MON: Urban Development Sector Project · Structures BNBD 40-02-06. See Annex 1 for a detailed technical design map of the Altay subproject. Scope of LAR impact: Only some the water

Resettlement Planning Document

Land Acquisition and Resettlement Plan for Improvement of Basic Urban Services in Govi-Altay Aimag Document Stage: Final Project Number: 37697 October 2010

MON: Urban Development Sector Project The Land Acquisition and Resettlement Plan for Improvement of Basic Urban Services in Govi-Altay Aimag 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.

LARP for the Altay Basic Urban Services Improvement Subproject i

L2301-MON: URBAN DEVELOPMENT SECTOR PROJECT

Land Acquisition and Resettlement Plan for the Altay Basic Urban Services

Improvement Subproject

Ministry of Road, Transportation, Construction and Urban Development Ulaanbaatar, Mongolia

October 2010

LARP for the Altay Basic Urban Services Improvement Subproject ii

LETTER OF CONCURRENCE BY THE GOVERNOR OF GOVI-ALTAY AIMAG

LARP for the Altay Basic Urban Services Improvement Subproject iii

LETTER OF CONCURRENCE BY THE MINISTER ROAD, TRANSPORTATION, CONSTRUCTION AND URBAN DEVELOPMENT

LARP for the Altay Basic Urban Services Improvement Subproject iv

ABBREVIATIONS

ADB Asian Development Bank

AH Affected household

AP Affected person

CBO Community-based organization

DOR Department of Road

EMA External monitoring agency

DMS Detailed measurement survey

GAF Grievance action form

GOM Government of Mongolia

HH Household

IRP Involuntary Resettlement Policy of ADB

LRCUDD Land Relations, Construction and Urban Development Department

LAR Land Acquisition and Resettlement

LARF Land Acquisition and Resettlement Framework

LARP Land Acquisition and Resettlement Plan

M&E Monitoring and evaluation

MRTCUD Ministry of Road, Transportation, Construction and Urban Development

NGO Nongovernment organization

OM Operations Manual (ADB)

OP Operational Procedures (ADB)

PIU Project Implementation Unit

PMU Project Management Unit

PUSO Public urban services organization

ROW Right of way

RRP Report and Recommendations of the President (ADB)

UDSP Urban Development Sector Project

WG Working Group

Notes Currency Unit Tugrugs (MNT) MNT1.00 = $0.0007584 $ 1.00 = MNT1,315.79 Exchange: average rate between 01 September and 30 September 2010

LARP for the Altay Basic Urban Services Improvement Subproject v

DEFINITION OF TERMS

Affected Household: All persons residing under one roof and eating from the same kitchen, who are adversely affected by the Project, or any of its components; may consist of a single nuclear family or an extended family group Affected People: Any person affected by loss of assets or income due to Project-related changes in the use of land, water or other natural resources Compensation: Cash or in-kind payment of the replacement cost of an asset lost due to Project-related impacts Entitlement: Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation, which are due to affected people, depending on the nature of their losses, to restore their economic and social base Host Population: Community residing near the area where the APs are relocated Income Restoration: Reestablishment of income sources and livelihoods of APs Involuntary Resettlement: Full or partial, permanent or temporary physical displacement (relocation, loss of residential land or shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a consequence of development projects, compelling APs to rebuild their lives, incomes and asset bases Land Acquisition: The process whereby a person is compelled by a government agency to acquire all or part of the land a person owns or possesses to the ownership and possession of the government agency for public purpose in return for compensation Rehabilitation: Compensatory measures provided under the ADB Policy Framework on Involuntary Resettlement other than payment of the replacement cost of acquired assets Relocation: The physical resettlement of an AP from her/his pre-Project place of residence Replacement Cost: The value determined to be fair compensation for various types of agricultural and residential land, crops, trees, and other commodities based on current market rates; the cost of rebuilding houses and structures at current market prices of building materials and labor, without depreciation or deductions for salvaged building material Social Preparation: Process of consultation with APs undertaken before key resettlement decisions are made, to build their capacity to deal with resettlement Temporary Land Use Impacts: When land outside the proposed ROW is required temporarily to carry out construction, persons may be affected in terms of temporary land loss, damage to attachments or disruption of living or business conditions, for which compensation or mitigation is required to offset such impacts Usufruct: The right to use and profit from land belonging others or a larger social entity, such as a tribe, community of collective Vulnerable Groups: Distinct group of people (poor, elderly, disabled and female headed households) who may suffer disproportionately from resettlement effects

LARP for the Altay Basic Urban Services Improvement Subproject vi

CONTENTS LETTERS OF CONCURRENCE BY THE GOVERNMENT OF MONGOLIA .......................... ii

LETTER OF CONCURRENCE BY THE MINISTER ROAD, TRANSPORTATION, CONSTRUCTION AND URBAN DEVELOPMENT .................................................................iii

ABBREVIATIONS .................................................................................................................. iv

DEFINITION OF TERMS ........................................................................................................ v

CONTENTS ........................................................................................................................... vi

LOCATION MAP: ALTAY BASIC URBAN SERVICES IMPROVEMENT SUBPROJECT......vii

EXECUTIVE SUMMARY ......................................................................................................viii

A. INTRODUCTION ................................................................................................................1

B. SCOPE OF LAND ACQUISITION AND RESETTLEMENT ................................................2

C. SOCIOECONOMIC PROFILE OF THE AFFECTED HOUSEHOLDS ................................6

D. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS.......................................11

E. CONSULTATION AND PUBLIC PARTICIPATION...........................................................17

F. GRIEVANCE REDRESS MECHANISM............................................................................18

G. INSTITUTIONAL FRAMEWORK......................................................................................19

H. COMPENSATION AND REHABILITATION STRATEGY .................................................20

I. LAR BUDGET, FINANCES AND DISBURSEMENT ..........................................................26

J. MONITORING AND EVALUATION...................................................................................28

K. IMPLEMENTATION SCHEDULE .....................................................................................32

LARP for the Altay Basic Urban Services Improvement Subproject vii

LOCATION MAP: ALTAY BASIC URBAN SERVICES IMPROVEMENT SUBPROJECT

LARP for the Altay Basic Urban Services Improvement Subproject viii

EXECUTIVE SUMMARY

This Land Acquisition and Resettlement Plan (LARP) for the Altay Basic Urban Services Improvement Subproject under the Urban Development Sector Project (Project) is agreed upon between the Government of Mongolia (GOM), the Government of the Govi-Altay Aimag and the Asian Development Bank. The policy framework and entitlements for this LARP are based on the Land Acquisition and Resettlement Framework (LARF) for the Project, the applicable Mongolian Laws1

and the ADB Involuntary Resettlement Policy (IRP) of 1995. Govi-Altay Aimag: Govi-Altay aimag is located in Mongolia’s western region, approximately 820 km from Ulaanbaatar. The aimag covers an area of approximately 141,400 km2. In 2007, the aimag had an estimated population of 57,800. Altay, the aimag centre, had a population of approximately 15,800 in 2008. Primary economic activities in the aimag include herding and the production of livestock, as well as mining activities related to the processing of copper, lead and zinc. Over the 2001-2006 period, the UNDP identified a decline in GDP per capita of 2.08% in Govi-Altay aimag (US$1,296 for men and US$1,115 for women). Govi-Altay was one of only two aimags in Mongolia to suffer such decline. Subproject site and ROW: The Altay subproject will improve the water supply system for the town’s ger areas and center and assist the PUSO in becoming financially viable. The subproject scope of work includes, 5.5 kilometers of water transmission pipes, rehabilitation of the pump station and provision of chlorination equipment, as well as the construction of seven (7) new water kiosks and five (5) connection boxes in the ger areas, 0.6 km sewerage system, the rehabilitation of 2.2 kilometers of water distribution pipes in the urban center, and improvement of the wastewater treatment plant, benefitting 17,527 residents. The right of way (ROW) of the new and rehabilitated water supply pipeline, which traverse the subproject ger areas in various directions, has a total ROW width varying between 5m and 10m (i.e. between 2.5m and 5m from centerline on both sides). In order to minimize resettlement impact, the standard total trench width of 10m was reduced to 5m along several sections of the pipeline in accordance with the Construction Standard and Rules of Mongolia for Water Supply, External Networks and Structures BNBD 40-02-06. See Annex 1 for a detailed technical design map of the Altay subproject. Scope of LAR impact: Only some the water distribution and transmission lines and some of the sewage pipelines will involve land acquisition and resettlement (LAR); the other project components will be constructed on public land. A total of four households - including 17 affected members in the four private households, seven male and ten female - four institutions, and three private companies will be affected by LAR,. Annex 2 includes location mapping of affected entities, as well as photos of the land and structures affected by the subproject. Location mapping and photos correspond to detailed descriptions of affected land and structures in Section C of this LARP. The majority of affected land, 4309.3m2, is institutional land. Residential land accounts for 180.462 of total affected land area and affected commercial lands total 471.42m2. There are a total of ten affected structures on residential land, two affected structures on commercial land and eight affected structures on institutional land. None of the four affected households (AH) will lose residential dwellings. One affected entity will lose a 150m2 concrete area in the middle of its property. Fences, walls and gates of a total length of 223.3m, belonging to eight affected entities, will need to be moved. Two affect entities, including a kindergarten, will lose two open pit wooden latrines, which can be rebuilt on remaining land. There is one affected commercial structure, namely an annex to a defunct thermal energy plant.

1 Civil Code of Mongolia, 2002; Law of Mongolia on Land, 2002, amendments 2003/04/05/06; Law on Allocation of Land to Mongolian Citizens for Ownership, 2003, amendments 2005/08

LARP for the Altay Basic Urban Services Improvement Subproject ix

Indigenous peoples and gender impact: Indigenous people, i.e. tribal communities existing outside the cultural and legal mainstream of Mongolian society, are not present in the Altay subproject site. Therefore, the ADB Policy on Indigenous Peoples will not be triggered by this subproject. Adverse differential gender impact by the Altay subproject on either men or women is not expected. Legal and policy framework: Land acquisition and resettlement by the government for projects in urban areas is based on negotiation and contracts with affected persons according to the Civil Code of Mongolia. The ADB IRP recognizes negotiated LAR as long as there are willing and free buyers and sellers and eligibility and entitlements are clearly defined and agreed. All affected entities are eligible for entitlements, as stipulated in the LARF for the Project, including owners, possessors, users, legalizable occupants, non-titled occupants and lessees.2 The eviction of unlicensed affected persons (APs) is a violation of the ADB IRP. All APs who are unlicensed occupants of land in ger areas designated for land allocation are treated as legalizable under the LARF for UDSP. The eligibility and entitlements for specific types of losses in the Altay subproject are summarized in the Entitlement Matrix in Table 12 of this LARP. Consultation and grievance redress: Information, consultation and participation of APs are ensured through individual and public meetings throughout the LARP preparation and implementation process. One public meeting to prepare the APs for land acquisition and another to disclose and discuss the draft LARP were held in May and August 2010 respectively. A four-step grievance mechanism with a clearly defined timeline of five weeks for each case has been established and disclosed to AP, and a Grievance Action Form initiating and tracking the grievance process for each complaint prepared (Annex 8). Institutional arrangements and monitoring: The Working Group (WG) for the Altay subproject, formed on 29 April 2010 under Resolution Number 131of the Aimag Deputy Governor of Govi-Altay Aimag, is responsible for the implementation of the Altay subproject LARP. With the support of the PMU, the Altay PIU assists the WG and ensures resettlement safeguard compliance prior to any land acquisition or resettlement and the award of civil works contracts. The PMU, together with the Altay PIU, is responsible for adequate supervision of the implementation of subproject LARPs. The PMU will be responsible for reporting the progress in implementing the LARP to the MRTCUD and ADB. Monitoring of compliance with the LARP and the LARF during implementation is carried out by the Altay PIU together with the PMU, as well as by an external monitoring agency (EMA). Compensation strategy and budget: Losses of land and structures, as well as transaction and relocation costs for each AP are covered.

One owner and eight possessors of affected land will experience land losses totaling 4,961.18m2. As four affected entities are state institutions, they will not be compensated for loss of land in accordance with Official Letter 2/647 of the Aimag Deputy Governor (Annex 3). Total compensable land losses are therefore 651.88 m2, 563.54m2 of which will be compensated for in cash at the current government rate of MNT 4,000 per m2 for the Altay ger areas. The total cost of compensation for this land will be MNT 2,254,160.

