PUBLIC CONSULTATION REPORT

Subject: The follow-up public consultations on the draft Terms of Reference (TORs) of Environmental and Social Impact Assessment (ESIA) for Shuren Hydropower Plant Project (Hereinafter, referred as SHHP) Period: 10:00 -13:00 pm, 19 April, 2016 Place: School Cultural Center, Khyalganat Bag of Soum of Province

INTRODUCTION

This Public Consultation Report summarizes 1) Project background, 2) The objective of public consultation and, 3) The structure of the consultations organized, 4) Disclosure and Dissemination of the Information materials, 5) Process, 6) The key questions asked by the participants, 7) The key concerns and comments raised by the participants, 8) Key findings.

In addition, Appendix- 1 Participants list, Appendix 2 Photos and Appendix 3 Stakeholder’s matrix for Shuren HPP are attached with the report.

1) PROJECT BACKGROUND

The Mining Infrastructure Investment Support Project (MINIS), financed by the World Bank, aims to facilitate investments in infrastructure to support mining-related activities and downstream value-added processes (regardless of funding source) and to build local capacity to prepare and transact infrastructure Projects. In the scope of SHHP project, a Feasibility Study and ESIA will be carried out.

Mongolia is in danger of a serious energy shortfall as early as 2012, at which point the maximum imported capacity of 255 MW from Russia may not meet demand. Russian power has become more expensive. This shortfall will negatively affect rapid expansion of the country`s mining sector. To address energy shortfall, the Government cabinet meeting (November 2011) discussed the SHHP along with several other energy projects and recognized the SHPP as a priority project.

The main goal of the SHPP project is to supply the electricity demanded by the mining sector and to fill electricity shortfall faced by the country. Secondary goals are to provide renewable energy, enable energy independence from the Russian power system, and develop a low-cost supply of renewable energy.

The Project has been classified as Category “A” according to the World Bank Environmental Assessment Operational Policy 4.01, and therefore the proposed project must be supported by conducting an Environmental and Social Impact Assessment (ESIA) and Regional Environmental Impact Assessment (REIA) with public consultation.

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The Shuren project has been studied at pre-feasibility level, which is reported in the “Technical Study Report for the Shuren Hydropower Plant Project”. Assessment of the findings of the pre-feasibility study should serve as the starting point for the development of the ESIA work plan.The work to be done under this TOR is the ESIA; the technical and economic Feasibility Study will be contracted separately. The Feasibility Study must however be closely coordinated with the ESIA.

2) THE OBJECTIVES OF THE PUBLIC CONSULTATIONS: - To present the contents of the draft ESIA ToRs for SHHP project to the potentially impacted local key stakeholders in Khyalganat Bag of Khangal Soum of ; - View their concerns regarding the proposed project and receive their inputs and feedback on the ESIA TORs; - To consider incorporating them into the draft ESIA TORs.

3) THE FOLLOW-UP CONSULTATIONS WERE STRUCTURED IN BELOW ORDER:

Introduction of MINIS project by MINIS PMU

Presentation on the draft REA and ESIA TORs for SHHP by Mongol Management Ltd, Questions& Answers Presentation on MINIS Grievance Resolution Mechanism by PIU, Questions& Answers Discussions by all participants Distribute feedback forms Coffee break

4) DISCLOSURE AND DISSEMINATION OF THE INFORMATION MATERIALS FOR CONSULTATION ORGANIZED:

- Information materials including invitation, agenda and the draft ESIA TORs in English and Mongolian were disclosed on 02 April 2016 on MINIS website, (http://www.minis.mn/mn); - Information materials of the public consultation conducted including invitation, agenda, the draft ESIA TORs, the summary of ESIA TORs, MINIS Grievance Resolution Mechanism and Public Consultation and Information Disclosure Planning Checklist, World Bank were disclosed by sending them to the local governors via email on 02 April 2016; - Some of the key local stakeholders, particularly potentially- impacted herders live in distance in rural area. It’s complicated to provide the information about the consultation to them via email and send the consultation materials. Also, sending them via post is not feasible. So that, the local Soum and Bag governor offices cooperated with us to deliver and disseminate the consultation materials in hard copies to the herders in hand.

