Land Acquisition and Resettlement Plan

June 2021

Mongolia: Ulaanbaatar Urban Services and Ger

Areas Development Investment Program (Tranche 2)

—Dambadarjaa Heating Plant (DAHP)

Prepared by the Municipality of Ulaanbaatar for Mongolia and the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 15 June 2021)

Currency unit – togrog (MNT)

MNT1.00 = $0.00035 $1.00 = MNT2,849.82

ABBREVIATIONS

ADB – Asian Development Bank AH – affected household ALAMGAC – Agency for Land Administration and Management, Geodesy

and Cartography AP – affected person DMS – detailed measurement survey EMA – external monitoring agency GADIP – Ulaanbaatar Urban Services and Ger Areas Development

Investment Program GASR – General Authority for State Registration GOM – Government of Mongolia GRM – grievance redress mechanism IPSA – initial poverty and social analysis IR – involuntary resettlement LAD – Land Acquisition Division of Land Management Agency LARP – land acquisition and resettlement plan LAR WG – land acquisition and resettlement working group LMA – Land Management Agency of MUB M&E – monitoring and evaluation MFF – multitranche financing facility MOU – memorandum of understanding MUB – Municipality of Ulaanbaatar NGO – nongovernment organization OSPF – Office of the Special Project Facilitator, ADB PMO – program management office RF – resettlement framework ROW – right-of-way SC – steering committee SPS – Safeguard Policy Statement UB – Ulaanbaatar

NOTE

In this report, "$" refers to United States dollars. This land acquisition and resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the terms of use section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Table of Contents

Page

I. INTRODUCTION 1

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACTS 2

III. SOCIOECONOMIC INFORMATION OF THE AFFECTED PERSONS 7

IV. OBJECTIVES, LEGAL AND POLICY FRAMEWORK 12

V. ELIGIBILITY AND ENTITLEMENTS 13

VI. INSTITUTIONAL ARRANGEMENTS AND IMPLEMENTATION 17

VII. CONSULTATION, PARTICIPATION AND DISCLOSURE 18

VIII. GRIEVANCE REDRESS MECHANISM 21

IX. COMPENSATION STANDARDS AND LIVELIHOOD SUPPORT ASSISTANCE 22

X. RELOCATION STRATEGY 25

XI. BUDGET AND FINANCING 25

XII. IMPLEMENTATION SCHEDULE 26

XIII. MONITORING AND EVALUATION 26

ANNEXES

ANNEX 1: LAND ACQUISITION AND RESETTLEMENT MAPPING ANNEX 2: PROJECT AND CUT-OFF DATE ANNOUNCEMENT ANNEX 3: AFFECTED PERSONS ANNEX 4: AFFECTED LAND ANNEX 5: WILLINGNESS SURVERY MAP ANNEX 6: LANDOWNERS REQUEST ANNEX 7: PARTICIPANTS OF PUBLIC CONSULTATION MEETING ANNEX 8: OFFICIAL LETTERS TO AFFECTED HOUSEHOLDS ANNEX 9: COMPENSATION NEGOTIATION DOCUMENT ANNEX 10: COMPENSATION CALCULATIONS OF AFFECTED HOUSEHOLDS ANNEX 11: GOVERNOR’S ORDER FOR ACQUISITION OF CITIZENS LAND WITH

COMPENSATION

LIST OF TABLES

TABLE 1: OVERALL LAR IMPACTS 2

TABLE 2: AFFECTED PERSONS 3

TABLE 3: POTENTIALLY VULNERABLE AFFECTED HOUSEHOLDS 4

TABLE 4: AFFECTED HOUSEHOLDS WITHOUT LAND RIGHTS 5

TABLE 5: AFFECTED STRUCTURES 6

TABLE 6: PER CAPITA AVERAGE INCOME 10

TABLE 7: DURABLE ASSETS INFORMATION 12

TABLE 8: ELIGIBILITY AND ENTITLEMENTS 13

TABLE 9: WILLINGNESS SURVEY RESULTS 19

TABLE 10: COMPENSATION RATES FOR STRUCTURES 23

TABLE 11: LAND ACQUISITION AND RESETTLEMENT BUDGET 26

TABLE 12: IMPLEMENTATION SCHEDULE 26

LIST OF FIGURES

FIGURE 1: LOCATION MAP OF GADIP SUBCENTERS 1

FIGURE 2: LOCATION MAP OF DAMBADARJAA HEATING PLANT 2

FIGURE 3: AGE CLASSIFICATION OF ALL HOUSEHOLD MEMBERS 8

FIGURE 4: EDUCATION LEVEL OF ALL HOUSEHOLD MEMBERS 8

FIGURE 5: EMPLOYMENT STATUS 9

FIGURE 6: MONTHLY INCOME INTERVAL 10

FIGURE 6: AVERAGE MONTHLY FIXED EXPENDITURE 11

FIGURE 8: KEY STAKEHOLDERS IN THE LAND ACQUISITION RESETTLEMENT PROCESS, THEIR ROLES AND

RESPONSIBILITIES 17

FIGURE 9: FACEBOOK GROUP 20

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 Persons: In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

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 relinquish their land or land use rights to the government (i) for a public purpose and (ii) in return for compensation. This land may be either owned or possessed by the affected person.

Land Ownership: article 3.1.2. of Law on Land – “to own land” means to be in legitimate control of land with the right to dispose of this land. Land is given to all Mongolian citizens, regardless of age and sex, one time free of charge until 1 May 2028. The size of land parcels allocated for ownership for family needs vary depending on location. In the Capital city – Ulaanbaatar and along the national level main roads connecting aimags with Ulaanbaatar, individuals are entitled to up to 0.07 hectares, in the aimag centers up to 0.35 hectares, and in soum centers and villages up to 0.5 hectares land parcels, respectively. The size of land parcels for commercial use depends on the type of activities (agricultural, industrial, etc.) and decided based on the size of existing land parcel under possession, if applicable, and scope and nature of the business. The land ownership right for commercial use is obtained by purchasing the land directly from the state or through auctioning.

Land Possession: article 3.1.3. of Law on Land – “to possess land” means to be in legitimate control of land in accordance with purpose of its use and terms and conditions specified in respective contracts. The land possession right can be obtained only by the citizens and legal persons of Mongolia. The respective local governors make the decision for provision of land possession rights. The land possession rights are provided for 15–60 years, with possible extension of 40 years. The size of land plot for land for possession is up to 0.07 ha for household residential use. The size of land for commercial purposes depends on the type of activities and is set in the contract between the state and land possessor. In current practice, the state, as the owner of the land, provides land possession rights to the interested Mongolian persons. Land possession right is transferable and can be used as collateral as well.

Land Use: article 3.1.3. of Law on Land – “to use land” means to undertake a legitimate and concrete activity to make use of some of the land’s characteristics in accordance with contracts made with owners and possessors of land. Land use rights can be given to Mongolian citizens, companies and organizations or foreign countries, international organizations, foreign legal persons, companies with foreign investment, foreign citizens and stateless persons for specific purpose, duration, conditions and under contract. Land use rights for the foreign citizens and stateless persons (who reside in Mongolia for more than 183 days) can be provided only for family residence purpose through auctioning by the respective local governor. The duration for such rights shall be for 5 years and is renewable for 5 years at a time. Provision of land use rights for specific period of time for foreign countries, international organizations, and foreign legal persons under leasing and concession agreement shall be decided by the Parliament of Mongolia. The boundaries and procedures of use shall be set by the Government of Mongolia. As for the companies with foreign investment, the land use rights shall be provided in accordance with the law and in this case the Government of Mongolia decides the duration of the tenure.

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.

Servitude (easement): A restriction or obligation attached to a property that entitles somebody other than the owner to a specific use of it such as the right to cross it or occupy it temporarily for maintenance of utility services.

Social Preparation: Process of consultation with APs undertaken before key resettlement decisions are made, to build their capacity to deal with resettlement.

Subcenters: are clusters of public facilities and businesses (often) with an associated transport hub. Generally, they are characterized by urban settlement around public infrastructure built during the Soviet period and new public facilities built more recently by government and donor programs (for example khoroo offices, police stations, schools and kindergartens). Their sphere of influence is from 30,000 to more than 100,000 people. Residential areas surround the core of subcenter and consist mostly of individual residential structures on large plots, although in some areas a densification process of sorts has started by the division of plots and the construction of multifamily houses.

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 impacts.

PROJECT LOCATION MAP

Figure 1: Location Map of GADIP Subcenters

Figure 2: Location Map of Dambadarjaa Heating Plant

I. INTRODUCTION

1. This updated Land Acquisition and Resettlement Plan (LARP) for Dambadarjaa subcenter heating plant under the Tranche 2 of Ulaanbaatar Urban Services and Ger Areas Development Investment Program (GADIP) is prepared in accordance with applicable laws of Mongolia, Asian Development Bank's (ADB) Safeguard Policy Statement (SPS), 2009, and the updated Resettlement Framework (RF), March 2020. ADB loan funds will be used for implementing the resettlement provisions for this subproject. See figure 1 for the location of GADIP subcenters, and figure 2 for location of the heating plant in the Dambadarjaa subcenter. 2. This updated LARP is agreed upon between the Municipality of Ulaanbaatar (MUB) and ADB. 3. The Program. Ulaanbaatar Urban Services and Ger Areas Development Investment Program aims to improve the quality and coverage of urban infrastructure and basic services, and to implement a sustainable and inclusive process of urban development in Ulaanbaatar's middle ger areas0

1. It is expected to directly benefit 400,000 people living in the middle ger areas and to indirectly benefit the entire population of Ulaanbaatar. The expected impact of the investment program will be improved living conditions in Ulaanbaatar. The expected outcome will be a sustainable, inclusive, and well-structured development of ger areas in Ulaanbaatar. GADIP is funded through a multitranche financing facility (MFF) lending modality totaling up to $320 million over a period of 10 years and will be comprised of three tranches. 4. Tranche 2 is in line with the program objectives to create a network of liveable, competitive, and inclusive subcenters in Ulaanbaatar’s ger areas, with similar outputs to the tranche 1. The two subcenters covered under Tranche 2 are Dambadarjaa and Denjiin Myanga which are located in the central and middle ger areas in the northern part of Ulaanbaatar. Dambadarjaa subcenter is located in the territories of 16 and 17 khoroos of Sukhbaatar district, in the northern part of Ulaanbaatar and has an area of 70.7 hectares, hosts approximately 1,145 khashaas, see figure 1. Location Map of GADIP subcenters. 5. The Dambadarjaa subcenter is located in the territories of 16 and 17 khoroos of Sukhbaatar district and has an area of 70.7 hectares, hosts approximately 1,145 khashaas. Within the Dambadarjaa subcenter the construction of roads (2.8 km, width 12-24m), 63MW heating plant and heating network with 7 substations (5.6km, pipes with diameters D100mm – D350mm), water supply network (3.5km, pipes with diameters D150mm-D300mm), sewerage network (4.5km, pipes with diameters D2000mm-D3000mm), telecommunications (one telecommunications center and 6.3 km optical cable with manholes and pipes) and electricity networks (cable lines of 10Kv/0.4Kv of 12km length and 1 substation) will be carried out.

6. Dambadarjaa heating plant. The plant is located in the 19th khoroo of Chingeltei district, about 500m to the east from the Dambadarjaa subcenter area. The heating plant, indicated in blue polygon in the lower left corner on figure 2, is located outside the actual boundary of Dambadarjaa subcenter, as the location needs to be further away from the Selbe river and due to the suggested area being suitable as per the detailed design. The heating plant will have three coal fuelled water boilers with total of 63MW capacity. The plant will consist of main building, coal storage, water treatment system, main control building, coal handling system, chimney, gas and ash handling

1 There are three types of ger areas: (i) Central Ger Areas are located around the city’s built core and where the

potential for access to water, roads, and solid waste collection is highest. They are characterized by modern style buildings, which are replacing the traditional gers, and developing microenterprises as household incomes and savings increase. (ii) Middle Ger Areas are located around the Central Ger Areas and whose inhabitants depend on water from tankers and use pit latrines. These areas have intricate streets that are difficult to access and are prone to flooding because of lack of drainage—with conditions worsening during the winter months. (iii) Peri-Urban Ger Areas surround the Middle Ger Areas and are expanding at an accelerating pace. They have the least access to basic infrastructure and services. Inhabitants of these areas mainly rely on tanked water supply, simple pit latrines, and are built on or along hazardous sites near high-tension lines, natural drainage channels, or steep slopes.

system, workshop, ignition oil system, drainage and sewerage system, plant roads and office building. The total area needed for the plant is about 20,000m2, and the footprint of the heating plant’s buildings is 8,595 m2.

