Land Acquisition and Resettlement Plan May 2012

MON: Urban Transport Development Investment Program Prepared by the Municipal Government of Ulaanbaatar for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 14 May 2012)

Currency unit – togrog (MNT) MNT1.00 = $0.00076

$1.00 = MNT1,317.00

ABBREVIATIONS

ADB AH AP

– – –

Asian Development Bank affected household affected person

CBO DMS DOR GAF GOM HH IP

– – – – – – –

community-based organization detailed measurement survey Department of Roads grievance action form Government of Mongolia household Urban Transport Development Investment Program

LAR LARF LARP LRCUDD M&E MRTCUD MUB NGO PIU RPIC

– – – –

– –

– – – –

land acquisition and resettlement land acquisition and resettlement framework land acquisition and resettlement plan Land Relations, Construction and Urban Development Department of Municipality of Ulaanbaatar monitoring and evaluation Ministry of Road, Transportation, Construction and Urban Development Municipality of Ulaanbaatar nongovernment organization project implementation unit Resettlement Plan Implementation Committee

WEIGHTS AND MEASURES

km – kilometer m – meter m2 – square meter

GLOSSARY

32 toirog in. – Name of place, means 32nd circular intersection Baga toiruu (Inner

Ring) Compensation

– –

Name of area, including west and north part of Government building Cash or in-kind payment for the replacement of an asset

Cut-off-date Displaced persons Doloon buudal Entitlements Host population Household Involuntary resettlement Khoroo Land acquisition Livelihood restoration Rehabilitation Relocation Replacement cost

– – – – – – – – – – – – –

lost due to Project-related impacts Date after which people will not be considered eligible for compensation i.e. they are not included in the list of displaced persons as defined by the census. Normally, the cut-off date is the date of the detailed measurement survey 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 Name of place, means seventh bus stop Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation, which are due to affected persons, depending on the nature of their losses, to restore their economic and social base Community residing in the areas where the displaced persons are relocated 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 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 through a government‟s use of eminent domain Subunit of district The process whereby a government agency uses eminent domain to acquire all or part of the land a person owns or possesses for public purpose in return for fair compensation and rehabilitation support Reestablishment of income sources and occupations/employment of displaced persons Compensatory measures other than payment of the replacement cost of acquired assets, provided to displaced persons for re-establishing incomes, livelihoods, and living conditions The physical resettlement of displaced person from her/his pre-Project place of residence to a new place of residence 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

Severely affected Households Temporary land use impacts Vulnerable Groups Tavan buudal Zurgaan buudal

– – – – –

Affected households who will (i) lose 10% or more of their total productive land and/or assets, (ii) have to relocate; and/or (iii) lose 10% or more of their total income sources due to the subproject When land outside the proposed right of way (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 Distinct groups of people (poor, elderly, disabled and female headed households) who may suffer disproportionately from resettlement impacts Name of place, means fifth bus stop Name of place, means sixth bus stop

NOTE

(i) In this report, "$" refers to US 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.

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.

MON 39256: Urban Transport Development Investment Program

Draft Land Acquisition and Resettlement Plan for Tranche 1

Prepared by the Municipal Government of Ulaanbaatar

14 May 2012

ABBREVIATIONS ADB Asian Development Bank AH Affected household AP Affected person CBO Community-based organization DOR Department of Roads DMS Detailed measurement survey GAF Grievance action form GOM Government of Mongolia HH Household SPS Safeguard Policy Statement of ADB, 2009 LRCUDD Land Relations, Construction and Urban Development Department of

Municipality of Ulaanbaatar LAR Land Acquisition and Resettlement LARF Land Acquisition and Resettlement Framework LARP Land Acquisition and Resettlement Plan M&E Monitoring and evaluation MRTCUD Ministry of Road, Transportation, Construction and Urban Development MUB Municipality of Ulaanbaatar NGO Nongovernment organization PIU Project Implementation Unit RPIC Resettlement Planning Implementation Committee ROW Right of way RRP Report and Recommendations of the President (ADB) SPS Safeguard Policy Statement of ADB (2009) UTDP Urban Transport Development Investment Program Explanation of words Khoroo – sub unit of district Tavan buudal – name of place, means 5th bus stop Zurgaan buudal – name of place, means 6th bus stop Doloon buudal – name of place, means 7th bus stop 32 toirog in. – name of place, means 32nd circular intersection Baga toiruu (Inner Ring) – name of area, including west and north part of Government building Notes Currency Unit Tugrugs (MNT) $ 1.00 = MNT1, 264 Exchange rate: Average rate September 2011

DEFINITION OF TERMS Compensation: Cash or in-kind payment for the replacement of an asset lost due to Project-related impacts. Cut-off-date: means the date after which people will NOT be considered eligible for compensation i.e. they are not included in the list of DPs as defined by the census. Normally, the cut-off date is the date of the detailed measurement survey. Detailed measurement survey: means the detailed inventory of losses that is completed after detailed design and marking of project boundaries on the ground. Displaced 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. They are referred to as Affected Persons (APs) in the field and this LARP. Entitlement: Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation, which are due to affected persons, depending on the nature of their losses, to restore their economic and social base. 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. Host Population: Community residing in the areas where the displaced persons are relocated. 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 through a government‟s use of eminent domain. Land Acquisition: The process whereby a government agency uses eminent domain to acquire all or part of the land a person owns or possesses for public purpose in return for fair compensation and rehabilitation support. Livelihood Restoration: Reestablishment of income sources and occupations/employment of displaced persons. Rehabilitation: Compensatory measures other than payment of the replacement cost of acquired assets, provided to displaced persons for re-establishing incomes, livelihoods and living conditions. Relocation: The physical resettlement of displaced person from her/his pre-Project place of residence to a new 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. Severely affected households: Affected households who will (i) lose 10% or more of their total productive land and/or assets, (ii) have to relocate; and/or (iii) lose 10% or more of their total income sources due to the subproject. Temporary Land Use Impacts: When land outside the proposed right of way (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. Vulnerable Groups: Distinct groups of people (poor, elderly, disabled and female headed households) who may suffer disproportionately from resettlement impacts.

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY .................................................................................................... 1 II. PROJECT DESCRIPTION .................................................................................................. 7 III. SCOPE OF LAND ACQUSITION AND RESETTLEMENT ...................................................14

3.1. Affected People ..............................................................................................................14 3.2. Permanent Land Impact .................................................................................................14 3.3. Permanent Impact to Businesses/Assets ........................................................................15 3.4. Impact to Trees ..............................................................................................................16 3.5. Temporary Impact ..........................................................................................................16 3.6. Recommended measures to minimize the LAR scope ....................................................16

IV. SOCIOECONOMIC INFORMATION AND PROFILE .........................................................20

4.1. General ..........................................................................................................................20 4.2. Socioeconomic Details ...................................................................................................22

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION .......................29 VI. GRIEVANCE REDRESS MECHANISM .............................................................................32

6.1. Grievance Redress Steps ...............................................................................................32

VII. RESETTLEMENT POLICY AND FRAMEWORK ...............................................................34

7.1. Mongolia Legal Framework on Land Acquisition .............................................................34 7.2. The ADB‟s Safeguard Policy Statement .........................................................................37 7.3. Gaps between ADB Policy and the legislation of Mongolia .............................................43

VIII. ELIGIBILITY AND ENTITLEMENT ....................................................................................44

8.1. Methods for Defining the Replacement Value .................................................................51

IX. RELOCATION OF HOUSING AND BUSINESSES ............................................................54 X. INCOME RESTORATION AND REHABILITATION ..........................................................54 XI. RESETTLEMENT BUDGET AND FINANCE .....................................................................57 XII. INSTITUTIONAL ARRANGEMENTS .................................................................................60

12.1. Formation of Resettlement Plan Implementation Committee ..........................................60

XIII. IMPLEMENTATION SCHEDULE ......................................................................................62 XIV. MONITORING AND REPORTING .....................................................................................64

ANNEXURES ...........................................................................................................................67

Annex 1: Designs and photos of 7 intersections improvements in Tranche 1 ............................67 Annex 2. Designs and photos of Sections 3, 5 and Peace Bridge in Tranche 1 .........................73 Annex 3. Public notification of cut-off date: Section 3 (T1-A) and Section 5 (T1-B) ...................93 Annex 3. Public notification of cut-off date .................................................................................94 Annex 4. A Resettlement Information Leaflet ............................................................................95 Annex 5. Sample Grievance Action Form (GAF) ..................................................................... 109 Annex 6. Sample of individual notification ............................................................................... 110 Annex 7. Sample of replacement rates based on Botanic-Sharkhad Road Improvement Project (Ulaanbaatar), June 2011 ....................................................................................................... 111 Annex 8. TOR for the External Monitor ................................................................................... 115

I. EXECUTIVE SUMMARY 1. This draft land and acquisition resettlement plan (LARP) is prepared as a part of feasibility study for Tranche 1 of Urban Transport Development Investment Program (IP) partly financed by Asian Development Bank (ADB). Funding will be provided through multitranche financing facility (MFF) under three tranches. This LARP is prepared in accordance with the applicable laws of Mongolia, ADB‟s Safeguard Policy Statement (2009) and agreed land and acquisition resettlement framework (LARF) for the IP. It covers three components of Tranche 1, which will have physical improvements, and land and acquisition resettlement (LAR) impact, as follows: 2. Component A: Intersection Improvement. This component will improve seven road intersections in the center of Ulaanbaatar. Currently the intersections have poorly phased traffic lights, inadequate places for pedestrians to cross and congestion is caused by vehicles not having enough space to queue when turning. The improvements involve only redesign of intersection geometry, re-defining number and geometry of lanes, improved pedestrian crossings such as traffic islands to reduce the crossing distance, channelizing vehicle paths, installing the safety fences, updated signal phasing to accommodate traffic flows but no major civil work and improvements will be within the existing road right-of-way. Based on technical design at feasibility stage and resettlement surveys, no permanent LAR impact is anticipated for improvements of intersections. The scope will be verified during the detail design; if additional facilities acquiring more land will be included, related impacts will be incorporated into the final LARP. Designs of 7 intersections improvements in Tranche 1 and the photos of the area are given in Annex 1.

3. Component B: Road Improvements. This component includes improvements of 5.6 kilometers (km) of major north-south road corridor in Ulaanbaatar: (i) Chingeltei Avenue (T1-A, 2.0 km covered by Section 3), and (ii) Chingis Avenue (T1-B, 3.6 km covered by Section 5).1 The “Red Line” for the road improvements and widening will be within the existing rights-of-way of the project roads, which in some sections is 70–80 meters (m) along the road sections proposed for improvement. The road improvements will include improvement of surface, pedestrian facilities (sidewalks, road crossings, lighting), road safety features, and stormwater drainage. This route will be used for constructing the bus rapid transit BRT in Tranche 2.

4. Chingeltei Avenue (T1-A) is a major arterial road which connects the city with areas in the north including summer ger areas. It is currently four lanes and ranges from 14.7 m to 17 m wide. It will be expanded to 26.5 m wide, reducing the size of the pedestrian area but including a new pavement 3 m wide on either side of the road. It runs through a ger area and the improved 2 km section of road terminates in the north at the Dolon Buudal bus station, an important transport hub for the area. It starts in MT Gas Station and ends in Dolon Buudal bus terminal, i.e., only 2 km of road in northern part of Section 3 will be improved in Tranche 1. 5. Chingis Avenue (T1-B) is a major arterial road to the south of Ulaanbaatar which connects the city with the airport area. It is currently four lanes in the north reducing to two lanes in the south as the road crosses Yarmag Bridge. The road will be improved over a distance of 3.6 km, from Peace Bridge to Yarmag Bridge, referred to as Section 5. The road is between 9.1 m to 14.9 m wide and will be widened to 26.5 m including a 3 m pavement either side of the road. T1-A is Chingeltei Avenue in the north; T1-B is Chinggis Avenue in the south.

1 The north-south road corridor is divided into six sections in design.

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6. Component C. Peace Bridge Expansion. The project plans to expand the Peace Bridge crossing the Selbe River and the central railway as a part of the north-south BRT route. The conceptual design proposes improvements of the existing two 2-lanes in each side of bridge roadway, and construction of a one-way connection ramp for each side of the existing bridge. Based on conceptual design and the site surveys, the bridge expansion and construction of new ramps will take place within the existing right-of-way and adjacent publicly owned land. Therefore, it is expected that no acquisition of private land and little if any physical displacement of housing and businesses is required. However, the preliminary design does not include the technical details, such as the dimensions of physical improvements, the width of proposed expansion of the bridge, the locations of installation/construction of technical structures, such as the pillars for bridge and new ramps. The available space, including the existing right-of-way and adjacent publicly owned land, is not expected to cause LAR impacts, although there may be temporary impacts on public lands during construction. The location is not populated and the right-of-way is free from the occupants (including encroachers and squatters), with the exception of a spot temporary used by Naran Motors company for storing its cars for sale in open area under a tent. Preliminary designs of road improvements of Section 3 and Section 5, and expansion of the Peace Bridge and the photos of these locations are given consecutively in Annex 2. 7. In August and September 2011, resettlement surveys, partial census of affected people/entities, inventory of affected land and assets, and consultations with the affected persons and local officials were carried out for components A and B of Tranche 1. In February 2012 resettlement surveys were undertaken for component C in light of decision made in January 2012 to add the expansion of Peace Bridge into Tranche 1. 8. The number of affected persons and types of the impacts in draft LARP are tentative and are subject to change based on the final engineering design and alignments. These will be finalized prior to project implementation by the project implementation unit (PIU), with support from the Engineering, Construction Management. Also, Resettlement specialists will conduct full and updated census of the affected persons, detailed measurement survey of the impacted land and assets and will assist the PIU to finalize the LARP.

9. LAR will be required for implementation of Component B: Road Improvements, that includes the road upgrade in two sections of major arterial roads (i) Chingeltei Avenue (T1-A, 2 km), and (ii) Chingis Avenue (T1-B, 3.6 km) and of Component C: Peace Bridge expansion. Road widening and rehabilitation in these sections of the main road corridor in Ulaanbaatar will have linear impact within the existing road‟s right-of-way, including impacts on 341 m² land which is now used by small-scale private vendors (households) for running their shops and kiosks, mainly within the right-of-way.2 A total of 34 households, those owning the mentioned shops and kiosks in the impacted land, will be affected; it is estimated there will be in total about 190 affected persons.3 Of these 34 affected households, based on partial census, at least 12 vulnerable households (with 44 persons) were identified, including, 8 female-headed households.

2 Non-titled persons with recognizable claims will be fully compensated for all losses including land, while non-titled

persons without such claims will be compensated at least for all non-land assets and eligible for assistance. 3 Estimations made based on available data for 13 AHs indicating the median size of AHs family as 5.6 members.

Data about some AHs is unavailable, who were not available or not interested in taking part in the initial census.

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10. No other land, agricultural, pastures, and residential will be impacted. No impact is anticipated to the community and cultural facilities. Since the road improvements will mainly be within the existing right-of-way with the linear land impact along the existing road, so only the small scale services (e.g., shops and kiosks mainly established within the right-of way) will be impacted. No residential land or houses are expected to be affected.4 Therefore, relocation of houses and settlements is not anticipated in Tranche 1. 11. In total, 27 business entities/shops and kiosks along the road owned by 34 households will be affected as they are mainly established within the existing road‟s right-of-way. No commercial employees were identified in the project area as the businesses are small scale and operated by their owners. One shop (3S016) reportedly is a joint property of eight relative households. The impacted 27 businesses comprise a total of 287 m² of building structures, including some made of brick (148 m²), metal (67 m²), wood (50 m²), and concrete (22 m²) construction materials. The metal kiosks can be physically relocated to new locations while the other structures will have to be demolished and compensated. The impacts are located in Sukhbaatar district, 13th and 14th Khoroos, Chingeltei district, 14th Khoroo, Khan-uul district 3rd Khoroo and 18th Khoroo in Kara Bulunin. 12. Involuntary LAR by the government for projects in urban areas is based on negotiation and contracts with the affected entities according to the Civil Code of Mongolia. In compliance with the legislation of Mongolia, requirements of ADB‟s Safeguard Policy Statement and agreed LARF of the IP, the project will adopt a LAR practice involving contractual agreements negotiated between the affected persons and the Land Acquisition Division of Land Administration Department of Ulaanbaatar. The displacement of unlicensed affected persons without fair compensation is a violation of the ADB‟s Safeguard Policy Statement. All affected persons who are unlicensed occupants of land in areas designated by government for land allocation to private people and entities are treated as legalizable. The eligibility and entitlements for specific types of loss are summarized in the Entitlement Matrix of this LARP (Table 30). 13. The concerned stakeholders were involved in the resettlement plan preparation, including officials from Road Planning Division, Road Transportation Office, Transportation Planning Division of Public Transport Department, Land Acquisition Division of Land Administration Department, Public Transport Department of Ulaanbaatar as well as Khoroos‟ staff and affected persons. The main compensation principles and policies applicable in this LARP as set out in ADB‟s Safeguard Policy Statement5 were discussed and agreed with the stakeholders. 14. To ensure peoples‟ participation as a continuous two-way process, a number of consultation meetings were arranged on social and resettlement issues during the feasibility study, socio-economic survey of the affected persons and individual and group consultation

4 In Section 3, there are 4 two-storey buildings located in about 5 meters away from the existing roadside (surface).

They are used mainly for commercial purposes, including food stores, sewing shops, sale of different items and services, location of bank branch. It was reported that a family is temporary renting the second floor of one of these buildings for living. However, more detail information about the owners and tenants of these buildings were unavailable during the preparation of draft LARP; the owners and tenants were always absent and non-responsive in surveys conducted during feasibility study. Based on resettlement specialist‟s recommendations, the engineers are now considering avoiding any impact to these 4 two–storey buildings in detail design. If not, they shall be considered in LARP finalization and project implementation schedule.

5 The specific policy requirements for involuntary resettlement are set out in Annex 2 of the SPS, referred to as SR 2.

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meetings in August and September 2011. The findings of this process are summarized in Section V of this LARP. Consultation meetings will be an ongoing process during LARP preparation/finalization and implementation. Both the draft and the final LARP will be endorsed by the Municipality of Ulaanbaatar (MUB), cleared by ADB and disclosed to the affected persons in Mongolian language. The draft and final LARP in English will be posted on the websites of ADB, MUB and Ministry of Road, Transportation, Construction and Urban Development (MRTCUD) of Mongolia. 15. Relocation of residential houses is not required in Tranche 1, as the impact will be linear along the road and only impacts the small kiosks and shops which have been established within the right-of-way. The Section VII of this draft LARP specified the principles, entitlements and procedures to relocate the affected shops and kiosks and rehabilitate the livelihoods of the affected households. The income of their shops and services will be impacted and needs to be restored. The business structures of all affected persons will have permanent impact, partial or full, and need to be altered or demolished, respectively. Of total 27 businesses, 5 will have partial permanent impact less than 10%, 3 will experience partial permanent impact up to 25%, and 19 shall be totally demolished due to full and permanent land impact which can be relocated to new sites (including 8 metal kiosks) as decided by the stakeholders and affected persons during detail negotiations and finalization of LARP. To assist the affected persons/households with income restoration and rehabilitation, MUB will compensate for the loss of income/livelihood sources at full replacement cost. The affected business owners are eligible to receive (i) the costs of reestablishing commercial activities elsewhere, (ii) the net income loss during the transition period, and (iii) the costs of transferring and reinstalling business equipment. In addition to these, the affected person or their family members will be provided (i) preferential treatment in employment opportunities derived from the project, (ii) capacity building and skill development trainings, and (iii) additional cash assistance for vulnerable and disabled groups who will experience loss of livelihood. 16. MUB will set up a Grievance Redress Mechanism (GRM) to support the affected persons on problems arising from LAR and associated impacts. To ensure the direct communication of PIU as implementer with the affected persons and to facilitate the direct and immediate handling of grievance issues, PIU will be the initial recipient of the grievances for the project, which will resolve the minor issues directly or with assistance of local Khoroo. The unresolved and major issues will be presented to the Resettlement Plan Implementation Committee (RPIC) formed by MUB, consisting of relevant government offices. The RPIC shall be formed and operational by the time of conducting final detail measurement survey and census of the affected persons and will be accessible for review of any concerns and disputes of the affected persons rose during the measurement and inventory of losses. If the affected person will still be dissatisfied by the decision of RPIC, a review of the case by ADB may be requested. Alternatively, the affected person can file a case in court of law of Mongolia at any time during the grievance review process. A Grievance Action Form will be used for initiating and tracking the grievance process in each case. 17. MUB has overall responsibility for finalization and implementation of LARP. It will form PIU responsible for supervision and implementation of LARP and preparing the progress reports to MUB and ADB. Besides, the concerned governmental offices will play an instrumental role in implementation of Project and LARP. Monitoring of compliance with the agreed LARP, LARF, ADB‟s Safeguard Policy Statement, and legislation of Mongolia during implementation will be carried out by the PIU, as well as by an External Monitor (Monitor).

