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Technical Assistance Layout with Instructions Initial Environmental Examination May 2020 Mongolia: Aimag and Soum Centers Green and Resilient Regional Development Investment Program Prepared by the Ministry of Construction and Urban Development for the Asian Development Bank. CURRENCY EQUIVALENTS (16 May 2020) Currency Unit – Tugrik (MNT) MNT 1.00 = $0.00035 $1.00 = MNT 2,792 ABBREVIATIONS ADB - Asian Development Bank ALAMGaC - Agency for Land Management and Administration, Geodesy, and Cartography - Aimag and Soum Centers Green and Resilient ASDIP Regional Development Investment Program CEMP - contractor environmental management plan DFE - disease free establishment EIA - environmental impact assessment EMP - environment management plan EMR - environmental monitoring report GOM - Government of Mongolia GRM - grievance redress mechanism IEE - initial environment examination MET - Ministry of Environment and Tourism MCUD - Ministry of Construction and Urban Development MOFALI - Ministry of Agriculture and Light Industry NFPUG - National Federation of Pasture User Groups TOSK - provincial housing authority PIU - project implementation unit TRTA - transaction technical assistance REA - rapid environmental assessment RP - resettlement plan SPS - ADB Safeguard Policy Statement (2009) WEIGHTS AND MEASURES km - kilometer square km2 kilometer kg - kilogram ha - hectare m - meter m3 - cubic meter mg - milligram mg/l - milligrams per liter t - metric ton NOTE In this report, "$" refers to US dollars. 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 on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. EXECUTIVE SUMMARY 1. The feasibility design of Tranche 1 of the Aimag Soum 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 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. 2. The four outputs of the ASDIP are: (i) climate-resilient, low carbon, and attractive aimag and soum centers developed; (ii) rangelands for climate resilience, high carbon sequestration, and sustainable herding managed; (iii) through accessible finance, low carbon, climate resilient, and inclusive value chains created and strengthened; and (iv) capacity building and policy development for green and competitive agro-territorial development improved. 3. 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 centers of Ulaangom of Uvs Aimag, Ulgii of Bayan-Ulgii Aimag, Jargalant of Khovd Aimag, and the two soum centers 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 three selected aimag centers and two soum centers in the following two major component areas: (i) basic urban infrastructure, services, and facilities; and (ii) agribusiness facility developments including improved pastureland management. 5. The tables below summarize the planned investments. The urban infrastructure investments will occur primarily inside the Aimag centers and soum centers, whereas the agribusiness investments will occur outside but near the Aimag centers and soum centers. The new agribusiness 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 centers. A soum is an administrative subunit of an Aimag, and its center is called a soum center. There are 304 soums in Mongolia (not including Aimag centers). Soums have average populations of 4,000 and cover an average land are of 5,000 square kilometers. i Planned Urban Investments of ASDIP In Aimag And Soum Centers Urban and Agribusiness 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 and fibre optic networks Planned Agribusiness Investments of ASDIP In Aimag and Soum Centers 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 • Irrigation schemes and fodder farms * investments will be supported by infrastructure from table above 6. 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 agribusiness 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 ii Assessment Context 7. 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). 8. 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 9. A major comprehensive benefit of Tranche 1 of the ASDIP is the significant increase in standard of living of residents in the target Aimag centers and soum centers 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 centers, 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 and 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 and better contained landfills. (vii) Improved flood control and drainage. (viii) Improved utility services to community facilities such as schools, hospitals, and community centers. (ix) Significant improvements to surface water quality from improved wastewater treatment. (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
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