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Resettlement Planning Document Land Acquisition and Resettlement Plan for Improvement of Basic Urban Services in Bayankhongor Aimag Document Stage: Final Project Number: 37697 November 2010 MON: Urban Development Sector Project The Land Acquisition and Resettlement Plan for Improvement of Basic Urban Services in Bayankhongor Aimag is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

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Resettlement Planning Document Land Acquisition and Resettlement Plan for Improvement of Basic Urban Services in Bayankhongor Aimag Document Stage: Final Project Number: 37697 November 2010

MON: Urban Development Sector Project The Land Acquisition and Resettlement Plan for Improvement of Basic Urban Services in Bayankhongor Aimag is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject ii

L2301-MON: URBAN DEVELOPMENT SECTOR PROJECT

Land Acquisition and Resettlement Plan for the Bayankhongor Basic Urban Services

Improvement Subproject

(FINAL)

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

November 2010

LARP for the Bayankhongor Basic Urban Services Improvement Subproject iii

LETTER OF CONCURRENCE BY THE GOVERNOR OF BAYANKHONGOR AIMAG

LARP for the Bayankhongor Basic Urban Services Improvement Subproject iv

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

LARP for the Bayankhongor Basic Urban Services Improvement Subproject v

ABBREVIATIONS

ADB Asian Development Bank

AH Affected household

AP Affected person

CBO Community-based organization

DOR Department of Road

EMA External monitoring agency

DMS Detailed measurement survey

GAF Grievance action form

GOM Government of Mongolia

HH Household

IRP Involuntary Resettlement Policy of ADB

LRCUDD Land Relations, Construction and Urban Development Department

LAR Land Acquisition and Resettlement

LARF Land Acquisition and Resettlement Framework

LARP Land Acquisition and Resettlement Plan

M&E Monitoring and evaluation

MRTCUD Ministry of Road, Transportation, Construction and Urban Development

NGO Nongovernment organization

OM Operations Manual (ADB)

OP Operational Procedures (ADB)

PIU Project Implementation Unit

PMU Project Management Unit

PUSO Public urban services organization

ROW Right of way

RRP Report and Recommendations of the President (ADB)

UDSP Urban Development Sector Project

WG Working Group

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

LARP for the Bayankhongor Basic Urban Services Improvement Subproject vi

DEFINITION OF TERMS

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

LARP for the Bayankhongor Basic Urban Services Improvement Subproject vii

LOCATION MAP: BAYANKHONGOR BASIC URBAN SERVICES IMPROVEMENT SUBPROJECT

LARP for the Bayankhongor Basic Urban Services Improvement Subproject viii

CONTENTS

LETTERS OF CONCURRENCE BY THE GOVERNMENT OF MONGOLIA......................... iiii

ABBREVIATIONS..................................................................................................................... iii

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

LOCATION MAP: BAYANKHONGOR BASIC URBAN SERVICES IMPROVEMENT SUBPROJECT.......................................................................................................................... vi

CONTENTS ............................................................................................................................. vii

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

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

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

C. SOCIOECONOMIC PROFILE OF THE AFFECTED HOUSEHOLDS.................................9

D. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS........................................14

E. CONSULTATION AND PUBLIC PARTICIPATION ............................................................20

F. GRIEVANCE REDRESS MECHANISM..............................................................................21

G. INSTITUTIONAL FRAMEWORK........................................................................................22

H. COMPENSATION AND REHABILITATION STRATEGY...................................................23

I. LAR BUDGET, FINANCES AND DISBURSEMENT............................................................32

J. MONITORING AND EVALUATION.................................................................................. 333

K. IMPLEMENTATION SCHEDULE........................................................................................37

LARP for the Bayankhongor Basic Urban Services Improvement Subproject ix

EXECUTIVE SUMMARY

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

and the ADB Involuntary Resettlement Policy (IRP) of 1995. Bayankhongor Aimag: Bayankhongor aimag is located in Mongolia’s Khangai region, approximately 500 km from Ulaanbaatar. The aimag covers an area of approximately 116,000 km2 and in 2006 had an estimated population of 82,299. Bayankhongor City, the aimag centre, had a population of approximately 26,252 in 2006. Herding is being replaced by informal mining and work in the budding tourism industry as the primary economic activity of many people in the aimag. Over the 2001-2006 period, the UNDP identified a 4.32% increase in GDP per capita in Bayankhongor aimag (US$ 1,316 for men and $1,283 for women). Subproject site and ROW: The Bayankhongor subproject will improve the water supply system for the town’s ger areas and assist the PUSO in becoming financially viable. The subproject scope of work includes the rehabilitation of two (2) deep well buildings; renewal of two (2) pumps and equipment; construction of a chlorate house and a water reservoir of 1,000m3; installation of 6.7 km of water lines in ger areas; construction of 5 new, and rehabilitation of 10 existing, water kiosks and connection to the main line; renewal of 2.3 km of the sewerage system; and rehabilitation of a waste water treatment plant, benefitting 26,438 residents. The right of way (ROW) for the water pipelines, which will traverse the subproject ger areas in various directions, has a total ROW width varying between 5m and 10m (i.e. between 2.5m and 5m from centerline on both sides). In order to minimize resettlement impact, the standard total trench ROW width of 10m was reduced to 5m along several sections of the pipeline in accordance with the Construction Standard and Rules of Mongolia for Water Supply, External Networks and Structures BNBD 40-02-06. See Annex 1 for a detailed technical design map of the Bayankhongor subproject. Annex 2 includes location mapping of affected persons and/or households, as well as photos of the land and structures affected by the subproject. Location mapping and photos correspond to detailed descriptions of affected land and structures in Section C of this LARP. Scope of LAR impact: Only some of the water distribution and transmission lines and some of the sewage pipelines will involve land acquisition and resettlement (LAR); the other project components will be constructed on public land. A total of sixteen affected entities, including 14 private households and 2 commercial entities will be affected. Within 14 affected private households, there are a total of 59 APs, 25 male and 34 female, 18 of which are children (under 18 years of age). Seven of the sixteen affected entities will lose land totaling 1,302.69m2

(see Table 2). The majority of affected land, 808.62m2, is residential. The balance, 494.07m2, is commercial land. No institutional land will be affected by this subproject. There are a total of 13 affected structures on residential land, and nine affected structures on commercial land. Fences, walls and gates totaling 299.2m in length, belonging to four affected entities, will need to be moved or replaced.2 Other affected structures include one wooden house, a commercial structure, a garage, four latrines (one of which with five seats), five sheds (including wooden and mixed-materials sheds) and one garden. Affected structures are indicated in

1 Civil Code of Mongolia, 2002; Law of Mongolia on Land, 2002, amendments 2003/04/05/06; Law on Allocation of Land to Mongolian Citizens for Ownership, 2003, amendments 2005/08. 2 An additional 335m of fences will be provided to affected vulnerable households entitled to

new residential plots as part of their negotiated compensation packages.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject x

Table 4. Five storage containers will also be displaced; the project will compensate owners of the containers for the cost of relocating the containers outside the ROW. Indigenous peoples and gender impact: Indigenous peoples, i.e. tribal communities existing outside the cultural and legal mainstream of Mongolian society, are not present in the Bayankhongor subproject site. Therefore, the ADB Policy on Indigenous Peoples will not be triggered by this subproject. Adverse differential gender impact by the Bayankhongor subproject on either men or women is not expected. Legal and policy framework: Land acquisition and resettlement by the government for projects in urban areas is based on negotiation and contracts with affected persons according to the Civil Code of Mongolia. The ADB IRP recognizes negotiated LAR as long as there are willing and free buyers and sellers and eligibility and entitlements are clearly defined and agreed. All APs are eligible for entitlements, as stipulated in the LARF for the Project, including owners, possessors, users, legalizable occupants, non-titled occupants and lessees. The eviction of unlicensed APs is a violation of the ADB IRP. All APs who are unlicensed occupants of land in ger areas designated for land allocation are treated as legalizable under the LARF for UDSP. The eligibility and entitlements for specific types of losses in the Bayankhongor subproject are summarized in the Entitlement Matrix in Table 11 of this LARP. Consultation and grievance redress: Information, consultation and participation of APs are ensured through individual and public meetings throughout the LARP preparation and implementation process. Two public meetings to prepare the APs for land acquisition and to disclose and discuss the draft LARP were held in May and August 2010. A four-step grievance mechanism with a clearly defined timeline of five weeks for each case has been established and disclosed, and a Grievance Action Form initiating and tracking the grievance process for each complaint has been prepared (Annex 6). Institutional arrangements and monitoring: The Working Group (WG) for the Bayankhongor subproject, formed on 4 May 2010 under Resolution 210 of the Governor of Bayankhongor Aimag, is responsible for the implementation of the Bayankhongor subproject LARP (see Annex 2). With the support of the PMU, the Bayankhongor PIU assists the WG and ensures resettlement safeguard compliance prior to any land acquisition or resettlement and the award of civil works contracts. The PMU, together with the Bayankhongor PIU, is responsible for adequate supervision of the implementation of subproject LARPs. The PMU will be responsible for reporting the progress in implementing the LARP to the Ministry of Road, Transportation, Construction and Urban Development (MRTCUD) and ADB. Monitoring of compliance with the LARP and the LARF during implementation is carried out by the Bayankhongor PIU together with the PMU, as well as by an external monitoring agency (EMA). Compensation strategy and budget: Losses of land and structures, as well as transaction and relocation costs for each AP are covered.

• Two owners of affected land totaling 193.23m2 will be compensated at the current market rate of MNT 6,000 per m2 for Bayankhongor. The total cost of compensation for this land will amount to MNT 1,159,380. These APs will also lose a total of 135.77m2 of adjacent unlicensed land for which they will receive preferential employment in project civil works.

• A total of three affected households (AH) will possess residual landholdings of less than 350m2. Two of these AHs have the option to receive either cash compensation at market rate for loss of their entire licensed landholdings or a replacement plot with ownership license and State registration. One has expressed preference for cash compensation. The other prefers a replacement plot. These two AHs will also lose a total of 39.03m2 of adjacent unlicensed land, for which they will receive preferential employment in project civil works. A third

LARP for the Bayankhongor Basic Urban Services Improvement Subproject xi

AP will retain residual landholdings of less than 350m2 in her current location. This AP will be provided an ownership or possession license and State registration for the remaining portion (344.19m2) of her unlicensed plot.

• One affected entity, the operator of the local informal market, will lose 81.39m2 of the 9284.65m2 unlicensed land it occupies No compensation will be paid for affected unlicensed land but the remaining 9203.26m2 will be legalized with a possession license and State registration at no cost to AP.

• A lessee of a 31m2 plot will be provided a replacement plot of equal size with possession license at no cost to the AP.

• Four vulnerable APs residing on the properties of other APs will be displaced and will receive new fenced plots with ownership licenses and State registration at no cost to APs.

• Wooden fences totaling 62.8m will need to be removed and rebuilt at new property boundaries, at a total cost of MNT 795,676. An additional 130.2m of wooden fences will need to be replaced. Total compensation for these fences will amount to MNT 2,732,213. New wooden fences totaling 335m will also be provided to four vulnerable APs on their new plots at a total cost of MNT 5,584,450.

• A 53.3m concrete wall will be demolished and rebuilt for a total of MNT 2,368,759. Additional compensation of MNT 247,249 will be paid to move the wall’s 13.2m gate. Another 6m iron fence with concrete base will be compensated at a cost of MNT 142,386.

• Four APs losing open pit wooden latrines of between one and five seats will be compensated a total of MNT 1,770,368. Four other vulnerable APs moving to new plots will be compensated for the cost of excavating open pit latrines on their properties. Total compensation will amount to MNT 885,184.

• The owner of an 81m2 affected commercial structure will be compensated in the amount of MNT 20,676,500.

• The owner of an impacted wooden residential structure of 26.64m2 will be compensated a total of MNT 4712,616.

• The owners of wooden sheds measuring a total of 46.71m2 will be compensated a total of MNT 1,636,063. A concrete shed measuring 10.36m2 will be replaced for a total value of MNT 1,074,125.

• A concrete garage measuring 31m2 will be replaced, costing a total of MNT 3,702,175.

• One garden measuring 80m2 will be affected by the project. Compensation of MNT 160,000 will be paid to replant the garden within the same property.

• One AP whose tire repair business will be affected during the project’s civil works will be compensated at the rate of MNT 20,000/day for the anticipated seven days of construction disturbance in front of his shop.