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18. This draft LARP is prepared based on preliminary design, the information it contains is preliminary and estimates only. It will be finalized based on final detailed design, detailed measurement survey, and census of the affected persons/entities carried out by PIU with support of other concerned government officers and resettlement specialist. The final LARP will be submitted to ADB and MUB for review and approval. The time for implementation of resettlement plan will be scheduled as per LAR procedures and integrated with the project civil works implementation schedule (i.e., LAR needs to be factored into Project schedule and formulation). Key milestones shall be established to ensure LAR tasks are completed on time and do not delay civil works. All activities related to the land acquisition and resettlement must be planned to ensure that compensation is paid prior to displacement and commencement of civil works. Public consultation, internal monitoring and grievance redress will be undertaken throughout the project duration. Affected persons will have to be given at least 3-months notice to vacate their property. In case of relocation of houses and shops, the affected persons cannot be relocated in winter period and civil works cannot commence. 19. The budget for implementation of LARP for Tranche 1 is estimated to be MNT146 million, which is equivalent to about $115,000, including compensation and assistance, transaction, administration, and contingency costs, which will be funded by MUB. The costs for various items and losses are estimated based on consultation with the stakeholders and the local practices and rates.6 This is a preliminary estimation to be verified following the detailed design and final detailed measurement survey and census of the affected entities and the latest market prices for items. The actual cost will be known when all compensation provisions have been discussed in detail and agreed between the affected persons and other stakeholders. The current land purchase rate of MNT21,600 per m² is applied in budget estimation in draft LARP. Losses of land and structures, as well as transaction and relocation costs for each affected person will be based on market replacement value. 20. Indigenous people i.e. tribal communities existing outside the cultural and legal mainstream of Mongolian society are not present in the Tranche 1 sites. Therefore, the ADB‟s Safeguard Policy Statement requirements for Indigenous Peoples will not be triggered by this project.

21. Women have active economic role in project area and are engaged in income generating activities, particularly in small business sector. Most of the affected kiosks and shops run by women and about 85% of women among the affected persons are engaged in small-scale entrepreneurship. The project will pay particular attention to ensure that women are the recipients of compensations pertaining to their activities, and women, who are de-facto household heads, shall be clearly listed as beneficiaries of compensation. In order to ensure the above, the following actions will be considered: (i) Impact assessment will be gender disaggregated and will clearly indicate the number of

affected women-headed households and their pre-program socioeconomic status. (ii) Women will be encouraged to actively participate in all LAR-related consultations and

negotiations about compensation for loss of productive assets. 6 The compensation are estimated based on (i) valuation rates as of June 2011, given by valuations specialists of

PRA and LAD of Ulaanbaatar for structures and land based on local market survey in Ulaanbaatar (provided for preparation of Resettlement Plan-Botanic-Sharkhand Road Improvement Project (ADB), and (ii) consultation with the stakeholders. These are the most recent and available rates and have been applied in this budget for basic estimation. They will need adjustment in finalization of LARP. Annex 7 provides replacement rates for relevant items; copies from draft Resettlement Plan-Botanic-Sharkhand Road Improvement Project.

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(iii) In registration/licensing of titles to the new land plots allocated to eligible affected persons/households, for the compensation of lost land, the names of women/ both spouses as title-owners will be recorded in the documents.

(iv) Women headed households and vulnerable households/persons will be given employment priority derived from Project. Additionally, they will be paid allowance equal to 3 months‟ minimum wage in case of loss of livelihood.

(v) Both internal and external LARP monitoring/evaluation and documentation will pay special attention on the impact of resettlement on women and other vulnerable groups.

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II. PROJECT DESCRIPTION 22. This Investment Program aims to (i) improve road infrastructure bottlenecks to maximize the road network capacity; (ii) apply traffic management measures to increase traffic flow efficiency and safety; (iii) develop and implement parking, traffic, and travel demand management policies; (iv) develop a BRT-based public transport system; and (v) improve the public transport management and quality of services in Ulaanbaatar. Tranche 1, covered in this LARP, comprises the following components: (i) Component A: Intersection Improvement. This component will improve seven road

intersections in the center of Ulaanbaatar to increase the efficiency and safety of intersection operation through redesign of intersection geometry. The improvements involve re-defining number and geometry of lanes, improved pedestrian crossings such as traffic islands to reduce the crossing distance for pedestrians, updated signal phasing to accommodate traffic flows, new signpost locations, channelizing vehicle paths, and installing safety fences.

(ii) Component B: Road Improvements. This component includes the upgrade in two road

sections (5.6 km) along major transport corridors. The road improvements will include road widening, surface improvement, improvement of pedestrian facilities (sidewalks, road crossings, lighting) and storm-water drainage. The road mainly remains within the existing right-of-way.

(iii) Component C. Expanding the Peace Bridge. Tranche 1 will expand the Peace Bridge

crossing the Selbe River and the central railway as a part of the proposed BRT route to be constructed in Tranche 2. The conceptual design proposes expanding the existing 4-lane bridge by adding a 2-lane roadway on each side of bridge‟s roadway (i.e., to make an 8-lane bridge), and construction of a two connection ramps in each side of the existing bridge.

(iv) Component D: Intelligent Transport System. This component involves the development

of systems to improve public transport management and includes a smart card system and Geographical Positioning System (GIS) technology to track vehicles.

(v) Component E: Capacity Building and Skills Transfer. The project will work with MUB to

promote economic efficiency, institutional and organizational development, and urban environmental improvement. Institutional development for the project will include establishing a public transport committee set up by MUB by end of 2012; and training for MUB‟s staff in the Public Transport, Urban Development and Road Departments.

23. The components D and E are not related to physical improvements provision, so there will be no LAR impacts. Therefore, this LARP covers the physical improvements envisaged in the components A, B, and C of Tranche 1, as follows: 24. Component A: Intersection Improvement. An example of the design for the intersection improvements is given in Figure 1. Based on design at feasibility stage and resettlement surveys, no LAR permanent impact is anticipated in improvements of the seven intersections. Their improvements involve only redesign of intersection geometry, re-defining number and geometry of lanes, improved pedestrian crossings such as traffic islands to reduce the crossing distance, channelizing vehicle paths and installing the safety fences, updated signal phasing to accommodate traffic flows but no major civil work and improvements will be

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within the existing road right-of way. The scope will be verified during the detail design if additional facilities will be included, which would require additional land. Designs of seven intersections improvements in Tranche 1 and the photos of the areas are given in Annex 1. The locations of seven intersections included in Tranche 1 are given in Figure 2. Figure 1: Example Intersection Improvement Design (Zamiin tsagdaa Int., i.e. Ulzi center)

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Figure 2: Component A Location – Intersection Improvements

Number and names of intersection included in Tranche1: (4) Wrestling Palace (21) Grand Plaza (23) Brau Haus (or called Gezer Temple) (25) Ekh Nyakhlas Hospital (26) Ulzi Center (also called Zamiin tsagdaa) (28) Tasgaan ovoo (also called Urbanek) (29) Railway College

25. Component B: Road Improvements. Tranche 1 will upgrade road in two sections of major arterial roads: (i) Chingeltei Avenue (T1-A, 2.0 km7), and (ii) Chingis Avenue (T1-B, 3.6 km), including road widening, within the current right of way, known as the Red Line, in Mongolia.T1-A is Chingeltei Avenue in the North; T1-B is Chingis Avenue in the South. Error!

Reference source not found. shows the proposed tranches of the Investment Program and the locations of Components B.

Figure 3: Component B Location – Road Improvement

7 Of 4 km, 2 km of Section 3 will be improved based on priority construction plan of Road Improvement Plan.

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26. Chingeltei Avenue (T1-A) is a major arterial road which connects the city with areas in the north including summer ger areas. It is currently four lanes and ranges from 14.7 m to 16 m wide. It will be expanded to 26.5 m wide, reducing the size of the pedestrian area but including a new pavement 3 m wide on either side of the road. It runs though a ger area and the 2 km of the road will be improved that terminates in the North at the Dolon Buudal bus station, an important transport hub for the area. This is covered by Section 3 and starts from MT gas station and ends in Dolon Buudal bus terminal. 27. Chingis Avenue (T1-B) is a major arterial road to the south of Ulaanbaatar which connects the city with the airport area. It is currently four lanes in the north reducing to two lanes in the south as the road crosses Yarmag Bridge. The road will be improved over a distance of 3.6 km, from Peace Bridge to Yarmag Bridge, covered by Section 5. The road is between 9.1 m to 14.9 m wide and will be widened to 26.5 m including a 3 m pavement either side of the road. The Figure 4 shows the locations of Section 3 and Section 5 in Entire Route Map of north-south Axis, Ulaanbaatar. Figure 5 shows an example road improvement design. Designs of Section 3 and Section 5 improvements in Tranche 1 and the photos of the areas are given in Annex 2.

Figure 4. Entire Route Map of North-South Route, Ulaanbaatar

Figure 5: Proposed Road cross-sections for T1-A and T1-B

Cross-section for T1-A

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Cross-section for T1-B

28. As mentioned above, in Chingeltei Avenue (T1-A, 2.0 km) and Chingis Avenue T1-B, 3.6 km), the design indicates to widen the road to 26.5 m width, while the width of the existing road surface ranges between 9.1 m to 17 m in different segments (see Table 1). This will impact the land used by small vendors (kiosks and shops), mainly established within the existing right-of-way along the road. No impact is anticipated to residential, or agriculture land, crops, houses, cultural, and communal facilities in Tranche 1. Consideration will be given during the detailed design to minimize the adverse impacts on land acquisition. Recommendations made in next section for minimizing the impact and reducing the number of potentially affected structures and people.

Table 1. Existing road surface widths versus the proposed design (feasibility stage)

Chainage

Width of existing road surface

(m)

Width of road based on design (feasibility study stage

(m) 2 km in northern part of Section 3 From To 0+000 0+250 15.0 26.5 0+250 0+500 15.8 26.5 0+500 0+750 16.9 26.5 0+750 1+000 16.9 26.5 1+000 1+250 17.0 26.5 1+250 1+500 14.8 26.5 1+500 1+750 15.2 26.5 1+750 2+000 14.7 26.5 Section 5 0+000 0+250 11.6 26.5 0+250 0+500 12.2 26.5 0+500 0+750 10.0 26.5 0+750 1+000 10.0 26.5 1+000 1+250 9.6 26.5 1+250 1+500 9.3 26.5 1+500 1+750 9.1 26.5 1+750 2+000 14.8 26.5 2+000 2+250 14.9 26.5 2+250 2+275 13.9 26.5 2+275 3+000 14.9 26.5 3+000 3+300 14.9 26.5 3+300 3+360 14.9 26.5

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29. Component C. Expanding the Peace Bridge. The conceptual design proposes expanding the existing 4-lane bridge by adding a 2-lanes roadway on each side of the bridge(i.e., to make an 8-lane bridge) and construction of two connection ramps on each side of the existing bridge. Figure 6 below provides the location of Component C.

Figure 6: Component C Location – Peace Bridge Expansion

30. Based on preliminary design and the site surveys, the bridge expansion and construction of new ramps will take place within the existing right-of-way and partially on other publicly owned land. Therefore, no acquisition of private land and physical displacement of housing and businesses are anticipated. However, the design at preliminary stage does not reflect the technical details yet, such as the dimensions of physical improvements, the width of proposed bridge expansion and the locations of technical structures, such as the pillars for bridge and new ramps. There is sufficient space, including the existing right-of-way and adjacent public land, which can allow construction to avoid the displacement impacts, although there may be temporary impacts during construction. The location is not populated and the rights of way are mainly free from the permanent structures and occupants, including encroachers and squatters. Figure 7 provides the conceptual design of Component C (feasibility stage). 31. Although the bridge expansion will not involve permanent land acquisition, it will be necessary to remove some small structures in order to clear off the right of way in the north part of the bridge, including the (i) temporary use of about 100 m2 of the right of way below the bridge for parking the cars for sale of Naran Motors, west side; and (ii) storehouse owned by the city municipality located below the bridge and adjacent; and (iii) in approximate location of new to be constructed ramps, in north part of the bridge, below grade 4 truck containers parked within the right of way under a cloth tent, which can be removed. In north part of the bridge, east side, there are compounds of private companies Naran Motors and Petrovis Gas Station, which are located about 40 meters away from the bridge. They have entrances from the building side, so are unlikely to be affected/disrupted by construction works. In the south part of the bridge, the approximate location of construction of new ramps is free from any structures, e.g. the right-

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of way is clear from any private buildings and public land is available. Therefore, no land acquisition and or structure demolition is required. No tree is likely to be impacted as the location is lacking of trees. The photos of locations provided in Annex 2.

Figure 7: Component C Design – Peace Bridge Expansion

32. The Project‟s strategy is to minimize LAR impacts by (i) confining the construction works within existing rights-of-way and/or use of the government-owned land, (ii) selection of alignments to minimize impacts, and (iii) implementation of works in a phased manner to minimize the period of disruption. 33. This assessment is based on preliminary engineering design and shall be reviewed and updated as per the final design, the identified dimensions and locations of technical structures (expanding the bridge width, identification of locations for pillars of bridge and new ramps, etc.). The assessment of or resettlement impacts will be confirmed when the detailed design is completed.

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III. SCOPE OF LAND ACQUSITION AND RESETTLEMENT 34. LAR will be required for implementation of Component B: Road Improvements, while in Component C: Peace Bridge Expansion there is no acquisition of private land or physical displacement of housing and businesses required but there will be some temporary impacts. Therefore, the impacts in the following section focus on Component B and C. Component B includes the road upgrade in two sections of major arterial roads (i) Chingeltei Avenue (T1-A, 2.0 km), only part of Section 3, hereinafter “Section 3”, (ii) Chingis Avenue (T1-B, 3.6 km), hereinafter “Section 5”. These estimates are preliminary and will be updated in the final LARP based on detailed design, DMS, and census of affected persons.

3.1. Affected People

35. Based on preliminary design, it is estimated that 34 households with about 190 persons8 will be affected by LAR. In total, 14 affected households were surveyed, but complete information is collected for 13 of the affected households. This partial census conducted at feasibility study stage, has identified 12 vulnerable households including 44 affected persons and 8 female headed households. The details of the affected people are given in Table 2.

Table 2: Affected People

Categories of AP No. Age (%)

Total No. of Affected Households (AHs) 34 100 Affected Households covered by initial census 13 100 (of 13 HHs) Affected Person covered by the census 72 100 Children under 18 16 22 Working age persons 50 69 Elderly persons 6 8 Average HH size 5.5 Vulnerable households7 12 44 APs of surveyed 72 APs Of which: female headed households 8 29 Disabled persons 3 4 Land title holders TBD AHs to be relocated 0 Informal shops and kiosks to be relocated 19 70

3.2. Permanent Land Impact

36. In Tranche 1, permanent impacts will be required in Section 3 and Section 5 of North-South Route within the rights-of-way and for Peace Bridge expansion, existing rights-of-way and/or the public land may be required depending on detail design. According to preliminary design, the existing road will be widened through utilizing a wider strip of land within the existing

8 Estimation based on available complete data for 13 AHs that indicates to median size of AHs family as 5.5

members. 100% survey of the affected persons/entities was attempted, but some of them were always absent and non-responsive.

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road‟s right-of-way. This will impacts about 341 m² of land along the road corridor which is used now by 27 small businesses (kiosks and shops), that are owned by 34 mentioned households (Table 3). Many of them established these businesses along the road within the right-of-way9.

Table 3. Type of Impact

Type of Impact No. of Households No. of APs HHs losing commercial land 34 Approximately 190 HHS losing residential land 0 0 HHs losing commercial land and structure 34 Approximately 190 HHs losing residential land and structure 0 0 HHs losing commercial structure/kiosks/shops

34 Approximately 190

HHs losing residential structure 0 0 HHs losing livelihoods 34 Approximately 190 HHs to be relocated 0 0 Businesses affected 27 Approximately 190 Businesses to be relocated 19 NA No. of trees affected 156 NA

3.3. Permanent Impact to Businesses/Assets

37. The impacted total 27 businesses include kiosks and shops with combination of items such as clothes, foods, car spare parts. One of the shops (3S016) reportedly is a joint property of 8 households/relatives10. No commercial employees were identified in these entities as the businesses are small scale and operated by their owners. Based on consultations with the officials and screening of the area, most of them are non-titled land users, which had established businesses within the existing road‟s right-of-way. Table 4 below provides details of the structures and land to be affected. For the easy reference, the ID codes are formed to the surveyed affected entities, e.g. “3S001” refers to the affected entity in Section 3. “5S001” refers to the affected entity in Section 5. Below are given some details about the locations of those 27 businesses to be impacted in each two road sections:

(i) Section 3: North-South Chingeltei Ave: In total, 17 kiosks and shops to be impacted. Of these, impact to 12 (7 metal kiosks located within existing bus stations and 5 different shops/vendors along the road) is unavoidable. The impact to the other 5 (4 two-storey buildings and one fence, located in about 5–7 m away from the existing roadside (surface)) recommended to avoid in detail design. These buildings are used for commercial purposes (food stores, sewing shops, sale of different items and services, bank branch), though during consultation it was mentioned that a family is temporarily renting for living in the second floor of one of these buildings. However, more detail information about the owners and tenants of these buildings is unavailable at feasibility study stage, despite repeated attempts, the owners and tenants were absent and non-responsive to participate in resettlement surveys

9 Non-titled persons with recognizable claims will be fully compensated for all losses including land, while non-titled

persons without such claims will be compensated at least for all non-land assets and eligible assistance. 10 Reportedly, their shops had been impacted (removed back two-three meters) during road widening in 2009 and

they were non-responsive for participation in the survey this time.

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(ii) Section 5: North-South Road, Chingis Ave.: A total 10 kiosks located within the existing bus stations will be impacted. The impact is unavoidable, but it is considered that, where feasible, the kiosks will be relocated nearby (removed back) or relocated within the new bus stations. Most of these kiosks were closed during the resettlement surveys.

3.4. Impact to Trees

42. There is no tree or bush affected in Section 3 (from MT gas station to Dolon Buudal). The entire road is treeless and dusty and looks never had any tree. In Section 5, the trees are located as follows: 6 trees in +0 to 0.50 km, 16 trees in 0.50 to 0.750 km, 41 trees in 0.750 to 1 km. They are located in about 4–5 m away from the existing roadside ; 9 trees are in 1 to 1.2 km, which are located about 4–7 m away from the existing roadside (surface); 84 trees are in km 1.8 to 3.6 km. The engineering solutions will be applied to avoid impact at least to some of these trees, e.g. retaining the trees in-between the new roadside and sidewalk. These are public trees, no private tree is impacted. The locations of constructions works for the Peace Bridge expansion have no trees.

3.5. Temporary Impact 43. Temporary impacts due to occupation of land of non-affected entities for construction activities might not be required, as the right-of-way has sufficient space for construction works and contractors shall manage the construction works in way not to close or interrupt the entrance to the services along the road so their business will remain operative. Detailed assessment on temporary impacts due to construction will be made based on final design and during the implementation. There could also be temporary disruption of utility services such as water mains, electricity, sewers and drainage. These kinds of impacts will be verified based on final design and addressed in the final LARP and during implementation. If such disturbance will be required, it will be on the basis of mutually agreed contract. The affected persons/entities will be eligible for compensation when disturbance/disruptions happen, based and equivalent on replacement cost of the occurred losses/incomes and/or required costs for mitigation/restoration of any other damages.

3.6. Recommended measures to minimize the LAR scope 44. There are four 2-storey buildings located about 5–7 m away from the existing roadside (surface) in Section 3. It is recommended to avoid the impact to these buildings in final design; consequently, these are not included in the estimate of impacts. To ensure the safety measures, there shall be installed strong cash barriers in-between the roadside and sidewalks, particularly in Section 3 for safety of pedestrians and residential area adjacent to the roadway and located below the road grade. It is also recommended to consider in the project design the relocation of affected kiosks into new bus stations, where applicable.

