mountain is 4,116m high Kharkiraa Mountain. Kharkiraa, Turgenii mountains are relatively young frowning mountains. The lowest point of Uvs Lake area is 758.9m above sea level while the highest point is Kharkiraa-Turgenii Mountain's peak at 4,126m above sea level.

b. Bayan-Ulgii Aimag

239. Baya-Ulgii Aimag with Ulgii centre is the highest Aimag in Mongolia with 95% above 1600 m (1 mile) above sea level, with the highest point of Khuiten Uul at 4373 m. The Altai mountain range crosses Mongolia, China, Russia, and Kazakhstan forming a natural boundary between European and East Asian cultures. The Altai Mountains are the highest peaks in Mongolia and many glaciers located in the shadows of these mountains. The melting snow of the Altai mountains supplies several lakes and rivers, including the longest in Mongolia, the Hovd River. There are 3 large fresh water lakes inside Tavan Bogd; Khurgan Nuur, Khoten Nuur, and Dayan Nuur that form the origin of the Khovd River. Another large lake is treeless Tolbo Lake in the

131 southeast, which stretches several miles along the road to Hovd. The largest lake is Achit Nuur on the border with Uvs. This lake is just north of the heavily forested Davit Aral Nature Reserve and is home to very large number of birds. Away from the river valleys, Bayan-Ulgii is generally dry and rocky with some grassy steppe.

c. Khovd Aimag

240. Khovd Aimag with Jargalant centre has an immense area that embraces Mongolian Altai Mountains, great lakes depression and northern Altai gobi. In the western side it borders with the People's Republic of China, in northwest with Bayan-Ulgii, in east and north east with Zavkhan, and in the southern side borders with Govi-Altai Aimag. The total length of the border is 1,522km. From north to south it is 453km, from east to west is 249km and is located at approximately 2,230m above sea level. Khovd Aimag has many snow peak mountain ranges like Tsambagarav, Darvi, Baatar, Khukh Serkh Range, Munkh Khairkhan, Jargalant, Sutai, Myangan Ugalzat, and Altan Khukhii and 20% of the Aimag territory consists of Gobi desert areas.

2. Geology

241. The project area in the Western three Aimags is situated in the Mongol Altai 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.

242. The Altai Mountains were formed mostly by Paleozoic rocks of intrusive complex, comprised of granite-granodiorite, granite. In Khovd Aimag, gabbro, granite, diorite, granodiorite rock deposits were found, along with a metamorphic massif underlying the Bodonch Canyon Mountains. Mountainous areas of Khovd Aimag form sedimentary rocks from the early Cambrian period, in the southern parts of Khovd Aimag sedimentary rocks from quaternary period are widely spread. Khovd Aimag is reach in natural and contraction mineral materials such as coal (Khundlun), mica (Bodonch), crystal (Ooshigiin Us, Tsagaantolgoi).

243. According to the geo-morphological map of Mongolia, the terrain primarily includes excessive rolling ranges, medium rolling ranges and mountains, slight rolling ranges of sloped structure, mountainous ravines, semi-level surfaces of mountain skirts, glacial valleys, mountains with sharp ridged peaks, alluvial lake valleys, delluvial - prolluvial and mountain river valleys.26

3. Soil

244. The following soil types have been identified in Western Region of Mongolia where the Project is located (Figure 28):

• Mountain tundra ochro, peaty-gleye, and cryoturabated (destructed) soil is mainly spread out in the area of Altai Mountain above 3,000-3,200 m. Sand, gravel and bare rocks mostly cover the soil surface. In areas with sparse vegetation, the soil is dense and is formed by sediment of moraine sand, gravel and cobble stone. The soil is very stony and the concentration of clastic rock increases up to 80% at deeper depths.

26 Government of Mongolia. 2007. EIA. Ulaanbaatar. 132

• Mountain meadow and meadow steppe soils are distributed in the humid area of the northern portion of the Mongolian–Altai Mountain and in depths in the Altai Mountains.

• Soil forming sediment is eluvial-diluvial gravel sediment and moraine rocky sediment. Thus, the soil content is clastic rocky and plant roots are able to get into the soil between rocks. Because it has moraine sediment, there is heavy loamy soil with huge cobblestones; below 70 cm depth these huge cobblestones are mostly found.

• Mountain steppe soils extend in the Altai Mountains area with an altitude between 2,400 m to 2,500 m and 2,900 m to 3,000 m. The soil surface is gravel floored with scattered vegetation cover. From soil surface to a depth of 40-50 cm, the soil is sandy, gravelly, pebbly, and stony.

• Mountain desert steppe and desert soils are spread in the southern border of the Altai Mountains with altitudes between 1,500 m to 1,600 m and 2,400 m to 2,500 m. The soils are semi-desert brown soil and desert gray brown soil.

Figure 28. Soil types in Western Aimags

4. Climate

a. Uvs Aimag

245. Annual average precipitation in Uvs Aimag is 135.3mm. Atmospheric pressure is 923.9 hPa in January and 901.9 hPa in July. Northern hemisphere winter high-pressure zone forms in low lands of the Uvs and Khyargas lakes. January average temperature is -17°C to -25.5°C and average July temperature is 16.5°C. Average wind speed is 4.5m/sec. May is the windiest

133 month of the year. The wind speed can reach 2.3m/sec in May. The maximum temperature can reach up to +35°C and minimum temperature can drop down to -40°C. Spring and fall seasons last relatively long, 120 to 160 days.

Table 27. Climate data for Ulaangom, Uvs Aimag

Source: long term data of Uvs Aimag meteorological department and climate data of en.climate-data.org

246. Annual average air temperature in the center of Uvs Aimag Ulaangom Soum is -3.8°C, January average is -33°C and July average is +19.2°C. Ulaangom is one of the places in Mongolia that experiences the coldest winter, the minimum ever recorded temperature was - 50°C, the maximum ever recorded temperature was +36.4°C.

Table 28. Climate data for Umnugovi Soum, Uvs Aimag

247. Climate in Umnugovi Soum center, which is located in about 110 km south from Ulaangom is rather milder compared to its Aimag center, because of its geographic location far from Uvs Lake. The Lake in cold area is the driven force for a severe cold climate during the winter and spring. Average annual air temperature in Umnugovi is – 0.56 degrees of Celsius, which is different by 25 0C of average annual air temperature of Ulaangom.

b. Bayan-Ulgii

248. The mountainous areas of the Aimag receive 200mm to 400mm (7.8 to 15.7 in) of rain annually, while lower elevations of the Khovd River valley receives 100mm to 200mm (3.9 to 7.8 in) of rain. Average annual temperatures range from -4o C (+25o F) in the Tavan Bogd Mountains

134 to 0o C (+320 F) in Ulgii Soum, with temperatures in Ulgii varying from +14.5oC (+57o F) in July to -17.8o C (+2o F) in January.

Table 29. Climate data for Ulgii, Bayan-Ulgii Aimag

249. Even though Ulgii is at a higher elevation than Ulaanbaatar, the dry air and wide valley makes the soum 5o to 6o C warmer during winter. Over half of the rain is in June and July, while some mountainous areas can get over a meter of snow during winter. Rivers and lakes are usually frozen from October to May.

Table 30. Climate data for Deluun soum, Bayan-Ulgii Aimag

250. As Deluun soum is located at comparatively high altitude of 2140-2300 m above sea level, climate is rather colder throughout the year with average of -1.83 degrees of Celsius. December, January and February are coldest months and with average monthly air temperatures ranging from -18.99 to - 21.74 °C. Starting from April average air temperature gets above zero with warmer climate through June, July and August with returning to below zero by the end of September.

c. Khovd Aimag

251. Khovd Aimag experiences a continental climate. Summer temperature reaches +40°C, but winter temperature drops down to -30°C. Relatively dry. Average precipitation is 120-140mm, average temperature of January is -17°C - (-25.5)°C, average temperature of July is +16.5°C, the speed of wind reaches 4.5m/sec, during the coldest season the temperature drops down to -40°C, the warmest season reaches +35°C, the highest recorded speed of the wind was 1.0m/sec. Spring and fall seasons are comparatively long with 120 to 160 days respectively.

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Table 31. Climate data for Jargalant, Khovd Aimag

5. Air quality

252. The National Environmental Action Plan (NEAP) 2000 refers to air pollution as among the pressing environmental and natural resource issues confronting Mongolia. Major sources of air pollution in the largest centres such as Ulaanbaatar include (i) vehicle emissions; (ii) emissions from boilers and power plants; (iii) emissions from burning coal, wood and/or garbage/plastics in household heating stoves; (iv) dry land, eroded soil and unpaved roads; (v) forest fires; and (vi) solid waste disposal sites. Air quality in Ulaangom is shown in Tables 32 and 33.

253. The major source of air pollution affecting the residents in the project areas is from the individual stoves in ger areas (heating about 70% of the Aimag centers population). For that the ger street and housing redevelopment program of ASDIP will greatly improve in-house and outside air quality. In addition, ASDIP will also involve a number of programs that will reduce building energy consumption and install renewable energy systems that will significantly reduce GHG emissions from the project area, while the small scale boiler will be design to comply to stringent emission standards.

Table 32. Air quality in Ulaangom, Uvs Aimag centre

№ Air year/ mean annual concentration quality elements /AL*

unit unit 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1 SO2/20 ------3 3 4 3 3 4 4 4 6 7 6

3 3

2 NO2/40 ------26 27 25 27 31 33 35 35 32 26 24 мkg/м 3 TSP/100 ------78 64 64 68 61

Remarks: *-Acceptable max level of pollutants (mean annual) by National Standard on Air Quality MNS4585:2016

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Table 33. Air quality in Ulaangom, Uvs Aimag

(Original data collected for ASDIP, 24 Sep 2019) Sampling Location of air SO2 NO2 PM10*** No. time sampling µg/m3 µg/m3 µg/m3

1 Aimag Met office 08:00 AM 3 36 - 2 Aimag Met office 08:00 PM 8 47 - National air quality standard 450* 200* 100** MNS 4585:2016 Remarks: *-Acceptable max level of SO2 and NO2 (mean 20 min) and ** -Acceptable max level of PM10 for 24 hours by National Standard on Air Quality MNS4585:2016 *** - no equipment is available to measure dust in Aimag Met department

Table 34. Air Quality in Ulgii, Bayan-Ulgii Aimag centre 2002-2018

№ Air quality year/ mean annual concentration elements/ AL*

Unit Unit 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1 SO2/20 2 2 1 0.0 0.0 1 3 5 3 6 12 13 12 7 5 8 9

2 NO2/40 3 8 6 3 2 2 3 8 19 18 24 29 30 29 23 15 13 19 мkg/м 3 TSP/100 ------93 172 139 157 184 111 260 340 481 744

Remarks: *-Acceptable max level of pollutants (mean annual) by National Standard on Air Quality MNS4585:2016

Table 35. Air quality in Ulgii soum of Bayan Ulgii Aimag

(Original data collected for ASDIP on the day of 20 Sep 2019) Sampling Location of air SO2 NO2 PM10 No. time sampling µg/m3 µg/m3 µg/m3***

1 Aimag MET office 08:00 AM 2 15 - 2 Aimag MET office 08:00 PM 0 21 - National Air quality standard 450* 200* 100** MNS 4585:2016 Remarks: *-Acceptable max level of SO2 and NO2 (mean 20 min) and ** -Acceptable max level of PM10 for 24 hours by National Standard on Air Quality MNS4585:2016 *** - no equipment is available to measure dust in Aimag MET department

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Table 36. Air quality in Jargalant, Khovd Aimag centre (last 17 years)

№ Air year/ mean annual concentration quality elements /AL*

unit unit 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1 SO2/20 - - 2 4 6 5 4 2 4 4 9 8 9 6 9 9 9

2 NO2/40 3 - - 29 34 53 51 32 13 16 16 28 29 31 28 31 32 29 мkg/м 3 TSP/100 ------120 133 325 388 280 246 120 173 195 193

Remarks: *-Acceptable max level of pollutants (mean annual) by National Standard on Air Quality MNS4585:2016

Table 37. Air quality in Jargalant Soum, Khovd Aimag

(Original data collected for ASDIP on the day of 19 Sep 2019) Sampling Location of air SO2 NO2 PM10 No. time sampling µg/m3 µg/m3 µg/m3

1 Aimag MET office 08:00 AM 11 4 38 2 Aimag MET office 08:00 PM 4 34 31 National Air quality standard 450* 200* 100** MNS 4585:2016 Source:Khovd Meteorological department Remarks: *-Acceptable max level of SO2 and NO2 (mean 20 min) and ** -Acceptable max level of PM10 for 24 hours by National Standard on Air Quality MNS4585:2016

254. Neither air quality data, or air quality stations exists at the soum level. Therefore, there is no air quality information for project soums of Deluun of Bayan-Ulgii and Umnugovi of Uvs Aimag. National and international (WHO) air quality standards are summarized in Table 38. For completeness national and WHO industrial air emission standards are listed in Table 39.

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Table 38. National And International Ambient Air Quality Standards

Table 39. Boiler Emission National Standard and WHO Guidelines

a) Boiler emission standards Parameter Concentration (in mg/Nm3) MNS 6298:2011 WHO EHS Guidelines* 400 urban 3 3 SO2 mg/m mg/Nm 2000 600 remote areas 450-1,100 3 3 NOx mg/m based on volatile mg/Nm 650 coal

PM mg/m3 50-200 mg/Nm3 50-150

Dry Gas Excess O2 - - % 6 content * Small Combustible Facilities Emission Guidelines (3MWth-50MWth) – for Boilers using solid fuel NWth-Megawatt thermal Nm3 is at one atmospheric pressure, 0°C.

b) Applicable emission standards for heating plants (mg/Nm3) Standard Name NOx SO2 CO PM Notes Mongolian MNS 5919:2008 1150 1500 1030 12000 Old standard Mongolian MNS 6298:2011 Population >10 450 400 180 50 per km2 Mongolian MNS 5043:2016 400 600 4000 300 1.0 to 4.2 MW International IFC EHS (2007) 650 2000 -- 50-150

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6. Applicable environmental quality standards

255. The ASDIP will apply the most stringent environmental standard which is mostly shown in the environmental quality tables describing the baseline environmental condition. This means that either a Mongolian, or international standard such as an IFC EHS standard or a WHO standard will be applied to set emission, discharge, and allowable concentration levels.

7. Noise

256. Noise levels were measured in the three Aimag centers during the environmental survey period of 16-25 September 2019 for every three hours in 24 hours (total 8 measurements in each of Aimag centers). The measured noise levels in the three Aimag centres are summarized in Tables 40-42 and Figures 29-31.

Table 40. Ambient noise in Jargalant of Khovd Aimag

Reading, MNS No Date Time dB 4585:2007 1 9/16/2019 21:30 49.2 60 2 9/17/2019 00:30 47.0 45 3 9/17/2019 03:30 41.3 45 4 9/17/2019 6:30 34.0 45 5 9/17/2019 9:30 50.2 60 6 9/17/2019 12:30 45.4 60 7 9/17/2019 14:30 47.8 60 8 9/17/2019 18:30 56.8 60 9 9/17/2019 21:30 50.7 60

Figure 29. Noise levels in Jargalant

Noise level in Jargalant, Khovd Aimag, dBA

70 60 50 40 30 20 10 0 21:30 0:30 3:30 6:30 9:30 12:30 14:30 18:30 21:30 9/16/20199/17/20199/17/20199/17/20199/17/20199/17/20199/17/20199/17/20199/17/2019

Reading, dB MNS 4585:2007

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Table 41. Ambient noise in Ulaangom of Uvs Aimag

Reading, MNS No Date Time dB 4585:2007 1 9/22/2019 15:30 56.4 60 2 9/22/2019 18:30 61.0 60 3 9/22/2019 21:30 58.4 60 4 9/22/2019 00:30 40.0 45 5 9/22/2019 03:30 35.3 45 6 9/23/2019 06:30 45.2 45 7 9/23/2019 09:30 50.3 60 8 9/23/2019 12:30 64.4 60 9 9/23/2019 15:30 61.1 60

Figure 30. Noise levels in Ulaangom

Noise Level in Ulaangom, Uvs Aimag, dBA

70 60 50 40 30 20 10 0 15:30 18:30 21:30 0:30 3:30 6:30 9:30 12:30 15:30 9/22/2019 9/22/2019 9/22/2019 9/22/2019 9/22/2019 9/23/2019 9/23/2019 9/23/2019 9/23/2019

Reading, dB MNS 4585:2007

Table 42. Ambient noise in Ulgii of Bayan-Ulgii Aimag

Reading, MNS No Date Time dB 4585:2007 1 9/20/2019 09:00 58.8 60 2 9/20/2019 12:00 64.7 60 3 9/20/2019 15:00 63.0 60 4 9/20/2019 18:00 58.8 60 5 9/20/2019 21:00 71.5 60 6 9/21/2019 00:00 41.1 45

141

Reading, MNS No Date Time dB 4585:2007 7 9/21/2019 3:00 41.2 45 8 9/21/2019 6:00 40.3 45 9 9/21/2019 9:00 51.5 60

Figure 31. Noise levels in Ulgii

Noise Level in Ulgii, Bayan-Ulgii Aimag, dBA (20 -21 September 2019) 80 70 60 50 40 30 20 10 0 9:00 12:00 15:00 18:00 21:00 0:00 3:00 6:00 9:00

Reading, dB MNS 4585:2007

257. Noise levels compared to the Mongolian standard MNS4585:2007 indicate that the highest noise level within three Aimag centers was 71.5 dBA at 21.00 in Ulgii of Bayan-Ulgii Aimag, which is 11.5 dBA above the precaution level. Noise level in three instances in Ulgii exceeded the acceptable level (higher 3-11.5 dBA) out of 8 noise measurements. Approximately 50% or 4 noise measurements in Ulaangom of Uvs Aimag were above (0.2-4.4dBA higher) the acceptable noise level. However, the 8 noise measurements in Jargalant of Khovd Aimag were within acceptable levels.

258. In the project areas noise is caused by a combination of wind and from vehicles and machinery. Noise level is determined by the duration of the noise. Thus, during the construction phase of the project a noise mitigation plan should focus on noise duration.

259. During the site visits to Deluun soum of Bayan-Ulgii Aimag and Umnugovi soum of Uvs Aimag the environmental survey team observed that these human settlements were very quiet and with much less vehicle traffic and industrial activities than the Aimag centers, which were major sources of noise disturbances in those urban areas. Therefore, noise measurements were not conducted in the soum centres.

8. Water Resources

260. Mongolia is well endowed with surface and ground water resources. There are some 3,000 rivers in total with a combined length of 67,000 km. There are also over 3,000 large and small lakes, 6,900 springs, 190 glaciers and 250 mineral water springs. The water resources of western

142

Mongolia are relatively rich.

261. The Great Lakes Depression is a large semi-arid depression in the West and Northwest of Mongolia bounded by the Altai, Khangai, and Tagna-Uul Mountains. It has an area over 100,000 km2 and the elevation is from 750 to 2,000 m. It contains six major Mongolian lakes Uvs Nuur, Khar-Us Nuur, Khyargas Nuur, Khar Nuur, Airag Nuur, and Durgun Nuur, as well as a number of smaller ones. The major rivers are Khovd, Zavkhan, Tes, Buyant, Kharkiraa, and Turgen. The Great Lakes Depression is also a major freshwater basin of Mongolia and contains some of the important wetlands of Central Asia comprising a system of interconnected shallow lakes with wide reed belts within a generally desert steppe.

262. Water resources are one of Mongolia’s most valuable assets and they require protection and management. According to estimates, the aggregate water resources in Mongolia amount to 599 km³ of which 500 km3 of water is contained in lakes, 62.9 km3 – in glaciers, and 34.6 km3 – in rivers and their underground basins.27

263. Water resources of the western part of Mongolia are represented by surface water (rivers, springs and lakes) and groundwater (Table 39 and Figure 32). The project area is located in the Central Asian Non-Outflow River Basin. The most recent census of water bodies was conducted in 2017 and 2018. Table 43 summarizes water resources census data of Khovd, Uvs and Bayan- Olgii Aimags.

Table 43. Number of rivers, springs, and lakes in Khovd, Uvs and Bayan-Ulgii Aimags

Name of Rivers Springs Mineral water Lakes Aimag Total Dried Total Dried Total Dried Total Dried Bayan-Olgii 421 0 979 0 27 0 1249 0 Khovd 208 8 485 117 25 2 119 0 Uvs 215 0 555 0 36 0 78 29 Source: Aimag Environmental Departments of Bayan-Ulgii, Khovd and Uvs 2019.

264. Khovd Aimag has big rivers such as the Khovd, Buyant, Bulgan, Chonokharaikh, and Tsenkher rivers. Khovd Aimag also supports large lakes such as the Khar-Us, Khar, Durgun lakes, and springs such as Nevtiin, Bulgany, Indertiin. Other crystal clear fresh water lakes are exemplified by the Tsetseg, Khukh Serkh, Buurug, Shavagt, Kholboo, and Khukh lakes along with some other 300 rivers and streams.

265. Uvs Aimag also supports much surface water including the lakes of Uvs, Khyargas, Airag, Achit, Uureg, and Duruu as well as the large rivers of Tes, Khovd, Kharkiraa, Turgen, Khnagiltsag, Turuun and Zavkhan. There are 38 rivers and streams that drain to Uvs Lake alone.

266. Bayan-Ulgii Aimag supports about 80 big and small lakes including the freshwater lakes Dayan, Khoton, Achit and Khorgo. Tolbo and Achit. Some of these lakes also support commercial fish resources. Over 100 rivers exist in the Aimag including the Khovd, Tsagaan, Sogoog, Yolt, Sagsai, Bulgan, Gantsmod and Buhmurun rivers. There are more than 200 springs in this Aimag.

27 Government of Mongolia. 2007. EIA. Ulaanbaatar. 143

a. Project area rivers

267. The rivers in the project area originate from the Altai Mountains. Thus, the upstream and midstream areas are narrow valleys and canyons; flood plains are not formed in this area but are clearly formed downstream. Alluvial meadow gleyey soil is formed under the humid conditions of the main floodplain and one of the water sources is permafrost thawing. Groundwater is primarily located at soil depths of 90–160 cm, with soil having 100% vegetation cover. As a result the mull- humic dominates in the soil. The description of the major rivers in the project area is provided below.

Figure 32. Surface waters of western Aimag project areas

i. Khovd River System

268. The length of the Khovd river which flows through Ulgii of Bayan-Ulgii Aimag is 516 km and its general width is 100–120 m. The river originates at south-east glacier of the Tavan Bogd, the highest peak of Mongol-Altai mountain, and the dominant source of river flow is melted ice and snow. Within the Khovd watershed area of 58,000 km2, the tributary rivers are the Tsagaan, Sogoot, Sagsai, and further downstream the Buyant River. The main lakes, which discharge their

144 excess water into Khovd River are the Tolbo, Dayan, and Achit. The waters of the Khovd River finally flow through lakes Khar-Us and Dalai and the connecting Chonokharaikh River into the Khar Lake. The annual mean discharge of the river is 60.1 m3/s in its upper reach (at Ulgii), 63m3/s in the middle reach (at Bayannuur), and 90m3/s at its inflow into the Khar-Us Lake (at Miyangad). The absolute maximum discharge was 284 m3/s on 5 May 2002 and absolute minimum discharge -14.2 m3/s on 25 May 1983 (at Ulgii). The water level reached 6 m in 1993 at Bayannuur post.

ii. Buyant River System

269. The length of the Buyant river which flows through Jargalant of Khovd Aimag is 171 km. Originating in the Mongol-Altai Mountains and Huh Serkhiyn Mountain, this body of water runs through the northern part of the Khovd town. It is a tributary of the Khovd River, which flows into the Khar Us Lake. If the discharge of the river is less than 6 m3/s, the river’s waters will not reach Khovd River. The annual mean discharge of the river is 5.9m3/s in its downstream (at Khovd town).

iii. Kharkiraa River System.

270. The Kharkiraa river from which the Gashun river tributary flows through Ulaangom of Uvs Aimag rests in the Uvs Lake - Central Asian Internal Drainage Basin and takes its origin from snow and glaciers at an altitude of 3,078 m above the sea level. its length is 126.5 km, the catchment area is 3,332.7 km2. Average width of the upper stream is 10-30m, depth is 0.25-0.5m and flow velocity is 1.0-1.5 m. The Kharkiraa river comes out from the mountain near Tarialan soum, branching to three rivers of Kharikhiraa, Teel and Gashuun. The river channel and flood plain expand further splitting off many tributary channels, where main channel is no longer recognizable. At 756m elevation the Teel river tributary drains to Uvs lake.

b. Seasonal river discharge and flooding.

271. Spring floods in the project rivers generally start 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 percent of total annual flow of Altai Mountain Rivers. The summer is the flood period because rainfall runoff combines with the spring flood of Mongol Altai Mountain Rivers. Regardless, the main source of water is from melting snow and glaciers.

272. Among the five project urban areas, Ulgii, Jargalant and Ulaangom Aimag centres are prone to flash flooding during the summer times after intensive rainfalls due to their specific geographic locations surrounded by high mountains with deep slopes towards the urban centers. As examples, a 30-minute intensive rainfall in July 10 of 2016 caused flash flooding in Ulgii of Bayan-Ulgii that brought severe damage to private and public property. Another flash flood occurred during July 14-16, 2018, which forced the evacuation of 2,512 people of 530 households causing damage to private and public property. On July 4, 2018, an intensive rainfall caused flash flooding in the eastern part of in Jargalant. Run-off water of this rainfall event originating from the eastern high mountain area inundated central solid waste dumpsite and ger areas conveying garbage throughout private properties and into the Buyant River causing pollution to be carried downstream to Khar-Us Lake – a highly valued National Park of Mongolia.

273. Table 44 presents the estimated flow of the rivers in the project area that will be used to source irrigation water for the 200ha and 500ha fodder farms. The flow data in Table 40 represent the anticipated flow at the extraction points for the fodder farms. Also, included is the estimated percentage of the source rivers that will be diverted for the two sizes of fodder farms during the critical growing periods of May - September.

145

Table 44. Estimated available discharge (m3/sec) of source rivers for fodder farms

Source river discharge (average from the monitoring stations for Average Water % of water Irrigation Area each month during the irrigation irrigation need source source used perimeter (ha) period form the years 2013 to 2019) Period l/s m3/s % May 579 1.8 32.2 June 868 Teel river, 3.67 23.7 Tarialan branch of 500 July 694 4.57 15.2 (Ulaangom) Karkhiraa August 694 river (1) 2.82 24.6 September 289 1.19 24.3 May 231 1.09 21.2 June 347 3.75 9.3 Umnugovi 200 July 278 Namir river 4.83 5.8 August 278 3.65 7.6 September 116 1.52 7.6 May 579 7.27 8.0 June 868 Mandakh 20.94 4.1 Buyant river, branch 500 July 694 25.80 2.7 (Bayan Ulgii) of Khovd river August 694 (2) 22.77 3.0 September 289 15.98 1.8 May 231 5.22 4.4 June 347 Buyant and 14.46 2.4 Deluun 200 July 278 Chgertei 12.52 2.2 August 278 rivers 6.80 4.1 September 116 2.62 4.4 Source: Agriculture specialists of project. Notes: 1) Initial data is for Kharkhiraa river, Teel river is one of the four branches of Kharkhiraa river. Assumption was made to divide Kharkhiraa flow by 4 (see Table 11) ). The selected IP in Tarialan soum will be supplied by Teel river. The agency has one monitoring station on Kharkhiraa river, which is then divided in four branches, Teel river being the main branch. Based on a field assessment of the TA experts (agriculture and environment), it is estimated that a safe hypothesis to estimate the water discharge of Teel river is to divide Kharkhiraa river by 4. To be noted that in the whole river plain defined by the four branches of the Kharkhiraa river, a minimal amount of water is used by farmers for irrigation purpose with no proper system and only a few ha irrigated, the water is today not used. To be also noted that it is possible if necessary to derive additional water from Kharkiraa river to Teel river with a headwork; 2) Available data is for Khovd river, Mandakh river is one of the main tributaries of Khovd river. Assumption was made to divide Khovd flow by 7. The selected IP in Buyant soum (Bayan Ulgii IP) will be supplied by Mandakh river. Similarly, there is no station on Mandakh river, which is a tributary of Khovd river. Following field assessment of the TA team, it has been assessed that a safe hypothesis to estimated the river discharge of Mandakh river based on the available data of Khovd river is to be divide the flow by 7. To be noted that there is no irrigated field and no water user supplied by Mandakh river in this area.

274. Note that permanent discharge gauge stations in western Mongolia rivers are few in number. For instance, the station on Kharkiraa river is located upstream of the Tarialan fodder farm near Tarialan soum centre and not in downstream tributary of Teel river where fodder farm will be located. The gauge station in Umnugovi soum is located on Namir River a tributary of Orlogo River, which only approximates flow in adjacent Orlogo River from which the fodder farm will extract water. Thus, at detailed design stage, seasonal river discharge (low flow conditions)

146 needs to be determined at the locations in the source rivers from which water will be diverted for irrigation.

c. Water Quality Monitoring

275. Surface water quality in ASDIP project sites was assessed using available data from Aimag Departments of Meteorology and Environmental Monitoring, and from original sampling that was conducted by the environmental team for ASDIP. Noteworthy, is ambient surface water quality in the project rivers, and at the project sites is very good and meets national water quality standards. (Table 45).

276. Water quality in Uvs Aimag is derived from water sampling conducted in Gashuun River upstream and downstream of Ulaangom urban area. Water quality Khovd river which flows through Ulgii was sampled upstream and downstream of the city. Similarly, water quality was sampled in Buyant river upstream and downstream of Jargalant. Figures 33–37 summarize the water quality at the sites.