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACTS

7. Based on discussions with the PMO engineers, detailed technical design and environmental consultants, the area needed, and possible locations for the heating plant was identified. The total area needed for the heating plant is approximately 22,000m2 and the possible location was identified in the 19th khoroo of Chingeltei District, along the main road to north leading to the summer camp area and to the east leading to Dambadarjaa area. 8. PMO has informed the need for land for the heating plant at the public consultation meetings held during May – Jun 2019 and conducted willingness survey among landowners of 19th khoroo of Chingeltei district in Jan 2020 to identify, if there are a group of landowners, willing to negotiate and provide their land for the heating plant, refer to section VII. Consultation, Participation and Disclosure for details of the consultations. Following the information at the public meetings and willingness survey, 41 landowners came together and expressed willingness to provide their land, total of 19,040m2, to MUB for heating plant. Thus, the selection of the site was finalized based on the landowners’ willingness to provide their land within the area identified by the engineers and environmental specialists. The total area of the land parcels the landowners are willing to provide is 19,040m2. The public street area in between the land parcels is about 3,000m2, which makes the total area for construction of heating plant to be about 22,000m2. See Annex 1: LAR map of Heating Plant for the land parcels to be provided by the landowners. 9. A socio-economic survey (SES) of affected households (AHs), valuation of their land and properties were conducted between May – July 2020 and May - June 2021. The project and cut-off date announcement was provided to the AHs on 3 Jul 2020, see Annex 2: Project and Cut-off Date Announcement. However, the LAR activities did not proceed due to lack of funds within MUB, caused by the worldwide pandemic COVID-19, and the provision of compensation was delayed. The long wait for payment of compensation resulted in affected households’ (AHs) complaints to ADB’s Office of the Special Project Facilitator (OSPF) and was considered an eligible complaint. Revaluation of the land and properties were conducted during May – Jun 2021, due to the price increases of construction materials caused by COVID-19. Based on the results of the surveys, valuation and detailed technical design, an assessment of the land acquisition and resettlement (LAR) impacts for Dambadarjaa Heating Plant was carried out. 10. 41 land parcels are affected, all will be acquired fully. There are total of 50 affected households (AHs), 35 reside on the affected land parcels, which includes 9 affected households who are occupants without land rights, and 15 affected households live elsewhere. There are 136 people living in these 35 AHs. Total of 449 structures are affected, of which 41 are residential houses, including 7 summerhouses. No business entities or state organizations are affected. The overall LAR impacts are shown in Table 1 below. The details of LAR impacts are provided in the sub-sections below.

Table 1: Overall LAR Impacts

Affected Persons

Total 50 Households residing on affected land parcels / people 35/136 Households not residing on affected land parcels 15 Business entity / state organization 0

Affected land parcel

Total 41 Full 41 Partial 0

Affected Structures

Total 449 of which fully affected residential houses 41

3

3

A. Affected Persons

11. Of the total of 50 AHs, 35 live on the affected land parcel and 15 live elsewhere in Ulaanbaatar. There are 136 people in the 35 AHs, 73 (54%) are male, and 63 (46%) are female. There are 14 potentially vulnerable households with total of 51 members. Table 2 below provides the details of the affected people, members of the 35 AHs who live on the affected land parcels, and this excludes the 15 households who do not live on their affected land parcels. Even though the 15 households do not live on their affected land parcels, the number of AHs is still 50, because their land and properties are all affected fully. Annex 3: Affected Persons provides the list of the 50 AHs, and information on their addresses, land tenure status and whether or not reside on the affected land parcels.

Table 2: Affected Persons

# Categories of APs Quantity Percentage

1 Total APs of which 50 100% Households 50 100% Business entities or state organizations 0 0%

2 Total affected household members 136 100% Male 73 54% Female 63 46%

3 Mean age 27.7 Median age 28

4

Age category 136 100% 0-15 47 35% 16-59 80 59% 60+ 9 7%

5

Ethnicity: 136 100% Khalkh 134 98.5% Kazakh 1 0.7% Zakhchin 1 0.7%

6

No. of household members: 35 100.0% 1-3 16 45.7%

4 8 22.9% 5-6 8 22.9% 7+ 3 8.6%

7 Disabled person 1 0.7% 8 Poor household 4 11.4% 9 Unemployed (last year) 8 5.3% 10 Woman headed household 7 17.9% 11 Elderly headed household 8 20.5%

12

No. of persons over 3 years of age, education 136 100.0% Non 35 25.7% Elementary 7 5.1% Secondary 12 8.8% High school 42 30.9% Vocational 13 9.6% University 27 19.9%

13 Potentially vulnerable household, of which: 14 40.0% Woman headed household 7 20.0% Vulnerable household members 51 37.5%

14 AHs and entities with land right, of which: 41 100.0% Women 4 9.8%

15 AHs to be relocated 50 100.0% Affected people to be relocated 136 100.0%

1. Vulnerable Affected Households

12. Households that have income per capita below the minimum subsistence level2, headed by women or elderly or have a disabled member are determined and listed below in table 3. Potentially Vulnerable Affected Households.

Table 3: Potentially Vulnerable Affected Households

№ AH ID

Income per capita below

minimum subsistence

level

Woman headed

Elderly headed

Disabled member

Landowner Number of HH

members

1 DDHP37 + Yes 6 2 DDHP38 + Yes 7 3 DDHP7 + Yes 8 4 DDHP34-1 + + No 3 5 DDHP32 + + Yes 4 6 DDHP6-1 + No 4 7 DDHP7-1 + + No 1 8 DDHP16-1 + + No 2 9 DDHP18 + + Yes 1 10 DDHP21 + + Yes 1 11 DDHP34-1 + No 3 12 DDHP15-1 + + No 1 13 DDHP6-1 + No 4 14 DDHP22 + Yes 6

Total 51

2. Affected Households Without Land Rights

13. There are 9 AHs – occupants of land without land rights3. All these 9 households live on the land parcel of land tenure holders and do not have any land rights. All these AHs live on fully affected residential land parcels, they live on the land free of charge without paying any rent. Most of these AHs are close relatives of the landowners such as parents, children, siblings, and one of the AHs is a distant relative. All of the AHs have registered as a separate household at the khoroo administration.These households lived on the affected land parcels from 2 to 21 years. All AHs have incomes consisting of monthly salaries and some of the households have, in addition, income from monthly pensions and allowances. The AHs plan to either to move to another place together with the landowners, or buy a land to resettle, and two of the AHs have planned to move to countryside. All of the AHs do not own a house on the affected land, couple of these AHs has entrance structure to a ger and a barn. Table 4 below provides the list AHs without land rights and details on their relationship to the landowner, income and its sources, and where they plan to move.

2 The minimum subsistence level in Ulaanbaatar is MNT238,700 for 2021. This was determined by the resolution No.

A/22, from 18 January 2021, of the head of National Statistics Office of Mongolia. 3 Occupant of land without land rights includes two types of households, (i) AHs who live on public lands without official

permission, and (ii) AHs who live on the land plot of land tenure holders and who do not have any land rights, and includes AHs who are children, siblings, relatives, acquaintances, and lessees of the land tenure holders. To verify and determine the occupants of land without land rights that live on the land plot of land tenure holders as being separate households, the following will be used: (i) “Population & Household Registration Book” and official letter of reference by the Khoroo Administration; and (ii) Residential address on the national identification card with the affected land plot address.

5

5

Table 4: Affected Households Without Land Rights

No AH ID Relationship to landowner

How long the AH lived on the affected

land

Income source

Average monthly income,

MNT

Where they are going after land

acquisition

Do the AHs have

structures erected on

the affected land?

1 DDHP6-1 mother 12 years

1. Monthly salaries, 2. Monthly pension, 3. Monthly allowances

1 320 000 Not decided yet. No

2 DDHP7-1 mother-in-law 10 years 1. Monthly salaries, 2 Monthly pension 770 000

Planning to buy land parcel

Barn, entrance structure for ger

3 DDHP10-1 sister 3 years 1. Monthly salaries 1 000 000

Owner plans to buy land parcel and move in with her sibling.

No

4 DDHP15-1 mother 3 years 1. Monthly salaries 340 000 Planning to buy land parcel

No

5 DDHP16-1 mother-in-law 2 years

1. Monthly salaries, 2. Monthly pension, 3. Monthly allowances

970 000

Planning to buy and move into apartment or land with the son-in-law

No

6 DDHP26-1 son 11 years 1. Monthly salaries, 2. Monthly allowances

1 360 000 Planning to buy and move into apartment

No

7 DDHP29-1 aunt 13 years 1. Monthly salaries 500 000 Planning to move to Bayanmunkh soum of Khentii province

No

8 DDHP31-1 relative 11 years 1. Monthly salaries, 2. Monthly allowances

1 040 000 Planning to moved to Erdene soum of Tov province.

Entrance strucuture for ger

9 DDHP34-1 daugther 21 years 1. Monthly salaries, 2. Monthly allowances

760 000 Planning to buy land parcel

No

B. Gender Impacts

14. To ensure a clear understanding and due consideration of the specific needs and problems of female APs and to safeguard their livelihoods, a number of gender provisions will be adopted by the LAR process: (i) women will receive compensation pertaining to their economic activities in their name; (ii) female heads of households will be registered as the recipients of compensation and rehabilitation measures due to their households; (iii) land titles for replacement land will be registered in the name of women, when land lost to the project was legally owned by women; (iv) women will be included in the participation process in all consultation meetings alongside male APs; (v) due consideration is to be given to complaints and grievances lodged by affected women; and (vi) access for women to project related employment opportunities and targeted needs based special assistance will be guaranteed in case of loss of livelihood. C. Affected Land

15. There are 41 affected land parcels, all are fully affected, the total area of these land parcels is 19,040m2. Of the total 41 affected land parcels, the smallest is 186m2 and the largest is 700m2. The average land area is 464m2. 4 of the 41 are under land possession tenure and all the other 37 are under ownership tenure. All land parcels are used as residential land, however nobody resides on 13 land parcels, refer to Annex 3 under Affected Persons above for the status of residency on the affected land. Annex 4: Affected Land Parcels provides the details of the affected land.

D. Affected Structures

16. The results of the inventory and valuation of the impacted structures show that there are 26 different types of structures such as residential houses, wooden fences, latrines, garages, iron gates, concrete area, pit for waste water, gers to be moved etc. and 449 impacted objects. All the affected structures will be acquired fully. Table 5: Affected structures provides the details on the type of affected structures, the quantity of the loss, number of affected objects.