One AH losing a part (77.34m2) of its unlicensed land will not be compensated for lost land in cash. The remaining portions of unlicensed land (472.66m2) will, however, be legalized by providing the AP with a possession license and state

2 As documented in Annex 3, as affected institutional lands belong to state institutions benefitting from the sub-project through improved water provision, compensation for these affected lands will not be paid.

LARP for the Altay Basic Urban Services Improvement Subproject x

registration. Another AH will lose its entire unlicensed plot of 11m2. This AH will not be eligible for cash compensation for land but will receive a replacement plot of comparable value and location as the lost plot.3 All fees related to the land transaction will be borne by the project.

Garages totaling 38.61m2 will be compensated at the current market rate, amounting to a total of MNT 4,206,967. An annex to a larger structure will be compensated at unit rates of MNT 137,000m, which at a total of 16.83m2 amounts to MNT 2,305,710.

Fences totaling 70.5m will be need to be removed and rebuilt at their new property boundaries, and will be compensated at a market unit rate of MNT 14,907 per running meter to cover the labor cost, amounting to a total of MNT 1,050,943.50.

A total of five latrines on the properties of two AHs will be compensated at the unit rate of MNT221,296. Total compensation will amount to MNT1,106,480.

An affected root cellar will be compensated at the unit rate of MNT 155,517. At 40m2, total compensation will amount to MNT 6,220,680.

Various other affected structures include concrete and stone walls, an iron gate and a paved parking area. These will be compensated at the current market rate for material, transport and labor at a total of MNT 11,624,759

Fees for land transactions will amount to a total of MNT 907,000.

The budget for land acquisition and resettlement in the Altay subproject is expected to amount to MNT 26,499,642 or USD 20,139.7 for compensation as well as transaction, administration and contingency costs, which are funded from state government resources. External monitoring costs, to be covered from the loan, are additional to this total.

3 The 11m2 plot to be replaced represents the area on which a shed belonging to GA002 is located. GA002 occupies an apartment in proximity to the shed, and no other of the AH’s landholdings will be affected by the subproject.

LARP for the Altay Basic Urban Services Improvement Subproject 1

A. INTRODUCTION

1. This Land Acquisition and Resettlement Plan (LARP) for the Altay Basic Urban Services Improvement Subproject under the Urban Development Sector Project (Project) is prepared in accordance with applicable laws of Mongolia, the Asian Development Bank's (ADB's) Involuntary Resettlement Policy (1995) and the updated Land Acquisition and Resettlement Framework (LARF) for the Project. 2. This LARP is agreed upon between the Government of Mongolia (GOM), the Government of the Govi-Altay Aimag and ADB. It provides (i) an assessment of the scope of land acquisition and resettlement (LAR), (ii) an analysis of the socio-economic situation of APs, (iii) the LARP policy framework and entitlements, (iv) the procedure for consultation and public participation, (v) a description of institutional arrangements and the LAR grievance mechanism, (vi) the compensation strategy, (vii) an itemized resettlement budget, (viii) an internal and external monitoring and evaluation procedure and (ix) the Altay subproject LARP implementation schedule. 3. The basic urban services improvement component supports efforts by GOM in implementing its Urban and Housing Development Strategy and five year “40,000 Housing Unit Program”, a major component of which, is to transform ger areas into modern neighborhoods by providing piped water and sanitation. It also makes a major contribution to the achievement of the GOM’s Housing Program by providing water supply to households in major ger areas, more than half of which are poor. The Project will assist GOM in its efforts to: (i) provide sustainable and affordable infrastructure and urban services to ger area residents and the urban poor; (ii) promote community participation in project preparation, implementation, post-project operation and follow-on activities; (iii) improve urban planning and management; and (iv) increase the capacity of government and other public agencies to provide and operate urban services. Implementation of the Project will have a very significant impact on urban development and poverty reduction. 4. Under the basic urban services improvement component: (i) ger area households will be served by improved water supply and sewage networks connected to new or improved water kiosks within 200 meters of their plots; (ii) public institutions in ger areas including schools and kindergartens will be connected to piped water supply and existing sewerage systems; and (iii) solid waste collection and disposal will be improved. 5. Govi-Altay aimag is located in Mongolia’s western region, approximately 820 km from Ulaanbaatar. The aimag covers an area of approximately 141,400 km2. In 2007, the aimag had an estimated population of 57,800. Altay, the aimag centre, had a population of approximately 15,800 in 2008. According to the United Nations Development Program’s Mongolia Human Development Report (2007), Govi-Altay aimag ranks 20th out of 21 aimags and the capital city district on the Human Development Index, a measure of the status of health, education and income. Govi-Altay has an HDI of 0.657 compared to Mongolia’s overall HDI of 0.718. A poverty profile compiled by the World Bank and the National Statistical Office indicates that approximately one-fifth of Mongolia’s poor live in the western region, within which Govi-Altay is located. In the western region, the poverty headcount is 47.1 persons per 100, with a poverty gap of 12.8%. The severity of poverty in the western region is 4.7%. Primary economic activities in the aimag include herding and the production of livestock, as well as mining activities related to the processing of copper, lead and zinc. Over the 2001-2006 period, the UNDP identified a decline in GDP per capita of 2.08% in Govi-Altay aimag (US$1,296 for men and US$1,115 for women). Govi-Altay was one of only two aimags in Mongolia to suffer such decline. A report prepared for the ADB and the Ministry of Construction and Urban Development (now MRTCUD) by PADCO (2006) identifies a number of community priorities for the Altay subproject. Focus group discussions with community members revealed five


priorities for infrastructure improvements, including: i) water quality and supply (household connections); ii) heating; iii) solid waste management; iv) street lighting; and v) sanitation. Nearly all of the community members who participated in focus group discussions (92%) indicated an interest in joining a community-based organization (CBO) focused on planning and managing neighbourhood improvements. Women in particular see the subproject as an opportunity to improve livelihoods in their community, as women are most often responsible for managing household budgets and initiating household improvements. Currently, infrastructure services including, water, sanitation, public bath, solid waste and electricity, account for 5% of an average household budget. Findings of focus group sessions indicate that people would be willing to pay slightly more for improved quality of service, particularly for clean water. The Altay subproject will improve the water supply system for the town’s ger areas and center and assist the PUSO in becoming financially viable. The subproject scope of work includes, 5.5 kilometers of water transmission pipes, rehabilitation of the pump station and provision of chlorination equipment, as well as the construction of seven (7) new water kiosks and five (5) connection boxes in the ger areas, 0.6 km sewerage system, the rehabilitation of 2.2 kilometers of pipes in the urban center, and improvement of the wastewater treatment plant, benefitting 17,527 residents.

B. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

6. Only some of the water transmission and distribution lines and some of the sewage pipelines will involve land acquisition and resettlement (LAR); the other project components will be constructed on public land. The right of way (ROW) of the 5.5 km water transmission lines, 5 km water distribution lines have a total ROW width varying between 5m and 10m (i.e. between 2.5m and 5m from centerline on both sides). In order to minimize resettlement impact, the standard total trench width of 10m was reduced to 5m along several sections of the pipeline in accordance with the Construction Standard and Rules of Mongolia for Water Supply, External Networks and Structures BNBD 40-02-06. 7. The initial draft technical design for the Altay Basic Urban Services Improvement Subproject of 2010, based on a standard 10m total ROW, indicated eleven permanently affected properties and various other structures. In order to avoid and minimize LAR impact the alignment of the water supply and sewage pipelines and associated trenches was modified and reduced to 5m total width (i.e. 2.5m from the centerline on both sides) in some areas. Thereby, impact was reduced to four households, three private companies, one kindergarten, one school, one vocational centre and the police station. The predominant types of structure impacted include fences, concrete walls and gates; a total of 223.3m of these types of structures are affected. Other affected structures are indicated in section B.iii. 8. The following assessment of the scope of LAR impact is based on the census of the APs carried out by the PIU Altay, as well as Detailed Measurement Survey data provided by the Land Relations, Construction and Urban Development Department (LRCUDD) of Govi-Altay Aimag and a property valuation consultant. At the time of conducting the AP census, the cut-off date of 30 April 2010 for the subproject was publicly notified in the subproject area (see Annex 4). The APs have also been notified individually by the LRCUDD using a notification form specially designed for the Project (see Annex 5).

Affected People


9. Table 1 indicates the number and types of affected households/institutions and commercial enterprises in the Altay Basic Urban Services Improvement Subproject. A total of eleven entities (i.e. households, institutions and commercial enterprises) will be affected. Four affected households were enumerated in the census and socio-economic survey (see Section C). Of the four institutions affected, three are schools. One school complex (GA004) serves 600 children and consists of a kindergarten, a primary school, a high school and a sports field. The complex was established in 2007 and has a total staff of 51. The high school’s fence will be affected by the subproject. A standalone kindergarten of 125 children, six teachers, and four assistants will also be affected. The kindergarten was established in 1957 and serves the Nairamdal area of Jargalant and Harzat baghs. As a result of the subproject, the kindergarten will be directly connected to sewer and water systems. The kindergarten’s fence and an existing latrine will be affected. A vocational centre located on a 2.9 hectare plot will also be connected to sewer and water services as a result of the subproject. The vocational centre has approximately 1,000 students from Govi-Altay, Khovd, and Zavkhan aimags and includes a three-storey dormitory. The vocational centre has been running for 36 years and has 53 teachers. An iron fence along the centre’s perimeter will be affected by the subproject, as well as a concrete wall within the campus., The aimag police headquarter facilities will also be affected by the subproject. The department serves the entire Govi-Altay aimag and has approximately 20 policeman, 20 cars, a garage for nine cars, a sauna, a canteen and an open space for storing wood. The department has plans to build a new building behind the existing station on land within the department’s possession. This land, as well as a portion of the open space for storing wood, will be affected by the subproject. Three commercial enterprises will be affected by the subproject. A complex of buildings located on land owned by GA003 provides space for businesses such as grocery shop, a construction material trading company, a bar, a hotel, and a bakery. Rental space is also available and is currently occupied by World Vision, an internet cafe, a beauty salon and a jeweler. Approximately 35 people work for these enterprises, which have a net annual profit of about MNT 50,000,000. A concrete wall, gate and paved area are affected. GA006 operates a small thermal power plant on its land. The company has 80-90 staff and operates a total of three power plants. Monthly income is estimated at MNT 300,000,000. An unused structure attached to the main plant will be affected. A thermal power plant located on GA008 will also be affected. The plant has a total staff of six people. The plant provides heating to the adjacent kindergarten, a nearby seismic monitoring station, and a 16 unit apartment block. The plant’s director supports a family of six on a net annual income of approximately MNT18,000,000. A full list of affected households, institutions and commercial enterprises is included in Table 14. Section H includes a full discussion of the compensation and rehabilitation strategy for all eleven affected households, institutions and commercial enterprises. 9a. There are a total of 17 members of the four AHs, including seven males and ten females. Six AH members are children under age 18. None of the households surveyed are female headed. No elderly persons are present in affected households, and no APs were identified as disabled. One AH (GA001) has been identified as vulnerable due to the AH’s low estimated monthly per capita income. It is assumed that this AH’s income falls below the poverty line for Govi-Altay Aimag of MNT 96,100. In two cases (GA002


and GA005), garages will be removed and AHs will receive compensation for both structure and, if licensed, land. These households will not be required to relocate. A detailed list of all affected persons and assets of the Altay subproject can be found in Table 14. 10. All 17 members of affected households (100%) are of the Khalkh ethnic group, which is the mainstream cultural group in Mongolian society. As all APs are members of the majority ethnic group, the ADB Policy on Indigenous Peoples will not be triggered by this subproject. 11. Adverse differential gender impact by the Basic Urban Services Improvement subproject on either men or women is not expected. Special gender provisions are required by the Project’s LARF, in order to ensure due consideration of the specific needs and problems of affected women and to safeguard their livelihoods. Women are included in all consultation meetings and the participation process of LAR as a whole. Due consideration will be given to complaints and grievances lodged by affected women in the LAR process.

Table 1: Affected Entities

Category Number Percent Affected Entities, of which 11 100

Residential households 4 36 Institutions 4 36 Commercial enterprises 3 27

Affected Residential Households Members, of which 17 100

Male 7 41 Female 10 59 Children under 18 6 35

Average HH Size Mean: 4.25 Median: 4.5

Female headed households 0 0 Land title holders, of which 1 25

Female land title holders 0 0 Joint/family property 0 0

Elderly persons 0 0 Disabled persons 0 0 Vulnerable households 1 25 Vulnerable persons 3 18

APs to be relocated 0 0 12. The vulnerable AH in the subproject is not affected by a loss of housing.