Figure 33. BOD5 and pH levels in Gashuun river at Ulaangom

Annual Average BOD Content of Gashuun River Water in Ulaangom City, 2013-2018 ₅ 3 2.5 2 1.5 1 0.5

upstream

downstream

downstream downstream 2013 2014 2015 2016 2017 2018

Annual Average pH Content of Gashuun River Water in Ulaangom City, 2013-2018

8.6 8.4 8.2 8 7.8 7.6

7.4

upstream

downstream

downstream downstream 2013 2014 2015 2016 2017 2018

147

Figure 34. Nutrient and pH levels in Namir River, Umnugovi soum

Annual average pH level of Namir River Water in Umnugovi soum, 2013-2018

8.3 8.2 8.2 8.1 8.04 8 7.9 7.8 7.8 7.8 7.7 7.7 7.7 7.6 7.5 7.4 2013 2014 2015 2016 2017 2018

Annual Average NH4 and NO3 Content of Namir River Water in Umnugovi soum, 2013-2018 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2013 2014 2015 2016 2017 2018

NH4 NO3

148

Figure 35. Nutrient and pH levels in Khovd river at Ulgii

Annual Average pH Content of Khovd River Water in Ulgii City, 2013-2018 7.7 7.6 7.5 7.4 7.3 7.2 7.1 7 6.9

6.8

upstream

Downstream

Downstream Downstream 2013 2014 2015 2016 2017 2018

Average annual NH4 and NO3 content in Khovd River Flow in Ulgii City , 2013-2018

0.60 0.50 0.40 0.30 0.20 0.10

0.00

upstream

Downstream

Downstream Downstream 2013 2014 2015 2016 2017 2018

NH4, mg/l NO3, mg/l

149

Figure 36. Nutrient, pH, and BOD5 levels in Buyant river at Jargalant

Average annual NH4 and NO3 content in Buyant River Flow in Hovd City , 2013-2018

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1

upstream

downstream

downstream downstream 2013 2014 2015 2016 2017 2018 NH4,mg/l NO3 mg/l

Average annual pH and BOD content in Buyant River Flow in Hovd City , 2013-2018 ₅ 9 8 7 6 5 4 3 2 1

upstream

downstream

downstream downstream 2013 2014 2015 2016 2017 2018

pH BOD

₅

150

Figure 37. Nutrient and pH levels in Deluun soum, Bayan-Ulgii Aimag

Average annual pH levels in Buyant river near Deluun, Bayan-Ulgii 7.6 7.5 7.5 7.4 7.4 7.3 7.3 7.2 7.1 7.03 7 6.9 6.9 6.9 6.8 6.7 6.6 2013 2014 2015 2016 2017 2018

Average annual NH4, and NO3 levels in Buyant river near Deluun, Bayan-Ulgii 2.5

1.5

0.5

0 2013 2014 2015 2016 2017 2018

NH4 NO3

Table 45. Mongolia surface water quality standards

Parameter MNS 4586-98 pH 6.5-8.5 DO mg0/l Not less than 6.4* BOD mg0/l 3 NH4-N mgN/l 0.5 NO2-N mgN/l 0.002 PO3-P mgP/l 9 PO4-P mgP/l 0.1 Cl mg/l 300

151

Parameter MNS 4586-98

F mg/l 1.5 SO4 mg/l 100 Mn mg/l 0.1 Ni mg/l 0.01 Cu mg/l 0.01 Mo mg/l 0.25 Cd mg/l 0.005 Co mg/l 0.01 Pb mg/l 0.01 As mg/l 0.01 Cr mg/l 0.05 Cr5+ mg/l 0.01 Zn mg/l 0.01 Hg mg/l 0.1 Oil mg/l 0.05 Phenol mg/l 0.001 Active and washing mg/l 0.1 substances Benzapyren Mkg/l 0.005 *DO>6 mgO/l for summer time and DO>4 mgO/l for winter time

d. Water bacteria study

277. Water bacteriology samples were taken by local professional team of experts that conducted environmental survey during 16-25 Sept 2019 period in upstream and downstream of rivers that flow through each of 5 ASDIP project sites. Tests were analyzed at accredited laboratories of Aimag Specialized Inspection Departments that are located in each of Aimag centers. Analysis were carried out using MNS900:2005, MNS ISO 9308-1-1998, MNS ISO 6461- 2:1998 and MNS ISO 19250:2017 methodologies. Study defines the total number of bacteria abdominal microorganisms, anaerobe microorganisms and pathogens.

i. Ulaangom, Uvs Aimag

278. Kharkiraa river, is the main river in Ulaangom which begins in the western Kharikhiraa mountain range which eventually splits into many tributaries including the Gashun river which flows through Ulaangom. Only the Teel Gol river of 3-4 tributaries reaches the Uvs Lake. Bacteria sampling and analysis were done in upstream Kharkiraa river, and in the Gashuun river in Ulaangom and other tributaries downstream defined by Gun Bukh, Shar Gesen, Tsalgar and Khundlun rivers. Bacteria levels of Kharkiraa river are summarized in Table 46.

152

Table 46. Bacteria levels in Kharkiraa river and tributaries of Ulaangom

(Date of sampling and analysis: 23-30 Sept, 2019)

Indicators Name and location of Sample # sampling sites Number of Gut floras Aerotolerants bacteria Kharkiraa River upstream next to 1 54 E.coli- detected Not detected Children’s campus Kharkiraa River upstream, 2 Tsatsaa Shireg 0 Not detected Not detected

3 Upstream of Gashuun River 104 E.coli- detected Not detected

4 Downstream of Gashuun River 164 E.coli- detected Not detected

5 Gunbukh river 95 E.coli- detected Not detected

6 Shar Gesen river 80 Not detected Not detected

7 Tsalgar river 65 E.coli- detected Not detected

8 Khundlun river 85 E.coli- detected Not detected

9 Ulaan –uul Spring 18 Not detected Not detected

10 Chuluut Spring 3 Not detected Not detected

279. The data in Table 46 indicate that Gashuun, Gunbukh, Tsalgar, Khundlun tributaries are polluted with E.coli, including upstream of Kharkiraa River in location next to children’s summer campus. Bacteria counts exceeded the MNS900-2005 standard requirement of 100, in upstream and downstream of Gashuun river. Water quality was within acceptable level of bacteria in other tributaries of Kharkiraa. The source of bacteria is most likely untreated domestic wastewater, and from grazing livestock.

ii. Umnugovi, Uvs Aimag

280. Bacteria sampling was conducted in two locations in Namir River which flows through Umnugovi soum center and discharges into Khar Lake (Table 47).

153

Table 47. Bacteriology levels in Namir river upstream and downstream of Umnugovi

(Date of sampling and analysis: 23-30 Sept, 2019)

Indicators

Name and location of Number of Sample # Gut floras Aerotolerants sampling sites bacteria Undetectable Undetectable 100 MNS ISO 9308-1- MNS ISO MNS 900-2005 1998 19250:2017 Namir river upstream of Umnugovi soum center 1 130 E.coli- detected Not detected N490 6‘38” E910 41‘ 46” Namir river downstream of Umnugovi soum center 2 70 Not detected Not detected N490 6‘28” E910 44‘ 1”

iii. Ulgii, Bayan-Ulgii Aimag

281. Bacteria levels in Khovd river upstream and downstream of Ulgii are summarized in Table 48. Bacteria counts in Khovd river downstream water in Ulgii were equal to acceptable levels for surface waters. All indicators were within the standard requirements.

Table 48. Bacteria levels in Khovd river upstream and downstream of Ulgii.

(Date of sampling and analysis: 2-5 Oct, 2019) Indicators

Site name & Number of Gut floras Aerotolerants Pathogens coordinates bacteria 100 Undetectable Undetectable Undetectable MNS 900- MNS ISO 9308- MNS ISO 6461- MNS ISO 2005 1-1998 2:1998 19250:2017 Khovd river upstream of Ulgii E.coli not Not detected at 470 57 ‘ 85 Not detected 58” detected 100ml 890 53‘ 28”

Khovd river downstream of Ulgii E.coli not Not detected at 480 57 ‘42 <100 Not detected ” detected 100ml 890 59‘ 42”

154

iv. Deluun soum, Bayan-Ulgii Aimag

282. Table 49 indicates bacteria levels in river at Deluun soum meet surface water standards.

Table 49. Bacteria levels in Chigertei river upstream and downstream of Deluun

(Date of sampling and analysis: 2-5 Oct, 2019) Indicators

Site name and Number of Gut floras Aerotolerants Pathogens coordinates bacteria 100 Undetectable Undetectable Undetectable MNS 900- MNS ISO 9308- MNS ISO 6461- MNS ISO 2005 1-1998 2:1998 19250:2017 Chigertei River upstream of Deluun E.coli not Not detected at 450 50 ‘ 40 Not detected 7” detected 100ml 900 40‘ 54”

Chigertei River downstream of Deluun E.coli not Not detected at 80 Not detected 470 49 ‘59” detected 100ml 900 53‘ 28”

v. Jargalant, Khovd Aimag

283. Bacteria levels in Buyant river at Jargalant and in the water from the famous Bogoch Spring are low and meet water quality standards.

Table 50. Bacteria levels in Buyant River in Jargalant, Khovd Aimag

(Date of sampling and analysis 18-20 Sept, 2019)

Indicators

Site name and Number of Gut floras Aerotolerants Pathogens coordinates bacteria 100 Undetectable Undetectable Undetectable MNS 900- MNS ISO 9308- MNS ISO 6461- MNS ISO 2005 1-1998 2:1998 19250:2017 Spring Bogoch Spring 48.029487 <100 E.coli detected Not detected Not detected at 25ml 91.6535

Buyant River upstream of Jargalant <100 E.coli detected Not detected Not detected at 25ml 470 58 ‘29” 910 34‘ 25”

155

Indicators

Site name and Number of Gut floras Aerotolerants Pathogens coordinates bacteria 100 Undetectable Undetectable Undetectable MNS 900- MNS ISO 9308- MNS ISO 6461- MNS ISO 2005 1-1998 2:1998 19250:2017

Buyant River downstream of Jargalant <100 E.coli detected Not detected Not detected at 25ml 470 57 ‘27” 1060 49‘ 34”

e. Heavy metal content in rivers at ASDIP sites

284. Heavy metals were sampled upstream and downstream of the ASDIP five urban centers during the environmental survey in 15-25 September 2019. Sampling methodology followed MNS 230594-1995 requirements. Two samples in each of urban site for a total of 10 samples were taken for heavy metal content. Metals were analyzed employing ICP80T and IMS80T methods in an accredited laboratory “SGS IMME Mongolia LLC” in Ulaanbaatar city. The metal content in the rivers near the project sites are provided in Table 51.

285. At all ASDIP sites only one industry uses toxic chemicals which is the tannery in Ulaangom of Uvs Aimag. It extensively uses chromium (Cr3) for processing of animal hides and lab results of the sampled wastewater from the tannery shows high pollution of heavy metals, including chromium (total), arsenic and nitrogen. Heavy metal concentrations in the effluent of the tannery are summarized in Table 52.

Table 51. Heavy metal content in five rivers at ASDIP project areas.

Heavy Metals (µg/l) Location info of Sampling No. samplings date Ni Mo As U Pb Fe Buyant river upstream in 17 Sep 1 Jargalant 0.6 2.8 1.27 1.44 <0.5 <50 2019 N47058’29”; E910 34’25”. Buyant river Downstream in 17 Sep 2 Jargalant 0.7 2.9 1.25 1.64 <0.5 <50 2019 N4806’2.44”; E910 41’52.02”. Bogoch Spring in Jargalant 17 Sep 3 2.8 8.0 1.40 14.4 <0.5 <50 N4801’13”; E910 2019 39’12”.

156

Chigertei river upstream of 18 Sep 4 Deluun, <0.3 2.4 0.54 0.92 <0.5 <50 2019 N45050’7”; E900 40’54”. Chigertei river downstream, of 18 Sep 5 Deluun, <0.3 5.6 0.63 1.20 <0.5 <50 2019 N47049’59”; E900 43’55”. Khovd river 20 Sep upstream of Ulgii, 6 2019 <0.3 1.1 0.61 1.04 <0.5 <50 N480 0 57’58”; E89 53’28”. Khovd river downstream of 20 Sep 7 Ulgii, 2019 1.2 1.8 0.68 1.37 <0.5 <50 N48057’42”; E890 59’42” Namir river downstream of 21 Sep 8 Umnugovi, 2019 1.3 2.8 2.19 3.71 0.9 <50 N4906’28”; E910 44’1” Namir river upstream of 21 Sep 9 Umnugovi 2019 1.5 3.0 2.63 3.21 1.1 515 N4906’38”; E910 41’46” Gashuun river downstream of 23 Sep 10 Ulaangom 2019 2.5 2.2 1.91 3.08 <0.5 675 N49058’55”; E920 4’45” 30* µg/l 10 µgG/l 300** National surface water standard: MNS 10 µg/l or 250 µg/l 10 µg/l or or or µg/l or 4586:1998 0.01mg/l 0.25mg/l 0.01mg/l 0.03 0.01mg/l 0.3mg/l mg/l Remarks: * - US EPA Radionuclides Rule, 2000 ** - US EPA National Primary Drinking Water Regulations, 2017

Table 52. Heavy metal content in wastewater effluent

(Tannery “Gurvanbulag LLC” in Ulaangom, Uvs Aimag*) No. Location Sampling Heavy Metals, µG/l info of date Ni Mo As U Pb Cr samplings 1 Tannery 24 Sep 68.1 3.4 78.4 3.04 7.2 882,029 waste 2019 water, Ulaangom, Uvs. N49059’5”;

157

E920 4’22” h-930 m National treated wastewater 10 µg/l or 500 10 µg/l or 50 µg/l or 10 µg/l or 50 µg/l or effluent standard: MNS 0.01mg/l µg/l 0.01mg/l 0.05mg/l 0.01mg/l 0.05mg/l 4943:2011 0.5mg/l

9. Groundwater

286. The groundwater of the region accumulates in rocks with different ages, and can be classified as granular and fissure. Granular groundwater accumulates in the non-cemented sedimentary rocks and fissure groundwater accumulates in sedimentary, igneous and metamorphic rocks with different ages. Granular groundwater in the Neocene and Paleocene rocks is mainly confined and hydraulic pressure is relatively high, but fissure groundwater is mainly phreatic and is caused by the clastic rocks with different age.

287. The distribution of groundwater is uneven in project area (Figure 38). Moving from north to south, groundwater resources become more sporadic and mineralization increases. This is primarily due to the climactic changes, including the reduction of precipitation, and increase in air temperature and evaporation in the south. Precipitation, condensation, and tectonic faults all play very important roles in recharging groundwater in the region.

a. Groundwater quality

288. Available data for groundwater quality at the project sites is shown in Table 53. Bacteria levels in groundwater are summarized in Table 54.

Table 53. Chemical properties of groundwater at ASDIP project sites

-, mg/l mg/l -,

Ca, mg/l mg/l Ca,

Mg, mg/l mg/l Mg,

Location Location

Iron, mg/l mg/l Iron,

NH4, mg/l mg/l NH4,

NO3, mg/l mg/l NO3,

SO4 , mg/l mg/l , SO4

Suspended Suspended

solids, mg/l mg/l solids,

(deep wells) wells) (deep

sampling date date sampling

No. of samples samples of No. Hardness, mg/l mg/l Hardness, Jargalant, Khovd 2019 12 1.76 11.69 0.04 9.5 0.11 156.2 26. 8 3 7 Aimag − Ulaangom, Uvs 2019 32 3.53 26.8 0.01 1.8 0.06 1.8 58.7 15.4 33 7.7 Aimag Umnugovi soum, 2019 6 2.88 73.25 0.005 3.2 0.056 0.34 58.4 8.3 40.4 7.1 Uvs Ulgii, Bayan-Ulgii 2019 69 3.26 45.25 0.12 0.4 0.039 42.1 18.2 0.78 7.5 Aimag − Deluun soum, 2019 1 2.04 31.9 0.007 0.1 0.001 - 24 9.8 0.12 7.3 Bayan-Ulgii

National Standard requirements: MNS ISO 10523, 6059 -2001; 7980- 6.5- 7 350 0.5 50 0.3 1000 100 30 100 2003; 4818-1999; 4429, 4430, 4431- 8.5 1997; 6271-2011

158

Table 54. Bacteria levels in groundwater at project sites

Indicators

E.Coli

countof

bacteria Pathogens

Locations MNS 900- MNS ISO 9308-1- MNS ISO

samplingdate 2005: not 1998: 19250:2017 samplingsnumber above 100 Undetectable Undetectable Ulaangom, 2019 2* 2 Uvs 32 ₋ Ulgii, Bayan- 2 22 Ulgii 2019 62 ₋ Jargalant, 0 0 Khovd 2019 12 ₋ Umnugovi, 0 0 Uvs 2019 6 ₋

Figure 38. Groundwater resources of project areas

159

Legend of Figure 36

b. Groundwater quantity

289. The results of the water resource assessment study conducted by the water resource and water consumption sector of the Institute of Geography and Geo-Ecology of MAS (conducted for the MCUD) for water supply development projects in Mongolia, indicated that western Mongolia, including whole territory of Bayan-Ulgii aimag, northern part of Uvs aimag (including Tarialan and Ulaangom) and western part of Khovd aimag, including Jargalant (aimag center) are among the territories identified as suitable for groundwater supply development projects. Figure 39 provides the water groundwater resources map from the study.

290. From the above study the Water Resource Division of the MET (2020) indicates that underground water resources of the following soum centers have been explored and approved by Water Resource Committee of MET as follows: a) Ulgii soum (Bayan-Ulgii aimag center) - 6,730.4 m3/day b) Jargalant soum (Khovd aimag center) - 13,478 m3/day c) Ulaangom soum (Uvs aimag center) – 8,977.6 m3/day d) Umnugobi soum (Uvs aimag)- 2,030.4 m3/day

291. These groundwater data indicate that underground water resources in these locations are well studied and secured for further investment and development.

160

Figure 39. Groundwater resources assessment map.

Source: Institute of Geography and Geo-Ecology of MAS

10. Soil quality in project sites

a. Heavy metals

292. An analysis of heavy metals in soil at urban – per-urban project sites was conducted during the environmental survey held in 16-25 September 2019. Soil was sampled at peri-urban and urban sites due to the presence of human activity. Soil samples were not taken at proposed fodder farms or other remote rural areas due the lack of significant human activity in those areas. X-ray Fluorescence (XRF) tool was used to identify possible heavy metal pollution in soils near the sites. Heavy metal levels at most sites meet national soil quality requirements MNS5850:2008 with some anomalies that are described below. Table 55 provides national soil quality standards.

i. Jargalant, Khovd Aimag

293. Lead, chrome, zinc and arsenic levels (Figures 40 and 41) all have exceeded the precaution, trigger and action values of the Mongolian standards in two areas indicated below. Lead levels at the power plant exceeded the precaution value by 15-184%, and trigger value by 79-190%. At the market place lead exceeded the precaution value by 57-155%. Zinc levels at the power plant exceeded the precaution value by 15-70%, and trigger value by 44%. At the market place zinc exceeded precaution values 5-92%, trigger value by 25-36%, and action value by 62- 82%. Arsenic levels at the power plant exceeded the trigger value by 2-62%, and action value by

161

139-178%. The source of the pollution at the power plant is ash waste from the power plant. Pollution source at the market place is mostly from auto oil retail and scrap metal purchasers, where they tend to spill and dispose oil on the soil.

Figure 40. Soil heavy metals in two locations in Jargalant

2000 1800 1600 1400 1200 1000 800 600 400 200

Cr-9

Cr-8

Cr-7

Cr-6

Cr-5

Cr-4

Cr-3

Cr-2

Cr-1

Zn-9

Zn-8

Zn-7

Zn-6

Zn-5

Zn-4

Zn-3

Zn-2

Zn-1

Pb-9

Pb-8

Pb-7

Pb-6

Pb-5

Pb-4

Pb-3

Pb-2

Pb-1

Cr-12

Cr-11

Cr-10

Zn-12

Zn-11

Zn-10

Pb-12

Pb-11 Pb-10

Power plant Market place Trigger value, mg/kg Action value, mg/kg Precaution value, mg/kg

Figure 41. Soil arsenic content in city’s market and powerplant area in Jargalant

160

140

120

100

0 As-1 As-2 As-3 As-4 As-5 As-6 As-7 As-8 As-9 As-10 As-11 As-12

Power plant Market place Trigger value, mg/kg Action value, mg/kg Precaution value, mg/kg

162

ii. Ulgii, Bayan-Ulgii Aimag

294. Lead, chrome and zinc levels all have exceeded the precaution, trigger and action values of the Mongolian standards in two areas of Ulgii (Figure 42). The scrap yard that is located next to the Khovd river that runs through the town had Lead and Zinc levels exceeding the trigger value of the Mongolian standard by 121-198% due to spilled oil and incinerated solid waste. Measurements at the market place revealed that Chrome levels were exceeding the precaution value of the national standard by 12-89% around auto parts retail area.

Figure 42. Soil heavy metals in polluted areas of Ulgii

1600 1400 1200 1000 800 600 400 200

Cr-9

Cr-8

Cr-7

Cr-6

Cr-5

Cr-4

Cr-3

Cr-2

Cr-1

Zn-9

Zn-8

Zn-7

Zn-6

Zn-5

Zn-4

Zn-3

Zn-2

Zn-1

Pb-9

Pb-8

Pb-7

Pb-6

Pb-5

Pb-4

Pb-3

Pb-2

Pb-1

Cr-12

Cr-11

Cr-10

Zn-12

Zn-11

Zn-10

Pb-12

Pb-11 Pb-10

Marketplace Scrap yard Trigger value, mg/kg Action value, mg/kg Precaution value, mg/kg

iii. Deluun soum, Bayan-Ulgii Aimag

295. The heavy metals measurements were taken from high traffic areas in soum center including school, school dorms, kindergarten, solid waste disposal areas with XRF (X-ray Fluorescence) reader in Deluun soum of Bayan-Ulgii province (Figure 43). XRF readings indicated soum center areas measured were relatively clean of heavy metals contamination. Lead content in one case exceeded the precaution value of the national standard by 11%.

163

Figure 43. Soil heavy metals in Deluun

Soil Heavy Metals in Deluun Soum, Bayan-Ulgii Aimag

160

140

120

100

10 11 12 13 14 15 16

r-1 r-2 r-3 r-4 r-5 r-6 r-7 r-8 r-9

r- r- r- r- r- r- r-

С С С С С С С С С

Pb-9

Pb-8

Pb-7

Pb-6

Pb-5

Pb-4

Pb-3

Pb-2

Pb-1

С С С С С С С

Pb-16

Pb-15

Pb-14

Pb-13

Pb-12

Pb-11 Pb-10 Deluun soum Precaution value, mg/kg

iv. Ulaangom, Uvs Aimag

296. The heavy metals measurements were taken from high traffic public and private areas with XRF (X-ray Fluorescence) tool in Ulaangom of Uvs Aimag (Figures 44 and 45). XRF readings indicated most of the areas measured were relatively clean of heavy metals contamination except for three areas indicated in the chart. We have found Lead, Chrome and Arsenic pollution in the topsoil of these three sites exceeding the precaution, trigger and action values of the Mongolian standards. The Power plant and its ash disposal area’s top soil Lead level have exceeded the national standard’s precaution value by 16-229% and the trigger value by 33%, Zinc level exceeds the precaution value by 0.9-45%, trigger value by 11%, Chrome level exceeds precaution value by 2-5% and Arsenic level exceeds precaution value by 290%, trigger value by 16-48% and action value by 14-190%. The tannery top soil has Chrome pollution that exceeds the precaution value of the national standards by 4-137%, trigger value by 19% and action value by 7-57%.

164

Figure 44. Soil heavy metals in Ulaangom

Soil Heavy Metals Ulaangom Soum, Uvs Aimag, mg/kg

2500

2000

1500

1000

500

Tannery Power plant Power plant ash disposal Trigger value, mg/kg Action value, mg/kg Precaution value, mg/kg

Figure 45. Soil Arsenic in Ulaangom

Soil Arsenic in Ulaangom, Uvs Aimag, mg/kg

160 140 120 100 80 60 40 20 0 Аs-1 Аs-2 Аs-3 Аs-4 Аs-5 Аs-6 Аs-7 Аs-8 Аs-9 Аs-10

Tannery Power plant Power plant ash disposal Trigger value, mg/kg Action value, mg/kg Precaution value, mg/kg

165

v. Umnugovi soum, Uvs province

297. The heavy metals measurements were taken from high traffic areas in soum center such as school, kindergarten, soum administration building and market area and also artisanal mining site located 35 km north from the soum center with XRF (X-ray Fluorescence) reader in Umnugovi soum of Uvs province. XRF readings indicated soum center areas measured were relatively clean of heavy metals contamination, but the mining site has shown chrome and zinc contents have exceeded the precaution value of the Mongolian national standard in some areas (Figure 46). Chrome levels has exceeded the precaution value by 4-5% and Zinc level has exceeded the precaution value by 13%.

Figure 46. Soil heavy metals in Umnugovi soum

Soil Heavy Metals in Umnugovi Soum, Uvs Aimag

160

140

120

100

10 11 12 13 14 15 16

r-1 r-2 r-3 r-4 r-5 r-6 r-7 r-8 r-9

r- r- r- r- r- r- r-

С С С С С С С С С

Pb-9

Pb-8

Pb-7

Pb-6

Pb-5

Pb-4

Pb-3

Pb-2

Pb-1

С С С С С С С

Pb-16

Pb-15

Pb-14

Pb-13

Pb-12

Pb-11 Pb-10 Deluun soum Precaution value, mg/kg

Table 55. National soil quality standards for heavy metals

MNS 5880 :2008 Elements Soil Mechanical Composition Maximum Clay Loamy Sandy Acceptable Amount, mg/kg Pb 100 70 50 100 Cd 3 1.5 1 3 Hg 2 1 0.5 2 As 6 4 2 6 Cr 150 100 60 150 Cr6+ 4 3 2 4

166

MNS 5880 :2008 Elements Soil Mechanical Composition Maximum Clay Loamy Sandy Acceptable Amount, mg/kg Sn 50 40 30 50 Sr 800 700 600 800 V 150 130 100 150 Cu 100 80 60 100 Ni 150 100 60 150 Co 50 40 30 50 Zn 300 150 100 300 Mo 5 3 2 5 Se 10 8 6 10 B 25 20 15 25 F 200 150 100 200 CN 25 15 10 25

11. Permafrost

298. Permafrost is a part of upper layer of the Earth crust that is characterized by negative temperatures of soils/rocks and occurrence or possible of occurrence of underground ice. There are two layers in the permafrost: an active layer with seasonal thawing/freezing and a perennially frozen ground or cryolite zone. Global warming and anthropogenic impacts intensify permafrost warming and thawing. Permafrost degradation can cause substantial change in water hydrology, damage infrastructure and affect ecosystems. Thermokarst is an uneven/hummocky terrain created by thawing permafrost.

299. Uvs, Bayan-Ulgii and Khovd Aimags are located in the Altai Mountain region, where permafrost is divided into five zones that depend on altitude: (i) continuous, (ii) discontinuous, (iii) widespread island, (iv) rare spread island, and (v) sporadic (Figure 47): • Continuous permafrost lies predominantly in mountain areas with altitude of more than 3,000 m above sea level. The temperature of the permafrost ranges between -1.5о С and -2.5о С and its thickness is between 80 and 150 m. The minimum temperature of the permafrost drops to -4о С, and in some locations, permafrost thickness reaches 200-500 m. • Discontinuous permafrost is widespread in the Western part of the Mongol-Altai Range and in some upper reaches of the Khovd River. The temperature of the permafrost ranges between -0.8о С and -1.5о С, with a thickness between 40 and 80 m. The maximum thickness of permafrost is 200 m. • Widespread island permafrost is located in areas with elevations between 2,500 and 2,800 m above sea level. The temperature of the permafrost is between -0.2о С and - 0.8о С, with a thickness ranging from 15 to 40 m. The maximum thickness of the permafrost is 100 m. • Rare spread island permafrost occurs throughout valleys of rivers and lakes with elevations of 2,000-2,500 m above sea level. The temperature of the permafrost is between -0.1оС and -0.2оС, and the thickness between 5 and 15 m.

167

• Sporadic permafrost occurs in the muddy soil of springs. The average temperature of the permafrost is between -0.0оС and -0.1оС, with an average thickness between 0.5m and 5.0 m. 300. No permafrost is located at the five project sites which was confirmed by the engineering team and officials at each of the project sites during the site visits.

Figure 47. Permafrost in western Aimags

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B. Ecological Resources

1. Vegetation in western Aimags

301. The type of vegetation coverage in western project Aimags is summarized in Figure 48.

Figure 48. Vegetation types of western Aimags

2. Local wildlife and biodiversity

302. Mongolia boasts a wide variety of wildlife: with 139 species of mammals; 450 species of birds (331 migratory and 119 residents within Mongolia year round); 22 species of reptiles; 6 species of amphibians; and 76 fish species. Western Mongolia is famous with its unique fauna and flora where most of the species are endemic to the region and endangered worldwide. Some of the species that are wild ancestors of the domesticated animals still roam in Altai Mountains. Species include:

• Snow Leopards (Uncia uncia) • Wild sheep (Ovis ammon) or Argali • Siberian Ibex (Capra sibirica), • Mongolian Saiga (Saiga tatarica mongolica) • Musk Deer (Moschus moschiferus) • Pallas’ cat (Felis manul) or Manul • Black Tailed Gazelle (Gazelle subgutturosa) • Wild Ass (Equus hemionus) 169

• Wild Boar (Sus scrofa nigipes) • Stone Martin (Martes foina) • Marbeled Polecat (Vormela peregusna) • Elk (Cervus elaphus) or Red Deer • Snowcock (Tetraogallus altaicus) or Altain ular • Cenereous Vulture (Aegypius monachus) • Golden Eagle (Aquila chrysaetos) • Lammergeyer (Gypaetus barbatus) • Spoonbills (Platalea Leucorodia) • Dalmatian Pelican (Pelecanus crispus) • Great White Egrets (Egretta alba) • Whooper Swans (Cygnus cygnus) • Great Black-Headed Gulls (Larus ichthyatus) • Black Storks (Ciconia nigra); and • The Swan Goose (Anser cygnoides).

303. The project area is entirely located within the Altai–Sayan Eco-region and Mongol Daguurian ecosystems (Figure 49). These regions are characterized by rich fauna biodiversity ranging from mountain tundra of Mongolian Altai to Gobi Desert and Great Mongolian plain steppe: there are 360 species of vertebrates, including 90 species of mammals, more than 250 species of birds, 11 species of reptiles, 8 species of fishes, and 1 species of amphibian.28 The distribution of the critically endangered Saiga antelope (tatarica mongolica) is shown in Figure 50.

Figure 49. Location of Altai-Sayan ecosystem

Source: WWF. https://www.khanexpedition.com/en/post/khovd-aimag-flora.html

28 WWF. 2001. Altai-Sayan Ecoregion: Ecoregion Climate Change Biodiversity Decline. 170

Figure 50. Geographic range of Saiga antelope

Source: WWF Mongolia, 2019

3. Ecological protected areas

304. The Law of Mongolia on Special Protected Areas (1995), classifies protected areas in the country as follows:

1. Strictly Protected Areas 2. National Conservation Parks 3. Nature Reserves and 4. Natural Monuments

a. Protected areas in Western Aimags

305. The four types of protected areas located in western three Aimags are numbered below and listed on the Protected Area Map of Mongolia for reference (Figure 51).

