Safeguards Due Diligence Report

May 2020

Mongolia: Ulaanbaatar Urban Services and Ger

Areas Development Investment Program (Tranche 2)

—Social Housing Services, Basic Urban Utility

Service Facilities, and Shelter for Victims of Gender-

Based Violence

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

CURRENCY EQUIVALENTS (as of 10 May 2020)

Currency unit – togrog (MNT)

MNT1.00 = $0.00036 $1.00 = MNT2,789.50

ABBREVIATIONS

ADB – Asian Development Bank GRM – grievance redress mechanism LAR – land acquisition and resettlement LMA – Land Management Agency of MUB MUB – Municipality of Ulaanbaatar NOSK – Capital City Housing Corporation PMO – program management office ROW – right- of-way SPS – Safeguard Policy Statement USGADIP – Ulaanbaatar Urban Services and Ger Areas Development

Investment Program

NOTE

In this report, "$" refers to United States dollars. This safeguards due diligence report 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. 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.

Letter of Confirmation by the Municipality of Ulaanbaatar DRAFT

НИЙСЛЭЛИЙН ЗАСАГ ДАРГА

АХБ-НЫ ХОТ БАЙГУУЛАЛТЫН ТЭРГҮҮЛЭХ МЭРГЭЖИЛТЭН

АРНО ХЭКМАН ТАНАА

Нүүлгэн шилжүүлэлтийн нөхцөл байдал

Монгол Улсын нийслэл Улаанбаатар хот нь “Улаанбаатар хотын гэр хорооллыг хөгжүүлэх, хөрөнгө оруулалтыг дэмжих хөтөлбөр”-ийн хүрээнд Азийн Хөгжлийн Банк (АХБ)-наас санхүүгийн дэмжлэг авч байгаа бөгөөд энэ хөтөлбөрийн 2-р үе шатны үйл ажиллагааны дагуу “Зорилтот бүлгийн орон сууцны барилга угсралтын ажил” дэд төслийг Ханын материалд, “Шинэ суурьшлын бүсэд баригдах үндсэн дэд бүтэц, шугам сүлжээний ажил” дэд төслийг Морингийн даваанд, “Гэр бүлийн хүчирхийллийн хохирогчийг хамгаалах байр” дэд төслийг Амгаланд 2020 оноос тус тус барьж байгуулахаар төлөвлөөд байна.

Нийслэл Улаанбаатар хотын зүгээс эдгээр дэд төслийг хэрэгжүүлэхтэй холбогдон иргэд, хувийн хэвшил болон байгууллагын газар, эд хөрөнгийг чөлөөлж, нүүлгэн шилжүүлэх шаардлагагүй болохыг үүгээр баталгаажуулан мэдэгдэж байна.

Хүндэтгэсэн,

НИЙСЛЭЛИЙН ЗАСАГ ДАРГЫН ХӨГЖЛИЙН БОДЛОГЫН АСУУДАЛ ХАРИУЦСАН НЭГДҮГЭЭР ОРЛОГЧ Ж. БАТБАЯСГАЛАН

GOVERNOR OF THE CAPITAL CITY

DRAFT

TO: ARNAUD HECKMANN, PRINCIPAL URBAN DEVELOPMENT SPECIALIST, ADB

Re: Resettlement due diligence

Ulaanbaatar, the capital city of Mongolia, has obtained financial assistance from the Asian Development Bank (ADB) within the Ulaanbaatar Urban Services and Ger Areas Development Investment Program (USGADIP) and has planned to implement subprojects "Social housing services for project subcenters" in Khanyn material, “Basic urban utility service facilities in the new land areas" in Moringiin davaa for relocation site, and “Shelter for Victims of Gender-based Violence” in Amgalan in 2020 according to the activities of the USGADIP.

Hereby, the Municipality of Ulaanbaatar confirms that there will be no resettlement of individuals, private and public entities and acquisition of their land and properties in connection with the implementation of this subproject.

