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Initial Environmental Examination Mongolia: Sustainable Tourism

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Initial Environmental Examination Mongolia: Sustainable Tourism Initial Environmental Examination Project Number: 51422-002 May 2021 Mongolia: Sustainable Tourism Development Project (Phase 2) Prepared by the Ministry of Environment and Tourism of Mongolia for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 20 May 2021) Currency unit – togrog (MNT) MNT1.00 = $0.00035 $1.00 = MNT2,820.00 ABBREVIATIONS ADB – Asian Development Bank KNNP – Charges nuur national park Aimag and Soum Centers Regional ASDIP – KUNNP – Khar Us Nuur National Park Development Investment Program ATBNP – Altai Tavan Bogd National Park MET – Ministry of Environment and Tourism COVID-19 – coronavirus disease MNS – Mongolian national standard CPP – consultation and participation plan NP – National Park CSC – Construction supervision company O&M – operation and maintenance Petroglyphic Complexes of the Mongolian CSO – civil society organization PCMA – Altai DEIA – Detailed Environmental Impact Assessment PIU – Project Implementation Unit DPAM – Department of Protected Area Management PPE – personal protection equipment DTPC – Department of Tourism Policy Coordination PSC – project steering committee EBA – Environmental Baseline Assessment RANCC – Rock Art and Nomadic Culture Center EHS – Environmental, Health and Safety SCS – Stakeholder communication strategy EIA – Environmental Impact Assessment SPS – Safeguard Policy Statement EMP – Environmental Management Plan TDS – Total Dissolved Solids GEIA – General Environmental Impact Assessment TOR – Terms of Reference GRM – Grievance Redress Mechanism TSC – Tsenkher Cave IEE – Initial Environmental Examination UVSPA – Uvs Nuur Strictly Protected Area JFPR – Japan Fund for Poverty Reduction UVTC – Uvs Tourism Complex KKNP – Khan Khukhii National Park WEIGHTS AND MEASURES °C degree Centigrade m3 cubic meter g or gm Gram m3/d cubic meters per day h Hour m3/s cubic meters per second ha hectare mg milligram km kilometer mg/l milligrams per liter Km² square kilometer mg/m3 Milligrams per cubic meter l liter mm millimeter LAeq Equivalent continuous A-weighted sound pressure level pcu/h passenger car unit per hour m meter t metric ton m/s meters per second t/d metric tons per day t/a metric tons per annum NOTES In this report, "$" refers to United States dollars. This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of Asian Development Bank's (ADB) 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 ADB does not intend to make any judgments as to the legal or other status of any territory or area. TABLE OF CONTENTS EXECUTIVE SUMMARY I I. INTRODUCTION 1 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 3 A. Overview 3 B. Mongolia’s Environmental Policy and Legal Framework 3 C. Protected Areas 6 D. Environmental Standards 11 E. Mongolia’s Occupational Health and Safety Standards 16 F. ADB Safeguard Policy Statement 16 III. DESCRIPTION OF THE PROJECT 19 A. Rationale and Environmental Benefits 19 B. Project Outputs 19 C. Design Schemes and Construction Methods 28 D. Associated, Existing, and Linked Facilities 34 IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE) 38 A. Bayan-Ulgii Aimag Subproject 38 B. Khovd Aimag Subproject 51 C. Uvs Aimag Subproject 68 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 89 A. Approach 89 B. Site-specific Environmental Risks and Mitigation Measures 93 C. Mitigation Measures to be Applied to All Construction Works 109 D. Indirect, Induced, and Cumulative Impacts 113 E. Climate Change and Greenhouse Gas Emissions 115 VI. ANALYSIS OF ALTERNATIVES 118 A. No Project Alternative 118 B. Site Locations 118 C. Design Considerations 118 VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 126 A. First Round of Public Consultation and Information Disclosure 126 B. Second Round of Public Consultation and Information Disclosure 134 C. Future Information Disclosure and Public Consultation Program 144 VIII. GRIEVANCE REDRESS MECHANISM 145 IX. ENVIRONMENTAL MANAGEMENT PLAN 145 X. ASSURANCES 145 XI. CONCLUSIONS 147 APPENDIX 1: ENVIRONMENTAL MANAGEMENT PLAN 148 APPENDIX 2: GROUND SOURCE HEAT PUMPS FOR THE TOURISM COMPLEXES 194 APPENDIX 3: COVID-19 – PROJECT HEALTH & SAFETY PLAN (DRAFT GUIDELINES) 196 APPENDIX 4: SAFEGUARD SCREENING CRITERIA FOR THE COMMUNITY REVOLVING FUND 199 APPENDIX 5: SURVEY RESULTS FROM THE TWO PUBLIC CONSULTATIONS 202 APPENDIX 6: PROTECTED AREA LEGISLATION IN MONGOLIA 221 APPENDIX 7: KEY POINTS FROM CURRENT AIMAG DEVELOPMENT PLANS 223 APPENDIX 8: CONFIRMED LIST OF SMALL FACILITIES IN PROJECT FIELD SITES 225 EXECUTIVE SUMMARY A. Introduction 1. The