Affected Land

13. There are 11 affected entities (households, institutions and commercial enterprises) in the Altay subproject which will lose land, the total size of affected land amounting to 4961.18m2

(see Table 2). Of the 11 entities affected by land loss, one loses owned land, eight lose possessed land and two lose unlicensed legalizable land. The majority of affected land, 4309.3m2, is institutional land. As affected institutional lands belong to state institutions benefitting from the sub-project through improved water provision, it is not necessary to pay compensation for these affected lands (see Annex 6). Compensation will, however, be paid for all affected structures on institutional land, as detailed in Section H. Residential land accounts for 180.46m2 of total affected land area and affected commercial lands total 471.42m2. One commercial land owner does not currently use the land associated with an affected structure (GA006). Another


commercial land owner (GA008) operates a thermal energy plant on his property and uses a portion of the land directly adjacent the plant to unload and store coal. While the location of these activities on the property will be affected, there is an opportunity to continue to unload and store coal in another location on the property both throughout and after construction.

Table 2: Affected Land

Type of Loss Unit Extent of Loss Percent of

APs Full Partial

No. 11 2 9 100 Total Affected Entities m2 4961.18 37.69 4923.49 1) Impact by Ownership

No. 1 0 1 9.0 Owned

m2 32.77 0 32.77 No. 8 1 7 72.7

Possessed m2 4840.07 26.69 4813.38 No. 0 0 0 0

Rented m2 0 0 0 No. 2 1 1 18.0 Non-titled

occupation, legalizable m2 88.34 11 77.34

2) Impact by Type of Land Use No. 4 2 2 36.4

Residential m2 180.46 37.69 142.77 No. 4 0 4 36.4

Institutional m2 4309.3 0 4309.3 No. 3 0 2 27.3

Commercial m2 471.42 0 471.42 No. 0 0 0 0 3) Temporary Land

Occupation m2 0 0 0 14. The proportion of land loss relative to total occupied land owned for all affected entities is shown in Table 3. The majority (45.4%) of all entities, including the vulnerable household, lose less than 10 percent of their total occupied land. In both cases where more than 50% of land is lost, the land is associated with an accessory building (in both cases, a garage), and loss of this land will not affect the use of other property or housing.

Table 3: Proportion of land loss relative to total land owned (n=11) Land Loss (%) Total Affected Entities Vulnerable Households Number % Number % <10 5 45.4 1 100 <20 3 27.3 <30 0 9.0 <40 1 0 <50 0 0 50+ 24 18.2 100 Total 11 100 1 100

Affected Structures

15. There are a total of four affected structures on residential land, six affected structures on commercial land and eight affected structures on institutional land. 4 Represents land on which affected property assets (garages) of APs are located, not entire household land or property holdings.


Institutional landowners will receive compensation for affected structures located on their land. No households will lose their house. Fences, walls and gates of a total length of 208.2m, belonging to eight affected entities, will need to be moved or replaced. Two affected entities, including the kindergarten, will lose two open pit wooden latrines, which can be rebuilt on remaining land. There is one affected commercial structure, namely an annex to a defunct thermal energy plant (GA006). Affected structures are indicated in Table 4.

Table 4: Affected Structures

Type of Loss Unit Number of Affected Entities

Garage m2 38.61 2 Annex Structure m2 16.83 1 Iron Gate m 5 1 Iron Fence m 77.6 2 Iron Fence with Concrete Base

m 20 2

Wooden Fence m 70.5 3 Stone Wall m 9.6 1 Concrete Wall m 16 2 Concrete Area m2 150 1 Latrine seats 5 2 Root Cellar m2 40 1

Affected Livelihoods

16. Of the four institutions and three private companies affected, none will experience temporary or permanent income disturbance.

Level of impact severity

17. Since the Altay Basic Urban Services Improvement Subproject does not involve 200 or more persons who experience major impacts, i.e. physical displacement from housing or loss of 10% or more of productive assets, according to ADB requirements, the subproject is classified as impact category B, which requires a short LARP. A socio-economic profile of affected households was prepared, since the data for a large part of the profile was already obtained through the census. This will contribute to establishing a baseline for external monitoring and evaluation. The socio-economic profile for the Altay subproject is discussed in Section C.

C. SOCIOECONOMIC PROFILE OF THE AFFECTED HOUSEHOLDS

18. To gain an in-depth understanding of the socio-economic situation of affected persons who privately own, possess or use residential land in Altay, a survey of the four AHs was carried out. The survey included interviews with three men and four women. The vulnerable affected household identified in Altay was included in the survey. Some basic data on ethnicity, land, education and income have been derived from the census, other indicators of living standards and conditions from the sample survey. Where possible the presentation of the data is gender disaggregated to ascertain possible differences in the situation and perceptions of women and men; however, in all four cases, land is owned or possessed by the male head of household.


19. As shown in Table 5, all 17 members of affected households are of the Khalkh ethnic group, which is the mainstream cultural group in Mongolian society.

Table 5: Ethnicity among members of affected households Ethnic Group

Total Men Women

Number % Number % Number % Khalkh 17 100 7 41 10 59 20. The size and property status of all occupied land (affected and unaffected) among all affected entities as distinguished from their affected land discussed in the previous section, is depicted in Table 6; see also Table 14 for property sizes of individual APs. The majority of occupied land is in plots of 1000m2 or more; all plots but one in this category are institutional land. Residential and commercial plots fall primarily within the 500m2 to <1000m2 range. One of the eleven plots is owned, eight are possessed and two are unlicensed.

Table 6: Size and property status of all land occupied by affected entities Type/Size Classes Total Number % Total Land occupied (m2) <250 25 18.2 250 - <500 1 9.1 500 - <1000 3 27.3 1000 and more 5 45.4 Total 11 100 Land Owned <250 0 0 250 - <500 0 0 500 - <1000 1 100 1000 and more 0 0 Total 1 100 Land Possessed <250 16 12.5 250 - <500 1 12.5 500 - <1000 1 12.5 1000 and more 5 62.5 Total 8 100 Unlicensed Land <250 17 50 250 - <500 0 0 500 - <1000 1 50 1000 and more 0 0 Total 2 100 21. None of the AHs’ primary or secondary residences are located on affected land. Two households have one ger and one house each. Each of these households also has an open pit latrine on their plot and has a wooden fence surrounding their plot. Two AHs, both with affected garages, live in apartment units, each with a flush toilet. 5 See footnote 4. 6 See footnote 4. 7 See footnote 4.


Table 7: Type of structure owned by affected households (n=4)

Type Total Comments

Number of AH Number of Structures

House (residential) 2 1 1 two-bedroom house, and 1 one-bedroom house

Ger (residential) 2 1 All ger are 5 lattice panes in size8

Apartment unit (residential)

2 1

1 two-bedroom apartment, and 1 one-bedroom apartment

House (commercial) Fence / Wall 2 1 Flush Toilet 2 1 Latrine 2 1 Shed 2 1 Garage 2 1 Root Cellar 1 1 22. The majority of members of surveyed households have a secondary school level education, and over 30% have at least a basic (3rd Grade) education. Three APs have attained post-secondary degrees, with two completing Masters-level programs. Some members of surveyed households have also received additional training in areas such as cooking and medicine.

Table 8: Educational attainment among above 10 yrs of age affected household members (n=16)

Level Male Female Total Number % Number % Number % None 0 Primary (3rd Grade) 1 20 4 80 5 31.2 Basic (10th Grade) 2 100 0 0 2 12.5 Completed Secondary School (12th Grade)

2 33.3 4 66.7 6 37.5

B.A. 1 100 0 0 1 6.3 M.A. 1 50 1 50 2 12.5 PhD. 0 Other 0 Total 7 43.8 9 56.2 16 100 10 years of age or below 1 0 1 23. Total annual income (self declared) from all sources among four affected households included in the socio-economic survey is shown in Table 9. One household’s income was unclear, other than their receipt of government child support. None of the affected households whose incomes are known fall into the below MNT 5 million income category. Two AHs fall within the MNT 5 to 7.5 million income category, and one AH has an annual income between MNT 10 to 15 million. Among the AHs surveyed, income appears to be directly related to level of education.

Table 9: Annual incomes from all sources among affected households (n=3)

8 Lattice panes made from wood are used to erect ger and their size is measured in number of lattice panes.


MNT Number of AH % <5,000,000 5,000,000 - <7,500,000 2 67 7,500,000 - <10,000,000 10,000,000 - <15,000,000 1 33 15,000,000 - <20,000,000 => 20,000,000 Total 3 100 No data / Unclear 1 Averages MNT Mean 8,036,666 Median 7,340,000 Range 6,000,000 – 10,770,000 24. Given household sizes ranging between one and five members with an average of 4.3, the per capita monthly incomes among three of the four affected households are above the poverty line for Altay of MNT 96,100. One AH, whose income is unclear aside from an annual MNT 70,000.00 government child support payment, has been included in the ‘no data/unclear’ category in Table 10; however, it is estimated that this household’s per capita monthly income falls well below the poverty line and that this AH qualifies as vulnerable under the UDSP LARF.

Table 10: Per capita monthly incomes among affected households (n=3)

MNT Number of

households %

<75,000 75,001 – 96,100 (poverty line) 96,101 - <150,000 1 33 150,001 - <200,000 2 67 200,001 - <350,000 =>350,000 Total 3 100 No data/Unclear 1 25. Among the four households considered in this analysis, three have two income earners. In the fourth household, it is the primary task of men to earn income. Eight adults were identified in the census; however, only seven were interviewed for the socio-economic survey. The employment status among the seven sampled adults shown in Table 11 indicates that four are employed (two male, two female), one male is self-employed, two women are doing housework. Among the employed persons, four are salaried workers and the self-employed AP earns income from herding.

Table 11: Employment status among adult APs (n=7) Employment Status Total Men Women Employed 4 2 2 Self-Employed 1 1 Housework 2 2 Unemployed 0 Pensioner 0 Total 7 3 4 26. In a ranking exercise on household expenditure among the four affected households, the first ranked item ranged from medical expenditures, to transport, to education expenditures to loan payments. Food was ranked as the second or third most common expenditure by all households. There was little differentiation between the


expenditure rankings of men and women. All households gave middle ranks (between 4 and 6) to clothes. The cost of electricity, water and heating fuel varied among households, with ger households placing higher priority on heating fuel and apartment households giving priority to electricity. In all cases, the lowest ranked expenditure was entertainment, indicating that covering basic costs is a priority for all households. All households indicated that they have enough food to eat everyday. The majority of households eat three meals each day, with two households eating between two and three meals per day. None of the households surveyed indicated eating more than three meals per day. 27. The following data describes the status of living conditions and well-being among the affected households. All four households have electricity and three households have direct water connections to their houses. One household obtains drinking water from a bowser tank within a 50 to 100m walking distance from their land. Responsibility for collecting water falls mainly to the women of this household. All households reported using a modern stove for cooking, powered by electricity. One household also uses a traditional piishin, using both wood and dung for cooking. This household also relies on the piishin to heat the household and uses wood, coal or dung as heating fuel. All other households surveyed reported the use of radiators for heating. In cases where fuel is purchased it is typically purchased from a store and delivered by truck. Women and men are equally responsible for ordering fuel delivery. In the household where dung is used, the fuel source is prepared at home. 28. In terms of household equipment, 50% of households own three beds, 25% have two beds and 25% have 1 bed. All households reported owning one TV. One household has a radio and two households own a computer. Two households own a car, while one household owns a Jeep. One household owns both a minibus and a motorcycle. 29. Two of the households keep livestock, including sheep, goats and horses. One household’s livestock grazes in the Delger Soum area, while the other grazes in the Taishir Soum area. In one household, the man has primary responsibility for tending livestock while in the other household, men and women share this role. None of the affected households keep a garden. 30. Affected households reported a variety of health issues, the most prevalent of which were kidney problems, blood pressure and stomach issues. One household reported heart disease as an issue. The most frequently sought medical care is from government hospitals, with one affected person receiving care overseas. Most affected households are within 1 and 5km of the health service they use, with one AP travelling a distance of over 5km to access health services. No AHs reported the use of home remedies or consultation of traditional medical practitioners. 31. All affected households report that the most common means of transport to school and work is walking. Adults report travel time of between five (25%) and 20 minutes when walking to work. Children walk between ten (50%) and 20 minutes to school. None of the AHs provided estimates of their transport costs; however, two households ranked transport as their top expenditure. 32. Three out of four affected households report the primary task of women to be either earning income or other. In all households, the primary task of men is earning income. Men and women in the surveyed households have similar perceptions of gender roles (e.g. both men and women see the primary role of men as earning income). In cases where women’s primary task was household work, men were reported to make decisions regarding home related matters. In cases where women earn income, decision-making was mostly reported to be shared. Fifty percent of households reported that joint decision-making also applied to matters outside the home. No households reported women-only or separate decision-making.


