Land Acquisition and Resettlement Plan Progress Report MON

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 worked cooperatively at the construction site of the joint venture company “NAB” LLC, “San LLC, S and A Trade”LLC, and “Baiguulamj” LLC in accordance with the provision 2.3 as stated prior requesting for mobilizing construction commission, Employer, design author, contractor must jointly inspect the construction facilities, and eliminate any deficiencies according to “rule for construction commission” approved by resolution under 317 in 2018 of Government of Mongolia. The conclusion was made and confirmed by the minutes of the meeting in accordance with provisions 48.5.3 and 48.5.4 Construction Code on December 05, 2020.

Prior to mobilize construction commission, it is decided that the Employer will submit a request letter on mobilization of the construction commission to aimag when the contractor completes the assignments given by the author of design drawings and PMU. The contractors planned to complete the assignment and mobilize a commission to put into operation of the construction facility, but the work was stopped due to the ban on outbreak of COVID-19. Due to this circumstance, the commissioning is postponed to April 2021.

The numerous site visits of PMU management and engineers the issues of possible LARs were discussed during the field trips in 2015. No such issues were occurred.

Aimag Governor confirmed by the letter regarding no temporary or permanent land acquisition and resettlement issues required at the construction site of WWTP.

The resolution issued by the Governor of Umnugovi aimag, the land possession right of 15 years was issued to the PUSO “Gunii Us” company.

4. The package А1.2 Wastewater Treatment Plant with ancillary services in Dornogovi aimag center

Dornogovi aimag is located at south-east gobi region of Mongolia bordering with the Inner Mongolia China. Capital is Sainshand. Is 460km from Ulaanbaatar city. As of population of Sainshand is 27,862 (by National statistics agency).

MCUD signed the contract with the contractor HNC LLC of Republic of Turkey for performing construction works of WWTP in Dornogovi aimag on 28 December 2018.

The contractor started construction work on March 27, 2019 according to construction work schedule. The following works completed by the contractor casted foundation of biological treatment block, screen building, substation building, brick laying for security building, indoor and outdoor water supply pipeline installation and 4.4 km sewerage collector pipeline in Ar and

Uvurshand, and stabilization basin of the biological treatment block, rebars for the secondary sedimentation wall, screen, external façade for substation buildings, external brick laying for industrial building, sludge processing unit, brick laying for the boiler house building and casting for covering works for the first floor and casting floor of the industrial building as well as bricklaying. Construction work performance is rated 40 percent.

A revised construction work schedule of 2020 was not approved and construction work has not started yet. The contract is terminated, thus, re-called the bidding for the construction works of WWTP.

The connection of double sewerage pipelines with D160mm and D300mm with own gravity from Ars hand to Uvur shand and 4.4 km sewerage pipes with D500 mm from old WWTP to new WWTP in Dornogobi aimag center was commissioned.

With the joint cooperation of design Company “Hydro design project” LLC and Aimag’s Land Affairs Construction Urban Development Division administration the land acquisition and resettlement arrangements were made and no resettlement issues were necessary.

The allocated plot for the WWTP was a free- standing land and the corresponding land possession certificate was directly assigned to the local PUSO Chandmani Ilch for next 15 years. Especially along the route of the 4.4 km sewage pipeline connecting Arshand (North) and Uvurshand where the planned sewage pipeline route is laid, ger district areas free and publicly owned areas were used.

The Department of land affairs and construction and urban development submitted the letter regarding no temporary or permanent land acquisition and resettlement issues required at the construction site of WWTP.

5. The package A1.5 construction work of WWTP and ancillary services in Khujirt soum Uvurkhangai aimag

Khujirt is a soum of Uvurkhangai aimag and located 84 km away from Arvaikheer. Population of soum is 2,281 (by National statistics agency).

The project consulting firm, Monhydroconstruction LLC developed the technical specifications and bidding documents for the WWTP with a capacity of 310 m3/d and sewerage pipeline of Khujirt soum, Uvurkhangai aimag.

MCUD signed a contract in the amount of MNT 3,298,500.00 with “Sanjat” LLC on June 18, 2020. Permission to start and continue construction work was issued by LACUDD in Uvurkhangai aimag and the contractor began construction work on June 24, 2020.

The contractor has completed the following works- power of the external power supply is 250kV, a complete 10/0.4kV transformer substation; connected the support of No.22 for the 10 kV overhead power supply line at the Airport of Khujirt soum in accordance with the technical specification and technical commission. Sewer pipe was installed with a length of 4432 m, D200 mm, D160 mm and double-walled polyethylene pipes and sewer pipes L3810 m, 118 wells D1000 m respectively.

In addition, 715 m steel fence, reinforced concrete foundation of the biological treatment building, an aeration tank, sedimentation tank, sludge drying bed, disinfection tanks, reinforced concrete foundation for the mechanical treatment building and casting works of sedimentation tanks of the WWTP were completed.

IV. GRIEVANCE REDRESSAL MECHANISM

Project GRM established in all project aimags for the purpose to assist and in solving issues pertaining to construction work and issues arise during project implementation. The objective of the establishment of the GRM is to redress the social, environmental and other grievances of the aggrieved persons during the construction works of WWTP.

Safeguards related complaints or disputes handled in accordance with grievance redress mechanisms established for each project aimag, coordinated by the PUSO support groups in consultation with the PMU and under the guidance of the project consultants. This mechanism was disclosed in public consultations during detailed design and in meetings during the construction phase.

Out of all four project sites, the constructions of the two new wastewater treatment plants have successfully completed and handed over to user organizations and aimag authorities of Arvaikheer soum of Uvurkhangai aimag and Tsetserleg soum of Arkhangai aimag.

V. CONCLUSION

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.

Attachment: Photos of construction sites

ARKHANGAI AIMAG

UVURKHANGAI AIMAG

UMNUGOVI AIMAG

DORNOGOVI AIMAG