Government of Mongolia has requested the Asian Development Bank (ADB) to provide investment and technical assistance support for the Sustainable Tourism Development Project (Phase 2) (the project). The project will be supported by a loan of $30.0 million from the Asian Development Bank (ADB) and grant of $2.0 million. The proposed project focuses on three aimags (provinces) of western Mongolia: Bayan-Ulgii, Khovd, and Uvs. The designs comprise structural and non-structural components including: institutional strengthening to improve tourism planning and management; the establishment of two tourism complexes and two tourist streets, and supporting infrastructure (power, water, access, sanitation, and solid waste management); and small tourism and management facilities in five field sites: four protected areas and one cave system. The project designs are focused on nature-based and cultural heritage-based tourism (“ecotourism”) and aim to improve tourism planning and management and the visitor experience, while also strengthening the management of tourism risks and impacts to biodiversity and cultural heritage. The project builds upon an existing ADB loan-funded tourism project (“phase 1”) which is supporting tourism management at two national parks in north and northeast Mongolia. 2. The project executing agency is the Ministry of Environment and Tourism (MET), acting through the Department of Tourism Policy Coordination (DTPC; for the loan-funded components) and Department of Protected Area Management (DPAM; for the grant-funded components) (the implementing agencies). The project is categorized B for environment, pursuant to ADB’s Safeguard Policy Statement (SPS, 2009) which requires that an IEE, including an environmental management plan (EMP), is prepared for the project. This IEE has been prepared in accordance with the SPS. It was based on: (i) field reconnaissance surveys, stakeholder consultations, Government partner discussions, and desktop review by a consulting team (NAREE International Limited [Hong Kong] in association with HIDRIA Ciencia ambiente y desarrollo S.L. [HIDRIA, Spain], and Mongolia Water Forum Uskhelts - MWF-USKH, Mongolia), recruited by ADB to coordinate preparation of the project designs and due diligence; and, (ii) a domestic environmental baseline assessment, conducted by a national certified firm, Environ LLC Mongolia. The project environmental safeguards work was undertaken between September 2020 and March 2021. B. Background 3. Western Mongolia borders the People’s Republic of China and the Russian Federation. The region is characterized by extreme remoteness, small populations, and limited economic development. Rural communities largely depend on subsistence agriculture. The area also has a unique cultural heritage – the richest and most well-preserved rock art (ancient images on rock) in northern Asia, the highest number of ethnic groups in Mongolia, and a network of protected areas which include two World Heritage Sites and four Wetlands of International Importance. These rich natural and cultural features provide an opportunity to help alleviate local poverty through tourism. Visitor numbers to western Mongolia are small, but prior to the coronavirus (COVID-19) pandemic were increasing rapidly, principally from domestic visitors and tourists from central Asia. The project will help catalyze tourism to benefit local livelihoods through establishing facilities at sites in Bayan-Ulgii, Khovd, and Uvs, while strengthening the protection of cultural heritage and the region’s conservation values. The project is aligned with the National Program on Tourism Development (2016–2030), which prioritizes ecotourism development. ii C. Project Components 4. The expected outcome is that sustainability and inclusiveness of ecotourism in western Mongolia is increased. The project has four outputs, as follows. 5. Output 1: Inclusive planning and capacity for community-based tourism enhanced. This output will strengthen the institutional framework for tourism and increase the number of local beneficiaries from tourism. The project will (i) prepare the first tourism master plan for western Mongolia. This will define limits for tourism development, based on stakeholder consensus and growth projections, travel routes which maximize benefits for communities, and actions to support post COVID-19 sector recovery; (ii) strengthen the three aimag tourism plans, to establish targets for livelihoods, conservation and sanitation aligned with parallel ADB projects on health and border procedures; (iii) establish the first tour camp concession manual and certification program for western Mongolia to embed social and gender targets and
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