Strictly Protected Areas

1. Great Gobi part B Strictly protected area (SPA) is located in south-western boundary of Mongolia with China in the territories of Khovd (Bulgan, Uench, and Altai soums) and Gobi-Altai (Tonkhil and Bugat soums) aimags covering 6.5 mln ha (including Part A of SPA, which is located outside of ASDIP sites to the south –east). The area is named literally, southern part of Altai Range. It was established 1975 and registered in international Man and Biosphere program in 1991. This is home to Gobi bear (Ursus arctos gobiensis), Wild camel (Camelus ferus), Wild sheep (Ovis ammon), Siberian Ibex 171

(Capra sibirica), Snow Leopards (Uncia uncia), Black Tailed Gazelle (Gazelle subgutturosa), Wild Ass (Equus hemionus) and Saiga Tatarica Mongolica (Saiga borealis). This is the 15th largest PA by its territory in the world.

Figure 51. Protected areas in western Aimags

Source: MET, May 2019

Remarks on the Protected Areas in Western Aimags map:

- Strictly Protected Areas

- - National Parks

- - Nature reserves

There are 10 protected area type in western Mongolia

172

2. Uvs Lake basin SPA is located in Uvs aimag territory consists of four parts located in various territories of Uvs aimag: Uvs lake- main part (in territories of Tes, Davst, Malchin, Naranbulag and Tarialan soums), Tsagaan Shuvuut part (in Sagil soum), Turgen Mountain part (in territories of Turgen, Tarialan, Bukhmurun and Khovd soums), and Ataln els part (in Baruuntruun soum). It covers 755,244 ha of land and water and taken under protection in 1993 to protect unique ecosystems in these areas and serves as etalon of Central Asian territories for ecosystem studies. it was registered in MAB in 1997, World Heritage network -2003 and Ramsar – 2004. It is also covered under IGBP (international Geo-and Biosphere Program) study.

3. Khuh- serh Strictly protected area (SPA) is located along the eastern side of the aimag that shares common boundary with Khovd aimag. It was established in 1977 within the administrative territories of Deluun soum of Bayan-Ulgii and Jargalant soum of Khovd aimag taking of 75,750 ha of land. This is important area for Wild sheep (Ovis ammon) or Argali and Siberian Ibex (Capra sibirica)

National Conservation Parks

4. Altai Tavan Bogd National Conservation Park (NP) is stretched along the western boundary of Mongolia with China and Russia and located in western 4 soums (Tsengel, Ulaan-hus, Sagsai and Altai) of Bayan-Ulgii aimag covers 656,088 ha of land. Highest mountain peaks and rich wildlife are located in the park. It was established in 1996.

5. Siilkhem range (Part A and Part B) NP is located along the northern boundary of Mongolia with Russia in territories of Ulaanhus and Nogoonnuur soums of Bayan-Ulgii. It was established in 2000 and covers 147,875 ha of land. It was protected for its rich wildlife and scenic areas.

6. Tsambagarav NP is located in the eastern part of aimag and covers 113,748 ha in Altantsugts and Bayannuur soums of Bayan-Ulgii and Erdeneburen soums of Khovd Aimag. The national park is established in 2000 to protect the population and habitat areas of Snow Leopards (Uncia uncia)

7. Chigertein River NP is located along boundary of Mongolia with China in the western part of Bayan-Ulgii aimag in territory of Deluun soum. It was established in 2012 to protect formation of river water sources, conservation of water and humidity regimes, and provide water supply for flora and fauna in the region and covers 167,191 ha of land.

8. Munkh Khairhan NP is located along boundaries of Bayan-Ulgii and Khovd and covers 506,094 has of land in the territories of Bulgan soum of Bayan-Ulgii and Uench and Munkh Khairkhan soums of Khovd Aimags. It was established in 2006 to protect its unique ecological areas and snow-capped mountain peaks and the territory was expanded in 2011.

9. Khar-Us Lake NP is located in the territory of Khovd aimag covers 852,995 ha areas of Myangad, Durgun, Chandmani, Mankhan and Buyant soums of the aimag. It was established in 1997 to protect four lakes (Khar-Us, Khar, Durgun and Zereg Tsagaan) and its rivers and surrounding unique terrestrial ecosystems, flora and fauna.

173

10. Myangan Ugalzat Range NP (literally in Mongolian: mountain range with thousand wild sheep) was established in 2002, to protect scenic areas, rare and endangered plant and wildlife species, including wild sheep. It covers 303,774 ha, including its expansion taken in 2011 in territories of Tsetseg, Must and Altai soums of Khovd aimag.

11. Khan-Khuhii Range and Hyargas Lake NP is established in 2000 in Uvs aimag and consists of two parts: Khan-khuhii mountain range and Hyargas Lake. Both of them are located in territories of Zuunkhangai, Undurkhangai, Tsagaankhairhan and Hyargas soums of this aimag. It covers 221,598 ha and includes variety of unique landscapes and river ecosystems.

Nature Reserves

12. Devel Aral (Devel Island of Khovd River) Nature Reserve (NR) is established in 2000 and located in converging territories of Bayan-Ulgii and Uvs aimags’ boundary. It covers 10,618 ha of Nogoonnuur and Altantsugts soums of Bayan-Ulgii and Khovd soum of Uvs aimags. This nature reserve is home to Peasant (Phasianus colchicus L.), Wild Boar (Sus scrofa nigipes), beaver (Castor fiber) and wild plants of Sea-buckthorn.

13. Altan Khuhii Mountain NR is located in the border areas of Umnugobi soum of Uvs and Myangad soum of Khovd aimags. It was established in 2010 to conserve variety of unique landscapes and flora and fauna of this NR and covers 90,734 ha of land.

14. Bulgan Khangai NR is located in Hyargas soum of Uvs aimag and covers 11,407 ha of land. Established in 2012 to conserve its unique beautiful ecosystem.

15. Tes River Basin NR is located to the east of Uvs Lake along the boundary of Mongolia with Russia to the north of Uvs aimag. It was established in 2006 to conserve the unique river basin landscapes and ecosystems located in Tes Soum of Uvs aimag.

16. Sharga Mankhan and Sutai Mountain NR is located in two distinct (200 km) from each other areas: Mankhan part is located within territory of Mankhan and Buyant soums of Khovd aimag and the Sharga part is located in Sharga soum of Gobi-Altai aimag, which is outside of ASDIP project area. Total territory of NR is 396,290 ha and approximately 1/3 of NR is belong to Mankhan area. It was established to conserve core habitat area (last refugee) of Saiga tatarica Mongolica in 1993.

306. In addition to above Protected areas located in Western three Aimags, Government of Mongolia has recently (July 2019) issued a degree to annul mining activities that are taken place in ecologically fragile environment and take under state special protection.

b. Tranche 1 project sites and protected areas.

307. The project sites of Tranche 1 in the three western Aimags are not located in, close to, or will affect any protected areas. During the extensive site visits for Tranche 1 the environmental team screening out two project sites in Mankhan soum of Myangad soum in Khovd Aimag because the project components were located inside either Nature Reserves or National Parks. Of particular importance was Mankhan soum which supports remaining habitat of the critically endangered saiga antelope (Figure 50).

174

308. Two types of irrigation schemes planned in Tarialan soum in Uvs Aimag will extract water from the Kharkiraa-Teel river that discharges into Uvs lake which is a Strictly Protected Area (defined above). However, the feasibility design of the two irrigation schemes (Figures 11 – 13), along with information obtained on seasonal flow regime of the lower Kharkiraa-Teel river indicate that the two irrigation schemes will not affect Uvs Lake ecosystem. This is discussed further below in the Impacts Assessment of Chapter VI.

C. Socioeconomic Profile

1. Physical and Cultural Resources

309. There are no cultural heritages or resources such as deer stones, tombs, ancient rock painting, remains of ancient cemetery, or places of worship in the immediate vicinities of all five ASDIP project sites in the three project Aimags.

2. Socio-economic profiles of ASDIP project sites.

a. Ulaangom, Uvs Aimag

310. Ulaangom, is located on the northern part of the Uvs Aimag in 1,341 km from UB city. The territory is divided into 12 baghs.

Demography

311. As of 2018-year end, Ulaangom’s population is 31,279 belonging to 8,574 households. Of which, 15,722 are male, and 15,891 are female. Annual population growth is at 1%. Average life expectancy in Uvs Aimag is at 68.84 years which is 1 year below than national average. Average life expectancy is 63.93 years for males and 72.87 years for female residents.

Education

312. There are 15 kindergartens in Ulaangom that have 2,851 children. 7 middle schools in Ulaangom employ 431 teachers who teach a total of 8,155 pupils. There are 2 colleges in Ulaangom Soum: Uvs TVET and a branch of Labour College of Mongolia. In total, the two colleges have 1531 students and 81 teachers.

Health services

313. Ulaangom has total of 50 health institutions including both state and private operated has a total of 336 employees which includes 126 doctors, 178 nurses and over 80 technical and service workers. Its capacity is 250 beds for in-patients. It offers health services to 110,000 patients each year.

Unemployment and poverty

314. Total workforce in Uvs Aimag is 49,100 persons which includes 3177 unemployed persons. Labor participation rate is at 77.2% and unemployment rate in Uvs Aimag is at 8.4%. In Davst soum, there are 24 registered unemployed persons in August 2018, of which 13 are female residents.

175

Economic development

315. Uvs Aimag is one of the relatively well-developed Aimags in Mongolia with gross domestic product gross domestic product (GDP) of 130 million USD. The main economic sectors in Uvs Aimag are livestock breeding, crop planting, light industry, service sector and mining. In 2017, Uvs had 3.13 million heads of livestock and planted wheat, vegetables and sea buckthorn at 9,235 ha of field.

Infrastructure condition

316. Ulaangom is connected to Borshoo border port with paved which is connected Russian counter port Khandgait. These connections allow residents from Russia to visit for trade or sightseeing. Ulaangom has two power plants that provide heat and electricity. Water is supplied from Hovd river which runs through the city. Wastewater from households are disposed into wastewater treatment plant, but the treatment level is very low due to outdated technology.

b. Umnugovi soum, Uvs Aimag

317. Umnugovi soum of Uvs Aimag is located on the southern part of the Uvs Aimag, 1,460 km from UB city and in 154 km distance from Ulaangom. The soum territory is divided into 5 baghs.

Demography

318. As of 2018-year end, Umnugovi soum had population of 4,681 people belonging to 1,155 households. Of which, 2,321 are male residents and 2,360 are female residents. Annual population growth is at 1%. Average life expectancy in Uvs Aimag is at 68.84 years which is 1 year below than national average.

Education

319. There is 1 kindergarten in Umnugovi soum that had 342 children in 2018. The kindergarten employed 6 full time teachers, 6 assistant teachers, 22 pre-school staff and 10 other staffs. There are 3 general education schools in Umnugovi soum and have total of 1,070 students and 59 teachers.

Health services

320. Umnugovi soum has total of 1 hospital, employing 336 employees which includes 126 doctors, 178 nurses and over 80 technical and service workers. Its capacity is 250 beds for in- patients. It offers health services to 110,000 patients each year.

Unemployment and poverty

321. Total workforce in Uvs Aimag is 49,100 persons which includes 3,177 unemployed persons. Labor participation rate is at 77.2% and unemployment rate in Uvs Aimag is at 8.4%. In Davst soum, there are 24 registered unemployed persons in August 2018, of which 13 are female residents.

Economic development

322. Umnugovi soum’s economic source is mostly through livestock breeding. In 2018 Umnugovi

176 soum’s total livestock headcount was 233,150 owned by over 1,000 herder households. Which is over 87% of the total population of the soum. Alson in 2018, Umnugovi soum had utilized 113.7- hectare land for crop, mostly wheat and vegetables.

Infrastructure condition

323. Umnugovi soum is located between Ulgii, Bayan-Ulgii Aimag, Ulaangom, Uvs Aimag, and Jargalant, Hovd Aimag. In 2018, Umnugovi soum had spent 1.1 billion MNT on construction, capital repairs and maintenance.

c. Jargalant, Khovd Aimag

324. Jargalant of Khovd Aimag is located on the southern part of the Hovd Aimag in 1,600 km from UB city. The territory is divided into 12 baghs.

Demography

325. As of 2018-year end, Jargalant had population of 30,336 people belonging to 8,200 households. Of which, 14,816 are male residents and 15,520 are female residents. Annual population growth is at 1%.

Education

326. There are 28 kindergartens in Jargalant that had 3,512 children in 2018. The kindergarten employed 122 full time teachers, 69 assistant teachers, 361 pre-school staff and 170 other staffs. There are 8 general education schools in Jargalant and have total of 8,649 students and 438 teachers.

Health services

327. Jargalant has total of 59 health institutions, employing 336 employees which includes 177 doctors, 208 nurses. Its capacity is 362 beds for in-patients. In 2018 the hospitals in Jargalant provided services to 15,578 patients.

Unemployment and poverty

328. Total workforce in Khovd Aimag is 39,627 persons which includes 3,337 unemployed persons. Labor participation rate is at 73.9% and unemployment rate in Khovd Aimag is at 8.4%. In Jargalant, there are 821 registered unemployed persons in Sept 2019.

Economic development

329. Khovd Aimag is one of the relatively well-developed Aimags in Mongolia with gross domestic product (GDP) of 146 million USD. The main economic sectors in Hovd Aimag are livestock breeding, crop planting, light industry, service sector and mining. In 2018, Hovd Aimag had 3.14 million heads of livestock and planted wheat, vegetables and watermelon at 2,243.5 hectares of field. Jargalant had 99,000 heads of livestock.

Infrastructure condition

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330. Jargalant is located along the Millennium road which connects western Aimags Govi-Altai, Uvs, Bayan-Ulgii and Chinese counter ports Bulgan and Baitag. Jargalant has two coal plants that provide heat and electricity to the city. The city is located along Buyant river which provides fresh water to the city. Wastewater is disposed into a waste water treatment plant west of the residential area through the city’s sewage system, but the treatment level is very low due to outdated technology.

d. Ulgii, Bayan-Ulgii Aimag

331. Ulgii is located in the mid-central part of the Bayan-Ulgii Aimag in 1,690 km from UB city. The territory is divided into 13 baghs.

Demography

332. As of 2018-year end, Ulgii had population of 36,930 people belonging to 8,424 households. Of which, 18,176 are male residents and 18,754 are female residents. Annual population growth is at 1%. Average life expectancy in Bayan-Ulgii Aimag is at 73.11 years.

Education

333. There are 26 kindergartens in Ulgii that had 3,391 children in 2018. The kindergarten employed 131 full time teachers, 116 assistant teachers, 539 pre-school staff and 292 other staffs. There are 14 general education schools in Ulgii and have total of 10,970 students and 652 teachers.

Health services

334. Ulgii has total of 61 health institutions, employing 355 employees which includes 158 doctors, 236 nurses and over 24 technical and service workers. Its capacity is 250 beds for in- patients. It offered health services to 110,000 patients in the year 2018.

Unemployment and poverty

335. Total workforce in Bayan-Ulgii Aimag is 55,772 persons which includes 7,014 unemployed persons. Labor participation rate is at 70% and unemployment rate in Bayan-Ulgii Aimag is at 12.6%.

Economic development

336. Bayan-Ulgii Aimag has gross domestic product (GDP) of 139 million USD. The main economic sectors in Bayan-Ulgii Aimag are agriculture, mostly livestock breeding, crop planting, light industry, service sector and mining. In 2018, Bayan-Ulgii had 2.17 million heads of livestock and planted wheat, vegetables 2,316.4 hectares of field.

Infrastructure condition

337. Bayan-Ulgii has borders connecting to both Russia and China. The Russian border crossing Tsagaannuur is open year around and is the preferred road traveling to and from Kazakhstan. Ulgii Soum is connected to Hovd and Uvs Aimag through paved roads. Ulgii has powerplant that provides electricity and heat to the Soum. Wastewater from households are

178 disposed into wastewater treatment plant, but the treatment level is very low due to outdated technology.

e. Deluun soum, Bayan-Ulgii

338. Deluun soum is located in the southern part of the Bayan-Ulgii Aimag in 1,692 km from UB city. The Soum territory is divided into 10 baghs.

Demography

339. As of 2018-year end, Deluun soum had population of 7,437 people belonging to 1,662 households. Of which, 3,686 are male residents and 3,751 are female residents. Annual population growth is at 1%.

Education

340. Deluun soum has 1 kindergarten servicing 260 children in 2018. The kindergarten employed 8 full time teachers, 7 assistant teachers, 30 pre-school staff and 15 other staffs. There are 3 general education schools in Deluun soum and had total of 1,451 students and 110 teachers.

Health services

341. Deluun soum has 1 hospital, employing 24 employees which includes 7 doctors, 7 nurses and over 10 technical and service workers. Its capacity is 29 beds for in-patients. It offered health services to 705 patients in the year 2018. Unemployment and poverty

342. Total workforce in Bayan-Ulgii Aimag is 55,772 persons which includes 7,014 unemployed persons. Labor participation rate is at 70% and unemployment rate in Bayan-Ulgii Aimag is at 12.6%.

Economic development

343. Bayan-Ulgii Aimag has gross domestic product (GDP) of 139 million USD. The main economic sectors in Bayan-Ulgii Aimag are agriculture, mostly livestock breeding, crop planting, light industry, service sector and mining. In 2018, Bayan-Ulgii had 2.17 million heads of livestock and planted wheat, vegetables 2,316.4 hectares of field.

Infrastructure condition

344. Deluun soum is connected to Ulgii Soum, the capital of Bayan-Ulgii Aimag and Jargalant Soum of Hovd Aimag through partially paved roads. In 2018, Deluun soum has spent 1.4 million MNT on construction, capital repairs and maintenance.

V. PUBLIC CONSULTATION

345. The stakeholder consultation strategy designed and implemented for the ASDIP embodied the principles of meaningful engagement, transparency, participation, and inclusiveness to ensure that affected and marginalized groups such as women and the poor were

179 given equal opportunities to participate in the design of the project, in accordance with the requirements ADB’s Safeguard Policy Statement (2009).

A. Identification of Stakeholders

346. Affected stakeholders were identified and engaged in a participatory manner with assistance from TOSK/MCUD and the national environment and social team. The affected stakeholders represented all project component sites in the Aimag centres and soum centres including all large facility sites such as existing heating plants, WTTPs, and all agropark facilities sites. The stakeholders involved in the consultations included:

• TOSK/MCUD representatives of ASDIP;

• Representatives of all affected Khashas;

• Khasha representatives living along pilot roads who have an interest in identifying measures to enhance or maximize the benefits, and who may be directly and/or adversely affected by the ASDIP;

• Representatives of business, individual households, and religious groups; and

• Implementing national EIA firm, and engineer of ASDIP.

347. The locations and structure of consultations conducted is summarized in Table 56.

Table 56. Summary of public consultations of affected persons and local government

Number and Meeting date Age of No. Meeting location gender of Attendees and duration attendees attendees 1 • Representatives of beneficiaries and potential affected Conference room of Total 118 populations of ger October 2, 2019. Khovd Aimag participants khoroos Duration 3 hours Governor office. 20-85 Male-37 • Aimag govern 4PM-7PM Jargalant soum, Female-81 agencies Khovd Aimag • NGO representatives • Retired citizens

2 Particpiants- October 3, 2019 Soum parliament 18 • Local government Duration 2 hours speakers office Male-7 officials 4 PM-6PM Female-11 • Vegetable growers 3 • Aimag governor Soum Wedding Total 164 October 4, 2019 • Local government Center. Deluun participants: Duration 2 hours 20-75 officials soum, Bayan-Ulgii Male- 131 11AM -1 PM • Representatives of Aimag Female-33 soum citizens • Retired citizens

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Number and Meeting date Age of No. Meeting location gender of Attendees and duration attendees attendees 4 October 5, 2019. • Citizens – Conference room of Participants Duration 2.3 – beneficiaries Vocational Training 101 hours. 5PM - 15-80 • Potential affected Center of Ulgii soum, Male- 61 7.30PM households Bayan-Ulgii Aimag Female-40 • Soum government officials 5 Meeting room of • Local Participants October 7, 2019 Umnugovi soum – government 60 Duration 2 hours governor office. 20-75 officials Male- 33 11AM-1PM Umnugovi soum, Uvs • Representatives Female-27 Aimag of soum citizens • Retired citizens 6 • Aimag and soum government officials Participants October 8, 2019 Drama theatre of – • Ger area 123 Duration 2 hours Ulaangom soum, Uvs 20-70 beneficiaries Male- 59 6-8 PM Aimag center • Potential affected Female-64 households • Vegetable growers and hay producers

• Soum government officials Questionnaire survey Participants- • Crop producers among local water April 29, 30 and 82 • Hay makers users, Tarialan and 14-70 May 1, 2020 Male- 56 • Vegetable Naranbulag soums of Female-26 growers Uvs Aimag • Herders • Medical doctors Middle school teachers Total number

of participants

Male - 374 Female - 282

B. Consultation Discussion Topics

348. The topics of the consultations included: • Introduction of the project, project goals, and proposed activities; • The ADB SPS (2009): Environmental safeguard requirements and ASDIP potential environmental impacts and mitigation measures; • ADB SPS (2009): Resettlement safeguard requirements and potential affected populations. • Question and answer sessions

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1. Introduction to project:

• How were the project areas selected • Project phases, list of actions • Compensation actions and property appraisal methods • Pre-plan phase and construction plans

2. Environmental safeguard requirements and issues:

• Purpose of SPS environment safeguard policy in context of ASDIP • Scope of environmental safeguard policy in relation to ASDIP • What and why environmental assessment required for ASDIP activities • Environmental planning and management: o what is an EMP and content of EMP • Information disclosure: o what information and why is needed for public • Public Consultation and Participation: o the purpose and necessity of local community participation • Grievance Redress Mechanism: o why it is important, structure, implementation • Monitoring and Reporting • Unanticipated environmental impacts • Biodiversity conservation and sustainable natural resource management • Pollution prevention and abatement: A o potential impacts and anticipated pollution o required pollution prevention or mitigation • Health and safety of local communities and project workers within ASDIP sites. • Physical Cultural Resources of ASDIP sites and required protection measures

C. Consultation Procedure

1. Discussion guide

349. To help orient participants to the discussions on environmental issues and concerns of the ASDIP a list of environmental components (e.g., Table 57) was introduced to the participants ahead of the question and answer period. The example components of environment assisted participants to understand what was meant by environment. The participants were encouraged to identify and add their own components of environment to the discussions.

Table 57. Environmental components to guide discussions.

• drinking water quality and availability • terrestrial and aquatic animals, e.g., • surface water quality and quantity fish, birds, small mammals • groundwater quality and quantity • ecological protected areas (e.g., • air quality national parks, wildlife sanctuaries), • climate • land uses (e.g., agriculture, fisheries, • land and soil quality forestry, navigation, aquaculture, • rivers, reservoirs, commercial, other), • trees, other vegetation, • public safety

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• terrestrial resources e.g., forests, • public movement and access minerals, soil • physical cultural values (e.g., temples, cemeteries, monuments)

350. Five open-ended questions, and information requests (Table 58) will be posed to guide discussions of the stakeholders.

Table 58. Guiding questions and information requests for stakeholder consultations

1. What will be the benefits of ASDIP?

Please list benefits of ASDIP.

2. Do you have any environmental concerns with ASDIP?

Please list environmental concerns of ASDIP.

3. Do you any have environmental concerns with the construction phase activities of ASDIP?

Please list environmental concerns of construction phase activities.

4. Do you have environmental concerns with the completed operation phase of the completed ASDIP?

Please list environmental concerns of the operation of completed ASDIP.

5. Do you think the design or operation of ASDIP should be changed to prevent negative environmental, or community impacts?

Please list changes to ASDIP that you think will prevent or reduce negative environmental, or community impacts?

D. Results of Public Consultation in the Aimag centres and soum centres

351. Table 59 summarizes the views and issues of the participants of the consultations as they relate specifically to the project and affected environments. The complete minutes of all consultation meetings, signatures of meeting participants, and completed questionnaire for consultations in Tarialan soum are included in Appendix C.

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Table 59. Summary of key discussion points of consultations in the five project sites

Locations of Response of ASDIP Issues or concern Response of Project stakeholders Consultation Consultants • The ger housing ASDIP Ger redevelopment redevelopment will component focuses on improve in-house air reducing air, soil and water quality. • Bad air quality due to pollution through • ASDIP will reduce smoke from chimneys of constructing/improving basic urban air & water household stoves infrastructures: water supply, pollution & improve • Environmental pollution heating and sewerage; environmental specially, inadequate solid quality. waste management and Jargalant Solid waste management • Extra care will be citizen’s bad behaviors on centre of through improving waste taken to ensure garbage handling Khovd Aimag collection, transporting pedestrians and • Safety of pedestrians on services, and solid waste general public are street, where manholes disposal site will make not harmed during without cover are frequent. change of the city. But public construction phase, awareness is needed by and the improved local community and local infrastructure government for ensuring including roads will healthy and safe living of provide much safer inhabitants. walking surfaces for pedestrians • High competition over availability of water resource of Buyant River Taken into account the • Diversion of irrigation during spring vegetable current water scarcity water from Buyant planting period. If ASDIP problem of Buyant river river was dropped agricultural component, water consumers, ASDIP from project. especially, 500 ha irrigated study team works on other • Wastewater alternatives of irrigated land area will be located Buyant soum, treatment plant locations. upstream of Buyant river, it Khovd Aimag (WWTP) of Jargalant will worsen the water ASDIP plans to invest to will be upgraded by availability for vegetable improve the treatment project growers and downstream technology and process of river ecosystem. existing WWTP to meet the • Inadequacy of wastewater national standard for treatment plant, which effluent. impact water quality of Buyant River via effluents Soum governor replied that • Belief exists that water a Government financed quality used from deep project to improve the well • Well water quality wells in soum center is bad water supply source is and quantity will be and because of this some assessed during Deluun soum ongoing. children have problems detail design stage of Bayan-Ulgii with their teeth. of project. Aimag ASDIP agriculture • Flooding is problem for component will support • Micro-finance will be herders living in some herders in creating provided for these areas and are asking sustainable livelihood in rural small projects project in building bridge areas and in combating with through local PUGs. for flood frequent areas. overgrazing through series

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Locations of Response of ASDIP Issues or concern Response of Project stakeholders Consultation Consultants • Herders face pasture of interrelated activities on • Pasture habitat overgrazing and improving livestock quality restoration through desertification issues in and health, fodder supply reductions in herd soum territory. Some trees and development of SME on size is a primary grown in pasture are livestock products. objective of the suffering because herds agrobusiness are damaging to re-grow component of and spread to barrier ASDIP. desertification extension. Would project help restoring the trees.

• Air pollution in Ulgii is worst • A detailed review of among Aimags and urgent heating plant measures to reduce air operations will occur pollution is a priority. in detailed design • If the basic infrastructure to ASDIP component on Aimag stage of project. soum center development is be built for designated • Ger housing entirely focused on baghs is expanded to redevelopment of environmental pollution (air, cover other baghs it will ASDIP will greatly soil and water pollution benefit the inhabitants for Ulgii centre improve in-house air reduction and sustainable their well-being and for of Bayan- quality. use of natural resources) Ulgii Aimag • The goal of Ger reducing environmental reduction. Project looks redevelopment in pollutions in the other forward much reduced pilot Bags is to show areas. pollution at the end of 10 benefits to air quality • A concern identified of years and thereafter. and standard of capacity of existing power plant to meet the increased living that other Bags demand of heat supply for will want to adopt. renowned ger areas. • Existing power plant and facilities will be upgraded by project ASDIP will further identify • Concern of increased wastewater treatment • The issue of consumption of solutions that should be sustainable underground water environmentally and health groundwater and resource due to project friendly and will be available surface water created water infrastructure for reuse as grey water for supplies for all users • How will wastewater will tree watering and irrigation. is paramount to the be treated when sewers ASDIP and will be

are connected to all social ASDIP enviro-team has investigated in detail buildings (kindergarten, identified considerable dust during detail design dormitory, schools and Umnugovi to be generated during the of project. offices)? Will it be a soum of Uvs project construction period. • New WWTPs will be centralized WWTP or Aimag Dust suppression activities constructed in Aimag individual septic tank? as well community and and soum centres to • Consider using grey workplace safety activities collect all water for tree watering and will be identified to be taken wastewater from all not use underground in dry season in EMP and community buildings. drinking water. proper monitoring and • The application of enforcement structure and grey water in soums resource. A proper GRM and Aimag centres

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Locations of Response of ASDIP Issues or concern Response of Project stakeholders Consultation Consultants • Whether project will reduce structure will be in place, in for local irrigation is dust pollution during case if local community have a good idea and will construction period health and safety related be supported by concern during the project project through construction period. awareness raising and O&M. • Yes, application of dust retarding agents (e.g., water, CaCl2) will be applied at all construction sites and along road works will improve the solid waste • Solid waste pollution from management in urban areas. • A major activity discarded livestock hides. This includes solid waste during detailed There is no proper waste collection, transportation and design stage is to collection and disposal proper disposal. Before investigate the system in Ulaangom and disposal, solid waste will be needs of solid waste streets are filled in with segregated into reuse and management dumps. Adequate solid recycle and for landfill. including collection waste management system and separation of is strongly required. ASDIP will assess project ash, domestic waste, • The project-proposed water consumption and animal waste at activity of irrigated 500ha compared to current water landfills. of land next Teel river will Ulaangom consumption and availability • Similar to the other 3 increase competition of centre of Uvs irrigation source river water use among hay of water resource users of Aimag Kharkiraa (upstream) and rivers of ASDIP, producers settled along the sustainable water river that confluence to Uvs Teel (downstream) river to avoid over consumption, supply to all users of Lake. the Teel Gol river and dispute with traditional including users of water resources in downstream Uvs this area. Lake Protected Area

will be investigated in detail during detailed design stage.

• Limited availability of river Project will assist in studying Project needs to Tarialan water for irrigation of hay restoration of an old canal conduct a water Soum center making areas, vegetable and ponds for harvesting balance study in this of Uvs aimag: growing and crop and conservation of flood area for input and

production water of Kharkiraa-Teel river. output water quantity Crop, hay • To harvest and accumulate It will greatly help local during the detailed making and flood waters for use of un- community in making design phase vegetable utilized areas for increase available water resources for growing of pasture areas, vegetable sustainably use for crop areas nearby growing and crop production and vegetable Teel river production. growing or hay making. mouth area • To restore an old water It will also reduce flood risks at Uvs lake. canal and ponds, which in downstream communities used in XVII-XVIII and stabilize riverbeds from

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Locations of Response of ASDIP Issues or concern Response of Project stakeholders Consultation Consultants centuries for vegetable soil erosion and ecosystem growing and crop degradation production for increased livelihoods of local Water conservation and use communities of water from increased • Flow of Teel river, a glacier melting and spring tributary of Kharkhiraa and summer floods is in line river, which confluences to with local and central Uvs Lake does not reach government policies due to extensive use of water for irrigation of hay making, crop and vegetable growing areas during summertime. • During the snow melting and heavy rain periods induced floodwater reaches Uvs lake and local people do not benefit from this case because of lack of infrastructure for water harvesting and water conservation for regulated use of water for downstream irrigation areas • Glacier melting increases river flow, which coupled with snow melting and heavy rain induced floods, results in degradation and increased erosion of riverbeds and increases risks of local communities along the river. • As public survey results also show (Appendix C) local communities are strongly supportive of the Kharkiraa-Teel river diversion and storage project for river water conservation for irrigation.