Table 5: Affected Structures

№ Type of structures Unit Quantity # of

affected objects

1 Residential

house

Type 1 m2 195 4 Type 2 m2 827 14 Type 3 m2 247 4 Type 4 m2 88 1 Type 5 m2 314 7 Type 6 m2 168 1 Type 7 /summer/ m2 340 5 Type 8 m2 80 5

2 Fence

wooden m2 3 278 39 concrete m2 142 6 block 1 m2 130 3 iron1 m2 117 4

Garden fence

iron2 /small/ m2 96 2 wooden /small/ m2 11 2

3 Gate of the fence

sliding pc 5 5 sliding pc 25 25 double set 6 6 small pc 24 24

4 Barn m2 232 33

5 Barn /tambur/ m2 164 13 m2 120 13

6 Garage m2 198 6 7 Garage concrete foundation m3 13 1 8 Concrete area m2 54 6 9 Concrete side walk m2 248 10 10 Foundation of ger m2 59 2 11 Relocation cost for ger pc 8 8 12 Moving cost pc 44 44

13 Relocation cost for container /20t/

pc 6 6

14 Relocation cost for container /40t/

pc 2 2

15 Basketball hoops pc 1 1

16 Latrine wooden pc 36 36 sewage plastic tank

pc 1 1

17 Latrine hole m3 15 3 18 Water well /Manual/ m 60 1 19 Sewage hole pc 9 9 20 Pit for liquid waste m3 39 11

21 Tree

Khailaas pc 5 3 Chatsargana pc 2 2 Nokhoi khoshuu pc 1 1 Monos pc 3 3 Goyoliin mod pc 2 1 Agch pc 1 1

7

7

№ Type of structures Unit Quantity # of

affected objects

Shar khuas pc 1 1 Currants pc 11 3 Gatsuur pc 3 3

22 Vegetable field m2 3 1 23 Relocation cost for barn pc 3 3 24 Wooden garden house m2 34 3 25 Wooden poles pc 563 39 26 Iron poles pc 125 22

Total 449 17. This LARP is formulated based on a socioeconomic survey and census of affected persons and an inventory and valuation of all affected land parcels and structures that were identified based on the detailed technical design.

III. SOCIOECONOMIC INFORMATION OF THE AFFECTED PERSONS

18. The SES of the AHs was organized during May – Jul 2020, and May 2021 to update the survey. The survey team has reached out to all AHs, and conducted the census and SES. The survey results are based on the census and SES of 35 AHs who reside on their affected land, and on the land and property inventory of the 41 affected land parcels. The information of the members of 15 AHs, who do not reside on the affected land parcels, were not collected and not included in the survey. A. Basic Demographic Information

19. Out of a total population of 136, 53.7% (73) are male and 46.3% (63) are female. In terms of age, 34.5% (47) of the population aged 0-15, 58.8% (80) of the population aged 16-59, and 6.6% (9) of the population aged 60 and over. The mean age is 28. Figure 3: Age classification provides the percentage of people in each age category. In terms of ethnicity, 95.5% (134) are Khalkh, 2.25% (1) are Kazakh, and 2.25% (1) are Zakhchin. 45.7% of households (16) has 1-3 members, 22.8% of households (8) has 4 members, 22.8% of households (8) has 5-6 members, 7.5% or 3 households has 7 or more members. 20% (7) of all households have female head. Of the total population, 49.3% (67) were never married, 41.2% (56) were married, 4.4% (6) were cohabiting, 3.7% (5) were widowed, and 1.5% (2) were divorced. There is one disabled child among the affected people. Refer to Table 2: Affected Persons under paragraph 11. The

Figure 3: Age Classification of All Household Members4

B. Education and Skills of the Affected People

20. There are 12 children aged 2-5 in kindergarten. Of these children, 6.6% or 9 children are enrolled in kindergarten. However, 2.2% or 3 children have not yet been able to attend kindergarten due to the lack of kindergarten. There are a total of 31 secondary school children aged 6-18, all are enrolled in school. 29.4% (40) of the affected people have complete secondary education, 25.7% (35) have no education, 20.6% (28) have higher and bachelor's degrees, 9.6% (13) have special and diploma degrees, 8.8% (12) have secondary education, and 5.1% (7) ) have lower education, and 0.7% (1) have a master's degree or higher, see Figure 4 below.

Figure 4: Education Level of All Household Members

21. There are a total of 89 household members aged 16 and over. Of these members, 61.1% (54) have formal or informal professional skills and 38.6% (34) do not. Of the 54 members who received formal and informal training, 37.0% (20) attended university, 31.5% (17) attended

4 Age classification as per the classification of the National Statistical Office.

2.2%

0.7%

3.7%

3.7%

5.1%

3.7%

8.1%

6.6%

13.2%

7.4%

6.6%

5.9%

9.6%

12.5%

11.0%

70+ age

65-69 age

60-64 age

55-59 age

50-54 age

45-49 age

40-44 age

35-39 age

30-34 age

25-29 age

20-24 age

15-19 age

10-14 age

5-9 age

0-4 age

0.7%

5.1%

8.8%

9.6%

20.6%

25.7%

29.4%

Master’s and above

Elementary

Primary

Vocational and diploma

Bachelor’s

No education

Secondary

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9

vocational training, and 31.5% (17) attended short-term courses. 94.3% (83) of all household members aged 16 and over had no skills other than their profession. However, 5.7% (5) have the following skills in addition to their profession: (i) welding (1), (ii) manufacturing a vacuum window (1), (iii) sales representative or seller (2), and (iv) engraving (1). C. Employment of the Affected People

22. In terms of employment, 21.3% (29) of all members work for private organizations. 20.6% (28) are secondary school pupils, 16.9% (23) are at home (mothers taking care of children), 8.8% (12) are retired, 8.1% (11) work in government, and 8.1% (11) are in kindergarten or children under the age of kindergarten, 5.9% (8) are unemployed, 5.9% (8) are students, 2.9% (4) are self-employed and employers, 0.7% work in international organizations, and 0.7% is with disabilities, see Figure 5 below on employment status.

Figure 5: Employment Status

23. Of the 23 (16.9%) of the total household members who are at home, 11 women are at home looking after their infants or children under 2 years of age, 2 are at home for health reasons, 8 are pre-kindergarten infants, and 2 are at home for no reason. 24. 5.9% (8) of all working age members are unemployed. 6 of these unemployed people are not working due to inability to find jobs, and 2 are not working due to health reasons. 5 of the unemployed did not work previously, and three were employed previously. 1 of the 3 three formerly employed was a physical education and kindergarten teacher. The other 2 worked as assistants in a private company. For the 8 unemployed, the job they want to do is to work as a service worker and as a welder, and physical works of their profession. Unemployed people were asked if they would be interested in working on the infrastructure and construction work being carried out by the GADIP, but 2 said no and 6 wanted to work.

D. Income and Expenditure of the Affected People

25. The average monthly income of 35 households affected by the Dambadarjaa sub-central heating plant is MNT 1,772,114. The median income is MNT 1,060,000. The high average household monthly income was significantly impacted by one high income household who has a business income. There is a household with a fixed income of at least MNT 340,000 and a maximum household income of MNT 3,420,000. Figure 6 below shows the monthly income as a

0.7%

0.7%

2.9%

5.9%

5.9%

8.1%

8.1%

8.8%

16.9%

20.6%

21.3%

Disabled allowance

International organization

Self-employed, employer

Unemployed

Student

Government organization

Kindergarten and age below pre-school

Retired

At home

Pupil

Private entity

percentage of total households. 5.7% (2) of all households have a regular income of up to MNT 420,000, 5.7% (2) of MNT 420,001-700,001, 20.0% (7) of MNT 700,001-900,000, 28.6% (10) of MNT 900,001-1,100,000, 8.6% ( 3) MNT 1,100,001-1,300,000, 8.6% (3) of MNT 1,300,001-1,500,000, 5.7% (2) of MNT 1,500,001-2,000,000, 8.6% (3) of MNT 2,000,001-2,500,000, 8.6% (3) of MNT 2,500,001 and more. The per capita average income is MNT 468,466. Households with a per capita income below the poverty line account for 11.4% or 4 households. Table 6 below show the per capita average income.

Figure 6: Monthly Income Interval

Table 6: Per Capita Average Income

№ Per capita income group Number of households

Percentage

1 Up to 230,000 MNT 4 11.4%

2 230,000-300,000 MNT 8 22.9%

3 300,001-500,000 MNT 15 42.9%

4 500,001-700,000 MNT 1 2.9%

5 700,001-1,000,000 MNT 4 11.4%

6 1,000,001-1,500,000 MNT 2 5.7%

7 1,500,001-2,000,000 MNT 1 2.9%

Total 35 100%

The average monthly fixed income per capita 468,466₮

26. The average monthly salary and equivalent income is MNT 1,109,412. The average monthly pension is MNT 472,222 and the monthly allowance is MNT 107,000. In terms of irregular cash income, 94.3% (33) of all households do not earn any income irregularly. 5.7% (2) of households have irregular income. 1 of these 2 households is self-employed and earns income, while the other household receives irregular salaries and bonuses. 27. The average monthly fixed expenditure of the 35 households surveyed is MNT 1,640,552 on average. Figure 6 below provides the composition of the fixed expenditure.

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Figure 7: Average Monthly Fixed Expenditure

28. Irregular annual expenditures of AHs have been estimated for the past year. There are 3 households (8.5%) that have spent on housing in the last year, spending an average of MNT 6,000,000. This is followed by an average of MNT 1,462,500 for tuition, MNT 1,162,000 for clothing and footwear, MNT 966,667 for other unplanned expenses, MNT 658,593 for fuel (firewood, coal, gas, etc.), and MNT 443,000 for medical expenses. An average of MNT 206,667 was spent on eating out and sporting events.

E. Living Conditions of the Affected People

29. 88.6% (31) of the total households fetch their drinking water from public water kiosk, sourced from underground water. 5.7% (2) get their drinking water from public portable wells and 5.7% (2) from a centralized water supply. 51.4% (18) of all households have access to drinking water at a distance of 101-200 m, 25.7% (9) at a distance of 201-300 m, 8.6% (3) at a distance of 301-400 m, and 8.6% (3) at a distance of more than 400 m, 5.7% (2) have access to drinking water from a distance of up to 100 m. Households rated the quality of their drinking water as follows. 65.7% or 23 households rated it as good, 22.9% (8) rated as very good, 5.7% (2) rated it as average, 2.9% (1) rated it as bad, and 2.9% (1) rated as “do not know”. 30. 51.0% (18) of all households are accustomed to sorting and disposing of waste. However, 41.0% (17) do not sort their waste. Households collect their waste in their backyards and deliver it when the garbage truck arrives. The respondents 69.0% (24) answered that the garbage truck comes once a month, while 31.0% (11) think that the truck comes twice a month. 31. Of the 35 households surveyed, 94.3% or 33 households use traditional wooden toilets. 5.7% or 2 households have indoor sewage. All households surveyed were connected to the central electricity supply network. 65.7% or 23 households use conventional stoves, 17.1% (6) use project stoves, 11.4% (4) use low pressure stoves, and 8.6% (3) use electric heating.

2,246

13,989

35,000

45,131

66,503

83,000

150,714

292,857

951,111

Water bill

Television and cable /DDISH etc./

Entertainment, cultural and arts event

Electricity and waste costs

Household goods /soap, detergent,shampoo, toilet paper, etc./

Communication /cell phone unit,landline telephone, internet/

Transportation

Food products /meat, flour, rice, sugar,vegetables, tea, salt, etc./

Loan payment /loan, interest rate/

32. If natural disasters such as floods, fires, and storms occur, 88.6% (31) of all households expect to turn to the Emergency Management Agency, 5.7% (2) will turn to khoroo governors and kheseg leaders, 5.7% (2) will to turn to family and relatives, 5.7% (2) do not know who to turn to, 2.9% (1) will turn to an ambulance, 2.9% (1) replied that he would contact the police. F. Durable Assets of Affected People

33. The survey included questions on the durable assets of the affected households. 57.1% (20) of households with a car own one car each. However, 2.9% or 1 household has a truck. There are 5.7% (2) households with 8 or more cars, and each of these 2 households has 1 car. In terms of household items, 90 percent or more of households have refrigerators, washing machines, televisions, rice cookers, and ovens. Table 7: Durable assets information provides the details.