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Table 4. Affected land and structures11

Affecetd Entity ID Code :

Type of business/structure

No. of Business Affected

No. of Affected

HH

Road Section

Km/Chainage (m) Road side

Distance from the existing roadside

(surface12) (m)

Total area of the affected land on

which the structure is built (m2)

Land area

impacted m2

Scale of impact

Total Built up Area (Buildings) Buildings m2

affected Length Width

Length (m) Width (m) Total Affected Total Affected

3S001 Shop 1 1 3 0 -0.250 Right 2 13 4 52 100 13 13 4 4 52

3S002 Kiosk 1 1 3 0 -0.250 Right 1 3 3 9 100 3 3 3 3 9

3S003 Kiosk 1 1 3 0 -0.250 Right 1 3 3 9 100 3 3 3 3 9

3S004 Shop 1 1 3 0 - 0.250 Left 5 10 10 10 10 10 10 10 0.5 5

3S005 Kiosk 1 1 3 0.500-0.750 Left 0.5 3 3 9 100 3 3 3 3 9

3S006 Kiosk 1 1 3 0.500-0.750 Left 0.5 3 3 9 100 3 3 3 3 9

3S007 Kiosk 1 1 3 0.750 -1000 Left 0.5 3 3 9 100 3 3 3 9

3S008 Kiosk 1 1 3 0.750 -1000 Left 0.5 3 3 9 100 3 3 3 3 9

3S009 Shop 1 1 3 1.250-1500 Right 3 3 7 5 25 3 3 7 1 3

3S010 Shops 1 1 3 1.500 - 1.750 Right 5 10 10 10 10 10 10 10 0.5 5

3S011 Kiosk 1 1 3 1.500 - 1.750 Right 0.5 3 3 9 100 3 3 3 3 9

3S012 Shop 1 1 3 1.500 - 1.750 Left 5 10 10 10 10 10 10 10 0.5 5

3S013 Shop 1 1 3 1.500 - 1.750 Left 5 10 10 10 10 10 10 10 0.5 5

3S014 Shop 1 1 3 1.500 - 1.750 Left 5 10 10 10 10 10 10 10 0.5 5

3S015 Shop 1 1 3 1.750 -2000 Right 4 10 10 20 20 10 10 10 2 20

3S016 Shop 1 8 3 1.750 -2000 Right 4 10 10 20 20 10 10 10 2 20

3S017 Shop 1 1 3 1.750 - 2000 Left 3 5.4 3.2 17 100 5.4 5.4 3.2 3.2 17

5S001 Kiosk 1 1 5 1.500-1.750 Right 1 3 3 9 100 3 3 3 3 9

5S002 Kiosk 1 1 5 1.500-1.750 Right 1.5 3 3 9 100 3 3 3 3 9

5S003 Kiosk 1 1 5 1.500-1.750 Left 2 3 3 9 100 3 3 3 3 9

5S004 Kiosk 1 1 5 1.500-1.750 Left 2 3 3 9 100 3 3 3 3 9

5S005 Kiosk 1 1 5 2.500-2.750 Right 2 6 6 36 100 6 3 6 3 9

5S006 Kiosk 1 1 5 2.500-2.750 Right 0.5 2 2 4 100 2 2 2 2 4

5S007 Kiosk 1 1 5 2.500-2.750 Right 3 3 2 6 100 3 3 2 2 6

11 This land to be impacted is that where the shops and services of the affected persons located, mainly within the right-of-way. 12 The businesses/structures location given in distance from the existing roadside surface edge, not ROW, in meters.

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Affecetd Entity ID Code :

Type of business/structure

No. of Business Affected

No. of Affected

HH

Road Section

Km/Chainage (m) Road side

Distance from the existing roadside

(surface12) (m)

Total area of the affected land on

which the structure is built (m2)

Land area

impacted m2

Scale of impact

Total Built up Area (Buildings) Buildings m2

affected Length Width

Length (m) Width (m) Total Affected Total Affected

5S008 Kiosk 1 1 5 2.500-2.750 Left 1 3.5 4.5 16 100 3.5 3.5 4.5 4.5 16

5S009 Kiosk 1 1 5 2.500-2.750 Left 1 3.5 2.5 9 100 3.5 3.5 2.5 2.5 9

5S010 Kkiosk 1 1 5 2.500-2.750 Left 1 2.5 3 8 100 2.5 2.5 3 3 8

Total: 27 34 341 287

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45. The impacted 27 businesses comprise a total of 287 m² of buildings, including brick (148m²), metal (67m²), wood (50 m²) and concrete (22 m²) construction materials. The metal structures that are kiosks can be physically relocated to the new locations while the other structures will have to be demolished and compensated.

Table 5. Type of construction

Type No. of structures Area (m²)

Age (%)

Concrete 2 22 8 Wooden 6 50 17 Metal (kiosks) 8 67 23 Brick 11 148 52 Total 27 287 100 46. Most of the businesses will have permanent and full impact and their structures shall be demolished. Of total 27 businesses, 5 will have partial impact of less than 10%, 3 will be impacted up to 25%, and 19 shall be demolished fully due to permanent land impact and can be relocated elsewhere as decided by the stakeholders and affected persons during negotiations and finalization of LARP. Details are given in Table 6.

Table 6. Intensity of impact

Intensity of Impact % Number of structures Age of total structures

(%) 100 19 70.4 <25 3 11.1 < 10 5 18.5 Total 27 100.0 47. 12 of the surveyed affected persons claim that they own/or have possession right to the impacted land (Table 7). The data about the ownership is unavailable for other plots at the feasibility study stage and will be pursued and verified for all affected persons during the LARP finalization and implementation.

Table 7. Land ownership13

Type No. of APs Owned/licensed 12 Possessed No data Non-titled occupation, legalizable No data Total 12 13 According to surveyed affected persons (to be validated by the LAD during finalization of LARP; mostly located in

right-of-way).

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IV. SOCIOECONOMIC INFORMATION AND PROFILE

4.1. General 48. Population. The population of Ulaanbaatar has been increasing rapidly from 0.78 million (Mongolia: 2.40 million) in 2000 to 1.08 million (Mongolia: 2.67 million) in 2008 with an average annual growth rate of 2.8%. This rapid increase of population is chiefly due to a rapid migration from rural area to urban area. The average number of population migrated in the past 10 years is estimated at around 20,000 per year which cause the expansion of ger area surrounding the apartment area of Ulaanbaatar. At present Ulaanbaatar accounts for 40% of the total population of Mongolia. The projected urban population of 2030 is 1.87 million or 1.7 times larger than the population in 2008. 49. Unemployment. According to the Mongolian Statistical Yearbook 2009, the „Registered Unemployment Rate‟ for Ulaanbaatar is 1.6%. However this is the rate of people that are officially registered unemployed. The book also provides an „unemployment rate‟ which is 14% for the city. 50. Poverty. The Mongolian Statistical Yearbook 2009 provides background data on poverty levels within the city. The Poverty Headcount Index is a widely used poverty measure, giving the percentage of the population whose consumption is below the poverty line ($1.25 a day). Ulaanbaatar poverty rate was 36.7% in 2009 compared to 38.7% nationally and over 49% in rural areas. This translates to an average household income of nearly MNT455,000 in urban areas, and MNT332,000 in rural areas. 51. Ethnicity. Ethnic Mongols account for about 85% of the population and consist of Khalkha and other groups, all distinguished primarily by dialects of the Mongol language. The other groups include Kazakhs, Russians, Uzbeks, Chinese, Koreans, and others. The Khalkha make up 90% of the ethnic Mongol population. The remaining 10% include Buryats, Durbet Mongols and others in the north and Dariganga Mongols in the east and other minorities. The ethnic groups are intermixed in Ulaanbaatar and there is no ethnic enclave. 52. Education. Mongolia ranks high among comparator countries in terms of education. In school year of 2009–2010, the enrollment ratio for primary and secondary education reached almost 100%, and the adult literacy rate has been maintained around 97%. Despite progress in increasing enrollment, Mongolia continues to face challenges across all levels in providing quality education and equitable access, upgrading the quality of teachers and staff, reforming curricula, rationalizing education facilities, and reducing financial barriers, particularly for vulnerable and disadvantaged groups. Dealing with growing internal migration from rural to urban areas has become a major challenge for efficient planning and management of education resources. In addition to Mongolia's challenges in basic education, there is a need to ensure that the higher education and technical and vocational education and training subsectors produce a sustainable and competitive workforce in terms of the creative and analytical skills required in Mongolia's move towards a knowledge-based economy as well as in global and regional markets. This includes the need for adult education and retraining. 53. Education and healthcare services in the project area. The project area includes a number of schools, hospitals and clinics, which are within the area of influence. This includes major hospitals such as the Cancer Hospital and Infectious Diseases Hospital. In addition the project area includes primary care centers which are located in each Khoroo or „sub-district. The

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project area also contains schools, colleges and universities. 54. Population details in project area. The Section 3 in north area includes 11th, 12th, 13th, 14th and 15th khoroos of Sukhbaatar district, 14th khoroo of Chingeltei district. Most of the affected businesses in the area are household entrepreneurs. Sukhbaatar district, 11th khoroo covers area from Ulzii center intersection to Shine zam intersection. The total population is estimated to be 10 thousand representing about 2 thousand households. Of total population, 7 thousand of them are adult above 16 years old and 3 thousand are children under 16 years old. Sukhbaatar district, 12th khoroo covers area from Shine zam intersection to 32 toirog intersection. Total population is about 7.6 thousand representing about 2 thousand households. Sukhbaatar district, 13th khoroo covers area from 32 toirog intersection to MT gas station. Total population is 8.6 thousand representing over 2 thousand households and almost 30% are single mother households. 500 are elderly people and 4 thousand are children under 18 years old. Chingeltei district, 14th khoroo covers from MT gas station to Tavan buudal bus terminal. Total population is over 8 thousand from 1.7 thousand households and 659 are old people, over 2 thousand are children under 18 years old and 164 are vulnerable people. Sukhbaatar district, 14th khoroo covers area from Zurgaan buudal to Doloon buudal bus terminal. Total population is 6.5 thousand from 1,6 thousand households and around 7% is single mother households. Elderly population is 450, children under age 18 is about 2 thousand. Sukhbaatar district, 15th khoroo covers end of Doloon buudal bus terminal and partially Section 2. Total population is about 5.7 thousand representing about 1.5 thousand. 218 (15%) are single mother households and 39 (2.7%) are single father households. 1200 are children under age 18, and almost 800 are elderly people. 55. The Section 5 in south area includes second and third khoroo of Khan–uul district. second khoroo has population of about 8 thousand representing about 2 thousand. Third khoroo has about 9 thousand population coming from about 2 thousand households. Almost 70% of the population of this section is old and vulnerable people. As shared during consultation meetings, this is because it is a suburb area with low transportation services and therefore the young people trend to leave it for the areas closer to the city. 56. Intersections in center of Ulaanbaatar include: 1) Ekh nyalkhas intersection is in western area of the city covered by 11th khoroo of Bayangol district. The khoroo has 6608 people in 1800 households; 2) Tasgan ovoo intersection and 3) Geser Temple intersection are located in central part of the city covered by 8th khoroo of Chingeltei district; Total population is about 5 thousand coming from over 1 thousand households; 4) 25th Drug store intersection is located in western part of the city covered by first khoroo of Bayangol district. Total population is over 12 thousand coming from about 3 thousand households; 5) Railway College intersection is located in western part of the city covered by 2nd khoroo of Bayangol district. Total population is over 7 thousands coming from about 1.5 thousand households. 550 older people and about 2 thousand children under age 18 live in it; 6) Ulzii center intersection is in central part of the city covered by 6th khoroo of Sukhbaatar district. Total population is over 6 thousands coming from 1.5 thousand households; 7) Wrestling palace intersection is in eastern part of the city covered by 6th and 15th khoroo of Bayanzurkh district. 6th khoroo has over 10 thousand people coming from over 2 thousand households and 15th khoroo has over 6 thousand people coming from 1.4 thousand households.

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4.2. Socioeconomic Details 57. Socio-economic survey was conducted in the project area to hopefully cover all affected households, but the complete data was collected for only 13 affected households out of the total 34 affected.14 Therefore, for the socioeconomic review given below, the complete data of those 13 households are applied (unless specified), which make 38% sample. The objective of the survey was to gather general information on socio-economic condition of the affected persons. The following paragraphs describe the various socioeconomic details of affected households based on the collected data. As presented in Table 8, all affected persons are Khalk ethnic group, which is the mainstream cultural group in Mongolian society.

Table 8. Ethnicity among the AP

Ethnicity group No. of HHs Age (%)

Khalk 13 100 Others - Total 13 100 58. Most of the affected persons count that they belong to Buddhism religion.

Table 9. Religious category

Item No. of HHs % age Buddist 11 84,6 Christian 1 7.7 Non-religion 1 7.7 Total 13 100 59. Most of the affected persons are literate with the secondary education (42%) and university or colleague education (42%) compared to about 5% illiterate.

Table 10. Education attainment of members of APs above 14 years old

Category Number of APs Age (%)

Illiterate 4 5 Primary 8 11 Secondary 30 42 College/University 30 42 Total: 72 100 60. Larger proportions of the affected persons are self-employed and involved in small trade and business (39%) and many are students (31%). Table 11 provides details.

14 A 100% complete survey of all affected persons/entities was attempted during feasibility study, but some of them

were always unavailable and non-responsive.

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Table 11. Employment status among the working age members of AHs

Category No. of APs Age (%)

Employed/self-employed 28 39 Unemployed 10 14 Student 22 31 Pensioner 12 17 Total 72 100 61. Small business is the main contributor in average annual income of households (Table 12).

Table 12. Economic activities of household

Type of economic activity No. of HHs Age (%)

Small business 11 85 Wage employment 2 15 Total 13 100 62. Five of affected households (or 36%) reported having low annual income ranging between MNT840,000–3,300,000 and are poor (below poverty line of $1.25 per day15), 3 (21%) making annual income up to MNT9,000,000 and are over the poverty line, 5 (36%) reported making annual income up to MNT14,000,000 and are counted as middle income group. One household (7%) reported income of MNT18,000,000 and is counted wealthy compared to others (Table 13).

Table 13. Annual income

MNT No. of HHs Age (%)

840,000-<3, 300,000 5 36 <9,000,000 3 21 <14,000,000 5 36 <18,000,000 1 7 Total: 14 100 63. About 23% of households reported having monthly income in range of MNT210,000–400,000 compared to 15.4% making from MNT1,000,000 to 1,500,000 and another 15.4% making income from MNT 70,000 to 105,000.

15 Mongolia - European Community Strategy Paper 2007–2013.

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64. In total, average expenditure per household is estimated to about MNT 1 million of which, the major expenditure incurred for food (43.6%), followed by education (11.7%), clothing (10.7) and transportation (10.4%). Details about the expenditure are given in Table 15.

Table 15. Consumption pattern

Consumption pattern

Average annual expenditure

Total expenditure

(%) Food 4,050,000 43.6 Transportation 965,500 10.4 Clothing 997,440 10.7 Health 532,000 5.7 Education 1,039,500 11.2 Communication 412,500 4.4 Social functions - - Agriculture (such as seeds, hiring of farm implements etc.) - - Consumption of fuel for household 625,800 6.7 Electricity Bill 323,000 3.5 Others 342,000 3.7 Total 9,287,740 100.0 Total average 1,031,971

65. Possession of durable goods differs from each household depending on the nature of durable goods. About one quarter of people possess minimum household goods like televisions and refrigerator (23.5%), followed by washing machine (17.6%). Due to the nature of area and economic activities of the affected persons, no one has reported to be busy with agriculture production and/or posses the livestock (Table 16).

Table 16. Possession of durable goods

Item No. of HHs Age (%) Average possession

Radio 5 9.8 1.0 Bicycle - - -

Table 14. Monthly income

MNT No. of HHs Age (%)

70,000 - 105,000 2 15,3 105,000 - <150,000 1 7,6 150,000 - <210,000 2 15,4 210,000 - <400,000 3 23,1 400,000- <1,000,000 3 23,1 1,000,000 - <1,500,000 2 15,4 Total: 13 100

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Item No. of HHs Age (%) Average possession

TV 12 23.5 1.3 L.P.G. Connection/ Gas cylinder - - - Computer 6 11.8 1.2 Refigerator 12 23.5 1.2 Washing machine 9 17.6 1.1 Motorcycle 1 2.0 1.0 Car 2 3.9 1.0 Air conditioner 4 7.8 1.3 Large animals - -

66. Most of the households in the project affected area use credit. 11 of 12 households stated that they availed loan from different sources for various needs. The average amount of loan estimated to MNT3,800,000, that is over 100% of annual income of the poor group of the surveyed affected households, or about 27% of annual income of the surveyed households with middle income (< MNT14,000,000). The average interest rate reported is estimated to 5.61% per month that is deemed to be high. Details are given in Table 17.

Table 17. Indebtness

Indebtedness

No. of

HHs Age (%)

Average amount of loan

Average amount repaid as of Aug 2011

Average interest fee/month

Yes 11 92 3,800,000 1,119,000 5.61% No 1 8 Total 12 100 67. As described in Table 18, majority of loans are availed from the banks (61.6%) but the private money lender also deemed to be a significant loan source (30.7%).

Table 18. Sources of loan

Source No. of HHs Age (%)

Bank 8 61.6 Relatives 1 7.7 Private money lender 4 30.7 Total 13 100.0 68. Of 12 respondents, only one confirmed of availing assistance under the Development Scheme available in the area. The reasons reported mainly lack of information (50%) among the people in the area about such schemes and the complicated procedures and requirements of various documents (25%) by such a scheme for participation of interested people (Table 19).

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Table 19. Coverage to Development Scheme

Any benefit scheme available

No. of APs % Name of Scheme Amount Type of help

Yes, availed 1 8 Taiwan Foundation 50,000

Orphans grant

Not availed 11 92

if No, why:

Required lots of documents 3 25

Lack of information 6 50

Not interested 2 17

69. Majority of households (85%) stated that they have access to the health centers. The average distance of the health centers from home is reported within 2 km (Table 20).

Table 20. Access to Health Center

Easy access to health Center No. of HHs Age (%)

Yes 11 85 No 2 15 Total 13 100

70. Majority of women in affected households are involved in small trade and business activities (Table 21).

Table 21. Type of women activities

Type of activity No. of HHs Age (%)

Trade and business 11 85 Other 2 15 Total 13 100

71. Of 12 respondents, 100% state that women have say and participate in decisions-making process in households (Table 22).

Table 22. Women status

Women say in decisions making No. of HHs Age (%)

Yes 12 100 No 0 0 Total 12 100

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72. Women‟s participation in discussions of different type of issues in households is also good (Table 23).

Table 23. Women participation in different type of issues

Issues No. of HHs Age (%)

Financial matters 11 92 Education of child 11 92 Health care of child 11 92 Purchase of assets 11 92 Day to day activities 12 100 On social functions and marriages 11 92 73. The major source of water is reported from the water-well. Of 13 surveyed households, 61.5% reported they use water from the well. 38.5% reported to have access to the piped-water supply.

Table 24. Source of drinking water

Source No. of HHs Age (%)

Piped-water supply 5 38,5 Sring - Well 8 61,5 Steam - - Others - Total 13 100 \ 74. Of 13 surveyed, 69% have reported of using latrine and 31% households reported to have flush toilets.

Table 25. Types of toilet

Type No. of HHs % Flush toilet 4 31 Latrine 9 69 Total: 13 100 75. Of 13 surveyed households, 77% have reported of having connection to easily accessible electricity power supply compared to 23% who did report about the lack of such as system.

Table 26. Connection to central power supply

Whether connected No. of HHs Age (%)

Yes 10 77 No 3 23 Total 13 100

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76. About 54% of surveyed households reported using electricity as fuel for heating and cooking, compared to 46% that use wood (Table 26).

Table 27. Fuel used for heating

Type No of HHs Age (%)

Electricity 7 54 Wood 6 46 Gas - - Diesel/Kerosene - - Solar - - Total 13 100 Note: No data about 2 HHs. 77. Of 13 surveyed households, all have access to the main roads, as the project relates to the main road corridor (Table 28).