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5) PROCESS:

The consultation team was comprised from the representatives of Ministry of Environment, Green Development and Tourism, Ministry of Energy, World Bank and Environmental Department of Bulgan Province.

The follow-up local public consultation was held by MINIS PIU at 10:00 -13:00 pm on 19 April, 2016 at School Cultural Center Khyalganat Bag of Khangal Soum of Bulgan Province and attended by total of 36 participants including the local governors, Head of Citizen Representative Meeting, relevant CSOs, NGOs, the representatives from private sector and potentially-impacted local herders .

The presentation has been structured in easily understandable way for non- professionals. Posters and maps have been used for explaining the project areas, in particular, the potentially- affected areas.

The participants openly expressed their views and concerns regarding the proposed project and made some of useful inputs and feedback on ESIA TORs. The key questions asked and the key inputs and feedback made by the participants were carefully taken into account in the ESIA TORs. In order to respond to the consultation participants how their comments have been considered, PIU has developed the Response Matrix and publicly disclosed it.

At the end of the consultation, the feedback forms have been to seek the additional inputs on the ESIA TORs for SHHP and also suggestions on how to improve the further consultation events. In total, 30 comments were received. The most of them were positive and the consultation was assessed as well-organized.

Media coverage:

The public consultations on ESIA TOR were broadcasted through Nomin TV and My TV Selenge Province.

6) THE KEY QUESTIONS ASKED BY THE PARTICIPANTS

- Where the proposed hydropower plan will be built? It has been discussed since 1970.

- Will there be any economic significance for Khyalganat bag if the proposed project is implemented successfully?

- Has the soil studies been carried out in the project area? This is one of the very important issues.

- What’s the result of land use assessment? If hydro-technical analysis has been done? How you are doing land assessment for a herder household?

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- When Egg HHP will be constructed?

- Is Egg HHP going to be built? Is it possible to use old bridges and roads instead constructing new ones? It’s economically efficient to use them.

- Is workforce going to be provided from Khyalganat bag if dirt work and construction work started?

- I have got understanding that a new bridge will be built if the construction work stars for Eg HHP? What size of bridge has been planned to be built? What’s carrying capacity of the bridge? Is going to be permanently used? How much is it going to cost?

- What are the capacities of SHHP and EG HHPs? Can these two Hydropower power plants fully ensure the energy needs for entire Mongolia?

- What types of adverse impacts the proposed project could cause on the local communities of Khyalganat bag if the SHHP project proceeds?

- Can you please provide us the detailed information on EG HHP progress?

- Is proposed project going to cause the potential negative impacts environmentally and socially?

- How long the construction process would continue?

- How is it going effect on local herders and their lives as well as their animal husbandry?

- There two lakes in Khyalganat. Will these lakes be adversely impacted?

7) THE KEY CONCERNS AND COMMENTS RAISED BY THE PARTICIPANTS,

- Carefully consider the environmental damages to be created as result of project implementation in the ESIA TORs;

- To meet face- to - face with the potentially- impacted local herders and private firms to find out their comments and concerns about the project and ESIA TORs;

- To closely coordinate the project activities, particularly, the development of ESIA TORs shall be consistent with local Land Management Plan;

- To closely cooperate with relevant local governor offices;

- Improve stakeholder involvement into the consultation process and regularly provide information about project progress to them;

- The routine of the new road shall be through the Khyalganat bag;

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- Explain well the potential economic benefits of the proposed project to the local communities of Khyalganat bag;

- I support the implementation of this project. It is right to use the rivers with outflows for the reason of further economic improvement;

- In order to be out of dependent from other country, despite the some of the minor risks and consider the proceeding of the project;

- Use the old big bridge in Khyalganat bag;

- To involve more people into consultation process;

- To let us people of Khylagant to meet with the relevant decision makers;

