Public Disclosure Authorized Managing Urban Expansion in Mongolia Public Disclosure Authorized Public Disclosure Authorized Best Practices Takuya Kamata James Reichert in Scenario-Based Tumentsogt Tsevegmid Yoonhee Kim Urban Planning Brett Sedgewick Public Disclosure Authorized THE WORLD BANK MANAGING URBAN EXPANSION IN MONGOLIA Managing Urban Expansion in Mongolia Best Practices in Scenario-Based Urban Planning Takuya Kamata James Reichert Tumentsogt Tsevegmid Yoonhee Kim Brett Sedgewick THE WORLD BANK Washington, D.C. © 2010 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved 1 2 3 4 13 12 11 10 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. 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HT169.M652M455 2010 307.1'216095173--dc22 2010013121 Cover photos: Takuya Kamata/World Bank (center); Michael Foley, former World Bank staff/consul- tant and photographer Cover design: The Word Express, Inc. Contents Foreword . vii Preface . .viii Acknowledgments . ix Currency, Abbreviations, and Defi nitions . xi Summary . xv Policy Directions and Scenarios . .xx Implications for Planning and Development . xxi CHAPTER 1. Introduction: Background, Scope, and Methods . 1 Background . .1 Scope and Methods . .3 CHAPTER 2. Development Context: Governmental, Socioeconomic, and Local Profi le . .5 Government and Administrative Structure in Ger Areas . .5 Socioeconomic Profi le of Ger Areas . .6 Current Status and Development Assumptions of Three Ger Areas . .9 CHAPTER 3. Land and Housing . .15 Legal, Institutional, and Policy Aspects . .15 General Household Characteristics . .16 Land and Housing in Ger Areas . .17 Implications of Ger Area Housing Development Options . .22 CHAPTER 4. Water Supply . .25 Status of Current Water Supply in Ger Areas . .25 City Center Ger (Naran), 11th Khoroo, Bayangol District . .27 Midtier Ger (Bayankhoshuu), 8th Khoroo, Songino Khairkhan District . .29 Fringe Ger (Sharhad), 9th Khoroo, Bayanzürkh District . .31 CHAPTER 5. Municipal Roads and Public Transportation . .33 Current Status of Roads in City Center, Midtier, and Fringe Gers . 33 Current Status of Public Transportation . .34 Options and Challenges for Service Improvements . .36 VI MANAGING URBAN EXPANSION IN MONGOLIA: BEST PRACTICES IN SCENARIO-BASED URBAN PLANNING CHAPTER 6. Solid Waste Management . .45 Overview of Current Solid Waste Management in Ger Areas . .45 Options for Service Improvements for Solid Waste Management . .48 Financial and Economic Implications for Improved Solid Waste Service . .53 CHAPTER 7. Heating . .59 Current Status of Heating in Ger Areas . .59 Options for Service Improvements and Financial Implications . .62 CHAPTER 8. Electricity . .69 Overview of Current Status of Electricity . .69 Current Status of Electricity in Ger Areas . .71 Options for Service Improvements in Ger Areas . .72 Concluding Remarks . .74 CHAPTER 9. Education and Health Services . .75 Current Status of Education and Health Service Provision in Ger Areas . .75 Options for Service Improvements and Financial Implications . .79 CHAPTER 10. Conclusion . .81 Implications for Planning and Development . .82 ENDNOTES . .85 APPENDIXES . .89 A. Technical Note on the Analysis of the 2008 Household Socioeconomic Survey . .91 B. City Center Ger Planning Illustrations . .92 C. Ulaanbaatar District Statistics . .94 D. Distribution and Distances of Water Kiosks . .95 E. Plan of Water Supply Pilot Project in Dambadarjaa . .98 REFERENCES . .99 INDEX . .101 Foreword laanbaatar (UB) city strives to become a well-developed capital with a vibrant econ- omy, a set of advanced land policies, an approach to good management, a plan for improved housing conditions, a healthy and safe environment, a developed social life, a modern legal framework, a responsive and effi cient public administration that Uenables broad participation of the community and the private sector in civil service, and an attrac- tive tourist destination in Asia. More than 60 percent of UB’s population still live in peri-urban informal settlements, known as ger areas, which lack modern infrastructure services such as piped-in water, sanitation, paved roads, public transportation, and so on. Its social infrastructure (health clinics, schools, and housing and recreation facilities) also needs to be improved. The unplanned growth of ger areas and the unprec- edented pace of urbanization bring many challenges, including unemployment, traffi c congestion, air pollution, and negative environmental impacts. The recently updated UB City Master Plan suggested the “Compact City” concept, which envi- sions a densely populated downtown area with a well-developed public transportation system and improved accessibility to the ger areas. The UB City Master Plan also revealed a need for enormous fi nancing to realize the envisioned plans and ideas. I have the pleasure of endorsing the fi ndings of the report titled “Managing Urban Expansion in Mongolia: Best Practices in Scenario-Based Urban Planning,” which has been developed by the World Bank on the basis of extensive discussions with the UB Governor’s Offi ce and with agen- cies and stakeholders. I truly believe that the options for ger area development in UB outlined in this report will serve as a guiding force for our work with the ger area residents, local communities, external partners, donors, and other stakeholders. BAT Ch. General Manager Governor’s Offi ce Capital City of Ulaanbaatar Preface he rapid expansion of Ulaanbaatar, the capital city of Mongolia, is one of the coun- try’s most critical development issues. Its population has increased by some 70 percent in the past 20 years and now accounts for 40 percent of the total population of Mon- golia. The total administrative area of the city is now 30 times larger than the origi- Tnal built-up areas. Most of the expansion took place in the ger areas: low-income areas where basic infrastructure services are poor or nonexistent. The government has developed policy directions—in its recent national and local development strategies and master plans—to better manage expansion of the ger areas. However, its practices have been mixed. The ger areas continue to expand today, improvements in urban services are slow, and the local government’s capacity to respond to these challenges is still limited. This report provides an analytical framework to assess the viability of various development sce- narios of the city. It offers cost and benefi t analyses of the choices and tradeoffs relating to housing and urban services. Policy makers and citizens of the city will be able to see the implications of the policy choices they make today. The report will serve as a vital instrument for broad public policy consultations, which are an integral part of the urban development policy dialogue between Mon- golia and the World Bank. Arshad Sayed Ede Ijjasz Country Manager for Mongolia Sector Manager East Asia and Pacifi c Region Sustainable Development Unit The World Bank The World Bank ? AcknowledgementsAcknowledgments his report is based on information from many sources and has benefi ted greatly from the input of many contributors and reviewers. The work was undertaken by a core World Bank team led by Takuya Kamata and composed of James Reichert, Tumentsogt Tsevegmid, Yoonhee Kim, and Brett Sedgewick. The following consul- Ttants formed part of the larger team by contributing to individual chapters: Namkhainyam Bus- jav (Heating), Erdenebat Ulziidalai (Electricity), Baasankhuu Manduul (Transportation), Jae-Kyu Coi and Kang-Ki Song (Solid Waste), and Geun Yong Kim and Heon-Joo Park (Land and Hous- ing). The team was supported greatly by the help of Nomuuntugs Tuvaan, Otgonbayar Yadmaa, and Vellet Fernandes. Sunjidmaa Jamba was instrumental in helping introduce the team to key government offi cials, and Altantsetseg Shiilegmaa provided key information to the team about Mongolia’s budget. Others who have contributed to this report include Mila Freire, Songsu Choi, and Salvador Rivera, who graciously served as internal peer.