Table 28. Access to Road

Whether connected to road No of HHs % Yes 13 100 No 0 0 Highways 13 100 Total 16 100

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V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 78. Affected persons must be fully informed, closely consulted, and encouraged to participate in any decision-making pertinent to land acquisition and resettlement, including the final design of road improvements, preparation of contractual agreements and determination of compensation for affected assets, restoration of livelihoods, selection of replacement plots and/or housing, if the latter will be required. Disclosure of LAR information and consultation with the affected persons at an early stage ensures that they can express their opinions, apprehensions and objections. Project proponents, including government stakeholders, can address the issues raised and, upon careful consideration, incorporate them in the final design and LARP. Thereby, delays in implementation due to unforeseen conflict can be avoided or minimized. 79. The public meetings and discussions, as well as individual consultations were held at the time of resettlement surveys, including assets inventory and socioeconomic survey of affected persons during the feasibility stage in August and September 2011. Community consultation meetings held in 2nd and 3rd Khoroo of Khan-uul district and focus group discussions held by resettlement specialist and social development consultants in 20 Khoroos of 4 districts covering the project area. These events involved both men and women participants. The key compensation and entitlements principles of draft LARP and grievance redress mechanism were discussed with potentially affected persons. 80. The main issues raised in meetings were concerns about LAR impacts and road safety, including the performance of the drivers and lack of safety facilities in the roads. Although, in general everyone welcomed the project, many of the shop owners, particular in Section 3, expressed concerns about the LAR, which will affect their road businesses. The shops to be impacted are located in the Section 3 along the main road. This group of affected persons asked for considering in final design avoiding the impact to their businesses. Some disputed the necessity of widening the road anymore, particularly in Section 3) in chainage 1.750–2.000 km since according to some of the shop owners, their shop (a shop 3S016 that is owned by eight relatives) were impacted (i, e. removed back for two-three meters) in road widening in 2009 and they have not received compensation. They were non-responsive in resettlement survey and investigations taken during feasibility study. The project components and its benefits were highlighted during the meetings. In Section 5, the affected persons/vendors with small kiosks welcomed the project and were more positive because they find the kiosk business low profitable. Most of them are willing to give up the kiosks and find longer-term employment in any organization or project, with a monthly wage at least of equivalent to $100. In case of shortage of longer-term employment, they asked for considering relocation of their kiosks within a new bus stations since getting permission for licensing a kiosk is not an easy process. This has been discussed with the relevant officials. Such a decision requires a process and consideration of other factors, including the final design. The request about allocation of kiosks for concerned affected persons within new bus stations is being considered and as feasible will be included in detail design. MUB will assist the concerned affected persons in licensing their kiosks; the specific plans will be agreed and included in the final LARP prior to the implementation of LAR and civil works. 81. Particular concern was about the safety of pedestrians and houses adjacent to the road, and prioritization of convenience and safety measures for children, elderly and disabled. The people from Section 3 particularly expressed concerns and requested to put the strong crash barriers in most segments of the road in-between the roadway and pedestrian paths (particular

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in area nearby MT Gas Station), not only for the safety of pedestrian, but particularly for the protection of residential area. In right side, along the road for more than two kilometers, the residential area is located adjacent to and below the road grade. According to the people, accidents happened when the drivers lost control over vehicles, which dropped into the yard and houses of people, particularly at night. Now if the road will be widened by the project, the risks of such accidents can increase due to bringing the roadway closer to the residential area, unless the strong crash barriers will be installed (see photo 21–23 in Annex 2). 82. Reportedly, number of houses near to the MT Gas Station already suffers from the flooding (in Rashaant Street) which are located in the discharge area of the storm water canal. These houses may need to be resettled if the discharge to this canal increases due to the Project. At present, this is not considered necessary but it will be reassessed during the design stages. 83. During site screenings in August/September 2011 it was noticed that some of the residents in Section 3 are altering their structures and/or moving their compounds inside the right-of-way, which is not permitted (see photos 16 and 17). This was discussed during the consultation and individual meetings and people were informed that they must stop such practices since this is illegal and will be demolished without compensation by the Department of Roads (DOR). Information about the project and notification of cut-off date for compensation of loss assets as of 15 September 2011 were disseminated in the project area (Section 3 and Section 5) through the local TV channel and newspaper and during resettlement surveys. In February/March 2012 when the decision was made to include the expansion of Peace Bridge into Tranche 1, the LAD and DOR were informed to give public notification as soon as possible. The public notification will be made upon completion of internal procedures between the MUB and the Urban Development Department and published through the local TV and newspaper. Most people expressed willingness to be involved in construction work, preparation of meals for construction workers and any other work. Khoroo officers stated that they can arrange involvement of unemployed people. Concerns were raised that this may cause corruption incentives for some officials for hiring only their “own people”, and unemployed people may be neglected. Therefore, the resettlement specialist of PIU will be overall responsible for making lists of the affected people eligible for any possible employment by the project and coordination of their employments with the contractor, Ulaanbaatar Labor Office and other stakeholders. 84. To provide more transparency in planning, active involvement of affected persons and other stakeholders, the project information will be disseminated through disclosure of the Project Proposal and resettlement planning documents. A draft resettlement information leaflet (Annex 4) in Mongolian language was distributed to the affected persons and households during consultations held in August and September 2011. PIU will keep affected persons informed about the impacts, provisions on compensation and assistance, grievance redress mechanism and disseminate resettlement information leaflet and other resettlement documents. After approval of the final LARP by ADB and GOM, LARP will again be disclosed on ADB‟s website and its Mongolian version will be disclosed to the affected persons and communities. The draft and final LARPs will also be made available at a place convenient to affected persons, including in the offices of local Khoroo Governors‟, PIU and websites of MUB and MTRCUD of Mongolia. Additional public and individual consultations and meetings will be held throughout of the LARP implementation as required by any rising issue, including (i) public meetings to inform communities about progress in implementation of resettlement,

social and environmental activities, the compensation and assistance to be paid, the date,

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time and venue of disbursement of compensation and other entitlements, clarification of questions raised during implementation of LAR tasks;

(ii) disclose all monitoring and evaluation reports of the resettlement components of the project in the same manner as that of the LARP;

(iii) extra efforts will be made to ensure that vulnerable groups understand the process and their entitlements; and

(iv) clarification of questions raised during these consultation meetings will be incorporated into the final LARP. The attendance sheets will be retained by PIU to document consultations. Individual consultations to prepare and conclude contractual agreements will be ongoing until all contracts are agreed and signed.

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VI. GRIEVANCE REDRESS MECHANISM 85. MUB will set up a GRM to support the affected persons on problems arising from land acquisition, demolition of structures and associated impacts. This will provide means by which the various conflicting stakeholders may be consulted and agreements reached, paying particular attention to the impacts on vulnerable groups. Affected persons will be informed and consulted about the detail process of the GRM during the public and individual consultations, interviews and through the disseminations of leaflets on LARP and LAR tasks. 86. According to the current practices, the Land Law (Article 60, „Settlement of Land Related Disputes‟) refers to the disputes over land issues. The article states that these issues shall be settled by the Khoroo Governor of the administrative units, and if not solved, the dispute shall be settled by an authority of higher level, or in the court. In addition, residents may also go directly to the District Land Officer. However, to facilitate the direct and immediate handling of grievance issues, PIU as implementer will be the initial recipient of the grievances for this LARP. 87. MUB will form a Resettlement Planning Implementation Committee (RPIC), comprised of the key government offices in the grievance redress process, including the Deputy Governor of MUB, the Governors of respective Districts and Khoroos, three representatives elected by affected persons and other stakeholders. More details about the RPIC are given in Section XII on Institutional Arrangements, in this LARP. The grievance redress process and steps are given below and displayed in Chart 1. Alternatively, the affected person may file a case in court of law of Mongolia at any time during the grievance review process.

6.1. Grievance Redress Steps

Step 1: To facilitate the direct handling of grievance issues, PIU as implementer will be the initial recipient of the grievance, establish complaint registry system and maintain records of all grievances and status of resolution. It will resolve minor issues directly or with assistance of local Khoroo. The PIU shall address the grievance within one week, inform the affected person and initiate actions. In case of unresolved/or major issues, they will be presented to RPIC at central level for deliberation and appropriate action. Step 2: RPIC, composed of MUB and other concerned offices, shall resolve the grievance within one month. Three representatives of the affected person, elected by the majority of affected persons will be involved and given opportunity to mediate in his/her favour. The RPIC will address the grievance and informs the affected person. Through the assistance of District Governor, RPIC proposes its resolution to the Citizens Representative Hural for approval and actions. . If the affected persons are still dissatisfied by the decision of the RPIC they can file their case with the court of law. 88. APs can also submit complaints to ADB which will be handled by the Project Team. If an AP is still not satisfied and believes they have been harmed due to non-compliance with ADB policy, they may submit a complaint to ADB‟s Office of Special Project Facility or Office of Compliance Review in accordance with ADB‟s Accountability Mechanism16.

16 Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to

solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism. For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

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89. A Grievance Action Form (GAF) will be used to cover the various aspects of LAR in the grievance redress process The GAF shall at minimum contain basic information about affected person (name, address, contact number, unless the case is confidential), category of grievance filed (legal, technical/engineering, social, financial, etc. detailed description of grievance and type of decision and action in the given level or referred to higher authorities (sample given in Annex 5).

Chart 1. Chart of Grievance Redress Steps

Affected Person

PIU

RPIC

Step 1

Step 2

Grievance addressed within one week

Grievance addressed within one month

Not addressed

Not addressed

Court of Law

AP may apply to court at any stage of process

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VII. RESETTLEMENT POLICY AND FRAMEWORK 90. The objective of this LARP is to stipulate all relevant entitlements, procedures and compensation, relocation and rehabilitation measures due to affected persons for 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. All provisions of this LARP are based on the applicable Mongolian Laws, ADB‟s Safeguard Policy Statement and agreed LARF.

7.1. Mongolia Legal Framework on Land Acquisition 91. The key Mongolian laws regulating access to ownership or possession of land and thereby land acquisition and attachments are: (i) The Land Law of Mongolia (2002), amendments 2003/04/05/06; (ii) The Law on Allocation of Land to Mongolian Citizens for Ownership (Land Allocation Law), 2003, amendments 2005/08; and (iii) The Civil Code of Mongolia, 2002. 92. According to Article 3 of the Land Law, there are three main ways to gain access to land, including ownership, possession, and usage: Section 3.1.2: “to own land” means to be in legitimate control of land with the right to dispose

of this land. This establishes private property land rights for Mongolian citizens without time limits. Land allocation and the size of plots are tied to specific uses, including family needs and commercial use, and land allocation must be included in land management plans of the respective administrative units. Family land is allocated once and for free; the size varies with the type administrative unit as well, being 0.07 hectare in Capital City and aimag urban areas and 0.35 hectares in aimag rural areas. Land for other uses may be allocated by government by auction and exchanged through commercial land sales to legal entities with ownership rights. Ownership rights must be registered in accordance with the Law on Registration of Property Ownership Rights and other related Rights.

Section 3.1.3: “to possess land” means to be in legitimate control of the land in accordance

with purpose of its use and terms and conditions specified in respective contracts (Mongolian citizens with a possession right can now apply for the right of ownership). In this case the State retains ownership of the land. Possession may be limited in time (15–60 years), and may be renewable for another 40 years. Households, government organizations and companies and organizations may possess land and size limits apply for specific contractually determined uses. Contracts for possession must be registered in the national registry.

Section 3.1.4: “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 are given to Mongolian citizens or to foreign countries, foreign legal entities, foreign citizens and stateless persons, diplomatic missions and consulates, as well as resident offices of international organizations for 5 years and are renewable for 5 years at a time. According to the Land Law, the certain form of entities, such as companies can only have possession rights whereas, Mongolian citizens can have

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ownership rights to the land, excluding pastureland, land for common tenure and land for the special State needs.

93. The Land Law indicates the authority of the various State institutions17 and officials18, fees, land management regulations, procedures for application for licenses, rights and privileges, duties, and sanctions, with respect to ownership, possession and use of land. The Land Allocation Law stipulates the specific regulations with respect to ownership of land. 94. Considering the comparatively recent institutionalization of the rights of possession and ownership in Mongolia in 2002 and 2003, respectively, some occupants of land are not yet legally recognized as possessors or owners, as they are not yet aware of the process of application, or are still financially unable of applying to become legal possessors or owners, or have not completed the procedures for other reasons. It is also common that the land they are now occupying or possessing is not yet included in the aimag‟s Land Management Plans as eligible for ownership. Some occupants of land who have made applications are waiting to be granted ownership or possession rights. In principle, the Land Law permits all of these occupants of land to apply for and be granted possession or ownership of the land, provided the land is designated as land for allocation by the government. 95. Mongolia does not have a dedicated and comprehensive land acquisition law as do some countries. Legal provisions regulating LAR must be derived mainly from the above mentioned laws, as well as from provisions in other specialized laws, such as the Law on Auto Roads or the Mongolian Law on Water Supply and Sewerage System Utilities of Cities and Settlements. The acquisition of land for use by the Project is constrained by the fact that in Mongolia the ability of the State to „take back land‟ through invoking eminent domain is restricted to „land for special needs of the State‟. Article 16 of the Land Law does not include municipal/urban roads, water supply and sewage networks or solid waste landfill sites among the special State needs. Article 32 of the Land Allocation Law includes among the special needs „to build roads, lines and networks and other objects of national scale‟ (32.1.3).19 Article 13 of the Land Law defines land under roads and networks as „land outside cities, villages and other urban settlements‟ (13.1). On the other hand, land of cities, villages and other urban settlements are defined in Article 12 of the Land Law to „include land under urban constructions and buildings … and urban common tenure land‟. Common tenure land includes „urban streets, squares, roads … waste disposal and cleaning sites and other similar areas‟ (12.1). Moreover, Article 3 of the Law on Auto Roads defines as national scale roads those which connect the capital city to aimag cities, aimag cities to aimag cities and aimag cities to border points and defines local scale roads as those which connect soums, districts, cities and urban settlements in the territory of the capital city and aimags (3.1.8). Consequently, urban roads, water supply and sewage facilities, district heating facilities and landfill sites will come under land of cities, villages and other urban settlements. Accordingly, the Project roads and other facilities are not of a national scale, so eminent domain cannot be used.

17 State Ikh Hural (state legislative body of Mongolia), Cabinet, State Central Administrative Authority in Charge of

Land Issues (presently the Ministry of Roads, Transport, Construction and Urban Development), Citizen‟s Representative Hurals (city/aimag and district legislative bodies), and Public Hurals (sub-district or Khoroo/Baghs legislative bodies).

18 Governors of Aimags (provinces), Governors of Soums (provincial districts), and Governors of Baghs (sub-districts of soums).

19 Numbering of articles of laws refers to the amended Land Law of 22 December 2006 and the amended Land Allocation Law of 22 May 2008.

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96. The matter of the applicability of the provisions for taking back land for special needs of the State in Articles 42 and 43 of the Land Law and Articles 32 and 37 of the Land Allocation Law has been subject to detailed discussions with the Director of the Construction, Housing and Public Utilities Policy Department of the MRTCUD, the Deputy Director of the Administration of Land Affairs, Construction, Geodesy and Cartography (ALACGC), the highest government organization in charge of land management), the Director of the Land Department of Ulaanbaatar and the Directors and staff of the District Land Administration Departments (LAD) in Chingeltei and Songino Khairkhan Districts of Ulaanbaatar. The consensus among these government officers is that the provisions of the above mentioned articles sanctioning the power of eminent domain for national scale projects (and thus including a one year waiting period between an initial agreement with affected landowners and the taking back of land) do not apply to the Project‟s local scale urban roads and other facilities. Instead, the acquisition of land needs to be achieved through agreements with affected land owners or possessors in accordance with the Civil Code of Mongolia.20 97. The provisions of the Civil Code (2002) provide a legal framework for land acquisition which place LAR for local scale infrastructure facilities, including roads, unequivocally in the context of negotiated land acquisition and resettlement, as this implies that the State or its legally appointed agents and affected persons engage with each other contractually as equal and autonomous legal persons and participants in a civil legal relationship (Article 1). Citizens and organizations, as well as aimags, the capital city, soums and districts are able to enter into civil legal relations with regard to objects of material and non-material wealth and their acquisition and possession (Articles 6, 7 and 8). Chapter 10 of the Civil Code defines property and assets, including land and other immovable property. Chapter 11 details provisions for their possession by legal acquisition and Chapter 12 for property ownership by individuals and other legal persons. The Civil Code in Article 101 provides general terms for the possession, use and disposal of property (further elaborated in Articles 109 to 112), but refers to the subsequently enacted Land Law and Land Allocation Law with regard to land ownership and possession. A number of special provisions pertaining to common property ownership (Article 108), common property of family members (Articles 126 and 128) and easements (servitude) (Article 151) may be relevant to specific cases in the Project. Chapter 15 has provisions on negotiated agreement on transfer of land. 98. In the Land Allocation Law the right of a landowner to dispose of owned land through sale „according to relevant procedures‟ (notarized contract) is guaranteed in Article 27. Possessors, according to Articles 35 and 38 of the Land Law, are also entitled to transfer their possession licenses via a notarized contract, but need to seek the approval of the governor of the soum or district. 99. The local practice of LAR among District or Soum and Khoroo or Bagh level land administration officers, sanctioned by the Directors of the Capital City or Aimag Land Administration Departments, does to some extent reflect the legal framework of the Civil Law based on contracts between autonomous legal persons, but also contains certain elements of involuntary land acquisition and resettlement. After identification of the required properties, affected persons are sent official notifications by the District Land Administration Departments,

20 Land Acquisition and Resettlement Framework: ADB Loan MON 2301: Urban Development Sector Project. After

consultation with their law departments, the ALACGAC and the Land Department of the Capital City of Ulaanbaatar provided letters confirming this interpretation of the legal context of LAR for the projects not of a national scale.

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often repeatedly, if no positive response to the government‟s claim to land is forthcoming21. Thereafter, negotiations about the terms of compensation take place with titled affected person (owners and possessors) and eventually a written agreement is reached. The land administration officers generally follow the Cabinet Resolution 103 of 13 April 2003, which determines land valuation tariffs (e.g., MNT 13,200 per m2 in the case of Ulaanbaatar ger areas) but apparently they need to use some flexibility in arriving at a final agreed rate with affected persons. Once at least 50 percent of the agreed compensation is paid, the land is acquired; when structures have been moved or land is vacated so construction works can commence, the remaining compensation is paid. Non-titled occupants of land are considered illegal land users and are evicted on the basis of Article 27.4 of the Land Law, which states that „possessing land without a valid license is prohibited‟. In practice, there can be flexibility in dealing with non-titled land possession to ensure affected persons are not seriously impacted.

7.2. The ADB’s Safeguard Policy Statement 100. The ADB‟s Safeguard Policy Statement22 sets out the following objectives for involuntary resettlement: (i) avoid involuntary resettlement whenever feasible, (ii) minimize involuntary resettlement by exploring project and design alternatives, (iii) enhance, or at least restore the livelihoods of all displaced persons in real terms relative to pre-project levels, and (iv) improve the standards of living of the displaced poor and other vulnerable groups. ADB defines the scope of involuntary resettlement as (i) physical displacement (relocation, loss of residential land, or loss of shelter); and (ii) economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of involuntary acquisition of land, or involuntary restrictions on land use or on access to legally designated parks and protected areas. The policy applies whether such losses and involuntary restrictions are full or partial, permanent or temporary. The Safeguard Policy Statement sets out the following policy principles for involuntary resettlement: (i) screen the project early on to identify past, present, and future involuntary resettlement

impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks;

(ii) carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons‟ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase;

(iii) improve, or at least restore, the livelihoods of all displaced persons through (a) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (b) prompt replacement of assets with access to assets of equal or higher

21 Sample of individual notification is given in Annex 6. 22 The specific policy requirements for involuntary resettlement are set out in Annex 2 of the SPS, referred to as SR 2.

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value, (c) prompt compensation at full replacement cost for assets that cannot be restored, and (d) additional revenues and services through benefit sharing schemes where possible;

(iv) provide physically and economically displaced persons with needed assistance, including the following: (a) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (b) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (c) civic infrastructure and community services, as required;

(v) improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing;

(vi) develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status;

(vii) ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets;

(viii) prepare a resettlement plan elaborating on displaced persons‟ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule;

(ix) disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders;

(x) conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project‟s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation;

(xi) pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation; and

(xii) monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

101. Table 30 outlines the key provisions of Mongolian laws and practices relevant to LAR and indicates their compatibility or inconsistency with ADB‟s Safeguard Policy Statement requirements.

Table 30: Comparison of LAR related provisions in Mongolian Law and ADB Safeguard

Policy Statement (2009)

LAR issues Provisions of Mongolian law ADB policy requirements Involuntary LAR

Invoking eminent domain is only legally recognized when taking back land for special needs of the State including roads, lines and networks and other

Eminent domain is generally recognized and subject to policy provisions aiming at avoiding and minimizing LAR and replacement of lost assets and

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objects of national scale (Land Allocation Law, Articles 32 and 37; Land Law, Articles 42 and 43). This law does not apply to this Project.

rehabilitation of livelihoods. APs to be at least as well off as without project (Safeguard Policy Statement, SR 2, para. 5). ADB recognizes the importance of negotiated settlement to „avoid expropriation and eliminate the need to use government authority to remove people forcibly‟ (Safeguard Policy Statement, IR safeguards policy principle 6; SR 2, para. 25). Such negotiated settlement minimizes the involuntary nature of resettlement and ensures meaningful consultation with the AP. The negotiated settlement is therefore limited to a mutually agreed price and compensation negotiation and the State still may invoke eminent domain and expropriate land. In that case ADB requires a full implementation of Safeguard Policy Statement .

Negotiated LAR

The Civil Code of Mongolia is the legal basis for contractual agreements on the transfer of land in the ROW from APs to the government (Chapter 15, Articles 1, 6, 7, 8, 109 and 112, among others).