1. Outcome of consultations

352. Participants were thankful to gain knowledge about the environmental and social impacts of the project and the relative laws and policies. Also provided to the participants was the explanation of the project grievance redress mechanism (Chapter VIII), and contact details of people who can answer other questions about property appraisal etc.

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VI. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATIONS

353. The assessment of potential impacts of the ASDIP in the project areas in the Uvs Aimag centre of Ulaangom and Umnugovi soum centre, the Bayan-Ulgii centre of Ulgii and Deluun soum centre, and Jargalant the centre of Khovd Aimag is structured by the three development phases define by: a) Pre-construction; b) Construction; and c) Post-construction operation,

354. This assessment structure is carried forward to structure the environmental management plans (EMP) for the Aimags. To prevent redundancy, the assessment of potential impacts that are common to Aimag / soum projects are identified and discussed together. This enables clearer assessment and discussion of potential impacts of ASDIP investments, and the ability to highlight specific project area impacts.

A. Benefits to the three Aimag centres and two soum centres

1. Improved standard of living and family health.

355. A major comprehensive benefit of Tranche 1 of the ASDIP is the significant increase in standard of living of residents in the target Aimag centres and soum centres that will arise from the improvements to the diverse array of urban infrastructure. The attributes of the improvements to the standard of living and family health that will be realized by the affected communities in the Aimag centres and soum centres are as follows: 1. in Aimag centres, access to modern, energy efficient apartments to replace traditional ger housing will lead to immediate improvements to in-house air quality (i.e., reduction in PM2.5 from coal & wooding), and a reduction in gastrointestinal-related illnesses from replacement of pit latrines with modern toilets and central wastewater collection. 2. expanded piped potable water supply; 3. new and improved central wastewater collection and treatment; 4. expanded and improved central hot water and heating; 5. improved electrical power supply; 6. better organized solid waste collection including cleaned & better contained landfills; 7. improved flood control and drainage; 8. improved utility services to community facilities such as schools, hospitals, community centres; and 9. improved surface water quality from improved wastewater treatment. 356. The second major benefit of the ASDIP will be caused by the agricultural component of the project which will introduce modern agrobusiness technology and practices at the Aimag centres and soum centres which are defined by the Agroparks (e.g., Disease Free Establishments, Veterinary services, modern meat processing facilities, Research and development centres), and Irrigated fodder farms. Major positive impacts of the agriculture component will be:

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1. introduction of modern meat processing, handling, and storage technology (i.e., FAO & WHO standards), and waste management thereby preventing or reducing environmental pollution from present slaughtering and meat processing practices.

2. from #1, increased quality of meat produced for domestic and international markets thereby improving livelihood income of herders and exporters from meat exports to previously inaccessible lucrative international markets;

3. from #2, decreased size of livestock herds and therefore decreased overgrazing of the pastures in the Aimags leading to increased pasture quality and restored habitats;

4. from #3, decreased livestock methane emissions, and increased carbon sequestration in restored pasturelands thereby significantly reducing the carbon footprint of the project affected areas of western Mongolia.

B. Impacts and Mitigations

1. Pre-construction phase impacts & key activities

357. The primary impact of the pre-construction phase of the project is land acquisition and potential involuntary resettlement. Minor land acquisition and possible resettlement will occur in urban areas as a result of the construction of new and improved infrastructure including utility trunk lines, roads, buildings, and riverbank and dyke improvements. Required land acquisition and resettlement of affected persons are summarized in Table 60.

Table 60. Estimated land acquisition and resettlement (LAR)

a. Water availability

358. A key activity of pre-construction phase and as part of the detailed design of Tranche 1 is to confirm available data and current understanding of surface and groundwater availability for the water consuming project components such as the irrigation schemes that will supply the fodder farms, the meat processing facilities, and planned increases in potable water supply to the urban communities. The follow-up assessment of water availability at the project sites must be conducted to clarify local surface and groundwater availability particularly at low flow periods to:

(i) ensure that the water consumption requirements of the project are met and sustainable;

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and

(ii) that downstream uses/users of the water resources will not be negatively affected by the project.

359. The estimated discharge of the rivers that will provide irrigation water for the 200ha and 500ha fodder farms is summarized Table 40. The estimated seasonal flows (m3/s) of the four rivers at the extraction locations for the fodder farms provided in Table 40 will be confirmed at implementation. Seasonal river flow at the fodder farms will form part of the monitoring program of the environmental management plan (EMP) for Uvs and Bayan-Ulgii Aimags which has also been identified as a performance monitoring indicator of the pre-designing, construction and operational phases of both Aimag EMPs. The follow-up river flow measurements and monitoring will ensure that the irrigation water requirements of the 500ha and 200ha fodder farms of 0.625m3/sec and 0.250 m3/sec, respectively will be met. Similarly, the groundwater requirements of the different investments in the Agroparks (e.g., meat processing facilities, DFEs) must confirmed. The design and initiation of the follow-up surface water flow measurements at the fodder farms will be completed at detailed design by the Project Implementation and Supervision Consultant (PISC). Similarly, the seasonal sampling of surface water flow identified in the EMPs will be finalized at detailed design. Together the surface water flow measurements will confirm sustainable flow at and downstream of the fodder farms. In conjunction with the ADB the Project Implementation and Supervision Consultant (PISC) will determine whether a separate hydrogeological firm will need to be hired for the river flow analyses.

360. Assessment of minimal seasonal discharge of the rivers that will receive the upgraded treated effluents from the new WWTPs is also important. Even though the treated effluents of the new WWTPs in the Aimag and soum centres, and in the Agroparks will meet the most stringent targeted effluent quality standards (see section III), the low flow of the receiving rivers must be clarified to ascertain that ambient water quality standards will be met below the treated effluent discharge points, and how far downstream of effluent mixing zones of the rivers will extend.

b. Finalize detailed designs

361. A major activity of the pre-construction phase will be the completion of the detailed engineering designs of all infrastructure and agrobusiness project components. The detailed designs will provide any new insight into potential impacts of the project components that could not be clarified with the FS designs. The IEE will be updated as necessary with the detailed designs of the components.

c. Updating EMP

362. The final activity that will occur during the pre-construction phase will be updating the EMPs for the three Aimags. This standard activity occurs to reflect the detailed designs of the infrastructure and agrobusiness components of the project to ensure that all potential impacts and required mitigation measures of the final project design are managed completely and properly.

Potential Impacts – Construction Phase

363. The project components of Tranche 1 are not in, near, or will impact protected areas or critical wildlife habitat (SPS 2009) and are not inhabited by rare or endangered wildlife. Two initial project sites with all three of these ecologically sensitive characteristics were located in Mankhan

190 soum and Myangad soum of Khovd Aimag. However, both soum centres were screened out of Tranche 1 by the environment team.

364. The potential impacts of the construction of new and upgraded infrastructure (i.e., utility trunks lines [potable water, hot water, electricity, communications, wastewater], roads, buildings, drainage, riverbank and dyke improvements, water supply canals) for the urban areas and for the agrobusiness components outside the urban areas will focus on short-term the disturbances and impacts that are normal and expected from civil works activities. These construction phase impacts and disturbances are summarized below.

d. Common impacts of urban and rural infrastructure development

365. Common impacts and disturbances caused by the civil works in the Aimag centres and soum centres will consist of reduced and/or blocked public movement & access, disrupted utility services, disrupted business and recreation activity, noise & dust caused by earthworks, heavy truck movement, & equipment use, homestead soil pollution caused by equipment operation and maintenance, risk of public and worker accidents & injury, increased traffic congestion & traffic accidents, land erosion and downstream sedimentation of Aimag/soum rivers, and temporary localized drainage and flooding problems. Solid waste and domestic pollution from temporary worker camps can occur, as well as potential communicable disease and community problems caused by migrant workers. These short-term impacts and disturbances will occur at different levels of magnitude depending on the civil works activity and location in Aimag centre or soum centre.

366. The construction phase is expected to cause the number of vehicles and traffic in the urban areas to increase at peak periods near work sites. The increased traffic will be from trucks carrying building materials such as loads of aggregate, wet and formed concrete, wood, brick, pipe, glass and other infrastructure and building construction materials. Estimates of amounts of materials that will be transported into the three Aimag centres and the two soum centres must wait until the detailed design phase. The magnitude of the increases in noise and dust levels that will occur are also not possible to predict at this time. However, based on the site visits to the project areas, dust created from construction activities and truck traffic could be high given the dryness of the summer period, and the commonly high winds experienced especially at the two soum centres.

367. The outbreak and subsequent global spread of COVID-19 since December 2019 poses new risks and management implications for most regions and projects. For the current project, the extent of COVID-19 was reviewed and requirements for a COVID-19 health and safety plan are included in the EMP. Measures include the screening of all project personal prior to admission to project sites and on-site measures for sanitation, emergency response, and the provision of personal protective equipment.

i. Common mitigation measures

368. Construction management measures to mitigate common potential impacts of the ASDIP are presented below. The mitigations follow standard construction management best practice, and are consistent with World Bank/IFC Environmental Health & Safety (EHS) Guidelines (2007) for Infrastructure (i.e., water & sanitation, telecommunications, elements of health and tourism facilities, roads, and waste management). The mitigation measures are detailed further in the EMPs for the Aimags.

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1. All open excavations should be fenced, and trenches covered where public walkways or vehicles must cross. 2. A cultural chance find management plan must be in place for cultural artifacts and property. 3. Extra protection against possible physical disturbance of the cultural centres in all five urban centres must be implemented. 4. Regular use of wetting agents must be employed along all sections of the roads that are undergoing civil works, or used by construction vehicles to minimize dust. 5. All construction vehicles and equipment should be maintained in proper working order, and not operated at night if possible to minimize noise. 6. Speed limits should be posted and adhered to by construction vehicles, and the public. 7. Where possible construction vehicles should use different access roads or dedicated temporary lanes to access construction areas to minimize interference with road use by the public. 8. Trees and other vegetation along all road corridors must be protected. All tree removal must be minimized. 9. All trees removed for any infrastructural component must be replaced with 3 three trees for each tree removed. 10. Present and past land use inside the khashas of the Bags where ger housing will be redeveloped into apartments and TUs should be reviewed to assess whether excavated soils are contaminated. Contaminated spoil such as the soil in and around existing khasha pit latrines should be removed and disposed at the existing landfills or locations approved by the provincial environment department. 11. Berms and/or silt curtains should be constructed around all excavation or trench sites and along exposed sections of surface waters and flood/drainage ditches to prevent soil erosion and surface water sedimentation (see below). 12. Local workers should be used as much as possible to prevent or minimize influx of migrant workers, and incidence of social disease and community unrest. 13. The temporary worker camps must have adequate domestic waste collection facilities and sufficient pit latrines that are located away from public areas and surface waters. 14. Dedicated fuel storage areas must be established away from khashas and public areas, and marked clearly. 15. To minimize the impact of construction and civil works activities on the public and workers the existing Mongolian Worker, Occupational, Health, and Safety (OHS) legislation or policy should be followed. Additionally, the equivalent World Bank (IFC) Environment, Health, and Safety (EHS) Guidelines (2007) for Occupational Health and Public Safety should be followed to supplement Mongolian directives. 16. Borrow pits and quarries used for ASDIP must be pre-approved by the Aimag provincial environment departments. The quarries and pits that are used must be fenced during operation, and restored to a safe and vegetated condition after construction phase use is finished. 17. Aggregates (e.g., sand, gravel, rock) that are transported to and from all construction sites in the 5 project areas by truck must be covered. 18. Prolonged use of temporary sand or other aggregate piles along khasha roads in the Aimag Bags in which ger housing will be upgraded should be avoided, or covered, or wetted regularly to prevent dust and erosion. 19. Sand extraction from all rivers and local creeks must not occur. 20. Storage of bulk fuel should be on covered concrete pads away from khashas and worker camp(s). Fuel storage areas and tanks must be clearly marked, protected and lighted. Contractors should be required to have an emergency plan to handle fuel and oil spillage.

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21. Safety measures for COVID-19. Prior to the arrival of external project personnel (e.g., workers and consultants), the PMO will implement safety procedures and screening to ensure that all staff are tested negative for COVID-19 and do not pose a threat to local human populations. This will include: (i) requirement that all project personnel is tested negative for COVID-19, (ii) external workers and consultants confirm their COVID-19 – free status to PMO prior to arrival, and (iii) project safety and sanitation measures are distributed to all personnel and are included as contractual requirements for all staff.

e. Specific construction phase impacts and mitigations

All three Aimag centres (Ulaangom, Ulgii, & Jargalant)

Demolition of khasha houses & site remediation

369. For the khasha owners who decide to participate in ger redevelopment, the demolition of their traditional khasha homesteads and any out-buildings are not expected to create any pollution problems. There are no toxic materials in traditional khasha buildings such as asbestos. Traditional ger houses are made predominantly of animal fir, whereas non-traditional buildings are made of wood. Demolished materials that can be recycled will be salvaged with all other building materials transported and disposed in landfill sites approved by the MCUD. In particular, residual coal supplies, and khasha stoves and heaters and other appliances that cannot be sold by owners to non-participating khasha households will be collected and disposed in department of Environment - approved landfill sites.

370. Decommissioning of homestead pit latrines will follow the procedures of the ongoing ADB On-site Sanitation Project in Ulaanbaatar29. Pit latrine buildings will be disposed along with homestead buildings. The pit latrine enclosures will be broken and then the entire pit filled in with soil to allow the waste to completely decompose naturally. Adjacent soil will be spray-disinfected with a bactericide using the same techniques underway with Projects 1 and 2 of the GADIP30. All soil that needs to be excavated and removed from site will be transported to landfill sites approved by the Department of Environment.

At three Aimag centres and Umnugovi and Deluun soum centres

Safe and sustainable water supply

371. The households and businesses of all 5 project areas rely on obtaining drinking water from nearby kiosks, and transporting the water primarily by foot back to homes and businesses. Often children of families are responsible for fetching and carrying the family water to the home.

372. It is critical that this single domestic activity is not disrupted when the infrastructure works and ger housing redevelopments occur. Children and mothers must be able to walk safely and freely near the construction sites while laden with the daily/weekly supply of water. Existing pedestrian routes must be protected with barriers between all construction sites and walkways. Temporary, protected routes must be created for water transport where necessary to protect the public. Similarly, the supply of potable water to the community ger distribution kiosks must also not be interrupted from construction activities.

29 ADB, 2016. Managing Soil Pollution in Ger Areas Through On-site Sanitation Project, Grant Project 49113-001 30 Ger Area Development Investment Program, Bayankhoshuu, Selbe, Denjiin 1000, and Dambardjaa subcentres, Ulaanbaatar.

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Batch concrete and asphalt plants

373. Temporary batch plants for asphalt and concrete may be used for the infrastructure works in the urban areas. Batch plants potentially act as point sources of environmental and aesthetic pollution for the affected sites and local community. The issues arise from potential wind and water erosion (dust & sedimentation) from stockpiles of the raw materials of sands and other aggregates, chronic noise and public safety risks from batch processing and heavy truck traffic to/from the plants. Improper handling and storage of raw materials can also cause soil and surface water pollution from the curing chemicals in cement and hydrocarbons from (e.g., oil & thinners) for asphalt.

374. Best practice methods must be conducted to manage the creation, operation, and ultimate decommissioning of temporary batch plants. The contractor under supervision of MCUD must follow international guidelines stipulated by the World Bank (IFC) EHS Guidelines for 1) Cement & Lime Manufacturing, 2) Construction Material Extraction; and 3) Retail Petroleum Networks. The recent USEPA (2014) Code of practice Concrete batch processing can also be consulted.

Disruption of utility services

375. The extensive rehabilitation and expansion of infrastructure and utilities in the Aimag and soum centres will undoubtedly cause periods of utility outages for residents and businesses. Where possible temporary auxiliary or alternate utility service will be supplied to minimize the disruptions to the community. Scheduled power outages will be conveyed to affected community at least 48 hours ahead of outage.

Ulaangom

Flood prevention dyke improvements along levee lake

376. The 3-4m, 4km earthen dyke southwest of the city will be upgraded with concrete slabs to prevent seasonal flooding of Ulaangom from stream-river runoff from the mountains in the west. At the north end of the dyke a 1050m, 5-6m pond embankment will be constructed to create a small lake for local drinking water and irrigation. It will need an estimated 3,050m3 of rock from a local quarry. Extra care must be taken to ensure that the berms and / or silt curtains are placed between the dyke work areas to prevent erosion and siltation of the levee lake.

Umnugovi soum centre

Dumpsite rehabilitation

377. Tranche 1 will include a detailed needs assessment of solid waste management including existing dumpsites for all five urban project sites. The assessments will include water table depth and a groundwater quality assessment, and an initial clean-up and fencing of the dumpsites to stop ongoing wind-blow of garbage. The groundwater assessment is particularly important at Umnugovi soum because the Umnugovi dumpsite is being excavated by the local authorities presumably to contain the garbage without regard to the depth of the water table and groundwater which the soum depends on for drinking water. The depth of the water table and groundwater quality needs to be determined to ensure that groundwater is not being contaminated by the garbage.

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Ulgii

Riverbank improvements to prevent flooding

378. A 1,250m section of the Khovd riverbank in Ulgii will be rehabilitated and improved to prevent recurrent flooding of the city during spring high flow periods. Similar, to the levee lake in Ulaangom, Care must be taken to install silt curtains and temporary earthen berms between the river and all riverbank works to prevent erosion and sedimentation of the river.

2. Operation phase

a. Upgraded and new infrastructure

Redeveloped Ger Housing

379. As indicated above the significant benefit of the redeveloped of ger apartments in three Aimag centres with modern central heating and bathroom facilities will be a major increase in the standard of living of the participating families. The energy efficient apartments and removal of the inefficient coal/wood burning stoves will reduce significantly the carbon footprint of the family khasha.

380. There are potential issues and impacts of the densified apartment living that could detract from the increased standard living. Potential social-family issues with the operation/occupancy of the new apartments could arise from the increased density of family and possibly extended family households. Other potential issues relate to successful affordable operation and maintenance of the upgraded, modern utility services, energy efficient building technologies.

Sustainable potable water supply

381. The potential impact of the project is creation of water deficit situations from too much consumption. The planned expansion of potable groundwater supplies to the Aimag centres, and in particular, the soum centres from additional pumps and/or wells via expanded supply networks must be sustainable. At the detailed design stage the seasonal availability of potable water whether groundwater or surface water needs to be examined to confirm sustainability of the sources both in terms of quantity and quality.

Air emissions

382. Planned air emissions (CO2, NOx, SOx, and PM) from the four new agropark heating plants, pursuant to the recent Mongolian and international emission standards identified in Table 39 (b) indicate that the emissions from the new plants will be better than the emissions from existing plants in the Aimag centres. Moreover, the recent Mongolian emission standards are more stringent that the IFC EHS (2007) emission standards except PM standard. The net lower emissions of the new heating plants is good.

383. However, a potential impact of the project is increased air pollution that could result from the planned expansions of hot water heating networks in all three Aimag city centres (Ulaangom, Ugii, and Jargalant). Improvements to the quality of the coal-fired heating plant emissions are not planned for Tranche 1, and the present heating plants currently do not meet national or international emission standards. This means the ASDIP will need to consider upgrading the

195 emission treatment technologies of the existing heating plants in the three cities to meet the recent national and international emission standards (Table 39 (b)) in Tranche 2 or 3.

b. Agrobusiness components

i. Sustainable water supply

(i) Surface waters

384. The project will develop four 200ha and 500ha fodder farms that will be irrigated with local river water. The 200ha and 500ha fodder farms will require an estimated average 0.250m3/s and 0.625m3/s of water diverted from the adjacent rivers during the important growing period of May – September. The river flow available to the four fodder farms was estimated (Table 40) from river flow data collected from government flow gauge stations located either upstream of, or on adjacent tributaries of the rivers.

385. The fodder farm design specialists assert that the available river flow data indicate that sufficient river flow will be available for the downstream fodder farms. However, at implementation stage the flows of the source rivers at the actual sites where water will be diverted to irrigate the fodder farms must be confirmed to ensure sufficient river water is available between May and September for the fodder farms, and for other existing downstream water users of the rivers. For example anecdotal information obtained from the public consultations on environmental issues of the project indicates that the source river (Teel river) for the Tarialan soum fodder farm dries up in summer below the planned location of the fodder farm. All public consultations were made with local population and the reported results must be taken into account carefully because: (i) Kharkiraa river plain is a very large plain at the exit of the Kharkiraa mountain pass; the alluvial cone defined by Kharkiraa river is more than 1,000km2; (ii) it is only one source of information; the location of the IP in the Kharkiraa river plain has been discussed extensively with local government as well as directors of crop farming companies which are working in Baruunturuun (where there is a significant irrigated area), have some experience in the field, and have their factories in Ulaangom; according to these sources of information the site selected is the best in the area with no water availability issue; (iii) some of the tributaries of Kharkiraa river reaching Uvs lake dry up during some part of the summer, the reasons are smaller water flows during some weeks, evaporation and ground infiltration; first of all this is not assessed as a significant water availability issue by the TA team experts since the main issue identified is that the water is today not well managed; this will be dealt with under the project through the irrigation component and the water conservancy component; secondly according to other sources this is not the case of Teel river.

386. Regarding downstream users: arable farming is very little developed in this part of Mongolia, and there are in general very few surface water users. For the selected IPs there is only one case where there are downstream users, it is in Umnugovi (Uvs aimag). As mentioned in the response to the first point, preliminary assessment of impact of proposed IP for water availability for downstream user has been one of the main criteria used by the TA team to select the location, and has conducted to the drop or relocation of some initially envisioned IP. For the case of Umnugovi it has been assessed that given the needs of the few downstream users and the capacity of the river, it is not envisioned as an issue. Exactly number of users there are unknown as well as the size of irrigated fields since this information is not monitored by the local government, but in any case those are very small-scale activities, and field observation is tells those are negligible. For the rest of the proposed IP there is no downstream users identified.

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(ii) Groundwater

387. Some of the investments of the agroparks that will be developed by the project such as meat processing plants, and Disease Free Establishments will require groundwater to operate. The groundwater requirements of the different facilities have been determined. The Water Resources Division (WRD) of the Ministry of Environment and Tourism (MET) conducted a study (2020) of available groundwater resources for ongoing and future development in Mongolia. The study indicated abundant groundwater resources exist in western Mongolia including the three project Aimags of Uvs, Bayan-Ulgii, and Khovd.

388. Similar to surface waters, at implementation stage groundwater availability at the finalized sites for these agropark facilities needs to be confirmed to ensure adequate groundwater exist for the project and for other users. And as indicated above groundwater sustainability must also be confirmed for the planned expansion of potable water supplies in the Aimag and soum centres as indicated above.

ii. Impact of Tarialan irrigation schemes on Uvs Lake Strictly Protected Area

389. The unique endorheic ecosystem of Uvs Nuur Lake and peripheral wetland has been shaped in part over the millennia by the seasonal discharges of all rivers emptying into the lake. The unique ecosystem and constituent fauna and flora is why Uvs Lake has been designated as a Strictly Protected Area by the government. Thus, diversion of water from a river discharging to the lake could constitute a potential impact on this area conservation significance as per SPS (2009). However, the scope of the two types of irrigation schemes at the FS stage, along with information obtained on the lower Kharkiraa-Teel river basin suggests that the two irrigation schemes will not affect Uvs lake ecosystem as follows:

390. Firstly, the results of the public consultations in Tarialan soum, and a national hydrologist who has studied the lower Teel river indicated that the lower Teel river dries up during summer and does not reach Uvs lake. Thus, if the Teel river currently does not discharge into the Uvs lake during dry season, then the diversions of river water for the two irrigation schemes cannot present an impact to the lake.

391. Secondly, the planned diversion and storage of 3% of flow from April-August for the Kharkiraa-Teel river is a very small volume relative to the main stem flow (Table 11). Similarly, the estimated required diversion of 0.625m3/s for the 500ha irrigation scheme is about the average monthly 3% diversion planned for the Kharkiraa-Teel irrigation scheme. Thus, information at the FS design stage of Tranche 1 indicate that the potential impact of water extractions for the two Tarialan irrigations schemes on the Uvs Lake are either nonexistent or negligible.

C. Cumulative or Induced Impacts

392. A major positive cumulative impact of ASDIP is increased standard of living of affected communities caused by the comprehensive improvements to urban infrastructure and services. Moreover, the significant induced impact of redeveloped ger housing is the effect of improvements to individual and family health on individual and family prosperity, and ultimately strengthened ger socio-economy.

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393. Another major positive induced impact of ASDIP is the dual climate change mitigation of the future reductions livestock herds on the sequestration of CO2 into improved pasturelands, and the reduction in emissions of methane (CH4) produced by livestock.

394. In view of the need to confirm surface and groundwater water resource sufficiency at implementation phase, the only potential negative, cumulative impacts of ASDIP could arise from the water consuming components of the project. Water consumption by planned irrigation schemes could create or exacerbate low flow period water shortages for downstream, ongoing uses of the rivers such as for agriculture. Similarly, the consumption of groundwater for other agrobusiness components such as meat and product processing facilities of the Agroparks could create or exacerbate dry season groundwater deficits among other groundwater users such as household wells and agriculture.

D. Existing Facilities of Feasibility Design of Tranche 1

395. The feasibility design of Tranche 1 has identified two types of “existing facilities” (SPS 2009) which are the 3 coal-fired heating plants (HCP) and 3 wastewater treatment plants (WWTP) in Ulaangom, Ulgii, and Jargalant. The WWTPs in the three Aimag centres will be replaced or completely redesigned during Tranche 1 as part of the overall improvements to wastewater collection and treatment. The WWTPs will be replaced because the original Soviet technologies and operations of the plants are no longer functioning as originally designed with the original plant processes essentially having been abandoned. As a result, the WWTPs as they are currently operating do not meet national or IFC-EHS (2007) environmental protection standards with specific reference to treated effluent quality. Thus, the corrective actions (SPS 2009) for the existing WWTPs will become the new or completely upgraded plants that are produced by Tranche 1 of the ASDIP.

396. The planned expansion and upgrades to hot water heating networks in the three Aimag centres do not include the facilities at the heating plants other than possible upgrades to water circulating pumps at a plant. During the site visit consultations with the operators of the HCPs it was determined that the emissions of the plants do not meet national emission standards, and therefore do not meet IFC-EHS (2007) emission standards. Required upgrades to the HCPs will be assessed at the detailed design stage of Tranche 1 for implementation in Tranche 2. The required upgrades for the plants determined at detailed design stage will become the “corrective actions” (SPS 2009) for the plants that are implemented during Tranche 2.

E. Climate Change

397. The ASDIP will contribute to the climate change mitigation and adaptation agendas of the ADB, Green Climate Fund (GCF), and the government through: (i) adaptation by addressing climate change vulnerabilities of aimag and soum centers through the improved climate resilient infrastructure; (ii) adapting the animal husbandry sector to the expected reduction in productivity of Mongolian rangelands due to climate change; (iii) mitigation through carbon sequestration resulting from restored rangelands and through reduced methane emissions; (iv) better management of water resources; (v) mitigation opportunities in the urban sector through improved energy efficiency and the uptake of renewable energy in aimag and soum centers. The specific impacts from ASDIP are detailed in the separate climate change and mitigation assessment of the Funding Proposal (FP) for the GCF. From the FP-GCF the key specific impacts of the ASDIP are summarized as follows:

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- 369,200 direct beneficiaries from adaptation (calculated as the population of the aimags targeted by the program)31. The population in the aimags will benefit through more resilient cities, improved grasslands, reduced air pollution from dust, and enhanced water resource availability. - estimated total mitigation of 112.4 million tCO2e comprised of: o (i) 94.0 million tCO2 in direct emission reductions over the investment lifetime from enhanced soil carbon sequestration. The estimate is based on a conservative coefficient derived from ADB studies and an assumption of a slow process of restoring equilibrium in soil carbon. The computations provided in the Climate Change Assessment of the FP-GCF is based on the IPCC methodology32; o (ii) 17.2 million tCO2e in direct emission reductions from reduced methane and nitrous oxide emissions resulting from a reduction in herd sizes. The Climate Change Assessment provides the calculation method applied; and o (iii) 1.1 million tCO2 in direct emission reductions over the investment lifetime from urban energy efficiency and renewable energy. 398. The separate Climate Change Assessment Linked Document (CCA-LD) for the ASDIP was prepared based on the climate change assessment of the FP-GCF, along with the climate change adaptation cost estimates for the infrastructure components provided by the project engineering team.

Estimated cost of climate change adaptation and resilience

399. The estimated marginal increase in the cost of some infrastructure investments at the Aimag and soum centres of Tranche 1 for climate change adaptation/resilience is estimated at USD $309,035. for urban drainage, $4,851,143. for flood control, $202,900. for solid waste management, and $89,647. for water supply development in the soum centres.

VII. ANALYSIS OF ALTERNATIVES

400. The major alternatives to the project design of Tranche 1 focused on: (i) the “no Tranche, alternative; (i) deletion of either the urban infrastructure or agrobusiness component groups at an Aimag or soum centre; (iii) the aggregated versus disaggregated Agropark constructs; (iv) development of coal-fired heating plants; and (v) placement of some agrobusiness components.

401. The “no tranche” alternative was dismissed quickly because the improvements to the standard of living and health of project communities would not be realized from improved infrastructure. No agrobusiness value chain improvements would maintain the status quo of inferior quality agro-production, maintain over grazing, and not realize the climate change mitigation of net reduced tCO2 emissions from increased CO2 sequestration in restored pastureland and reduced enteric methane production from reduced herd sizes. The benefits of implementing Tranche 1 far outweigh potential negative impacts of implementing Tranche 1.