Sincerely yours,

J. BATBAYASGALAN FIRST VICE MAYOR FOR DEVELOPMENT POLICY

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Table of Contents

I. Introduction ........................................................................................................................................... 3

II. Project Description ............................................................................................................................... 3

III. Assessment of LAR Impacts ................................................................................................................. 4

IV. Consultation and Information Disclosure ............................................................................................ 6

V. Conclusion ............................................................................................................................................ 7

Annex 1: Documents of social housing services for project subcenters ....................................................... 8

Annex 2: Documents of Basic urban utility service facilities in the new land areas .................................... 11

Annex 3: Documents of Shelter for victims of gender-based violence ....................................................... 20

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Overview location of subprojects

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I. Introduction

1. This Resettlement Due Diligence Report is prepared for subprojects (i) "Social housing services for project subcenters" in Khanyn material, (ii) “Basic urban utility service facilities in the new land areas" in Moringiin davaa for relocation site, and (iii) "Shelter for victims of gender-based violence" in Amgalan, which will be implemented in 2020 under the tranche 2 of Ulaanbaatar Urban Services and Ger Areas Development Investment Program (USGADIP). These are subprojects that will be developed on government and public lands and do not involve land acquisition and resettlement (LAR). The consultant team for technical design has prepared the technical design of these subprojects. During Jan – Mar 2020, the resettlement consultants have reviewed the technical design and checked the subproject sites to confirm that there are no LAR impacts. In line with ADB SPS requirements for due diligence of subprojects proposed on public lands without need for additional land acquisition, this DDR includes (i) an onsite assessment of the proposed sites to identify any land acquisition and involuntary resettlement impacts, (ii) identification of any past or current concerns related to impacts on land acquisition.

II. Project Description

2. The USGADIP 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 areas.F

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. Combining spatial and sector approaches, it will support the socioeconomic development of existing urban subcenters and urban corridors to progressively transform the ger areas into more liveable, productive and well-functioning urban areas with improved residential, commercial and public services. To be developed in close coordination with the Government and international partners, the Investment Program is envisioned to provide a long-term commitment by Asian Development Bank (ADB) to the Municipality of Ulaanbaatar (MUB) to implement key physical investments, policy reforms, institutional strengthening, and capacity development. 3. 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. USGADIP is funded through a multitranche financing facility (MFF) lending modality totaling up to $320 million over a period of 9 years and will be comprised of three tranches.

A. Subproject Information

Social housing services for project subcenters

4. Two towers of nine storey apartments with 63 units each, total of 126 units, of social housing will be built in Khanyn Material area in 6th khoroo of Songinokhairkhan district under USGADIP. These two apartment buildings (each having a footprint of 325 sq.m) will be built on the northern part of 5 hectare land under the possession of Capital City Housing Corporation, NOSK. The area is vacant area designated for construction of social housing in December 2017 by MUB . This area was previously under the land possession of the Soginokhairkhan District of MUB and was

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.

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transferred to NOSK for MUB’s social housing projects. The land possession certificate was issued by the Land Management Agency of MUB (LMA) on 12 Dec 2017. In total, there will be social housing for 1,100 apartment units, of which 700 units will be built with investment from European Bank for Reconstruction and Development (EBRD). The site development plan, cadastral map, satellite image, photo and land possession certificate of NOSK are provided in the Annex 1. Documents of social housing services for project subcenters. Basic urban utility service facilities in the new land areas

5. 253 land parcels of 250m2 size will be allotted in Moringiin Davaa for eligible affected households, who chose to resettle in relocation site. This area is located in the 10th khoroo of Khan-Uul district in the housing development area of NOSK. The area allocated to the relocation site is 17 hectares and the total area under the possession of NOSK is 114 hectare since July 2017. This area before being allocated to NOSK in July 2017, was vacant public area belonging to the Khan-Uul district and was not registered (under any name) or used for any productive purposes. Within USGADIP, this area will be provided with 3.6 km water supply pipes with 10mx45m pumping station, 3.4 km sewerage main collector pipes with pumping station with capacity of 6,000m3/day, and 6.5 km electricity line of 10kV with 10/0.4kV 2x800kVA and 2MVt substations, and 4km communication line. The site development and infrastructure plan, cadastral map, satellite image, photo and land possession certificate of NOSK are provided in the Annex 2. Documents of basic urban utility service facilities in the new land areas. Shelter for victims of gender-based violence

6. The shelter for victims of gender-based violence will be located in the 10th khoroo of Bayanzurkh district. The shelter will be built on 3,147m2 of land within the 3.5ha lands under possession of the NPA since 2003. The proposed location within the site will be on the place where a heating stove building is located. The heating stove is not in use currently, therefore, it will be demolished. This heating stove is the property of the Finance and Supply Department of National Police Agency (NPA). The proposed area of the two-storey shelter building is 2,460m2, and will have a capacity for 40 persons. The image of the construction site, cadastral map, photo and land possession certificate of NPA are provided in the Annex 3. Documents of Shelter for victims of gender-based violence.

