MATRIX OF COMMENTS RECEIVED AND RESPONSES Public Consultation Meeting on the Draft Terms of Reference (TOR) for Regional Environmental Assessment (REA) and Environmental and Social Impact Assessment (ESIA) of Proposed Shuren Hydropower Plant and Flow Regulation of the Orkhon River and Construction of Reservoir Complex Projects July 01, 2017 Khushaat soum, MINIS Project Management Unit and expert teams of Prestige Engineering LLC and Galba Uush Doloodiin River Basin Administration of the Ministry of Environment and Tourism jointly organized a public consultation meeting on July 01, 2017, at 15:00-18:00 in the citizen’s hall of Khushaat soum of Selenge province to discuss draft TOR for REA and ESIA of proposed Shuren Hydropower Plant and Flow Regulation of the Orkhon River and Construction of Reservoir Complex Projects as required by World Bank’s Operational Policy 4.01 Environmental Assessment. Purpose of consultation: To seek feedback from potentially affected stakeholders on draft TOR of REA/ESIA, respond to their questions and capture their concerns, inputs and recommendations to strengthen TOR. Approach to consideration of feedback in the TOR: The aim of this response matrix is to demonstrate how comments and suggestions received on the TORs are taken into consideration in the TOR drafting process. Not all comments or suggestions are agreed with and acted on, but every comment and suggestion is considered and alternative approaches are explained where the feedback is not accepted. In the absence of agreement with all consultation participants to disclose names and affiliations, all comments are reproduced in the response matrix without attribution in order to preserve anonymity and promote impartial review. Participants: Herders, elderly, private businesses, NGO, Ministry of Energy and local administration staff of Khushaat soum, Selenge province

Questions/Comments MINIS Response

1 Pensioner: In the past, a team came to this As described in Section 4.1.4 soum for the information related to the Shuren Hydrological Studies, 3.2.1 HPP and water transmission project. I’m glad Meteorological and Hydrological that the Shuren HPP project is being continued. studies, Hydrological Studies in Second, I suppose without a justified scientific Orkhon river basin, River and its research and careful management I assume it ecosystem of 2.3.1 Environmental would be hard to implement the project. Issues of the draft REA/ESIA TOR, Therefore, a detailed research on the water level and flood frequency will be environmental impacts is crucial. For example, studied. These aspects will be reflected as a fisherman who is growing fish at Tavan in the REA TOR as well. Tolgoi’s Khar Usnii pond, I’d like to express my own opinion. Although in recent years We will consider including researchers we’ve had 3 floods, today Orkhon River water and scientists in the consultant team. level is low enough for a person to cross it by foot. In 2003 there’s been a drought just like As described in Subsections of Fish now. Therefore, are there any institutes Population, Fish migration, Fish specialized in testing water frequencies? It population downstream of 2.3.1 needs to be researched very carefully. I Environmental Issues and 4.1.8 Fish understand there will be a national team. From Habitats and Breeding of the draft the Mongolian side you should get advice from REA/ESIA TOR, fish issues will be people such as the mother of Sanj Bayar Dr. studied to ensure preservation and 1

Dulmaa PhD, Scientist Baasanjav. I personally protection of fish population. think that on the big reservoir you’re trying to build fish won’t be able to reproduce. A guy in Yaarmag brought Khilem fish (Acipenseroxyrinchusoxyrinchus) from China and reproduces in a dug pit. I just saw him recently and heard the number fish had been decreased. I personally support this project however a very thorough and careful research needs to be done and you need to receive the comments from the local households. 2 Citizen: What’s the size of the water complex Initial Economic, Financial and Social which you’re trying to build? Screening report anticipated that the reservoir area will occupy the largest area of 31 km2, and will be studied in more detail in the feasibility study. It will be located in Khishug-Undur soum of the aimag. Features of the dam and reservoir Dam height 66 m Dam length 300 m Reservoir storage 730 M m3 Reservoir useful storage 580 M m3 Reservoir lowest storage 150 M m3 Normal water level 1173 m High water level 1175 m Reservoir high water level 31 km2 Reservoir normal water level 28 km2

3 Resident: Does city take water from Erdenet city is currently transmitting its Orkhon river? water from Selenge River with 60 km pipeline. 4 Governor of the 3d bag: Said flow regulation - The reservoir with a total will be made on Orkhon river. How many storage of 730M m3 will be percentage of water will be regulated? 60% of created after dam construction water must flow as set forth in Law. on the Orkhon river. From created reservoir planned to use 2.5 l/s of water, 80 M m3 water will be used annually. This amount would be 6-7% of Orkhon rivers average flow. Water from the reservoir will be delivered to the Gobi region with support of underground pipelines. - As described in Section 3.1.7 Orkhon River Water Balance Study of the draft FS TOR, the balance water will be studied within the basin. Based on water balance result, suitable amount of water to be taken 2

from the reservoir to meet water demand under OGP will be estimated.