- To meet with every single herders and farmers those who are living in the potentially impacted project area and get their feedback;

- Explore the potential adverse environmental impacts and reflect them along with mitigation measures in the ToRs;

- The potential negative impacts on cropland and agricultural land and measures to be taken to solve these issues shall be studied and included in the ToRs;

- Study the potential negative impacts on cropland and pasture land. To develop mitigation measures if potential adverse impacts are identified and include them in the ESIA ToRs;

- I truly support the further implementation of the project. It is a very profitable project for the Khaylganat as well as for the whole country. I would like to contribute my part to the project activities to move forward.

- I recommend the office building for you if the project unit would work here in Khyalganat bag;

- I am an Environmental Management specialist. I would like to be involved in your environmental studies as voluntary, especially in ecology, soil and water studies;

- I understand that the Government of Mongolia is aiming to construct the hydropower plant to generate the electricity by itself, and supply it to the its people. So that, I support the project;

- I consider that new job opportunities will be created in Khyalganat bag which will improve our living condition in future. Also, it is useful for the people of Khyalganat if the new road are going to be built.

8) KEY FINDINGS

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- The majority of consultation participants are supporting the implementation of the proposed project. They see the project as economically beneficial in the region;

- The participant are proposing that the local herders and farmers in Khyalganat bag are to be involved more to the consultation process;

- The participants are strongly recommending that ESIA Consultant Team to explore the potential environmental and social adverse impacts in detail;

- Also, the participants are strongly recommending that the routine of the planned new road to be constructed through Khyalganat bag.

APPENDIX 1: PARTICIPANT LIST

Local governors NGOs Representatives Herders Pensioners +CSOs from private sector 28 1 4 3 3 Total of 36 participants

APPENDIX 2: PARTICIPANT PHOTO

Participants at Meetng Hall of Participants at Meeting Hall of Participants at Meeting Hall of school in school in Khyalganat bag, Khangal school in Khyalganat bag, Khangal Khyalganat bag, Khangal Soum, Bulgan Soum, Bulgan Province, dated on Soum, Bulgan Province, dated on Province, dated on 19 April 2016. 19 April 2016. 19 April 2016.

APPENDIX 3: STAKEHOLDERS’ MATRIX OF SHUREN HPP

# Key Stakeholders Liabilities/Responsibilities 1 Project Steering Committee (Ministry of Finance- ) To oversee project implementation/ The project’s governing body, headed by the State approving project work plan. Secretary of the MoF with representatives from the different Ministries To ensure coordination among different WGs 2 World Bank Group To monitor and ensure the consistency

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and fulfillment of Operational Policy, Public Consultation and Information Disclosure, Grievance Resolution Mechanism, Contract Management, and Procurement procedures

To review the assessment reports and research studies, provide comments and clear them,

To strengthen PIU staff and support

3 Working Group (the Ministry of Energy, ME ) - Supervise and monitor daily activities of Client the selected IC and Consultant firms, and ensure their performances and approve funding 4 Project Implementation Unit (MINIS) Communication specialist manages the Grievance system, (receive complaints, send them to relevant bodies for resolution, get replied and inform back to Complainants )

To inform in regard to the proceedings of all relevant studies to WB and report the final version of the studies

To monitor and ensure the enforcement of the Safeguard policies of WBG and relevant Mongolian regulations, legislation and laws 5 Contractor (develop the Feasibility Study ) To be selected 6 Contractor (develop ESIA) To be selected 7 Panel of Experts Provide independent advice on the overall progress of the Feasibility Studies (FS) and Environmental and Social Impact Assessments (ESIA) in ensuring environmental and social dimensions of impact are adequately assessed and appropriate mitigation plans created to address impacts. Recently Social and Environmental Advisors have been selected and commenced to work 8 Selenge River Basin Administration , It’s obligated under the guidance of MEGDT to ensure water-related communication in the basin, IWRM plan, Water Law 2012 and the National water program implementations,

