Initial Environmental Examination Project Number: 52374-001 September 2019 Mongolia: Improving Transport Services in Ger Areas Prepared by the Governor’s Office of the Capital City (GOCC) of Mongolia for the Asian Development Bank (ADB) CURRENCY EQUIVALENTS (As of 2 July 2019) Currency unit – Mongolian Tughrik (MNT) MNT1.00 = $0.00037565 $1.00 = MNT2,662.00 ABBREVIATIONS ADB – Asian Development Bank AP – affected person CCTV – closed-circuit television CSO – Civil Society Organization DI – Design Institute EA – executing agency ECOP – Environmental Codes of Practice EHSO – Environment, Health and Safety Officer EHSMP – Environmental, Health and Safety Management Plan EIA – environmental impact assessment EMP – environmental management plan GHG – greenhouse gas GOCC – Governor’s Office of the Capital City GRM – Grievance Redress Mechanism IA – implementing agency IEE – initial environmental examination JFPR – Japan Fund for Poverty Reduction GISC – Grant Implementation Safeguards Consultants MET – Ministry of Environment and Tourism MON – Mongolia MUB – Municipality of Ulaanbaatar NO2 – nitrogen dioxide PIS – Project Impact Significance PM – particulate matter PMO – Project Management Office PPCU – Project Public Complaints Unit RIS – Residual Impact Significance SO2 – sulphur dioxide SPS – Safeguard Policy Statement TDCC – Transport Department of the Capital City UB – Ulaanbaatar UNFCCC – United National Framework Convention on Climate Change USCC – Ulaanbaatar Smart Card Company WHO – World Health Organization WEIGHTS AND MEASURES oC – degree Celsius km – kilometer m – meter dB – Decibel LAeq – Equivalent Continuous Level ‘A weighting’ - ‘A’-weighting = correction by factors that weight sound to correlate with the sensitivity of the human ear to sounds at different frequencies NOTES In this report, “$” refers to US dollars, Aimag - Provincial country division and Khoroo – sub-district division This initial environmental examination is a document of the client. 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 this 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. TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................................. i I. INTRODUCTION........................................................................................................................................... 1 A. Introduction and Purpose ........................................................................................................ 1 B. Environmental Categorization, ADB and MON approval of IEE ............................................. 1 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ....................................................................... 3 A. Overview .................................................................................................................................. 3 B. Mongolia’s Environmental Policy and Legal Framework ......................................................... 3 C. Environmental Assessment Requirements of ADB ............................................................... 10 D. Environmental Standards ...................................................................................................... 14 E. Mongolia’s Occupational Health and Safety Standards ........................................................ 19 III. DESCRIPTION OF THE PROJECT ......................................................................................................... 20 A. Justification and Rationale .................................................................................................... 20 B. Proposed Solutions ............................................................................................................... 22 C. Project Components and Subcomponents under the Grant ................................................. 22 D. Project Special Features ....................................................................................................... 24 E. Proposed Financing Plans and Modality ............................................................................... 24 F. Implementation Arrangements .............................................................................................. 24 G. Project location and Status Quo ............................................................................................ 27 IV DESCRIPTION OF THE ENVIRONMENT ................................................................................................ 33 A. Geography and Topography ................................................................................................. 33 B. Meteorology and Climate....................................................................................................... 35 C. Hydrology, Surface and Ground Water Quality ..................................................................... 40 D. Air Quality .............................................................................................................................. 44 E. Noise...................................................................................................................................... 47 F. Geology, Soil and Seismology .............................................................................................. 49 G. Climate Change ..................................................................................................................... 52 H. Natural disasters .................................................................................................................... 53 I. Ecological Resources ............................................................................................................ 55 J. Physical Cultural Resources ................................................................................................. 56 K. Socio-Economic Situation ..................................................................................................... 58 L. Land Use, Urban Development Master Plan ......................................................................... 61 M. Project’s Area of Influence .................................................................................................... 62 V. ALTERNATIVE ANALYSIS .............................................................................................................. 67 A. With and Without Project Alternatives ................................................................................. 67 B. Transport Corridor Options and Public Transport Design Alternatives Selection ............ 67 VI. ANTICIPATED IMPACTS AND MITIGATION MEASURES ............................................................. 69 A. Positive Impact and Environmental Benefits ..................................................................... 69 B. Screening of Potential Impacts ............................................................................................ 70 C. Impacts and Mitigation Measures Associated with Project Location, Planning and Design ............................................................................................................................................... 74 D. Environmental Impacts and Mitigation Measures during Construction .............................. 75 E. Environmental Impacts and Mitigation Measures during Operation .................................. 85 F. Indirect and Cumulative Impacts ......................................................................................... 88 G. Unanticipated Impacts during Construction and Operation ................................................ 90 VII. CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE .................................... 91 A. Consultation during Project Preparation .............................................................................. 91 B. Future Consultation Program .............................................................................................. 98 C. Information Disclosure ....................................................................................................... 100 VIII. GRIEVANCE REDRESS MECHANISM .......................................................................................... 101 IX. ENVIRONMENTAL MANAGEMENT PLAN ................................................................................... 103 X. CONCLUSIONS .............................................................................................................................. 106 A. Project Risks and Assurances ............................................................................................. 106 B. Major Environmental Impacts and Mitigation Measures .................................................... 107 C. Overall Conclusion .............................................................................................................. 108 Appendices Appendix 1 ENVIRONMENTAL MANAGEMENT PLAN ........................................................................... 109 Appendix 2 Climate Change Assessment ..............................................................................................