Table 7: Durable Assets Information

Whether it is Percentage Number

Motorcycle Yes

No 100.0% 35

Car Yes 57.1% 20 No 42.9% 15

Truck Yes 2.9% 1

No 97.1% 34

A car with 8 or more seats Yes 5.7% 2

No 94.3% 33 Tractor Yes

No 100.% 35 Refrigerator Yes 91.1% 34

No 2.9% 1

Washing machine Yes 88.6% 34 No 11.4% 4

Television Yes 100.0% 35

No

Oven Yes 28.6% 10 No 71.4% 25

Rice cooker Yes 85.7% 30

No 14.3% 5

Vacuum cleaner Yes 45.7% 16

No 54.3% 19

IV. OBJECTIVES, LEGAL AND POLICY FRAMEWORK

34. The objectives, legal and policy framework have been set out in accordance with the agreed Resettlement Framework (RF) to ensure that all affected entities receive appropriate assistance, compensation and access to project planning in a timely manner to enable them to maintain a level of well-being, which is at least equivalent to or better than what it would have been without the Dambadarjaa heating plant subproject. To achieve this, the affected persons must be fully informed, closely consulted, compensated for their losses, assisted to gain possession or ownership of replacement land and property, in order to re-establish their living conditions. All affected entities should be provided opportunities to participate in any decision-making pertinent to

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involuntary resettlement (IR). All provisions adopted here and as per agreed updated RF are based on the applicable Mongolian Laws and the 2009 ADB Safeguard Policy Statement (SPS).5

V. ELIGIBILITY AND ENTITLEMENTS

35. Based on the potential impacts and risks identified, the eligibility and entitlements are summarized in the Table 8: Eligibility and Entitlements. The eligibility and entitlements were presented, explained to and discussed with the AHs during public consultation meetings.

Table 8: Eligibility and Entitlements

Type of Impacts/ Risks

Specification Eligibility Compensation entitlements

Land (residential/ commercial/ public/ community)

Full loss of plot (>50%) Households with land losses lesser than 50% will be eligible for the entitlements for full loss of plot in the following cases: (i) the remaining land has irregular shape, not feasible to build house or other structures

(ii) the condition of the remaining land is not feasible to continue normal residence and/or business activity to generate income (iii) Distance between the affected person’s house and the pit latrine at the remaining land is lesser than the acceptable standard distance which may negatively affect the health of the affected persons

Landowner and possessor

The AH may choose between the following options: Land for land compensation through provision of replacement plot7F7F7F7F

6 at the resettlement site8F8F8F8F

7. OR Cash compensation at negotiated price based on land market value determined through certified professional valuers or the government determined base value of land, whichever is higher. All taxes, registration, transaction and transfer costs included in the negotiation agreement. All government charged transaction costs related to acquisition of new housing / land provided as lump sum and included in the negotiation agreement. Priority to enrol in livelihood restoration measures including skill development, support for business and employment opportunities and equipment provision.

Occupant of land without land rights9F9F9F9F

8

The AH may choose between the following options: (i) Rental apartment housing at subsidized Governmental rates; OR (ii) Rent-to-own apartment housing at subsidized Governmental rates All taxes, registration, transaction and transfer costs included in the negotiation agreement. AHs who do not want to participate in (i) and (ii) above and chose to relocate on their own, based on

5 https://www.adb.org/sites/default/files/project-documents/45007/45007-009-rf-en.pdf 6 A resettlement site is being developed by MUB under Tranche 2. It will have access to basic urban infrastructure

(electricity, water, road and public transport) apart from access to kindergarten and school facilities. 7 Affected persons with land ownership rights will be entitled for replacement plots with ownership rights, while the

affected persons with land possession rights will be entitled for replacement plots with possession rights. 8 Occupant of land without land rights includes two types of households, (i) AHs who live on public lands without official

permission, and (ii) AHs who live on the land plot of land tenure holders and who do not have any land rights, and includes AHs who are children, siblings, relatives, acquaintances and lessees of the land tenure holders. To verify and determine the occupants of land without land rights that live on the land plot of land tenure holders as being separate households, the following will be used: (i) “Population & Household Registration Book” and official letter of reference by the Khoroo Administration; and (ii) Residential address on the national identification card with the affected land plot address.

Type of Impacts/ Risks

Specification Eligibility Compensation entitlements

informed decision, will still be entitled to receive relocation and transitional period assistance. Priority to enrol in livelihood restoration measures including skill development, support for business and employment opportunities and equipment provision.

Land user Advance notice of at least 6 months to initiate termination procedures as agreed in the land use certificate with MUB All taxes, transaction and transfer costs associated with termination of the land use license to be paid to the land user.

Lessee The residential AH may choose between the following options: (i) Rental apartment housing at subsidized Governmental rates; OR (ii) Rent-to-own apartment housing at subsidized Governmental rates. Relocation and transitional assistance for a period of 3 months for lessees not opting for (i) or (ii) above. Business and land lessees will be eligible to assistance in identification of alternate location, on a lease basis. All taxes, registration, transaction and transfer costs included in the negotiation agreement. Liaison support with landowner for any eligible refund of rental/lease advances paid.

Partial loss of plot (<50%) In some cases, even if the loss is less than 50%, it may be full loss as the remaining land cannot be used for original purpose. In such cases, if the AH decides, he/she can request that the land is fully acquired and would be eligible to the entitlement provisions applicable to full loss of plot.

Landowner, possessor

Cash compensation at negotiated price based on land market value determined through certified professional valuations or the government determined base value of land, whichever is higher. All taxes, registration and transfer costs included in the negotiation agreement.

Occupant of land without land rights

In case the AH cannot continue occupying the remaining land, the AH will be entitled to the provisions applicable to occupant of land without land rights experiencing full loss (>50%)

Land user Continuation of use right on remaining land If continuation of use rights on the remaining land is not viable or possible, advance notice of at least 6 months to initiate termination procedures as agreed in the land use certificate with MUB All taxes, transaction and transfer costs associated with termination or continuation (in case of partial loss) of the land use license to be paid to the land user.

Lessee Liaison support for continuation of rental / leasing arrangements within the plot. Liaison support with landowner for any eligible refund of rental/lease advances paid, caused due to the partial loss of the rented/leased land.

Structures (residential/ commercial/public/ community)

Full loss of structure and relocation

Landowner, possessor, user, occupant of land without land rights

Cash compensation at full replacement cost for impacted assets and structures determined through professional valuation, without deduction for salvaged materials or the asset/structure depreciation.

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15

Type of Impacts/ Risks

Specification Eligibility Compensation entitlements

Right to salvage materials from the compensated affected structures.

Partial loss of structure Owner, possessor, user, occupant of land without land rights

Cash compensation at full replacement costs for impacted assets and structures determined through professional valuation, without deduction for salvaged materials or the asset/structure depreciation. Right to salvage materials from the compensated affected structures

Moving or relocation of ger Landowner, possessor, user, occupant of land without land rights, lessee

Cash compensation for cost of taking down and rebuilding of ger and for transportation to the new location or within the plot, as applicable;

Relocation of residential households

Relocation of residences to a different location or within the same plot

Landowner, possessor, user, occupant of land without land rights

Relocation and transitional period assistance for a period of 6 months for households requiring to move to a different location and for a period of 3 months for households requiring to move within the plot partially affected

Temporary disturbance

Occupation of lands (outside RoW of subprojects) for temporary period during construction, impacts on structures.

Landowner, possessor, user, occupant of land without land rights

Cash compensation negotiated with AP for: (i) the fence/structures affected due to temporary occupation; and (ii) rental fee for land for the period of temporary occupation. Enable continued access to land, residences and businesses in the remaining plot; Restoration of land to original status prior to handing over the lands to the landowner.

Businesses10F10F10F10F

9

Any business loss due to land acquisition or construction activities by Project

All businesses temporarily affected11F11F11F11F

10

Cash compensation towards the disruption in businesses, equivalent to the loss of business incomes for a period of 3 months, calculated based on tax receipts/other valid documents. If such documents are not available, the business loss shall be assessed based on the current average net income of typical/similar businesses in project areas determined by certified professional valuers. If the above will be not be possible, the AH shall be compensated based on minimum wages for the period of interruption of business.

All businesses requiring relocation to a different location

Cash compensation towards the relocation and transitional assistance for business incomes, equivalent to the loss of business incomes for a period of 6 months, calculated based on tax receipts/other valid documents, or, if such documents are not available, based on the current average net income of typical/similar businesses in the project areas determined by certified professional valuers. If the above will be not be possible, the AH shall be compensated based on minimum wages for the period of interruption of business.

9 Businesses will include any business entities (registered or otherwise), formal or informal, operating at household

level, activity that is carried out full time or part time and include any household activity that contributes to the income of the affected household.

10 Temporarily affected businesses refer to those businesses that would be affected by involuntary resettlement impacts, which would result in either partial or full impacts on businesses and incomes during the period of construction.

Type of Impacts/ Risks

Specification Eligibility Compensation entitlements

Livelihood restoration measures including skill development, support for business and employment opportunities and equipment provision, based on the skills assessment and an assessment of needs of the individual households. Facilitation by MUB to obtain all licenses required for reestablishment of the businesses.

Employment Employment loss due to land acquisition or construction activities

All affected employees of affected businesses

Compensation for loss of employment for 3 months wages for workers/employees that have been engaged for at least 1 year; otherwise entitlement is 1-month wage. Other labor benefits and retrenchment allowances according to the national labor law. Liaison support with the business owner towards continued employment Skill development support for business and employment opportunities. Preferential employment in project-related workforce, if available and desired by affected employees.

Any impacts or risks that may result to further hardship on Vulnerable HHs

Any impacts or risks that may require additional measures or support or assistance given their vulnerability to address any impacts or risks caused by the project or improve their socio-economic conditions

Vulnerable APs

(i) Livelihood restoration measures including skill development, support for business and employment opportunities; and equipment provision towards improvement of incomes or (ii) Cash assistance up to a maximum of six months at guaranteed lowest living level for vulnerable APs who are elderly and disabled who are not able to avail (i) above.

(a) Preferential access to employment opportunities for affected vulnerable APs in the working age group, with requirement of guaranteed employment to at least one member of the affected household.

(b) Facilitate enrolment of elderly and disabled APs in the state support programs/schemes, if not enrolled already.

(c) Facilitate access to assistance that they are entitled to according to the Social Welfare Law.

(d) Assistance in form of liaison support with authorities in reconstitution of business or employment.

Impact on Schooling on young school children

Access to kindergarten and school facilities for affected kindergarten/school children

All displaced AHs with children requiring transferring from their kindergarten/ school.

Coordinate with concerned schools or “Ministry of Education” to ensure that school children are accepted and enrolled in school/kindergarten at the new relocated location.

Unidentified Losses Unanticipated impacts All APs To be identified during project implementation. Measures will be formulated as appropriate according to ADB policy and reported to ADB prior to implementation.

ADB = Asian Development Bank, AH = affected household, AP = affected person, HH = household, MUB = Municipality of Ulaanbaatar, RoW = right-of-way.

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VI. INSTITUTIONAL ARRANGEMENTS AND IMPLEMENTATION

36. The Mayor of MUB has the overall responsibility for policy and coordination of the program implementation as the chairman of the GADIP Steering Committee (SC). The First Vice Mayor for the development policy of MUB is the Director of GADIP, and has the responsibility for program implementation, support and monitor the PMO activities. A program management office (PMO) was established in July 2014 by the order of MUB Mayor. The MUB, with support from the PMO and Land Management Agency (LMA) will ensure compliance with assurances, including safeguards and preparation, updating and implementation of LARPs and preparation of DDRs. The PMO is supported by consultant teams, including specialists in land acquisition and resettlement, to ensure the effective implementation of project related land acquisition and resettlement activities. The roles and responsibilities of key stakeholders involved in the land acquisition and resettlement process is presented in Figure 8 below.

Figure 8: Key Stakeholders in the Land Acquisition Resettlement Process, Their Roles and Responsibilities

Responsibilities and involvement of stakeholders

PMO LMA Governor’s office/Municipality

Governor/Mayor

Prepare land acquisition and resettlement plan (LARP) and to get approval from MUB and ADB.

Prepare the draft Governor’s decree according to the negotiations Review and comments on

draft Governors decree /by 4 managers and 5 divisions*/

Issuance of Governor’s decree on allocation of compensation

Review and comments on draft Governors decree /by 4 managers **/

Negotiations with AHs in accordance with LARP and compilation of documents

Negotiations with AHs in accordance with LARP and compilation of documents

Conclusion of contract with AHs according to Governor’s decree and collection of supplementary documents as appendixes of the contract

Conclusion of contract with AHs according to Governor’s decree and collection of supplementary documents as appendixes of the contract

Confirmation of contract /Approved by PC and Signed by 2 officers***/

Confirmation of contract /Approved by Head and Signed by 1 manager and 1 officer****/

Prepare the payment order according to confirmed contract made with AHs and submit to Treasury Division of MUB and transfer of compensation to AHs account

Review the payment order and supplementary documents.