Flow regulation of the Orkhon River can create opportunities for long-term, positive benefits to urban settlements, pasture lands, agriculture, industrial water supply, tourism, fish habitats and electric power generation. Bringing water to the industrial zones of Gobi Region and generating electricity by using water flow of the reservoir will have direct economic benefits. The (Parliament) and the Government of are highly attentive of these concepts and have mentioned them in the policy documents listed in draft REA/ESIA TOR. 1. 2.

5 Governor of the 2nd bag: Was there any soil No soil shrinkage appeared. The water shrinkage during the construction of Taishur quality was not affected. For detailed HPP? Any changes in water quality? information, contact the Ministry of Energy. 6 Governor of the 3d bag: There will be created 203 km2 artificial lake at the above crossing area of the Will a reservoir be created? targeted site in respect of the implementation of Shuren HPP and the How much of square meters of land will Shuren lake area will cover the territory of the HPP cover with water in our soum? the Selenge River Basin along the Selenge, Khangal and Khyalgant bag of Which area will be impacted? Khangal soums of and some areas of Tsagaannuur, Baruunburen Khushaat soums of Selenge province.

Potential flooding area for Shuren HPP is 203 km2, lake volume is 4.3 billion m3, height of dam is 64m. Potential flooding area for OGP is 31 km2, lake volume is 730M million m3, height of dam is 66 m.

The Consultant shall identify the project influence area that could be affected during the construction and develop a 3

detailed map. ESIA and FSwill define how much land will be flooded.

7 Governor of the 3d bag: There will be created 203 km2 artificial You should conduct a careful research in regard lake at the above crossing area of the to the geographic locations where the flood targeted site in respect of the could take place and how to effectively manage implementation of Shuren HPP and the them. lake area will cover the territory of the the Selenge River Basin along the Selenge, Khangal and Khyalgant bag of Khangal soums of Bulgan province and some areas of Tsagaannuur, Baruunburen Khushaat soums of Selenge province.

Impacts will be identified during the ESIA stage and mapping will be done. 8 Private sector: In the case the areas will get There will be created 203 km2 artificial affected, then will you show us a design lake at the above crossing area of the showing exactly where? There a lot of targeted site in respect of the businesses that own livestock breeding, we’re implementation of Shuren HPP and the concerned in regard to these matters. lake area will cover the territory of the the Selenge River Basin along the Selenge, Khangal and Khyalgant bag of Khangal soums of Bulgan province and some areas of Tsagaannuur, Baruunburen Khushaat soums of Selenge province.

A total of 475 people from 113 families will be affected in Sangaltai bag area. In the artificial lake area 56 spring camps will be located, 123 family settlements will be affected and 3412.58 evaporation zones will be created in the reservoir. Two phases of study will be conducted to assess environmental and social impacts:first REA and then ESIA. Impacts for lake flooding area will be identified in ESIA stage. 9 Pensioner: Requires study on flooding. As described in Sections 4.3.2 Hydrological Study of the draft OGP FS ToR, 2.3.1 Environmental Issues, Riverine and aquatic ecosystems, 4.1.4 Hydrological Studies of the draft OGP REA/ESIA TOR, water level and flood frequency will be studied. 10 Pensioner: As described in Sections 4.3.2 Hydrological Study of the draft OGP FS Khar Unsii pond, Ishgent Lake constantly goes TOR, 2.3.1 Environmental Issues, through flood. Study issues related it. Riverine and aquatic ecosystems, 4.1.4 4

Hydrological Studies of the draft OGP REA/ESIA TOR, water level and flood frequency will be studied. 11 Citizen representative meeting: As described in Sections 4.3.2 It's important to study the frequency of flooding, Hydrological Study of the draft OGP FS increasing, decreasing and long-term average TOR, 2.3.1 Environmental Issues, run-off of river runoff. Riverine and aquatic ecosystems, 4.1.4 Hydrological Studies of the draft OGP REA/ESIA TOR, water level and flood frequency will be studied,

12 Specialist, Governor’s office: Consider these There is appearing change of fluctuation issues. Also there’s been a 20-25 m decrease in on water level of the , not the water level of the Baikal Lake last year. associated with the construction of the water facilities in territory of Mongolia. There are a number of factors that have an impact on climate change and impact of HPP on the river. In 2016, water level of Lake Baikal reached 454 m. On the other hand, water level fluctuation in Lake Baikal is normal, according to the resolution of Minister of Natural Resources and Environment of the Russian Federation. Written comments received during consultations 13 Pensioner: We have received your comments. Requires doing the comparison of meteorological As described in Sections 4.3.2 and watering levels. Hydrological Study of the draft OGP FS TOR, 2.3.1 Environmental Issues, Riverine and aquatic ecosystems, 4.1.4 Hydrological Studies of the draft OGP REA/ESIA TOR, water level and flood frequency will be studied.

14 Governmental organization: Require social We will consider this issue. impact assessment to be done. Introduce ports built in Mongolia, including the soum residents, and take a tour of the site.

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