III. Assessment of LAR Impacts

7. The team of specialists, consisting of design engineers and resettlement specialists, have reviewed the technical design and inspected the proposed locations of (i) "Social housing services for project subcenters" in Khanyn material, (ii) “Basic urban utility service facilities in the new land areas" in Moringiin davaa for relocation site, and (iii) "Shelter for victims of gender-based violence". The ROWs of infrastructure construction sites for the “Basic urban utility service facilities in the new land areas” in Moringiin davaa were inspected as well. 8. Social housing services for project subcenters in Khanyn material will be built on vacant area ready for development, which has all the trunk infrastructure on site. This area was previously under the land possession of the Soginokhairkhan District of MUB and was transferred to NOSK for MUB’s social housing projects. The site was used as brick making unit operated by the district for about 20 years before closure of the unit around 2005. The site was not utilized for any purpose between 2005 to 2017, and the old structures of the brick unit were demolished around 2015. The area is under the land possession of NOSK. NOSK, as MUB’s company for social housing, is providing the site to USGADIP for this subproject. No LAR impacts are foreseen for this subproject. For details, refer to Annex 1: Documents of social housing services for project subcenters.

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9. Basic urban utility service facilities in the new land areas in Moringiin davaa for 17 hectare of relocation site will be built in Moringiin Davaa next to an existing ger area settlement. The site for 253 relocation land parcels is vacant area under the land possession of NOSK. NOSK has 114 hectare land in this area for social housing development, and is providing 17 hectare land for relocation site. USGADIP will provide all the trunk infrastructure for the entire 114 hectare land. The trunk infrastructure such as electricity, water, sewerage and communications, except for heating, will be provided by USGADIP, the heating will be provided by MUB. The trunk infrastructure will be built on public land along the ger area streets as well as along main road on vacant land. The ROW required for the electricity and communications line is upto 2 meters and for water and sewerage pipes is upto 6 meters. The width of the ger area streets vary from 8 to 20 or more meters, allowing sufficient space to construct the lines and pipes. In areas where the households and entities have their entrances, the construction work will be organized section by section to allow uninterrupted access and, where necessary, provision of temporary access bridge or similar. No LAR impacts are foreseen for this subproject. For details, refer to Annex 2: Documents of basic urban utility service facilities in the new land areas. 10. As for the trunk infrastructure for the site, it will be necessary to connect to central water network, local waste water plant, central electricity grid and central communications network. The water will be brought from the existing water supply reservoir in the Buyant-Ukhaa airport area to the east from the site through 5,350m long pipes. For reliable water supply for new land areas in Moringiin davaa, 2000 m3 water reservoir is planned to be built in the western part of the site on vacant public area at higher elevation to use gravity for the water distribution. The water pipes will be installed along the main road on public land in the beginning then on public land through the ger area street in the Moringiin davaa and then again on public land along the main road ending in a higher elevation of the site, see Annex 2 the first image with overall “Site development and infrastructure map”, and images 3-9 under “Satellite image of the site from Google map”, on these images blue line represents the water pipes. 2,600 m long sewerage pipes will be installed on public land through the ger area street in the Moringiin davaa and then on the public land along the main road to end up in the newly built local waste water treatment plant in the east of the Moringiin davaa, see Annex 2 the first image with overall “Site development and infrastructure map”, and images 3, 5-9 under the “Satellite image of the site from Google map”, on these images green line represents the water pipes. 5,946m electricity cable will be installed starting from electricity substation in the Nisekh – Buyant-Ukhaa area to the east of the site. Initially the cables will be installed on public land through the ger are streets and built-up area in the Buyan-Ukhaa airport area, then on public land along the main road in Moringiin davaa area, see Annex 2 the first image with overall “Site development and infrastructure map”, and images 1-9 under the “Satellite image of the site from Google map”, on these images bold red line represents the electricity cables, in some areas the line red line is overlapped with pink line. 3,900m long communication cables will be built on public land from the substation in the built-up part of Buyan-Ukhaa airport area all the way to the Moringiin davaa, see Annex 2 the first image with overall “Site development and infrastructure map”, and images 3-9 under the “Satellite image of the site from Google map”, on these images pink line represents the water pipes, in some areas the pink line is overlapped with red line. The pipes and cables will be installed in trenches of 0.45 – 3 m widths and 1 – 5 m depths. In the ger area streets trench shoring will be used. Table 1 below provides details of the installation of the pipes and cables.