Internal audit and reporting to ADB Acquisition of land from those who received compensation

* Municipality of UB city 1. Governor of the capital city and Mayor of UB city 2. First deputy of the governor in charge of development policies 3. Mayor’s Senior Adviser 4. Head of Governor’s office 5. Division of public administration 6. Division of development policy and planning 7. Division of finance and treasury 8. Legal Division 9. Division of project management regulation

** Project Management Office /GADIP/ 1. Project Coordinator/Deputy coordinator 2. Lawyer 3. Financial officer 4. Land acquisition and resettlement officer

*** Project Management Office /GADIP/ 1. Land acquisition and resettlement officer 2. Financial officer

**** Land Management Agency /LMA/ 1. Head of Land acquisition division 2. Land acquisition and resettlement officer

37. Compared to Institutional arrangements and implementation set in the RF, this LARP will be implemented as per responsibilities set in Figure 8 above. In the RF the responsibilities (i) to prepare the draft Governor’s decree according to the negotiations, (ii) to review and comments on draft Governors decree; (iii) to prepare the payment order according to confirmed contract made with APs and submit to Treasury Division of MUB and transfer of compensation to AHs account were under the LMA, however now these responsibilities are under PMO. Also, the responsibilities

of (i) conclusion of contract with AHs according to Governor’s decree and collection of supplementary documents as appendixes of the contract, and (ii) Confirmation of contract were under the responsibility of LMA, but now these are shared responsibilities of LMA and PMO. The responsibilities of Governor’s Office/Municipality (i) monitoring on whether contract components are complete, request of funding from Ministry of Finance and transfer of the funding to LMA account is changed to “review the payment order and supplementary documents”, as the contract components are now double checked at PMO and LMA, and the funding request is not necessary as LAR funds for this LARP will be transferred at once from Ministry of Finance to GADIP account through MUB treasury. 38. The changes in the responsibilities of the key stakeholders particular to the Tranche 2 subprojects, including Dambadarjaa Heating Plant, were necessary, because the LAR funds are being provided from ADB loan proceeds, as per MUB request, due to MUB’s budget deficit caused by COVID-19. Thus the responsibilities of the key stakeholders were reviewed and changed.

39. For the Tranche 2 related LAR activities, a resettlement specialist and two land acquisition and resettlement assistants have been hired within the PMO. The PMO resettlement staff will work closely with the land managers of the LMA in the planning, implementation of this LARP. The PMO resettlement staff, with support from consultant teams’ LAR specialists will (i) ensure that resettlement safeguard requirements are met in the formulation and implementation of the LARP, and (ii) ensure LAR safeguard compliance and submission of a satisfactory LARP to MUB and ADB for review and concurrence prior to any resettlement implementation and the commencement of civil works. 40. In accordance with the agreed RF, a Land Acquisition and Resettlement Working Group (LAR WG) for the Tranche 2 and Tranche 3 has been established by the Mayor’s resolution A/192 in February 2020. The LAR WG is responsible for the overall management and supervision of the LAR activities for all the subprojects, and for timely decisions for LAR issues. The First Vice Mayor of MUB in charge of development policy is the chairman. The secretary is the Coordinator of GADIP’s PMO. The members are comprised of relevant district governors, officials of LMA, municipal water supply, road, state registration departments, Office of the Mayor, Capital city – Ulaanbaatar Housing Corporation, Capital city – Ulaanbaatar Property Use and Management Department, and representatives of APs. The LAR WG will have quarterly meetings to discuss the progress of LAR activities and any pending issues, and provide support to the LMA and PMO. Where necessary, LAR WG will have more meetings by the request of LMA and PMO on urgent issues that need immediate decisions and actions. The implementation of the LARP will be the responsibility of the LMA, under the guidance of LAR WG and with close coordination and support of the PMO.

VII. CONSULTATION, PARTICIPATION AND DISCLOSURE 41. Public and individual consultations with AHs in Dambadarjaa subcenter for the heating plant were organized throughout Jan 2020 – Jun 2021. Initially, the PMO reached out to the residents of 19th khoroo of Chingeltei district to determine potential areas for the location of the heating plant. For this, a willingness survey was conducted from 20 to 27 Jan 2020. Table 9 willingness survey provides the results of the survey, for each of the three locations. After the surveys, the 3rd location was chosen as potential area, where the most number of landowners agreed to provide their land, based on negotiations, for the heating plant, see Annex 5: Willingness survey map for locations for which the survey was carried out. Based on the results of the willingness survey, PMO, in consultation with the design engineers, determined the 3rd location as suitable, as in this area all landowners expressed willingness to provide their land and as this area was suitable from the technical design perspective.

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Table 9: Willingness Survey Results

Willingness survey Location 1 Location 2 Location 3

Total land parcels identified for the survey 41 44 38

Total land parcels actually surveyed 39 41 37

Willing to provide the land for Heating Plant

Yes 34 32 37 No 2 5

Don't know 3 4 42. After the willingness survey, the LAR activities could not be carried out as nationwide lockdown was imposed since end of Jan 2020 and any public activities restricted until Apr 2020. Starting from Apr 2020, the LAR activities resumed as individual meetings were allowed by the MUB Emergency Commission, but public meetings involving many people were still not allowed. Thus individual meetings and consultations with the AHs started. The PMO staff reached out, i.e. visited each of the AHs, to the AHs and obtained their request related to the LAR, see Annex 6: Landowners request, total of 37 AHs provided their requests related to LAR, 32 of them in Apr 2020 and 5 in Jun 2021. The requests confirmed the willingness of the landowners to provide their land for the project, requested more detailed information on the LAR, valuation, requested to agree on land price of MNT80,000 per m2 similar to Selbe subcenter or higher, requested to compensate for all structures on the affected land including sheds, wooden toilets, wastewater pit, trees etc., and couple of AHs expressed to wait and see how much will be the total compensation amount and if agreeable then will be willing to provide their land. All the requests were collected and answers were provided during the public consultation meeting held on 4 Jul 2020. 43. As the COVID-19 impacts were still in place and as it looked to stay for uncertain time in the future, PMO and AHs discussed and agreed to create a Facebook group for timely and direct communications and consultations, as at least one member of the AHs used Facebook. Damba ded tuv 2 (Дамба дэд төв 2) Facebook group was created in Apr 2020, see Figure 9: Facebook Group below. This Facebook group includes the AHs from the Dambadarjaa Heating Plant, and some of the AHs from the road project in Dambadarjaa subcenter. PMO has been communicating with the AHs using this Facebook group to provide information on GADIP and updates on LAR activities, and it was used as a platform for the AHs to put their questions and clarifications.

Figure 9: Facebook Group

44. Public meetings were still not allowed by the MUB Emergency Commission in Apr 2020. However, LAR activities continued with individual meetings and consultations. During Apr – Jun 2020, the SES and valuation of affected land and structures were carried out. Then, after completion of the valuation, public consultation meeting was organized on 4 Jul 2020 at the Citizens hall of 14th khoroo of Sukhbaatar district. Total of representatives of 29 AHs or 16 female and 13 male participants attended the meeting, see Annex 7: Participants of Public Consultation Meeting, which provides the list and photo of participants. At the meeting information on (i) GADIP and its progress and the planned roads, infrastructures and social facilities; (ii) detailed information on ADB’s LAR safeguard policy and principles, RF, eligibility and entitlements, compensation valuation (full replacement value) and GRM and Mongolian legislation, (iii) detailed information on the LAR implementation procedures, and (iv) Skills development project were provided. 45. The main issues and concerns that were raised by the APs during the public consultation meetings are as follows:

(i) In general, the participants are supportive of the GADIP. (ii) The participants were interested about the timeline of the LAR activities, how long

does it take to negotiate, the issuance of Governor’s order, in case of agreement, when the compensation payment will be made, when the AHs has to move out of the land etc.

(iii) The participants clarified what are the steps/procedures for the LAR, the compensation and valuation. Especially, the participants were interested in how the valuation is carried out and what will be the value of their compensation, and if all man-made structures and trees etc. will be compensated.

(iv) The participants clarified if compensation will be provided on land without land rights and for structures built on the land without land rights.

(v) The participants clarified what happens if the one or few of the AHs refuse to provide their land.

(vi) All the participants wanted to know how much is the compensation in their particular cases.

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46. In response to the issues and concerns raised by the APs, the resettlement specialists from the GADIP consulting team and PMO, have explained in detail that LAR will be implemented in accordance with the relevant legislation of Mongolia and ADB SPS and procedures. Also, the procedures and timelines for LAR implementation were explained in detail. The main concern expressed by the APs during the individual as well as public consultations were the compensation valuation for land and structures. It was clarified that the compensation valuation will be based on full replacement value and emphasized that one of ADB’s main principles is negotiated and mutually agreed LAR and that the existing LAR practice and legislation of Mongolia is based on the negotiated agreement, therefore APs will be able to negotiate and agree on the issues related to LAR with MUB. Also, it was informed that each AP will be provided with the details of their compensation valuation and that they will be given sufficient time to consider the proposed compensation and discuss among themselves as well. 47. After the public consultation meeting held on 4 Jul 2020, the budget for LAR compensation for Dambadarjaa Heating Plant was not allocated to PMO by MUB, due to MUB budget deficit caused by COVID-19. PMO organized number of meetings with MUB officials and sent official requests, including the First Deputy Mayor of MUB and Project Director. However, the COVID-10 impacts were severe and no budget could not be allocated to GADIP for LAR compensation for 2020 and 2021, as revealed discussions with MUB. This unexpected situation and delay of LAR activities was explained to and notified the AHs by PMO with official letters and through individual meetings in Jul and Aug 2020, see Annex 8: Official Letters to Affected Households. 48. PMO and MUB informed of this situation ADB, and MUB and ADB agreed to provide the LAR compensation for the Tranche 2 subprojects from ADB loan. This was an extraordinary decision by ADB to support MUB to overcome the difficulties caused by COVID-19 and implement the LAR activities on timely manner, so the constructions works are carried out within the Tranche 2 timeframe. Based on this decision, PMO was able to re-start the LAR activities starting from May 2021, after another strict lockdown due to COVID-19, which was effective from Feb – Apr 2021. The LAR activities started with revaluation of the affected structures as the construction materials costs has increased due to COVID-19, and based on the revaluation the individual meetings and negotiation took place in Jun 2021. The negotiations with the AHs on the compensation have been completed by 30 Jun 2021. More consultations on livelihood support activities are planned to continue in Jul 2021. During the implementation of the resettlement plan, a series of public participation and consultation activities will be carried out to ensure that the information on land acquisition and resettlement is fully disclosed and the grievances and concerns of AHs are fully reflected. While the Facebook group will continue to play a very critical too in communicating with the affected persons on the implementation of resettlement provisions, the PMO is very keen that face-to-case consultations be initiated once the current COVID-19 situation improves. In the event of any continued restrictions due to COVID-19 outbreak or other unforeseeable phenomena, virtual meetings (videoconference, telephone calls,) will be carried out. The PMO and concerned agencies will strictly adhere to social distancing, wear protective masks/equipment during in-person meetings in line with government protocols and guidelines.

VIII. GRIEVANCE REDRESS MECHANISM

49. The MUB has established a Grievance Redress Mechanism (GRM) for GADIP to support the affected persons on problems arising from land acquisition and resettlement and associated impacts and provide means by which the various stakeholders may be consulted and negotiated agreement reached, paying particular attention to the impacts on vulnerable groups. The GRM for Dambadarjaa Heating Plant is part of the GADIP GRM and it functions following the principles and procedures set in the RF, refer to section VII. Grievance Redress Mechanism of RF. 50. Due to the deficit of MUB budget for LAR compensation and consequent delays of LAR activities, caused by the COVID-19 impacts, on 28 Dec 2020, four AHs, supported by two nongovernment organizations (NGOs) lodged a complaint with the Office of the Special Project Facilitator (OSPF). The complaint raised issues on (i) delayed payment of compensation to nontitle

holders – occupant of land without land rights, (ii) land and property valuation, (iii) land acquisition and compensation, (iv) lack of reliable and meaningful consultation, and (v) ineffective project grievance mechanism. Through meetings and discussions with OSPF’s local facilitator, it became clear that the complainants requested OSPF to assist in resolving the following negative impacts:

“The same house sections of some complainants have been valued differently and did not follow the memorandum of understanding (MOU) previously facilitated by OSPF and signed by the MUB, the PMO, NGOs, and the complainants.