• The four vulnerable APs receiving new plots will be provided an allowance of MNT 50,000 each to relocate their ger.

• Three APs with a total of 5 storage containers currently sitting partly within the ROW will be compensated for the cost of moving the containers outside the ROW. A crane will be hired to move each container at a cost of MNT 120,000 per hour for 5 hours. Their lease agreements for the container space will not be affected.

• Fees for land transactions will amount to MNT 997,000 and will be paid by the Project owner.

The budget for land acquisition and resettlement in the Bayankhongor subproject is expected to amount to MNT 64,045,208 or USD 48,674 for compensation as well as

LARP for the Bayankhongor Basic Urban Services Improvement Subproject xii

transaction, administration and contingency costs, which are funded from state government resources.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 1

A. INTRODUCTION

1. This Land Acquisition and Resettlement Plan (LARP) for the Bayankhongor Basic Urban Services Improvement Subproject under the Urban Development Sector Project (Project) is prepared in accordance with applicable laws of Mongolia, the Asian Development Bank's (ADB's) Involuntary Resettlement Policy (1995) and the updated Land Acquisition and Resettlement Framework (LARF) for the Project. 2. This LARP is agreed upon between the Government of Mongolia (GOM), the Government of the Bayankhongor Aimag and ADB. It provides (i) an assessment of the scope of land acquisition and resettlement (LAR), (ii) an analysis of the socio-economic situation of APs, (iii) the LARP policy framework and entitlements, (iv) the procedure for consultation and public participation, (v) a description of institutional arrangements and the LAR grievance mechanism, (vi) the compensation strategy, (vii) an itemized resettlement budget, (viii) an internal and external monitoring and evaluation procedure and (ix) the Bayankhongor subproject LARP implementation schedule. 3. The basic urban services improvement component supports efforts by GOM in implementing its Urban and Housing Development Strategy and five year “40,000 Housing Unit Program”, a major component of which, is to transform ger areas into modern neighborhoods by providing piped water and sanitation. It also makes a major contribution to the achievement of the GOM’s Housing Program by providing water supply to households in major ger areas, more than half of which are poor. The Project will assist GOM in its efforts to: (i) provide sustainable and affordable infrastructure and urban services to ger area residents and the urban poor; (ii) promote community participation in project preparation, implementation, post-project operation and follow-on activities; (iii) improve urban planning and management; and (iv) increase the capacity of government and other public agencies to provide and operate urban services. Implementation of the Project will have a very significant impact on urban development and poverty reduction. 4. Under the basic urban services improvement component: (i) ger area households will be served by improved water supply and sewage networks connected to new or improved water kiosks within 200 meters of their plots; and (ii) public institutions in ger areas including schools and kindergartens will be connected to piped water supply and existing sewerage systems. 5. Bayankhongor aimag is located in Mongolia’s Khangai region, approximately 500 km from Ulaanbaatar. The aimag covers an area of approximately 116,000 km2. In 2006, the aimag had an estimated population of 82,299. Bayankhongor City, the aimag centre, had a population of approximately 26,252 in 2006. According to the United Nations Development Program’s Mongolia Human Development Report (2007), Bayankhongor aimag ranks 19th out of 22 aimags (including capital city district) on the Human Development Index (a measure of a population’s health, education and income status). A poverty profile compiled by the World Bank and the National Statistical Office indicates that while less than one-fifth of Mongolia’s population lives in the region in which Bayankhongor is located, one-third of the country’s poor live in the region. Herding is being replaced by informal mining and work in the budding tourism industry as the primary economic activity of many people in the aimag. Over the 2001-2006 period, the UNDP identified a 4.32% increase in GDP per capita in Bayankhongor aimag (US$ 1,316 for men and $1,283 for women). A report prepared for the ADB and Ministry of Construction and Urban Development (now MRTCUD) by PADCO (2006), identifies a number of community priorities for the Bayankhongor subproject. Focus group discussions with community members revealed five priorities for infrastructure improvements, including: i) water supply (household connections); ii) sand drift protection; iii) roads; iv) improved/smokeless stoves; and v)

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 2

solid waste separation and recycling. Nearly all of the community members who participated in focus group discussions indicated an interest in joining a community-based organization (CBO) focused on planning and managing neighbourhood improvements. Many community members, and particularly women, see the subproject as an opportunity to improve livelihoods in Bayankhongor. Currently, infrastructure services including, water, sanitation, public bath, solid waste and electricity, account for 6% of an average household budget. Findings of focus group sessions indicate that there is some elasticity in these demands and that people would be willing to pay slightly more for improved quality of service. The Bayankhongor subproject will improve the water supply system for the town’s ger areas and assist the PUSO in becoming financially viable. The subproject scope of work includes the rehabilitation of two (2) deep well buildings; renewal of two pumps and equipment; construction of a chlorate house and a water reservoir of 1,000m3; installation of 6.7 km of water lines in ger areas; construction of 5 new, and rehabilitation of 10 existing, water kiosks and connection to the main line; renewal of 2.3 km of the sewerage system; and rehabilitation of a waste water treatment plant, benefitting 26,438 residents.

B. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

6. Only some of the water transmission and distribution lines and some of the sewage pipelines will involve land acquisition and resettlement (LAR); the other project components will be constructed on public land. The right of way (ROW) of the 6.7 km of new water supply pipeline and 2.3 km of renewed sewerage systems, which traverse the subproject ger areas in various directions, has a total ROW width varying between 5m and 10m (i.e. between 2.5m and 5m from centerline on both sides). In order to minimize resettlement impact, the standard total trench ROW width of 10m was reduced to 5m along several sections of the pipeline in accordance with the Construction Standard and Rules of Mongolia for Water Supply, External Networks and Structures BNBD 40-02-06. 7. The initial draft technical design for the Bayankhongor Basic Urban Services Improvement Subproject of 2010, based on a standard 10m total ROW, indicated forty-five affected properties and various other structures. In order to avoid and minimize LAR impact the alignment of the water supply and sewage pipelines and associated trenches was modified and reduced to 5m total width (i.e. 2.5m from the centerline on both sides) in some areas. Impact was thereby reduced to 16 entities, including 14 households (eight affected by loss of residential property assets and six affected by loss of commercial property assets) and two commercial enterprises. The predominant types of structure impacted include fences, concrete walls and gates; a total of 687.5m of these types of structures are affected. Other affected structures include four latrines (including one with five seats), a wooden house, wooden sheds and five storage containers that will need to be moved outside of the ROW. A vegetable garden maintained by one AP will also be affected. A total of 929.85m2 owned or possessed land will be affected; 341.84m2 of unlicensed legalizable land and 31m2 leased land will also be affected. 8. The following assessment of the scope of LAR impact is based on the census of the APs carried out by the PIU Bayankhongor, as well as Detailed Measurement Survey data provided by the Land Relations, Construction and Urban Development Department (LRCUDD) of Bayankhongor Aimag and a property valuation consultant. At the time of conducting the AP census, the cut-off date of 03 May 2010 for the subproject was publicly notified in the subproject area (see Annex 3). The APs have also been notified individually by the LRCUDD using a notification form specially designed for the Project (see Annex 4).

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 3

Affected People

9. Table 1 indicates the number and types of affected households and persons in the Bayankhongor Basic Urban Services Improvement Subproject. A total of 16 affected entities, including residential property holders and commercial property holders will be affected. Fourteen affected households were enumerated in the census. The more comprehensive socio-economic survey focused on six of these households. Section C refers only to these AHs, unless otherwise specified. There are a total of 59 members within the 14 affected households, including 25 males and 34 females and 18 children (below 18 years of age). There are three seniors among members of AH. Two AH members (in BH014 and BH015) suffer from chronic health issues. Seven of the 14 AHs (BH001, BH002, BH012, BH013, BH014, BH015 and BH016) have been identified as vulnerable. This can be explained by their low monthly income per capita, which falls below the poverty line established for Bayankhongor Aimag of MNT 90,600. In all cases the per capita monthly income of these households is less than 50% of the official poverty line. BH001 comprises four members, the parents (ages 53 and 50), a 26-year old female and a 7-year boy. The household annual income is MNT 1,870,000 received from the head of household’s employment as a water distributor and the child benefits provided by the government. They live in a house made of wood with an attached concrete shed. The household’s adult son (BH016), a 24-year-old married father of one, lives on the same property in a ger. This household’s annual income is approximately MNT 790,000, earned primarily from seasonal artisanal mining activity. Per capita monthly income is MNT 20 000, well below the official poverty line. BH002 comprises five members, the parents (ages 28 and 28) and their children, two boys (ages 11 and 1) and a girl (age 7). The household annual income reported in the census is MNT 1,710,000 and results from the sale of cashmere. Their per capita monthly income is MNT 28,500, so this household is considered vulnerable. BH003, comprising four members, is headed by a 52 year female who has college training as an economist who receives most of her income from her small business and pension. Her household also includes her adult son (aged 32), his 29-year-old spouse and their one-year-old daughter. The household annual income is MNT 4.900 000, which is expected to increase as the son recently graduated from university and has secured formal employment. This household is not considered vulnerable. They possess significant household assets (including a vehicle). BH005 is a small business run by a woman (age 30) and her brother. She has an undergraduate university degree, is not married and has no children. Nevertheless, she is a member of a household of six and contributes to the family income. Ts. Battogtokh owns three containers located within the local informal market and one small shop (5x7 m) with ownership license. She pays MNT 90,000 per month for rent and security. Her net monthly income is MNT 400,000-500,000. Two of her containers will have to be moved outside the ROW. Compensation for the cost of relocation will be provided. BH006 is also a small business in the market area owned by a family that includes two members. The business is a small shop that is run by both husband (age 37) and wife (age 33). They use a container as storage for grocery products, paying a monthly fee of MNT 13,000 for container rental space. BH007 is another small shop owned by a family that is also comprised of husband (age 63) and wife (age 52). They pay MNT 25,000 and MNT 13,000 per month to keep their

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 4

shop and their container, respectively, within the local informal market area. The container will be moved to a nearby location within the market under the same lease agreement. The AP has a possession license for the land on which the shop is located. They invested MNT 2 million to build the shop on land they hold with a possession license. The actual net income from the store is approximately MNT 30,000/ day. BH009 comprises five members, the parents (ages 40 and 35) and three daughters (ages 22, 12 and 2). The household annual income is MNT 7,940,000 earned from a small business and state support. For the full loss of a 31m2 garage located on unlicensed land within the ROW, the project will provide cash compensation at replacement value and a replacement licensed plot. BH010 operates a tire repair business. The business is owned by a household of four with an annual income of MNT 4,966,000. The shop employs one male employee, who receives 40% of all income generated. On average, 10 to 15 tires are repaired per day at a cost between MNT 1500-3000. This represents an average daily income of about MNT 20,000. This business will be temporarily affected and will require compensation for seven days of lost business earnings during pipeline construction. Total expected compensation for this purpose is MNT 140,000. BH011 comprises eight members, the parents (ages 32 and 42), five children aged between one and 20, and the father of the wife of the head of household (age 69). The total annual household income is MNT 9,090,000. The property of this household will be less than 350m2 following land acquisition. They have elected to receive cash compensation for the full loss of his plot, including all assets. Importantly, the affected property is not the primary property of the AH; the household resides in an apartment elsewhere in the aimag centre. The affected assets include a commercial structure which has not functioned since September 2009. Displacement will thus have no impact on household livelihood. AH BH012 resides free of charge on the property of BH011 as partial compensation for informal employment services the affected household head provides for the property owner. This AH includes five members, the parents (ages 41 and 36) and three children (ages 14, 9 and 5). The total annual family income is MNT 3,450,000 earned from the head of household’s employment as a guard/janitor, his spouse’s income and child benefits provided by the government. With per capita monthly of MNT 57,500, this AH is considered vulnerable. They will be physically displaced as the owner of the property on which they reside (BH011) has elected to receive cash compensation as an entitlement for full loss of plot. This AH will be provided a replacement plot elsewhere in the aimag centre, and, as a vulnerable AH, preferential employment in the project’s civil works. AHs BH013, BH014 and BH015 reside on the same affected property. BH013 is headed by a 40-year-old woman and also includes her three daughters (aged 20, 18 and 5). Annual household income of approximately MNT 860,000 is earned through the sale of dairy products at the local market, supplemented by state child support. With per capita monthly income of just MNT 17,916, this AH is considered vulnerable. The land they occupy is unlicensed and is shared by BH014 and BH015. The ROW will reduce the size of the property shared by these AH to under 350m2. BH013 has elected to remain on the smaller property, which will be legalized by the project at no cost to the AH. BH014, is headed by the younger sister of BH015. This two person AH (head of household and seven year old daughter / father deceased) has an estimated annual income of MNT 1,864,000, which represents a monthly per capita of MNT 77,000. The household’s vulnerability is exacerbated by the head of household’s serious heart condition, so this AH is considered vulnerable.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 5