9 Provincial Government: Governor’s offices of Bulgan and Selenge provinces To express their views and concerns in and their regard to the project and its REA and a) Environmental Department; ESIA TORS and its actual assessments,

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b) Social Development Department; and be involved to design project and to c) Agriculture Department make decision about project d) Development policy Department are implementation by ensuring these relevant; concerns and comments to be reflected in e) Citizen Representative Meeting the TORs and actual assessments,

To support distribution and exchange of The governor’s offices at Soum level: information in regard to the project proceeding to potentially- affected or Selenge Soum of Bulgan province, Khangal Soum interested communities, of Bulgan Province, Tsagaannuur Soum of Selengeg province, Citizen Representative To support organizing meetings in the Meeting, region,

At Bag level: ( Bag is smallest administrative unit To support to solve complaints at local level ) Atar and Tsuuts bag, Hyalganat Bag, Citizen Representative Meeting 10 Local herders: To express their views and concerns in Herders in Bulgan and Selenge provinces: regard to the project and its REA and ESIA TORS and its actual assessments, In Selenge Soum of Bulgan province, Khangal and be involved to design project and to Soum of Bulgan Province, Tsagaannuur Soum of make decision about project Selenge province, Atar and Tsuuts bag, Hyalganat implementation by ensuring these Bag concerns and comments to be reflected in the TORs and actual assessments,

To support distribution and exchange of information in regard to the project proceeding to potentially- affected or interested communities,

To support organizing meetings in the region,

To support to solve complaints 11 Private sector: To express their views and concerns in regard to the project and its REA and Atar Nuur Ltd, Urgatsiin Khishig Ltd, ESIA TORS and its actual assessments, Molor-Erdene Turuu Ltd, Sumiin Nuga Ltd and be involved to design project and to make decision about project implementation by ensuring these concerns and comments to be reflected in the TORs and actual assessments 12 NGO/CSO: To express their views and concerns in regard to the project and its REA and River without Boundary Mongolia; OT Watch ESIA TORS and its actual assessments, and be involved to design project and to make decision about project implementation by ensuring these concerns and comments to be reflected in the TORs and actual assessments

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13 Stakeholders in Russian Federation and Republic To express their views and concerns in of Buryata: regard to the project and its REA and ESIA TORS and its actual assessments, and be involved to design project and to Government: Ministry of Natural Resources and make decision about project Ecology of RF, and Ministry of Natural Resources implementation by ensuring these and Ecology of RB, concerns and comments to be reflected in the TORs and actual assessments,

Local governors, farmers, fishers and other To support distribution and exchange of interested parties of the following villages, districts information in regard to the project and cities are included: proceeding to potentially- affected or interested communities, Ulan- Ude city, Ivolginskii district and Sotnikovo, Posel′ye, and NijnayaIvolga villages, To support organizing meetings in the Kabanskii distric and Kabansk, Bryansk, Kudara, region, Selenginsk, Posol′skoe, Vidrino, Tanhoy, and Babushkin villages, Pribaikalskii district and Il′inka, Turuntaeva, and Tatauravo villages, Tarbagatayskii district and Tarbagatay and Sayntui villages, Selengiinskii district and Gusinoeozero, Gusinoozersk, Barat, Suta, Selenduma, Novoselenginskoe, Noyokhonskoe, Zagustayskoe, Nizhnebukunsky, Iroyskoe, Zhargalanta, Temnik, and Ubur-Dzokoyskoe villages, Dzidinskii district and TsagaanUsun, Dzhida, BeloOzersk, and Dyrestei villages, Kyahtinskii district and Naushka, Kyakhta, Irkutsk region Universities and Research Institutes:

Siberian Branch of Russian Academy of Science - V.B. Sochava Institute of Geography, - Baikal Institute of Nature Management; - Institute of Natural Resources, Ecology and Cryology, Limnological Institute, Irkutsk State University, Faculty of Geography, Faculty of Biology and Soil Science NGOs: River without Boundary Russia, Buryat Regional Union on Lake Baikal

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