33. One of four AHs reported that there are frequently major disputes in the community and that these disputes arise solely over land. These disputes are not typically successfully resolved. Of seven adults surveyed in affected households, one indicated that crime occurred only in the form of theft and was rare. None of the sample respondents indicated any other conflicts or violence against women. One respondent reported that CBOs are present in the community. This respondent is active in a CBO aimed at eliminating violence against women. 34. The AHs were asked about their development needs and priorities. One AH living in a ger indicated that a bath house is a priority in order to improve personal hygiene. In general, AHs were interested in improvements in hygiene and improving public education around improved urban services. Other priorities include improved livelihoods, hot water in apartment units, an improved heating system and the development of new infrastructure such as roads and sidewalks. 35. Among the positive impacts of the project both male and female respondents anticipate improvements to the quality of the water supply, as well as increased convenience in accessing water. Three respondents were not well-informed about the project and were unsure what benefits it may bring. Three out of four AHs did not expect any negative impacts. The concerns of the fourth were addressed during the negotiation process.

D. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS

36. The objective of this LARP is to stipulate all relevant entitlements, procedures and compensation, relocation and rehabilitation measures due to the affected persons for the acquisition of land under the Altay subproject, while safeguarding their livelihoods. All provisions of this LARP are in accordance with the Land Acquisition and Resettlement Framework (LARF) for the Project. The policy framework and entitlements for the Project are based on the applicable Mongolian Laws9

and the ADB Policy on Involuntary Resettlement of 1995, as detailed in Sections D and E of the LARF. This section of the LARP for Altay summarizes the key policy framework provisions of the LARF and presents the entitlement framework for the Altay subproject. 37. Land acquisition and resettlement by the government for projects in urban areas, as opposed to national scale objects outside urban areas, is based on negotiation and contracts with affected persons according to the Civil Code of Mongolia. There is no right of eminent domain, but only negotiated land acquisition and resettlement. Article 1 of the Civil Code stipulates that the government and APs engage as equal and autonomous legal persons and participants in a civil legal relationship in the negotiation and conclusion of contractual agreements on the transfer of affected assets. 38. Article 101 sets out the right to possess, use and dispose of assets in the context of Contract Law as determined in Chapter 15 of the Civil Code. There are 3 modes of legal access to land in Mongolia, possession and use according to the Law on Land and ownership according to the Law on Allocation of Land, all of which involve licensing and registration by state authorities. Owners and possessors of land are entitled to transfer their land title or possession or user license, respectively, through a notarized contract within the provisions of the Law on Allocation of Land (Article 27) and the Law on Land (Articles 35 and 38). The transfer of licenses of possessors requires the approval of the governor of the soum or district. Lessees of land or structures are entitled to a 3 month notice of the termination of a lease according to Article 294.3 of the Civil Code. Non-titled

9 Civil Code of Mongolia, 2002; Law of Mongolia on Land, 2002, amendments 2003/04/05/06; Law on Allocation of Land to Mongolian Citizens for Ownership, 2003, amendments 2005/08


occupants of land are deemed illegal and can be evicted under Article 27.4 of the Law on Land. 39. ADB’s Involuntary Resettlement Policy (IRP) recognizes negotiated LAR as long as there are willing and free buyers and sellers and eligibility and entitlements are clearly defined and agreed. By contrast to Mongolian Law, which does not recognize the eligibility of unlicensed APs, the IRP determines that ‘lack of title is no bar’, which implies that all APs are eligible for entitlements, as stipulated in the LARF for the Project, including licensed APs (owners, possessors or users), unlicensed APs (legalizable or non-titled occupants) and lessees. The eviction of unlicensed APs is a violation of the ADB IRP. Mongolia is in the process of privatization of land and encourages land ownership by Mongolian Citizens in areas designated for land allocation in Land Management Plans. Therefore, an unlicensed occupant of land in areas designated for land allocation is in principle legalizable. The Project Ger Areas in Aimag Towns and the Capital City are designated for Land Allocation. All APs who are unlicensed occupants of land in ger areas designated for land allocation are treated as legalizable under the LARF for UDSP (see below paragraph 41 items ii & iii). This clearly satisfies the fundamental rule of the IRP that ‘no AP should be worse off than without the project’. 40. The Mongolian Law and practice of LAR are at variance with the IRP in several regards: (i) compensation for affected land is based on a government compensation tariff, not market rates; (ii) a depreciation coefficient in the valuation of affected structures is applied; (iii) income and livelihood rehabilitation are not provided; (iv) transaction costs are not included in compensation payments; (v) project internal grievance procedures preceding dispute resolution by governors and the courts are absent; (vi) public consultation and information disclosure is not mandatory, nor widely practiced; (vii) the declaration of an eligibility cut-off date is lacking; and (viii) there are no limitations on commencement of civil works until after completion of all LAR procedures. 41. To establish a land acquisition and resettlement policy framework with clear eligibility and entitlement provisions for the Project which addresses the gaps between local laws or practice and the ADB IRP, the LARF determines a range of detailed measures in its section E. Applicable to the Altay subproject are the following: (i) The Project will adopt a negotiated LAR practice involving contractual agreements negotiated between APs and the Land Administration Department on the basis of the Civil Code of Mongolia. The following safeguards will be observed:

a) All compensation and allowances will be determined and paid or provided as specified in the contractual agreements.10

b) The APs, regardless of whether they are titled or non-titled, will not be served

notices or demand letters regarding claims by the government to their properties.

c) All LAR related notification of APs and negotiation of agreements will be carried out by the Project staff and their government partners11 in individual as well as in public consultations with the APs. The process of notification and consultations is specified in sections F and H.

d) All agreements will be certified by a notary and registered with the State

Administrative Authority in Charge of State Registration of Property Rights. The parties to the contracts will retain their own legal copies.

10 If feasible, the provision of employment in Project civil works to poor and vulnerable APs, if they desire so, will be included in the contracts. 11 The key government partners are the officers of the Capital City or Aimag and District or Soum Land Administration Department and of the Property Relations Agency or other offices in charge of valuation of non-land immovable property.


e) Adequate grievance redress mechanisms will be established.

f) Khoroo governors and land administrators shall assist in identifying, consulting,

and formulating with APs and the Project staff special measures such as allocation of new plots and income restoration schemes for affected vulnerable persons.

(ii) All APs will be eligible for compensation and rehabilitation entitlements irrespective of their property status, including unlicensed occupants of land, and of the type of use of their property (residential, commercial, public or community12). (iii) Unlicensed occupants of land in areas designated by GOM for past, present or future land allocation will be treated as legalizable APs and given ownership licenses for the remainder of partially affected land or, in the case of full loss of a plot of land, provided with replacement land and a license of ownership within 3 months of conclusion of a contractual agreement between the government and the AP. They will be registered with the State Administrative Authority in Charge of State Registration of Property Rights.13APs who lose all of their unlicensed land without remaining legalizable land left, but who have licensed land adjacent to the affected unlicensed land and are therefore ineligible for cash compensation, legalizable land or replacement land, will receive preferential treatment for temporary employment with contractors in the civil works construction activities of the subproject. (iv) Affected land will be compensated either at replacement cost based on market rates for comparable land or the applicable government compensation tariff, whichever is higher, or, in the case of full loss of a plot of land, with replacement land, including land preparation and restoration of utility services (electricity, water etc), as applicable. The District Land Administration Department will assist the APs to identify and approve the relocation plot. The loss of 50 percent or more of a plot is considered a full loss eligible for compensation for the entire plot, if the AP so desires. (v) Affected possessors, in case of partial loss of less than 50 percent of their land, will transfer their license for the affected plot to the GOM and retain the possessor license for the remaining plot. Their possessor licenses will not be cancelled or subject to automatic expiration. In case of a full loss of land they will be provided with a replacement plot and ownership licenses with state registration. (vi) Affected users of land with use licenses will be provided with replacement plots in similar locations suitable to business operations and new use licenses or, if possible and desired, with a license of ownership, within 3 months of conclusion of a contractual agreement between the government and the AP. (vii) All APs agreeing to receive replacement land or APs with pending license approval for ownership or possession or APs with possession licenses seeking ownership status, will be provided with ownership licenses within 3 months of conclusion of a contractual agreement between the government and the AP and will be registered with the State Administrative Authority in Charge of State Registration of Property Rights.

12 Not applicable if the replacement of public structures (electricity, water supply lines, etc) is covered under civil works contracts. 13 In the unlikely case of occupation of land by an AP in an area not designated for allocation of land, the AP will be provided with ownership of a new plot in a designated area and given the necessary assistance.


(viii) Affected structures14 will be compensated at replacement cost based on prevailing

market rates for comparable types of structures without deduction of depreciation. Materials may also be salvaged by the APs. (ix) In cases of joint property ownership, the written notarized consent of the partners in a common property relationship or of an adult family member will be required. (x) Loss of income will be compensated through short-term financial compensation equivalent to the loss, i.e. for the period of interruption of business or employment. Vulnerable and poor households will also be provided with employment opportunities15

or other assistance. (xi) All relocation, transfer and transaction expenses (fees and duties) will either be waived by government or included in the contract price of the affected properties. (xii) The Project will establish an accessible and responsive project grievance procedure, as indicated in section F. (xiii) ADB IRP information disclosure and public consultation provisions will be observed, as indicated in section E. (xiv) An eligibility cut-off date will be set for each subproject with LAR impact at the time of the AP census and detailed measurement of affected land and property. (xv) The time periods between conclusion of a contractual agreement, with 75 percent payment of compensation, and the permanent acquisition of an affected asset, when the remaining 25% is paid, will be determined as follows: a. Affected plot involving only the moving back of fences and acquisition of a portion of land, without housing structures16

(residential or business): within 2 months. b. Replacement plot with ownership license for full acquisition of entire plot, without housing structures: within 3 months. c. Acquisition of a partial plot with a housing structure, where the structure is to be rebuilt on the remaining plot: within 5 months. d. Full acquisition of entire plot with housing structure, where the structure is to be rebuilt on a replacement plot: within 6 months. e. Temporarily affected plots will have fences removed and restored at the specific time of construction of pipelines at that location during the civil works period; 2 weeks notice will be given. f. Lessees must be given 3 months notice of termination of their lease in accordance with the Civil Code. (xvi) Civil works shall not commence unless all compensation, relocation and construction activities under section XV a – d have been completed and short-term financial assistance for loss of income has been paid.

14 Including houses, fences, sheds, latrines, garages and other immovable structures built on affected land. 15 If the required skills are not available, the contractor will provide basic training to the employed APs. 16 Small structures (other than houses) can be rebuilt within the time periods stipulated for partial acquisition of otherwise empty land.


(xvii) In accordance with the IRP, the design and implementation of the subprojects under UDSP will make every effort to avoid and minimize land acquisition and resettlement impacts, including temporary impacts during construction.17

42. The application of policies, laws and regulations pertaining to LAR eligibility and compensation and rehabilitation entitlements for this Project are summarized in the Entitlement Matrix in Table 12. Each AP may experience a combination of the losses indicated in the first column. Each case must be investigated and determined carefully so that all possible losses of the AP are covered.