BH015 comprises the older sister (age 48) of BH013, her 53-year-old husband, their 21-year-old daughter with infant son, and a 20-year-old son. Total household annual income of approximately MNT 2,750,000 is earned through seasonal artisanal mining activity. The AH’s per capita monthly income is MNT 45,833, about half the official poverty line, so they are vulnerable. The residual property size of BH013 will be too small to accommodate AHs BH014 and BH0015. Both will be provided replacement plots of 500m2 with ownership license and State registration at no cost to the AHs. One member from each of these vulnerable households will also be offered preferential employment in project-related civil works. Both of the remaining two affected entities are commercial enterprises. One, BH004, is an independently operated outlet of the “Just Oil” fuel retailer opened in September 2009. The outlet has five employees that earn a monthly salary between MNT 200,000 – 450,000. The petrol station is open 24 hours a day and has gross revenue of MNT 20 million/month. A portion of the affected entity’s iron fence located on public use land outside the company’s licensed landholdings will be affected, compensation for which will be provided. Repositioning the fence outside the ROW will have no impact on business operations. The other commercial enterprise, BH008, operates the local market facility. The company, Enkh Tuguldor Ltd., is run by a head of household and his children. The company employs 6 women and eight men and its main activity is local trade and business facilitation. The company rents about 200 shop and container spaces to market merchants. Its gross income per month ranges between MNT 5.0 and 6.0 million. Impacts on the enterprise’s structures (concrete wall and gate, and latrines) and landholdings (81.39m2 or 0.88% of total unlicensed landholdings) will not impact on business operations. Existing alternative access to the site will be used during project civil works. No employees of the enterprise will be affected. A full list of affected entities, including households and commercial enterprises is included in Table 14. Section H includes a full discussion of the compensation and rehabilitation strategy for all APs. 10. All 59 members of affected households and commercial enterprises (100%) are of the Khalkh ethnic group, which is the mainstream cultural group in Mongolian society. As all are members of the majority ethnic group, the ADB Policy on Indigenous Peoples will not be triggered by this subproject. 11. Adverse differential gender impact by the Basic Urban Services Improvement subproject on either men or women is not expected. Special gender provisions are required by the Project’s LARF, in order to ensure due consideration of the specific needs and problems of affected women and to safeguard their livelihoods. Women are included in all consultation meetings and the participation process of LAR as a whole. Due consideration will be given to complaints and grievances lodged by affected women in the LAR process. Further attention will be given to the three female heads of household affected by the subproject, including BH005, BH013 and BH014. Special attention will be paid to female-headed AHs throughout the LARP planning and implementation process. Table 1: Affected Entities

Category Number Percent

Affected Entities, of which 16 100 Residential households 14 87.5 Commercial enterprises 2 12.5

Members of Affected Households, of 59 100

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 6

Category Number Percent

which Male 25 42 Female 34 58 Children under 18 18 11

Average HH Size Mean: 4.2

Median: 4.5 Female headed households 3 19 Land title holders, of which 4 25

Female land title holders 2 12.5 Joint/family property 0 0

Elderly persons 3 19 Disabled persons 0 0 Vulnerable households 7 50 Vulnerable persons 28 47

APs to be relocated 273 45

Affected Land

12. There are seven affected entities in the Bayankhongor subproject that will lose land. The total size of affected land amounts to 1,302.42m2

(see Table 2). Of the seven entities affected by land loss, three lose a combination of both owned and unlicensed legalizable land, one loses only owned land and two lose only unlicensed legalizable land. The total licensed land affected is 929.85m2, while the unlicensed land is 341.84m2. One affected entity (BH009) will lose 100% of its leased land. Two others (BH001 and BH011) are also considered to have full loss of land as the area of their land that remains unaffected is less than 350m2. The majority of affected land, 808.62m2, is residential. A total of 494.07m2 of commercial land is affected. No institutional lands will be affected by this subproject. Table 2: Affected Land

Type of Loss Unit Extent of Loss Percent of

APs Full Partial

No. 7 3 4 100 Total Affected entities m2 1,302.69 767.35 535.34 1) Impact by Ownership

No. 3 1 2 43 Owned

m2 572.85 379.35 193.5 No. 1 1 0 14

Possessed m2 357 357 0 No. 1 1 0 14

Rented m2 31 31 0 No. 2 0 2 29 Non-titled

occupation, legalizable

m2 341.84 341.84

2) Impact by Type of Land Use

No. 6 1 3 86 Residential

m2 808.62 379.35 429 No. 3 2 1 14

Commercial m2 494.07 412.68 81.39

3 The relocation of AP BH011 pertains to a vacant commercial structure and associated assets only.

This AP will not be physically displaced; its primary residence will not be affected.

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No. 0 0 0 0 3) Temporary Land Occupation m2 0 0 0 13. The proportion of land loss relative to total occupied land occupied is shown in Table 3. A significant portion (43%) will lose 50% or more of their total occupied landholdings. Of note, in only one such case are landholdings classified as residential (see Table 3). In neither of the other cases, moreover, is the loss of land expected to impact on livelihoods/business income.4 One vulnerable household will possess residual landholdings of less than 350m2 and is therefore considered to have full loss of land. The two other vulnerable households with impacts on landholdings will lose less than 30% of their total land. Table 3: Proportion of land loss relative to total land occupied

Land Loss (%) Total Affected Entities Vulnerable Households

Number % Number %

<10 1 14.3 0 0 <20 1 14.3 0 0 <30 2 28.6 2 66.7 <40 0 0 0 <50 0 0 0 50+ 3 43.6 1 33.3 Total 7 100 3 100

Affected Structures

14. There are 22 affected structures, including two residential structures. Fences, walls and gates of a total length of 299.2m, belonging to eight affected entities, will need to be moved or replaced. Other affected structures include one wooden house, a commercial structure, a garage, four latrines (one of which with five seats) and four sheds. One private garden will also be displaced. Affected structures are indicated in Table 4.

Table 4: Affected Structures

Type of Loss Unit Number of Affected Entities

Residential Structure m2 26.64 1

Commercial Structure m 81 1 Garage m

2 31 1

Concrete Shed m2 10.36 1

Iron Gate m 13.2 1 Iron Fence m 6 1 Wooden Fence m 226.7 5 Concrete Wall m 53.3 1

Latrine # 4 (one with

5 seats) 4

Wooden Shed m2 46.71 4

Mixed Shed m2 3.75 1

Garden m2 80 1

Storage contain # 5 3

4 In one case, the loss of land is associated with a garage, replacement land for reconstruction of which is

to be provided by the project in advance of displacement. In the other case the loss is associated with a vacant commercial property.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 8

Affected Households that need to be Relocated

15. Only two residential structures will be affected by the subproject; however, the impact on these structures extends to five households due to the way land is used and shared by the households. Four of the five affected households have been identified as vulnerable. The loss of a residential structure on the plot belonging to BH011, and BH011’s subsequent decision to relocate, affects the household of BH012 as this household is located on BH011’s plot and the head of the household is employed by BH011. Similarly, affected households BH014 and BH015, both of which are located on BH013’s plot, will lose their space, as the total area of BH013’s plot will be reduced to less than 350m2 by the subproject. While entitled to a new plot, the head of household of BH013 has elected to remain on her current plot. BH001 is also losing land and a residential structure and will be relocated. BH001’s decision to relocate also affects BH016 as this household lives in a separate structure on BH001’s plot.

Affected Livelihoods

16. As noted above, the tire repair business operated by BH010 will be affected temporarily for one week during project-related civil works. Compensation equivalent to average daily earnings will be provided for the seven days of disruption anticipated. This compensation should be used to cover lost wages of the employee. Impacts to the gas station operated by BH004 are to the fence surrounding the station and will not affect the regular operation of the station. No other business or livelihood impacts are anticipated.

Level of impact severity

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

C. SOCIOECONOMIC PROFILE OF THE AFFECTED HOUSEHOLDS

18. To gain an in-depth understanding of the socio-economic situation of APs who privately own, possess or use residential land in Bayankhongor, a survey of seven such AHs was carried out. The survey included interviews with four men and three women. Four of the seven vulnerable affected households identified in Bayankhongor, including two female headed households, were included in the survey. Some basic data on ethnicity, land, education and income have been derived from the census, other indicators of living standards and conditions from the sample survey. Where possible the presentation of the data is gender disaggregated to ascertain possible differences in the situation and perceptions of women and men; however, in all but one case in Bayankhongor (BH011), land is owned or possessed by the male head of household. 19. As presented in Table 5, all 59 members of AH are of the Khalkh ethnic group, which is the mainstream cultural group in Mongolian society.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 9

Table 5: Ethnicity among APs at the Bayankhongor subproject Ethnic Group

Total Men Women

Number % Number % Number %

Khalkh 59 100 25 42 34 58

20. The size and property status of all occupied land (affected and unaffected) among affected households as distinguished from their affected land discussed in the previous section, is depicted in Table 6; see also Table 14 for property sizes of individual affected entities. Three APs own affected land. One of these own between 250 - 500m2, while the other two own land between 500m2 and 1000m2. The owners of the larger plots also hold unlicensed land. One affected entity is a possessor of land, one rents land, and two (one commercial enterprise and one residential household) have unlicensed land only. Table 6: Size and property status of all land occupied by affected households (n=7)

Type/Size Classes Total

No. of Affected

Entities %

Total Land occupied (m

2)

<250 1 14.3

250 - <500 3 42.9

500 - <1000 2 28.6

1000 and more 1 14.3

Total 7 100

Land Owned

<250 0

250 - <500 1 33.3

500 - <1000 2 66.6

1000 and more

Total 3 100

Land Possessed

<250

250 - <500 1 100

500 - <1000

1000 and more

Total 1 100

Rented Land

<250 1 100

250 - <500 0 0

500 - <1000 0 0

1000 and more 0 0

Total 1 100

Unlicensed Land

<250

250 - <500 1 50

500 - <1000 0 0

1000 and more 1 50

Total 2 100

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21. All immoveable assets on the property of BH001, including a wooden residential structure with concrete annex, a latrine and fences, will be affected as this AH has elected to relocate. Similarly, all immoveable assets on the property possessed by BH011, including a commercial structure, two sheds and a fence, will be affected, as this AH has also opted to receive cash compensation for affected assets. Other affected structures include five ger (one of which to be moved on the same plot), fences, a shed, a concrete wall a concrete garage. A vegetable garden will also be displaced on the property of one AP. The residence of one AP, including concrete annex shed falls within the ROW. Two households (BH001 and BH003) have one ger and one house each. One affected household (BH010) owns a house and a garage, and another (BH011) owns a house plus two sheds. One household (BH002) owns a house only. Each of these households also has open pit latrines on and wooden fences surrounding their plots. Table 7: Type of structure owned by affected households Type Total Comments

Number of

Households Number of Structures

House (residential) 4 4

Two two-bedroom houses (26.6 and 40m

2) owned by BH001

and BH009. 2 three-bedroom houses (61.25 and 48m

2)

owned by BH003 and BH002

Ger (residential) 6 6 Four ger are 5 lattices panes in size and the other two are 4.