Compensation payments have been delayed and peoples’ lives were interrupted from Dec 2019 until Sep 2020 even after packing all belongings and waiting to move.

Claims of nontitle holders have not been resolved as agreed previously in the MOU. ADB’s Safeguard Policy Statement was violated when MUB and PMO only offered

cash compensation without any other forms of support or assistance. The land acquisition process was carried out in a haphazard, unplanned, and

nontransparent manner. “Absence due to COVID-19 has been used to cut resettlement compensation etc.”

(excerpt from the complaint form).

51. Upon making the complaint eligible, OSPF local facilitator worked with the parties between Jan-Jun 2021 to resolve the complaints issued through dialogue. A project working group, headed by the deputy coordinator of the PMO, was established on 26 Jan 2021. Series of meetings have been held with the parties including MUB, PMO, NGOs, ADB project team and complainants. The following key actions have been taken to address the complaints issues:

(i) Study on the market rate of the construction materials have been carried out by the appraiser in Apr - May 2021;

(ii) Order #93 on approving the 2020 price index for the construction facilities have been issued by the Minister of Construction and Urban Development on 16 Aprl 2021; which enabled the increase of affected structures valuation carried out in 2019, which resulted the compensation increase at 1.17 price index.

(iii) Official reference letters have been taken from the Khoroo administrations regarding the dispute on separate households.

52. Based on above-mentioned documents, case specific negotiations have been facilitated by OSPF; and the last agreement has been signed on 7 June 2021. The number of negotiation meetings with one complainant ranged from 3-5. The parties agreed to pay the compensation by 10 July 2021 and the OSPF is monitoring the implementation. As a result of this problem-solving process, not only 4 complainants’ but also all 188 households’ (about 220 households including non-title holders) compensation shall be increased at 1.08 to 1.17 price index, depending on type of materials, which will result increased compensation package to all AHs of Dambadarjaa subcenter.

IX. COMPENSATION STANDARDS AND LIVELIHOOD SUPPORT ASSISTANCE

53. This section presents the compensation standards for each type of loss as well as transaction and relocation costs. It also presents the rehabilitation strategy regarding households that may be vulnerable. 54. The compensation rates used for land and structures are based on the valuation of the certified property appraiser in accordance with Mongolian Valuation Standards and International Valuation Standards. Appraisal activities were carried out in Jun 2020 and Jun 2021. The compensation appraisal was first carried out in May-Jun 2020, but re-appraisal was carried out in May-Jun 2021, due to increase in the price of construction materials caused by the impacts of COVID-19. Compared to the appraisal carried out in May-Jun 2020, the compensation appraisal of the structures increased at 1.17 price index. This was presented and explained to each of the AHs and AHs accepted the increase in the compensation. Annex 9: Compensation Negotiation Document provides an example of compensation valuation from Jun 2020 and increased

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compensation valuation from Jun 2021. The compensation package for all the AHs, as set in the subsections A – D are calculated and budgeted for each AHs, see Annex 10: Compensation calculations of Affected Households. These calculations provide the price index increase for each type of structures. A. Compensation Standard for Land

55. The market price of land in the Dambadarjaa Heating Plant area is approximately MNT40,000, which is estimated by certified property appraiser. During the negotiations with the landowners expressed willingness to provide their land for MNT80,000 or higher per m2, similar to the compensation prices provided to the AHs in Dambadarjaa subcenter’s Kindergarten and Selbe subcenter area, see Annex 6: Landowners Request for the request of landowners to set the compensation value for land at MNT80,000 per m2. During the negotiations with the AHs, in Jun 2020 and 2021, LMA and PMO agreed with the AHs-landowners that the compensation value for land is MNT80,000 per m2. This agreement is based on the Governor’s Order for Acquisition of Citizens Land with Compensation, see Annex 11 which ordered LMA and PMO to organize the LAR as per the ADB SPS through negotiated agreement. B. Compensation Standard for Structures

56. For each type of affected structures, full replacement costs were estimated by the certified property appraiser. The full replacement cost for the structures include the current market rates for purchasing new materials, costs for transportation, machinery and labor, and all other costs that will occur to replace the lost structure. The detailed account of compensation rate, re-appraised to consider the price increase due to COVID-19 impacts (see paragraph 54 above), for each type of affected structures is provided in Table 10 Compensation rates for structures.

Table 10: Compensation Rates for Structures

№ Type of structures Unit Unit Price MNT

1 Residential house

Type 1 m2 606 960 Type 2 m2 557 280 Type 3 m2 531 360 Type 4 m2 522 109 Type 5 m2 466 560 Type 6 m2 413 626 Type 7 /summer/ m2 298 350 Type 8 m2 575 730

2 Fence

wooden m2 29 156 concrete m2 53 235 block 1 m2 53 235 iron1 m2 25 000

Garden fence iron2 /small/ m2 24 664 wooden /small/ m2 7 956

3 Gate of the fence

sliding pc 976 996 sliding pc 872 236 double set 693 840 small pc 151 200

4 Barn m2 139 230

5 Barn /tambur/ m2 298 350 m2 139 230

6 Garage m2 298 350 7 Garage concrete foundation m3 269 875 8 Concrete area m2 37 791 9 Concrete side walk m2 37 791 10 Foundation of ger m2 37 791 11 Relocation cost for ger pc 250 000 12 Moving cost pc 250 000

№ Type of structures Unit Unit Price MNT

13 Relocation cost for container /20t/ pc 500 000 14 Relocation cost for container /40t/ pc 600 000 15 Basketball hoops pc 680 000

16 Latrine wooden pc 850 503 sewage plastic tank pc 1 400 000

17 Latrine hole m3 269 875 18 Water well /Manual/ m 100 000 19 Sewage hole pc 100 000 20 Pit for liquid waste m3 70 000

21 Tree

Khailaas pc 9 000 Chatsargana pc 6 500 Nokhoi khoshuu pc 8 000 Monos pc 25 000 Goyoliin mod pc 8 000 Agch pc 20 000 Shar khuas pc 2 800 Currants pc 5 000 Gatsuur pc 150 000

22 Vegetable field m2 16 114 23 Relocation cost for barn pc 150 000 24 Wooden garden house m2 64 465 25 Wooden poles pc 8 000 26 Iron poles pc 23 793

C. Compensation Standard for Transaction Costs

57. All transaction costs will be covered by the subproject. This means that where AHs are being supported in the formalization of their land tenure, or where they are relocating to a new plot or housing, or where there is a change in their land parcels, all the fees associated with these processes will be provided as lump sum. This includes any fees for the preparation of cadastral maps, issuance of cadastral maps, issuance of land possession certificates, issuance and registration of land title certificate or other required service fees. Also, in the case of relocation, all government charged transaction costs related to acquisition of new housing/land will be provided as lump sum and included in the negotiation agreement. The following rates for these fees apply:

(i) Cadastral surveying and mapping MNT50,000. (ii) Cadastral map issuance fee MNT2,500. (iii) Land tenure certificate by LMA - possession MNT20,000 (iv) Registration of the land titles by General Authority for State Registration (GASR) for

possession right MNT10,000. (v) For registration of the land titles by GASR for ownership right no fee, if this first-time

registration and MNT8,000 if the registration is to make changes (change of size, address, additional information etc.) to the land ownership title then MNT 8,000.

(vi) Registration of immovable property selling and buying contract by GASR MNT20,000 will be paid.

(vii) For first time registration of immovable property, except land, by GASR, 0.01% of the immoveable property, e.g. apartment housing.

58. In case of Dambadarjaa heating plant subproject, all AHs are fully affected and all AHs opted for the option for cash compensation. Therefore, the AHs are expected to either buy a land parcel, with housing, or apartment housing, or will build a new housing on a land parcel or buy a new apartment housing. The registration costs for the land parcel with housing or registration of buying an apartment housing is MNT20,000 (see “vi” in paragraph 57). In case of new land parcel purchase and building a housing or in case of purchase of new apartment housing the registration fee is 0.01% of the price of the immovable property. For instance, in case of purchase of MNT200

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million apartment housing or new housing, the cost will be MNT20,000. Also, in the case of new land parcel purchase additional cost for land tenure certificate and cadastral map issues will be MNT20,000 and MNT2,500, respectively. Thus, the highest cost for government charged transaction costs related to acquisition of new housing and/or land parcel will be MNT42,500. Thus the lump sum to be provided to the AHs is MNT42,500. This compensation will be presented to and agreed with AHs at the time of contract signing. and these costs are included in the compensation package of the AHs, see Annex 11: D. Relocation and Transitional Period Assistance

59. For all AHs an estimated moving cost of MNT250,000 will be provided. Also, for AHs that need to relocate their gers, an estimated moving cost of MNT250,000 will be provided. 60. Relocation and transitional period assistance for 6 months, amounting to 1,800,000 MNT (300,000 MNT/per month x 6 months) for all the AHs will be provided, as all AHs are fully affected and are relocating to another location. E. Livelihood Support Assistance

61. For 14 potentially vulnerable AHs, consultations are to be conducted by PMO during Jul 2021, to determine whether or not these households are vulnerable, and in case of households determined as vulnerable, discussion will be held to provide livelihood support measures, including skill development, support for business or employment opportunities and equipment provision. The budget for the livelihood support assistance is not allocated under this LARP. It will be allocated from the budget of Capacity Building for Sustainable Livelihood Support in Ger Areas project (TRTA MON 45007). Regarding the 9 AHs without land rights, 7 of them were identified as potentially vulnerable household, all of them will be entitled to livelihood support under the TRTA MON45007.

X. RELOCATION STRATEGY

62. The landowners and possessor AHs who are fully affected, are entitled to replacement plot with basic services in relocation site, as an alternative to cash compensation. The occupants of land without land rights are entitled to rental or rent-to-own housing in designated social housing. 63. All landowners and possessor AHs, 41 AHs, have chosen cash compensation, instead of replacement land parcel in Moringiin Davaa. During the negotiations, the occupants of land without land rights, 9 AHs, were informed about the possibility of relocation to social housing being built in Khanyn material area, close to the Bayankhoshuu subcenter, once it will be ready in the first-second quarter of 2022. Also, they were informed that until the social housing is ready, they can stay in temporary housing in Selbe subcenter. However, all expressed no interest in social housing and did not opt for this entitlement. The AHs – landowners are expected to vacate and move out of their land parcels within 14-21 days, after receipt of their compensation payments. As for the AHs without land rights – occupants of land without land rights, they have planned to move out at the same time with the landowners, 7 of these AHs are close relatives such as parents, children or siblings. They have planned to move into a new place, apartment housing or land parcel, together with the landowners or on their own. The 2 AHs, who are relatives, planned to move out of Ulaanbaatar to countryside in the provinces of Khentii and Tuv, for details on the relocations plans, see Table 4: Affected Households without land rights.

XI. BUDGET AND FINANCING

64. The total cost for implementation of this LARP is MNT3,431,224,736 (USD1,203,939). The PMO has received the LAR compensation budget from ADB through the Ministry of Finance and MUB. PMO is responsible for timely allocation of the compensation payment funds needed to implement LAR activities. The contingency is estimated at 10% of the LAR

compensation costs. No budget is allocated for external monitoring of LAR, as the budget for external monitoring is already allocated from other ADB sources.