Recognition of negotiated contract based land acquisition (negotiated settlement), where there is a willing buyer and a willing seller, which is verified and documented by an independent third party (Safeguard Policy Statement, SR 2, para. 25). However, ADB seeks to ensure that a negotiated settlement will offer adequate and fair price for land and/or other assets. The borrower/client will ensure that any negotiations with displaced persons openly address the risks of asymmetry of information and bargaining power of the parties involved in such transactions. For this purpose, the borrower/client will engage an independent external party to document the negotiation and settlement processes. In the absence of an eminent domain law in Mongolia, the Civil Code forms the legal basis for the land transfer and acquisition of non-land assets for this project. Although the Civil Code is based on a negotiated contract between the APs and the government, but the very fact that the government has to compulsorily acquire the piece of land and non-land assets that falls within the

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scope of the project triggers the ADB‟s Safeguard Policy Statement requirements.

Eligible APs Licensed owners, possessors and users of land can transfer their titles to other legal persons recognized under the Land Law (Articles 35 and 38) and the Land Allocation Law (Article 27). Non-titled occupants of land as illegal possessors are not eligible to transfer the land occupied or receive compensation (Land Law, Article 27.4). The Civil Code recognizes the right of a long term non-owner occupant of ownerless immovable property (incl. land) to own it after 15 years, if registered in the State register (104.2).

Lack of formal legal title to land by any APs shall not be impediment for provision of entitlements to such APs. Titled, legalizable, i.e. persons who have claims to land that are recognizable under national laws, and non-titled APs are eligible to receive different entitlements. Titled and legalizable APs are entitled to compensation and rehabilitation. Non-titled APs are entitled to livelihood restoration, but may also receive replacement land. Non-titled APs are eligible for entitlements such that they are no worse off than before the project. All APs are entitled to compensation at replacement cost of non-land assets (Safeguard Policy Statement, SR2, para. 7-8). APs without possession or ownership license but occupying land in areas designated for land allocation or possession can be recognized as legalizable and thus are eligible for fair compensation and rehabilitation entitlements under the Safeguard Policy Statement. People who illegally occupy the designated project LAR sites after the cut-off are not eligible for compensation, and may be evicted at their own cost.

Compensation for land

Contractually agreed payment for land transferred to the government. Local practice applies the government land valuation tariff (Cabinet Resolution 103, 2003), but negotiates with APs as well. Replacement land can be provided if AP‟s entire land or large part thereof is acquired.

Land compensation at replacement cost based on land valuation at fair market value, plus transaction costs, interest accrued, transition and restoration costs and other applicable payments (Safeguard Policy Statement, SR2, para. 10).

Compensation for structures

Contractually agreed payment for transfer of structures located on land acquired. The value of structures is determined at market rates, with depreciation deducted from gross value of the structure.

Valuation of structures is based on current market value, plus transaction costs, interest accrued, transition and restoration costs and other applicable payments, i.e. replacement cost of new construction of the structure without deduction of depreciation. APs can be permitted to salvage materials

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(Safeguard Policy Statement, SR2, para. 10).

Joint property ownership

The Civil Code recognizes common property ownership and family property rights (Articles 108, and 125-128). Common property ownership requires permission of other owners to dispose of part of the property (108.4). Family property includes „other properties accrued since the marriage, notwithstanding in which name of spouses or family members the property is registered‟ (126.2.4). Disposal of immovable (incl. land) family property requires mutual agreement (128.1) and certified written permission from an adult family member (128.2).

No conflict with the Safeguard Policy Statement. Joint signatures are encouraged.

Easement (property servitude)

Legal provision for easements or property servitude, allowing the use of another person‟s property for specific public or private purposes is permitted under local law; mutual agreement and payment of a fee are required (Civil Code, Article 151, Land Law, Article 48 and Land Allocation Law, Article 33).

No conflict with the Safeguard Policy Statement.

Rental of land or house

The Civil Code, Chapter 25 regulates the lease of property, including land and houses. If ownership is transferred the new owner incurs all rights and obligations of a lessor (Article 297). No provisions for lessee rights in case of land acquisition for a project, except that termination of a lease requires 3 months notice (Article 294.3).

Lessee is considered a non-titled AP and eligible to receive entitlements based on the type and degree of impacts.

Community and public resource losses

Affected community and public assets can be transferred through contractual agreement under the Civil Code. The cost of moving affected infrastructure is included in cost of civil works under the Project.

Common property resources or public structures and infrastructure affected by LAR are covered by the Safeguard Policy Statement provisions.

Income and livelihood rehabilitation

No provisions in contractual agreements for transfer of property.

Assistance for economic and social rehabilitation due to loss of jobs, incomes and livelihoods, including (i) income compensation or support for the period of interruption of business or employment, and (ii) priority employment in project civil works, especially to poor and vulnerable households. (Safeguard Policy

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Statement, SR 2, para. 12).

Relocation and transaction costs

The Mongolian Law on State Registration of Property Allocation Rights and Other Related Rights requires payment of registration duties and service fees for the registration of immovable property with the State Administrative Authority in Charge of State Registration of Property Rights (Article 9). All registration and other fees, as well as cost of relocation, are responsibility of parties to a contract and can be included in a contract.

Relocation and transfer expenses, including fees for the registration of properties and other administrative charges, are part of the replacement cost of lost assets and must be included in compensation (Safeguard Policy Statement, SR2, para 10).

Grievance procedure

The Land Law refers disputes over land to the governors of administrative units and eventually the courts (Article 60). The Civil Code and Land Allocation Law refer various types of disputes to the courts.

An adequate grievance redress mechanism for affected persons is required (Safeguard Policy Statement, SR2, para 29).

LARP information disclosure and public consultation

No provision for public consultation and information disclosure. In practice, all cases involve a period of negotiation.

APs are to be fully informed and closely consulted on compensation and resettlement options. Draft, final and revised LARPs are to be disclosed and discussed, as well as published on ADB‟s website (Safeguard Policy Statement, SR2, para 26-27).

Cut-off date Not applicable An eligibility cut-off date is to be set when the project is officially notified, the project area is delineated or the census of the AP population is taken, to prevent influx of non-eligible persons and land speculation (Safeguard Policy Statement, SR2, para 8).

Right of way The Project road which is classified as State road has a right-of-way, owned and maintained by concerned government agencies. Temporary use of the ROW area is subject to approval of the concerned authorities.

No conflict with the Safeguard Policy Statement.

Notification period for vacating property to commence civil works

Time period for vacating a property may be defined in contract. Civil works commence in parallel with acquisition of property, but without defined waiting period.

Cash compensation and/or replacement of assets must be completed before displacement; LAR procedures must be completed and rehabilitation measures in place before commencement of civil works on the affected project (Safeguard Policy Statement, SR2, para 14).

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7.3. Gaps between ADB Policy and the legislation of Mongolia 102. The legislation of Mongolia and ADB policy diverges on some key points on LAR policies procedures. According to Mongolian legislation (i) Non-titled occupants of land (without ownership or possession license), including lessees

of land and structures, are not eligible for compensation and rehabilitation entitlements. (ii) Compensation for affected land is based on a government compensation tariff, not market

rates, although there is room for negotiation with individual affected persons. (iii) A depreciation coefficient is applied in the valuation of affected structures. (iv) Income and livelihood rehabilitation is not normally considered in local LAR practice. (v) Transaction and relocation costs are not included in compensation payments, though

there is room for negotiation and including in contract. (vi) There is no requirement to prepare a resettlement plan. (vii) There are no project internal grievance procedures preceding dispute resolution by

governors and the courts. (viii) Public consultation and information disclosure is not ensured or mandated. (ix) An eligibility cut-off date is not declared. (x) There is no limitation on commencement of civil works until after completion of all LAR

procedures. 103. In order to bridge the gap between Mongolian Law and ADB‟s Safeguard Policy Statement, the following section provides a policy framework and entitlement provisions, which integrate both.

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VIII. ELIGIBILITY AND ENTITLEMENT 104. To bridge the gap between Mongolian legislation and ADB‟s Safeguard Policy Statement, a range of detailed measures are determined below as legal and policy entitlement provisions. (i) The Project will adopt a LAR practice involving contractual agreements negotiated between the affected persons and the Ulaanbaatar Land Administration Department (LAD) on the basis of the Civil Code of Mongolia. The following safeguards will be observed: (a) All compensation and allowances will be determined and paid or provided as specified in the

contractual agreements23 prior to dispossession of land or assets. (b) The affected persons, regardless of whether they are titled or non-titled, will not be served

notices or demand letters regarding claims by the government to their properties. Instead, LAR related notification of affected person and negotiation of agreements will be carried out by the Project staff and their government partners24 in individual as well as in public consultations with the affected person.

(c) All agreements will be certified by a notary and registered with the State Administrative Authority in Charge of State Registration of Property Rights (SAACSRPR). The parties to the contracts will retain their own legal copies.

(d) Adequate grievance redress mechanisms will be established prior to the detailed design stage.

(e) Khoroo governors and land administrators shall assist in identifying, consulting, and formulating with affected persons and the Project staff special measures such as allocation of new plots, new housing and/or income restoration schemes for affected vulnerable persons.

(ii) All affected persons will be eligible for compensation and/or rehabilitation entitlements irrespective of their property status, including unlicensed occupants of land, and of the type of use of their property (residential, commercial, public or community); Non-titled persons with recognizable claims will be fully compensated for all losses including land, while non-titled persons without such claims will be compensated at least for all non-land assets and eligible for assistance. (iii) Unlicensed occupants of land in areas designated by GOM for past, present or future land allocation will be treated as legalizable affected persons and given ownership licenses for the remainder of partially affected land or, in the case of full loss of a plot of land, provided with replacement land and a license of ownership within 3 months of conclusion of a contractual agreement between the government and the affected persons. They will be registered with the SAACSRPR. (iv) Affected land will be compensated either at replacement cost based on market rates for comparable land or the applicable government compensation tariff, whichever is higher, or, in the case of full loss of a plot of land, with replacement land, including land preparation and restoration of utility services (electricity, water etc), as applicable. The Ulaanbaatar LAD will assist the affected persons to identify and approve the relocation plot. The loss of 50 percent or

23 If feasible and desired, the provision of employment in Project civil works to poor and vulnerable APs will be

included in contracts. 24 The key government partners are the officers of the Land Administration Department of Ulaanbaatar and of the

Property Relations Agency of Ulaanbaatar and other offices in charge of valuation of non-land immovable property.

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more of a plot is considered a full loss eligible for compensation for the entire plot, if the affected persons so desires. (v) Affected owners and/or possessors, in case of partial loss of less than 50 percent of their land, will transfer their license for the affected plot to the GOM and retain the owner or possessor license accordingly for the remaining plot. Their ownership or possession licenses will not be cancelled or subject to automatic expiration. In case of a full loss of land they will be provided with a replacement plot and ownership or possession licenses respectively with state registration. (vi) Affected users of land with use licenses will be provided with replacement plots in similar locations suitable to business operations and new use licenses (or with a license of ownership, as feasible and desired), within 3 months of conclusion of a contractual agreement between the government and the affected person. (vii) All affected persons agreeing to receive replacement land or affected persons with pending license approval for ownership or possession or affected persons with possession licenses seeking ownership status, will be provided with ownership licenses within 3 months of conclusion of a contractual agreement between the government and the affected persons and will be registered with the SAACSRPR. (viii) Affected structures25 will be compensated at replacement cost based on prevailing market rates for comparable types of structures without deduction of depreciation. Materials may also be salvaged by the affected persons for free. (ix) In cases of joint property ownership, the written notarized consent of the partners in a common property relationship or of an adult family member will be required. (x) Temporary impact within or outside the right-of-way due to construction disturbances will be handled through voluntary negotiated arrangements and compensated commensurate to the losses for the period of impact. (xi) All affected persons, including land lessees, shall be (b) compensated for their relocation costs, including assistance in transporting the ger (a lump sum shifting allowance will be paid to affected persons to cover transport costs on actual cost basis at current market rates; and (b) allocated a plot for possession or ownership26, based on applicable laws or provided cash refund at rental fee rate and proportionate to duration of remaining lease period, if a plot is not required. If an affected person is not eligible for ownership or possession, a license for land use will be given, as feasible. The compensation agreement with the affected person will stipulate the specific relocation plot (size and location). (xii) Loss of business income will be compensated to the owner in cash equivalent to the loss, i.e. for the period of interruption of business based on tax receipts/other valid documents or, if these are not available, based on the average net income of typical road businesses in project areas.

25 Including houses, fences, sheds, latrines, garages and other immovable structures built on affected land.

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(xiii) For permanent business loss, compensation shall include also any costs required for physical and financial re-establishment of business. If the business needs to be relocated, the following options will be provided to the APs: (a) government will provide replacement land/shop space prior to relocation; or (b) if an acceptable plot of land/space cannot be agreed upon, net income loss of 1 year will be paid and, in consultation with the APs, the replacement land/shop space will be provided within 1 year of displacement. (xiv) Temporary loss of employment income will be compensated for the period of interruption of employment; Permanent loss of employment will be compensated with cash indemnity 3 months wages for workers/employees that have been engaged for at least 1 year; otherwise entitlement is 1 month wage. The affected persons with permanent loss of employment are also entitled to (a) other labor benefits and retrenchment allowances according to the national labor law, (b) skills development trainings for new employment opportunities, and (c) assistance to find new employment. (xv) Vulnerable and poor households will also be provided with employment opportunities at commensurate skill levels by the Project as available.27 (xvi) All relocation, transfer and transaction expenses (fees and duties) will either be waived by government or included in the compensation paid to the affected persons. (xvii) The time periods between conclusions of a contractual agreement with at least 50 percent payment of compensation and the permanent acquisition of an affected asset will be determined as follows: (a) affected plot involving only the moving back of structures and acquisition of a portion of land,

without housing structures28 (residential or business): within 2 months; (b) replacement plot with ownership license for full acquisition of entire plot, without housing

structures: within 3 months; (c) acquisition of a partial plot with a housing structure, where the structure is to be rebuilt on the

remaining plot: within 5 months, and in any event before the affected persons are required to move;

(d) full acquisition of entire plot with housing structure, where the structure is to be rebuilt on a replacement plot: within 6 months, and in any event before the affected persons are required to move;

(e) lessees must be given 3 months notice of termination of their lease in accordance with the Civil Code; and

(f) temporarily affected plots or utilities will have impacts minimized and services restored in a timely manner (in few hours or days for minor affects, restoration of which in such short period technically is possible; in major and/or more complicated technical cases, all efforts shall be made to restore the services in possibly shorter period), or provided temporary services: at least 2 weeks‟ notice will be given.

(xviii) Civil works on the affected sections of the subprojects where LAR is required shall not commence unless all compensation, relocation and income restoration activities have been completed and cash assistance for loss of income has been paid. 27 If the required skills are not available, the contractor will provide basic training to the employed APs. 28 Small structures (other than houses) can be rebuilt within the time periods stipulated in contract.

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(xix) In accordance with the ADB‟s Safeguard Policy Statement and LARF of Investment Program, the design and implementation of the project will make every effort to avoid and minimize land acquisition and resettlement impacts, including temporary impacts during construction.29 105. All compensation and entitlements to all categories of eligible affected persons will be guided by the entitlement matrix shown in Table 31. Eligibility of an affected person to a combination of compensation measures and resettlement assistance will depend on the category to which he/she belongs including his/her social and economic vulnerability.

Table 31: Entitlement matrix

Type of Loss Specification Eligibility Compensation Entitlements Land (residential/ commercial/ public/ communal)

Partial loss of plot (<50%)

Owner, possessor30

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

Legalizable occupant of land

The AP may choose between the following alternatives: 1) Ownership license and state registration for

remaining land will be provided by government31; OR

1) 2) Cash compensation at market rates or the government compensation tariff, whichever is higher, based on contractual agreement; All taxes, registration and transfer costs are waived or included in compensation.

User Continuation of use license on the remaining land Full loss of plot (=>50%)

Owner, possessor

The AP may choose between the following alternatives: 1) Land for land compensation through provision of replacement plot of comparable size, value, location, and utility as lost plot; Ownership license and State registration; OR

29 In case of temporary disruption to services (local roads, water, electricity, telephone) these services will be restored

within 48 hours or temporary alternative solutions will be provided for these services during the time of construction impact.

30 If the remaining land is small and not feasible for operation according to its purpose, the AP may opt to receive a new replacement plot instead of cash compensation and will give up the entire old plot.

31 If unlicensed AP has occupied land more than legal allocation limit per person in urban areas, the surplus land, if any may be either owned and registered in the name of the family member or bought from the government at the government land tariff. A landowner already owning a legal allocation limit per person in urban areas may acquire the surplus as possessed land.

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2) Cash compensation at market rates or the government compensation tariff, whichever is higher, based on contractual agreement; All taxes, registration and transfer costs are waived or included in compensation.

Legalizable occupant of land losing all land occupied

The AP may choose between the following alternatives: 1) Land for land compensation through provision of replacement plot of comparable value and location as lost plot ; Ownership license and state registration; OR 2) Cash compensation at market rates or the government compensation tariff, whichever is higher, based on contractual agreement All taxes, registration and transfer costs are waived or included in compensation price.

User Replacement plot with use license; All taxes, registration and transfer costs are waived or included in compensation price.

Permanent removal of structures (residential/ commercial/ public/ communal)32

Moving back of fences

Owner, possessor, Legalizable occupant of land

The AP may choose between the following alternatives: 1) Cash compensation for relocation of fence at market rate without deduction of depreciation, based on contractual agreement; OR 2) Replacement/reconstruction of the fence by the Project owner/contractor; Salvaged materials will not be included in the replacement value and can be used by APs for free.

Alteration to structure

Owner, possessor, Legalizable occupant of land

Cash compensation for lost part of structure and reconstruction of remaining structure at market rate without deduction of depreciation, based on contractual agreement; Salvaged materials will not be included in the replacement value and can be used by APs for free.

32„ Residential‟ refers to any structure used as a private dwelling, including houses and gers. “Commercial‟ refers to

any structure used for business and manufacturing activities, including small shops, factories, offices, and workshops/garages.

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Full loss of structure and/ or relocation

Owner, possessor, Legalizable occupant of land

Cash compensation for relocation/ replacement of lost structure at market rate without deduction of depreciation, based on contractual agreement; Salvaged materials will not be included in the replacement value and can be used by APs for free.

Moving or relocation of ger

Owner, possessor, Legalizable occupant of land, lessee

Cash compensation for cost of taking down and raising of ger and for transport, as applicable; to be included in contractual agreement; Salvaged materials will not be included in the replacement value and can be used by APs for free.

Moving or relocation of containers (metal kiosks)

Owner, possessor, Legalizable occupant of land, lessee

Cash compensation for cost of relocating container outside the ROW, including costs of emptying and restocking container; to be included in contractual agreement; Salvaged materials will not be included in the replacement value and can be used by APs for free.

Temporary disturbance

Removal of fence, civil works on land outside ROW,

Owner, possessor, legalizable occupant of land

Cash compensation fee stipulated in agreement on temporary loss; Public services will be maintained or temporary provisions made until they are restored; Safe access to land and residences is ensured; Restoration of land and fences by civil works contractor.

Business loss

Temporary business loss due to LAR or construction activities by Project

All entities so affected

Cash compensation equal to net income losses during interruption period to be included in contractual agreement; Wages of employees to be compensated directly during interruption period.

Permanent business loss

All entities so affected

Compensation shall include also any costs required for physical and financial re-establishment of business. If the business needs to be relocated, the following options will be provided to the APs: (a) government will provide replacement land/shop space prior to relocation; or (b) if an acceptable plot of land/space cannot be agreed upon, net income loss of 1 year will be paid and, in consultation with the APs, the replacement land/shop space will be provided within 1 year of displacement

Employment loss

Temporary employment

All employees

Cash compensation for lost wages for the period of interruption of employment; to be included in

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loss due to LAR or construction activities

so affected contractual agreements between employer and the project33.

Permanent loss of employment

All employees so affected

Cash indemnity of 3 months wages for permanent impact 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; Skills development trainings and assistance to arrange new employment.

Relocation Transport/ transition costs

All APs or entities to be relocated

Provision of allowances to cover transport costs of moveable assets on actual cost basis at current market rates; to be included in contractual agreement; Assistance with permanent and/or transitional relocation (if required), including in finding an alternative plot, or a comparable house to rent, as applicable.

Vulnerable and/or severely AP34

Permanent loss of livelihood

All vulnerable and/or severely APs so affected

Preferential employment in project-related workforce, if available and desired by APs; Employment training (3-6 months); Cash assistance up to a maximum of six months at guaranteed lowest living level and assistance in reconstitution of business or employment.

Loss of land All vulnerable and/or severely APs so affected

Assistance with selecting a replacement plot and with preparation of contracts and administrative process of provisions of replacement plot .

Loss of structure

All vulnerable and/or severely APs so affected

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

Livelihood support

Any HH member of a vulnerable AP

Preferential treatment for temporary employment during construction; Employment training (3-6 months).

Temporary All vulnerable Preferential treatment to avoid, minimize or mitigate

33 The contract will stipulate the continuation of wage or salary payments by the employer to the employees. This will

be monitored by the PIU and external project monitors. 34 Vulnerable groups are distinct groups of people (poor, elderly, disabled, and female headed households) who may

suffer disproportionally from resettlement. In this LARP severely AP/Hs include also those who experienced cumulative impacts due to previous road widening in 2009.