Table12: Entitlement Matrix Type of Loss Specification Eligibility Compensation Entitlements

Owner, possessor18 (8)

Cash compensation at market rates or the government compensation tariff, whichever is higher, based on contractual agreement All taxes, registration and transfer costs are waived or included in compensation price Partial loss of

plot (<50%) Legalizable occupant of land (1)

Ownership or possession license and State registration for remaining land will be provided by government19; All taxes, registration and transfer costs are waived or included in compensation price

Owner, possessor (1)20

The AP may choose between the following alternatives: Land for land compensation through provision of replacement plot of comparable value and location as lost plot; Ownership license and State registration; OR Cash compensation at market rates or the government compensation tariff, whichever is higher, based on contractual agreement All taxes, registration and transfer costs are waived or included in compensation price

LAND (residential/ commercial/ public/ community)

Full loss of plot (=>50%)

Legalizable occupant of land (1)21

Land for land compensation through provision of replacement plot of comparable value and location as lost plot22; Ownership license and State registration; All taxes, registration and transfer costs are waived or included in compensation price

17 In case of, temporary disruption to services (local roads, water, electricity, telephone) these services will be restored within 48 hours or temporary alternative solutions to provide these services for the time of construction impact will be provided. 18 If the remaining land is smaller than 350m2, the AP may opt to receive a new replacement plot instead of cash compensation and will give up the entire old plot. 19 If the unlicensed AP has occupied more than 700m2 of land (the legal allocation limit per person), the balance land, if any, may be either owned and registered in the name of a family member or bought from the government at the government land tariff. A landowner already owning 700m2 may acquire the balance land as additional possessed land. 20 See footnote 4. 21 See footnote 4. 22 See footnote 18.


Type of Loss Specification Eligibility Compensation Entitlements Legalizable occupant of land losing all unlicensed land but with adjacent licensed land (0)

Preferential treatment for temporary employment during construction

STRUCTURES (residential/ commercial/ public/ community)23

Moving back of fences

Owner, possessor, legalizable occupant of land (3)

The AP may choose between the following alternatives: Cash compensation for relocation of fence at market rate without deduction of depreciation, based on contractual agreement OR Replacement/reconstruction of the fence by the Project owner/contractor

Alteration to structure

Owner, possessor, legalizable occupant of land (8))

Cash compensation for lost part of structure and reconstruction of remaining structure at market rate without deduction of depreciation, based on contractual agreement

Full loss of structure and/or relocation

Owner, possessor, legalizable occupant of land (3)

Cash compensation for replacement of lost structure at market rate without deduction of depreciation, based on contractual agreement

Moving or relocation of ger

Owner, possessor, legalizable occupant of land, lessee (0)

Cash compensation for cost of taking down and raising of ger and for transport, as applicable; to be included in contractual agreement

Businesses

Any business loss due to LAR or construction activities by Project

All APs so affected (0)

Cash compensation equal to income during interruption period to be included in contractual agreement

Other provisions

Specification Eligibility Compensation entitlements

Relocation

Transport/ transition costs

All APs to be relocated (0)

Provision of allowances to cover transport costs on actual cost basis at current market rates; to be included in contractual agreement. Assistance to find an alternative plot or to find comparable house to rent, as applicable

23 ‘Residential’ refers to any structure used as a private dwelling, including houses and gers. ‘Commercial’ refers to any structure used for business and manufacturing activities, including small shops, factories, offices, workshops and garages.


Type of Loss Specification Eligibility Compensation Entitlements

Permanent loss of livelihood

All vulnerable APs (0)

Preferential employment in project-related workforce Short-term cash assistance up to a maximum of six months at guaranteed lowest living level and assistance in reconstitution of business or employment

Loss of land


Assistance with preparation of contracts and administrative process of land transfer Preferential treatment for temporary employment during construction

Vulnerable AP (as defined in paragraphs 8 & 57)

Loss of structure


Assistance with house and other construction activities (minimum standard guaranteed), registration of property titles, relocation expenses, minimum housing guarantee

Temporary disturbance through construction

All affected entities

Avoid, minimize or mitigate as quickly as possible

Unidentified Losses

Unanticipated impacts

All affected entities

To be identified during subproject implementation; measures will be formulated as appropriate according to ADB policy and reported to ADB prior to implementation

E. CONSULTATION AND PUBLIC PARTICIPATION

43. APs must be fully informed, closely consulted, and encouraged to participate in any decision making pertinent to land acquisition and resettlement, including the final design of infrastructure facilities, preparation of contractual agreements, determination of prices for assets to be transferred, selection of replacement plots and the restoration of livelihoods. 44. In 2010, individual consultations have taken place with APs along the Altay subproject’s ROW at the time of field verification and identification of LAR scope based on the detailed technical design of the water supply and sewage pipe lines and of census taking and enumeration of the socio-economic survey. APs were involved in discussions about opportunities to avoid and minimize LAR impact. The majority of APs expressed their appreciation of the subproject and willingness to give up small portions of their properties for compensation to facilitate the construction of the water supply and sewage facilities. Options for legalizing the remaining unlicensed land after surrender of the portion located within the subproject’s ROW were discussed and formulated with unlicensed APs. 45. The draft LARP for the Altay subproject was disclosed at a community meeting with all 11 affected entities at Govi-Altay Local Administration Palace Meeting Room on 20 August 2010. The APs were provided with a Mongolian translation of the key sections of the LARP. The legal framework under the Project LARF, the compensation entitlements and the grievance and monitoring procedures were reviewed and discussed. After clarification of several concerns among APs, the majority of APs concurred with the compensation strategy indicated in this LARP. Clarification of questions on land sizes and scope of impact on certain property assets was incorporated into the revised draft LARP, which will be disclosed to the APs in a consultation meeting led by the LRCUD on 07 October 2010.


46. Individual consultations to prepare and conclude contractual agreements have been ongoing from 21 August 2010 and will continue until all contracts are agreed and signed. The LAR specialists of PMU are supporting LRCUDD and the APs to accomplish the agreements as well as the legalization of unlicensed land. After approval of the final LARP by ADB and GOM, it will simultaneously be disclosed to the APs in a public meeting in Mongolian and published on the ADB website. At the meeting the date, time and venue of disbursement of agreed property transfer prices and other compensation or entitlements will be announced. Additional individual and public consultation meetings will be held throughout implementation of the LARP as required to address any issues. The attendance sheets for AP consultation meetings held during 2010 are provided in Annex 7.

F. GRIEVANCE REDRESS MECHANISM

47. A grievance action form (GAF) to log and follow up AP grievances has been designed (see Annex 8). The Working Group (WG) for the Altay subproject, the key institution in the grievance redress process, was formed on 29 April 2010 under Government Resolution 131 of the Aimag Deputy Governor of Govi-Altay Aimag 48. For the Altay Improvement of Basic Urban Services subproject, the subproject Working Groups will serve as the initial committee for grievance redress and will provide a forum `for raising objections and holding discussions to resolve conflicts. An aggrieved AP may submit grievances to any member of the Working Group, who will log a complaint in the GAF and request the chairman to call a meeting, where it will be presented, addressed and resolved within 1 week. The subproject Working Group will record its deliberations and inform the concerned parties within the same week of its findings and recommendations and present these to the aimag and soum Governors for action. If the grievance is not resolved within 2 weeks from its lodging, the grievance will be submitted to the Land Administration Department by the Working Group member of LAD and its resolution is recommended to the Aimag Governor for approval and action within 1 more week. If still unresolved within another week the Aimag Governor will seek to resolve the issue and initiate action within another week. If the preceding actors cannot resolve the grievance, it is referred to the court system. Mongolian law and the ADB IRP will guide all decisions. APs and NGOs/CBOs operating in the area shall be actively involved in all stages of the grievance redress procedures. The grievance redress mechanism will include the following steps:

Table 13: Grievance mechanism for Altay Subproject Steps Actors / Actions Timing

AP lodges grievance with Working Group (WG) member WG addresses grievance, informs AP and proposes resolution to Governor

1 week 1

Governor initiates action for resolution 1 week If grievance is not resolved

LAD WG submits grievance to LAD LAD addresses grievance, informs AP and proposes resolution to Aimag Governor

1 week 2

Aimag Governor initiates action for resolution 1 week If grievance is not resolved 3 Aimag Governor addresses grievance and initiates action for resolution 1 week If grievance is not resolved 4 Grievance is referred to court system Open


G. INSTITUTIONAL FRAMEWORK

49. In the improvement of basic urban services component, the Working Group24

for the Altay subproject is responsible for the implementation of this LARP. Supported by the PMU, the Altay PIU through the LAR specialists of PMU assists the Working Group and ensures resettlement safeguard compliance and submission of a satisfactory LARP to PMU and ADB for review and approval prior to any land acquisition or resettlement and the commencement of civil works. 50. A training workshop on ‘Land Acquisition and Resettlement in the Implementation of ADB Financed Urban Development Projects in Mongolia for Key Stakeholders of the Urban Development Sector Project’ was held at the Altay Governor’s Office with concerned government officers, including WG members, AP representatives and other stakeholders of the UDSP subproject in Altay on 29 April 2010. The participants were trained on the legal framework of the project, including applicable Mongolian Laws, ADB IRP and the UDSP LARF, and the steps of the process of LARP preparation and implementation. 51. The main activities of the WG include the following:

Participation in public consultation meetings.

Timely follow up of grievances according to grievance redress mechanism (Section F).

Information to and updating of APs on the implementation schedule and other LAR related activities requiring AP participation.

Assistance to APs in preparing all the necessary documents pertaining to the preparation of contractual agreements and payment of compensation, i.e. licenses of possession or ownership and transfer agreements for land.

Information to APs about the schedule of payments, relocation arrangements, if any, and the commencement of civil works once the compensation and entitlement estimates have been completed for each AP.

Validation of the inventory of affected assets, and negotiation of contractual agreements with the affected households.

Information of the APs about the date, venue, and time of the payment of agreed property transfer prices and other compensation or entitlements after negotiation and conclusion of notarized agreements.

Provision of an updated land management map prepared by the city or aimag Land Administration Department indicating all lands that are eligible for ownership to APs to be relocated and assist the process of allocation of land ownership to these APs.

The Aimag and Soum Governors will review and resolve the applications for land allocation within 3 months, as specified by law, and issue orders allocating lands to the APs.

Facilitation of the process of consolidation, review, approval and allocation of compensation for the subproject’s APs by the Aimag land administration and governor, as well as the MRTCUD.

24 Each subproject establishes a Working Group to ensure stakeholder participation by the relevant GOM departments and APs, including LRCUDD, aimag and soum Governors, Land Registration Agency and City Manager.


52. The PMU, together with the Altay PIU, is responsible for adequate monitoring and supervision of the implementation of the LARP and the resulting impacts on APs. The PMU will be responsible for reporting the progress in implementing the LARP to the MRTCUD and ADB.

H. COMPENSATION AND REHABILITATION STRATEGY

53. This section presents the compensation strategy for each type of loss - i.e. land and structures - as well as transaction and relocation costs. The particular circumstances of some APs are also explained. The measurements and compensation rates used are based on the DMS and applicable government rates expressed in unit rates for land, as provided by the Land Relations, Construction and Urban Development Department (LRCUDD) of Govi-Altay Aima, and the DMS and market rates (without depreciation for age) expressed in unit rates for structures, as provided by the LRCUDD and a qualified property valuation consultant. The documentation received from the LRCUDD and the valuation specialist can be found in Annexes 10 and11. A detailed account of the LAR impact and compensation of losses for each individual AP is presented in Table 14. 54. The compensation of affected land will be carried out as follows:

One owner and eight possessors of affected land will experience partial losses ranging from 17.5m2 and 2420m2, totaling 4,872.84m2. Among these, four affected entities are state institutions, so compensation for land is not required to be paid in accordance with Resolution 2/647 of 4 May 2010 of the Aimag Governor (Annex 6). Total compensable land losses are therefore 651.88m2. The licensed APs entitled to land compensation will be compensated at the current government rate for Altay. At a government unit rate of MNT 4,000 per m2, the total cost of compensation for this land will be MNT 2,254,160. The average local market rate for land in the project area in Altay is currently MNT 2,800 per m2, which is considerably lower than the government rate; APs are satisfied with the valuation of affected landholdings. Any fees for adjusting existing owner or possessor licenses or certificates will be waived or paid by the local government.

One AH (GA008) losing a part (77.34m2) of its unlicensed land will not be compensated for lost land in cash. The remaining portions of unlicensed land (472.66m2) will, however, be legalized by providing the AH with a possession license and state registration.

One AH (GA002) will lose its entire unlicensed plot of 11m2. This AP will be provided a replacement plot of comparable value and location as the lost plot with ownership license and State registration.

55. The compensation of affected structures will be carried out as follows:

One annex structure made of brick will be compensated at unit rates of MNT 137,000, which at a total of 16.83m2 amounts to total compensation of MNT 2,305,710.