31 Source: National Statistics Office (2019) National Statistical Yearbook 2018, Table 3.5, accessed through www.1212.mn. Population figures are for 2018. 32 The ASDIP calculations are very conservative. Our estimate equals 4 tCO2/hectare over the project’s lifetime. The recently approved GCF project in Kyrgyz Republic (FP116) also contained a rangeland management component, with an estimate mitigation of more than 23 tCO2/hectare over the project’s lifetime. 199

402. Deleting the urban infrastructure components from a centre would not improve living conditions in the centres which would dissuade investment into the agrobusiness components. The deletion of the agrobusiness components would result in the same negative impact of the “no tranche” alternative.

403. The initial plan to disperse the Agropark components (i.e., animal storage, meat processing & storage, laboratories, veterinary services, and agro-production plants around the Aimag and soum centres instead of in one place (a park) with Disease Free Establishments to house most facilities was abandoned because the cost of supplying required infrastructure including waste management was much greater than at a single park location.

404. The decision to develop coal-fired facilities (i.e., heating plants) is based on the following. The proposed small scale heating plants represent a critical component to ensure green paradigm shift potential of the program and the creation of low-carbon value chain. With the absence of feasible alternative, they represent at this stage the “cleanest” options which eventually lead to emission reduction.

405. The processing in the new agro-parks replaces processing in other locations, which requires heating, provided by other, less efficient heating plants. Therefore, also these new heating plants in new agro-parks, that at the first sight may imply an additional emission source where baseline emissions may appear zero, in fact replace significant baseline emissions in other processing locations, and therefore result in emission reductions.

406. The proposed plant emissions at full capacity of Tranche 1 is 20,823 tCO2/yr; against the baseline emissions corresponding to full capacity Tranche 1: 33,317 tCO2/yr, that is an emission reductions at full capacity Tranche 1 of 12,494 tCO2/yr. While the yearly tons of carbon dioxide equivalent per year projected for the first Tranche is 563,000 tons.

407. The new heating plants following MNS 5043:2016 will be a cleaner alternative to connecting to older systems that do not meet the newer standards. The ASDIP will also involve a number of programs that will reduce building energy consumption and install renewable energy systems that will significantly reduce GHG emissions from the project area:

a. 10MW of rooftop PV solar systems b. 1000 solar street lights c. Improved insulation for over 200,000 m2 of buildings that will reduce energy consumption from 300 to 140kWh/m2 per year. d. Introduction of heat metering and unit rate billing in Ulaangom to provide incentives for energy conservation and allow for direct calculation of benefits from building energy improvements to existing buildings.

408. Changes to the locations of the some Agrobusiness components (i.e. entire Agroparks, and irrigation perimeters) occurred to reflect growing degree days, perceived water sources, and impacts on sensitive ecological resources such as Khar Us Nuur National Park and critically endangered wildlife habitat located in the Saiga Antelope Game Reserve in Mankhan and Myangad soums, respectively in Khovd Aimag.

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VIII. INFORMATION DISCLOSURE AND GRIEVANCE REDRESS MECHANISM

A. Information Disclosure

409. The extensive household consultations and social surveys conducted for the ASDIP to clarify the needs, preferences, and understanding of ASDIP are reported separately as part of the social and financial dimensions of the project. These consultations set the stage for continued information disclosure to the khasha owners and affected stakeholders/people (AP) throughout the affected areas of the 5 Aimag and soum centres. The separate public consultations for environment reported above supplement the extensive social data collections.

410. In addition to regular renewal and updates to the socioeconomic information collected above, the IEE will be easily available to all affected residents and stakeholders contacted during project preparation, in written and verbal forms, and in local language. The Executive Summary of the IEE will be translated to Mongolian and distributed to all APs. The IEE will be available on the web site of the MCUD/ALAMGac which is the executing Agency (EA) of ASDIP as well as the web sites of MOFALI and AMC-DBM, and web site of the MET at their respective UB and Aimag centre offices. Continuing from the completed public consultations on the feasibility design of project, information on the project, and project implementation will be readily available to all residents and affected stakeholders starting in pre-construction phase and extending through construction and into operational phase of the project.

411. Similarly, all ASDIP reporting with specific reference to stakeholder consultation minutes, environmental monitoring, and reports on EMP implementation released by the MCUD/ALAMGac and MOFALI/AMC-DBM should be available at the same offices and web sites. The IEE will also be available in the Aimag project offices (APO), and on the ADB web site. During implementation, and after completion of the infrastructure and agrobusiness components all environmental and EMP reporting submitted by the EA (MCUD) will also be available on the project and ADB web site.

412. As a means to determine community involvement and interest in the ASDIP, and to learn from the level and type of interests, the type and frequency of information and reports request by the community will be monitored. This includes environmental monitoring reports prepared by the UB-PIU, and the APOs. The use of the web sites, i.e., number of web site “hits”, and document requests should be monitored.

B. Grievance Redress Mechanism (GRM)

413. A project-specific environmental grievance redress mechanism (GRM) has been established to receive, evaluate, and facilitate the resolution of AP’s concerns, complaints, and grievances about the environmental performance at the level of the project. The GRM will also entertain social issues that may be identified by stakeholders, however, the social safeguard team established a separate GRM for social issues due to the diversity of project components and locations. The GRM (Figure 52) will aim to provide a time-bound and transparent mechanism to voice and resolve environmental, safety, and social concerns linked to the project. The GRM is targeted for all stakeholders, potentially affected persons, and construction workers who work on the project. All project agencies and affected stakeholders will be aware of the GRM and will know how to inform the PMO in UB and the Aimag POs (APO) of any complaints or issues of project.

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414. The APOs in the Aimag centres shall establish and maintain the project GRM to receive and facilitate resolution of any social or environment-related concerns or grievances about the project. The APOs in the Aimag centres will assign fulltime GRM staff at the soum centres of Umnugovi and Deluun who will be responsible to implement the exact same GRM at the soum levels. The GRM will address affected people’s issues promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to all stakeholders at no cost and without retribution. The GRM does not impede access to the national legal system.

415. The GRM will be introduced to affected communities during follow-up community consultations and made publicly available to stakeholders at the three Aimag and two soum centres. In the event of a grievance issue, up to three stages will be implemented at each Aimag and soum centre as follows.

(i) Stage 1 (maximum 7 days): If a concern arises during construction, the affected person(s) may raise the issue with the contractor, PIU-GRM staffer at Aimag project office, Project Implementation & Supervision Consultants (PISC) or community representatives. All agencies will be aware of the GRM and will be requested to immediately report any incidents to the PIU GRM staff. If the issue is resolved directly between the affected person(s) and contractor, no follow-up is required. But the log/record shall be saved in the GRM logbook at the PIU office in either Aimag centre or soum centre.

(ii) Stage 2 (maximum 15 days): If the issue is not resolved at Aimag project offices (APO), the issue will be forwarded directly to the PMO in UB One Stop Shop where the ALAMGac/MCUD or MOFALI, or AMC-DBM intervenes. The UB-PMO One Stop Shop will reply within two weeks and keep a written record of the whole process.

(iii) Stage 3 (maximum 15 days): If the issue is still not resolved, the UB-PMO will, if agreed by the affected person(s), arrange a meeting with MCUD, and relevant community representatives to identify a solution. If the issue still cannot be resolved it will be referred to the relevant higher level authorities. The MCUD with support from PMO may report the process to ADB at any of Stages 1–3, but will do so immediately if Stage 3 is reached.

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Figure 52. Grievance Redress Mechanism

Affected person

Field Level: Contractor, PIU-Aimag project Yes office designated focal person Within 7 days (environment, safety, or st Grievance redress 1 level social issue), community and record keeping Grievance representatives

PMO: Yes ALAMGac (One Stop Shop) Within 15 days nd Designated persons of Grievance redress 2 level and record keeping Grievance ALAMGac designated focal person (environment, safety,or

social issues), & ADB contact.

MCUD Level Yes Within 15 days rd Designated focal person Grievance redress 3 level Grievance (environment, safety, or and record keeping social issues), MCUD/PMO,

community representatives

MCUD - Ministry of Construction & Urban Development, ALAMGac – Land management, Geodesy & Cartography

416. Community - Public disclosure that started with completed pubcons will continue through pre-construction and construction phases as part of community awareness of the GRM. Wide public awareness campaigns will ensure that awareness on grievance redress procedures is generated through the campaign. The project management office (PMO) designated focal person (environment and social issue) and community development consultants will conduct community- wide awareness campaigns to ensure that poor and vulnerable households are made aware of grievance redress procedures and entitlements, and will work with the IA/PIU and, project implementation and supervision consultants (PISC) to help ensure that their grievances are addressed. Clearly visible billboards must be placed at all construction sites outlining the GRM process, names of responsible parties, and contact numbers of responsible parties.

417. Affected persons (APs) will have the flexibility of conveying grievances/suggestions by dropping grievance redress/suggestion forms in one stop shops that have already been installed

203 by MCUD or through telephone hotlines at accessible locations, by e-mail, by post, or by writing in a complaints register in one stop shop.

418. Weather-protected Complaint Boxes will be placed at all constructions sites, existing social service buildings, and at community offices as a formal location for people to submit written comments/issues during construction phase. Information at al boxes will be updated contact names for the PIU, local contractor, and local implementing units. Also included at each box will be simple forms and pencils to facilitate the communication process.

419. Careful documentation of the name of the complainant, date of receipt of the complaint, address/contact details of the person, location of the problem area, and how the problem was resolved will be undertaken. The project management office (PIU) GRM officer (who will responsible for environment and social issue) will have the overall responsibility for timely grievance redresses on environmental and social safeguards issues.

1. Record keeping.

420. Records of all grievances received, including contact details of complainant, date the complaint was received, nature of grievance, agreed corrective actions and the date these were effected and final outcome will be kept by the PIU and GRM staff at Aimag and soum centres. The number of grievances recorded and resolved and the outcomes will be displayed/disclosed in the PIU offices, MCUD/ALAMGac and MOFALI/NFPUG offices, and on the web, as well as reported in monitoring reports submitted to ADB on a semi-annual basis.

2. Periodic review and documentation of lessons learned.

421. The PIU officers at the Aimag project offices with input from PMO (MCUD/ALAMGac) and AMC-DBM responsible for environment and social issues will periodically review the functioning of the GRM at each project site and will record information on the effectiveness of the mechanism, especially on the project’s ability to prevent and address grievances

IX. INSTITUTIONAL CAPACITY & TRAINING NEEDS

422. Currently there is insufficient experience and capacity for environmental assessment and management amongst project counterparts responsible for the implementation of the Aimag EMPs. Specifically, staff of the PMO (ALAMGac), AMC-DBM, and the Aimag project offices (APO) require capacity development and training. The PISC of Tranche 1 will develop and deliver training courses to the assigned environmental specialists of the PMO, AMC-DBM, and APOs The purpose of the course(s) is to strengthen the ability of the project owner and implementing agencies to oversee implementation of the EMP by construction contractors.

1. Worker Safety Programming

423. Capacity development and training for utility operators of for example the new or upgraded WWTPs, heating plants, and water treatment plants is also part of the Tranche 1. Similarly training and capacity development will be delivered for new facilities of the Agroparks such as meat processing facilities. Of particular importance is the establishment of international-accepted worker safety training and programming at the new facilities. The requirement of operator training and safety for the facilities are part of the environmental loan assurances of the ASDIP. The safety

204 programming plan will be aligned with the emergency response plans that have been drafted for the Aimag EMPs.

424. Training on the implementation of an EMP should address two thematic areas. The first area should be principles environmental management focused on the potential impacts of subproject activities on the natural and social environment. The second area should be environmental safeguard requirements of the ADB and GoM with specific reference to the Aimag EMPs.

X. CONCLUSIONS AND RECOMMENDATIONS

425. The construction phase of the diverse array of infrastructure components require careful mitigation measures to ensure construction disturbances and impacts are minimized and managed with standard construction practice and mitigation measures. Of particular importance is that the current practice of manual transport of household water needs from local kiosks must receive maximum protection during construction phase so that no water supply to any household is disrupted for a single day.

426. The infrastructure and agrobusiness components of the ASDIP will not negatively impact protected areas, critical wildlife habitat, or rare or endangered wildlife. This was ascertained with the early screening and removal of the Mankhan soum and Myangad soum sites in Khovd Aimag which contained all three sensitive ecological characteristics, and the determination that the feasibility designs of the two types of irrigations schemes planned on the Kharkiraa-Teel river in Tarialan soum, Uvs Aimag will not impact the Uvs lake protected area.

427. In support of reported abundant groundwater resources and sufficient surface water resources, water resource availability will be confirmed at implementation to ensure sustainable surface and groundwater water resources are available for all users in the project areas.

428. The Aimag EMPs developed for ASDIP provide impact mitigation plans, environmental monitoring plans, and specify the institutional responsibilities and capacity needs for the environmental management of ASDIP. The EMPs will need to be reviewed and updated at the detailed design phase to ensure that EMPs fully addresses the potential impacts of the final project component designs.

429. The IEE concludes that the description of the feasibility designs of Tranche 1 of the ASDIP combined with available information on the affected environments is sufficient to identify the scope of potential environmental impacts of ASDIP. Providing significant changes do not occur to the design of one or more of the ASDIP components, that information on water resources is obtained at detailed design, and that new sensitive environmental or social receptor data are not discovered, the ASDIP will remain Category B for environment and will not require further detailed environmental impact assessment (EIA).

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APPENDIX A: ORIGINAL RAPID ENVIRONMENTAL ASSESSMENT OF THE ASDIP

URBAN DEVELOPMENT

Rapid Environmental Assessment (REA) Checklist

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APPENDIX B: NATIONAL QUALITY STANDARDS RELEVANT TO ASDIP

Code Standard

MNS 6298:2011 Boiler Emissions Guidelines: The Permissible Level of Air Pollutants from Power and Heating Plants.

The Permissible Level of Air Pollutants from Operations of Water MNS 5919:2008 Heating and Steam Generating Facilities at Power and Heating Plants

MNS Environmental Protection: Rehabilitation of Eroded Land/Category 17.5.1.18:1983 of Eroded Land.

MNS Environmental Protection: The General Requirements for 17.5.1.19:1992 Rehabilitation of Eroded Lands

MNS 3473:1983 Environmental Protection. Land, Land Use and Terms and Definitions

MNS 17.5.13:1980 Environmental Protection: Rehabilitation of Eroded Land, Terms and Definitions

MNS The System of Standards for Environmental Protection and Basic 17.0.0.06:1979 Rules

MNS 5914:2008 Environmental Protection: Rehabilitation of Eroded Land, Terms and Definitions

MNS 4585:2016 Air Quality, The General Technical Requirements

MNS 3383:1982 The Terms and Definitions of Pollutant Sources for Atmosphere

MNS 5885:2008 The Permissible Level of Pollutant Substance to Air/General and Technical Requirements

MNS 3113:1981 The Technical Requirements for Determination of Air Emissions MNS 17.2.3.16:1988 Guidelines for Monitoring of Air Quality in Urban Settlements

MNS 6063:2010 Air Quality: Permissible Level of Pollutants MNS ISO 14064- 2:2015

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Code Standard Greenhouse Gas- Second Chapter: Indicative Guidelines for Reporting and Monitoring on Changes and Adsorption of Greenhouse Emissions

MNS 3384:1982 The General and Technical Requirements for Sampling of Air Quality Test MNS 17.1.1.10:1979 The Terms and Definitions for Water and Water Use

MNS 4047:1988 Guidelines for Monitoring of Surface Water Quality

MNS 3342:1982 The General Requirements for Protection of Underground Water from Pollution

MNS 6148:2010 Water Quality: The Permissible Level of Pollutants for Underground Water

MNS ISO 5667 13 Water Quality-Sampling: Chapter 13: Sampling method for sludge 2000 from wastewater treatment plants

MNS 0899:1992 Sanitary Requirements for Sources of Water Supply to Urban and Household Purposes

MNS 0900:2005 Sanitary Requirements and Safety Assessment for Drinking

MNS ISO Water Quality-Sampling: Chapter 1: Sampling method for drinking 5667:1:2002 water

MNS ISO 5667- Water Quality-Sampling: Chapter 3: Guidelines for handling of 3:1999 water samples

MNS ISO Water Quality-Sampling: Chapter 6: Sampling method for rivers 5667:6:2001 and streams

MNS 4943:2015 Water Quality: The General Requirements for Wastewater MNS BS 8525- 1:2015 The General Requirements for Grey Water

MNS ISO 5667- Water Quality-Sampling: Chapter 10: Instructions for Sampling 10:2001 from Wastewater

MNS ISO 5667- Water Quality-Sampling: Chapter 7: Instructions for Sampling from 7:2002 Water and Steam at Heat only Boilers (HOB)

MNS 6561:2015 Water Quality. General Requirements for Wastewater discharged to Sewerage Network

MNS 5666:2006 Water Biological Test: Determination Method of Dynamic Sludge ate Wastewater Treatment Plant

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Code Standard

MNS 4288:1995 General Requirements for location, treatment process and levels of Wastewater Treatment Plant

MNS 3297:1991 Soil: Soil Quality Indicators and Norms in Urban Settlements

MNS 5850:2008 Soil Quality: The Permissible Levels of Soil Pollutants

MNS 3298:1991 Soil Quality: The General Requirements for Soil Sampling

MNS 3985:1987 Soil. Types of Sanitary Indicators of Soil

MNS 2305:1994 Soil. Instructions to Sampling, Packing and Storing of Soil Samples

MNS 4968:2000 Work Safety: General Requirements for Work Place

MNS 4994:2000 Work Safety: Vibrations Norm and General Requirements for Safe Operations

MNS 5147:2002 Electric and Static Conditions. Permissible Acid Level at Workplace

MNS 5150:2002 General Requirements for Safety Procedures with Electric Appliances

MNS 5146:2002 Work Safety: Electric Works; Protection and Wiring.

MNS 5145:2002 Electric Safety: The Maximum level of voltage and electric current

MNS 5002:2000 The General Requirements for Work Safety: The noise norms MNS 0012.4.005:1985 The Labor Protection Equipment. Tools and Types

MNS 4244:1994 The General Requirements for Fire Safety

MNS 5390:2004 Work Safety and Sanitary Conditions

MNS 6458:2014 The General Requirements for Handling Toxic and Hazardous Chemicals

MNS 3474:2003 Plant Protection: The Terms and Definitions

MNS 5344:2011 The General Requirements for Transportation of Household Wastes

MNS 5872:2008 The Service Requirements for Power Supply MNS 5043:2011

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Code Standard The General Technical Requirements for Boilers with capacity of 0.10 МВт - 3.15МВт

MNS 5041:2001 The General Technical Requirements for Boilers with capacity up to 100 кВт

MNS 5045:2001 The Technical Requirements for Water Heating Boiler with solid fuel

MNS 5643:2006 The General Technical Requirements for Power Transmission Sub Station with Capacity of 25-2500 кВ•А

MNS 4084:1988 The General Technical Requirements for Water Heating Unit with Solar Panel

MNS 5207:2011 The Technical Requirements for Installation of the Fiber Optic Cable

MNS AASHTO The Technical Requirements for Concrete Structure of Flood 86:2005 Protection Facilities

MNS ISO Operation of Water Supply and Sewerage Network: Operations 24511:2012 Management and Maintenance of the Sewerage Facilities

MNS ISO Operations Management and Maintenance of the Water Supply 24512:2012 Facilities

MNS 5682:2006 The Technical Requirements for Pedestrians and Access for Disable Persons

MNS 4597:2014 The Technical Requirements for Road Signs

MNS 4759:2014 The Technical Requirements for Road Marks

MNS 4596:2014 The Operational Instructions for Road Signs, Marks, Fences and Traffic Lights

MNS 5342:2007 The General Requirements for Auto Parking Facilities

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Specific Mongolian Environmental Quality Standards

B-1: Surface water quality standards

B-2 Noise Level Standards

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B-3: Groundwater Quality Standards

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B-4: Ambient Air Quality Standards

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B-5 Soil Quality Standards

Table A-6: Boiler Emission Guidelines

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APPENDIX C: COMPLETE PUBLIC CONSULTATION MEETING MINUTES

1. Minutes of Public Consultation Meeting in Jargalant, Khovd Aimag center, held on 2 October 2019:

Photos taken during the public consultation

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• In general, the environmental pollution, especially the air pollution, and the living conditions, such dirty and dusty streets and household wastes dumped in the streets, are very bad, there is a lack of appropriate street cleaning, there are paved and unpaved auto roads which do not have designated pedestrian roads; • The environment pollution, the waste, the waste dumpsite are in terrible conditions, there is a need for recycling, for instance bottles, and there is a need for waste collection, and recycling/processing; • The people who live in the aimag center needs to be responsible as well, for instance dispose of the waste properly, but not to dump in the streets, or participate actively in projects such as ASDIP and support its implementation for well being of all who live in the aimag center; • The ASDIP projects ger are development component needs to be explained more and clarified, where and how the project will be implemented, will the project swap land for an apartment housing, how the ger area residents take part in the project etc, • How Alag Tolgoi bag, the target ger area was selected as the pilot area, will the project provide the infrastructure only for the Alag Tolgoi bag, or for the entire aimag center; • How ger area landowners, who want to continue live on their plots, grow vegetables and berries, can participate in the project; • It is appreciated that such a big investment project will be implemented in the Khovd aimag to benefit its residents, there are similar projects and initiatives such as “Let’s live in our khashaas comfortably”, “Eco toilet” etc. We understand well that all these projects are for the benefit of the people in the aimag. On the other hand, the people, ourselves need to be more responsible, for instance people who received “Eco toilet” are not fully or properly using this toilet. Both the people and the local government need to support and actively take part in these projects, for the well being of everybody and for better Khovd city; • Kindergarten No. 8 in Alag Tolgoi bag does not centralized heating and water supply, therefore, it is very important that this kindergarten is connected to the infrastructure networks; • It is informed by the local officials that there is a need for substations/distribution stations to extend the trunk infrastructure to the households in areas where there are already trunk infrastructure networks, therefore, ASDIP should build substations/distribution stations to enable the households to get connected to the infrastructure networks; • In some of the streets of Alag Tolgoi bag, there are heating and water supply pipes installed already 2-3 years ago, the residents in this are request the aimag government to connect the households to these networks, but the aimag government informs due to lack of funding, the households cannot be connected. Therefore, it is requested to connect the households in these areas to the centralized infrastructure networks within ASDIP. This will benefit not only the households living there, but also reduce the air and other environmental pollutions. Although, many people are retired and have little income, if the project will come, then people will be willing to obtain subsidized loan and get connected and improve their housing conditions; • Street lighting is being installed in the streets in the ger areas, these needs to be extended to more areas and maintained well, in some areas the lighting is not working properly; • In some streets in ger areas there are trunk infrastructure for heating/water/sewerage etc., in some places the manholes’ hatch/cover are removed, and the hole is open, this is dangerous for the pedestrians/children, but also for cars, there is a need to repair such places for safety; • There are many sections of paved auto roads, which are broken due to the water flooding (due to melted ice and rain), these needs to be repaired and maintained; • The project has chosen Alag Tolgoi bag as the pilot area, but there are other worse off areas such as Malchin (Herders) district, where the streets are dusty. The project should have chosen such areas as priority. Since the Alag Tolgoi is already chosen, the project should choose this area in the second stage; • In general similar projects spend quite some amount of money for meetings, workshops etc. It is requested that the this project invests in tangible development activities; • There are old apartments in the Rashaant bag, which has very bad heating, and this year the heating pipes are being renovated and expanded. Can the residents of this apartments, 2-3

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households on the first floor, be included in the project and obtain some financial assistance to improve their existing apartment housing conditions; • How the State Housing Corporation, TOSK, will take part in the project, what benefits it will offer; • Although, some people do not fully understand the project, everybody has received a general understanding of the project and people are supporting the project. There are many elderly people who have difficulties to live in ger areas without infrastructure connections, and have to deal with daily routine such as preparing the fire fuel, clean and dispose of ashes, get water etc., and are dependent on their children. Therefore, it is proposed that within the project there should be sufficient social housing provided for those in needs, such as elderly people.

2. Minutes of Public Consultation Meeting in Buaynt soum of Khovd aimag:

Date and time: 3 Oct 2019. 4-6 PM Venue: Conference room of the Governor office of Buyant Soum of Khovd Province Audience: Vegetable growers of Buyant Soum- potential affected small scale business people located downstream of an ASDIP proposed irrigation activity of Agriculture component 18 persons (7 men and 11 women) were gathered in the conference room, including soum parliament speaker, deputy soum governor, agricultural specialist, bagh governor, and 15 vegetable growers. After a short introduction of ASDIP project components to participants, I have asked the following questions: • Main economic activity of the soum • What is their business and how many vegetable growers • How many areas, where vegetable is cultivated and grown • Who is the main buyers/consumers • Water sources that vegetable growers use and • What are the challenges of vegetable growers as water users of Buaynt river

The following info are found: • Buaynt soum has five baghs (smallest admin unit) and main economic activity for four baghs are livestock breeding and for one bagh that is located in soum center is vegetable growing (potato, vegetable and fruits such as water melon and honeydew melon) • There are 300 officially registered vegetable growers and additional 300 persons, who not officially registered as vegetable growers. • According to Buaynt soum statistics, it has 678.9 ha of vegetable production and 8,153 ha of hay production areas along the Buyant River in downstream of Khovd aimag center • Vegetable growers in Buyant soum produce 80% of total vegetables and another 80% of hays produced in Khovd aimag and they sell these products to surrounding 5 aimags and to UB city. The other 20% of vegetable producers in aimag are of Khovd soum 10% (in the west side of Khovd aimag center), Myangad soum about 5%, which also fed by Buyant River and Bulgan (it is located in far south close to border with China). • Vegetable growers of Buayant, Khovd and Myangad soums are entirely dependent on Buyant River water and they not use ground water, which they say scarce in the river basin. Also, 80% of hay produced in Khovd aimag belong to Buaynt soum. • The challenges of vegetable growers are as follow: o Surface water shortage during the vegetable growing season starting from mid of April through June and July. As there are many competitors among vegetable growers for watering of their areas, frequent disputes over water use rights are happening and many of them spent nights to guard to ensure water is available in their areas. Upon long term disputes, they finally found a way to share water flows through their areas via establishing schedules among water users. It was also noted that during vegetable growing season, Buaynt river flow does not reach to Khovd River, which in turn flows to Khar-Us Lake (National Park, where many rare and endangered bird species harbor), and instead the river water is entirely spent for irrigation via handmade channels within vegetable grown areas

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of Buaynt Soum. All vegetable growers and soum officials expressed that project proposed irrigation activity may negatively impact downstream users, which are experiencing water scarcity problem during the planting season. o In addition to water resource competition of Buyant River, Mr. Nergui, Soum parliament speaker and Mr. Orgih expressed their concerns about the inadequacy of waste water treatment plant of Khovd aimag center and effluent that goes to Buyant River.

All of those expressed about the possible extreme water shortage due to project proposed irrigation activity to be taken during spring vegetable plantation season, made recommendation to use land for project irrigation in the Khovd River basin area that is located in close to Myangad soum center to avoid possible future conflicts over water resource of Buyant River downstream users. Photos taken during the meeting and list of meeting attendees with their names, age, sex, contact address, mobile phones and their signatures are enclosed to this text.

Photos taken during the meeting

3. Public consultation in Deluun soum, Bayan-Ulgii aimag, held on 4 October 2019. There were more than 160 participants in the meeting. The meeting was attended by the residents of Deluun soum center, herders, representatives of agriculture and credit and savings cooperatives, pasture user groups, and government officials. Among the government officials, the Governor of Bayan-Ulgii aimag, the governor of Deluun soum, were present. The participants’ suggestions, comments and questions were as follows. o In general, the residents are very much supporting the ASDIP, and are keen for its soonest implementation and expressed gratitude to ADB and Bayan-Ulgii aimag and Deluun soum government for initiating this project. Couple of elderly participants expressed gratitude and

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emphasized that the project will create proper living conditions in the remote rural areas and will benefit greatly their children and future generation. o It is understood that the project will be investing in the trunk infrastructure, in new public facilities, improvement and extension of existing public facilities such as kindergarten, school, hospital etc. However, there seem to be no investments in the equipment for the school, for instance computers, music instruments, classes of arts and English language etc. for the children. The computers in the school are very old, more than 10 years old, and out-dated and have very low capacity, or there are no musical instruments etc. in the schools. Therefore, it is suggested that the project provides investments in the required classes, equipment and instruments for the children for better education. The old equipment and instruments are of no use, there are no appropriate class rooms for music or English classes. o There is a need to develop the ger areas in the soums by connecting the ger areas with heating, sewerage and water networks. Will the project do any work on this? o The project team has been working in the soum number of times and visited the school. It was discussed to make improvements in the school facilities and build new facilities such as multipurpose hall for arts and performances, canteen, dormitory etc. Have these been planned to be implemented. o The dormitory for 300 children is an urgent issue. Can this be built next year? The herders from remote areas of the soum really need their children to have comfortable dormitories in the soum center. o The herders of bags 1, 2, 3 and 10 have summer pastures and camps in Talnuur area. In the warm seasons, the river in this area causes flooding and muddy ground, and makes difficult the access to and from this area. Can the project support the herder households in this area by building a bridge over the river? o In one of the bags, in Chigertei, there are more than 100 herder households who have their summer pasture and camp and the river there causes flooding, swamp and muddy terrain issues and this restricts the access to and from this area. Therefore, it is asked to build a bridge in this place for these herders households to enable easy access. o On the Buyant river in the south of the soum center, there is wooden bridge which is now in bad condition, for safe and better access for the herders in that area, can the project support improving the bridge by building concrete bridge? o The environmental and natural conditions are degrading in the soum, for instance the pasture land overgrazed and it causes desertification, the little forest area, some 10 km in length, in the soum is being reduced due to animals eating the young, small trees and the old trees or remains fallen trees are not cleaned. There is a need to protect and expand this forest area based on scientific methods and approaches. o There is a study on the Deluun soum children’s health and the results showed that the children’s teeth is in bad condition, and it was stated that this was due to the water quality the soum residents use. Thus, it is necessary for the soum residents to have better quality water supply. o The residents in the soum center want to live in comfortable and healthy housing conditions. Some households have well on the plots and consume this water, which is not of good quality. Therefore, it is requested that the project provides good quality piped water, with appropriate water cleaning technology and facilities, to the households in the soum center ger areas. This is the first high priority for the residents. It is considered that will be totally possible to provide good quality piped water to the houses of the households in the ger areas. The soum government has already have done the detailed technical design for water reservoir and piped connections to the households in the ger areas. o Also, there is a report that the residents are not healthy due to the consumption of a lot of salt. This might be partly because of drinking tea with salt. But also, it is due to the consumption of a lot of salted meat. The meat is prepared, salted for it not to get rotten and to be stored for long period of time before it is used. Storing for long time, from about December to July, as animals are not slaughtered until July/August, when they get fattened, and consuming salted meat is due to lack of storage facilities. Therefore, storage facilities are needed for the residents of the soum.