5

Apartment unit (residential)

1 1 BH011

Commercial structure 1 1 80m

2 formerly used for grocery

store

Fence / Wall 5 5 Four wooden fences and one concrete wall

Flush Toilet 0 0

Latrine 4 4 (one with five

seats) All are open pit latrines

Shed 4 4 One made of concrete and three of wood

Garage 1 1 BH009 Iron gate 1 1 Iron fence 1 1

22. Around 30% of AH members above 10 years of age have a complete secondary school level (12th grade) education, and 15% have an incomplete secondary level education (10th grade). A total of six AH members (10%) have attained post-secondary degrees at the bachelor level. One 72 year old woman has no education at all. Three AH members have received technical training from vocational institutions. Table 8: Educational attainment among above 10 yrs of age affected household members (n=45) Level Male Female Total

Number % Number % Number %

None 1 50 1 50 2 4 Primary (3

rd Grade) 2 33 4 66 6 13

Basic (10th Grade) 6 40 9 60 15 33

5 Lattice panes made from wood are used to frame ger and their size is measured in number

of lattice panes.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 11

Complete Secondary School (12

th Grade)

7 54 6 46 13 29

B.A. 2 33 4 66 6 13 M.A. 0 0 0 0 0 0 PhD. 0 0 0 0 0 0 Other 1 33 2 66 3 7 Total 19 26 45 100 10 years of age or below 6 43 8 57 14 100

23. Total annual income from all sources among 13 affected households providing income data is presented in Table 9. Eight declared that their total annual household income falls below MNT 5 million income category. Two AHs declared incomes between MNT 5 million and 7.5 million, while three declared annual household income between MNT 7.5 million and 10 million. Table 9: Annual incomes from all sources among affected households (n=13)

MNT Number of HH %

<5,000,000 8 62 5,000,000 - <7,500,000 2 15 7,500,000 - <10,000,000 3 23 10,000,000 - <15,000,000

0 0

15,000,000 - <20,000,000

0 0

=> 20,000,000 0 0 Total 13 100 No data / Unclear 0 Averages MNT

Mean 3,998,677 Median 3,450,000 Range 790,000.00 – 9,090,000

24. In Bayankhongor, the 14 AHs have between two and eight members each, with an average of 4.21 members per household. The median is four. The per capita monthly income of seven of these AHs lies below the poverty line. These AHs qualify as vulnerable under the UDSP LARF. One other has a per capita income only marginally above the poverty line. Table 10: Per capita monthly incomes among affected households (n=13)

MNT Number %

<75,000 6 46 75,000 – 90,600 (poverty line) 1 15 90,600 - <150,000 6 38 150,000 - <200,000 0 0 200,000 - <350,000 0 0 =>350,000 0 0 Total 13 100 No data/Unclear 1 8

25. In this section, data is available for seven of the 14 AHs. Among the four households considered in this analysis, two have two income earners that receive their income from self-employment. The remaining two households receive income from employment, self employment and government support programs. Fifty-nine APs were identified in the census; however, only seven were interviewed for the socio-economic survey. The employment status among the nine sampled adults shown in Table 11 indicates that only one is employed (male). Two females and one male are self-

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 12

employed, and one woman is engaged in unpaid housework. The employed individual works as a janitor/watchman. In most households it is the primary task of men to earn income, while household work was identified as the primary task of women. Table 11: Employment status among adult AP (n=9)

Employment Status Total Men Women

Employed 1 1 0 Self-Employed 7 4 3 Housework 1 0 1 Unemployed 0 0 0 Pensioner 0 0 0 Total 9 5 4

26. In a ranking exercise on household expenditure among the seven sampled households, the first ranked item was food. Electricity and heating fuel were ranked as the second and third most common expenditure items by most sampled households. There was little differentiation between expenditures reported by men and women. Most respondents gave mid level importance to expenditures related to clothing and transportation (4-6), medical (6-7), and low level importance to house repairs (8-9). In all cases, the lowest ranked expenditure was entertainment, indicating that basic household necessities are priority expenditure items for all these households. All households indicated that they have enough food to eat everyday. The majority of households eat three meals each day, with two households eating between two and three meals per day. None of the households surveyed indicated eating more than three meals per day. 27. The following data describes the status of living conditions and well-being among the seven affected households that completed the socio-economic survey. All seven households have electricity and a nearby water source. Two households access water from a kiosk located between 10 and 50m from their residence. One household obtains drinking water from a bowser tank located within a 10 to 50m walking distance from their khashaa, and one procures water from a water vendor (horse drawn cart). Responsibility for collecting water falls mainly to the men and children in the household. Three households reported using a modern stove for cooking, including two with electric stoves. Two households also use a traditional piishin, using both wood and coal for cooking. One household also has a zuukh stove that uses wood and dung. All households rely on dual purpose stoves to meet heating needs. The most common heating fuels are coal and wood and they are purchased at a shop that is more than 1km away for most. In three of the four households men are responsible for ordering and purchasing fuel. In BH003, where the household head is female, the responsibility rests with the woman. 28. In terms of household assets, one household owns three beds, four have two beds, and two have one bed. All households reported owning one TV. None of the surveyed household owns a radio or a computer. Three households own vehicles. 29. One of the households quarters a horse within their khashaa. The male head of household has primary responsibility for tending to the horse. Another household maintains a garden, which will be affected by the subproject. 30. Affected households reported general good health. The only medical problems reported were a leg affliction suffered by one member of BH009 and a chronic heart condition suffered by the head of household BH014. The affected households surveyed seek medical care at government hospitals. Most affected households are within 1 and 5km of the health service they use, with one AP travelling a distance of over 5km to access health services. No AHs reported the use of home remedies or consultation of traditional medical practitioners.

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31. All affected households report that walking is the most common means of transport to school and work. Adults report travel time of between five and 30 minutes when walking to work. Children walk between ten and 30 minutes to school. Expenditures on transportation ranged between MNT 15,000 and 60,000 among the four AH providing data on expenditures. Monthly transportation costs ranged from MNT 15,000 to MNT 60,000. None of the AHs surveyed ranked transport as one of their top three expenditure items. 32. Two out of seven surveyed households report housework as the primary task of women. In the three female headed households the woman is said to assume “all” tasks, including earning income and doing housework. In all households with an adult male member, the primary task of men is earning income. Men and women in the surveyed households have similar perceptions of gender roles (e.g. both men and women see the primary role of men as earning income). In five of the seven AHs surveyed, home related decisions were taken jointly. Only the in the female headed household, was the woman the main decision maker of the house. Fifty percent of households reported that joint decision-making also applied to matters outside the home. 33. None of the seven AHs surveyed reported frequent major disputes in the community. Furthermore, all the surveyed adults indicated that crime did not occur in any form in the community. None of the sample respondents indicated any other conflicts or violence against women. None of the respondents are aware of any CBOs present in the community. 34. The APs were asked about their development needs and priorities. One AH living in a house indicated that public infrastructure to protect them from floods should be a priority. One AH stated that their priority was to have a better heating system and a direct water connection. In general, AHs were interested in improvements in hygiene by providing basic bathing infrastructure. 35. Among the positive impacts of the project both male and female respondents anticipate improvements to the quality of the water supply, as well as increased convenience in accessing water. Some AHs believe that the improved infrastructure resulting from the project will reduce smell and ground contamination. One AH is concerned about losing their possessed land on which they recently built a new garage.

D. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS

36. The objective of this LARP is to stipulate all relevant entitlements, procedures and compensation, relocation and rehabilitation measures due to the affected persons for the acquisition of land under the Bayankhongor subproject, while safeguarding their livelihoods. All provisions of this LARP are in accordance with the Land Acquisition and Resettlement Framework (LARF) for the Project. The policy framework and entitlements for the Project are based on the applicable Mongolian Laws6

and the ADB Policy on Involuntary Resettlement of 1995, as detailed in Sections D and E of the LARF. This section of the LARP for Bayankhongor summarizes the key policy framework provisions of the LARF and presents the entitlement framework for the Bayankhongor subproject. 37. Land acquisition and resettlement by the government for projects in urban areas, as opposed to national scale objects outside urban areas, is based on negotiation and contracts with affected persons according to the Civil Code of Mongolia. There is no right of eminent domain, but only negotiated land acquisition and resettlement. Article 1 of the Civil Code stipulates that the government and APs engage as equal and autonomous

6 Civil Code of Mongolia, 2002; Law of Mongolia on Land, 2002, amendments 2003/04/05/06; Law on

Allocation of Land to Mongolian Citizens for Ownership, 2003, amendments 2005/08

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 14

legal persons and participants in a civil legal relationship in the negotiation and conclusion of contractual agreements on the transfer of affected assets. 38. Article 101 sets out the right to possess, use and dispose of assets in the context of Contract Law as determined in Chapter 15 of the Civil Code. There are 3 modes of legal access to land in Mongolia, possession and use according to the Law on Land and ownership according to the Law on Allocation of Land, all of which involve licensing and registration by state authorities. Owners and possessors of land are entitled to transfer their land title or possession or user license, respectively, through a notarized contract within the provisions of the Law on Allocation of Land (Article 27) and the Law on Land (Articles 35 and 38). The transfer of licenses of possessors requires the approval of the governor of the soum or district. Lessees of land or structures are entitled to a 3 month notice of the termination of a lease according to Article 294.3 of the Civil Code. Non-titled occupants of land are deemed illegal and can be evicted under Article 27.4 of the Law on Land. 39. ADB’s Involuntary Resettlement Policy (IRP) recognizes negotiated LAR as long as there are willing and free buyers and sellers and eligibility and entitlements are clearly defined and agreed. By contrast to Mongolian Law, which does not recognize the eligibility of unlicensed APs, the IRP determines that ‘lack of title is no bar’, which implies that all APs are eligible for entitlements, as stipulated in the LARF for the Project, including licensed APs (owners, possessors or users), unlicensed APs (legalizable or non-titled occupants) and lessees. The eviction of unlicensed APs is a violation of the ADB IRP. Mongolia is in the process of privatization of land and encourages land ownership by Mongolian Citizens in areas designated for land allocation in Land Management Plans. Therefore, an unlicensed occupant of land in areas designated for land allocation is in principle legalizable. The Project Ger Areas in Aimag Towns and the Capital City are designated for Land Allocation. All APs who are unlicensed occupants of land in ger areas designated for land allocation are treated as legalizable under the LARF for UDSP (see below paragraph 41 items ii & iii). This clearly satisfies the fundamental rule of the IRP that ‘no AP should be worse off than without the project’. 40. The Mongolian Law and practice of LAR are at variance with the IRP in several regards: (i) compensation for affected land is based on a government compensation tariff, not market rates; (ii) a depreciation coefficient in the valuation of affected structures is applied; (iii) income and livelihood rehabilitation are not provided; (iv) transaction costs are not included in compensation payments; (v) project internal grievance procedures preceding dispute resolution by governors and the courts are absent; (vi) public consultation and information disclosure is not mandatory, nor widely practiced; (vii) the declaration of an eligibility cut-off date is lacking; and (viii) there are no limitations on commencement of civil works until after completion of all LAR procedures. 41. To establish a land acquisition and resettlement policy framework with clear eligibility and entitlement provisions for the Project which addresses the gaps between local laws or practice and the ADB IRP, the LARF determines a range of detailed measures in its section E. Applicable to the Bayankhongor subproject are the following: (i) The Project will adopt a negotiated LAR practice involving contractual agreements negotiated between APs and the Land Administration Department on the basis of the Civil Code of Mongolia. The following safeguards will be observed:

a) All compensation and allowances will be determined and paid or provided as specified in the contractual agreements.7

7 If feasible, the provision of employment in Project civil works to poor and vulnerable APs, if they desire

so, will be included in the contracts.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 15

b) The APs, regardless of whether they are titled or non-titled, will not be served notices or demand letters regarding claims by the government to their properties.

c) All LAR related notification of APs and negotiation of agreements will be carried

out by the Project staff and their government partners8 in individual as well as in public consultations with the APs. The process of notification and consultations is specified in sections F and H.

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

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

e) Adequate grievance redress mechanisms will be established.

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

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

(ii) All APs will be eligible for compensation and rehabilitation entitlements irrespective of their property status, including unlicensed occupants of land, and of the type of use of their property (residential, commercial, public or community9). (iii) Unlicensed occupants of land in areas designated by GOM for past, present or future land allocation will be treated as legalizable APs and given ownership licenses for the remainder of partially affected land or, in the case of full loss of a plot of land, provided with replacement land and a license of ownership within 3 months of conclusion of a contractual agreement between the government and the AP. They will be registered with the State Administrative Authority in Charge of State Registration of Property Rights.10APs who lose all of their unlicensed land without remaining legalizable land left, but who have licensed land adjacent to the affected unlicensed land and are therefore ineligible for cash compensation, legalizable land or replacement land, will receive preferential treatment for temporary employment with contractors in the civil works construction activities of the subproject. (iv) Affected land will be compensated either at replacement cost based on market rates for comparable land or the applicable government compensation tariff, whichever is higher, or, in the case of full loss of a plot of land, with replacement land, including land preparation and restoration of utility services (electricity, water etc), as applicable. The District Land Administration Department will assist the APs to identify and approve the relocation plot. The loss of 50 percent or more of a plot is considered a full loss eligible for compensation for the entire plot, if the AP so desires. (v) Affected possessors, in case of partial loss of less than 50 percent of their land, will transfer their license for the affected plot to the GOM and retain the possessor license for the remaining plot. Their possessor licenses will not be cancelled or subject to automatic expiration. In case of a full loss of land they will be provided with a replacement plot and ownership licenses with state registration.

