Land Acquisition and Resettlement Plan Progress Report Annual Report December 2020 MON: Southeast Gobi Urban and Border Town Development Project–Additional Financing Prepared by Project Management Unit for the Ministry of Construction and Urban Development of Mongolia and the Asian Development Bank. This land acquisition and resettlement plan progress report 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. 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. L3388-MON: Southeast Gobi Urban and Border Town Development Project-Additional Financing Land Acquisition and Resettlement Plan Progress Report Project Management Unit December 2020 TABLE OF CONTENTS I. INTRODUCTION AND PROJECT BACKGROUND II. SCOPE OF THIS REPORT . III. PROJECT DESCRIPTION . 1. A1.1 Arkhangai WWTP and ancillary services 2. A1.4 Uvurkhangai WWTP and ancillary services 3. A1.1 Umnugovi WWTP and ancillary services 4. A1.1 Dornogovi WWTP and ancillary services 5. A1.1 Khujirt soum, Uvurkhangai WWTP and ancillary services IV. GRIEVANCE REDRESSAL MECHANISM V. CONCLUSION Attachment: Photos ABBREVIATIONS ADB Asian Development Bank AP Affected Person / People PMU Project Management Unit LAR Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan LACUDD Land Affairs, Construction and Urban Development Division PUSO Public Utilities Service Organization WWTP Wastewater Treatment Plant GRM Grievance Redressal Mechanism I. INTRODUCTION AND PROJECT BACKGROUND A. Background On 22 April 2016 ADB approved the Additional Financing Loan of $19.4 million from its ADF resources to expand the scope and coverage of the Grant Project by adding the construction of new, modern and efficient wastewater treatment plants with integrated fixed-film activated sludge technology in four aimag centers of Arkhangai, Dornogovi, Umnugovi and Uvurkhangai. The Project aims to achieve higher livability standards of local residents through construction of new WWTPs and improvement of the wastewater treatment technology. The categorization for indigenous peoples is “C”. The project is implementing in the peri-urban areas where no specific communities of ethnic minorities or groups are living, so that, there are no adverse impacts. Therefore, the ADB Policy on Indigenous Peoples will not be triggered by the project. The project was classified as category C for involuntary resettlement. The construction works of Wastewater Treatment Plant (WWTPs) in project towns did not cause any direct or indirect, permanent or temporary LAR impacts during the construction of the WWTPs and sewer main lines will be done on the state-owned vacant land. Land Acquisition and Resettlement Plan (LARP) have been monitored and assessed according to the ADB’s Safeguard Policy Statement of 2009 and Mongolian laws and regulations. On-site inspection of potential LAR impact was undertaken for all project sites before the construction works of WWTPs and concluded there was no land acquisition and resettlement issues in any of the five project aimags of Uvurkhangai, Arkhangai, Umnugovi, Dornogovi and Khujirt soum, Uvurkhangai. As a result of the onsite inspection to identify LAR impacts during the construction of new WWTPs in Dornogiv (Sainshand), Uvurkhangai (Arvaikheer), Arkhangai (Tsetserleg), Khurjirt soum (Uvurkhangai) and Umnugovi (Dalanzadgad) soums under L3388-MON: Southeast Gobi Urban and Border Town Development Project-Additional financing, financed by ADB, it was concluded as follows: The aimag governments have confirmed that no temporary and/or permanent land acquisition and involuntary resettlement impacts would be required during project construction works of WWTPs. Accordingly, there is no need to develop LARF and LARP. This conclusion is confirmed by the letter of each relevant aimag governors and Land Affairs and Construction Urban Development Divisions. Confirmation letters that there is no need to develop a LARP for these cities were issued by relevant Land Affairs and Construction Urban Development Divisions, local professional inspection agencies and aimag governors. II. SCOPE OF THIS REPORT This land acquisition and resettlement report is contained the information of the four project cites and its land acquisition and resettlement impact of project aimags. The project has the following four civil works packages; (i) A1.1 WWTP and ancillary services in Arkhangai aimag center; (ii) A1.4 WWTP and ancillary services in Uvurkhangai aimag, Arvaikheer city; (iii) А1.3 WWTP and ancillary services in Dalanzadgad city, Umnugovi aimag; (iv) А1.2 WWTP and ancillary services in Sainshand city, Dornogovi