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disturbance APs so affected

as quickly as possible.

Loss of crop All APs/ entities so affected

Compensation at market rate of the harvested crop.

Loss of trees All APs/ entities so affected

Cash compensation for trees based on volume of wood; for fruit trees based on the net annual income from the tree(s) for the number of years taken for replacement tree(s) to reach comparable production; and the cost for growing the replacement trees (e.g. seedling and growth management);

Public utilities:

All APs/ entities so affected

Compensated based on replacement cost of restoring the same level of services;

Unidentified losses

Unanticipated impacts

All affected entities

To be identified during project implementation; measures will be formulated as appropriate according to ADB policy and reported to ADB prior to implementation; contingency will be included in LARP budget to cover unanticipated expenses.

106. Compensation eligibility is limited by a cut-off date set as of 15 September 2011 on the completion day of the preliminary impacts assessment and survey of affected persons in Section 3 and Section 5. The public notification on area of Peace Bridge will be made by end of May 2012. All affected persons settling in affected areas after that date or existing affected persons who alter their assets and who cannot prove that they are the rightful owners/users of affected plots will not be eligible for compensation.35 The following groups of affected persons are eligible for compensation or rehabilitation under this LARP: (i) all affected persons loosing land either with ownership/possession rights, legal lease,

formal or customary deed, or traditional land right or without legal status; (ii) tenants and shareholders, wage laborer whether registered or not; (iii) owners of buildings, crops, plants, or other objects attached to the land (including those

with no legal rights to the land); and (iv) affected persons losing business, income, and/or salaries.

8.1. Methods for Defining the Replacement Value

107. All affected assets will be compensated at replacement cost based on market value for comparable assets estimated by the valuation team including resettlement specialist, valuation specialists of PRA and LAD of Ulaanbaatar, and representative of affected entities, and agreed with affected persons. The PIU is responsible for follow-up and facilitation of the processes for estimation of the replacement values for land and non-land assets and losses.36

35 However, any affected persons not covered in the census enumerations can be enlisted with sufficient proof of

existence at the said location before the cut-off date, or in exceptional cases based on practice in Mongolia. 36 In case of disagreements‟ over the compensation rates during the negotiation process with APs, the PIU can

engage an independent private valuation specialist and re-assess the compensation rates offered to the APs and disclose the results to the APs.

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Land. Affected land will be compensated at replacement market value determined by undertaking a land market survey with the objective of ascertaining prevailing market values (influenced by various factors such as location of land, advantages for business, connectivity, and classification/land use, type of soil, crops grown, available irrigation and other facilities, and other plus and minus points such as frontage to road, proximity to developed areas, regularity of shape, unevenness of land), or the applicable government compensation tariff, whichever is higher.

Houses, structures, and buildings. They will be compensated at replacement value based

on prevailing market rates for comparable types of structures free of depreciation, transaction costs and value of salvage materials, which can be used by affected households for free.

Temporary business loss. Cash compensation equal to net income losses during

interruption period to be included in contractual agreement, defined based on tax receipts/other valid documents or, if these are not available, based on the average net income of typical road businesses in project areas as estimated by the survey undertaken by valuation team including resettlement specialists and staff of PIU, members of PRIC and representative of the affected persons, or based on the maximum official non-taxable salary.

Permanent business loss. For permanent business loss, compensation shall include also

any costs required for physical and financial re-establishment of business. If the business needs to be relocated, the following options will be provided to the affected persons: (a) government will provide replacement land/shop space prior to relocation; or (b) if an acceptable plot of land/space cannot be agreed upon, net income loss of 1 year will be paid and, in consultation with the affected persons: the replacement land/shop space will be provided within 1 year of displacement.

Income losses for workers/employees. Indemnity for lost wages for the period of business

interruption. Cash indemnity of 3 months wages for permanent impact for workers/employees that have been engaged for at least 1 year; otherwise entitlement is 1 month wage; All employees/workers so affected entitled also for (a) other labor benefits and retrenchment allowances according to the national labor law, and (b) skills development trainings and assistance to arrange new employment.

Public utilities. Compensated based on replacement cost of restoring the same level of

services. Loss of trees.37 Cash compensation for trees based (a) on volume of wood and for fruit

trees based on the net annual income from the tree(s) for the number of years taken for replacement tree(s) to reach comparable production; and (b) the cost for growing the replacement trees (e.g. seedling and growth management).

Loss of crops. Crops will be compensated at market rate of the harvested crop.

108. Estimated basis of compensation negotiation for key items are given in Table 32 which are based on current practice in Ulaanbaatar (e.g., the compensation rates applied in Botanic- 37 There are no trees or crops within the land of affected entities to be impacted at the proposed project locations.

However, in the event of any such impact during the project implementation, the compensation principle is envisaged.

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Sharkhand Road Improvement Project - see Annex 7). It will be reviewed and finalized during LARP finalization based on replacement costs estimated through assessment and market value surveys of comparable assets conducted by the valuation team. In addition, the costs related to physical relocation of a displaced business and/or re-establishment of business after disruption and other assets, plus all related transaction costs or fees will be included in compensation agreements. More details about the bases of compensation rates are provided in Section XI of this LARP.

Table 32. Estimated basis for compensation negotiation Asset type Unit rate38 Unit MNT USD 1. Land (replacement plot) Commercial 21600 17.1 m² 2. Structures Concrete structure (shop, kiosk) 188000 148.7 m³ Wooden structure (kiosk) 50000 39.6 m³ Brick structure (shops) 260000 205.7 m³ 3. Business Losses Temporary 108000 85.4 month Permanent 190000 150.3 month

38 These unit rates are preliminary and only used to estimate the budget.

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IX. RELOCATION OF HOUSING AND BUSINESSES 109. The project will create linear impacts along the existing road. The impact will be to the businesses established along the road, many of them within right-of-way. Based on initial design (of feasibility study phase) and resettlement surveys, no impact is anticipated to houses and residential land39, therefore, relocation of housing will not be required in Tranche 1. If it will be required by the final design, MUB will provide affected persons with relocation assistance, registration and secured tenure to new land plots (for eligible affected persons40), equal or better housing at resettlement sites, and civic infrastructure and community services as required. As feasible, affected persons will remain in near locality to their current land, so that they retain their system of social capital. Preference will be given to land-based resettlement strategies, for affected persons whose livelihoods are land-based. The strategies may include resettlement on public land, or on private land purchased for resettlement. Whenever replacement land is offered, affected persons are provided with land for which a combination of productive/livelihood potential, location advantages, and other factors at least are equivalent to the advantages of the land taken. The affected persons will be actively involved in the planning and consideration of potential alternatives for relocation. This can be facilitated through the extensive public consultation process and focus group discussions with the affected communities. 110. Based on resettlement surveys, of total 27 impacted businesses, 19 will experience full and permanent impact and have to be demolished. The latter can be relocated to new sites as will be decided by the government stakeholders and affected persons. The affected persons will be eligible for cash compensation and relocation costs for the lost assets and income (according to Entitlement Matrix) to help them during the transition period and in transporting their possessions to a new location. The remaining 8 businesses have enough land to carry out activities upon repairing/reconstruction of their shops due to partial LAR impact and do not need relocation. Among the 19 to be relocated, 17 are kiosks (of which 8 are metal containers) located in the right-of-way. The request of affected persons for relocation of their kiosks in new bus stops is being considered by MUB and will be confirmed as applicable based on detailed design and final assessment of impacts and census. The relocation sites for the food shops and other vendors are not decided yet too, but where appropriate, it is considered that they will be relocated in nearby areas. This is an ongoing process which will be confirmed during project implementation with involvement and coordination of the concerned government departments and stakeholders with assistance of the PIU and resettlement specialists. 111. No impact is anticipated in cultural and community structures. If this happens, these structures and public utilities will be fully replaced or rehabilitated within 3–6 months so as to satisfy their pre-project functions. In the case of community infrastructures for elderly, disabled or children, additional safety measures will be put in place. In a case of impacts on facilities such as water channels, telephone cables and so on, the project will ensure that these facilities diverted as applicable and rehabilitated to previous standards as soon as possible. Prior to disruption, temporary lines will be provided to ensure no loss of services. During the final design, further opportunities for minimizing land acquisition and resettlement impacts will be worked out, and the resettlement plan will be finalized accordingly.

39 There are 4 two-storey houses close to the roadway in Section 3 but they can be avoided during the detailed

design. 40 Non-titled persons with recognizable claims will be fully compensated for all losses including land, while non-titled

persons without such claims will be compensated at least for all non-land assets and eligible for assistance.

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X. INCOME RESTORATION AND REHABILITATION 112. Affected persons are engaged in small commercial activities (small kiosks, food and wooden fuel shops) and will experience loss of business and income due to land impact and demolition of their shops and kiosks. Of total 27 impacted businesses, 19 will experience full permanent and 8 partial permanent impact (5 less than 10% and 3 up to 25%). The affected persons are eligible for assistance in reestablishing commercial activities elsewhere, compensation for net income lost during the transition period, the cost of transferring and reinstalling business equipment according to the entitlement matrix given in LARP. Relocation of kiosks into the new bus stations will be considered in detail design as applicable, so to allow the affected persons to proceed their businesses upon completion of construction. MUB will assist this group of affected persons with legal and administrative procedures on licensing kiosks in new sites. Additional measures shall be taken for restoration of income and livelihood of those affected, so that they can improve, or at least restore their income-earning capacity, production level and standards of living to pre-displacement level. The specific measures will be tailored to the needs, capabilities and preferences of affected persons, and the absorptive capacity of the local economy and shall be prepared prior to land acquisition and included in final LARP. 113. Employment in the project construction would be an added source of income in the income restoration processes. Affected persons whose livelihood is impacted by the project will get preference in jobs associated with the project‟s construction and implementation. The proposed BRT system can provide longer term employment opportunities to some of the affected persons or their household members based on their professional and educational background. Those who are unskilled if desired will be employed in civil works as feasible (e.g. construction, replanting the lost trees/planting new trees along the roads, restoring fences and water-storm drainages, or employment of their household members in BRT system according to their professional and educational background, and other project derived work, as applicable). Employment of the affected persons and/or their household members in some other establishments will also be pursued by PIU. 114. PIU will provide the affected persons with capacity building and skills development trainings. Based on the information collected from the partial census, the socio-economic surveys and assessment of demanded skills in local labor market and training needs of the affected persons (undertaken by PIU directly or with the service of consultant), the restoration strategies will be framed and activities planned in final LARP, including producing a list of possible income restoration options and required skills-sets. Based on these findings, PIU will arrange skills development training (e.g. house painting, carpentry, plumbing, food catering, hair-dressing, electricians and etc.) for affected persons and/or their household members. The costs of needs assessment and training of those affected shall be carried by project and are included in the LARP budget. 115. Additional assistance will be provided to vulnerable and/or the severely impacted households41 (including the shop owners‟ experienced cumulative impact due to earlier road widening in 2009). In case of full loss of livelihood source, vulnerable households will be provided additional cash assistance up to a maximum of six months at guaranteed lowest living level, assistance in reconstitution of businesses and given priority in project-related jobs. Vulnerable households and their needs will be further identified in the final census and specified in the final LARP. The resettlement specialist with support of PIU will prepare the list of 41 12 households identified based on partial census conducted during feasibility study (of 13 surveyed households).

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vulnerable persons. Subsequent consultations and measures for re-establishment and enhancement of their livelihoods shall be taken to safeguard against impoverishment and to reduce their vulnerability so they can be better off after the project. 116. MUB will ensure that no physical or economic displacement will occur until compensation at full replacement cost and other entitlements have been provided to each affected person and a comprehensive income and livelihood rehabilitation program, supported by an adequate budget, is in place to help affected persons to improve, or at least restore, their incomes and livelihoods.

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XI. RESETTLEMENT BUDGET AND FINANCE 117. The budget for implementation of this LARP is estimated to be MNT146 million, equivalent to about $115,000 (Table 33) and will be covered by MUB fund. Losses of land and structures will be based on replacement market value and will include transaction and relocation costs for each affected person. The estimated costs for lost assets are based on the rates of government departments and the current practices of other projects with LAR impact in Ulaanbaatar.42 This is preliminary estimation and will be finalized based on detail design, updated inventory of impacts, final census of affected persons and estimation of replacement values for lost assets based on the latest market value with facilitation of LAD and PRA. The land purchase rate of MNT21,600 per m² of land is used as basic rate for estimation. The cost for land compensation (cash or replacement plots) is included (though the businesses are mainly located within the right-of way43) based on two considerations: (i) flexibility will be pursued in dealing with the non-titled land users, e.g., allocation of replacement plots or stalls for kiosks and shops to ensure that affected persons will not be seriously impacted, and (ii) some kiosks have licenses for operations and shall be considered for allocation of replacement plots, to be decided by LAD during finalization of LARP. Transaction costs for these are included in the budget and will be updated by the officers of LAD, local notary and resettlement specialist of PIU. At this stage, the contract‟s value are deemed to be in range of MNT1 million to 10 million, therefore the rate MNT25, 000 as notary fee is applied.44 Relocation costs will be paid according to market rates for basic labor. The cost of administration is 10% of compensation and relocation costs (items 1 to 6 of budget table).

118. The 27 affected businesses structures will have permanent, partial or full impact and shall be altered or demolished, respectively. For effective rehabilitation of severe impact, the business owners are eligible for cash compensation equal to net income for duration of their business interruption caused by the project LAR tasks. A tentative cost for compensation of permanent business loss is included as one year net income (for budget estimation). The replacement costs for permanent business loss will be negotiated and shall include any costs required for physical and financial re-establishment of business. If the business needs to be relocated, the following options will be provided to the affected persons: (a) government will provide replacement land/shop space prior to relocation; or (b) if an acceptable plot of land/space cannot be agreed upon, net income loss of 1 year will be paid and, in consultation with the APs, the replacement land/shop space will be provided within 1 year of displacement. This shall be estimated during the LARP finalization and included in budget. The PIU with the support of other stakeholders, particularly MUB will facilitate the process and provide the eligible affected persons with the compensations and other assistance for restoration of their businesses within 6 months (including notarization and transaction procedures). In a case if it will take more time due to LAR activities (compensations, transactions) the compensation for income loss will be increased accordingly. At present, the cost of compensating and relocating 42 The compensation are estimated based on (i) valuation rates as of June 2011, given by valuations specialists of

PRA and LAD of Ulaanbaatar for the structures and land based on local market survey in Ulaanbaatar (provided for preparation of Resettlement Plan-Botanic-Sharkhand Road Improvement Project (ADB), and (ii) consultation with the stakeholders. These are the most recent and available rate and are applied in this budget for basic estimation. They will need adjustment in finalization of LARP. Annex 7 provides replacement rates for relevant items; copies from draft Resettlement Plan-Botanic-Sharkhand Road Improvement Project.

43 Article 27.4 of the Land Law in Mongolia states that „possessing land without a valid license is prohibited‟ and non-titled occupants of land are considered illegal land users and are evicted.

44 According to the current practice, the notary fees are charged depending on the value of contract as follows: MNT5,000 for contracts up to MNT1 mln. , MNT10,000 for contracts up to 10 mln., and MNT, 25,000 for contracts of MNT10 mln., and over.

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these businesses is estimated to be about MNT144 million, which includes administration cost, monitoring cost and contingency cost at 12% to cover unanticipated impacts and costs arising during LARP implementation. 119. The PIU will work with MUB, LAD, PRA, and other state agencies to manage the process of formal contractual agreements with the affected persons and disbursement of compensation. After having concluded contractual agreements about the transfer of affected assets from the affected person to the government, LAD will consolidate all financial commitments of the contracts and refer these to MUB. MUB will initiate the transfer of funds to the PIU. The PIU with the resettlement specialist (or NGO if applicable) will be responsible for delivery of entitlements to affected persons. Payment of at least 50%45 of compensation will be made at the time of signing agreement or within 1 month of the time of conclusion of contractual agreements. The remaining compensation and other entitlements will be provided at the time of vacating the affected assets. Disbursement of compensations and other cash allowances will be carried out in the Khoroo Governors‟ offices. No land will be acquired by the government or handed over to the PIU for commencing construction works without full payment of due compensations and provision of other entitlements, including provision of replacement plots or stalls to the affected persons as stipulated in the contracts. The budget includes costs for rehabilitation measures, capacity building assessments and skills development trainings for affected persons, and other registration and transaction costs.

Table 33. LAR Budget

Asset type No.

of AP Unit rate46 Unit No. of Units Cost Estimate

MNT USD MNT USD 1. Land (replacement plot)

Commercial 21600 17.1 m² 341 7,365,600 5827

Subtotal 7,365,600 5827 2. Structures 0

Concrete structure (shop, kiosk) 18800

0 148.

7 m³ 22 4,136,000 3272 Wooden structure (kiosk) 50000 39.6 m³ 50 2,500,000 1978

Brick structure (shops) 26000

0 205.

7 m³ 148 38,480,000 30443

Subtotal 45,116,000 35693 3. Business Losses 0

Temporary 13* 10800

0 85.4 months 13 1,404,000 1111

Permanent 14** 19000

0 150.

3 months 168 *** 31,920,000 25253

Subtotal: 33,324,000 26364 4. Relocation cost 0 Metal kiosks 50000 39.6 pcs 8 400,000 316 Wooden fence 9000 7.1 m² 10 90,000 71 Subtotal: 490,000 388

45 In exceptional cases 75% or more may be made in the case of alteration or construction of houses and other

structures, when the first payment of compensation proves insufficient, based on RPIC approval, to ensure timely completion of alterations or construction.

46 These unit rates are preliminary and only used to estimate the budget.

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5. Transaction costs 0

Notary fees (contracts up to MNT 1 million) 5000 4.0 contracts 0

Notary fees (contracts MNT 1 million to 10 million) 10000 7.9

contracts 22 **** 220,000 174

Notary fees (contracts MNT 10 million and over) 25000 19.8

contracts 0

Cadastral maps 35000 27.7 22 770,000 609 Service fee 2500 2.0 22 55,000 44 Property Rights Registration 8000 6.3 22 176,000 139 Subtotal 1,221,000 966 Subtotal of compensation measures 87,516,600 69238 6. Rehabilitation costs 0

Allowance for vulnerable or severely AH 12 10800

0 85.4 months 72 ****

* 7,776,000 6152

Capacity building assessments and skills development trainings Lump sum 10,120,000 8006 Subtotal 17,896,000 14158

Subtotal of 1 to 6 105,412,60

0 83396 7. Administration 10% of 1 to 6 10,541,260 8340

Subtotal of 1 to 7 115,953,86

0 91736

8. Contingencies 12% of 1 to 7

13.914.463 11.008

9. Monitoring and Evaluation Lump sum 16,000,000 12658

Grand total

145.868.323

115.402

*13 = 5 (partly affected structures) + 8 (metal kiosks to be relocated)

**14 (affected entities) = 27 (total) - 5 (partly affected) - 8 (metal kiosks relocated); 190000 MNT is applied as average monthly net income and may differ case to case based on claims and/or tax records of the APs;

*** 168 months = 14 affected entities * 12 months; **** 22 Affected entities that may need registration of property, including 3 with partial impacts (on property changes).

*****72=12* 6 months; MNT 108000 is minimum wage

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XII. INSTITUTIONAL ARRANGEMENTS 120. MUB is the executing agency of the IP and the DOR is the implementing agency (IA). MUB establishes the PIU, which will be responsible for the overall management, supervision and progress monitoring of Investment Program including the LARP preparation, finalization and implementation. The PIU will be staffed by full time specialist to handle all issues related to social and environment safeguards. Besides, the concerned governmental departments will play an instrumental role in implementation of IP and LARP. The LAD is responsible for allocation and registration of new land plots and any changes in the existing land parcels and estimation of replacement market value for taken land. The PRA is responsible for registration of property rights and independent evaluation47 of all affected assets based on the current market value. The RPIC will be established by MUB prior to the detailed design stage; this will ensure that key government institutions including local governments are involved and their coordination is ensured in finalizing this LARP and carrying out the LAR tasks. The institutional arrangement for LAR is shown in Chart 2.