8 The key government partners are the officers of the Capital City or Aimag and District or Soum Land

Administration Department and of the Property Relations Agency or other offices in charge of valuation of non-land immovable property. 9 Not applicable if the replacement of public structures (electricity, water supply lines, etc) is covered

under civil works contracts. 10 In the unlikely case of occupation of land by an AP in an area not designated for allocation of land, the AP will be provided with ownership of a new plot in a designated area and given the necessary assistance.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 16

(vi) Affected users of land with use licenses will be provided with replacement plots in similar locations suitable to business operations and new use licenses or, if possible and desired, with a license of ownership, within 3 months of conclusion of a contractual agreement between the government and the AP. (vii) All APs agreeing to receive replacement land or APs with pending license approval for ownership or possession or APs with possession licenses seeking ownership status, will be provided with ownership licenses within 3 months of conclusion of a contractual agreement between the government and the AP and will be registered with the State Administrative Authority in Charge of State Registration of Property Rights. (viii) Affected structures11

will be compensated at replacement cost based on prevailing market rates for comparable types of structures without deduction of depreciation. Materials may also be salvaged by the APs. (ix) In cases of joint property ownership, the written notarized consent of the partners in a common property relationship or of an adult family member will be required. (x) Loss of income will be compensated through short-term financial compensation equivalent to the loss, i.e. for the period of interruption of business or employment. Vulnerable and poor households will also be provided with employment opportunities12

or other assistance. (xi) All relocation, transfer and transaction expenses (fees and duties) will either be waived by government or included in the contract price of the affected properties. (xii) The Project will establish an accessible and responsive project grievance procedure, as indicated in section F. (xiii) ADB IRP information disclosure and public consultation provisions will be observed, as indicated in section E. (xiv) An eligibility cut-off date will be set for each subproject with LAR impact at the time of the AP census and detailed measurement of affected land and property. (xv) The time periods between conclusion of a contractual agreement, with 75 percent payment of compensation, and the permanent acquisition of an affected asset, when the remaining 25% is paid, will be determined as follows: a. Affected plot involving only the moving back of fences and acquisition of a portion of land, without housing structures13

(residential or business): within 2 months. b. Replacement plot with ownership license for full acquisition of entire plot, without housing structures: within 3 months. c. Acquisition of a partial plot with a housing structure, where the structure is to be rebuilt on the remaining plot: within 5 months. d. Full acquisition of entire plot with housing structure, where the structure is to be rebuilt on a replacement plot: within 6 months.

11

Including houses, fences, sheds, latrines, garages and other immovable structures built on affected land. 12

If the required skills are not available, the contractor will provide basic training to the employed APs. 13 Small structures (other than houses) can be rebuilt within the time periods stipulated for partial acquisition of otherwise empty land.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 17

e. Temporarily affected plots will have fences removed and restored at the specific time of construction of pipelines at that location during the civil works period; 2 weeks notice will be given. f. Lessees must be given 3 months notice of termination of their lease in accordance with the Civil Code. (xvi) Civil works shall not commence unless all compensation, relocation and construction activities under section XV a – d have been completed and short-term financial assistance for loss of income has been paid. (xvii) In accordance with the IRP, the design and implementation of the subprojects under UDSP will make every effort to avoid and minimize land acquisition and resettlement impacts, including temporary impacts during construction.14

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

14

In case of, temporary disruption to services (local roads, water, electricity, telephone) these services will be restored within 48 hours or temporary alternative solutions to provide these services for the time of construction impact will be provided.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 18

Table 12: Entitlement Matrix Type of Loss Specification Eligibility Compensation Entitlements

Owner, possessor

15

(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

Partial loss of plot (<50%)

Legalizable occupant of land (1)

Ownership license and State registration for remaining land will be provided by government

16;

All taxes, registration and transfer costs are waived or included in compensation price

Owner, Possessor (2)

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

Legalizable occupant of land (0)

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

LAND (residential/ commercial/ public/ community)

Full loss of plot (=>50%)

Legalizable occupant of land losing all unlicensed land but with adjacent licensed land (3)

Preferential treatment for temporary employment during construction

15

If the remaining land is smaller than 350m2, the AP may opt to receive a new replacement plot instead

of cash compensation and will give up the entire old plot. 16

If the unlicensed AP has occupied more than 700m2 of land (the legal allocation limit per person), the

balance land, if any, may be either owned and registered in the name of a family member or bought from the government at the government land tariff. A landowner already owning 700m

2 may acquire the

balance land as additional possessed land.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 19

Type of Loss Specification Eligibility Compensation Entitlements

Lessee (1)

The AP may chose between the following alternatives: Allocation of plot with ownership license and State registration All taxes, registration and transfer costs are waived or included in compensation price OR Cash refund at rental fee rate and proportionate to duration of remaining lease period

STRUCTURES (residential/ commercial/ public/ community)

17

Moving back of fences

Owner, possessor, legalizable occupant of land (3)

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

Alteration to structure

Owner, possessor, legalizable occupant of land (0)

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

Full loss of structure and/or relocation

Owner, possessor, legalizable occupant of land (5)

Cash compensation for replacement of lost structure at market rate without deduction of depreciation, based on contractual agreement AND Assistance provided by LRCUDD in finding new housing plots

18, and

payment of registration fees. Moving or

relocation of storage containers

Owner, possessor, legalizable occupant of land, lessee (3)

Cash compensation for cost of relocating container outside the ROW, including cost of emptying and restocking container; to be included in contractual agreement

Moving or relocation of ger

Owner, possessor, legalizable occupant of land, lessee (5)

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

Businesses Any business loss due to LAR or construction activities by Project

All entities so affected (1)

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

Other Specification Eligibility Compensation entitlements

17

‘Residential’ refers to any structure used as a private dwelling, including houses and gers. ‘Commercial’ refers to any structure used for business and manufacturing activities, including small shops, factories, offices, workshops and garages. 18

Plots have been identified and allocated to three affected households. A fourth plot identified by the LRCUDD is currently under consideration by the AP. The fifth AP has elected to receive cash compensation.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 20

Type of Loss Specification Eligibility Compensation Entitlements

provisions

Relocation Transport/ transition costs

All entities to be relocated (6)

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

Permanent loss of livelihood

All vulnerable APs so affected (0)

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

Loss of land

All vulnerable APs so affected (7)

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

Vulnerable AP

Loss of structure

All vulnerable APs so affected (7)

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

Temporary disturbance through construction

All affected entities

Avoid, minimize or mitigate as quickly as possible

Unidentified Losses

Unanticipated impacts

All affected entities

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

E. CONSULTATION AND PUBLIC PARTICIPATION

43. APs must be fully informed, closely consulted, and encouraged to participate in any decision making pertinent to land acquisition and resettlement, including the final design of infrastructure facilities, preparation of contractual agreements, determination of prices for assets to be transferred, selection of replacement plots and the restoration of livelihoods. 44. In 2010, individual consultations have taken place with APs along the Bayankhongor subproject’s ROW at the time of field verification and identification of LAR scope based on the detailed technical design of the water supply and sewage pipe lines and of census taking and enumeration of the socio-economic survey. APs were involved in discussions about opportunities to avoid and minimize LAR impact. The majority of APs expressed their appreciation of the subproject and willingness to give up small portions of their properties for compensation to facilitate the construction of the water supply and sewage facilities. Options for legalizing the remaining unlicensed land after surrender of the portion located within the subproject’s ROW were discussed and formulated with unlicensed APs. 45. The draft LARP for the Bayankhongor subproject was disclosed at a community meeting attended by all APs in a public facility in the aimag centre on 23 August 2010 The APs were provided with a Mongolian translation of the LARP. The legal framework

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 21

under the Project LARF, the compensation entitlements and the grievance and monitoring procedures were reviewed and discussed. After clarification of many concerns among APs and a second measurement of various properties, the majority of APs concurred with the compensation strategy indicated in this LARP. Clarification of questions on ownership status for remaining unlicensed land, on land sizes and on compensation modalities has been incorporated into the revised draft LARP, which will be disclosed to the APs in a consultation meeting on 5 November 2010. 46. Individual consultations to prepare and conclude contractual agreements have been ongoing from 23 August 2010 and will continue until all contracts are agreed and signed. The LAR specialists of PMU are supporting LRCUDD and the APs to accomplish the agreements as well as the legalization of unlicensed land. After approval of the final LARP by ADB and GOM, it will simultaneously be disclosed to the APs in a public meeting in Mongolian and published on the ADB website. At the meeting the date, time and venue of disbursement of agreed property transfer prices and other compensation or entitlements will be announced. 47. Additional individual and public consultation meetings will be held throughout implementation of the LARP as required to address any issues. The attendance sheets for AP consultation meetings held during 2010 are provided in Annex 5.

F. GRIEVANCE REDRESS MECHANISM

48. A grievance action form (GAF) to log and follow up AP grievances has been designed (see Annex 6). The Working Group (WG) for the Bayankhongor subproject, the key institution in the grievance redress process, was formed on 04 May 2010 under Resolution 210 of the Governor of Bayankhongor Aimag. 49. For the Bayankhongor Improvement of Basic Urban Services subproject, the subproject Working Groups will serve as the initial committee for grievance redress and will provide a forum `for raising objections and holding discussions to resolve conflicts. An aggrieved AP may submit grievances to any member of the Working Group, who will log a complaint in the GAF and request the chairman to call a meeting, where it will be presented, addressed and resolved within 1 week. The subproject Working Group will record its deliberations and inform the concerned parties within the same week of its findings and recommendations and present these to the Aimag and Soum Governors for action. If the grievance is not resolved within 2 weeks from its lodging, the grievance will be submitted to the Land Administration Department by the Working Group member of LAD and its resolution is recommended to the Aimag Governor for approval and action within 1 more week. If still unresolved within another week the Aimag Governor will seek to resolve the issue and initiate action within another week. If the preceding actors cannot resolve the grievance, it is referred to the court system. Mongolian law and the ADB IRP will guide all decisions. APs and NGOs/CBOs operating in the area shall be actively involved in all stages of the grievance redress procedures. The grievance redress mechanism will include the following steps: Table 13: Grievance mechanism for Bayankhongor Subproject Steps Actors / Actions Timing

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

1 week 1

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

LAD WG submits grievance to LAD 2 LAD addresses grievance, informs AP and proposes resolution to Aimag Governor

1 week

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 22

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

3 Aimag Governor addresses grievance and initiates action for resolution 1 week If grievance is not resolved

4 Grievance is referred to court system Open

G. INSTITUTIONAL FRAMEWORK

50. In the improvement of basic urban services component, the Working Group19

for the Bayankhongor subproject is responsible for the implementation of this LARP. Supported by the PMU, the Bayankhongor PIU through the LAR specialists of PMU assists the Working Group and ensures resettlement safeguard compliance and submission of a satisfactory LARP to PMU and ADB for review and approval prior to any land acquisition or resettlement and the commencement of civil works. 51. A workshop on ‘Land Acquisition and Resettlement in the Implementation of ADB Financed Urban Development Projects in Mongolia for Key Stakeholders of the Urban Development Sector Project’ was held at the Bayankhongor Governor’s Office with concerned government officers, including WG members, AP representatives and other stakeholders of the UDSP subproject in Bayankhongor on 02 May 2010. The participants were trained on the legal framework of the project, including applicable Mongolian Laws, ADB IRP and the UDSP LARF, and the steps of the process of LARP preparation and implementation. 52. The main activities of the WG include the following:

• Participation in public consultation meetings.