Table 11: Land Acquisition and Resettlement Budget

No. Type of loss/compensation Costs/MNT

1 Land 1 523 120 000

2 Structures 1 505 832 715

3 Transitional period assistance 75 600 000

4 Relocation/moving costs 11 000 000

5 Relocation cost for gers 2 000 000

6 Transactions costs 1 742 500

Subtotal LAR compensation costs 3 119 295 215

7 Contingency, 10% of items 1-6 311 929 521

GRAND TOTAL 3 431 224 736

XII. IMPLEMENTATION SCHEDULE

65. The implementation schedule indicating the timeline for LAR activities implementation of this LARP is shown in Table 12 below.

Table 12: Implementation Schedule

XIII. MONITORING AND EVALUATION

66. Monitoring of compliance with the LARP during implementation will be carried out by the PMO, External Monitoring Agency (EMA), a local consulting firm. Monitoring will be conducted with both internal and external indicators. 67. The PMO will conduct internal monitoring of LARP implementation and submit monthly reports to the MUB. The PMO will also include the results of internal monitoring in its quarterly reports to the ADB. These reports will also focus on the progress of LARP implementation. 68. The objectives of internal monitoring will be to ensure: (i) proper execution of the responsibilities of key stakeholders; (ii) participation of affected people in internal monitoring; (iii) protection of the rights of affected entities under Mongolian laws, the ADB Safeguard Requirements, RF and the subprojects LARPs; (iv) adequate and prompt payment of compensation; and (v) timely grievance redress. All data collection and analysis will be disaggregated by gender.

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12Identification of LAR scopeField verification and modification of technical designApproval of technical design Notification of individual APs and of cut-off dateLand & property measurements and valuation surveysCensus and SES, and identification of vulnerable HHsAP consultations & negotiationsConclusion of contractual agreementsDisbursement of compensationProvision of livelihood actvities Acquisition of land and other assetsCommencement of civil worksInternal monitoringExternal monitoring and evaluation

LAR ACTIVITIES 2020 2021

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69. External monitoring will be carried out during the implementation of the resettlement plan including implementation of the livelihood support to the affected persons, and its results will be reported to the PMO 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: (i) review and verification of the internal monitoring reports of the PMO; (ii) identification and selection of impact indicators; (iii) impact assessment through quantitative and qualitative surveys; (iv) consultation with local stakeholders; (v) assessment of compliance with local laws, the ADB’s SPS on IR, RF and the LARP; (vi) recommendation of land acquisition process modification and adaptation measures; (vi) lessons learned for future resettlement policy formulation and planning; and (viii) all data collection and analysis will be disaggregated by gender. 70. The following are some of the external monitoring key indicators:

(i) Economic status of affected households, including employment, income and household assets.

(ii) Status of vulnerable persons, in terms of food security, household demographics, livelihoods and health.

(iii) Impact of land acquisition on women, children, elderly, the poor and other vulnerable groups.

(iv) Degree of support for and post land acquisition status of affected vulnerable households.

(v) Perceptions of affected entities regarding the implementation of the land acquisition process.

(vi) Participation and involvement of affected entities in LARP implementation. (vii) Effectiveness and fairness of valuation, compensation, assessment and

disbursement measures. (viii) Implementation and effectiveness of income restoration measures. (ix) Verify on a sample basis the documentation of individual agreements with the

affected households and proof of compensation payments, available with PMO on use of ADB funds for resettlement implementation.

(x) Effectiveness and fairness of GRMs. (xi) Level of satisfaction among affected entities in the post-resettlement period. (xii) Adequacy of resettlement funds and results of financial audits.

71. In the event of any restrictions due to COVID-19 outbreak or other unforeseeable phenomena which would limit the face-to-case consultations with the affected households, EMA will carry out virtual meetings (videoconference, telephone calls). The EMA, PMO and concerned agencies will strictly adhere to social distancing, wear protective masks/equipment during in-person meetings in line with government protocols and guidelines. The EMA will carry out post-implementation evaluation one year after the completion of implementation of resettlement plan on the basis of the socio-economic baseline surveys to ascertain whether the LAR activities were implemented consistent with the objectives and provisions of this LARP.

ANNEXES

Annex 1: Land Acquisition and Resettlement Map Annex 2: Project and Cut-off Date Announcement Annex 3: Affected Land Annex 4: Affected Persons Annex 5: Willingness Survey Map Annex 6: Landowners Request Annex 7: Participants of Public Consultation Meeting Annex 8: Official Letters to Affected Households Annex 9: Compensation Negotiation Document Annex 10: Compensation Calculations of Affected Households Annex 11: Governor’s Order for Acquisition of Citizens Land with Compensation

LARP – DAHP Dambadarjaa Heating Plant Annex 1 LAR Map

Annex 1: LAR Map

LARP – DAHP Dambadarjaa Heating Plant Annex 2: Project and Cut-off Date Announcement

Annex 2: Project and Cut-off Date Announcement

LARP – DAHP Dambadarjaa Heating Plant Annex 2: Project and Cut-off Date Announcement

PUBLIC NOTICE TO THE RESIDENTS OF 19th KHOROO OF CHINGELTEI DISTRICT

In order to resolve issues related to overconcentration in the center of the city, limited access and possibilities of ger area residents to socioeconomic services and healthy and safe living environment, “Ulaanbaatar Urban Services and Ger Area Development Investment Program” is being implemented step by step in accordance with the decision of the Government of Mongolia and MUB with soft loan funding provided by the Asian Development Bank and European Investment Bank. Within this program construction work for the heating station, kindergarten, vocational eduction and training center, and roads and infrastructure will be carried out in the Selbe, Bayankhoshuu, Dambadarjaa and Denjiin 1000 subcenters. The engineering, technical, social and economic solution was made to build the heatng station on the territory of 19th khoroos of Chingeltei district. Hereby, the compensation entitlement cut-off date is declared as of 03 July 2020 for the residents and organizations who were voluntarily requested to vacate their land and properties (land and immovable structures) with the compensation for the construction of the Right of Way (ROW) and thus directly affected by land acquisition and resettlement will be stopped for new settlement and construction of new structures in the ROW. By setting the cut-off date, it will be possible to correctly conduct the census of population and organizations in the ROW and accurately inventory their land and assets. This will enable to determine accurate and appropriate compensation and supports to the people and organizations, whose land will be acquired, based on the real market conditions and prices. Eligibility of persons residing and organizations running activities in the project area of the pipelines will only be granted for their affected land and structures located in the ROW of the infrastructure before the cut-off date. Any persons, organizations moving into and occupying land or constructing new or additional structures in the Right of Way of the infrastructure after the cut-off date will not be eligible for compensation and other required assistances and supports. The officials of Land Management Agency of UB city (LA) and Ulaanbaatar Urban Services and Ger Area Development Investment Program will be organizing consultation meetings with you to provide information, obtain your suggestions and redress any grievances. Please contact us related to the development works of the roads and infrastructure and land acquisition and resettlement issues at the following address:

Officer of LMA:

Soyol-Erdene, 86116868 Dorjbat 88108677 Khangard Palace, room 307 Program Management Office Sergelen (LAR specialist) Dugermolom (LAR specialist) Munkh-Orgil (Environment specialist) Davaasuren (Social safeguard and gender specialist) Ulaanbaatar Urban Services and Ger Area Development Investment Program, #415, Central Cultural Building, Sukhbaatar District, 8th khoroo, Baga toiruu 1, Amar street 2 tel. 7000 309 Officer of Community engagement consulting team: Shinetuya 99059233 (officer for Dambadarjaa subcenter) HEAD OF LAND MANAGEMENT AGENCY A.ENKHMANLAI OF ULAANBAATAR CITY