Table 1. Trunk Infrastructure for Moringiin Davaa

No. Infrastructure type Total

length, m

Trench width, m

Trench depth, m

1 Water pipes 5,350 2 - 3 2.9 - 5 2 Sewerage pipes 2,600 2 - 3 3.5 - 4.7 3 Electricity cables 5,946 0.45 1 4 Communication cables 3,900 0.45 1 - 1.2

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11. Based on the designs prepared, there are no land acquisition and resettlement impacts that would be triggered due to the laying of trunk infrastructure to connect to the site. The available lands along the public roads have been assessed to be adequate to locate the proposed infrastructure. Consultations with the communities along the proposed RoW of infrastructure lines will be carried out and impacts avoided through minor realignments. Temporary impacts during construction will be short term and for the duration of construction along the particular stretch. PMO, with support from the program implementation support consultants will carry out consultations with the communities in the vicinity of the ROW along the infrastructure networks, upon finalization of the designs. Any such temporary impacts on livelihood will be identified through the internal and external monitoring and grievances lodged by the affected persons and entities and PMO’s routine activities of site inspection during the implementation of the subproject. 12. Shelter for victims of gender-based violence will be built on vacant area of 3,147m2 land, the building area is 2,460m2, on the 3.5ha lands under possession of the NPA since 2003.. The proposed land for the facility is the property of the NPA originally and it was used by NPA at least from 2003 for storage purposes. The location identified within the site for the shelter building will involve the demolition of a heating stove building, a property of the Finance and Supply Department of National Police Agency. The heating stove is not in use currently, therefore, it will be demolished. The proposed 3,147 m2 portion of the site that will be used for building the shelter does not include any storage structures, and the use of the site for storage purposes will continue after the construction of the proposed shelter. The land possession right of NPA was extended for 15 years on 12 January 2017. The demolishing and land clearing costs will be included in the construction budget. The construction site has access to trunk infrastructure across the public road in the south of the site with no impacts on households and entities. NAP and USGADIP consulted and agreed to build the shelter on this vacant site. No LAR impacts are foreseen for this subproject. For details, refer to Annex 3: Documents of shelter for victims of gender-based violence. 13. In any case, restriction to or temporary impacts on land and properties will be avoided so that the private land and properties in the vicinity of ROW not to experience any disturbance or inconvenience. It can be done, for instance, by arranging pedestrian and, if necessary, vehicle access temporary bridge or similar structures. The construction contractor will be responsible for taking all necessary measures to avoid such temporary and any other public disturbances.

IV. Consultation and Information Disclosure

14. The Program Management Office (PMO), in cooperation with the resettlement consultants, has been working with MUB and ADB to identify and select appropriate locations for the (i) "Social housing services for project subcenters", (ii) “Basic urban utility service facilities in the new land areas", and (iii) "Shelter for victims of gender-based violence" throughout 2019. As the results of discussions with MUB, the first two subprojects’ sites were identified on the vacant lands and ready to develop sites under the NOSK, social housing development company of MUB. PMO and NOSK have held extensive consultations and agreed the locations for "Social housing services for project subcenters" in Khanyn Material, and “Basic urban utility service facilities in the new land areas" in Moringiin Davaa. For the "Shelter for victims of gender-based violence", MUB and PMO consulted with NPA and agreed to use the site under NPA’s land possession. On 13th November 2019, NPA officially requested PMO to build the shelter house on the land under their possession. 15. There are no LAR impacts on the land and properties of any private households and entities, since all the three sites are on government lands without any ongoing or legacy issues related to land acquisition and resettlement. Consultations with LMA and verification of documents confirmed that there are no overlapping land rights in these three locations. The cadastral data as well as the land certificates for these three areas were reviewed and site visits confirm that these land areas are under the possession of the NOSK and NPA.