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

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

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

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

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

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

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

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

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 23

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

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

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

H. COMPENSATION AND REHABILITATION STRATEGY

54. This section presents the compensation strategy for each type of loss - i.e. land and structures - as well as transaction and relocation costs. The particular circumstances of some APs are also explained. The measurements and compensation rates used are based on the DMS and applicable government rates expressed in unit rates for land, as provided by the Land Relations, Construction and Urban Development Department (LRCUDD) of Bayankhongor Aimag, and the DMS and market rates (without depreciation for age) expressed in unit rates for structures, as provided by the LRCUDD and a qualified property valuation consultant. The documentation received from the LRCUDD and the valuation specialist can be found in Annex 8. A detailed account of the LAR impact and compensation of losses for each individual AP is presented in Table 14. 55. The compensation of affected land will be carried out as follows:

• Two owners (affected household identification numbers BH002 and BH003) of affected land totaling 193.23m2 will be compensated at the current market rate of MNT 6,000 per m2 for Bayankhongor. The total cost of compensation for this land will amount to MNT 1,159,380. These APs will also lose a total of 135.77m2 of adjacent unlicensed land for which they will receive preferential employment treatment in project civil works.

• Two APs (BH001 and BH011) will possess residual landholdings of less than 350m2 (299.73m2 and 312.68m2 respectively) These APs will have the option to receive either cash compensation at market rate for loss of their entire licensed landholdings or a replacement plot with ownership license and State registration at no cost to the APs. These APs will also lose a total of 39.03m2 of adjacent unlicensed land, for which they will receive preferential employment in project civil works.

• A third AP (BH013) will also retain residual landholdings of less than 350m2. She has elected to remain at her current location. This AP will be provided an ownership or possession license and State registration for the remaining portion (344.19m2) of her unlicensed plot at no cost to the AP.

• BH008, the owner of the local informal market, will lose 81.39m2 of the 9284.65m2 unlicensed land occupied by the company. No compensation will be paid for affected unlicensed land. The balance (9203.26m2) will be legalized with a possession license and State registration at no cost to the AP.

• BH009’s 31m2 leased plot falls within the ROW. The AP will receive a replacement plot with possession license and State registration at no cost to the APs.

• Four vulnerable APs (BH012, BH014, BH015 and BH016) residing on the properties of other APs (BH011 in the cases of BH012, BH013 in the cases of

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 24

BH014 and BH015, and BH001 in the case of BH016) will be displaced and will receive new fenced plots with ownership licenses and State registration at no cost to the APs.

56. The compensation of affected structures will be carried out as follows: • An 81m2 affected commercial structure on the property of BH011 will be

compensated at the replacement cost value of MNT 255,265/m2. Total compensation will amount to MNT 20,676,465.

• Four APs (BH001, BH003, BH008 and BH013) losing open pit wooden latrines of between one and five seats (total of eight seats) will be compensated at the at the current market rate for material and labor of MNT 221,296 per latrine seat. Total compensation will amount to MNT 1 770 368.

• Two APs (BH003 and BH013) whose wooden fences totaling 62.8m will need to be removed and rebuilt at their new property boundaries will be compensated at a market unit rate of MNT 12,670 per running meter, amounting to a total of MNT 795,676.

• Three APs (BH00, BH003 and BH011) will be provided the replacement cost value of their 130.2m of affected wooden fences. At a unit rate of MNT 16,670, total compensation will amount to MNT 2,732,213.

• The four vulnerable AP households to be provided new plots will be compensated for the cost of fencing their properties. MNT 5,584,450 will be provided to cover the cost of erecting 335m of fences on the properties. These households will also be compensated for the cost of excavating open pit latrines on their properties. At a unit rate of MNT 221,296, total compensation will amount to MNT 885,184.

• One AP (BH001) with an impacted wooden residential structure of 26.64m2 will be compensated at the rate of MNT 176,900 per m2. The AP will receive total compensation of MNT 4,712,616 for this impact. A concrete shed measuring 10.36m2 on the same property will also be impacted. The replacement value of this structure has been calculated as MNT 1,074, 125 (i.e. MNT 103,680/m2).

• Wooden sheds measuring 4.8m2, 19.89m2, 6.21m2 and 15.81m2 owned by BH003, BH011, BH014 and BH015 respectively will be compensated at the rate of MNT 52,947. Total compensation for the sheds will amount to MNT 2,473,154.

• The 53.3m concrete wall owned by BH008 will be demolished and rebuilt on the new property boundaries. Compensation of MNT 13,675 and MNT 30,767 will be paid for demolition and reconstruction respectively. Total compensation will amount to MNT 2,368,759. Additional compensation of MNT 247,249 will be paid to move the wall’s 13.2m iron gate.

• A 6m iron fence with concrete foundation will have to be moved on the property of BH004. The cost of this has been calculated as MNT 142,386 or MNT 23,731/m.

• A concrete garage owned by BH009 measuring 31m2 located partly within the ROW will have to be removed. The replacement value of the garage has been calculated at MNT 119,425. Total compensation will therefore amount to MNT 3,702,175. The AP (BH009) will not be compensated for land; however the LRCUDD will provide the AP with a new plot.

• One garden measuring 80m2 on the property of BH003 will be affected by the project. Compensation of MNT 160,000 will be paid to replant the garden at a different location within the same property.

• AP BH011 will also lose a 4m2 mixed-material shed. The shed will be compensated at a rate of MNT 26,473/m2 for a total compensation of MNT 99,274.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 25

57. Compensation for business losses will be carried out as follows:

• One AP (BH010) whose tire repair business will be affected during the project’s civil works will be compensated at the rate of MNT 20,000/day for the anticipated seven days of construction disturbance in front of his shop. The rate represents the average revenue per day generated by the business. The employee of the business will continue to receive the 40% commission on this amount to which he is entitled per his agreement with the AP.

58. Compensation for relocation and transportation costs will be carried out as follows:

• The four vulnerable AP households receiving new plots will be provided a relocation allowance of MNT 200,000 to transport belongings to the new plot. Relocating AP households BH001 and BH011 will also receive the allowance.

• One AP whose ger will have to be relocated to a new location on the same plot will be provided an allowance of MNT 45,000 to cover the cost of breaking down and re-erecting the ger.

• Three APs (BH005, BH006 and BH007) with a total of 5 storage containers currently sitting partly within the ROW will be compensated for the cost of moving the containers outside the ROW. A crane will be hired to move each container at a cost of MNT 120,000 per hour for 5 hours. Their lease agreements for the container space will not be affected.

59. Compensation for transaction costs will be carried out as follows:

• For notary services for 6 AP with contract values up to MNT 1 Million at a unit rate of MNT10,000 the project will pay a total of MNT 60,000. For notary services for 10 AP with contract values between MNT 1 and 10 Million at a unit rate of MNT 20,000 the subproject will pay a total of MNT 200,000.

• For the preparation of cadastral maps for 1 AP to renew or acquire new ownership or possession licenses with State registration at a unit rate of MNT 50,000 the project will pay a total of MNT 550,000.

• For service fees for 11 ownership/possession licenses, the project will pay a total of MNT 55,000 at a unit rate of MNT 5,000

• For property rights registration for ownership and possession licenses for 11 AP households, the project will pay MNT 132,000 at a unit rate of MNT 12,000

60. Vulnerable APs have been identified as members of a household either (i)

with income below the poverty line of MNT 90,600 monthly per capita income or (ii) with elderly or disabled heads of household. Vulnerable APs, i.e. any interested adult family member, will receive preferential treatment for temporary employment in the civil works construction activities of the subproject.20 Existing skills training programs run by the aimag Social Welfare and Labour and Department will be made available free of charge to the 17 working age adults in the seven identified vulnerable households.21

20 A Temporary Project Employment Scheme Form has been designed to ascertain APs’ interest in participating in this scheme and to plan their deployment according to the skills and experience indicated in the form (see Annex 7). 21

‘Working age’ includes adults between the ages of 18 and 65.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 26

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

ID No Name of affected entity or head of household

Affected land (m

2)

Property status of affected

land

Compensation of affected land (MNT)

Total licensed

land (m

2)

Total unlicensed land (m

2)

Total land (m

2)

Affected land as

proportion of total land (%)

Type of affected

structure(s)

Size of affected structure

m/m2

Unit cost

(MNT)

Compensation of affected structures

(MNT)

House 26.64 176,900 4,712,616

Concrete shed

10.36 103,680 1,074,125

Wooden fence

82.6 16,670 1,376,942

BH001 Ts. Gonchigjav

379.35

Licensed 2,276,100 379.35 - 379.35 100

Latrine 1 221,296 221,296

BH002 D. Bandi 114

Licensed 84.5m

2

Unlicensed 29.5m

2

507,000 850 29.5 879.53 12.96 Wooden

fence 33.7 16,670 561,779

Wooden fence

43.7 12,670 553,679

Shed 4.8 52,947 254,146

Latrine 1 221,296 221,296 BH003 L. Zesenkhuu 215

Licensed 109m

2

Unlicensed 106.27m

2

652,380 635 106.27 741.27 29

Garden 80 2,000 160,000

BH004 Just Oil, CO., LTD - - - - - Iron fence 6 23,731 142,386

BH005 Ts. Battogtokh - - - - Container

(x3) - - 360,000

BH006 D. Purevdorj - - - - Container - - 120,000

BH007 Ts. Chultem - - - - Container - - 120,000

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 27

ID No Name of affected entity or head of household

Affected land (m

2)

Property status of affected

land

Compensation of affected land (MNT)

Total licensed

land (m

2)

Total unlicensed land (m

2)

Total land (m

2)

Affected land as

proportion of total land (%)

Type of affected

structure(s)

Size of affected structure

m/m2

Unit cost

(MNT)

Compensation of affected structures

(MNT)

Concrete wall (raze)

53.3 13,675 728,878

Concrete wall

(reconstruct) 53.3 30,767 1,639,881

Iron gate 13.2 18,731 247,249

BH008 Bi Enkh Tuguldur CO., LTD 81.39 Unlicensed 81.39 m

2

No cash compensation

but a Possession license for

9203.26m2 lost

unlicensed land

- 9284.65 9284.65 0.88

Latrine 5 221,296 1,106,480

BH009 T, Batzorig 31 Rented

No cash compensation

but an Owner or

possession license for 31m

2 lost

rented land

- 31 31 100 Garage 31 119,425 3,702,175

BH010 G. Tuvshinbileg - See Table 15 - - - - - - - -

Commercial structure

81 255,265 20,676,500

Wooden shed

19.89 52,947 1,053,116

Mixed shed 3.75 26,473 99,274

BH011 B. Tumenchimeg 381.68

Licensed 357 m

2

Unlicensed 24.68 m

2

2,142,000 357 24.68 381.68 100

Fence 47.6 16,670 793,492

New fence 90 16,670 1,500,300

BH012 M. Tseveendorj - -

No cash compensation

but an Owner or

possession license for 500 m

2 new land

- - - - New latrine 1 221,296 221,296

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 28

ID No Name of affected entity or head of household

Affected land (m

2)

Property status of affected

land

Compensation of affected land (MNT)

Total licensed

land (m

2)

Total unlicensed land (m

2)

Total land (m

2)

Affected land as

proportion of total land (%)

Type of affected

structure(s)

Size of affected structure

m/m2

Unit cost

(MNT)

Compensation of affected structures

(MNT)

Move fence 19.1 12,670 241,997

BH013 D. Bayarmaa 100 Unlicensed

No cash compensation

but an Owner or

possession license for 344,19 m

2

remaining unlicensed land

444.19 444.19 22.5 Latrine 1 221,296 221,296

New fence 77.5 16,670 1,291,925

Shed 6.21 52,947 328,801

BH014 D. Sarangerel

No cash compensation

but an Owner or

possession license for 500 m

2 new land

New latrine 1 221,296 221,296

New fence 77.5 16,670 1,291,925

Wooden shed

15.81 52,947 837,092 BH015 Sh. Ganzorig

No cash compensation

but an Owner or

possession license for 500 m

2 new land

New Latrine 1 221,296 221,296

New fence 90 16,670 1,500,300

BH016

G. Sodvoo

No cash compensation

but an Owner or

possession license for 500 m

2 new land

New latrine 1 221,296 221,296

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 29

Table 15: List of affected persons and assets with compensation strategy of Bayankhongor Basic Urban Services Improvement Subproject

ID Number

Name of affected entity or head of household

Compensation of Transaction Costs (MNT)

Daily Business Income

Temporarily Affected

(MNT)

Total Annual

HH Income,

all sources (MNT)

Days of Business

Loss

Compensation of Business Loss (MNT)

HH Size

Per Capita

Per Month Income (MNT)

Vulnerable HH

Compensation of Relocation

and Transportation

Costs (MNT)