12.1. Formation of Resettlement Plan Implementation Committee

121. MUB will form a RPIC, comprised of the key government offices in the grievance redress process, including the Deputy Governor of MUB, the Governors of respective Districts and Khoroos and other government departments, such as Ulaanbaatar LAD and PRA, and PIU staff, including resettlement specialists. The RPIC will also include the representatives of the affected persons/households, women affected persons and local NGOs, if available. The RPIC shall be formed prior to commencement of detail design. In this manner, it will be accessible for any disputes and concerns of affected persons raised during the design stage, final inventory of losses, detail measurement survey, census of affected persons, negotiation of compensation and project implementation. The RPIC will be assisted and supported by resettlement specialist of PIU for coordination of complaints, keeping track of their status and reporting the results to MUB and ADB. The PRIC ensures that key government institutions including local governments are involved and their coordination is ensured in carrying out the LAR tasks (Chart 2). Close coordination and commitment between all stakeholders will be facilitated by the participation of the following members in the RPIC: (i) Municipality of Ulaanbaatar, Deputy (Chairman); (ii) Governors of Khoroo (Vice Chairman for respective Khoroo); (iii) Resettlement Specialist of PIU (Member, Secretary); (iv) Representative from the DOR (Member); (v) Representative from the Ulaanbaatar PRA (Member); (vi) Representative from the Ulaanbaatar LAD (Member) (vii) Three representatives of the affected persons elected by majority of affected persons (Member); and (viii) Representative from a CBO or NGO (Member), if available. 122. The PIU will ensure compliance with assurances, including safeguards and preparation, finalization and implementation of this LARP. It will provide training workshops to the staff of

47 The replacement cost for the affected assets will be estimated by the market survey undertaken by a team

including the staff of PRA, the resettlement specialist and staff of PIU, members of PRIC and the representative of the APs.

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PIU, Khoroo and other government officials involved in LAR activities, including the members of RPIC, representatives of the affected persons and other stakeholders about the LARP provisions and implementation arrangements, as well as the principles and safeguards requirements of ADB resettlement policy, agreed LARF and legislation of Mongolia. The training will also highlight the differences between the provisions of the ADB‟s Safeguard Policy Statement and the Mongolian laws and explain how to ensure that the ADB‟s Safeguard Policy Statement requirements are met. The PIU will be responsible for adequate monitoring and supervision of the implementation of this LARP and the resulting impacts on affected persons, as well as for reporting the progress of LARP implementation to MUB and ADB.

Chart 2. Institutional Arrangement for LAR

ADB MUB/GoM MoF

UB LAD DOR

UB PRA

Affected Persons Khoroo (Local Government)

Independent Monitor

RPIC

Citizen Representatives‟ Hural

PIU

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XIII. IMPLEMENTATION SCHEDULE 123. This LARP is prepared based on preliminary design at feasibility study stage; the information it contains is preliminary and estimates only. During the detailed design, this LARP will be finalized based on a complete census, updated detailed measurement survey, latest replacement rates, and further consultation with and participation of affected persons. The time for implementation of this LARP shall be scheduled as per LAR procedures and integrated with the project civil works implementation schedules (i.e., LAR needs to be factored into Project schedule formulation). Key milestones will be established to ensure LAR is completed on time to prevent delay of civil works. All activities related to the land acquisition and resettlement must be planned to ensure that compensation and other entitlements are provided to affected persons prior to their displacement and to commencement of civil works. 124. Public consultation, internal monitoring and grievance redress will be undertaken throughout the project duration. Affected persons will have to be given at least three-month notice to vacate their property. In winter period affected persons cannot be relocated and civil works cannot commence. Table 34 provides a tentative implementation schedule indicating a timeline for LARP implementation activities.

Table 34: Tentative LARP implementation schedule

LAR Activities 2011 2012 2013 2014 2015 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

A. Draft LARP preparation

Initial survey and consultation meetings X

Notification of APs and cut off (3 months minimum) X

LARP drafting X Review draft LARP by ADB X

Endorsement of draft LARP by Government/Disclosure

X

B. LARP Update Establishment of RPIC X Establishment of project implementation arrangements (PIU)

X X X

Detailed Design X X X APs census, DMS, collection/verification of documents on affected assets and businesses

X X

Valuations, finalization of compensations X X

Final LARP approval/disclosure X X

C. LARP implementation Fund allocation for LARP X

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LAR Activities 2011 2012 2013 2014 2015 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Finalization of contractual agreements X

Payment of compensation to APs X

Resettlement and relocation/disposition of assets

X

Provision of new plot and rehabilitation X

Commencement of civil works X X X X X X X X

Ongoing consultations X X X X X X X X X X X X X X X X X Income restoration X X X X X X X X X Internal monitoring X X X X X X X X X X X External monitoring/evaluation X X X X

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XIV. MONITORING AND REPORTING 125. LAR tasks will have both internal and external monitoring and evaluation (M&E). The purpose of M&E is to provide feedback to all stakeholders on progress made in view of timely and comprehensive implementation of the LARP and to identify problems as early as possible to facilitate well-timed adjustment of implementation arrangements. The objectives are (i) to ensure that the standard of living of affected persons are restored or improved, (ii) to ascertain whether activities are progressing as per schedule and that timelines are being met, (iii) to assess if compensation and rehabilitation measures are sufficient, and (iv) to identify problems or potential problems and respond immediately to mitigate problems. LARP includes detailed procedures and indicators for internal and external monitoring and evaluation.

14.1. Internal Monitoring 126. Internal monitoring will be carried out routinely by the PIU either directly or through the services of resettlement consultant. The results will be communicated to ADB through the quarterly project implementation reports to report significant progress, implementation issues, or status of earlier identified problems. The objectives of internal monitoring and supervision will be to ensure (i) proper execution of responsibilities of key stakeholders48; (ii) protection of the rights of affected persons under Mongolian laws, ADB Safeguard Policy Statement, and agreed LARF and LARP; (iii) adequate and prompt payment of compensation; and (iv) an effective grievance redress. Specific monitoring indicators will include (i) information campaign and consultation with affected persons; (ii) status of land acquisition and payments of compensations for land, affected structures

and assets and other entitlements as per entitlement matrix; (iii) selection and allocation of replacement land or shop plots/stall; (iv) simely and effective grievance redress; (v) smplementation of livelihood restoration activities and monitoring its impact on the

economic status of the affected persons; and (vi) monitoring of relocation and resettlement activities. 127. The above information will be collected by PIU, which is responsible for monitoring the day-to-day resettlement activities of the project including through the following instruments: (i) verification of census information for all affected persons, (ii) consultation and informal interviews with affected persons, (iii) investigation of special issues such as the impacts and conditions of vulnerable groups or lengthy grievances, (iv) key informant interviews, and (v) community public meetings. The PIU is responsible for managing LAR implementation and taking actions to handle the day-to-day issues. At the end of tranche, the PIU will prepare a LARP completion report and submit to ADB.

14.2. External Monitoring 128. The main objective of external monitoring and evaluation is independent concurrent and ex-post evaluation of LAR in the Project as a whole to (i) assess the effectiveness, impact, and sustainability of LAR measures; (ii) determine whether safeguard compliance is being met; (iii)

48 MUB, Aimag Governments, DOR, Land Administration Department, Property Relations Agency, Citizens

Representative Khural of Capital City or Aimags as well as of Districts and Soums, District/Soum Governor, Khoroo/Bagh Governor, RPIC, PIU, CBO and NGO, AP representatives.

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assess the status of project affected vulnerable groups such as female-headed households, disabled/elderly, and families below the poverty line; (iv) recommend actions to improve or rectify LAR implementation; and (v) learn strategic lessons for future policy formulation and planning. The PIU is responsible for engaging an independent and qualified external monitor to investigate and assess LARP implementation. External monitoring will be carried out semi-annually during the implementation of LARP and its results will be reported to the MUB and ADB in semi-annual reports at the end of each input. The external monitoring process will include the following: (i) eview and verification of the internal monitoring reports of PIU; (ii) conduct of the socio-economic baseline and tracer survey49; (iii) identification and selection of impact indicators; (iv) impact assessment through quantitative and qualitative surveys, assessment of

relocation and rehabilitation measures, income and livelihood restoration, and improved living conditions;

(v) consultation with local stakeholders, officials, and community leaders; (vi) assessment of compliance with local laws, ADB's Safeguard Policy Statement, LARF,

and LARP; (vii) conduct vulnerable groups assessment; (viii) recommendation of LAR process modification and adaptation measures; (ix) all data collection and analysis will be gender disaggregated; and (x) assessment of the resettlement efficiency, effectiveness, impact, and sustainability; and

drawing lessons for future resettlement policy formulation and planning. Among the key indicators will be the following: (i) socioeconomic conditions of the affected persons in the post-resettlement period;

assessments of vulnerable groups; (ii) verification of actual losses and social impacts; (iii) quality of implementation, including business relocation and rehabilitation; (iv) communications and reactions from affected persons on entitlements, compensation,

options, alternative developments, and relocation timetables, etc.; (v) changes in housing conditions and income levels; (vi) implementation and effectiveness of assistance provided to vulnerable groups; (vii) rehabilitation of informal settlers; (viii) adequacy of property evaluations and compensation provided; (ix) grievance procedures and effectiveness; (x) timely and adequacy of compensation payments and provision of other entitlements; and (xi) level of satisfaction of affected persons in the post resettlement period. 129. The External Monitor (Monitor) will carry out a post-implementation evaluation(s) of the LARP about a year after completion of its implementation to ascertain if the objectives of the LARP have been attained or not. In case of a short-fall or remaining issues, the external Monitor will recommend remedial measures. The baseline of socioeconomic survey of severely affected persons conducted by the Monitor will be used to compare the pre- and post-project conditions. The Monitor will recommend appropriate supplemental assistance for the affected persons should the outcome of their evaluation show that the objectives of the LARP have not been

49 The Monitor should conduct further baseline investigations prior to commencement of resettlement; they may also

utilize socio-economic survey data collected during LARP preparation.

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attained. In such cases, a further round of monitoring and evaluation will be required to assure the actions were effective and to verify that LAR implementation has been completed successfully with no remaining problems. TORs for the Monitor is given in Annex 8.

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ANNEXURES

Annex 1: Designs and Photos of 7 Intersections Improvements in Tranche 1 No.4) Wresting Palace Intersection

No. 11) 25 drug store intersection (25-r emiin san In.) No.10) Railway college

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No.17) Geser temple intersection

No.26) Ulzi center (called also as Zamin Zamiin tsagdaa)

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No. 33) Ekh Nyalkhlas Hospital North side intersection

No. 28) Urbanek Intersection (or Tasgan ovoo)

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SOME PHOTOS OF INTERSECTIONS IN CENTER OF ULANBAATAR

1 2

3 4

5 6 7

25th emiin san intersection

Tasgan ovoo intersection

Railway college intersection

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8 9 10 11 12 13

Geser temple intersection

Ulzii center intersection

Wrestling palace intersection

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Annex 2. Designs and Photos of Sections 3, 5 and Peace Bridge in Tranche 1 Road Improvement for BRT in existed roads of Ulaanbaatar

Entire Route Map of North-South Axis, Ulaanbaatar

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Section 3 (L=4.0km)

Section 5 (L=3.6km)

75

Designs of road widening and renovation in 2 km of Section 3, northern half.

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77

78

79

Designs of road widening and renovation in Section 5

80

81

82

83

84

85

86

87

Designs of expansion of Peace Bridge in Selbe River

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Some of photos from Section 3: Most of the affected persons established business structures in right-of-way. During the site screening, it was noticed that some residents are altering/expanding the structures inside the right-of-way.

S3012

Photo 17: S3015

Photo 15: S3013

Photo 18: S016

Photo 19: S017

Photo 16: S3014 tion 3

Photo 14: S3008

S007

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Photo 21: Section 3 – right side

Photo 20 - right side

Photo 23: Section 3 – left side

Photo 24: Section 3 – left side

Photo 22: Section 3 – right side

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Some of photos from Section 5

Photo 26: S008

Photo 27: S009

Photo 25: 5 – Left side

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Some of photos of location in Peace Bridge

Photo 28: Arrow to Naran Motors (Plaza) (Right side, north part of bridge Photo 29: Arrow to store houses of municipality (Right side, north part

of bridge)

Photo 30: Petrovis Gas Station, about 40 meters away from the bridge (Right side, north part of bridge)

Photo 31: Truck containers under the cloth tent (tent looks like a building in air photo). The second arrow is to the structure that is part

(architectural) of the existing bridge now. (Left side, north part of bridge);

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Photo 34: Arrow to the structure that is part of the existing

bridge now. South Part of Bridge (Left side)

Photo 33: Left side of bridge. Arrow to the structure that is

part (architectural) of the existing bridge. Photo 32: Right side of bridge. Arrow to the structure that is

part (architectural) of the existing bridge.

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Annex 3. Public Notification of Cut-off Date: Section 3 (T1-A) and Section 5 (T1-B) (English follows in next page)

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Annex 3. Public Notification of Cut-off Date (English translation)

Public notification through "Daily News" Newspaper dated 16 September'2011, Friday №222 (3924)

According Mongolian government and parliament decision, by support and loan of ADB, there will be a road improvement project aimed to improve UB city road network, public transport and traffic management which will be implemented by Municipality of UB. Main purpose of the project is to improve service quality and safety of UB public transport main lines along vertical and horizontal lines. According to this project, in first phase road network will be implemented along vertical line and in second phase in horizontal lines. In framework of this project, kiosks located in bus stations in 2 and 3 khorooo territory of Khan-Uul district, some lands of citizens and entities located along road of 13 and 14 khoroo of Suckbaatar district and 14 khoroo of Chingeltei districts will be relocated. Therefore, we are warning citizens and entities not to build new settlement and new constructions of new structures in their owned, possessed land without permission. Newly constructed constructions and buildings which are not registered, will not be subject on resettlement agreement. Those constructions and lands owned and possessed by citizens and entities located in red line of the road limited areas, will be relocated or compensated according Mongolian related laws and regulations as well as according to ADB‟s resettlement policy of 2009. The low income affected persons may be considered for additional support. After 15 September, 2011 any new structures will not be eligible for compensation, relocation and rehabilitation assistance by the project area. Name of the concerned official organizations are Administration of UB Governor's office, Land Department of UB city and district land departments, Khoroo governors and Public Transportation Department of UB city. Note: This Public Notification on cut-off date also was announced by UBS TV channel.

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Annex 4. A Resettlement Information Leaflet Project Number: 39256- 01 Urban Transport Development Investment Program

Resettlement Information Leaflet

MON (39256): Urban Transport Development Investment Program

Prepared by the Municipal Government of Ulaanbaatar March 2012

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Municipal Government of Ulaanbaatar, Mongolia

MON (39256): Urban Transport Development Investment Program, Tranche 1

[Tranche 1 includes: (a) Chingiltei Av, L – 2 km, covered by Section 3; (b) North –Chingiz Av., L – 3.6 km, covered by Section 5; (c) 7 intersections: Wrestling Palace, Grand Plaza, Brau Haus, Ekh Nyakhlas

Hospital,Ulzi Center (also called Zamiin tsagdaa), Tasgaan ovoo (also called Urbanek), Railway College; and d) Expansion of Peace Bridge]

RESETTLEMENT PLAN INFORMATION LEAFLET

[Draft for Public Consultation, March 2012] I. Introduction

1. The Investment Program (IP) is partly financed by Asian Development Bank (ADB) through 3 tranches to improve the transport infrastructure and management in Ulaanbaatar and enhance the road safety. The IP aims to (i) improve road infrastructure bottlenecks to maximize the road network capacity; (ii) apply traffic management measures to increase traffic flow efficiency and safety; (iii) develop and implement parking, traffic, and travel demand management policies; (iv) develop a BRT-based public transport system; and (v) improve the public transport management and quality of services. These include physical improvements of existing public transport roads of the North –South and West – East Routes in Ulaanbaatar. The Municipality of Ulaanbaatar (MUB) is the executing agency for the IP. Tranche 1 has five components and the following three components have physical improvements provision and covered in this Information Leaflet and LARP for Tranche 1. 2. Component A: Intersection Improvement. This component will improve 7 road intersections in the center of Ulaanbaatar. Currently the intersections have poorly phased traffic lights, inadequate places for pedestrians to cross and congestion is caused by vehicles not having enough space to queue when turning. 3. Component B: Road Improvements. This component includes improvements of 5.6 km of major north-south road corridor in Ulaanbaatar: (i) Chingeltei Avenue (T1-A, 2.0 km of Section 3, northern part), and (ii) Chingis Avenue (T1-B, 3.6 km covered by Section 5)50. The “Red Line” for the road improvements and widening will be within the existing rights-of-way of the project roads. The road improvements will include road widening (26.5 meters width) improvement of surface, pedestrian facilities (sidewalks, road crossings, lighting), road safety features and storm-water drainage. This route will be used for constructing the BRT in Tranche 2.

4. Component C. Peace Bridge Expansion. The project plans to expand the Peace Bridge crossing the Selbe River and the central railway as a part of the North-South BRT route. The project plans to expand the Peace Bridge crossing the Selbe River and the central railway as a part of the North-South BRT route. The conceptual design proposes improvements of the existing two 2-lanes in each side of bridge roadway, and construction of a one-way connection ramp for each side of the existing bridge. The project area and preliminary designs of road improvements covered by Tranche 1 are illustrated in the figures given below.

50 The north-south road corridor is divided into six sections in design.

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Figure 1. Ulaanbaatar North- South Public Road Route

Figure 2. Section 3 (L=4.0km)

Figure 3. Section 5 (L=3.6km)

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Figure 4: Proposed Road cross-sections for T1-A and T1-B

Cross-section for T1-A

Cross-section for T1-B

Figure 5: Component C Design – Peace Bridge Expanding

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II. Impacts Summary 5. Based on initial assessment, some land, shops and businesses along the north-south and west-east road corridors in Ulaanbaatar will be impacted. This assessment is preliminary and may change based on detailed technical design. Any kind of constructions or alteration of the existing structures/properties along the mentioned road corridors should be stopped as they will be evicted and Department of Roads will not compensate for such losses made after notification date. III. Resettlement Policy and Principles 6. To fit the requirements of the ADB‟s Safeguard Policy Statement (2009)51 and legislation of Mongolia, MUB prepares a Land Acquisition Resettlement Plan (LARP) detailing the Project‟s impacts, compensation entitlements, mechanisms and procedures. This Information Leaflet summarizes the main points of the LARP. Its objective is to disclose the summarized information to the affected persons about the impacts of the project and entitlements stipulated in LARP for the effected people/entities. Following the approval of LARP by the MUB and ADB, it will be accessible in the offices of MUB, respective Khoroos and Project Implementation Unit (PIU). This draft leaflet in Mongolian language has been shared with affected persons during consultations and its updated version will be sent to all affected persons and communities. 7. The impacts caused by road rehabilitation will be compensated based on the laws of Mongolia and the requirements of ADB‟s Safeguard Policy Statement. The ADB‟s Safeguard Policy Statement52 sets out the following objectives for involuntary resettlement: (i) avoid involuntary resettlement whenever feasible; (ii) minimize involuntary resettlement by exploring project and design alternatives; (iii) enhance, or at least restore the livelihoods of all affected persons in real terms relative to pre-project levels; and (iv) improve the standards of living of the affected poor and other vulnerable groups. ADB defines the scope of involuntary resettlement as (i) physical displacement (relocation, loss of residential land, or loss of shelter); and (ii) economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of involuntary acquisition of land, or involuntary restrictions on land use or on access to legally designated parks and protected areas. The policy applies whether such losses and involuntary restrictions are full or partial, permanent or temporary. All Impacts will be compensated at replacement market value and severely affected or vulnerable affected persons will receive special rehabilitation allowances. IV. Compensation Eligibility and Entitlements 8. Affected persons/entities eligible to compensation or at least rehabilitation provisions are following: (i) all affected persons losing either land covered by legal title/legalizable land rights or

without legal status53; (ii) tenants and shareholders whether registered or not; (iii) owners of buildings, crops, plants, or other assets attached to the land; and (iv) affected persons losing business, income, and salaries. 51 See ADB‟s Safeguard Policy Statement –http//www.adb.org/site/safeguards/policy-statement 52 The specific policy requirements for involuntary resettlement are set out in Annex 2 of the SPS, referred to as SR 2. 53 Affected non-titled persons with recognizable claims will be fully compensated for all losses including land, while

non-titled persons without such claims will be compensated for all non-land assets and eligible for assistance.

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9. Compensation eligibility will be limited by a cut-off date as of 15 September 2011 for road Section 3 and Section 5. The public announcement on cut-off date has been made in Daily News" newspaper dated 16 September 2011, Friday №222 (3924) followed by announcement in UBS TV Channel. Public notification regarding in area of Peace Bridge expansion was made by end of May 2012. Affected persons/entities who settle in the affected areas after the cut-off date will not be eligible for compensation. Impacts/assets appeared/altered after this date will not be compensated. The payment of compensation and other entitlements to the eligible affected persons will be done by PIU that will be formed for the project under the MUB in due course. Compensation and other entitlements provisions for the affected persons are defined below in table.

Table 1: Entitlements Matrix

Type of Loss Specification Eligibility Compensation Entitlements Land (residential/ commercial/ public/ communal)

Partial loss of plot (<50%)

Owner, possessor54

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

Legalizable occupant of land

The AP may choose between the following alternatives: 1) Ownership license and state registration for remaining land will be provided by government55; OR

2) 2) Cash compensation at market rates or the government compensation tariff, whichever is higher, based on contractual agreement; All taxes, registration and transfer costs are waived or included in compensation.