LARP – DAHP Dambadarjaa Heating Plant Annex 3: Affected Land

Annex 3: Affected Land

No AH ID Land

parcel new ID

Address /Disctrict, khoroo, street,

khashaa/

Land use type

Land tenure type

Affected land

area, m2

Type of

impact

1 DDHP1 1501311426 CHD 19, Takhilt 4-104 residential ownership 580 fully

2 DDHP2 1501302818 CHD 19, Takhilt 4-106 residential ownership 443 fully

3 DDHP3 1501302816 CHD 19, Takhilt 4-107 residential ownership 444 fully

4 DDHP4 1501302834 CHD 19, Takhilt 4-108 residential ownership 676 fully

5 DDHP5 1501311443 CHD 19, Takhilt 4-110 residential ownership 476 fully

6 DDHP6 1501311419 CHD 19, Takhilt 4-111 residential ownership 412 fully

7 DDHP7 1501311435 CHD 19, Takhilt 4-112 residential ownership 269 fully

8 DDHP8 1501311440 CHD 19, Takhilt 4-112a residential ownership 316 fully

9 DDHP9 1501302830 CHD 19, Takhilt 4-113 residential ownership 591 fully

10 DDHP10 1501302835 CHD 19, Takhilt 4-113a residential ownership 242 fully

11 DDHP11 1501302848 CHD 19, Takhilt 4-114 residential ownership 328 fully

12 DDHP12 1501311382 CHD 19, Takhilt 4-114a residential ownership 372 fully

13 DDHP13 1501310124 CHD 19, Takhilt 4-126 residential ownership 256 fully

14 DDHP14 1501311471 CHD 19, Takhilt 4-127 residential ownership 320 fully

15 DDHP15 1501313191 CHD 19, Takhilt 4-128 residential ownership 700 fully

16 DDHP16 1501310133 CHD 19, Takhilt 4-129 residential ownership 656 fully

17 DDH17 1501313987 CHD 19, Тахилт 4-17 residential possesion 682 fully

18 DDHP18 1501302892 CHD 19, Takhilt 4-130 residential ownership 316 fully

19 DDHP19 1501302877 CHD 19, Takhilt 4-131b residential ownership 334 fully

20 DDHP20 1501311450 CHD 19, Takhilt 4-131a residential ownership 186 fully

21 DDHP21 1501302862 CHD 19, Takhilt 4-132 residential ownership 406 fully

22 DDHP22 1501311433 CHD 19, Takhilt 4-133 residential ownership 232 fully

23 DDHP23 1501302887 CHD 19, Takhilt 4-134 residential ownership 233 fully

24 DDHP24 1501302913 CHD 19, Takhilt 4-135 residential ownership 577 fully

25 DDHP25 1501302866 CHD 19, Takhilt 4-136 residential ownership 357 fully

26 DDHP26 1501302890 CHD 19, Takhilt 4-137a residential ownership 700 fully

27 DDHP27 1501302886 CHD 19, Takhilt 4-137 residential ownership 608 fully

28 DDHP28 1501313766 CHD 19, Takhilt 4-138 residential ownership 368 fully

29 DDHP29 1501311420 CHD 19, Takhilt 4-139 residential ownership 547 fully

30 DDHP30 1501310111 CHD 19, Takhilt 4-140 residential ownership 392 fully

31 DDHP31 1501311400 CHD 19, Takhilt 4-141 residential ownership 700 fully

32 DDHP32 1501303198 CHD 19, Takhilt 4-142 residential ownership 699 fully

33 DDHP33 1501302928 CHD 19, Takhilt 4-143 residential ownership 420 fully

34 DDHP34 1501302930 CHD 19, Takhilt 4-144 residential ownership 700 fully

35 DDHP35 1501302861 CHD 19, Takhilt 4-146 residential ownership 357 fully

36 DDHP36 1501311464 CHD 19, Takhilt 4-19 residential ownership 452 fully

37 DDHP37 1501302926 CHD 19, Takhilt 4-20 residential ownership 410 fully

38 DDH38 1501313986 CHD, 19, Takhilt 4-18 residential possesion 695 fully

LARP – DAHP Dambadarjaa Heating Plant Annex 3: Affected Land

No AH ID Land

parcel new ID

Address /Disctrict, khoroo, street,

khashaa/

Land use type

Land tenure type

Affected land

area, m2

Type of

impact

39 DDH39 1501313908 CHD, 19, Takhilt 4-18 residential ownership 604 fully

40 DDH40 1501313946 CHD, 19, Takhilt 4-21 residential possesion 434 fully

41 DDH41 1501313945 CHD, 19, Takhilt 4-21 residential possesion 549 fully

Total 19 040

LARP – DAHP Dambadarjaa Heating Plant Annex 4: Affected Persons

Annex 4: Affected Persons

No AH ID Address /Disctrict,

khoroo, street, khashaa/ Land use

type Land tenure

type

Resides on the affected

land

1 DDHP1 CHD 19, Takhilt 4-104 residential ownership No

2 DDHP2 CHD 19, Takhilt 4-106 residential ownership No

3 DDHP3 CHD 19, Takhilt 4-107 residential ownership No

4 DDHP4 CHD 19, Takhilt 4-108 residential ownership Yes

5 DDHP5 CHD 19, Takhilt 4-110 residential ownership Yes

6 DDHP6 CHD 19, Takhilt 4-111 residential ownership Yes

7 DDHP6-1 CHD 19, Takhilt 4-111 residential tenant Yes

8 DDHP7 CHD 19, Takhilt 4-112 residential ownership Yes

9 DDHP7-1 CHD 19, Takhilt 4-112 residential tenant Yes

10 DDHP8 CHD 19, Takhilt 4-112a residential ownership Yes

11 DDHP9 CHD 19, Takhilt 4-113 residential ownership Yes

12 DDHP10 CHD 19, Takhilt 4-113a residential ownership Yes

13 DDHP10-1 CHD 19, Takhilt 4-113a residential tenant Yes

14 DDHP11 CHD 19, Takhilt 4-114 residential ownership Yes

15 DDHP12 CHD 19, Takhilt 4-114a residential ownership Yes

16 DDHP13 CHD 19, Takhilt 4-126 residential ownership No

17 DDHP14 CHD 19, Takhilt 4-127 residential ownership Yes

18 DDHP15 CHD 19, Takhilt 4-128 residential ownership Yes

19 DDHP15-1 CHD 19, Takhilt 4-128 residential tenant Yes

20 DDHP16 CHD 19, Takhilt 4-129 residential ownership Yes

21 DDHP16-1 CHD 19, Takhilt 4-129 residential tenant Yes

22 DDH17 CHD 19, Тахилт 4-17 residential possesion Yes

23 DDHP18 CHD 19, Takhilt 4-130 residential ownership Yes

24 DDHP19 CHD 19, Takhilt 4-131b residential ownership No

25 DDHP20 CHD 19, Takhilt 4-131a residential ownership Yes

26 DDHP21 CHD 19, Takhilt 4-132 residential ownership Yes

27 DDHP22 CHD 19, Takhilt 4-133 residential ownership Yes

28 DDHP23 CHD 19, Takhilt 4-134 residential ownership No

29 DDHP24 CHD 19, Takhilt 4-135 residential ownership Yes

30 DDHP25 CHD 19, Takhilt 4-136 residential ownership No

31 DDHP26 CHD 19, Takhilt 4-137a residential ownership Yes

32 DDHP26-1 CHD 19, Takhilt 4-137a residential tenant Yes

33 DDHP27 CHD 19, Takhilt 4-137 residential ownership No

34 DDHP28 CHD 19, Takhilt 4-138 residential ownership No

35 DDHP29 CHD 19, Takhilt 4-139 residential ownership No

36 DDHP29-1 CHD 19, Takhilt 4-139 residential tenant Yes

37 DDHP30 CHD 19, Takhilt 4-140 residential ownership Yes

38 DDHP31 CHD 19, Takhilt 4-141 residential ownership No

LARP – DAHP Dambadarjaa Heating Plant Annex 4: Affected Persons

No AH ID Address /Disctrict,

khoroo, street, khashaa/ Land use

type Land tenure

type

Resides on the affected

land

39 DDHP31-1 CHD 19, Takhilt 4-141 residential tenant Yes

40 DDHP32 CHD 19, Takhilt 4-142 residential ownership Yes

41 DDHP33 CHD 19, Takhilt 4-143 residential ownership No

42 DDHP34 CHD 19, Takhilt 4-144 residential ownership Yes

43 DDHP34-1 CHD 19, Takhilt 4-144 residential tenant Yes

44 DDHP35 CHD 19, Takhilt 4-146 residential ownership Yes

45 DDHP36 CHD 19, Takhilt 4-19 residential ownership No

46 DDHP37 CHD 19, Takhilt 4-20 residential ownership Yes

47 DDH38 CHD, 19, Takhilt 4-18 residential possesion Yes

48 DDH39 CHD, 19, Takhilt 4-18 residential ownership No

49 DDH40 CHD, 19, Takhilt 4-21 residential possesion No

50 DDH41 CHD, 19, Takhilt 4-21 residential possesion Yes

LARP – DAHP Dambadarjaa Heating Plant Annex 5: Willingness Survey Map

Annex 5: Willingness Survey Map

Location 1 and 2* Location 1 is the area in the right side divided by red vertical line, within the pink polygon area. Location 2 is the area in the left side divided by red vertical line, within the pink polygon area.

* Yellow colored land parcels – responded “don’t know”, red – no, pink – was not able to survey, orange – will sell land togeher

Location 3

Red colored land parcel – no survey conducted, yellow colored land parcel – don’t know.

LARP – DAHP Dambadarjaa Heating Plant Annex 6: Landowners Request

Annex 6: Landowners Request

This annex contains personal information of affected persons which constitutes information that is

subject to exceptions to disclosure set forth in ADB’s Access to Information Policy.

LARP – DAHP Dambadarjaa Heating Plant Annex 7: Participants of Public Consultation Meeting

Annex 7: Participants of Public Consultation Meeting

This annex contains personal information of affected persons which constitutes information that is subject to exceptions to disclosure set forth in ADB’s Access to Information Policy.

LARP – DAHP Dambadarjaa Heating Plant

Annex 8: Official Letters to Affected Households

Annex 8: Official Letters to Affected Households

Letter sent to AHs on 30 Jul 2020

LARP – DAHP Dambadarjaa Heating Plant

Annex 8: Official Letters to Affected Households

Letter sent to AHs on 30 Jul 2020

(English translation)

2020.07.30

#1146

To: Dambadarjaa subcenter’s residents

Subject: Provide information of the program

Under the Tranche-2 of Ulaanbaatar Urban Services and Ger Areas Development Investment Program, the planned works of Dambadarjaa subcenter has been implemented gradually.

Currently, the land acquisitions of the kindergarten and telecommunication center were completed and the negotiation meetings of the planned Heating station are being organized with the affected households.

Due to the shortage of approved MUB budget for the implementation of foreign funded projects in 2020, there is need to hold the land acquisition process until the budget amendment of 2020 or to transfer into the budget of 2021.

The Project Management Office submitted the required budget proposal to the Municipality (Capital City’s Governor’s Office) and shall inform to you as soon as the proposed budget is approved.

Project Coordinator: D.Avirmed

Annex 8 3

Letter sent to AHs on 31 Jul 2020

LARP – DAHP Dambadarjaa Heating Plant

Annex 8: Official Letters to Affected Households

Letter sent to AHs on 31 Jul 2020

(English translation)

To: Dambadarjaa subcenter’s community groups

Subject: Providing information

The construction of the infrastructure and social facilities are being done respectively in Bayankhoshuu and Selbe subcenters under the Tranche 1, Dambadarjaa and Denjiin 1000 under the Tranche 2, and Sharkhad and Tolgoit subcenters under the Tranche 3 in terms of the implementation of the Ulaanbaatar Urban Services and Ger Areas Development Investment Program funded with the loans from Asian Development Bank and European Investment Bank.

According to the program implementation planning, the total budget of 14.8 billion tugriks is required for the compensation for the assets and the lands of the affected households in terms of land acquisition and resettlement of the planned infrastructure, roads and social facilities of Dambadarjaa subcenter.

Hence, the Project Management Office submitted the additional budget proposal for the compensation of land acquisition and resettlement of 2020 to J.Batbayasgalan, the First Deputy Governor of Ulaanbaatar City in charge of development policy on 23 July 2020.

Project Coordinator: D.Avirmed

LARP – DAHP Dambadarjaa Heating Plant Annex 9: Compensation Negotiation Document

Annex 9: Compensation Negotiation Document

2nd appendix to the decree A / 11 of the

Head of the Municipal Land Management office

dated February 12, 2019

NEGOTIATION DOCUMENT OF COMPENSATION

№ …

Surname and name of holder, ID number: Fist Name, Last name, Registration numb

Address: ………………..

Parcel ID: …………………….

Name, a holder of ……m2 land, …m2 of real estate and property were affected by the work of the “Name of

subproject in the territory of the address of the subproject” included in the Date land management plan of the

capital city, approved by the resolution No. 20/19 of the Citizens Representative Khural on Date.

Compensation item

Certificate number

Affected amount /m2/

by measurement

Evaluation

Land - - -

Assets - - -

Property, others - - -

According to the evaluation of Valuation Firm name, which has a property evaluation license, it was agreed to

pay a total of Value (by word) MNT in compensation.

NEGOTIATED:

This confirms that the above prices have been finalized and there are no further complains. Minutes of the

meeting agreeing on the amount of compensation, overlapping cadastral drawings of construction works in the

land cadastre database, in case of negotiation with the authorized representative, notarized commission shall be

an integral part of this negotiation and shall be the basis of the contract on redemption of land with

compensation.

Land manager of Land acquisition division Land Owner: Name

of the Municipal Land Management office Phone number……..

Name of Land manager and signature

REVISED:

Head of Land acquisition division Head of Finance division

of the Municipal Land Management office of the Municipal Land Management office

Resettlement specialist of the GADIP _________________ DATE:

LARP – DAHP Dambadarjaa Heating Plant

Annex 9: Compensation Negotiation Document

Compensation negotiation document from Jun 2020

Annex 3 3

Compensation negotiation document from Jun 2021

Compensation is increased as results of re-appraisal

LARP – DAHP Dambadarjaa Heating Plant Annex 10: Compensation Calculations of Affected Households

Annex 10: Compensation Calculations of Affected Households

LARP – DAHP Dambadarjaa Heating Plant Annex 10: Compensation Calculations of Affected Households

LARP – DAHP Dambadarjaa Heating Plant Annex 10: Compensation Calculations of Affected Households

LARP – DAHP Dambadarjaa Heating Plant Annex 10: Compensation Calculations of Affected Households

LARP – DAHP Dambadarjaa Heating Plant Annex 10: Compensation Calculations of Affected Households

LARP – DAHP Dambadarjaa Heating Plant Annex 10: Compensation Calculations of Affected Households

LARP – DAHP Dambadarjaa Heating Plant Annex 10: Compensation Calculations of Affected Households

LARP – DAHP Dambadarjaa Heating Plant Annex 10: Compensation Calculations of Affected Households

LARP – DAHP Dambadarjaa Heating Plant Annex 10: Compensation Calculations of Affected Households

LARP – DAHP Dambadarjaa Heating Plant Annex 11: Governor’s Order for Acquisition of Citizens Land with Compensation

Annex 11: Governor’s Order for Acquisition of Citizens Land with Compensation

GOVERNOR OF THE CAPITAL CITY DECREE

25 June 2020 No. A/855 Ulaanbaatar Subject: Acquisition of citizen’s land with compensation Pursuant to the Article 29.1.2 of Law of Mongolia on Administrative and Territorial Units and Their Governance; the Framework Financing Agreement entered into between the Asian Development Bank (ADB) and the Government of Mongolia on 9 December 2013; and the ADB Safeguard Policy Statement, it is decreed that;

1. Based on the decision made on 19 May 2020 by the Working Group responsible for ensuring and managing the implementation of the land acquisition and resettlement plan, Land Management Agency (A. Enkhmanlai) of MUB carries out the acquisition of the land, under ownership and possession of citizens, business entities and organizations, affected by the developments in the Dambadarjaa, Denjiin Myanga, Sharkhad and Tolgoit subcenters and determines the value of land following paragraph 25, Appendix 2, of the ADB Safeguard Policy Statement.

2. The Project Management Office (D. Avirmed) organizes meetings with and documents proposals and requests of the citizens, business entities and organizations, and ensures a compensation valuation report is prepared and validated by a valuation company in line with the value of the land negotiated and determined; and submits the report to the Land Management Agency of MUB.

S. Amarsaikhan Governor of the Capital City cum Mayor of Ulaanbaatar (signed and sealed with stamp)