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o There is no proper storage for vegetables for the kindergarten children. The storage facilities for the food/vegetables for the kindergarten and school and children is very important. o All the food staff for the children in the kindergarten, school, dormitories, and patients in the hospital is brought from outside of the soum. Therefore, it is suggested the project supports establishment of small food factories to supply these public organizations and in the future all the residents of the soum. For instance, such small factories can be dairy or bakery etc. o Is there a possibility to build paved road from Tolbo soum to Deluun soum? o During the previous couple of years, the Deluun soum experienced harsh winter and hay for the animals were brought from far away aimags. Thus it is requested, that the project supports the herders to establish irrigated and protected hay fields. This will really support the improved livelihood of the herders. o It is understood that ASDIP is ten-year program, with 3 tranches, and therefore the planned activities will be implemented in the first tranche, and while it is implemented, the soum residents/herders can discuss and bring their issues, suggestions to the project and, if feasible, implement in the next tranches. o It is noted by the soum and aimag government officials that once the project starts its implementation the Deluun soum officials and its residents/herders will do their best to become a model soum for the other soums and contribute to the development of Mongolia. Some photos taken during the public consultation

4. Public consultation in Ulgii soum, Bayan-Ulgii aimag, held on 5 October 2019. There gathered about 100 participants in the meeting. There were fewer participants than expected. This was due to the fact that during the 5-6 October 2019, there was highly attractive touristic and public event, the Eagle Festival, organized in Ulgii. Many of the Ulgii soum residents were involved in this event as spectators, organizers, tour guides, participants, performers, selling food and souvenirs etc. This might have caused in lower than expected number of participants. The meeting was attended by the residents of Bayan-Ulgii aimag center, herders, representatives of agriculture and credit and savings cooperatives, and government officials. Among the government officials, the Head of Governor’s office of Ulgii soum, the

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Bayan-Ulgii aimag center, the Head of Land Administration, Construction and Urban Development, were present. The participants’ suggestions, comments and questions were as follows.

• In general, the participants appreciated ASDIP and expressed gratitude for the project to be implemented in the remote western aimag, the Bayan-Ulgii aimag. The residents voiced that at last, the time came to develop the remote western aimags. • The project is of high importance for creating quality living conditions for the residents of aimag center by provision of heating, water and sewerage and other necessary facilities, and supported with proper planning and development activities. This brightens the future of the residents’ lives and the young generation. • Will there be competitive bidding for the project development/construction works? Will it be the project or will it be the aimag government? It is supposed that there will be many different companies involved in the construction works, for instance companies specialized in road, or infrastructure, in building constructions etc. There is an issue of openness and transparency, sometimes such works and bidding happens openly and transparently or sometimes not. There is a need for double checking and supervision by the residents for the construction works who live in the project areas, i.e. quality control by the residents themselves. The construction works of the Ulgii’s infrastructure, heating, water, sewerage etc. were constructed back in 1978 for seven years, and due to strict and proper quality control, these trunk infrastructure were built in good quality and functioning relatively well so far. • There are retired people who are construction/infrastructure or environmental professionals, of which some took part in the ADB funded vertical road project (completed recently in the autumn of 2019) and worked in the environmental assessments and other related works. These are the people, who take part in the community quality control activities. • It is understood that the project will be funded by the ADB, it is not clear if this is technical assistance, grant or loan. Please clarify • It is understood that 13th bag is one of the project target ger areas and that the project will provide the trunk infrastructure for this bag as a whole, but will be working only in the target streets in the first stage of the project as pilot area. How about the other streets of 13th bag, when the project will come to the rest of 13th bag, what are the timelines and plans for the rest of the ger areas development? • The infrastructure provision for the target ger areas, 5th and 13th bags, will be settled by this project, how about the other ger areas, will the other ger areas be provided with the infrastructure and roads, and how these ger areas will be developed? The timing and scope of the project need to be clarified. • Now, in the plots in the ger areas the well for drinking water and pit latrines are located next to each other in a distance of about 10 or so meters. This certainly causes contamination of the drinking water and consequently diseases of internal organs. The project will construct reliable and upto standard water supply networks and sewerage networks. And this will be not only for the selected bags, 13th and 5th bags, but also for the other bags of aimag center. Will the existing sewerage network and treatment plant be able to handle the expected increased wastewater amount? These issues need to be settled in parallel with the ger area development and increased users of water and wastewater. There were plans and discussions to build new wastewater treatment plant in Ulgii quite for some time, but nothing happened yet. Hopefully, this issue can be solved by this project. • 6th, 9th and 10th bags are located in the north part of the city, behind the Khovd river across the bridge. Compared to the project target ger areas of 13th and 5th bags, these bags do not have water, sewerage and heating infrastructure. Can’t the project also start in this part of the city in parallel? If this part is provided with all the infrastructure networks, it will relieve the pressure in the central part of aimag center, for instance the decreased land price, load and congestions in the central part can happen. This should be considered in the project implementation. • The issue of the bags in the north of the river, 6th, 9th and 10th bags are an important issue and the aimag government was suggesting from the very beginning to build a new Heating Plant in that area. This should still be considered in the projects tranche 1, but not tranche

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2. This will help to provide better living conditions for the people of the concerned bags, as well as implement new housing developments in this area. The existing old heating plant do not have capacity to handle the increased demand for heating, due to new housing developments and the expected housing projects within the project. • The heating demand will increase due to the new developments, there might be more than one new heating plant might be needed. • More housing developments are needed for densification for efficient use of the trunk infrastructure and facilities. • The air pollution in the aimag center is one of the worst, perhaps it is the worst after Ulaanbaatar. There is urgent need to take measures for reduction of air pollution. Can there be activities implemented within this project for production and supply of smokeless fuel, similar to the activities in Ulaanbaatar? • Regarding the resettlement, how about the compensation, it is understood that it will be based on the market prices and full replacement cost. How this is done, and what happens if the affected people will be demanding higher than the market prices, or the full replacement value? One of the project target area is 5th bag, and it is in the A zone, and the land prices are relatively high in this area. • The resettlement activities shall be carried out so that it will not damage and negatively impact the potentially affected households. The valuation should be fair, so that the land owners and possessors will be compensated properly. • If the land owners and possessors will not agree to give up their land for the project developments, it will not possible to acquire their land. Therefore, the resettlement impacts assessments and studies should be done thoroughly, so the land acquisition and resettlement will be feasible, so that the project can proceed. • Within the agricultural business development activities, can the project build livestock originated row materials processing factories, for instance for processing of sheep hide/skin. • There are development activities, such as roads, in the aimag center with the state and local budget funding. The project should coordinate its activities with the local investments and activities, so that the two do not overlap. The works of the project should not be carried out by breaking the previously implemented developments. • There might be unexpected situations that may cause difficulties for the project implementation, for this to overcome and succeed in the implementation, the relevant aimag government officials, the officials of the Ulgii soum, and the residents should provide their full support.

Photos taken during the public consultation in Ulgii soum

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5. Public consultation in Umnugovi soum, Uvs aimag, held on 7 October 2019. Public consultation in Umnugovi soum, Uvs aimag held in the Citizen’s Hall at the Soum Governor’s Office. There were more than 60 participants in the meeting. The meeting was attended by the residents of Umnugovi soum center, herders, and government officials. Among the government officials, the Head of Investment and Development Policy Planning Division, Governor’s office of Uvs aimag, Governor of Umnugovi soum, Chairman of Citizens’ Representative Khural of Umnugovi soum, were present. The participants’ suggestions, comments and questions were as follows.

• In general, the participants appreciated ASDIP and expressed gratitude for the project to be implemented in the Umnugovi soum, as the first ASDIP soum of Uvs aimag. It is understood that the project has a holistic approach as it will work in the urban and ger areas development, infrastructure development, rural development – agriculture, fodder and hay making, and pasture land management and herders development. • Some of the participants have noted that the project will come and support the soum and its residents. On the other hand, the participants noted that it should be very important that the soum center residents and herders themselves support and actively take part in the project for the benefit of the soum and for the benefit of themselves as well. • When the project will start in Umnugovi soum, will the project start first in Ulaangom, aimag center, and then in Umnugovi soum, or it will start at the same time? • How the project will be implemented? Will all the listed project activities, such as the improvements of the school, dormitory, hospital etc., be implemented or will there be some priority list and changes in the scope, i.e dropping some of the investments and investing in other facilities etc., and what about the order of the implementation, i.e. first the school, then the dormitory and then the hospital etc.? • How the sewerage system of the public buildings will work, will it be a centralized sewerage network with treatment facilities/plant, or individual sewerage pits/tanks? How about the sewerage solutions of public buildings in the other soums? Do they have centralized system or individual pits/tanks. It was clarified with some other soums and aimags, they all seem to have their own pit/tank and have a special truck to pump out the sewerage to dispose in the treatment plant or similar. • It will be very important to organize awareness and education among the people in the soum center on the proper use of the toilets. In the case of the hospital, because people do not know and were not using indoor toilets, they put some solid waste in the toilet and this causes blockage and breakdown of the internal sewerage/plumbing. Therefore, there should be very clear guidance/awareness activities for appropriate use of the toilettes for the soum residents, for use of the toilettes in the public buildings. • Recently a paved road was built in the soum’s main road, there were some temporary impacts of dust and making de-tours, due to the construction works. • Concerns were expressed related to the use of underground water. Once the project starts, there might be increased use of water for the public buildings, and perhaps for the ger areas in the future, if the housing conditions will be improved and households connected to piped water network. This might cause reduction of the quantity of the water resource. Now it is noticed lately that the water quality from the existing underground wells are degrading, as there are sediments of saline in the water boilers or other household utensils, this was not happing before, and this might be indicating that the water source in the underground wells are decreasing and this is causing saline water. Therefore, the project must do thorough studies on the underground water sources, reserves and quality. The project, also, should consider economic use of underground drinking water. • How about the development of the ger areas? Will there be ger area development similar to Ulaangom? There are health, hygiene and smell etc. issues of pit latrines, the smoke from coal is also becoming big issue. There are 550-600 ger area households who spend winter in the soum center, and the smoke, form burning coal, from these households has already

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started air pollution, especially in the morning and evening in the cold season. Thus the development of ger areas similar to the aimag center, should be considered. • In the summer the number of households in the soum center decrease to about 400, as some of the households go to their countryside homes after the school year finished, and some of the households go to tend their herds, which were tended by their relatives in the wintertime. Many households have two homes and divide due to school year or cold season, one in the soum center, where one of the spouses spend winter to look after the younger, and one in the countryside and of the one of the spouses to tend their herds. • In the soum center, there is an abandoned a 36-unit apartment house. Can the project work on rehabilitation and restoration of this apartment house and make it liveable? Some of the residents expressed willingness to rent apartment unit in this building, if made useable again. People in the remote rural areas, such as soum centers, want to live in comfortable housing similar to residents in big cities. • If the ger areas will be developed and connected to piped networks in the future, than it should consider using surface water for household washing/shower etc. use., the natural, underground drinking water will not be recovered. If possible the drinking water should come in different pipe designated only for drinking. • Some underground wells which should be used for drinking water were used for watering the trees and green areas in the soum center. This should be stopped and, instead, it is appropriate to use surface water for watering trees and green areas. • The safeguard principles, which state that “the livelihood or the environmental conditions should not be worse off than pre-project level” is very good and relevant. Of course, the project is very important and will aim to improved living conditions and economy, but the environment should not be worse off than it was before the project. • Regarding the agrobusiness and livestock related activities the participants noted that in the soum there is pasture land degradation, and the livestock carrying capacity is exceeded by 2.5%. • It is acknowledged that pastureland here is getting overgrazed. There are number of reasons, one of them is increased number of livestock, and another reason is lack of moisture, and less rainfalls. • There is the government policy to decrease the number of livestock and have more healthy and good quality livestock. On the contrary, there is the government policy that awards herders who have many livestock (specials government awards for herders who have more than one thousand livestock). Thus, there are many young herders who want to increase the number of their livestock and become or get the award and title of the “good herder” of the soum, the aimag and, eventually, the country. This is true for almost all the herders. • The sole livelihood sources of the herders is their livestock. There are herders who have many children and when the children get married, it is obvious that the parents gave certain number of livestock to their children for their livelihood and income sources. Therefore, it is difficult to decrease the number of the livestock. Therefore, the issue of decreasing the number of livestock and having fewer, but good quality, livestock, should be carefully thought, discussed and consulted with the herders. • It is widely discussed that degradations of the pasture land is due to the increased number of livestock, however there are people, especially the older generation, who think that this is happing due to the increased mining or other land/earth digging activities, in general in Mongolia, and inappropriate handling of the Mother Nature, and therefore the Mother Nature is punishing the people, and not letting it rain or similar. • The by-products of the livestock, for instance the head, foot, intestines, hide/skin of sheep, are being thrown away. Also, the animal products such as the skin and wool are priced low. These are important row materials and therefore there should be strategic and clear government policy to do processing of these products to prepare good quality row materials. • Will there be support to SME development? Especially, for animal by products such as the head, foot, intestines, bones etc. For instance for the bones are used to produce fertilizers, soap, bone flour, oil etc. There are people who has some ideas for such SMEs. It is spoken

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that everything from the animals are used, there is nothing to throw away, for instance even the hoofs and horns were used for production of glues and buttons.

Some photos taken during the public consultation in Umnugovi soum

6. Public consultation in Ulaangom soum, Uvs aimag, held on 8 October 2019.

Public consultation in Ulaangom soum, Uvs aimag center held in the Drama Theater. There were more than 120 participants in the meeting. The meeting was attended by the residents of Ulaangom, herders, and government officials. Among the government officials, the Head of Investment and Development Policy Planning Division, Governor’s office of Uvs aimag, and Governor of Ulaangom soum, were present. The participants’ suggestions, comments and questions were as follows.

• In general the participants appreciated ASDIP and expressed their opinions that the project will be long term project, through which the strategic urban development investments for next 20-30 years will be secured. • When the project will exactly start and the works such as ger area development will be implemented? • There is environmental pollution due to throwing away the animal originated products. For instanceь the head, foot, intestines, and sheep skin/hide are just thrown away. The sheep skin is bought by the merchants of animal row material together with the guts, and then the skin is thrown away. • Will the project support SMEs to process animal by-products, such as head, foot, intestines, and all the other animal products? It is difficult to obtain a loan from the local SME fund. The officials do not provide proper information on the availability and access to the soft loans for SMEs. Even if the required documents are provided, the SME soft loan does not reach the intended beneficiaries. There is a great need for SMEs to process the animal products that

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are being thrown away. If, the project introduces and makes available SME development soft loan, there is a need for fair and transparent procedures and offices to be in charge of provision of such loan. • There nothing to waste from the animals, apart from all the other by-products and products, even the animal excreta, after the animals were slaughtered, were used to produce fodder for the animals by mixing with the animal blood and drying. Also, the intestines of the animal could be used for medication or supplement for immunity etc. • There is pile of ashes from the Heating Plant 1, and when people intended to use this ashes for hollow blocks for fences, garages etc., it was said that these ashes contain mad/sand and therefore not possible to use for hollow blocks. Also, people grow vegetables, by buying expensive seed, but then there are many government people coming to the farmers, and require many types of licenses and permits etc. Also, there seem to be vegetables brought from Khovd aimag at cheaper prices. These are the different problems people encounter when trying to do small businesses and productions. The project should consider these issues, and make it easier for those who want to do small businesses. Also, there is a need for entrepreneurs to meet professionals and obtain advices for their small businesses. • How the water sources for the irrigated perimeter for fodder production will be provided? Will there a underground well or will the Teel river be used? There are some people who has some agriculture activities such as irrigated hay or vegetable fields in the Teel river area. Will the river water sources be sufficient for these users, once the project starts using the water for the irrigated perimeter? Where the irrigated perimeter will be established and can the people in the vicinity of this irrigated perimeter benefit from it? The people who have their livelihoods, hay making, vegetable growing, fodder growing, etc., dependent on the Teel river should be considered and if any negative impacts on them, there should be appropriate measures sustain their livelihood. • There was a project in 2007-2008 with soft loan support from Asian Development Fund or similar, and this project encouraged establishment of agriculture cooperative. Some more than 10 households came together and put their assets into the cooperative and started some farming activities, but eventually somehow the entire farming land, some 30-40 ha, become the property of one person, and all the other households were left no land, not even 1 ha. Therefore, it is very important that this new project does not end up as this case, there procedures and the processes must be clear and fair, and the benefits of the project must reach the intended beneficiaries. • The establishment of irrigated perimeter for fodder is very much supported. In Uvs, people plant alfalfa. Animals that are fed with alfalfa recover much more faster and better compared to hay. Therefore, it is suggested to grow alfalfa in the irrigated perimeter. • The ger area development concepts are now more clear and it is supported. • The ger area development project must be very clear and benefit the landowners, it should not be end up leaving people without land and housing, or just some people benefiting on the expense of others. • The ger area development project will start from the Bag 4. In the bag 4, school No. 4 is located, the B part of the school building was put in operation since 1985 and its capacity is for 240 pupils. Since its start of use, this B part did not have full maintenance and repair works. Can the project do the full maintenance and repair of the B part of the school. • Currently there are trunk heating and water networks being constructed in the aimag center. In some parts, this work is being done very slowly and, perhaps, by non-professional company and workers. Once the project starts, such issues need to be considered, the works need to be done on timely manner and professional and qualified companies/workers should work. • In the aimag center, there is no proper waste collection and disposal system. Wastes are dumped everywhere, the streets are being filled with wastes. There should be proper waste collection and disposal, i.e. waste management system.

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Some photos taken during the public consultation in Umnugovi soum

Lists of participants of six meetings with their name contact and phone and signatures are put into the separate file due to its large volume.

7. Public consultation through questionnaire survey among water users in Tarialan soum and Naranbulag soum of Uvs aimag, April 29-30, May 1, 2020

Due to coronavirus (Covid-19) outbreak in China and around the world in January 2020, Government of Mongolia has banned since February 2020 any meeting or gathering with over than 5 persons in one place at a time to restrict virus spread. This policy has created a challenge for applying conventional ways of

232 implementing public consultations. The feasible way was to get views of local community on the project interventions through a questionnaire survey by meeting participants one by one.

A professional hydrologist was hired locally to explore views of potential water users of Kharikiraa river and its tributary Teel river and project expected intervention on water conservation. As Kharikiraa river and Teel tributary is mostly stretched over territory of Tarailan soum, majority respondents were from Tarialan (78 persons) and a few (4 persons) were from Naranbulag soum, which is neighboring soum on the east of Tarialan. In total 82 respondents were participated in questionnaire survey organized on 29, 30 April and 1 May 2020. Majority of respondents were crop producers, hay makers, vegetable growers and herders and medical doctors, middle school teachers were among them. Also, local government officials, including environmental inspector, social welfare specialist, finance division head were respondents.

Questionnaire consists of 12 questions and additional comment section. The detailed questions and survey results are described in the table at the end of this section.

Most of respondents (72%) knows well or to some extent about the water conservation project.

Of 82 respondents, 51 persons (74%) are water users of Kharkiraa river and 18 persons (26%) are water user of Teel river.

On question what purposes they use river water, 69 persons (38%) use water for hay making, 46 persons (25%) use water for watering their livestock, 35 persons (19%) for crop/fodder production and 34 persons (18%) use water for fruit and vegetable growing.

46% (38 persons) of respondents expressed that Teel river flows never reaches Uvs Lake during summertime because all water is used for irrigation of crop, fodder, fruit tree and vegetable growing by local users. 43% (35 persons) of respondents say Teel river water reaches Uvs Lake sometimes. Only 2 respondents tell river flow reach the lake and 7 respondents do not know whether river water reaches or not to the Lake.

On question, whether Uvs lake ecosystem depend on Kharikiraa and Teel river, 34% or 27 respondents tell that Uvs lake directly dependents on Kharikiraa (Teel) river. 20% or 16 respondents express the lake ecosystem does not depend on Kharikiraa (Teel) river. 31% or 25 respondents express that whenever river floods, its water reaches to Uvs lake with this it impact Uvs lake ecosystem.15% or 12 persons do not know the answer to this question.

On question whether project planned diversion and storage of 3% of Teel river from May to September is good or badly impact for their family and community, 51% express that it will impact positively. 21% express no impact to them, 15% express they do not know. 13% express it will impact negatively and advice that to extend water conservation component in the Teel river.

Environmental problem in their local area are according to respondents, first, surface water scarcity (36%), second, pasture degradation and overgrazing due to high number of livestock (22%), third, solid waste issue (19%) and environmental pollution (11%).

On question, whether they have a concern about the possible impacts of project to fishes of Teel river and surrounding biodiversity, 73% expressed they have no concern and only 4% expressed that they have a concern on the project impacts without describing how it will be impacted.

On question, if project will have impact to local economy and livelihoods of local community, 71% (72 prs) expressed that it will positively impact livelihood of local citizens, 21% (21 prs) say it will positively impact local economy. A person expressed it will negatively impact with no explanation why. 7% expressed they not sure if there will be impact.

On question about their attitudes towards the project intervention, 88% (70 respondents) are support the project and 6% are either not support or do not know whether to support or not.

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On the additional comments section their put the following comments:

• Expressed their gratitude for the water conservation component, as it will support wellbeing of local community on increasing their areas of crop/fodder production, hay making, vegetable and fruit production and increase pasture resources. • It will support traditional crop production businesses • With increased climate change, it needs to conserve water for efficiently use for local communities • To pay attention on the design of water storage facility/reservoir to avoid risk of falling of livestock and children into it • To design and construct the canal and water storage facility in good quality for long term usage • To incorporate into the infrastructure design elements of flood protection and leakage into the below soil • While constructing the infrastructure, try to less disturb current landscape and keep as possibly original landscape view • Train local water users and herders on rotational use of land resources and water conservation.

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Questions and Results of Questionnaire Survey

Respondents’ age group RESPONDETS' AGE GROUP no info, 1, 1% 10-19, 4, 5% over 60, 7, 9% 20-29, 7, 8%

30-39, 18, 22% 50-59, 27, 33%

40-49, 18, 22%

Respondents’ sex RESPONDENTS' SEX

women, 26, 32%

men, 56, 68%

Respondents’ education status RESPONDETS' EDUCATION STATUS no info, 9, 11% student, 3, 4%

no educated, 2, 2% high, 27, 33% vocational education , 2, 3% college, 6, 7%

elementary, 5, 6%

secondary, 28, 34%

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Respondent’s ethnicity RESPONDENTS' ETHNICITY no info, 5, 6% khalkh, 1, 1% darkhad, 1, 1% durvud, 14, 17%

bayad, 6, 8% khoton, 55, 67%

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Respondent employment RESPONDENTS' EMPLOYMENTS STATUS status student, 3, 4% no info, 3, 4% govt employee, unemployed, 5, 14, 17% 6% retired persons, 6, 7%

boiler operators, guard , 3, 4% middle school teachers , 4, 5% self-employed, managers of 20, 24% entities, gasoline station, medical doctors and veterianian, 11crop/vegetable, herder, 4, 5% 13% producers, 9, 11%

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Q1: Do you know 1. Yes…37% about HMWM 2. Slight Q1 subproject 2 knowledge…35% (further “project”) 3. Don't know…28% as an old canal Don't know, restoration and 23, 28% water Yes, 30, 37% accumulation used to function in XVII-XVIII centuries?

Slight knowledge, 29, 35% Q2a: Do you use 1. Kharkhiraa…20% or rely on 2. Teel…7% Q2A Kharkhiraa or Teel river water? Teel, 18, 26%

Kharkhiraa, 51, 74%

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Q2b: What do you 1. Hay making…27% use the river water 2. Fruits & Q2B for? Vegetables…14% Livestock 3. Other, 0, 0% No use, 0, 0% Crop & Fodder…14% watering, 46, 4. Livestock 25% watering…18% 5. Other…0% Hay making, 6. No use…0% 69, 38%

Crop & Fodder, 35, Fruits & 19% Vegetables, 34, 18%

Q3: From your 1. Reaches Uvs…2% experience or 2. Doesn't reach…46% Q3 knowledge does 3. Sometimes…43% Don't know, Reaches Uvs, the Teel river dry 4. Don't know…9% 7, 9% 2, 2% up in summer below Tarialan before river reaches Uvs Lake Doesn't reach, 38, 46% Sometimes, 35, 43%

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Q4: Can you 1. May…14% indicate which of 2. June…25% Q4 these months of 3. July…29% All months, summer Teel river 4. August…19% September, 138, , 8% May, 22, 14% dries up? 5. September…5% 5% (Multiple choice) 6. All months…8%

August, 30, 19% June, 40, 25%

July, 46, 29%

Q5: What are the 1. Scarce surface environmental water…36% ChemicalQ5 pollution, 4, problems you 2. Scarce underground Other, 3, 2% have in your area? water…8% Pasture 2% degradation/s 3. Water Scarce carcity, 39, pollution…11% 22% surface 4. Waste…19% water, 64, 5. Pasture 36% degradation…22% 6. Chemical pollution…2% 7. Other…2%

Waste, 35, 19% Water Scarce pollution, 19, underground 11% water, 15, 8%

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Q6: Do you think 1. Directly Uvs Lake dependent…34% Q6 “ecosystem” 2. Not dependent…20% Don't know, depends on 3. Whenever 12, 15% Kharkhiraa and floods…31% Directly Teel river water? 4. Don't know…15% dependent, 27, 34%

Whenever floods, 25, 31% Not dependent, 16, 20% Q7: Do you think 1. Good…51% the HMWN plan to 2. Bad…13% Q7 divert and store 3. No impact…21% Don't know, 3% of the Teel 4. Don't know…15% 11, 15% river from May – September will be good for your family and your community? No impact, Good, 39, 16, 21% 51%

Bad, 10, 13%

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Q8: When in 1. Positive…4% operation, how do 2. Somewhat Q8 Positive, 3, you assess, would positive…30% Negative, 5, 4% project impact the 3. No impact…42% 6% water resource of 4. Somewhat Somewhat Teel river? negative, 15, negative…18% 18% Somewhat 5. Negative…6% positive, 25, 30%

No impact, 35, 42% Q9: What do you 1. Support local think is the main community…21% Q9 Don't know, impact of the 2. Support citizen's Negative , 1, Support local 7, 7% project on the livelihood…71% 1% community, local economy 3. Negative…1% 21, 21% and society? 4. Don't know…7% (Multiple choice)

Support citizen's livelihood, 72, 71%

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Q10: Do you have 1. Concern…4% any concerns 2. No concern…73% Q10 about the possible 3. Don't know…23% Concern, 3, 4% impacts of project Don't know, to fishes in Teel 19, 23% river and surrounding biodiversity?

No concern, 59, 73%

Q11: Do you have 1. Concern…10% any concerns on 2. No concern…65% Q11 accumulated 3. Don't know…25% Concern, 8, impacts of 10% Don't know, increased water 20, 25% users and livestock number

No concern, 51, 65%

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Q12: What is your 1. Supportive…88% attitude towards 2. Not supportive…6% Q12 this project? 3. Don't know…6% Not Don't know, supportive, 5,5 , 6% 6%

Supportive, 70, 88% Q13: Additional • Posit increased past+water use comments: • Posit: increased wr but need train herders in rotational use of irrigated pasture • Posit: need qualitive construction. To protect well from natural disasters • Good for unutulized pasture, increased water resource, potential for tourism development • Very positive for citizens well being. Increased water resources support crop production & pasture utilization. • Positive: potential for use of unutilized pasture, saves resource of herders' hay making, reduced conflicts between herders and crop producers due to trespassing of livestock into crop areas • Everybody wishes to have water resources. Keeping river basin is helpful for the health of human being and all people should support this. Good luck! • In prior times, many people have crop production and income. With this project, ther is potential for planting fruit trees and increased crop production. Herder will also benefit through using unutilized pasture as thye could not use this pasture due to lack of water in these areas • Water conservation project implementation brings following benefits in local development: for examp, local citizens benefit through increased crop production and increased pasture land • Full utilization of all pasture, potential for crop production, water scarcity will be eliminated • If to implement project, then need to protect water reservoir to avoid falling livestock or persons into reservoir. Need to strengthen measures against flooding • Water conservation helps livelihood of local citizens through increased crop production, increased water availability and not dipute over scarce water.

245 • Project positively impact on protecting local citizens rights and environmental protection and will help increase traditional income sources • Potential for traditional crop production & livestock herding. Increased drinking water for people and livestock. Will be available water resource and water rational use • I support for water canal restoration • Project will assist in livelihood improvement. Water conservation is necessary • Project will positively impact local people's livelihoods on traditional crop production • With project, disputes between herders and crop producers over water during spring season will be settled • No dispute over water availability and potential for tourism development • Below soum center all areas are occupied with haymaking. Pasutre is available during august and september • With intensifiction of climate change, it needs to use water without losses and use of water in environmentally friendly way for the benefit of local economy and pasture irrigation • Water reservoir needs protection to avoid livestock falling and waste entering • Recommends to implement project with high quality and with less impact to the landscape • Try less use of heavy machineries and employ more hand work • Project needs to keep the original landscape view and keep ecological balance to restore as it was before • To consturct the water canal in high quality • Increased water canal and water conservation are good measures • It will support livelihood of local people • Project should avoid water leakages • Project is very helpful for local citizens • Flood protection is neccesary • It will support local citizens for crop production and vegetable growing • Water resource management is required due to high competition over available water resources • Positive impact of project due to improved water supply for drinking by people and livestock and crop production • It will support local crop production expansion • Frequent flood issues, therefore need protection against flood. Channels used for crop and fodder need to have measures to prevent land degredation • Only use channel for irrigation. Need to be of quality (previous actions were not up to quality) • Very positive for both agriculture and herders and pasture management • Create water accumulation during discharge and use accumulated water for further activities. Protect possible flood vulnerable areas. Use accumulated water for tourism and forestation. Don't use it for agriculture

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• Positive for using 30k ha pastureland during spring and fall seasons. Possible to recover and use 300 ha old hay preparation land • Needs better protection against flood • Only use for pasture • Need to fund actions to unify kharkhiraa river bed • Due to high use of teel river water in agriculture there is water shortage. We need water accumulation • Water accumulation is needed for 300 ha agricultural land in naranbulag soum • Need water accumulation in teel river • Focus on preserving the current topology and create strong channel, create water accumulation and utilize rainwater

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Environmental Management Plan

June 2021

Mongolia: Aimags and Soums Green Regional Development Investment Program

Jargalant, Khovd Aimag

Currency unit – togrog (MNT) MNT1.00 = $0.00035 $1.00 = MNT2,846.27 ABBREVIATIONS ADB Asian Development Bank ALAMGac Agency for Land Management and Administration, Geodesy, and Cartography ASDIP Aimags and Soums Green Regional Development Investment Program CEMP contractor environmental management plan DoE Aimag Department of Environment EEM external environmental monitoring EIA environmental impact assessment EMP environment management plan EMR environmental monitoring report GOM Government of Mongolia GRM grievance redress mechanism IEE initial environment examination MET Ministry of Environment and Tourism MCUD Ministry of Construction and Urban Development MOFALI Ministry of Agriculture and Light Industry PIU project implementation unit TRTA transaction technical assistance REA rapid environmental assessment RP resettlement plan SPS ADB Safeguard Policy Statement (2009)

WEIGHTS AND MEASURES km – kilometer km2 – square kilometer kg – kilogram ha – hectare m – meter m3 – cubic meter mg – milligram mg/l – milligram per liter t – metric ton

NOTE

In this report, "$" refers to US dollars.