aimag; and (v) A1.5 WWTP and ancillary services in Khujirt soum, Uvurkhangai aimag During the project implementation, the consultants and construction supervision engineers of the project have visited the project sites and supervised and monitored progress of construction works and in compliance of safeguards policy. III. PROJECT DESCRIPTION 1. The package A1.1 WWTP and ancillary services in Arkhangai aimag center Arkhangai aimag is located at the central zone of Mongolia and capital of aimag is Tsetserleg, located in 500km east of Ulaanbaatar city. The population of the aimag is about 22,248 (by National statistics agency). The old and the new WWTP is located in 1.5 km south-east of the aimag center. MCUD signed the contract with the joint venture between ChMM LLC and Enta Muhendislik Aritma Taan.San.Ve Tic.Ltd.Sti on 15 June 2018. Construction works of the WWTP in Arkhangai aimag center commenced on 14 July 2018. The WWTP facility commissioned and handed over to PUSO on October 15, 2019. The construction and technology testing and calibration of WWTP is completed and handed over to PUSO in Tsetserleg soum of Arkhangai aimag. There were no private and business entities and organizations located in this region named “Industrial area”, located in the territory of 5th bag, Erdenebulgan soum. The Governor of Arkhangai aimag has issued the ordinance on the land possession to PUSO “Ar Us Undraga” LLC. 2. The package A1.4 WWTP and ancillary services in Uvurkhangai aimag center Uvurkhangai aimag is located at the central part of Mongolia, in 450km south west of Ulaanbaatar city. The center of the city is Arvaikheer with 27.197 population (by National statistics agency). The old WWTP and new plant is located in 2km south-east of the aimag center. MCUD signed the contract with the “Comfort Impex” LLC on February 26, 2018. The contractor started construction works of WWTP on March 10, 2018 and commissioned on November 15, 2018. The day of commission act approval, the contractor conducted testing and calibration of WWTP for one year started. The contractor company carried out for engineers, technician and workers of “Ongi us suvag” LLC on-the-job training, provided dictionary for the operation of equipment, handbook and recording primary documentation. As a result of it, technological functions of mechanical and biological treatment plants are being operated normally and sludge is dewatered day to day. The construction and technology testing and calibration of WWTP is completed and handed over to PUSO in Arvaikheer soum of Uvurkhangai aimag. The Governor of Uvurkhangai aimag has issued the ordinance on the land possession of 87979 sq.m to PUSO “Ongi Us Suvag” in July 2017. Aimag Governor have confirmed by the letter no temporary or permanent land acquisition and resettlement issues required at the construction site of WWTP. 3. The package А1.3 WWTP and ancillary services in Umnugovi aimag center Umnugovi aimag is located at the southern gobi desert part of Mongolia in 600km south of Ulaanbaatar and capital of aimag is Dalanzadgad, located in 600km east of Ulaanbaatar city. The population of the aimag is about 29,733 (by National statistics agency). The old WWTP is located in 1km north east and new plant is in 5.km northern side of the aimag center. MCUD signed the contract with the joint venture between “NAB” LLC, “S and A Trade” LLC, “San“ LLC and “Baiguulamj“ LLC on 20 December 2017. Completion of the construction work is on September 30, 2021. The performance of the contract work is Progress of the construction works of WWTP in Umnugovi aimag center: “S and A Trade” LLC completed the installation and water testing of the sewer pipeline with a length of 5.1km and “NAB” LLC completed the construction of the security building, drainage pumping station building, and external fence. “San“ LLC completed the finishing works of the main factory building and mechanical treatment building, external landscaping, roads, installation of equipment and automatic works. In addition, the contractor performed the following works, such as concreting the roof of the main factory building and installing biofilm in the biological treatment building and ventilation. “Baiguulamj“ LLC completed water tests of the concrete structure of the biological treatment plant, automation of all buildings, external landscaping and finishing works of buildings. In addition, the installation of equipment has been completed. “San”LLC is assigned to perform the lining of some buildings and the plant of grass in the spring (May) of 2021. Design author, PMU and contractor