Three affected entities, whose total of 70.5m of wooden fences will need to be removed and rebuilt at their new property boundaries, will be compensated at a market unit rate of MNT 14,907 per running meter, amounting to a total of MNT 1,349,083.5. The compensation rate covers the labor cost of removing and rebuilding the fences at current market rates.

One concrete and iron garage measuring 12.88m2 will be compensated at a unit rate of MNT 52,947 amounting to a total of MNT 681,957.


One brick garage of 25.73m2 will be compensated at a unit rate of MNT 137,000 amounting to a total of MNT 3,525,010.

A 6.2m2 concrete wall with a unit rate of MNT 17,473 will be compensated at MNT 104,838. For the construction of a 5m iron gate to be placed over the ROW in place of this concrete wall, the AP will receive compensation of MNT 259,530, the unit rate being MNT 51,906.

One AP with a 10m iron fence with concrete foundation compensated at a unit rate of MNT 23,731 will receive total compensation of 237,310 for the removal and reconstruction of the fence.

Another AP with 10m of affected iron fence with concrete foundation will receive total compensation of MNT 342,000 (MNT 34,200/m) to remove the affected section of the fence and then reconstruct it following civil works.

An iron gate also measuring 5 m will be compensated at the rate of MNT 91,572 amounting to total compensation of MNT 458,760

One AP who will lose a 9.6m stone wall will receive total compensation MNT 131,280, at a unit rate of MNT 13,675/m. To cover the cost of construction of a new moveable iron fence in place of the concrete wall described above, compensation of MNT 373,718 will be provided, based on a unit rate of MNT 38,929.

One AP whose 47.6 m iron fence will be moved and rebuilt on the new property boundaries will be compensated at a market unit rate of MNT 18,371. This AP will also be compensated at the same unit rate for the removal and reconstruction of 10m of iron fence over the 10m ROW. Total compensation for these impacts amounts to MNT 1,076,906.

The removal of a 10m concrete wall on the property of one AP will result in compensation of MNT 60,770, the unit rate being MNT 6,077.

One AP whose root cellar will be removed will be compensated at the unit rate of MNT 155,517 per m2, amounting to total compensation of MNT 6,220,680.

An iron fence of 20m to be removed and rebuilt at the new property boundaries of an AP will be compensated at the unit rate of MNT 18,371 per running meter, amounting to total compensation of MNT 374,620

A paved area of 150 m2 will be compensated at a unit rate of MNT 11,269, totaling MNT 1,690,350.

Two wooden latrines with a total of five seats will be compensated, based on the property valuation undertaken for the subproject, at the current market rate of MNT 221,296 for material, transport and labor. Total compensation will amount to MNT 1,106,480.

56. The compensation of transaction costs will be carried out as follows:

For notary services for 5 affected entities with contract values up to MNT 1 Million at a unit rate of MNT 10,000 the project will pay a total of MNT 50,000. For notary services for 6 affected entities with contract values between MNT 1 and 10 Million at a unit rate of MNT 20,000 the project will pay a total of MNT 120,000.

For the preparation of cadastral maps for 11 affected entities to renew or acquire new possession or ownership licenses with State registration at a unit rate of MNT 50,000, the project will pay a total of MNT 550,000.

For service fees for 11 ownership/possession licenses, the project will pay a total of MNT 55,000.


For property rights registration for ownership and possession licenses, the project will pay MNT 132,000.

57. There are no temporary or permanent business losses for this subproject. 58. Vulnerable APs have been identified as members of a household either (i) with income below the poverty line of MNT 96,100 monthly per capita income or (ii) with elderly or disabled heads of household. Vulnerable APs, i.e. any interested adult family member, will receive preferential treatment for temporary employment in the civil works construction activities of the subproject.25 One such household with three persons has been identified.

25 A Temporary Project Employment Scheme Form has been designed to ascertain APs’ interest in participating in this scheme and to plan their deployment according to the skills and experience indicated in the form (see Annex 9).


Table 14: List of affected entities/persons and assets with compensation strategy of Altay Basic Urban Services Improvement Subproject

ID No

Name of affected entity or head of

household

Type of affected

entity

Affected land (m2)

Property status of affected

land

Comp. for affected

land (MNT)

Total licensed land (m2)

Total unlicensed land (m2)

Total land (m2)

Affected land as %

of total land

Type of affected

structure(s)

Size of affected structure

Unit cost

(MNT)

Comp. for affected

structures (MNT)

GA001 Namjav Buuveibaatar

Household 32.77 Owned 131,080 672 - 672 4.88 Wooden

fence 31.3m 14907 466,589

GA002 Davaajav Tomorbaatar

Household 11 Unlicensed

None (owner/pos

sessor license for replacement plot of

11m2)

- 11 11 10026 Garage 12.88m2 52947 681,957

Concrete area

150m2 11269 1,690,350

Concrete wall

6m 17473 104,838

New moveable iron fence

5m 51906 259,530

GA003 Zaluur-Altay Co, LTD

Commercial entity

376.58 Possessed 1,506,320 4732.6 - 4732.6 7.96

New iron gate

5m 91752 458,760

GA004

Khantaishir-Erdem Complex (school)

Institution 750.98 Possessed None 5460 - 5460 13.75 Iron fence 20m 18731 374,620

GA005 Khorol Enkhbayar

Household 26.69 Possessed 106,760 26.55 - 26.55 10027 Garage 25.73m2 13700

0 3,525,010

GA006 Mandal Golomt Co., LTD

Commercial entity

17.5 Possessed 70,000 284.4 - 284.4 6.15 Annex

Structure 16.83m2

137000

2,305,710

GA007 Vocational Institution 2420 Possessed None 29000 - 29000 8.34 Stone wall 9.6m 13675 131,280

26See footnote 4. 27 See footnote 4.


ID No


household

Type of affected

entity

Affected land (m2)

Property status of affected

land

Comp. for affected

land (MNT)

Total licensed land (m2)

Total unlicensed land (m2)

Total land (m2)

Affected land as %

of total land

Type of affected

structure(s)

Size of affected structure

Unit cost

(MNT)

Comp. for affected

structures (MNT)

New moveable iron fence

9.6m 38929 373,718

Center

Iron fence 57.6m 18731 1,078,906

GA008 Udmiin

Undraa Co., LTD

Commercial entity

77.34 Unlicensed

(possession license

for remaining 472.66m2 unlicensed

land)

- 550 550 14.06 Concrete

wall 10m 6077 60,770

Iron fence with

concrete foundation

10m 34200 342,000 GA009

2nd Kindergarten

Institution 1012 Possessed None 3230 - 3230 31.33

Latrine 3 22129

6 663,888

Root cellar 40m2 15551

7 6,220,680

Latrine 2 22129

6 442,592 GA010

Choijiljav Davaadorj

Household 110 Possessed 440,000 610 - 610 18.03

Wooden fence

10m 14907 149,070

Iron fence with

concrete base

10m 23731 237,310 GA011

Police Department

Institution 126.32 Possessed None 4730 - 4730 2.67

Wooden fence

29.2m 14907 435,284


Table 15: List of affected entities/persons and assets with compensation strategy of Altay Basic Urban Services Improvement Subproject, continued

ID Number

Name of AP Annual Business Income

Temporarily Affected

(MNT)

Total Annual HH Income, all

sources (MNT)

Days of Business

Loss

Compensation for Business Loss (MNT)

Affected Proportion

of Total Annual HH

Income

HH Size

Per Capita

per Month Income (MNT)

Vulnerable HH

Compensation for Relocation Costs

(MNT)

GA001 Namjav Buuveibaatar - Unclear - - - 3 Unclear Yes -

GA002 Davaajav Tomorbaatar 7,340,000 4 153,000 No

GA003 Zaluur-Altay Co, LTD

GA004 Khantaishir-Erdem Complex (school)

GA005 Khorol Enkhbayar 10,777,000 5 179500 No


GA007 Vocational Center

GA008 Udmiin Undraa Co., LTD

GA009 2nd Kindergarten

GA010 Choijiljav Davaadorj 6,000,000 5 100,000 No

GA011 Police Department


Table 16: Transaction costs of compensation strategy of Altay Basic Urban Services Improvement Subproject

ID Number


household

Notarization Cadastral Map

Land License

Registration

Property Rights

Registration

Total

GA001 Namjav Buuveibaatar 10,000 50,000 5,000 12,000 77,000

GA002 Davaajav Tomorbaatar 10,000 50,000 5,000 12,000 77,000

GA003 Zaluur-Altay Co, LTD 20,000 50,000 5,000 12,000 87,000

GA004

Khantaishir-Erdem Complex (school)

10,000 50,000 5,000 12,000 77,000

GA005 Khorol Enkhbayar 20,000 50,000 5,000 12,000 87,000


20,000 50,000 5,000 12,000 87,000

GA007 Vocational Center 20,000 50,000 5,000 12,000 87,000

GA008 Udmiin Undraa Co., LTD

10,000 50,000 5,000 12,000 77,000

GA009 2nd Kindergarten 20,000 50,000 5,000 12,000 87,000

GA010 Choijiljav Davaadorj 20,000 50,000 5,000 12,000 87,000

GA011 Police Department 10,000 50,000 5,000 12,000 77,000

I. LAR BUDGET, FINANCES AND DISBURSEMENT

59. Table 17 shows the budget for LAR in the Altay subproject, based on the compensation strategy discussed in Section H. It provides the unit rates applied in MNT and USD, based on the DMS and valuations of the LRCUDD (Annex 10) and a property valuation specialist (Annex 11), the number of units affected and the compensation and relocation costs in MNT and USD. The valuation of land is based on government unit rates, as these are higher than local market rates. The valuation of structures is based on market rates for material, labor, transport and taxes without depreciation for the age of structures, as determined by the valuation specialist. Transaction costs have been indicated by officers of the LRCUDD and a local notary public. No business loss costs have been identified for the Altay subproject. Relocation allowances will be paid according to market rates for basic labor. The cost of administration (stationary, computer consumables, secretarial services, etc.) has been determined at 4 percent of the cost of compensation and relocation (items 1-5). The contingency cost at 10 percent of the cost of items 1 to 6 is intended to cover unanticipated impacts and costs arising during LARP implementation.


Table 17: Budget for Land Acquisition and Resettlement in the Altay Basic Urban Services Improvement Subproject

Asset Type Unit Unit Rate

Number of Units

Cost

MNT USD MNT USD

1. Land

Residential, Institutional and Commercial[1]

m2 4,000 3.04 563.54 2,254,160 1713.16

Subtotal 2,254,160 1713.16

2. Structures

Wooden fence m 14907 11.33 70.5 1,050,943.50 798.72

Garage m2 52947 40.24 12.88 681,957.36 518.29

Garage (brick) m2 137000 104.12 25.73 3,525,010.00 2679.01

Concrete area m2 11269 8.56 150 1,690,350.00 1284.67

Concrete wall 1 m 17473 13.28 6 104,838.00 79.68

Concrete wall 2 m 6077 4.62 10 60,770.00 46.19

Iron bar 1 m 51906 39.45 5 259,530.00 197.24

Iron bar 2 m 38929 29.59 9.6 373,718.40 284.03

Iron gate m 91752 69.73 5 458,760.00 348.66

Iron fence m 18731 14.24 77.6 1,453,525.60 1104.68

Iron fence/concrete foundation (1)

m 23731 18.04 10 237,310.00 180.36

Iron fence/concrete foundation (2)

m 34200 25.99 10 342,000.00 259.92

Annex m2 137000 104.12 16.83 2,305,710.00 1752.34

Stone wall m 13675 10.39 9.6 131,280.00 99.77

Latrine m2 221296 168.18 5 1,106,480.00 840.92

Root cellar m2 155517 118.19 40 6,220,680.00 4727.71

Subtotal 20,002,862.86 15202.17 3. Transaction Costs

Notary Fees (1) Lump sum

10,000 7.60 5 50,000 38.00

Notary Fees (2) Lump sum

20,000 15.20 6 120,000 91.20

Cadastral map survey

Lump sum

50,000 38.00 11 550,000 418.00

Service Fee Lump sum

5,000 3.80 11 55,000 41.80

Property Rights Registration

Lump sum

12,000 9.12 11 132,000 100.32

Subtotal 907,000 689.32 4. Temporary Business Disruption

Business loss Days 0 0

Subtotal 0 0

5. Other Provisions

0 0

Subtotal 0 0

Subtotal of Compensation

Measures 23,164,023 17604.65

6. Administration 4% of 1- 926,560.91 704.19


Asset Type Unit Unit Rate

Number of Units

Cost

MNT USD MNT USD 5

7. Contingencies 10% of

1-6 2,409,058 1830.88

Grand Subtotal 26,499,642.152 20139.72

8. External Monitoring (Loan)

GRAND TOTAL

60. The Grand Subtotal entails costs incurred for compensation of land, structures, transaction costs, business losses and relocation, as well as administration and supervision, and contingencies. This cost will be covered by the State Government (MRTCUD) budget as indicated in the Detailed Cost Estimate and Financing Plan of the Project RRP and will be transferred to the PMU. The PMU will allocate 100% of the cost of compensation at replacement cost and allowances to the Govi-Altay Aimag Government before LARP implementation, which will be directly deposited to the bank account of the Govi-Altay Aimag LRCUDD for disbursement. LRCUDD will prepare a resolution for disbursement of compensation and rehabilitation funds for approval by the Governor of Govi-Altay Aimag. The cost for external monitoring and evaluation will be covered from Project loan funds and managed by the PMU for the entire Project. 61. The PUSO Director and Chief Engineer will work with the Govi-Altay Aimag LRCUDD to manage the process of formal contractual agreements with APs and disbursement of compensation. After having concluded contractual agreements about the transfer of affected assets from the APs to the government, the Govi-Altay Aimag LRCUDD will consolidate all financial commitments of the contracts and refer these to the PUSO Director and Chief Engineer. The PMU will initiate the transfer of funds to the LRCUDD. Payment of 75% of compensation will be made within 1 month of the time of conclusion of contractual agreements. The remaining 25% will be paid at the time of vacating of the affected assets.28