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16. However, there are private land and properties along the right of way (ROW) of the planned basic urban utility service facilities provision in the relocation site and may experience temporary impacts during the construction stage such as access to and from the properties and environmental impacts such as noise and dust. Therefore, the affected households and entities along the ROW of the subprojects should be informed and consulted. The consultations with the households and entities in the vicinity of the ROW of subprojects, were planned to be organized during February and March 2020, however, due to Covid-19 pandemic, all public activities (public and individual meetings) were prohibited by MUB as part of state of emergency. 17. It is recommended that the households and entities in the vicinity of ROW of the subprojects be consulted and informed about the USGADIP, subprojects, and possible indirect adverse impacts, USGADIP focal points for any questions or grievances, and GRM etc. once the restrictions on public activities are lifted and when the construction works start. 18. PMO, with support from the program implementation support consultants will carry out consultations with the communities in the vicinity of the ROW along the infrastructure networks, upon finalization of the designs. These consultations are expected to be completed by June 2020, prior to the initiation of civil works.

V. Conclusion

19. The review of the design documents and the inspection of the sites of the construction works and consultations with the stakeholders show that (i) no land and properties will be affected by the subprojects and there will be no land acquisition and resettlement impacts as defined by ADB SPS (2009; (ii) all lands required for the subprojects are either possessed by MUB or central government agency or by the public; and are all vacant land with no users of the site that use the site for productive or economic purposes, (iii) there are no structures, residences, or business within the sites that would be affected, no physical or economic displacement will occur, and (iv) the lands have been under state ownership for several years, and there are no claims or legacy issues associated with the 3 sites. 20. Any temporary impacts that may occur during construction will be addressed in consultation with the communities along the RoW and in accordance with the Resettlement Framework provisions for compensation of temporary impacts during construction. 21. An external monitor will carry out its own compliance monitoring for the USGADIP tranche 2 subprojects, including the 3 subprojects covered in this due diligence report.

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Annex 1: Documents of social housing services for project subcenters

Site Development Plan

The light blue colored two buildings on the map are the site for social housing.

Cadastral map of the site

The 5 ha land under the possession of NOSK is delineated within blue colored polygon in the map.

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Satellite image of the site from Google map

Photo of the site (photo taken on 29 Jan 2020)

The apartments for social housing are to be built in the area where the car is parked.

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Land possession certificate of NOSK, Khanyn material

NOSK was provided 5 hectare of land in the 6th khoroo of Songinokhairkhan district by Mayor’s order A/924 from 1 Dec 2017 for 15 years. The land possession certificate was issued by the Land Management Agency of MUB (LMA) on 12 Dec 2017.

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Annex 2: Documents of Basic urban utility service facilities in the new land areas

Site development and infrastructure map

Moringiin Davaa – relocation site (in pink blocks)

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Cadastral map of the site

The large polygon in the middle of the map above indicates the boundary of the NOSK site for housing development. The relocation site of 253 land parcels of 250m2 is located in the south-east of this polygon.

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Satellite image of the site from Google map

1 2

3 4

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5 6

7 8

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The planned infrastructure layouts are inserted into the satellite image to provide the overview.

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Photos of the site (photo taken on 4 Mar 2020)

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Land possession certificate of NOSK, Moringiin davaa

NOSK was provided 114 hectare of land in the 10th khoroo of Khan-Uul district by Mayor’s order A/543 from 17 Jul 2017 for 15 years. The land possession certificate was issued by the Land Management Agency of MUB (LMA) on 28 Aug 2017.

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Planned layout of the relocation site for 253 land parcels

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Annex 3: Documents of Shelter for victims of gender-based violence

Construction site image

The red polygon in the center of the image is the area designated for the shelter.

Cadastral map

The vacant polygon in the center of the map is the land parcel of the Finance and Supply Department of National Police Agency.

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Photo of the site (photo taken on 26 Mar 2020)

On the site, there is an abandoned old heating stove, which will be taken down, when the construction of the shelter starts.

Land possession certificate of Finance and Supply Department, National Police Agency

Finance and supply department of National Police Agency was provided 3.5 hectare of land in the 10th khoroo of Bayanzurkh district by Mayor’s order A/24 from 12 Jan 2017 for 15 years. The land possession certificate was issued by the Land Management Agency of MUB (LMA) on 22 Jan 2017.