User Continuation of use license on the remaining land Full loss of plot (=>50%)

Owner, possessor

The AP may choose between the following alternatives: 1) Land for land compensation through provision of replacement plot of comparable size, value, location, and utility as lost plot; Ownership license and State registration; OR 2) Cash compensation at market rates or the government compensation tariff, whichever is

54 If the remaining land is small and not feasible for operation according to its purpose, the AP may opt to receive a

new replacement plot instead of cash compensation and will give up the entire old plot. 55 If unlicensed AP has occupied land more than legal allocation limit per person in urban areas, the surplus land, if

any may be either owned and registered in the name of the family member or bought from the government at the government land tariff. A landowner already owning a legal allocation limit per person in urban areas may acquire the surplus as possessed land.

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higher, based on contractual agreement; All taxes, registration and transfer costs are waived or included in compensation.

Legalizable occupant of land losing all land occupied

The AP may choose between the following alternatives: 1) Land for land compensation through provision of replacement plot of comparable value and location as lost plot ; Ownership license and state registration; OR 2) Cash compensation at market rates or the government compensation tariff, whichever is higher, based on contractual agreement All taxes, registration and transfer costs are waived or included in compensation price.

User Replacement plot with use license; All taxes, registration and transfer costs are waived or included in compensation price.

Permanent removal of structures (residential/ commercial/ public/ communal)56

Moving back of fences

Owner, possessor, Legalizable occupant of land

The AP may choose between the following alternatives: 1) Cash compensation for relocation of fence at market rate without deduction of depreciation, based on contractual agreement; OR 2) Replacement/reconstruction of the fence by the Project owner/contractor; Salvaged materials will not be included in the replacement value and can be used by APs for free.

Alteration to structure

Owner, possessor, Legalizable occupant of land

Cash compensation for lost part of structure and reconstruction of remaining structure at market rate without deduction of depreciation, based on contractual agreement; Salvaged materials will not be included in the replacement value and can be used by APs for free.

Full loss of structure

Owner, possessor,

Cash compensation for relocation/ replacement of lost structure at market rate without deduction of

56„Residential‟ refers to any structure used as a private dwelling, including houses and gers. “Commercial‟ refers to

any structure used for business and manufacturing activities, including small shops, factories, offices, and workshops/garages.

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and/ or relocation

Legalizable occupant of land

depreciation, based on contractual agreement; Salvaged materials will not be included in the replacement value and can be used by APs for free.

Moving or relocation of ger

Owner, possessor, Legalizable occupant of land, lessee

Cash compensation for cost of taking down and raising of ger and for transport, as applicable; to be included in contractual agreement; Salvaged materials will not be included in the replacement value and can be used by APs for free.

Moving or relocation of containers (metal kiosks)

Owner, possessor, Legalizable occupant of land, lessee

Cash compensation for cost of relocating container outside the ROW, including costs of emptying and restocking container; to be included in contractual agreement; Salvaged materials will not be included in the replacement value and can be used by APs for free.

Temporary disturbance

Removal of fence, civil works on land outside ROW,

Owner, possessor, legalizable occupant of land

Cash compensation fee stipulated in agreement on temporary loss; Public services will be maintained or temporary provisions made until they are restored; Safe access to land and residences is ensured; Restoration of land and fences by civil works contractor.

Business loss

Temporary business loss due to LAR or construction activities by Project

All entities so affected

Cash compensation equal to net income losses during interruption period to be included in contractual agreement; Wages of employees to be compensated directly during interruption period.

Permanent business loss

All entities so affected

Compensation shall include also any costs required for physical and financial re-establishment of business. If the business needs to be relocated, the following options will be provided to the APs: (a) government will provide replacement land/shop space prior to relocation; or (b) if an acceptable plot of land/space cannot be agreed upon, net income loss of 1 year will be paid and, in consultation with the APs, the replacement land/shop space will be provided within 1 year of displacement.

Employment loss

Temporary employment

All employees

Cash compensation for lost wages for the period of interruption of employment; to be included in

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loss due to LAR or construction activities

so affected contractual agreements between employer and the project. 57

Permanent loss of employment

All employees so affected

Cash indemnity of 3 months for permanent impact 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; Skills development trainings and assistance to arrange new employment.

Relocation Transport/ transition costs

All APs or entities to be relocated

Provision of allowances to cover transport costs of moveable assets on actual cost basis at current market rates; to be included in contractual agreement; Assistance with permanent and/or transitional relocation (if required), including in finding an alternative plot, or a comparable house to rent, as applicable.

Vulnerable and/or severely AP58

Permanent loss of livelihood

All vulnerable and/or severely APs so affected

Preferential employment in project-related workforce, if available and desired by APs; Employment training (3-6 months); Cash assistance up to a maximum of six months at guaranteed lowest living level and assistance in reconstitution of business or employment.

Loss of land All vulnerable and/or severely APs so affected

Assistance with selecting a replacement plot and with preparation of contracts and administrative process of provisions of replacement plot.

Loss of structure

All vulnerable and/or severely APs so affected

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

Livelihood support

Any HH member of a vulnerable AP

Preferential treatment for temporary employment during construction; Employment training (3-6 months).

Temporary disturbance

All vulnerable APs so

Preferential treatment to avoid, minimize or mitigate as quickly as possible.

57 The contract will stipulate the continuation of wage or salary payments by the employer to the employees. This will

be monitored by the PIU and external project monitors. 58 Vulnerable groups are distinct groups of people (poor, elderly, disabled, and female headed households) who may

suffer disproportionally from resettlement. In this LARP severely AP/Hs include also those who experienced cumulative impacts due to previous road widening in 2009.

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affected Loss of crop All APs/

entities so affected

Compensation at market rate of the harvested crop.

Loss of trees All APs/ entities so affected

Cash compensation for trees based on volume of wood; for fruit trees based on the net annual income from the tree(s) for the number of years taken for replacement tree(s) to reach comparable production; and (b) the cost for growing the replacement trees (e.g. seedling and growth management);

Public utilities:

All APs/ entities so affected

Compensated based on replacement cost of restoring the same level of services;

Unidentified losses

Unanticipated impacts

All affected entities

To be identified during project implementation; measures will be formulated as appropriate according to ADB policy and reported to ADB prior to implementation; contingency will be included in LARP budget to cover unanticipated expenses.

V. Compensation Standards 10. All affected assets will be compensated at replacement cost based on market value for comparable assets estimated by the valuation team including resettlement specialist, valuation specialists of Property Relations Agency (PRA) and LAD of Ulaanbaatar, and representative of affected entities, and agreed with affected persons. The PIU is responsible for follow-up and facilitation of the processes for estimation of the replacement values for land and non-land assets and losses59. The compensations rates will be based on replacement cost and market value for specified affected items (including land, business, income, structures, etc. assets).The bases for compensation negotiations will be based on the current practices in Ulaanbaatar. In addition, the costs related to relocation of business and other assets and all other transaction costs will be included in compensations. The detailed information about compensation rates will be disclosed to you separately during project implementation. The costs of compensations will be covered by the funds of MUB. VI. Institutional Arrangements 11. MUB is the executing agency of the IP and the Department of Roads (DOR) is the implementing agency. MUB establishes the PIU, which will be responsible for the overall management, supervision and progress monitoring of the IP including the LARP preparation, finalization and implementation. The PIU will be staffed by full time specialist to handle all issues related to social and environment safeguards. Besides, the concerned governmental departments will play an instrumental role in implementation of IP and LARP. The Ulaanbaatar Land Administration Department (LAD) is responsible for allocation and registration of new land plots and any changes in the existing land parcels and estimation of replacement market value for taken land of eligible affected persons. The Ulaanbaatar Property Relation Agency (PRA) is 59 In case of disagreements‟ over the compensation rates during the negotiation process with APs, the

PIU can engage an independent private valuation specialist and re-assess the compensation rates offered to the APs and disclose the results to the APs.

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responsible for registration of property rights and independent valuation60 of all affected assets based on the current market value. The MUB will form Resettlement Plan Implementation Committee (RPIC) prior to the detailed design stage; this will ensure that key government institutions including local governments are involved and their coordination is ensured in finalizing this LARP and carrying out the LAR tasks. The institutional arrangement for LAR is given in Chart 1.

6.1 Formation of Resettlement Plan Implementation Committee 12. The RPIC formed by MUB comprises the key government offices in the grievance redress process, such as the Deputy Governor of MUB, the Governors of respective Districts and Khoroos and other government departments, such LAD, PRA, and PIU staff, including resettlement specialists. The RPIC will also include the representatives of the affected persons/households, women affected persons and local NGOs, if available. RPIC shall be formed prior to commencement of detail design. In this manner, it will be accessible for any disputes and concerns of affected persons raised during the design stage, final inventory of losses, detail measurement survey, census of affected persons, negotiation of compensation and project implementation. The RPIC will be assisted and supported by resettlement specialist of PIU for coordination of complaints, keeping track of their status and reporting the results to the PIU/MUB and ADB. The PRIC ensures that key government institutions including local governments are involved and their coordination is ensured in carrying out the LAR tasks (Chart 1). Close coordination and commitment between all stakeholders will be facilitated by the participation of the following members in the RPIC: (i) Municipal Government of Ulaanbaatar, Deputy (Chairman); (ii) Governors of Khoroo (Vice Chairman for respective Khoroo); (iii) Resettlement Specialist of PIU (Member, Secretary); (iv) Representative from the DOR (Member); (v) Representative from the Ulaanbaatar PRA (Member); (vi) Representative from the Ulaanbaatar LAD (Member); (vii) Three representatives of affected persons elected by majority of affected persons (Member); and (viii) Representative from a CBO or NGO (Member), if available.

60 The replacement cost for the affected assets will be estimated by the market survey undertaken by a team

including the staff of PRA, the resettlement specialist and staff of PIU, members of PRIC and the representative of the APs.

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Chart 1. Institutional Arrangement for LAR 13. The PIU will ensure compliance with assurances, including safeguards and preparation, finalization and implementation of this LARP. It will provide training workshops to the staff of PIU, Khoroo and other government officials involved in LAR activities, including the members of RPIC, representatives of the affected persons and other stakeholders about the LARP provisions and implementation arrangements, as well as the principles and safeguards requirements of ADB resettlement policy, agreed LARF and legislation of Mongolia. The training will also highlight the differences between the provisions of the ADB‟ Safeguard Policy Statement and the Mongolian laws and explain how to ensure that the ADB‟s Safeguard Policy Statement requirements are met. The PIU will be responsible for adequate monitoring and supervision of the implementation of this LARP and the resulting impacts on affected persons, as well as for reporting the progress of LARP implementation to MUB and ADB.

VII. Grievance Redress Mechanism 14. MUB will set up a GRM to support the affected persons on problems arising from land acquisition, demolition of structures and associated impacts. This will provide means by which the various conflicting stakeholders may be consulted and agreements reached, paying particular attention to the impacts on vulnerable groups. Affected persons will be informed and consulted about the detail process of the GRM during the public and individual consultations, interviews and through the disseminations of leaflets on LARP and LAR tasks. 15. According to the current practices, the Land Law (Article 60, „Settlement of Land Related Disputes‟) refers to the disputes over land issues. The article states that these issues shall be settled by the Khoroo Governor of the administrative units, and if not solved, the dispute shall be settled by an authority of higher level, or in the court. In addition, residents may also go directly to the District Land Officer. However, to facilitate the direct and immediate handling of grievance issues, PIU as implementer will be the initial recipient of the grievances for this LARP. The grievance redress process and steps are given below and displayed in Chart 2. At the same time, the affected person can file a case in court of law of Mongolia at any stage during the grievance review process.

ADB MUB/GoM MoF

UB LAD DOR

UB Property Relation Agency

Affected Persons Khoroo (Local Government)

Independent Monitor

RPIC

Citizen Representatives‟ Hural

PIU

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7.1 Grievance Redress Steps Step 1: To facilitate the direct handling of grievance issues, PIU as implementer will be the initial recipient of the grievance, establish complaint registry system and maintain records of all grievances and status of resolution. It will resolve minor issues directly or with assistance of local Khoroo. The PIU shall address the grievance within one week, inform the affected person and initiate actions. In case of unresolved/or major issues, they will be presented to RPIC at central level for deliberation and appropriate action. Step 2: RPIC, composed of the MUB and other concerned offices, shall resolve the grievance within one month. The representatives of the affected person, elected by the majority of affected persons will be involved and given opportunity to mediate in his/her favour. The RPIC will address the grievance and informs the affected person. Through the assistance of District Governor, RPIC proposes it‟s resolution to the Citizens Representative Hural for approval and actions. If the affected persons are still dissatisfied by the decision of the RPIC they can file their case with the court of law. 16. APs can also submit complaints to ADB which will be handled by the Project Team. If an AP is still not satisfied and believes they have been harmed due to non-compliance with ADB policy, they may submit a complaint to ADB‟s Office of Special Project Facility or Office of Compliance Review in accordance with ADB‟s Accountability Mechanism61. 17. A Grievance Action Form (GAF) will be used to cover the various aspects of LAR in the grievance redress process The GAF shall at minimum contain basic information about affected person (name, address, contact number, unless the case is confidential), category of grievance filed (legal, technical/engineering, social, financial, etc. detailed description of grievance and type of decision and action in the given level or referred to higher authorities (sample given in Annex 5).

61 Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to

solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism. For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

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Chart 2. Chart of Grievance Redress Steps VIII. Contact Information 18. For any information and advice, please feel free to approach the following contacts: Department of Roads: Sukhbatar district, Chingis Av. Ulaanbaatar. Tel. 976-11 310503 MTRCUD: Barilgachdin talbai-3, Chingeltei district 15170, Ulaanbaatar. Tel.11-310612; 11-327716 The contact details of PIU‟s responsible staff will be advised later.

Affected Person

PIU

RPIC

Step 1

Step 2

Grievance addressed within one week

Grievance addressed within one month

Not addressed

Not addressed

Court of Law

AP may apply to court at any stage of process

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Annex 5. Sample Grievance Action Form (GAF) The Project welcomes complaints, suggestions, queries and comments regarding project implementation. We encourage persons with grievance to provide their name and contact information to enable us to get in touch with you for clarification and feedback. Should you choose to include your personal details but want that information to remain confidential, please inform us by checking box on CONFIDENTIALITY given below. Thank you. □ Request for Confidentiality CATEGORY OF GRIEVANCE

□ Legal □ Administrative □ Social □ Financial □ Technical □ Environment □Other

Date Place of registration Project site: Name (if not confidential) Home address District/Khoroo Phone number/email: Description of grievance/comment or suggestion: If includes attachment/note/letter, please tick here: □ FOR OFFICIAL USE ONLY62 Registered by: (Name and signature of officer registering grievance)

Mode of communication: Note/Letter E-mail Verbal/Telephonic

Reviewed by: (Names/Positions of Official(s) reviewing grievance)

Action Taken:

Whether Action Taken Disclosed: □ Yes □ No

Means of Disclosure:

62 This form will be given to affected persons in Mongolian language.

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Annex 6. Sample of Individual Notification

LAND RELATIONS, CONSTRUCTION AND URBAN DEVELOPMENT DEPARTMENT NOTIFICATION

Number: ____________________________ ____ year ____ month ____day To:__________________________________________________ Address:______________________________________________ In accordance with the decision of the Government of Mongolia the Urban Development Sector Project (UDSP) will construct __________________________________________ in bag ____________________________________ of _________________________ city with financial support from the Asian Development Bank (ADB). You are hereby officially notified that the following land owned/possessed by you and structures thereupon are located within the redline of the proposed roads expansion will be affected by land acquisition and/or resettlement: 1.____________________________________2.___________________________________ 3.____________________________________4.___________________________________ Land officers from the ____________________________ LRCUDD and land acquisition and resettlement specialists from the Project Implementation Unit (PIU) will visit you at your residences or businesses and also hold several consultation meetings with all affected persons to discuss the Land Acquisition and Resettlement Plan and other related issues for your area. DIRECTOR OF THE LRCUDD ______________________ __________________________ Signature Phone number: __________________________________

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Annex 7. Sample of Replacement Rates based on Botanic-Sharkhad Road Improvement Project (Ulaanbaatar), June 2011 Below are the copies from LARP of Botanic-Sharkhad Road Improvement Project (Ulaanbaatar) . The

names of affected people are not displayed due to privacy considerations.

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Annex 8. TOR for the External Monitor

TOR for External Monitoring and Evaluation

I. Introduction

1. According to the requirements of ADB Policy of resettlement, the projects that result in land acquisition and resettlement will be properly monitored and evaluated. Implementation of LARP under the Urban Transport Development Investment Program (IP) will be subject to internal and external monitoring and evaluation, which will be carried out during and after LARP implementation.

II. Scope of Work 2. External monitoring of the Project will be based on (i) the procedures and guidelines of ADB as set out in the Handbook on Resettlement (Manila, 1998); (ii) relevant laws, policies, and regulations in Mongolia; (iii) the provisions of LARP; and (iv) the general principle that affected persons‟ livelihood should be better or at least remain at the present level after completion of the Project 3. The selected Monitor will closely monitor the implementation of the LARP and engage in the following tasks: (i) review of the disclosure of the LARP and of the Information pamphlet; (ii) review of the action taken by the MUB to compensate the affected person with particular attention to the way this action fits the stipulation of the LARP; (iii) verification of the compensation tallies; and (iv) verify whether the compensation is provided thoroughly to all affected persons and in the amounts defined in the LARP and in the AP contracts; (v) asses the satisfaction of the affected persons with the information campaign and with the compensation/rehabilitation package offered to them; (vi) review the legalization process and assess its effectiveness; (vii) review complaints & grievances case; (viii) Restoration of basic infrastructures and special facilities, if affected, to the pre-project level ; (ix) potential problems in the way of restoration of standards of living will be identified and reported (x) surveys to reveal the socioeconomic conditions of the affected persons and their satisfaction (viii), with at least 50% sample of the affected persons. 4. The Consultant will carry out a comprehensive baseline socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the affected persons after resettlement. Subsequent tracer surveys will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation. Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include: (a) The status and function of women: Closely monitor any change in women‟s status, function

and situations; provide recommendations to MUB in respect of women‟s issues; (b) Care and attention to vulnerable groups, closely monitor living conditions of the poor, elders,

the disabled, and other vulnerable groups after resettlement to ensure that no hardship is experienced; and

(c) Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds.

5. Monitoring reports will include, among other things:

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(i) assessment of the way compensation was carried out in relation of the stipulations of (ii) the LARP and the LARF; (iii) verification that all affected persons have been compensated in the amounts stipulated

in the LARP; (iv) assessment of the accuracy of survey and asset valuation; (v) assessment of the effectiveness and thoroughness of the consultation/negotiation and

legalization process; (vi) review of complaint and grievance cases and of their solution; (vii) assessment of the rehabilitation program for severely affected and vulnerable affected

persons; (viii) assessment of the satisfaction of the affected persons; (ix) lesson learned to be applied to the next projects, and; (x) general assessment of LARP implementation and recommendations to ADB.

III. Implementation Arrangements

6. The Monitor will report directly to the MUB and carry out its activities in close coordination with the resettlement team and with the Ulaanbaatar LAD and UB PRA.

IV. Duration of Consulting Services

7. The consultancy service shall start 15 days before the start of the implementation of the LARP. As it is expected that LARP implementation will start at the second quarter of 2012 and carried out through 2013, the Monitor will be engaged for 7 months inputs on intermittent basis over two years period for evaluation the living conditions of affected households in one and two years after the completion of LAR tasks. Monitoring costs are included in LARP budget and will be specified in service agreement.

V. Reporting Requirements

8. The pertinent monitoring reports will be submitted to ADB, MUB, and PIU, as follows: (i) an Action Plan for the monitoring (10 days after contract signing); (ii) baseline Survey Report (within 2 months); (iii) first Monitoring and Evaluation Report (within 6 months); (iv) second Monitoring and Evaluation Report (within next 6 months); (v) third Monitoring and Evaluation Report (to be determined63); and (vi) final Monitoring and Evaluation Report 9. The Monitor shall submit reports in Mongolian and English languages in electronic and 3 hard copies along with the cover letter. 10. The PIU will also submit a resettlement completion report to the ADB, to be followed by post-resettlement impact evaluation reports by the Monitor, which should provide further evidence whether adverse effects of the Project have been mitigated adequately. 63 If LAR activities have been completed, the first annual evaluation can be done. More reports will be required if the

implementation schedule is extended, or if rehabilitation measures have not been completed satisfactorily.

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VI. Consultant Qualifications 11. MUB shall engage an individual consultant from NGOs, academic institutions, consulting firms, or individual resettlement specialists. The Consultant should have prior experience in conducting external resettlement monitoring or evaluation for development projects. Familiarity with the ADB‟s Involuntary Resettlement Policy (1995) and the ADB‟s Safeguard Policy Statement is an advantage.