Disbursement will be carried out in the office of the Altay PIU. No land will be acquired by the government or handed over to the PUSO for commencing construction works without full payment of compensations due to the APs. However, in case of a dispute, the agreed amount of compensation will be pledged in the names of the concerned APs, pending a resolution through the grievance mechanism or decision by the courts. In such cases, the Project will hold all construction works at the disputed property until the final settlement of the case, but may commence civil works at all undisputed locations.

J. MONITORING AND EVALUATION

62. Monitoring of compliance with the LARP and the LARF during implementation is carried out by the Altay PIU together with the PMU, as well as by an external monitoring agency (EMA), that has been engaged by the PMU.

i. Internal Monitoring

63. PUSO conducts its own internal monitoring of LARP implementation and submits monthly reports to the PMU. The PMU includes the results of internal LAR monitoring in

28 An exception will be made in the case of alteration or construction of houses and other structures, when the first payment of compensation proves insufficient. The RPIC or Working Group will approve the release of the remaining 25 percent or part thereof to ensure timely completion of alterations or construction.


its quarterly reports to the ADB.29 The Project mid-term review will include a separate

section on the progress of LARP implementation. Upon completion of LAR activities in the Altay subproject, the Govi-Altay Aimag Government will prepare a resettlement completion report for submission to ADB. Table 18 provides the format for the monthly LAR monitoring reports. 64. The objectives of internal monitoring are to ensure:

(i) Proper execution of responsibilities of key stakeholders;30

(ii) Protection of the rights of APs under Mongolian laws, ADB IRP, the LARF and this LARP; (iii) Adequate and prompt payment of compensation; and (iv) Timely grievance redress.

Table 18: Internal Monitoring Form Subproject site

Total no. of AP households (HH)

LAR Activities

Month Comments

1 2 3 4 5 6 Part A. Preparation/Procedural steps

Identification of LAR scope ()

Field verification and modification of technical design ()

Formation and meetings of WG ()

Approval of technical design ()

Notification of individual APs and of cut-off date

Land and valuation surveys ()

Census (no. AP HH)

Socio-economic survey (no. AP HH)

Preparation of draft LARP ()

AP consultation:

29 As and when necessary to report significant progress, implementation issues, or status of earlier identified problems. 30 City Government of Ulaanbaatar, Aimag Governments, DOR, Land Administration Department, Property Relations Agency, Citizens Representative Khural of Capital City or Aimags as well as of Districts and Soums, District/Soum Governor, Khoroo/Bagh Governor, RPIC, PMU, PIU, CBO and NGO, AP representatives.


LAR Activities

Month Comments

1 2 3 4 5 6 disclosure of draft LARP (no. AP HH) Finalization of LARP ()

AP consultation: disclosure of final LARP (no. AP HH)

Endorsement by MRTCUD ()

ADB review and approval ( )

Disclosure of approved LARP on ADB website and in AP community ()

Part B. Implementation

Conclusion of contractual agreement (no. AP HH)

Payment of compensation price for assets (no. AP HH)

Acquisition of land and other assets (no. AP HH)

Commencement of civil works ()

65. In addition, the Audit Department of the Govi-Altay Aimag Government will independently audit and monitor the agencies involved in the land acquisition and resettlement process, based on relevant laws and regulations. The PMU and the Altay PIU, will periodically review audits, and report any irregularities to ADB, to allow early identification and resolution of problems encountered.

ii. External Monitoring and Evaluation

66. The main objective of external monitoring and evaluation is independent concurrent and ex-post evaluation of LAR in the Project as a whole to (i) assess the effectiveness, impact and sustainability of LAR measures, (ii) determine whether safeguard compliance has been met, and (iii) learn strategic lessons for future policy formulation and planning. The PMU has engaged an EMA, which will investigate and assess LARP implementation in each subproject, including Altay, over a three year period and regularly report to the PMU and ADB. The EMA will have a total of 5 inputs (Baseline, 6 months, 12 months, 24 months and 36 months) at 8 subproject sites. The TOR are included in Annex 4 of the LARF.


67. External monitoring will be carried out biannually during the implementation of LARPs and its results will be reported to the PMU and ADB in semi-annual reports at the end of each input. The resettlement specialists of the project implementation consultant’s team will review and discuss the external monitoring design with the EMA. The external monitoring process will include the following:

Review and verification of the internal monitoring reports of PMU;

Review and augmentation31 of the socio-economic baseline surveys, if necessary;

Identification and selection of impact indicators;

Impact assessment through quantitative and qualitative surveys;

Assessment of whether compensation was adequate to replace losses;

Assessment of business losses and whether compensation was adequate, where applicable;

Assessment of whether replacement plots were adequate and provided in time;

Assessment of adequate relocation and rehabilitation of households, where applicable ;

Assessment of living standards/incomes of APs before and after the Project;

Assessment of APs degree of satisfaction with resettlement implementation;

Assessment of the effectiveness, efficiency, impact and sustainability of LAR;

Assessment of compliance with local laws, ADB's IRP and the LARP;

Assessment of consultation with local stakeholders

Recommendation of LAR process modification and adaptation measures;

Lessons learned for future resettlement policy formulation and planning; and

All data collection and analysis will be gender disaggregated.

68. Among the key indicators will be the following32:

(i) Socio-economic post-resettlement conditions of APs;

(ii) Impact of LAR on women, children, elderly, the poor and other vulnerable groups;

(iii) Degree of support for and post LAR status of affected vulnerable households;

(iv) Perceptions of the APs regarding the LAR process implementation;

(v) Participation and involvement of APs in LARP implementation;

(vi) Effectives and fairness of valuation, compensation assessment and disbursement;

(vii) Implementation and effectiveness of income restoration measures;

(viii) Effectives and fairness of grievance redress mechanisms;

(ix) Level of satisfaction among APs in the post-resettlement period; and

(x) Adequacy of resettlement funds and results of financial audits. 31 The external monitor will review the LARPs to ensure they contain adequate baseline data; otherwise, the monitor should conduct further baseline investigations prior to commencement of resettlement. 32 The ADB ’Handbook on Resettlement, A Guide to Good Practice’ and ‘Handbook for Incorporation of Social Dimensions in Projects’ will be consulted.


69. The EMA will carry out post-implementation evaluation on the basis of the socioeconomic baseline surveys 1 and 2 years after the completion of LAR activities in each subproject, to ascertain whether the subproject was able to implement the objectives and provisions of the LARP. In case of a short-fall the EMA will recommend remedial measures. Annual evaluation reports will be submitted to the PMU, MRTCUD and ADB at the end of each input.

K. IMPLEMENTATION SCHEDULE

70. The implementation schedule indicating the timeline for activities in the design and implementation of the Altay subproject LARP is shown in Table 19.

Table 19: LARP Implementation Schedule for the Altay Subproject

2010 2011 LARP ACTIVITIES 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07

Identification of LAR scope

Field verification and modification of technical design

Formation and meetings of WG

Approval of technical design

Notification of individual APs and of cut-off date

Land and property measurements and valuation surveys

Census and socio-economic survey, and identification of vulnerable persons/HHs

Preparation of draft LARP

AP consultation & disclosure of draft LARP

Revision of draft LARP

AP consultation: disclosure of revised draft LARP

Endorsement by MRTCUD & Govi-Altay Aimag Government

ADB review and approval

Disclosure of approved LARP on ADB website and in AP community

Funding for LAR compensation

Conclusion of contractual agreements

AP consultation: modalities / timing

Disbursement of compensation


2010 2011 LARP ACTIVITIES 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07

Acquisition of land and other assets

Commencement of civil works

Internal Monitoring

External monitoring and evaluation (semi-annual)

1st M&E

LARP for the Altay Basic Urban Services Improvement Subproject

ANNEX 1: DETAILED TECHNICAL DESIGN MAP FOR LAR AT ALTAY SUBPROJECT






ANNEX 2 – LOCATION MAPPING AND PHOTOS













ANNEX 3: GOVERNMENT RESOLUTION 131 OF THE AIMAG DEPUTY GOVERNOR REGARDING ESTABLISHMENT OF WORKING GROUP


ANNEX 4: PUBLIC NOTICE OF CUT-OFF DATE FOR ALTAY SUBPROJECT


Notice to the Residents of the Ger Area of Altay City, Govi-Altay Aimag

Within the framework of the Urban Development Sector Project funded by the Asian Development Bank it is planned to construct water supply and sewage pipelines in the ger area of Altay city. Under the ADB Resettlement Policy of 1995, new settlement and construction of new structures of the residents with properties (land and immovable structures) in the Right of Way of the pipeline and thus directly affected by land acquisition for its construction will be stopped and a cut-off date is being declared as of 30 April 2010. Eligibility of persons and households will only be granted for their affected land and structures located in the Right of Way of the pipeline before the cut-off date. Any persons moving into and occupying land in the Right of Way of the pipeline on or after 30 April 2010 will not be eligible for compensation, relocation and rehabilitation measures by the project. Alterations to affected land and structures or construction of new structures in the Right of Way of the pipeline undertaken on or after 30 April 2010 will not be eligible for compensation, relocation and rehabilitation measures by the project. The Affected Persons eligible for benefits under the ADB Policy will be contacted by staff of the Land Affairs, Construction and Urban Development Department of Govi-Altay aimag and of the UDSP over the coming weeks and consulted throughout the land acquisition and resettlement process. Director of Land Relations, Construction and Urban Development Department A. Munkhtur


ANNEX 5: LRCUUD NOTICE OF ALTAY SUBPROJECT TO INDIVIDUAL AFFECTED HOUSEHOLDS

ГОВЬ-АЛТАЙ АЙМГИЙН ГАЗРЫН ХАРИЛЦАА, БАРИЛГА, ХОТ БАЙГУУЛАЛТЫН ГАЗРЫН

МЭДЭГДЭЛ

Дугаар: __________________________________________________ ____ он ____ сар ____өдөр

Хэнд: __________________________________________________

Хаяг: ______________________________________________________________________________________

МУ-ын Засгийн газрын шийдвэрийн дагуу, Азийн Хөгжлийн Банк /АХБ/-ны хөнгөлттэй зээлээр хэрэгжиж буй

“Хот байгуулалтын салбарын МОН2301 төсөл” нь Говь-Алтай аймгийн Алтай хотын ___________________ -багт

цэвэр усны шугам барих юм. Дээр дурьдсан төслийн шугамын трасс дээр таны өмчилсөн/эзэмшсэн дараахь

газар/байгууламж байрлаж байгаа бөгөөд газар чөлөөлөлт, нүүлгэн шилжүүлэлтэнд өртөнө гэдгийг Таньд

албан ёсоор мэдэгдэж байна. Үүнд:

1. _______________________________________ 2. _______________________________________

3. _______________________________________ 4. _______________________________________

Аймгийн Газрын албаны ажилтнууд, Төсөл Хэрэгжүүлэх Нэгж /ТХН/-ийн мэргэжилтнүүд тантай биечлэн уулзана.