This environmental management plan 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. Your attention is directed to the “terms of use” section on ADB’s website.

A. Overview of ASDIP 1 II. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES 2 A. Project level 2 B. Khovd Aimag – Jargalant center 3 III. SUMMARY OF POTENTIAL IMPACTS 7 Source: Asian Development Bank. 9 IV. PUBLIC CONSULTATION 9 V. MITIGATION PLAN 10 VI. MONITORING PLAN 29 A. Environmental Quality Standards for Tranche 1 of ASDIP 29 B. Performance Monitoring 29 C. Reporting 29 D. Estimated Cost of EMP 35 E. Emergency response plan 36 APPENDIX A: ENVIRONMENTAL QUALITY STANDARDS OF MONGOLIA 37 APPENDIX B: EXAMPLE ENVIRONMENTAL MONITORING REPORT FOR ASDIP 45 APPENDIX C: EMERGENCY RESPONSE PLAN 46 A. Alert Procedures 47 B. Emergency Response Situations 48

Table 1: Planned investments in Jargalant ...... 2 Table 2: Summary of Indicative Responsibilities for Uvs Aimag EMP ...... 6 Table 3: Summary of Potential Impacts of ASDIP in Jargalant ...... 8 Table 4: Mitigation Plan ...... 11 Table 5: Environmental Monitoring Plan ...... 30 Table 6: Performance Monitoring Indicators for ASDIP ...... 34 Table 7: Indicative Costs for Khovd Aimag EMP ...... 35 Table 8: Roles and Responsibilities in Emergency Incident Response ...... 46 Table 9: Evacuation Procedure ...... 48 Table 10: Response Procedure During Medical Emergency ...... 49 Table 11: Response Procedure in Case of Fire ...... 49

Figure 1: Institutional Arrangements for ASDIP ...... 4 I. INTRODUCTION

1. Tranche 1 of the Aimags and Soums Green Regional Development Investment Program (ASDIP) is in the three western Aimags of Khovd, Uvs, and Bayan-Ulgii of Mongolia. The environmental management plan (EMP) reported herein was prepared for the project areas in Khovd Aimag which are located in Jargalant – the Khovd Aimag center. The two EMPs for the project areas in Uvs Aimag and Bayan-Ulgii Aimag were prepared separately.

2. The EMP will guide the implementation of the urban infrastructure and agribusiness components of Tranche 1 of ASDIP in Jargalant through the pre-construction, construction, and post-construction operation phases to ensure that unnecessary environmental and social impacts identified in the separate IEE do not occur, and to also measure and document any unexpected impacts of the project components.

3. The EMP provided here will guide contractors to develop their contractor EMPs (CEMP) for their construction package bidding documents. Similar to the EMPs of the other two Aimags, the EMP of the feasibility designs of Tranche 1 in Jargalant is decidedly comprehensive and developed as a stand-alone management tool that will be updated during the later detailed design stage of Tranche 1.

A. Overview of ASDIP

4. Tranche 1 of the ASDIP will promote local economic development and improve basic urban services in priority Aimags of Mongolia.1 The program will support the government in establishing inclusive, green urban development, resilient rangeland management, and sustainable agribusiness values chains in select Aimags. For each Aimag the ASDIP will comprise a sequenced set of green urban and rural infrastructure developments, and agribusiness investments, which are supported by implementation mechanisms, policy actions, and capacity building support. The ASDIP investments will reduce the vulnerability of the country to climate change and further pastureland degradation.

5. The multisector ASDIP will invest in the in the three selected Aimag centers and in four soum centers in Uvs and Bayan-Ulgii Aimags in following two major component areas:

(i) basic urban infrastructure, services, and facilities; and (ii) agropark facility developments including improved pastureland management

However, unlike Uvs and Bayan-Ulgii, investments in a soum center in Khovd Aimag will not occur in Tranche 1.

6. Table 1 summarizes planned investments in Jargalant, Khovd Aimag. The urban infrastructure investments will occur primarily inside the Aimag center, whereas the agribusiness investments will occur outside but near the Aimag center. The agropark facility investments will Table 1: Planned investments in Jargalant.

1 An aimag is an administrative subdivision equivalent to province in Mongolia. There are 21 Aimags and Aimag centres. A soum is an administrative subunit of an Aimag, and its centre is called a soum center. There are 304 soums in Mongolia (not including Aimag centres). Soums have average populations of 4,000 and cover an average land are of 5,000 square kilometers. 5 Urban and Agropark Infrastructure • Heating supply network • Ger housing redevelopment2 improvements • Communication towers and fibre • Road developments and drainage optic networks

• Improvements to wastewater collection, and new or completely • Flood protection channel upgraded treatment plants (WWTP)

• Water treatment and distribution • Landfill improvements improvements • Upgraded schools, hospitals, • Electrical power upgrades municipal buildings

Agribusiness Investments*

• Community-based micro-projects for • Agroparks PUGs3

- animal husbandry, - Disease Free Establishments - hay protected areas and storage, - Meat processing facilities - small irrigation, - Laboratory and veterinary - well water development, services - small river/stream bridges - Research Development Center - Business incubator centers - Processing industries

* Investments will be supported by infrastructure. Source: Asian Development Bank.

1. Assessment Context

7. The ASDIP is category B for environment pursuant to ADB’s 2009 Safeguard Policy Statement and supporting good practice sourcebook (2012). The EIA The EIA Department of the Ministry of Environment and Tourism (MET) is expected to require that a detailed environmental impact assessment (DEIA) of Tranche 1 of the ASDIP be prepared which MET will specify with the conclusions of the General Environmental Impact Assessment (GEIA) that they will prepare for Tranche 1.

II. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES

A. Project level

8. The institutional arrangements for all Aimags of the ASDIP are illustrated in Figure 1 and summarized below. A Steering Committee (SC), chaired by MOF and including representative of MCUD, MOFALI, MET, Development Bank of Mongolia (DBM), and targeted aimag governments will be established to oversee project implementation, provide strategic and policy guidance, and inter Ministry and agencies coordination. An Executive Working Group (EWG) including the MCUD, MOFALI, DBM, and the aimag governments will be established to directly supervise

2 This is in relation to an ongoing ADB project. ADB. 2018. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Administration of Loan and Grants to Mongolia for the Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal Sector Project. Manila. 3 Pasture User Groups. 6 and monitor the implementation of the project. The project executing agency (EA) will be the MCUD representing the Government of Mongolia for project implementation oversight. The EA will report directly the EWG and SC. A program management office (PMO) will be established under MCUD, the PMO director will be the head of ALAMGaC. The PMO will be managed by a PMO director and be organized with three departments, managed three deputy coordinators (i) for urban and territorial development, reporting to the PMO director and coordinator, and liaise and coordinate with MCUD; (ii) for rangeland management and agricultural component, reporting to PMO director and coordinator, and liaise and coordinate with MOFALI; and (iii) for procurement, finance, safeguard and due diligence reporting directly to the PMO director and coordinator. A program implementation unit (PIU) for managing the FIL component of the project will be established by AMC-DBM under the supervision of DBM and will liaise and coordinate with PMO director and coordinator.

1. Aimag level

9. At the Aimag level an Aimag Project Office (APO) will be established, and an Inter- Soum Implementation Office (IPO) in each inter-soum targeted by the project (IPO not applicable to Khovd Aimag). Each will have urban development, rangeland management, agropark, and safeguard and due diligence team. Each APO will be managed by APO coordinator and report to the PMO director and coordinator and will liaise and coordinate with Aimag Governor’s Office. Local Agropark Council, comprising of representatives of associations or federations for production of meat, wool and cashmere, skin and hide products, and Mongolian National Chamber of Commerce and Industry (MNCCI), herders organizations, and cooperatives, will be established to provide economic and value chain development guidance and support to the EWG and PMO. In each soum targeted by the project, an Inter- soum Project Implementation Unit (IPIU) will be established, and will have urban development, rangeland management, and agropark team. The IPIUs will be managed by a coordinator who will report to and liaise with Soum Governor’s Office.

2. Environmental management of separate FIL component

10. The program implementation unit (PIU) to be established by the Development Bank of Mongolia (DBM) for the parallel FIL component of the project (Figure 1) will manage the implementation of the separate EMPs that will be developed by the FIs for private sector investments in the Green Investment Regional Agribusiness Fund (GIRAF). The EMPs prepared by the FIs will developed from and be guided by the separate Environmental and Social Management System (ESMS) that has been prepared for the FIL component to meet the requirements of the SPS (2009) and EIA requirements the MON government.

B. Khovd Aimag – Jargalant center

11. The primary management framework responsible for the implementation of the EMP for Khovd Aimag of Tranche 1 is summarized as follows. The MCUD as project EA will take overall responsibility for successful implementation of the EMP in the Aimag center of Jargalant with higher level decision support provided when necessary from the EWG or perhaps SC. Within the UB-based PMO, the Deputy Coordinator #3 for the Safeguard, Due Diligence, Procurement and Finance Department (Figure 1) will assign an environment safeguard officer (ESO) who will work alongside an assigned social safeguard officer. The ESO will ensure that the Khovd EMP is implemented successfully. The ESO will work closely with the Aimag Coordinator at the Aimag Project Office (APO) in Jargalant who will assign an environment safeguard officer (SO) to the safeguard and due diligence team at the APO. The safeguard team will consist of the ESO and a social specialist. With support from the ESO, the SO will work at the project sites to ensure the EMP is implemented satisfactorily in Jargalant. With support from the ESO, the SO will direct and monitor the construction contractors who will implement their contractor EMPs (CEMP). The 7 contactors will develop specific CEMPs in their bidding documents from the EMP which will be included in the tender documents for the different construction packages for the Khovd subprojects.

Figure 1: Institutional Arrangements for ASDIP

Source: Asian Development Bank.

12. The SO with assistance from the ESO and PISC (below) will be responsible for day-today management of the successful completion of the EMP in Jargalant. An EIA licensed Mongolian Firm and an external environmental monitoring (EEM) will be retained to conduct all environmental monitoring and analyses for the Jargalant that are specified by the Monitoring Plan of the EMP.

13. Support for implementation of the EMP by the ESO and SO will be provided by the international environment specialist (IES) of the Project Implementation and Supervision Consultant team (PISC) hired to oversee the detailed design and implementation of Tranche 1 of ASDIP, along with support as needed from the safeguard officer of the Asian Development Bank (ADB).

8 sampling and monitoring of environmental media and will assess compliance with ADB SPS (2009) and Mongolian environmental quality standards for ambient air, water and noise quality. The EEM firm will submit annual environmental monitoring reports to the PMO and ADB. The IES in conjunction with the ESO and SO will work closely with the EEM firm to ensure all monitoring and reporting is conducted as specified by EMP including monitoring by the contractors as specified by their CEMPs.

15. The construction package contractors will be responsible for implementing their own contractor EMPs (CEMP) that they develop from the Khovd EMP as part of their bid documents. Major and minor responsibilities of institutions and personnel for environmental management of Tranche 1 are further defined below and summarized in Table 2.

16. The construction package contractors will be responsible for implementing their own contractor EMPs (CEMP) that they develop from the Khovd EMP as part of their bid documents. Major and minor responsibilities of institutions and personnel for environmental management of Tranche 1 are further defined below and summarized in Table 2.

17. The MCUD being EA and project owner has ultimate responsible for ensuring successful completion of the EMP for the Khovd Aimag, and for interacting with the MET and ADB as necessary.

18. The Steering Committee (SC) with support from the Executive Working Group (EWG) is responsible for: (i) resolving any environmental management matters that require action from senior management; and (ii) ensuring allocation and timely disbursement of adequate resources for EMP implementation including the environmental monitoring plan of the EMP. The SC/EWG through ESO and SO will also facilitate the necessary inputs and/or assistance from the affected communities and private sector in Jargalant to meet environmental safeguard obligations, and to ensure collaboration with communities in consultations and information disclosure, environmental monitoring, and with implementation/observance of the grievance redress mechanism (GRM).

19. The Coordinator of Khovd Aimag with support from the SO will be responsible for undertaking and managing day-to-day activities of the Khovd Aimag EMP. The SO with inputs from the IES/PISC and EEM firm shall coordinate and supervise EMP implementation, including but not limited to: (a) update the EMP after detail project design; (b) oversee incorporation of EMP recommendations into the contractor design/bid documents, and ensure procurement of environmentally responsible contractors; (c) ensure that government DEIA prepared for the MET as applied to Khovd Aimag is approved prior to the awarding of civil works contracts; (d) facilitate as necessary the acquisition of any supplemental baseline environmental data (e.g., ambient air, surface and groundwater quality, noise, traffic issues) in affected areas of Jargalant; (e) confirm and coordinate grievance redress mechanism (GRM); (f) review and clear CEMPs of the selected Contractors; (g) monitor contractors to ensure adherence to the EMP; (h) prepare monthly reports on EMP implementation for the PMO which will form part of the PMO’s annual environmental monitoring reports4 (EMR) to the ADB; (i) conduct consultation meetings with local stakeholders as required, informing them of imminent construction works, and updating stakeholders on latest project development activities, GRM, etc.; and (j) support training conducted by international environmental specialist (IES) of Project Implementation and Supervision Consultant (PISC) (see below), EMP compliance reviews, annual reporting, (k) ensure environmental monitoring specified by EMP is conducted. etc.

20. Contractors will develop, implement, and monitor implementation of their Contractor

4 Example EMR for ASDIP is in Appendix B. 9 EMPs (CEMP) which will be fully responsive to the EMP, and also will comply with the clauses established in bidding documents such as: (a) the list of environmental management requirements to be budgeted by the bidders in their proposals; and (b) environmental clauses for contractual terms and conditions. Table 2: Summary of Indicative Responsibilities for Uvs Aimag EMP

Responsible Phase Agencies Environmental Responsibilities MET Conduct General EIA (GEIA) of ASDIP Review and approve government EMP or DEIA of ASDIP Project EA, Jargalant PMO Request MET to conduct General EIA, comply with MET instructions Preparation Conduct IEEs in accordance with EARF pursuant to ADB SPS (2009), and DEIA or EMP in accordance with Law on EIA (2012) TRTA Consultants Support EA in preparing request to MET, and prepare IEE (SPS (2009) ADB Review and approve ADB IEE and EMP, disclose on ADB website PISC With support from ESO and SO, incorporation of environmental mitigation measures in detailed designs, and bidding documents. Detailed Jargalant SO/PMO, Update EMP and IEE to meet detailed design Provide updated EMP to Design PISC-IES ADB ADB Approve updated EMP and IEE UB-PMO, Jargalant Incorporate mitigation measures and the ADB and government EMP PMO, tendering clauses in tender documents, civil contracts, and contractor construction Tendering company management plans. PISC, ADB Review tender documents, and confirm project readiness SC and EWG Support to EA EA, Jargalant PMO Advise on implementation of mitigation measures Contractors Prepare and submit Contractor EMPs (CEMP) that is fully responsive to ADB and government EMPs Implement mitigation measures and conduct internal monitoring/ supervision ESO/PMO, Jargalant Coordinate GRM, supervise EMP implementation, conduct regular site SO/PMO inspections, prepare EMP progress reports, conduct training, and Construction support PISC in preparing annual Environmental Monitoring reports (EMR). EIA Firm/ EEM Firm EIA firm to conduct environmental monitoring specified by the EMP, ensure all environmental monitoring specified by contractor CEMPs is conducted, ensure all environmental monitoring meets ADB and Government requirements and prepare reports on all environmental monitoring conducted. EEM firm to verify those monitoring and prepare its monitoring reports. PISC-IES Advise on the mitigation measures, provide comprehensive technical support to PMO for environmental management, conduct training, conduct annual EMP compliance review, support ESO with preparing annual Environmental Monitoring reports (EMR). ADB Conduct review missions, review and approve annual EMP monitoring and progress report, including disclosure Jargalant PMO Conduct EMP compliance review, instruct PIU-DBM and APO on environmental management requirements, and prepare EMRs until PCR is issued Operation EIA Firm/ EEM Firm As above for construction phase, conduct environmental monitoring and reporting specified by EMP for operational phase. ADB Review and approve EMP monitoring and progress reports, and disclose on ADB project website ADB = Asia Development Bank; ESO = Environmental Safeguards Officer of UB-PMO; PISC = Project Implementation and Supervision Consultant, IES = International Environment Specialist of PISC; SO = Safeguard Officer of Jargalant PMO, EA = Executive Agency (MCUD); EEM = External Environmental Monitoring Firm; MET = Ministry of Environment and Tourism; DEIA = Detailed Environmental Impact Assessment; IEE = Initial Environmental Examination; EMP = Environmental Management Plan; EMR = Environmental Monitoring Report. Source: Asian Development Bank.

10 21. Affected communities will assist the Jargalant PMO and benefit from: (a) public disclosure of the Tranche 1 IEE, Khovd Aimag EMP and contribute information to EMRs of Khovd EMP, (b) the community awareness program on health and safety impacts of Tranche 1 implementation; (c) establishment of health and safety baseline data prior to construction; (d) provide input and when requested review EMRs and results of environmental monitoring by contractors reports which will be available at Jargalant community offices, and (e) ensure necessary corrective actions are taken for reported environmental/social exceedances that are confirmed as being caused by Contractor negligence. The available monitoring information, the GRM, and general participation of the affected communities identified above will result in the direct involvement of the community with contractor performance.

22. A licensed EIA Firm will be engaged to conduct any required supplemental baseline data collection prior to start of construction phase, and environmental monitoring during construction and operation phases following the Monitoring Plan of the EMP. The EIA Firm will comply with Mongolian Quality Assurance/Control procedures and regulations for sampling and monitoring of environmental media and will assess compliance with Mongolian environmental quality standards for ambient air, water and noise quality. The EIA firm will submit environmental impact monitoring reports to the PMO in Jargalant.

23. The International Environment Specialist (IES) of Project Implementation and Supervision Consultant (PISC), with support from the ESO and SO is responsible for providing technical advice, guidance, and “hands-on training” to the EWG and EA for EMP implementation of Tranche 1. The IES-PISC will support the ESO/SO and EA with (a) detailed design and project preparation; (b) training, (c) assistance with EMP compliance monitoring; (d) assistance to PMO with preparation of annual EMRs for ADB; (e) identifying environment-related implementation issues and necessary corrective actions; and (f) undertaking site visits as required.

24. Asian Development Bank (ADB) is responsible for reviewing relevant documents for clearance purposes, and conducting periodic review missions to review, amongst other things, the environmental aspects of Tranche 1. For example, review and clearance will be required for the updated EMP at detailed design phase of Tranche 1, and for subsequent annual EMRs during implementation phase of Tranche 1.

III. SUMMARY OF POTENTIAL IMPACTS

25. The significant impacts of Tranche 1 of ASDIP in Jargalant are positive which will arise from: (a) significant increases in the standard of living of the affected communities which will be caused from the major improvements to the diverse array of urban infrastructure and services; and (b) the modern agropark developments. The agropark developments will; (i) increase the quality of meat and vegetable production enabling access to previously inaccessible lucrative international markets thereby strengthening agricultural livelihoods and incomes; (ii) ultimately reduce the number of livestock which will reduce livestock overgrazing leading to pastureland rehabilitation; and (iii) from (ii) significantly reduce the carbon emission (i.e., CO2, CH4,) footprints of the affected project areas.

26. The potentially negative impacts of the ASDIP in Jargalant that are addressed by the EMP are summarized in Table 3. These impacts focus on: (i) short-term disturbances and impacts caused from the civil works activities of the construction phase of the different project components; (ii) potential water shortages caused from planned expansion of potable water supplies and water consumption by Agropark such as new meat processing facilities; and (iii) potential increased air pollution from increased emissions from the existing coal-fired heating plant in Jargalant arising from planned expansions to hot water supply network. The short-term construction disturbances and impacts, and the potential water shortages and air pollution will be managed and mitigated with the Mitigation and Monitoring Plans provided below. 11 27. No land acquisition, resettlement, or compensation for affected households (AH) in Jargalant will be required which is reported in detail in the separate Land Acquisition and Resettlement Plan (LARP) for the ASDIP.

Table 3: Summary of Potential Impacts of ASDIP in Jargalant

Pre-construction Phase

• No land acquisition, resettlement or compensation will occur in Jargalant

Construction Phase

Demolition and disposal of traditional ger houses and site remediation: • The partial or complete demolition of khasha homesteads in Alagtolgoi Bag will not produce toxic materials because the traditional ger houses and wooden buildings do not contain toxic materials such as asbestos. Family pit latrines will be destroyed and filled in with soil following ongoing procedures of the ADB On-site Sanitation Project in UB. Soil near pit latrines will be spray-disinfected with a bactericide. Upgraded and expanded underground utility trunk lines (potable water, hot water, wastewater) above utilities (electricity, communications), upgraded and new roads, drainage, new water canals, rehabilitated riverbanks, and new and rehabilitated buildings (modern ger apartments, WWTPs, WTPs, meat processing facilities, laboratories, schools, hospitals, community centers, and clean-up and fencing of dumpsites: • Common disturbances and impacts from civil works are defined by (i) reduced and/or blocked public access and pedestrian movement, (ii) disrupted business and recreation, (iii) noise, dust and air pollution caused by increased truck traffic and equipment use, (iv) soil and surface water pollution caused by equipment operation and maintenance and soil erosion, (v) public and worker accidents, (vi) disruption of traffic and increased traffic accidents, (vii) solid and domestic waste from temporary worker camps, (viii) social issues and community problems caused by migrant workers, (ix) potential disturbance to cultural property and values, schools, hospitals, and community centers. Disruption of utility services: • The extensive rehabilitation and expansion of infrastructure and utilities in Jargalant will undoubtedly cause periods of utility outages for residents and businesses. Where possible temporary auxiliary or alternate utility service will be supplied to minimize the disruptions to the community. Quarries and borrow pits: • Existing local borrow pits and quarries approved by Khovd Aimag Department of Environment (DoE) will be used. This requirement will be included in construction package tender documents including provisions that no new pit or quarry will be created, and, no new lands will be disturbed, and only proper and safe site restoration is needed after the pits and quarries are used.

12 Batch concrete and asphalt plants: • Temporary batch plants for asphalt and concrete may be used for the infrastructure works in the urban areas. Batch plants potentially act as point sources of environmental and aesthetic pollution for the affected sites and local community. The issues arise from potential wind and water erosion (dust and sedimentation) from stockpiles of the raw materials of sands and other aggregates, chronic noise and public safety risks from batch processing and heavy truck traffic to/from the plants. Improper handling and storage of raw materials can also cause soil and surface water pollution from the curing chemicals in cement and hydrocarbons from (e.g., oil and thinners) for asphalt. • Best practice methods must be conducted to manage the creation, operation, and ultimate decommissioning of temporary batch plants. The contractor must follow best practice method stipulated by the World Bank (IFC) EHS Guidelines for 1) Cement and Lime Manufacturing, 2) Construction Material Extraction; and 3) Retail Petroleum Networks. The recent USEPA (2014) Code of practice Concrete batch processing can also be consulted. Potential disrupted domestic water supplies • The ongoing practice of manual transport of bottled water from local kiosks to home in Jargalant for domestic use could easily become disrupted from construction activities.

Dumpsite rehabilitation: • Tranche 1 will conduct a detailed needs assessment of solid waste management in Jargalant including operation of the dumpsite and an assessment of the water table depth and groundwater quality. The dumpsite will also be cleaned and fenced to contain and prevent the continuation of solid waste wind-blow across land. The depth of the water table and groundwater quality at the existing dumpsite is important to ensure that groundwater is not being contaminated by the garbage. Operation Phase

Planned expansion of central hot water heating in Jargalant could lead to increased air pollution because the heating plant will not be upgraded by Tranche 1 other than possibly a new water pump, and current emissions of plant do not meet national or international standards (i.e., IFC-EHS, WHO 2007).

Planned increased extraction of groundwater for expanded potable water supplies, and new extractions of groundwater for the Agropark facilities such as the meat processing facilities could create water shortages for those project components, and for other users of the water resources in greater Jargalant. The feasibility estimates of water requirements of the project components, and available sustainable groundwater supplies need to be confirmed at detailed design stage.

Monitoring of effluent quality and water quality of receiving waters is required for the new WWTP in Jargalant, and new wastewater treatment for the Agropark facilities to confirm that new wastewater treatment facilities meet targeted international standards (i.e., IFC-EHS 2007). Source: Asian Development Bank.

IV. PUBLIC CONSULTATION

28. The stakeholder consultation program developed for Jargalant began with the consultations with affected stakeholders on the feasibility design of Tranche 1 (see chapter V of IEE). The second step will be to disclose the draft IEE to the same affected stakeholders to obtain their review and comment. Information disclosure and consultation of affected stakeholders will

13 continue during the pre-construction phase, throughout the construction phase via the GRM (chapter G of IEE) and will continue into the operation phase of Tranche 1. 29. A key element of the successful consultation and meaningful input of stakeholders affected by Tranche 1 of the project will be monitoring of the efficacy of the engagement of project stakeholders. During the pre-construction, detailed design phase the stakeholder engagement plan will be finalized by the PISC with close input from the EA (MCUD). Throughout the construction phase of the project stakeholder engagement along with implementation of the GRM will be monitored by the PISC with support from the PMO in Ulaanbaatar, and the three Aimag PMOs. During the operational phase of completed Tranche 1 The MCUD and DBM with support from the three Aimag governments will take responsibility for monitoring the continued engagement and consultation with the affected urban and herder communities.

V. MITIGATION PLAN

30. The impact mitigation measures of the EMP are presented in a comprehensive mitigation plan in Table 4. Similar to the IEE the mitigation plan is structured by the three development phases of ASDIP defined by pre-construction; construction; and post construction operational phases. The mitigation plan addresses the environmental issues and concerns raised at the stakeholder consultation meetings.

31. The mitigation plan combines construction phase impacts that are common to project components, for which, single mitigation measures are prescribed. In this way common mitigation measures are not re-stated numerous times creating unwieldy and unnecessary redundancy. However, potential impacts and required mitigations that are specific to a project component are identified, and common mitigations that are particularly important for a potential impact on an environmental or cultural component are emphasized where needed.

32. The mitigation plan identifies potential impacts, required mitigations, responsible parties, location, timing, and indicative costs. As indicated in the description of the Institutional Arrangements for the EMP above, the PMO-ALAMGac is responsible for the environmental management of the public infrastructure investments with support from MOFALI on the environmental management of the public agribusiness and pastureland investments. The PIU- DBM will oversee the management of all private sector investments either directly or through the Xac Bank and Khan Bank FIs. The mitigation plan by design is comprehensive in order for the plan to be updated easily to meet the final detailed designs of Tranche 1 in Jargalant.

10 Table 4: Mitigation Plan

Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation Pre-Construction, Detailed Design Phase of ALL Infrastructure and Agropark Components Confirmation No negative 1. Participating khasha households All affected Before See LARP See LARP PMO LARP of required environmental in Alagtolgoi well informed of persons in l project committees resettlement, impacts ASDIP implementation. Aimag project implemented and Procedures and schedule for areas compensation ger redevelopment must be Finalization of No negative distributed to affected khasha As part of No PMO levels of environmental ahead of initial meetings. reporting on marginal Khasha impacts on DD of cost participation in participants and Tranche 1 Alagtolgoi non-participants Disclosure, No community 2. Initiate Information Disclosure For all Beginning of Quarterly No PMO PMO/PISC and impacts and Grievance Mechanisms, construction project next marginal engagement of and IEE distributed to sites. PubCon cost community community. report GoM No negative 3. Notify MET of project initiation For all sites Before As required No PMO/MET PISC-IES approvals impact to ensure EIA requirements initiation of by PMO marginal complete, and obtain required construction reporting cost project permits and certificates. Sustainable Insufficient 4. Confirm local groundwater and Catchments of Before As required No PISC/PMO PISC water supply water supply for surface water availability with WTP facilities, finalizing by detailed marginal assessment project and assessments (hydrogeology) and Agropark size of water design (DD) cost other all users during low flow periods at sites consuming and DD of components potentially components reporting requiring large volumes of (see 6x water (e.g., meat processing below) facilities). 5. Conduct assessment of water consumption of other local and downstream users of water resources. Detailed Minimize 6. Work with PISC to complete Final siting Before Once with No PMO EIA Firm designs of negative detailed designs of construction updated marginal Tranche 1 environmental components. Ensure the initiated detailed cost completed, impacts following measures are design included: documents (i) confirm water requirements of all project components with

Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation focus on agro components, (e.g. meat processing facilities); (ii) spill management prevention and emergency response plans for all construction sites; (iii) no disturbance or damage to culture property and values; (iv) no unnecessary cutting of trees; (v) after receiving permit from DoE locate all required aggregate borrow pits away from human settlements with fencing and access barriers; (vi) plan ahead to ensure no disruption to normal pedestrian and vehicle traffic along all Ger pilot roads and all construction sites with established contingency alternate routes; (vii) plan to notify and provide residents and merchants of construction activities and schedule to minimize disruption to normal household, community, and commercial activities; (viii) measures to prevent or minimize disturbances to affected schools and cultural/social centers; (ix) site remediation and restoration plan for all construction sites; (x) validate sustainability of water consuming components with accurate 12

13 Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation DoE. All sites n Before Once with See PMO/EIA PISC-IES 12. Identify any/all new potential Jargalant construction updated Monitoring Firm environmental impacts of initiated EMP Plan below Tranche 1 and include in EMP. 13. Submit updated EMP including any new potential impacts to MCUD and ADB to review. 14. Clarify individual mitigation management sub-plans for use in CEMPs: a) Construction drainage; b) Soil erosion; c) Noise and dust; d) Contaminated spoil disposal; e) Construction solid and wastewater management and disposal; f) Construction and urban traffic congestion; g) Utility and power disruption; h) Worker and public safety; i) Tree and vegetation removal and site restoration; j) Construction materials acquisition, transport, and storage, and k) Cultural chance finds. The scope of chance finds procedure must be reviewed at DED to ensure it includes all defined excavation sites for the final designs of utility trunk lines and all other infrastructure. 15. Special mitigation subplan for Alagtolgoi must be finalized for khasha housing demolition, site clearing, soil remediation, and disposal of residual khasha coal supplies and surplus homestead appliances. Subplan can be part of worker and public safety subplan. 16. Special subplan must be available for disposal of any 14 Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation asbestos that might be found in the Khasha homesteads that will be demolished. 17. Update cost of EMP. Confirm GoM No negative 18. Notify DoE to confirm locations All areas in Before As No PMO/MET PISC-IES approved impact of sites for borrow pits and Jargalant construction required in marginal construction disposal areas for construction PMO cost waste disposal for Jargalant and obtain report sites required permits. Develop bid No negative 18. Ensure updated EMP is All areas in Before Once for No ADB/PMO PISC/Tender documents environmental included in contractor tender Jargalant construction all tender marginal company impact documents, and that tender begins documents cost documents specify required contractor-defined CEMPs (#13) that also must be budgeted. 19. Specify in bid documents that contractor must have experience with designing and implementing CEMPs or must provide staff with the experience. Create No negative 20. PMO/PISC to review All areas in Before Once in No PMO PISC-IES awareness of environmental potential locations of Jargalant construction PMO marginal physical impact physical cultural resources, begins report cost cultural and explain possible PCR to resources in contractors area Obtain and Prevent or 21. Contractors to comply with For all Beginning Once in No PMO PISC/ activate minimize all statutory requirements construction of PMO marginal contractors permits and impacts set out by GoM for use of sites constructio report cost licenses construction equipment, and n operation construction plants such as concrete batching. Capacity No negative 22. Develop and schedule For all project Before Initially, No PMO/PISC PISC development environmental training plan for PMO/PISC- areas in constructio refresher marginal impact IES to be able to fully Jargalant n begins later if cost implement EMP, and to needed in manage implementation of PMO training mitigation measures by plan 15

Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation contractors. 23. Create awareness and training plan for contractors whom will implement mitigation measures. Recruitment of Spread of 24. Use local workers as much as All worker Throughout Worker hiring No PMO Contractor’s bid workers sexually possible thereby reducing #s of forces. construction stages in marginal documents transmitted migrant workers. phase procurement cost disease COVID-19 safety plan report and management – prescreening COVID-19 ahead of works. Establish early screening measures and procedures to ensure that all new program personnel are tested negative before commencing on-site work. See also requirements under occupational health and safety (Construction Phase, below and see Attachment 1) for preparation of a COVID-19 health and safety plan. Organize and conduct training on the program EMP for appropriate staffs of the PMO, IA, contractors, and CSCs

Construction Phase of ALL Urban and Agropark Infrastructure Initiate EMP Prevent or 25. Initiate updated EMP and For all Beginning of Once in No PMO/PISC contractor and sub-plans, minimize CEMPs including individual construction construction 1st EMR marginal impacts management sub-plans for sites cost different potential impact areas that are completed in pre- construction phase (see below).