BH001 Ts. Gonchigjav 87 000 - 2 160 000 - - 4 45 000 Yes 200 000

BH002 D. Bandi 87 000 - 1 710 000 - - 5 28 500 Yes

BH003 L. Zesenkhuu 87 000 - 4,900,000 - - 4 102,000 No 50,000

BH004 Just Oil, CO., LTD

10 000 - - - - - - -

BH005 Ts. Battogtokh 10 000 - 7 920 000 - 6 110 000 No

BH006 D. Purevdorj 10 000 - no data - 4 no data No

BH007 Ts. Chultem 10 000 - 2 772 000 - 4 115 500 No

BH008 “Bi Enkh Tuguldur” CO., LTD

87 000 - - - - - -

BH009 T, Batzorig 87 000 - 7 940 000 - 5 132 333 No

BH010 G. Tuvshinbileg 10 000 20 000 4 966 000 7 140 000 4 103 458 No

BH011 B. Tumenchimeg 87 000 - 9 090 000 - 8 94 687 No 200 000

BH012 M. Tseveendorj 87 000 - 3 450 000 - 5 57 500 Yes 200 000

BH013 D. Bayarmaa 77 000 - 860 000 - 4 17 916 Yes

BH014 D. Sarangerel 87 000 - 1 864 000 - 2 77 000 Yes 200 000

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 30

ID Number

Name of affected entity or head of household

Compensation of Transaction Costs (MNT)

Daily Business Income

Temporarily Affected

(MNT)

Total Annual

HH Income,

all sources (MNT)

Days of Business

Loss

Compensation of Business Loss (MNT)

HH Size

Per Capita

Per Month Income (MNT)

Vulnerable HH

Compensation of Relocation

and Transportation

Costs (MNT)

BH015 Sh. Ganzorig 87 000 - 2 750 000 - 5 45 883 Yes 200 000

BH016 G. Sodvoo 87 000 - 790 000 - 3 20 000 Yes 200 000

997 000

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 31

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

ID Number Name of affected entity or head of household

Notary Fee Cadastral

Map Service Fees

Property Rights

Registration Total

BH001 Ts. Gonchigjav 20 000 50 000 5 000 12 000 87 000

BH002 D. Bandi 20 000 50 000 5 000 12 000 87 000

BH003 L. Zesenkhuu 20 000 50 000 5 000 12 000 87 000

BH004 Just Oil, CO., LTD 10 000 - - - 10 000

BH005 Ts. Battogtokh 10 000 - - - 10 000

BH006 D. Purevdorj 10 000 - - - 10 000

BH007 Ts. Chultem 10 000 - - - 10 000

BH008 Bi Enkh Tuguldur LTD

20 000 50 000 5 000 12 000 87 000

BH009 T, Batzorig 20 000 50 000 5 000 12 000 87 000

BH010 G. Tuvshinbileg 10 000 - - - 10 000

BH011 B. Tumenchimeg 20 000 50 000 5 000 12 000 87 000

BH012 M. Tseveendorj 20 000 50 000 5000 12 000 87 000

BH013 D. Bayarmaa 10 000 50 000 5000 12 000 77 000

BH014 D. Sarangerel 20 000 50 000 5000 12 000 87 000

BH015 Sh. Ganzorig 20 000 50 000 5000 12 000 87 000

BH016 G. Sodvoo 20 000 50 000 5000 12 000 87 000

Total 260 000 550 000 55 000 132 000 997 000

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 32

I. LAR BUDGET, FINANCES AND DISBURSEMENT

61. Table 17 shows the budget for LAR in the Bayankhongor subproject, based on the compensation strategy discussed in Section H. It provides the unit rates applied in MNT and USD, based on the DMS and valuations of the LRCUDD and a property valuation specialist (Annex 8), the number of units affected and the compensation and relocation costs in MNT and USD. The valuation of land is based on government unit rates, as these are higher than local market rates. The valuation of structures is based on market rates for material, labor, transport and taxes without depreciation for the age of structures, as determined by the valuation specialist. Transaction costs have been indicated by officers of the LRCUDD and a local notary public. Business loss costs are based on the income estimates of the APs, who do not keep records of their earnings. Relocation allowances will be paid according to market rates for basic labor. The cost of administration (stationary, computer consumables, secretarial services, etc.) has been determined at 4 percent of the cost of compensation and relocation (items 1-5, Table 17). The contingency cost at 10 percent of the cost of items 1 to 6 is intended to cover unanticipated impacts and costs arising during LARP implementation. Table 17: Budget for Land Acquisition and Resettlement in the Bayankhongor Basic Urban Services Improvement Subproject

Asset Type Unit Unit Rate Number of Units

Cost

MNT USD MNT USD

1. Land

Residential, Institutional and Commercial

m2

6,000 5 930 5.577.480 2,510

Subtotal 5.577.480 2,510

2. Structures

Commercial Structure

m2

255,265 194 81 20,676,465 15,714

Wooden fence (move)

m 12,670 10 62.8 795,676 605

Wooden fence (replaced or new)

m 16,670 13 499 8,316,663 6,321

Wooden house m 176,900 134 27 4,712,616 3,582

Concrete shed m 103,680 79 10 1,074,125 816

Mixed material shed m2 26,473 20 4 99,274 75

Wooden shed m 52,947 40 47 2,473,154 1,880

Concrete wall (demolition)

m 13,675 10 53 728,878 554

Concrete wall (construction)

m2

30,767 23 53 1,639,881 1,246

Iron fence with concrete foundation

m2

23,731 18 6 142,386 108

Iron gate m 18,731 14 13 247,249 188

Concrete garage m 119,425 91 31 3,702,175 2,814

Latrine m2

221,296 168 12 2,655,552 2,018

Garden m2

2,000 2 80 160,000 122

Subtotal 47,424,094 36,042

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 33

Asset Type Unit Unit Rate Number of Units

Cost

MNT USD MNT USD

3. Transaction Costs

Notary Fees (1) Lump sum 10,000 8 6 60,000 46

Notary Fees (2) Lump sum 20,000 15 10 200,000 152

Cadastral map survey

Lump sum 50,000 38 11 550,000 418

Service Fees Lump sum 5,000 4 11 55,000 42

Property Rights Registration

Lump sum 12,000 9 11 132,000 100

Subtotal 997,000 758

4. Temporary Business Disruption

Business loss Days 20,000 15 7 140,000 106

Subtotal 140,000 106

5. Other Provisions

Rental of crane to move containers

Cost/hr 120,000 91 5 600,000 456

Relocation allowance (estimate)

Cost 200,000 152 6 1,200,000 912

Relocation of ger w/in property (estimate)

Cost 45,000 34 1 45,000 34

Subtotal 1,845,000 1,402

Subtotal of Compensation Measures

55,983,574 42,548

6. Administration and supervision

4% of 1-5 2,239,343 1,702

7. Contingencies 10% of 1-6 5,822,292 4,425

Grand Subtotal 64,045,208 48,674

8. External Monitoring (Loan)

GRAND TOTAL 64,045,208 48,674

62. The Grand Subtotal entails costs incurred for compensation of land, structures, transaction costs, business losses and relocation, as well as administration and supervision and contingencies. This cost will be covered by the State Government (MRTCUD) budget as indicated in the Detailed Cost Estimate and Financing Plan of the Project RRP and will be transferred to the PMU. The PMU will allocate 100% of the cost of compensation at replacement cost and allowances to the Bayankhongor Aimag Government before LARP implementation, which will be directly deposited to the bank account of the Bayankhongor Aimag LRCUDD for disbursement. LRCUDD will prepare a resolution for disbursement of compensation and rehabilitation funds for approval by the Governor of Bayankhongor Aimag. The cost for external monitoring and evaluation will be covered from Project loan funds and managed by the PMU for the entire Project. 63. The Bayankhongor PIU will work with the Bayankhongor Aimag LRCUDD to manage the process of formal contractual agreements with APs and disbursement of compensation. After having concluded contractual agreements about the transfer of affected assets from the APs to the government, the Bayankhongor Aimag LRCUDD will consolidate all financial commitments of the contracts and refer these to the PIU and PMU. The PMU will initiate the transfer of funds to the LRCUDD. Payment of 75% of compensation will be made within 1 month of the time of conclusion of contractual agreements. The remaining 25% will be paid at the time of vacating of the affected

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 34

assets.22 Disbursement will be carried out in the office of the Bayankhongor PIU. No land

will be acquired by the government or handed over to the PIU for commencing construction works without full payment of compensations due to the APs. However, in case of a dispute, the agreed amount of compensation will be pledged in the names of the concerned APs, pending a resolution through the grievance mechanism or decision by the courts. In such cases, the Project will hold all construction works at the disputed property until the final settlement of the case, but may commence civil works at all undisputed locations.

J. MONITORING AND EVALUATION

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

i. Internal Monitoring

65. The Bayankhongor PIU conducts its own internal monitoring of LARP implementation and submits monthly reports to the PMU. The PMU includes the results of internal LAR monitoring in its quarterly reports to the ADB.23

The Project mid-term review will include a separate section on the progress of LARP implementation. Upon completion of LAR activities in the Bayankhongor subproject, the Bayankhongor Aimag Government will prepare a resettlement completion report for submission to ADB. Table 18 provides the format for the monthly LAR monitoring reports24. 66. The objectives of internal monitoring are to ensure:

(i) Proper execution of responsibilities of key stakeholders;25

(ii) Protection of the rights of APs under Mongolian laws, ADB IRP, the LARF and this LARP;

(iii) Adequate and prompt payment of compensation; and (iv) Timely grievance redress.

Table 18: Internal Monitoring Form Subproject site

Total no. of AP households (HH)

LAR Activities

Month Comments

22 An exception will be made in the case of alteration or construction of houses and other structures, when the first payment of compensation proves insufficient. The RPIC or Working Group will approve the release of the remaining 25 percent or part thereof to ensure timely completion of alterations or construction. 23

As and when necessary to report significant progress, implementation issues, or status of earlier identified problems. 24

Note that Table 18 provides an Internal Monitoring Form template including all LAR Activities. At the time of writing, some activities have been completed, but are not indicated as such on the template. 25 City Government of Ulaanbaatar, Aimag Governments, DOR, Land Administration Department, Property Relations Agency, Citizens Representative Khural of Capital City or Aimags as well as of Districts and Soums, District/Soum Governor, Khoroo/Bagh Governor, RPIC, PMU, PIU, CBO and NGO, AP representatives.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 35

1 2 3 4 5 6

Part A. Preparation/Procedural steps

Identification of LAR scope (�)

Field verification and modification of technical design (�)

Formation and meetings of WG (�)

Approval of technical design (�)

Notification of individual APs and of cut-off date

Land and valuation surveys (�)

Census (no. AP HH)

Socio-economic survey (no. AP HH)

Preparation of draft LARP (�)

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

Finalization of LARP (�)

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

Endorsement by MRTCUD (�)

ADB review and approval (� )

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

Part B. Implementation

Conclusion of contractual agreement (no. AP HH)

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

Acquisition of land and other assets (no.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 36

LAR Activities

Month Comments

1 2 3 4 5 6

AP HH)

Provision of new plots for AHs (no.)

Construction of new houses (no. and m

2)

Relocation of AHs to new house (no. and timing)

Commencement of civil works (�) and provision of preferential employment (no. of APs and days of work)

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

ii. External Monitoring and Evaluation

68. The main objective of external monitoring and evaluation is independent concurrent and ex-post evaluation of LAR in the Project as a whole to (i) assess the effectiveness, impact and sustainability of LAR measures, (ii) determine whether safeguard compliance has been met, and (iii) learn strategic lessons for future policy formulation and planning. The PMU will be responsible for engaging an EMA, which will investigate and assess LARP implementation in each subproject, including Bayankhongor, over a three year period and regularly report to the PMU and ADB. The EMA will have a total of 5 inputs (Baseline, 6 months, 12 months, 24 months and 36 months) at 8 subproject sites. The TOR are included in Annex 4 of the LARF. 69. External monitoring will be carried out biannually during the implementation of LARPs and its results will be reported to the PMU and ADB in semi-annual reports at the end of each input. The resettlement specialists of the project implementation consultant’s team will review and discuss the external monitoring design with the EMA. The external monitoring process will include the following:

• Review and verification of the internal monitoring reports of PMU;

• Review and augmentation26 of the socio-economic baseline surveys, if necessary;

• Identification and selection of impact indicators;

• Impact assessment through quantitative and qualitative surveys;

• Assessment of whether compensation was adequate to replace losses;

• Assessment of business losses and whether compensation was adequate;

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

• Assessment of adequate relocation and rehabilitation of households;

26 The external monitor will review the LARPs to ensure they contain adequate baseline data; otherwise, the monitor should conduct further baseline investigations prior to commencement of resettlement.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 37

• Assessment of whether measures for vulnerable APs were adequate;

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

• Assessment of APs degree of satisfaction with resettlement implementation;

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

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

• Assessment of consultation with local stakeholders

• Recommendation of LAR process modification and adaptation measures;

• Lessons learned for future resettlement policy formulation and planning; and

• All data collection and analysis will be gender disaggregated.

