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53249-001: First Utility-Scale Energy Storage Initial Environmental Examination (Update) Project Number: 53249-001 March 2021 Mongolia: First Utility Scale Energy Storage Project Prepared by the Ministry of Energy for the Asian Development Bank. This is an updated version of the draft originally posted in January 2020 available on http://www.adb.org/projects/53249-001/documents. CURRENCY EQUIVALENTS (as of 19 February 2021) Currency Unit – Mongolian Tughrik (MNT) MNT 1.00 = $0.0004 $1.00 = MNT 2,847 ABBREVIATIONS ADB Asian Development Bank AP Affected Person AQA Air Quality Agency AuES Altai-Uliastai Energy System BESS Battery Energy Storage System CEMP Construction Environmental Management Plan CES Central Energy System CITES Convention on International Trade in Endangered Species CRA Climate Risk Assessment DEIA Detailed Environmental Impact Assessment EA Executing Agency EARF Environmental Assessment and Review Framework EHS Environment, Health and Safety EIA Environmental Impact Assessment EMoP Environmental Monitoring Plan EMP Environmental Management Plan EPA Engineer-Procure-Construct FSR Feasibility Study Report GDP Gross Domestic Product GEIA General Environmental Impact Assessment GFDRR Global Facility for Disaster Reduction and Recovery GHG Greenhouse Gas GIP Good International Practice GoM Government of Mongolia GRM Grievance Redress Mechanism HDI Human Development Index IA Implementing Agency IBAT Integrated Biodiversity Assessment Tool IEC Independent Environmental Consultant (national) IEE Initial Environmental Examination ILO International Labor Organization INDC Intended Nationally Determined Contributions, Paris climate accord. IUCN International Union for the Conservation of Nature MASL Meters Above Sea Level MNS Mongolian National Standard MoE Ministry of Energy MNET Ministry of Nature, Environment and Tourism NAMEM National Agency of Meteorology and Environmental Monitoring NDA National Dispatching Center NPTG National Power Transmission Grid NREC National Renewable Energy Center OCHA United Nations Office for the Coordination of Humanitarian Affairs OM Operations Manual, ADB PCR Physical Cultural Resources PMU Project Management Unit ii PPE Personnel Protective Equipment PPTA Project Preparatory Technical Assistance PSC Project Steering Committee PV Photovoltaic SPS Safeguard Policy Statement, ADB TA Technical Assistance UNEP United Nations Environment Program WB World Bank WCS World Conservation Society WHO World Health Organization WEIGHTS AND MEASURES µg/m3 Micrograms per Cubic Meter BOD5 Biochemical Oxygen Demand, five days CaCO3 Calcium Carbonate cm Centimeter CO Carbon Monoxide CO2 Carbon Dioxide COD Chemical Oxygen Demand dB(A) A-weighted sound pressure level in decibels DO Dissolved Oxygen GWh Gigawatt Hour ha Hectare kg Kilogram km Kilometer kV Kilovolt kWh Kilowatt Hour Leq Equivalent Continuous Noise Level m Meter m/s Meters per Second m2 Square Meters m³ Cubic Meters masl Meters Above Sea Level mg/l Milligrams per Liter mg/m3 Milligrams per Cubic Meter mm Millimeter MW Megawatt MWh Megawatt Hour NO2 Nitrogen Dioxide NOx Nitrogen Oxides O3 Ozone oC Degrees Celsius pH A measure of the acidity or alkalinity of a solution PM Particulate Matter PM10 Particulate Matter smaller than 10 micrometers PM2.5 Particulate Matter smaller than 2.5 micrometers SO2 Sulfur Dioxide TDS Total Dissolved Solids TSP Total Suspended Particulates iii NOTES (i) The fiscal year (FY) of the Government of Mongolia and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars. This updated initial environmental examination 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. Your attention is directed to the “terms of use” section of the ADB 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 Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. iv TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................................. IX A. INTRODUCTION ....................................................................................................... IX B. MONGOLIA ENVIRONMENTAL POLICY AND LEGAL FRAMEWORK .................................... IX C. PROJECT DESCRIPTION........................................................................................... XI D. DESCRIPTION OF THE ENVIRONMENT ....................................................................... XIII E. ANTICIPATED IMPACTS AND MITIGATION MEASURES .................................................. XV F. ALTERNATIVE ANALYSIS ........................................................................................ XVII G. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION .......................................... XVII H. GRIEVANCE REDRESS MECHANISM ....................................................................... XVIII I. CONCLUSION ...................................................................................................... XVIII I. INTRODUCTION....................................................................................................... 1 A. THE PROJECT ......................................................................................................... 1 B. REPORT PURPOSE .................................................................................................. 1 C. APPROACH TO IEE PREPARATION ............................................................................. 1 D. REPORT STRUCTURE ............................................................................................... 1 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ......................................... 4 A. MONGOLIA ENVIRONMENTAL POLICY AND LEGAL FRAMEWORK ..................................... 4 B. APPLICABLE ENVIRONMENTAL STANDARDS .............................................................. 12 C. APPLICABLE ADB POLICIES, REGULATIONS AND REQUIREMENTS ................................ 18 III. PROJECT DESCRIPTION ...................................................................................... 20 A. THE PROJECT ....................................................................................................... 20 B. COUNTRY CONTEXT AND RATIONALE ....................................................................... 20 C. EXAMPLES OF UTILITY SCALE BESSS...................................................................... 23 D. LOCATION............................................................................................................. 24 E. BESS DESIGN CONCEPT ....................................................................................... 27 F. BESS SAFETY ...................................................................................................... 29 G. BATTERY RECYCLING ............................................................................................ 32 H. ASSOCIATED FACILITIES ......................................................................................... 33 I. IMPLEMENTATION ARRANGEMENTS .......................................................................... 33 J. IMPLEMENTATION PERIOD ...................................................................................... 33 K. PROJECT COST ..................................................................................................... 33 IV. DESCRIPTION OF THE ENVIRONMENT ................................................................ 35 A. MONGOLIA ............................................................................................................ 35 B. ULAANBAATAR AND THE PROJECT SITE .................................................................... 36 C. PHYSICAL RESOURCES .......................................................................................... 36 D. ECOLOGICAL RESOURCES ...................................................................................... 58 E. SOCIOECONOMIC PROFILE ..................................................................................... 59 F. SENSITIVE RECEPTORS .......................................................................................... 60 V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ...................................... 61 A. ASSESSMENT OF IMPACTS ...................................................................................... 61 B. ANTICIPATED PRE-CONSTRUCTION PHASE IMPACTS AND MITIGATION MEASURES ......... 61 C. ANTICIPATED CONSTRUCTION PHASE IMPACTS AND MITIGATION MEASURES ................ 62 D. ANTICIPATED OPERATION PHASE IMPACTS AND MITIGATION MEASURES ...................... 67 E. PROJECT DECOMMISSIONING.................................................................................. 72 F. PROJECT BENEFITS ............................................................................................... 73 v VI. ALTERNATIVE ANALYSIS ..................................................................................... 75 A. SITE LOCATIONS ................................................................................................... 75 B. SITE OPTIONS AT SONGINO SUBSTATION ................................................................. 78 C. BATTERY CHEMISTRY ............................................................................................ 79 D. NO PROJECT ALTERNATIVE ...................................................................................
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