16 Operation of Pollution and 26. Locate worker camps away Any Throughout Monthly No PMO/PISC contractor worker camps social from human settlements. temporary construction Contractor marginal problems, e.g., 27. Ensure adequate housing worker camp phase reports cost STDs, and waste disposal facilities or staging disputes, including pit latrines and area fights, garbage cans. robberies 28. A solid waste collection program must be established and implemented that maintains a clean worker camps 29. Locate separate pit latrines for male and female workers away from worker living and eating areas. 30. A clean-out or infill schedule for pit latrines must be established and implemented to ensure working latrines are available at all times. 31. Worker camps must have adequate drainage.

17 Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation 32. Local food should be provided to worker camps. Guns and weapons not allowed in camps. 33. Transient workers should not be allowed to interact with the local community. HIV Aids education should be given to workers. Prepare and implement a coronavirus (COVID-19) health and safety plan to address COVID-19 health risks. The plan will be prepared in line with government regulations and guidelines on COVID-19 prevention and control, and in consultation with public health agencies in the area. 34. Camp areas must be restored to original condition after construction completed. Training and Prevent of 35. Implement training and PMO/APO Beginning After each No marginal PMO/PISC PISC-IES capacity impacts awareness plan for PMO/APO offices, of event in cost through and contractors. (including construction construction PMO EMR education Occupational health and sites report safety, including (i) prevention and control of transmissible diseases and HIV/AIDS, (ii) implementation of COVID-19 health and safety plan) Operation of Pollution, 36. All selected borrow pits should be All borrow pits Throughou Monthly No marginal PMO/PISC contractor borrow pits, injury, reviewed by DoE. and t Contractor cost increased 37. Select pits in areas with low construction constructio reports construction gradient and as close as possible areas. n phase traffic to construction sites. congestion 38. Required aggregate volumes must be carefully calculated prior to extraction to prevent wastage. 39. Pits and quarries should not be located near surface waters, houses, or cultural property or values. 40. All topsoil and overburden removed should be stockpiled for later restoration. 41. All borrow pits and quarries should have a fence perimeter with signage to keep public away 42. After use pits and quarries should be dewatered and permanent fences installed with signage to keep public and domestic animals such as cows, sheep and goats out, and restored as much as

Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation possible using original overburden and topsoil. 43. Unstable slope conditions in/adjacent to the quarry or pit caused by the extractions should be rectified with tree planting. Transport of Pollution, 44. Define and schedule how For all Throughou Monthly No marginal PMO/PISC contractor construction injury, materials are extracted from construction t Contractor cost materials, and increased borrow pits and rock quarries, areas. constructio reports storage of construction transported, and handled and n phase materials on site traffic stored at sites. congestion 45. Define and schedule how fabricated materials such as steel, wood structures, and scaffolding will transported and handled. 46. All aggregate loads on trucks should be covered. 47. Piles of aggregates at sites should be used/or removed promptly, or covered and placed in non- traffic areas 48. Stored aggregates well away from all human activity and settlements, and cultural (e.g., schools, hospitals), and ecological receptors. Bitumen batch plants and handling areas should be isolated from residential and commercial areas. Asphalt Air pollution, 49. Contractors must be well trained For all Throughout Monthly No marginal PMO/PISC contractor production, and land and and experienced with the construction construction Contractor cost application water production, handling, and areas. phase reports contaminatio application of bitumen. n, and traffic 50. All spills should be cleaned and access immediately and handled as problems, per hazardous waste management plan, and according to GoM regulations. 51. Bitumen should only be spread

18 Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation on designated roadbeds, not on other land, near or in any surface waters, or near any human activities. 52. Bitumen should not be used as a fuel. Implement spoil Contamination of 53. Uncontaminated spoil to be All excavation Throughout Monthly See PMO/PISC contractor management land and surface disposed of in DoE-designated areas construction Contractor Monitoring sub-plan waters from sites, which must never be in or phase reports Plan for excavated spoil, adjacent surface waters. contaminated and construction Designated sites must be soil analyses waste clearly marked and identified 54. Spoil must not be disposed of on sloped land, near cultural property or values, ecologically important areas, or on/near any other culturally or ecologically sensitive feature. 55. Where possible spoil should be used at other construction sites, or disposed in spent quarries or borrow pits authorized by DoE as per requirements of Law on Waste 56. A record of type, estimated volume, and source of disposed spoil must be recorded. 57. Contaminated spoil disposal must follow DoE/GoM regulations including handling, transport, treatment (if necessary), and disposal. 58. Suspected contaminated soil must be tested, and disposed of in designated sites identified as per DoE regulations. 59. Before treatment or disposal contaminated spoil must be covered with plastic and isolated from all human activity.

19 Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation Implement solid Contamination of 60. Management of general solid All Throughout Monthly No marginal PMP/PISC Contractor and liquid land and surface and liquid waste of construction construction construction Contractor cost construction waters from will follow DoE/GoM regulations, sites and phase reports waste sub- plan construction and will cover, collection, worker camps waste handling, transport, recycling, and disposal of waste created from construction activities and worker force. 61. Areas of disposal of solid and liquid waste to be determined by DoE. 62. Disposed of waste should be catalogued for type, estimated weigh, and source. 63. Construction sites should have large garbage bins. 64. A schedule of solid and liquid waste pickup and disposal must be established and followed that ensures construction sites are as clean as possible. 65. Solid waste should be separated and recyclables sold to buyers in community. Hazardous Waste 66. Collection, storage, transport, and disposal of hazardous waste such as used oils, gasoline, paint, and other toxics must follow DoE/GoM regulations. 67. Wastes should be separated (e.g., hydrocarbons, batteries, paints, organic solvents) 68. Wastes must be stored above ground in closed, well labeled, ventilated plastic bins in good condition well away from construction activity areas, all surface water, water supplies, and cultural and ecological

Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation sensitive receptors. 69. All spills must be cleaned up completely with all contaminated soil removed and handled with by contaminated spoil sub-plan. Implement dust Unnecessary 70. Regularly apply wetting agents to All Fulltime Monthly No marginal PMO/PISC Contractor management dust pollution exposed soil and construction construction Contractor cost sub-plan roads which must be budgeted in sites. reports contractor bid documents. 71. Cover or keep moist all stockpiles of construction aggregates, and all truckloads of aggregates. 72. Minimize time that excavations and exposed soil are left open/exposed. Backfill immediately after work completed. Implement noise Unnecessary 73. As much as possible restrict All Fulltime Monthly No marginal PMO/PISC contractor subplan noise working time between 07:00 and construction Contractor cost pollution 18:00 during summer sites. reports construction work period, i.e., in particular are activities such as pile driving. 74. Maintain all equipment in proper working order 75. Replace unnecessarily noisy vehicles and machinery. 76. Vehicles and machinery to be turned off when not in use. 77. Construct temporary noise barriers around excessively noisy activity areas where possible. Implement Loss or 78. Develop carefully a plan of All Fulltime Monthly No marginal PMO/PISC, contractor water supply, disruption of days and locations where construction Contractor cost Utility heating, and water supply, outages in utilities and sites. reports representative electricity heating, and services will occur or are disruption sub- electricity expected. plan 79. Contact local utilities and

Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation services with schedule, and identify possible contingency back-up plans for outages. 80. Contact affected community to inform them of planned outages. 81. Try to schedule all outages during low use time such between 24:00 and 06:00. Implement tree Damage or 82. Contact DoE/MET for advice All Beginning Monthly No marginal DoE/PMO/ contractor and vegetation loss of trees, on how to minimize damage construction and end of Contractor cost PISC removal, and vegetation, to trees and vegetation. sites. ASDIP reports site restoration and 83. Restrict all tree and sub-plan landscape vegetation removal to strict road and utility alignments. 84. Prevent tree removals, and install protective physical barriers around trees that do not need to be removed. 85. All areas to be re-vegetated and landscaped after construction completed with allocated budget. Consult DoE/MET to determine the most successful restoration strategy and techniques. Aim to replant three trees for each tree removed. Implement Land erosion 86. Berms, and plastic sheet fencing All Throughout Monthly No marginal PMO/PISC contractor erosion control should be placed around all construction construction Contractor cost sub-plan excavations and earthwork areas sites phase reports specifically to protect Buyant river. 87. Earthworks should be conducted during dry periods. 88. Maintain a stockpile of topsoil for immediate site restoration following backfilling. 89. Protect exposed or cut slopes with planted vegetation and have a slope stabilization protocol

Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation ready. 90. Re-vegetate all soil exposure areas immediately after work completed. Implement Public and 91. Proper fencing, protective All Fulltime Monthly No marginal PMO/PISC contractor worker and worker injury, barriers, and buffer zones should construction Contractor cost public safety and health be provided around all sites. reports sub-plan construction sites and along all roadways 92. Sufficient signage and information disclosure, and site supervisors and night guards should be placed at all sites 93. Worker and public safety guidelines of DoE/GoM should be followed. 94. Speed limits suitable for the size and type of construction vehicles, and current traffic patterns should be developed, posted, and enforced on all roads used by construction vehicles. 95. Standing water suitable for disease vector breeding should be filled in. 96. Worker education and awareness seminars for construction hazards should be given at beginning of construction phase, and at ideal frequency of monthly. A construction site safety program should be developed and distributed to workers. 97. Appropriate safety clothing and footwear should be mandatory for all construction workers. 98. Adequate medical services must be on site or nearby all construction sites. 99. Drinking water must be provided at all construction sites.

Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation 100. Sufficient lighting be used during necessary night work. 101. All construction sites should be examined daily to ensure unsafe conditions are removed. Civil works Degradation 102. Protective berms, plastic sheet All Throughout Monthly No marginal PMO/PISC contractor of water fencing, or silt curtains should construction construction Contractor cost quality and be placed between all sites phase reports aquatic earthworks for flood control resources structures to protect Buyant river 103. Erosion channels must be built around aggregate stockpile areas to contain rain-induced erosion. 104. Earthworks should be conducted during dry periods. 105. All construction fluids such as oils, and fuels should be stored and handled well away from all surface waters including Buyant river . 106. No waste of any kind is to be thrown into surface waters including Buyant river. 107. No washing or repair of machinery near any surface water including Buyant river. 108. Temporary pit latrines to be located well away from surface waters, homes, and businesses. 109. All existing drainage canals and channels to be protected the same way as Buyant river. Civil works Degradation 110. All construction fluids such as oils, All Throughou Monthly No marginal PMO/PISC contractor of terrestrial and fuels should be stored and construction t Contractor cost resources handled well away from both sites constructio reports rivers. n phase Implement Traffic 111. Schedule construction vehicle All Fulltime Monthly No marginal PMO/PISC contractor

24 Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation construction and disruption, activity during light traffic construction Contractor cost urban traffic accidents, periods. Create adequate sites reports sub- plan public injury traffic detours, and sufficient signage and warning lights. 112. Post speed limits, and create dedicated construction vehicle roads or lanes. 113. Inform community of location of construction traffic areas, and provide them with directions on how to best co-exist with construction vehicles on their roads. 114. Demarcate additional locations where pedestrians can develop road crossings away from construction areas. 115. Provide construction road and walkway lighting. Implement Loss of 116. Provide adequate short-term All areas near Design and Monthly No marginal PMO/PISC contractor construction drainage and drainage away from construction stream construction Contractor cost drainage sub- flood storage sites to prevent ponding and phases reports plan flooding. 117. Manage to prevent borrow pits and quarries to fill with water. Pump periodically to land infiltration or nearby water courses. 118. Install temporary storm drains or ditches for construction sites 119. Ensure connections among surface waters (ponds, streams) are maintained or enhanced to sustain existing stormwater storage capacity Civil works and Damage to 120. As per detailed designs all civil All At the start, Monthly No marginal PMO/PISC contractor Chance finds cultural works should be located away construction and Contractor cost sub-plan property or from all cultural property and sites throughout reports values, and values in and outside Jargalant. construction chance finds 121. Chance finds of valued relics phase and cultural values should be

Potential Activity Responsibility ASDIP Environmental Reporting Estimated Activity Impacts Proposed Mitigation Measures Location Timing Cost (USD) Supervision Implementation anticipated by contractors. Site supervisors should be on the watch for finds. 122. Upon a chance find all work stops immediately, find left untouched, and PMO notified to determine if find is valuable. Culture section of MET notified by telephone. 123. Work at find site will remain stopped until MET allows work to continue.

Construction of Agribusiness facilities 124. The mitigation measures All worker and civil Potential short- and subplans prescribed All Throughout Monthly No marginal PMO/PISC Contractor works activities, term for the construction of the construction construction Contractor cost construction disturbances and urban and agropark sites phase reports materials impacts of infrastructures detailed acquisition, infrastructures on above apply to the transport and environment and construction of the application to build communities. agropark facilities. agropark facilities

Siting of Agropark: (Disease Free establishment (DFE), Laboratory and Veterinary services, Research and development center, Meat processing facilities, Production center) Siting of Potential 125. Locate laboratory, RandD Near At final Final DD No marginal EA/PMO/ Contractor Agropark near aesthetic center, and Production center Jargalant detailed report cost PISC Jargalant impact away from homesteads, design businesses, and surface waters, stage and install fenced and treed perimeter around entire Ago- park Siting of meat Potential 126. Locate meat processing Outside At final Final DD No marginal EA/PMO/ Contractor processing aesthetic and facilities including animal Jargalant detailed report cost PISC facilities pollution holding area and WWT facility design impacts well away from homesteads, stage businesses, surface waters, and groundwater water wells, and install separate treed perimeter

Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation fence. 127. Locate wastewater of meat processing facilities (collection reservoir or discharge pipe) away from homesteads and users of receiving environment 128. Ensure either onsite or offsite plan for sustainable disposal for solid processing wastes is established. Siting of Animal Potential 129. Locate DFEs away from Near At final Final DD No marginal EA/PMO/ Contractor Disease Free aesthetic homesteads, businesses, and Jargalant detailed report cost PISC Establishment impact surface waters, and install design (DFE) of fenced perimeter stage Agropark Siting of WWTP Potential 130. Isolate WWTP inside Agropark Outside At final Final DD No marginal EA/PMO/PIS Contractor of Agropark aesthetic with a separate treed and Jargalant detailed report cost C impact fenced perimeter. design stage Operation of Urban and Agropark Infrastructure Operation of Risk of vehicle 131. Ensure enforced well marked Along all new Fulltime Biannual O&M Jargalant Roads Dept. new and accidents and safe speed limits are posted upgraded Jargalant upgraded air pollution along new and upgraded roads roads and to Roads Dept infrastructure and in areas with increased new facilities Report facilities and traffic. roads buildings 132. All vehicles that use the roads should be required to be in good working condition with regular inspection.

Operation of Equipment 133. Regular maintenance and Jargalant Fulltime Biannual O&M Utility and Jargalant new or failure and inspections of utility networks Utility and government upgraded utility maintenance including rehabilitated riverbank Jargalant / networks needs Khovd Aimag government reporting

27 Potential Responsibility ASDIP Environmental Activity Estimated Activity Impacts Proposed Mitigation Measures Location Timing Reporting Cost (USD) Supervision Implementation Regular Pollution of 134. The effective operation of the At WWTPs Quarterly monitoring of Buyant river WTTPs should be monitored to below effluent operation of new determine how well the discharges WWTP in increased load of wastewater Jargalant from the urban areas treated by including effluent the plants meet MNS standard qualities or IFC-EHS (2007) standards. Regular Air pollution 135. The existing heating plant Heating plant in Quarterly Biannual O&M Utility and Jargalant monitoring of should be monitored to Jargalant Utility and government operation of determine how well plant Jargalant existing heating emissions from the increased government plant in production of hot water deviate reporting Jargalant from MNS, or IFC-EHS (2007) emission standards.

Operation of Agropark Facilities

Meat processing facilities Monitoring of Insufficient Local water table depth and Catchment of Monthly Biannual O&M Jargalant government groundwater or process water for groundwater / surface water meat Jargalant surface water meat processing availability, and potential processing government supply to meat facilities and other shortages for meat processing facilities reporting processing groundwater users facilities and other users should facilities be monitored. Monitoring of Pollution of 136. The quality of the treated At meat Biannually treated effluent receiving effluent (e.g., BOD, oxygen, processing and solid waste Buyant river coliform bacteria, TSS, NH3, facilities, in disposal from or land NOx, TP) and the downstream receiving meat processing quality of Buyant river, and the environment facilities location of the disposal site for (river) of solid waste should be treated monitored to determine effluent, and whether waste streams meet solid waste MNS or IFC-EHS (2007) disposal site standards. Source: Asian Development Bank.

28 VI. MONITORING PLAN

33. The environmental monitoring plan for the Khovd Aimag EMP is provided in Table 5. The monitoring plan is structured by the three development phases (pre-construction, construction, post-construction operation) of Tranche 1 and consists of environmental indicators, sampling locations and frequency, method of data collection, responsible parties, and estimated costs. The purpose of the monitoring plan is to determine the effectiveness of the impact mitigations, and at the same time, document unexpected positive or negative environmental impacts of the project components. Environmental monitoring will be conducted at sites sampled for the environmental baseline of Tranche 1 project areas.

A. Environmental Quality Standards for Tranche 1 of ASDIP

34. Environmental quality standards and criteria for Mongolia are listed in Appendix A. The environmental standards provided by the Environmental, Health and Safety Guidelines of the IFC/World Bank (2007) should also be consulted to supplement GOM standards if required. The most stringent standards apply.

35. The licensed EIA firm will be required to implement the environmental monitoring under the supervision and coordination of the PMOs/PISC. The EIA firm will be responsible for the sampling and laboratory analysis of environmental parameters. The PMO and PISC- IES will coordinate monitoring work with the EIA Firm. The PMO/PISC will also provide logistical support to the EIA firm where necessary for the implementation of environmental monitoring plan. EEM firm will verify those monitoring work and prepare its monitoring reports

B. Performance Monitoring

36. Performance monitoring is required to assess the overall effectiveness of the EMP. A performance monitoring system is normally developed by the EA (MCUD) for the entire Project. Select environmental indicators that will be affected primarily by the construction and operation phases of Tranche 1 are drawn from the mitigation and monitoring plans and summarized in Table 6.

C. Reporting

37. Regular reporting on the implementation of mitigation measures, and monitoring activities during construction phase of Tranche 1 is required. Reporting is the responsibility the PMO-PISC and should be conducted in conjunction with regular meetings with stakeholders as part of the continuation of stakeholder communications. The mitigation and monitoring plans (Tables 4 and 5) summarize proposed timing of reporting. Appendix B provides an indicative monitoring report.

38. Annual reports on environmental monitoring and implementation of the Khovd Aimag EMP for Jargalant will be prepared for the MCUD by the PMO with assistance from the IES-PISC , EEM firm, and APO. The PMO’s report will compile the monthly reports provided by contractor(s), the reports of the EIA firm on monitoring, and input from the IES of the PISC. The PMO’s report will be sent to the DoE, MET and ADB. The PMO’s reports will table all indicators measured with the monitoring plan of EMP including performance monitoring indicators (Table 6) and will reference relevant MET environmental quality standards.

Table 5: Environmental Monitoring Plan

ENVIRONMENTAL MONITORING Estimated Environmental Means of Responsibility Location Frequency Reporting Cost Indicators Monitoring (USD) Supervision Implementation

Pre-construction Phase – Completion of Environmental Baseline Dry season - low Existing flow - water table Up-basin of: (i) upgraded hydrogeological Twice during depth (m) and WTPs and new wells; and reports and MNS wet season $1,000. groundwater / (ii) new Agropark in or Int’l and dry surface water Jargalant hydrogeology season supplies (m3/s) methods Groundwater quality (major ions, At new wells and at MNS (ISO) 5667- Once during $2,000. pH, nutrient forms of dumpsite 11:2000 dry season N and P, Pb, Hg, Fe, Zn), coliform bacteria Buyant river at discharge Once, during EIA Firm Existing reports and of upgraded WWTP in wet and dry (checked by Low flow monthly MNS OIML R Jargalant season EEM firm) $1,000. discharge (m3/s) 102:2001 months (high Once PMO/PISC MNS 4047:1988 and low) MNS 0017-2-3-16, 1998 MNS OIML R Emissions quality of Once during Existing heating plant in 102:2001 heating plant (CO, full operation $1,250. Jargalant MNS 4047:1988. NOx, SOx, CO2) of plants MNS (ISO) 5667- 11:2000

Confirm location of community drinking Throughout Jargalant No Consultation with water kiosk, and project site Once marginal community, sensitive cultural PISC-IES cost property and values

ENVIRONMENTAL MONITORING Estimated Environmental Means of Responsibility Location Frequency Reporting Cost Indicators Monitoring (USD) Supervision Implementation

Inventory of present Possible contaminated Using existing and past land uses that lands at all excavation reports and field could cause sites in project areas and analytical Once Once PMO/PISC EIA Firm $200. contaminated soil. methods (checked by EEM approved by MET. firm) No Public issues/interest At all project sites Hotline and Continuous Monthly PMO/PISC PMO marginal initiation of GRM cost Construction Phase of Urban and Agropark components

From all project areas Public comments and Information including hotline telephone No complaints transferred by number posted at all Continuous public input PMO marginal hotline number or construction sites in cost by GRM Jargalant

Qualitative air quality: Visual observations of dust and noise dust, noise, and Baseline sampling stations Daily visual / from contractor and $100. vibration levels and at all civil works sites qualitative public. Qualitative not sampled records indicators agreed PMO/PISC with DoE/MET Quarterly EIA firm (checked Water quality: (TSS, MNS 0017-2-3-16, 1998 during monthly by EEM firm) Fe, Zn, pH, DO, BOD5, Project sites at Buyant MNS OIML R construction $1,000 temperature, NH3, river coliform bacteria) 102:2001 periods MNS 4047:1988. Soil quality: (ecoli khasha lands that will MNS (ISO) 5667- Once during bacteria, Pb, Hg, Fe) develop modern TUs or 11:2000 khasha land $750 Apts clearing Domestic (worker) At all construction sites Visual Continuous Contractors No

ENVIRONMENTAL MONITORING Estimated Environmental Means of Responsibility Location Frequency Reporting Cost Indicators Monitoring (USD) Supervision Implementation and construction solid and worker camps observations marginal waste inside and cost outside construction sites including temporary worker camps.

Incidence of worker At, or near all construction No or public accident or sites and construction Direct observation Continuously Monthly PMO/PISC Contractors marginal injury equipment and materials cost storage sites Operation Phase

Incidence of traffic Community and accidents, and On all new and upgraded Aimag leaders, police, police reporting pedestrian injury roads in Jargalant

Incidence of failure of No new or upgraded Community Aimag Continuous Biannual marginal below ground utility government, utility cost trunk lines At all project sites in company Aimag leaders, utility companies (wastewater, heat, Jargalant observations and water), electrical reporting power, flood water channels,

Effluent quality of new WWTPs (BOD5, Jargalant Utility companies with support Quarterly Biannual O&M TN, NH3, TP, PO4, from contracted EIA firm coliform bacteria, Pb, (checked by EEM firm) Hg, Fe, Zn) MNS 0017-2-3-16,

32 ENVIRONMENTAL MONITORING Estimated Environmental Means of Responsibility Location Frequency Reporting Cost Indicators Monitoring (USD) Supervision Implementation 1998 Emissions quality of Jargalant MNS OIML R heating plant (CO, 102:2001 NOx, SOx, CO2) MNS 4047:1988. MNS (ISO) 5667- Water quality: (TSS, Buyant river upstream and 11:2000 NO2, NO3, NH3, TP, downstream of effluent PO4, BOD5, coliform Quarterly bacteria, Pb, Hg, Fe, discharges from upgraded Aimag Contracted EIA Zn) and new WWTPs Biannual O&M leaders firm (checked by EEM firm) Groundwater quality At upgraded WTPs and (NO2, NO3, NH3, TP, Biannually PO4, BOD5,) new wells Source: Asian Development Bank Bank.

33 Table 6: Performance Monitoring Indicators for ASDIP

Major 36 Environmental Key Indicator Performance Objective Data Source Component Pre-construction Phase Meetings with stakeholders contacted during IEE and Public Affected public and Minutes of new stakeholders convened Consultation stakeholders of meeting, and for follow-up consultation and Disclosure Jargalant participants list and to introduce grievance mechanism All stakeholders contacted EMP Updated EMP during IEE re-contacted for EMP follow-up consultation EMP appended to bidding Requirements of documents with clear Bid Documents CEMP37 based on Bid documents instructions to bidders for EMP CEMP Course(s) Training of By end of P-C phase, required Training course(s) outline, APO/PMO and course(s) that will be delivered and schedule participants, and implementing are designed and scheduled schedule agencies

Physical cultural Unharmed or disturbed Jargalant Cultural features resources leaders, public TSS, NO2, NO3, NH3, TP, PO4, Levels never exceed pre- Monitoring by Surface water BOD5, coliform construction baseline levels EIA firm quality bacteria, Pb, Hg, Fe, Zn EIA firm and Qualitative air Levels never exceed pre- contractor Dust, noise, vibration quality construction baseline levels monitoring reports,

Contractor and No exposure of residents to EIA firm Soil quality at re- any existing contaminated ecoli bacteria, Pb, Hg, monitoring developed khashas soil Fe, Zn, NH3 reports Jargalant Public and Frequency of injuries No increase in injuries or leaders, public, worker safety injury risk Contractor reports

Major 36 Environmental Key Indicator Performance Objective Data Source Component Public input, Frequency of Disruptions, stoppages, or contractor Traffic disruptions and detours are managed to reports, EMC blocked roadways absolute minimum. reports Operation Phase No increases above Increased traffic Traffic accidents Jargalant roads preconstruction levels Dept Operation of all Frequency of utility and services operations and Zero incidence Jargalant infrastructure supply failures leaders Groundwater and Availability to project Jargalant Sustainable supply surface water and all users leaders Surface water Effluent quality MNS 6561:2015 or IFC-EHS if Jargalant quality of new WWTP more stringent leaders Emissions Jargalant Air quality quality of MNS 6298: 2011 or IFC-EHS leaders heating plant (WHO) if more stringent

36 Example Monitoring Report in Appendix B. 37 Contractor Environmental Management Plan developed from EMP in contractor bidding document. Source: Asian Development Bank.

D. Estimated Cost of EMP

39. The costs for implementing the EMP are dominated by the completion of the hydrogeological baseline of available groundwater and surface water required for the agropark components (Table 5). The costs for implementing impact mitigation measures (Table 4) are included with the construction costs in contractor bid documents. The preliminary costs for the implementation of the EMP for Tranche 1 of ASDIP of USD $9,800.00 are summarized in Table 7. These costs include per diem technician fees, and a budget for training and capacity development of the APO/PMO and EA.

40. An estimated budget of USD $3,500.00 is required for capacity building and training for environmental management in conjunction with other capacity development activities of the project such as occurring as part of overall the capacity development component of the PPTA. The costs to implement the EMP will need to be updated by the PISC in conjunction with the PMO during the pre-construction phase.

Table 7: Indicative Costs for Khovd Aimag EMP

Estimated Cost Activity Type (USD) Pre-construction Phase Updating Environmental Baseline environmental quality $5,450.00 public consultation No marginal cost 35

Estimated Cost Activity Type (USD) Construction Phase environmental quality $1,850.00 public consultation No marginal cost

Post-construction Operation Phase environmental quality O&M public input Capacity Development and training $3,500.00 Total $10,800.00 Source: Asian Development Bank.

E. Emergency response plan

An emergency response plan (EMR) has been drafted to support the EMP and to protect the construction workers and general public. The draft EMR is outlined in Appendix C.

36 APPENDIX A: ENVIRONMENTAL QUALITY STANDARDS OF MONGOLIA

Environmental Standards relevant to ASDIP