70. Among the key indicators will be the following27:

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

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

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

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

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

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

(vii) Implementation and effectiveness of income restoration measures;

(viii) Effectives and fairness of grievance redress mechanisms;

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

(x) Adequacy of resettlement funds and results of financial audits.

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

K. IMPLEMENTATION SCHEDULE

72. The implementation schedule indicating the timeline for activities in the design and implementation of the Bayankhongor subproject LARP is shown in Table 19. Table 19: LARP Implementation Schedule for the Bayankhongor Subproject

27 The ADB ’Handbook on Resettlement, A Guide to Good Practice’ and ‘Handbook for Incorporation of Social Dimensions in Projects’ will be consulted.

LARP for the Bayankhongor Basic Urban Services Improvement Subproject 38

2010 2011 LARP ACTIVITIES

04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07

Identification of LAR scope

Field verification and modification of technical design

Formation and meetings of WG

Approval of technical design

Notification of individual APs and of cut-off date

Land and property measurements and valuation surveys

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

Preparation of draft LARP

AP consultation & disclosure of draft LARP

Revision of draft LARP

AP consultation: disclosure of revised draft LARP

Endorsement by MRTCUD & Bayankhongor Aimag Government

ADB review and approval

Disclosure of approved LARP on ADB website and in AP community

Funding for LAR compensation

Conclusion of contractual agreements

AP consultation: modalities / timing

Disbursement of compensation

Acquisition of land and other assets

Commencement of civil works

Internal Monitoring

External monitoring and evaluation

1st

M&E

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

ANNEX 1: Detailed Technical Design Map for LAR at Bayankhongor subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

ANNEX 2: Location Mapping and Photos

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

ANNEX 3: Public Notice of Cut-off Date for Bayankhongor Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

Notice to the Residents of the Ger Area of Bayankhongor City, Bayankhongor Aimag

Within the framework of the Urban Development Sector Project funded by the Asian Development Bank it is planned to construct water supply and sewage pipelines in the ger area of Bayankhongor city. Under the ADB Resettlement Policy of 1995, new settlement and construction of new structures of the residents with properties (land and immovable structures) in the Right of Way of the pipeline and thus directly affected by land acquisition for its construction will be stopped and a cut-off date is being declared as of 03 May, 2010. Eligibility of persons and households will only be granted for their affected land and structures located in the Right of Way of the pipeline before the cut-off date. Any persons moving into and occupying land in the Right of Way of the pipeline on or after 03 May, 2010 will not be eligible for compensation, relocation and rehabilitation measures by the project. Alterations to affected land and structures or construction of new structures in the Right of Way of the pipeline undertaken on or after 03 May, 2010 not be eligible for compensation, relocation and rehabilitation measures by the project. The Affected Persons eligible for benefits under the ADB Policy will be contacted by staff of the Land Affairs, Construction and Urban Development Department of Bayankhongor Aimag and of the UDSP over the coming weeks and consulted throughout the land acquisition and resettlement process. Director of Land Relations, Construction and Urban Development Department D. Altangerel

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

ANNEX 4: LRCUUD Notice of Bayankhongor Subproject to Individual Affected Households

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

ANNEX 5: Attendance Sheets of Public Consultation Events for the Bayankhongor Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

ANNEX 6: Grievance Action Form (GAF) Name: _______________________________________________________ Address: _____________________________________________________ Phone: ____________________________________ Date: ____________________ Project site: ________________________________ District: ____________________________________ Aimag/City: ____________________________ Name and position of recipient: ____________________________________________ Date of last disclosure meeting: ____________________________________________ Category of grievance:

Legal Technical

Financial Social

Administrative Other

Item Description Name, position and signature of

person(s) responsible:

AP: Date:

Grievance

Recipient: Date:

Resolution Officer in charge: Date:

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

Action taken Officer in charge: Date:

Follow up Officer in charge: Date:

Comments, observations

Officer in charge: Date:

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

ANNEX 7: Temporary Project Employment Scheme Form From: PIU Bayankhongor

AP name:

Address:

AP ID no:

Your household is eligible for preferential treatment for temporary employment with the contractors undertaking civil works construction activities for the UDSP at your subproject site. You are eligible because you have been identified either as: A vulnerable affected household with income below the poverty line of MNT 90,600 monthly per capita income or with elderly or disabled heads of household; or An affected household losing unlicensed land to the project without remaining legalizable land. The UDSP will be able to provide you with temporary employment at a skills level commensurate with your education and experience in the construction activities for the subproject in your Khoroo/Bagh if any of your adult household members are interested in participating in this AP Temporary Project Employment Scheme. Please fill in the below information required and return this signed form to our project staff. Name(s) of person(s) intending to participate:

Education:

Skill training:

Work experience:

Years of employment:

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

� Yes � No Signature: ____________________________________________ Date: ____________________________________________

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

ANNEX 8: Detailed Measurement Survey and Valuation of Affected Land at the Bayankhongor Subproject by LRCUDD Land Valuation

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

Total land

/m2/ Size of affected land

/m2/ #

Name ID number Address Type of

Occupation Total Licensed Unlicensed Licensed Unlicensed

Value of possessed

land

Valuation of owned

land Explanation

1 Ts. Gonchigjav

BH3169819 BU57093011

Tsahir 7-7-19

Owned 379.35 379.35 - 379.35 - - 2 276 100

Previous cadastral map has difference with current land size. Fence, house, storage, latrine are affected.

2 D. Bandi BH3212253 BP82052114

Tsahir 7-12-21

Owned 879.53 850 29.5 84.5 29.5 - 507 000

Previous cadastral map has difference with current land size, need to build new fence between two fences.

3 L. Zesenkhuu 99864275, 96440504

BH3141078 BE58052902

Tsahir 7-12-20

Owned 741.27 635 106.27 109 106.27 - 652 380 Fence, garden, shed, latrine

4 Just Oil, CO., LTD 99024420

0320000484

Right side of

Western regional

trade centre

- - - - - Outside improvement /fence/

5 Ts. Battogtokh 99106468

BE80120508 BH3213633

Tsahir 7 bag,

Trade centre

Rented - - - - - - - 3 container inside the trade center area

6 D. Purevdorj BB73110803 Tsahir 7 Rented - - - - - - - Container

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

Total land

/m2/ Size of affected land

/m2/ #

Name ID number Address Type of

Occupation Total Licensed Unlicensed Licensed Unlicensed

Value of possessed

land

Valuation of owned

land Explanation

99448919 BH3161482 bag, Trade

centre 2-26-2

inside the trade center area

7 Ts. Chultem

BH3154366 BH3154366

Tsahir 7 bag,

Trade centre 1-

15-2

Rented - - - - - - - Container inside the trade center area

8 “Bi Enkh Tuguldur” CO., LTD

-

Tsahir bag,

Trade centre

Unlicensed 9284.65 - 9284.65 - 81.39 - - Concrete wall, iron gate, latrine

9 T, Batzorig 88025505

AU70031174 BH3208380

Tsahir -7 bag,

Trade centre

Rented 31 - 31 - 31 - - Garage inside the trade center fence

10 G. Tuvshinbileg 99125085

BH31543448 BE70111111

Tsahir 7 bag,

Trade centre

Rented - - - - - - Tire repair shop outside of trade center

11 B. Tumenchimeg 95959509

BH3169367 BE68083008

- Possessed

381.68 357 24.68 357 24.68 2 142 000 - Fence, wooden shed

12 M. Tseveendorj 99642138

BH3186268

On north side of

Tsahir 7 bag,

Trade centre

guard - - - - - - Guard for Tumenchimeg’s property

13 D. Bayarmaa VG70022306 - 444.19 - 444.19 - 100 - - Less plot

14 D. Sarangerel BT74043009

Tsahir 7-12-24

- - - - - - - - Shed, ger, latrine at Bayarmaa’s

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

Total land

/m2/ Size of affected land

/m2/ #

Name ID number Address Type of

Occupation Total Licensed Unlicensed Licensed Unlicensed

Value of possessed

land

Valuation of owned

land Explanation

plot,

15 Sh. Ganzorig BE57120411 - - - - - - - -

Shed, ger, latrine at Bayarmaa’s plot,

16 G. Sodvoo BE86111615 7-7-21 - - - - - - - - New plot

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

Property Valuation

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

#

AP #

AP Name ID number Address Valuated property

Size of Structure

Unit Cost (MNT)

Size of Plot (m2) /

Length of

Fence (m)

Property Value

1

House

wooden house 3.7 x 7.2 x 2.4m, with wooden ceiling, 176,900 26.64 4,712,616

2

Concrete shed

mould with size 2.8 x 3.7 x 2.4 m, no window, no floor, roof was made by iron and wood 103,680 10.36 1,074,125

3 New fence wooden- 82.6m 16,670 82.6 1,376,942

4

1 Ts. Gonchigjav

BH3169819 BU57093011

Tsahir 7-7-19

latrine wooden 221,296 1 221,296

5 2 D. Bandi

BH3212253 BP82052114

Tsahir 7-12-19

To build new fence wood-33.7m 16,670 33.7 561,779

6 Move fence wooden-43.7m 12,670 43.7 553,679

7 Move shed wooden- 1.5 x 3.2 x 2m 52,947 4.8 254,146

8 Latrine wooden 221,296 1 221,296

9

3 L. Zesenkhuu BH3141078 BE58052902

Tsahir 7-12-20

Garden

8 x 10m, to develop new ground and put soil 2,000 80 160,000

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

#

AP #

AP Name ID number Address Valuated property

Size of Structure

Unit Cost (MNT)

Size of Plot (m2) /

Length of

Fence (m)

Property Value

10

4 Just Oil Co LTD

0320000484 Right side of Trade centre

Move fence iron bar with concrete basement-6m 23,731 6 142,386

11 Take down concrete wall 53.3m 13,675 53.3 728,878

12 Building concrete wall

length-53.3m, height-1.8m 30,767 53.3 1,639,881

13 Move iron gate

3 iron gate with length 13.2m 18,731 13.2 247,249

14

8 “Bi Enkh Tuguldur” CO., LTD

Tsahir bag, Trade centre

Move latrine 5 seats 221,296 5 1,106,480

15 9 T, Batzorig

BH3208380 AU7003174 Tsahir bag, Trade centre

Garage Concrete- 6.2 x 5 x 2.5m 119,425 31 3,702,175

16 Move wooden shed 3.9 x 5.1 x 2m 52,947 19.89 1,053,116

17

Move iron/wooden shed

1.5 x 2.5 x 1.6m 26,473 3.75 99,274

18 Commercial house 8.1 x 10 m 81 255265 20,676,465

19

11 B. Tumenchimeg

BH3169367 VE68083008

Move wooden fence 47.6m 16,670 47.6 793,492

20 12 M.Tserendorj BE68020312

Tsahir 7 bag, north side of trade centre

New fence 90m 16,670 90 1,500,300

LARP for the Bayankhongor Basic Urban Services Improvement Subproject

#

AP #

AP Name ID number Address Valuated property

Size of Structure

Unit Cost (MNT)

Size of Plot (m2) /

Length of

Fence (m)

Property Value

21 latrine wooden 221,296 1 221,296

22 13 D. Bayarmaa VG70022306

Tsahir-7-12-24 Move fence

19.1m, wooden 12,670 19.1 241,997

23

latrine wooden 221,296 1 221,296

24 14 D. Sarangerel BT74043009

New fence 77.5m 16,670 77.5 1,291,925

25

Shed 52,947 6.21 328,801

26

latrine wooden 221,296 1 221,296

27 15 Sh. Ganzorig VE57120411

New fence 77.5m wooden 16,670 77.5 1,291,925

28

Wooden house 5.1 x 3.1 m 52,947 15.81 837,092

29

latrine wooden 221,296 1 221,296

30 16 G. Sodvoo BE86111615 Tsahir7-7-21

New fence 90m woodem 16,670 90 1,500,300

31

latrine wooden 221,296 1 221,296

Total

47,424,094