Мөн нөлөөлөлд өртсөн бүх иргэдтэй “Газар чөлөөлөлт ба нүүлгэн шилжүүлэлтийн төлөвлөгөө” болон төсөлтэй

холбогдолтой бусад асуудлын талаар ярилцахаар зөвлөлдөх уулзалтуудыг зохион байгуулна.

ДАРГА Гарын үсэг

Утас:

ГОВЬ-АЛТАЙ АЙМГИЙН ГАЗРЫН ХАРИЛЦАА, БАРИЛГА, ХОТ БАЙГУУЛАЛТЫН ГАЗРЫН

МЭДЭГДЭЛ

Дугаар: __________________________________________________ ____ он ____ сар ____өдөр

Хэнд: __________________________________________________

Хаяг: _____________________________________________________________________________________

МУ-ын Засгийн газрын шийдвэрийн дагуу, Азийн Хөгжлийн Банк /АХБ/-ны хөнгөлттэй зээлээр хэрэгжиж буй

“Хот байгуулалтын салбарын МОН2301 төсөл ” нь Говь-Алтай аймгийн Алтай хотын ___________________ -

багт цэвэр усны шугам барих юм. Дээр дурьдсан төслийн шугамын трасс дээр таны өмчилсөн/эзэмшсэн дараахь

газар/байгууламж байрлаж байгаа бөгөөд газар чөлөөлөлт, нүүлгэн шилжүүлэлтэнд өртөнө гэдгийг Таньд

албан ёсоор мэдэгдэж байна. Үүнд:

1. _______________________________________ 2. _______________________________________

3. _______________________________________ 4. _______________________________________

Аймгийн Газрын албаны ажилтнууд, Төсөл Хэрэгжүүлэх Нэгж /ТХН/-ийн мэргэжилтнүүд тантай биечлэн уулзана.

Мөн нөлөөлөлд өртсөн бүх иргэдтэй “Газар чөлөөлөлт ба нүүлгэн шилжүүлэлтийн төлөвлөгөө” болон төсөлтэй

холбогдолтой бусад асуудлын талаар ярилцахаар зөвлөлдөх уулзалтуудыг зохион байгуулна.

Мэдэгдэл хүлээн авсан: ___________________________________ ______________________________________ Гарын үсэг

Хаяг/Утасны дугаар: ___________________________________________________________________________


LAND ADMINISTRATION DEPARTMENT OF GOV-ALTAI AIMAG

NOTIFICATION

Number: ____________________________ ____ year ____ month ____day

To: __________________________________________________

Address: __________________________________________________

In accordance with the decision of the Government of Mongolia the Urban Development Sector Project (UDSP) will construct

water supply pipe in bag ________________________________of Govi-Altai aimag center with financial support from the

Asian Development Bank (ADB). You are hereby officially notified that the following land owned/possessed by you and

structures thereupon are located in the Right of Way (ROW) of the above mentioned project and will be affected by land

acquisition and/or resettlement:

1. _______________________________________ 2. _______________________________________

3. _______________________________________ 4. _______________________________________

Land officers from the Govi-Altai aimag’s Land Administration Department and land acquisition and resettlement specialists from

the Project Implementation Unit (PIU) will visit you are at your residences or businesses and also hold several consultation

meetings with all affected persons to discuss the Land Acquisition and Resettlement Plan and other related issues for your area.

DIRECTOR OF THE _____________________________ _____________________________________

LAND ADMINISTRATION DEPARTMENT Signature

Phone number:

______________________________________________________________________________

LAND ADMINISTRATION DEPARTMENT OF GOVI-ALTAI AIMAG

NOTIFICATION

Number: ____________________________ ____ year ____ month ____day

To: __________________________________________________

Address: __________________________________________________

In accordance with the decision of the Government of Mongolia the Urban Development Sector Project (UDSP) will construct

water supply pipe in bag ________________________________of Govi-Altai aimag center with financial support from the

Asian Development Bank (ADB). You are hereby officially notified that the following land owned/possessed by you and

structures thereupon are located in the Right of Way (ROW) of the above mentioned project and will be affected by land

acquisition and/or resettlement:

1. _______________________________________ 2. _______________________________________

3. _______________________________________ 4. _______________________________________

Land officers from the Govi-Altai aimag Land Administration Department and land acquisition and resettlement specialists from

the Project Implementation Unit (PIU) will visit you are at your residences or businesses and also hold several consultation

meetings with all affected persons to discuss the Land Acquisition and Resettlement Plan and other related issues for your area.

Notification received by: _________________________________ ______________________________________ Signature

Address/phone number: ___________________________________________________________________________


ANNEX 6: RESOLUTION OF THE GOVERNOR OF GOVI-ALTAY AIMAG REGARDING NON-COMPENSATION OF INSTITUTIONAL LAND AFFECTED BY THE

ALTAY SUBPROJECT


ANNEX 7: ATTENDANCE SHEETS OF PUBLIC CONSULTATION EVENTS FOR THE ALTAY SUBPROJECT



ANNEX 8: GRIEVANCE ACTION FORM (GAF) Name: _______________________________________________________ Address: _____________________________________________________ Phone: ____________________________________ Date: ____________________ Project site: ________________________________ District: ____________________________________ Aimag/City: ____________________________ Name and position of recipient: ____________________________________________ Date of last disclosure meeting: ____________________________________________ Category of grievance:

Legal Technical

Financial Social

Administrative Other

Item Description Name, position and signature

of person(s) responsible:

AP: Date:

Grievance

Recipient: Date:

Resolution Officer in charge: Date:


Action taken Officer in charge: Date:

Follow up Officer in charge: Date:

Comments, observations

Officer in charge: Date:


ANNEX 9: TEMPORARY PROJECT EMPLOYMENT SCHEME FORM From: PIU Altay

AP name:

Address:

AP ID no:

Your household is eligible for preferential treatment for temporary employment with the contractors undertaking civil works construction activities for the UDSP at your subproject site. You are eligible because you have been identified either as A vulnerable affected household with income below the poverty line of MNT 96,100 monthly per capita income or with elderly or disabled heads of household; or An affected household losing unlicensed land to the project without remaining legalizable land. The UDSP will be able to provide you with temporary employment at a skills level commensurate with your education and experience in the construction activities for the subproject in your Khoroo/Bagh if any of your adult household members are interested in participating in this AP Temporary Project Employment Scheme. Please fill in the below information required and return this signed form to our project staff. Name(s) of person(s) intending to participate:

Education:

Skill training:

Work experience:

Years of employment:

I am interested in temporary employment with the AP Temporary Project Employment Compensation Scheme:

Yes No Signature: ____________________________________________ Date: ____________________________________________


ANNEX 10: DETAILED MEASUREMENT SURVEY AND VALUATION OF AFFECTED LAND AT THE ALTAY SUBPROJECT



Total land

/m2/ Total affected land

/m2/

Name ID number Address Possession

Status Licensed Unlicensed Licensed Unlicensed

Valuation (Possessed)

MNT

Valuation (Owned)

MNT Explanation

1 Namjav Buuveibaatar

DZ71022631 Bayanshand

bag 10-4 Owned 672 - 32.77 - - 131 080 Move fence

2 Davaajab Tomorbaatar

Harzat bag, bld16, #5-2

Unlicensed - 11 - 11 - - Move

wooden shed

3 Zaluur-Altay Co, LTD

2023911 Harzat bag, behind 5th

school Possessed 4732.6 - 376.58 - 1 506 320 -

Pavement, move fence

4

Hantaishir-Erdem complex (school)

9017046 Harzat bag Possessed 5460 - 750.98 - - - *

5 Khorol Enkhbayar

DE63062311 Harzat bag,

bld 19 Possessed 26.55 - 26.69 - 106 760 -

Take down garage

6 Mandal Golomt Co., LTD

3244857

Harzat bag, Mandal Golomt

company building

Possessed 284.4 - 17.5 - 70 000 - Take down brick shed

7 Vocational center

9014721 Jargalant

bag Possessed 29000 - 2420 - - - *

8 Udmiin Undraa Co., LTD

2633779 Jargalant

bag Unlicensed - 550 - 77.34 - -

Legalize remained

land

9 2nd kindergarten

9014682 Jargalant

bag Possessed 3230 - 1012 - - - *

10 Choijiljav Davaadorj

DU67010513 Harzat bag Possessed 610 - 110 - 440 000 -

Piping goes through the possessed land, move

fence

11 Police department

9018034 Harzat bag Possessed 4730 - 126.32 - - *

Total 48745.69 561 4872.84 88.34 2 123 080 131 080 According to the official letter number 2/647 from 4 May 2010 of Governor of Govi-Altay aimag, state organizations will not be compensated for possessed land. Prepared by: A. Purevsed / Specialist in the LRCUDD/


ANNEX 11: DETAILED MEASUREMENT SURVEY AND VALUATION OF AFFECTED PROPERTY OF THE ALTAY SUBPROJECT



# AP #

Name Registration

# Address / Location

Type of Occupation

Type of Affected Structure

Size of Affected Structure

Unit Cost MNT

Size of Plot (m2) /

Length of Fence (m)

Valuation

1 1 Namjav Buuveibaatar

DZ71022631 Bayanshand bag 10-4 Owned Moving fence

wooden fence-31.3 m

14907 31.3 466,589

2 2

Davaajav Tomorbaatar

DU64122517 Harzat bag, bld16, #5-2

Unlicensed Garage

mixed garage with concrete

and iron- 2.8m x 4.6m, height -

1.8м

52947 12.88 681,957

3 Concrete area 30m x 5m 11269 150 1,690,350

4 Take down

concrete wall

Length -6m, height-2.3m, width -0.2 m

17473 6 104,838

5 Building new iron fence-length 5m

2 m high iron bar-length -5м

51906 5 259,530

6

3 Zaluur-Altay CO., LTD

2023911 Harzat bag, on north from the

5th school Possessed

New iron gate length -5м, height 2.0м

91752 5 458,760

7 4

Khantaishir-Erdem complex (school)

9017046 Harzat bag

Possessed Moving fence iron bar- 20m 18731 20 374,620

8 5

Khorol Enkhbayar

DE63062311 Harzat bag, bld 19 Possessed Garage

brick, 4.15m x 6.20m, height -

2.5 m 137000 25.73 3,525,010


# AP #

Name Registration


Type of Occupation



Unit Cost MNT

Size of Plot (m2) /

Length of Fence (m)

Valuation

9 6

Mandal Golomt Co., LTD

3244857 Harzat bag, Mandal Golomt company building

Possessed Brick shed /appendix/

Brick shed /appendix/ with plastering 3.3 x 5.1m, height- 2.3m, no door and window, hasn't been worked last years.

137000 16.83 2,305,710

10 Take down stone wall

Length- 9.6м, height -1.8м, width -0.5м

13675 9.6 131,280

11 Building new iron fence

iron bar- 9.6 m 38929 9.6 373,718

12

7 Vocational center

9014721 Jargalant bag Possessed

Moving iron fence

iron bar -57.6 m 18731 57.6 1,078,906

13 8 Udmiin Undraa

Co., LTD 2633779 Jargalant bag Unlicensed

Take down concrete wall

Length- 10m, height-0.8m, width- 0.2m

6077 10 60,770

15 Moving fence 20m 14907 20 298,140

16 9

2-nd kindergarten

9014682 Jargalant bag Possessed Moving latrine

wooden latrine 2 pc, iron 1 piece

221296 3 663,888

17 Root celler

with concrete wall 2.2 m

height, 10m x 4m,

155517 40 6,220,680

18

10 Choigiljav Davaadorj

DU67010513 Harzat bag Possessed

Moving latrine wooden latrine

for 2 seats 221296 2 442,592


# AP #

Name Registration


Type of Occupation



Unit Cost MNT

Size of Plot (m2) /

Length of Fence (m)

Valuation

19 Moving fence Wooden fence -

10m 14907 10 149,070

20 Moving fence Iron bar with

concrete base-10 m

23731 10 237,310

21

11 Police department

9018034 Harzat bag Possessed

Moving fence for wood

wooden fence -29.2м

14907 29.2 435,284

Total 19,959,003

Evaluation prepared by: BESGE company specialist: S. Ariunjargal

Documents

MON: Urban Development Sector Project · Structures BNBD 40-02-06. See Annex 1 for a detailed technical design map of the Altay subproject. Scope of LAR impact: Only some the water