Resettlement Planning Document

The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

Resettlement Plan Document Stage: Final Project Number: 37697 October 2009

MON: Urban Development Sector Project

Prepared by the Ministry of Roads, Transport, Construction and Urban Development

L2301-MON: URBAN DEVELOPMENT SECTOR PROJECT

Land Acquisition and Resettlement Plan for the Erdenet Basic Urban Services

Improvement Subproject

Ministry of Roads, Transport, Construction and Urban Development Ulaanbaatar, Mongolia

October 2009

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LETTERS OF CONCURRENCE BY THE GOVERNMENT OF MONGOLIA

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Unofficial translation

GOVERNOR OF ORKHON AIMAG, MONGOLIA

213900 Erdenet, Orkhon Aimag, Friendship square-1,

UBD-020/83, tel: (03-352) 2-55-90 fax: /01-352/ 2-26-12

Our Ref # 1/1740

dated 2009.10.09

TO THE PROJECT MANAGEMENT UNIT OF “L2301-MON: URBAN DEVELOPMENT SECTOR PROJECT”

It is notified that the Land Acquisition Resettlement Plan for the subproject Improvement of Basic Urban Services in Erdenet City under the ADB funded L2301-MON: Urban

Development Sector Project was reviewed. We are pleased to inform you to process the further actions according to the plan.

GOVERNOR OYUNBAT.D

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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, Transport, 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 = $0.0007031

$ 1.00 = MNT1,422 Exchange rate of 22 May 2009

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DEFINITION OF TERMS Affected Household: All persons residing under one roof and eating from the same kitchen, who are adversely affected by the Project, or any of its components; may consist of a single nuclear family or an extended family group

Affected People: Any person affected by loss of assets or income due to Project-related changes in the use of land, water or other natural resources

Compensation: Cash or in-kind payment of the replacement cost of an asset lost due to Project-related impacts

Entitlement: Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation, which are due to affected people, depending on the nature of their losses, to restore their economic and social base

Host Population: Community residing near the area where the APs are relocated

Income Restoration: Reestablishment of income sources and livelihoods of APs

Involuntary Resettlement: Full or partial, permanent or temporary physical displacement (relocation, loss of residential land or shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a consequence of development projects, compelling APs to rebuild their lives, incomes and asset bases

Land Acquisition: The process whereby a person is compelled by a government agency to acquire all or part of the land a person owns or possesses to the ownership and possession of the government agency for public purpose in return for compensation

Rehabilitation: Compensatory measures provided under the ADB Policy Framework on Involuntary Resettlement other than payment of the replacement cost of acquired assets

Relocation: The physical resettlement of an AP from her/his pre-Project place of residence

Replacement Cost: The value determined to be fair compensation for various types of agricultural and residential land, crops, trees, and other commodities based on current market rates; the cost of rebuilding houses and structures at current market prices of building materials and labor, without depreciation or deductions for salvaged building material

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

Temporary Land Use Impacts: When land outside the proposed ROW is required temporarily to carry out construction, persons may be affected in terms of temporary land loss, damage to attachments or disruption of living or business conditions, for which compensation or mitigation is required to offset such impacts

Usufruct: The right to use and profit from land belonging others or a larger social entity, such as a tribe, community of collective

Vulnerable Groups: Distinct group of people (poor, elderly, disabled and female headed households) who may suffer disproportionately from resettlement effects

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LOCATION MAP: ERDENET BASIC URBAN SERVICES IMPROVEMENT SUBPROJECT

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CONTENTS

Letters of Concurrence by the Government of Mongolia ............................................................... ii Abbreviations .................................................................................................................................v Definition of Terms........................................................................................................................ vi Location Map: Erdenet Basic Urban Services Improvement Subproject ..................................... vii Contents...................................................................................................................................... viii Executive summary....................................................................................................................... ix A. Introduction .....................................................................................................................1 B. Scope of Land Acquisition and Resettlement .................................................................1

i. Affected People ..............................................................................................................2 ii. Affected Land..................................................................................................................4 iii. Affected Structures .........................................................................................................5 iv. Affected Livelihoods........................................................................................................6 v. Level of impact severity ..................................................................................................6

C. Socioeconomic Profile of the Affected Households ........................................................6 D. Objectives, Policy Framework and Entitlements...........................................................13 E. Consultation and Public Participation ...........................................................................18 F. Grievance Redress Mechanism....................................................................................19 G. Institutional Framework.................................................................................................20 H. Compensation and rehabilitation strategy ....................................................................21 I. LAR Budget, Finances and Disbursement....................................................................38 J. Monitoring and Evaluation ............................................................................................40

vi. Internal Monitoring ........................................................................................................40 vii. External Monitoring and Evaluation ..............................................................................42

K. Implementation Schedule .............................................................................................43 Annex 1: Detailed Technical Design Map for LAR at Erdenet subproject....................................44 Annex 2: Cut-off date notification for Erdenet subproject.............................................................60 Annex 3: Notification of APs for UDSP subprojects .....................................................................62 Annex 4: Attendance sheets for AP consultation meetings held during 2009..............................64 Annex 5: Grievance Action Form (GAF) ......................................................................................69 Annex 6: Detailed Measurement Survey and Valuation of Affected Land at the Erdenet Subproject by the Orkhon Aimag Land Relations, Construction and Urban Development Department ..................................................................................................................................71 Annex 7: Detailed Measurement Survey and Valuation of Affected Structures at the Erdenet Subproject by the Land Valuation Specialist of the BESGE Company in cooperation with the LRCUDD ......................................................................................................................................75 Annex 8: UDSP AP Temporary Project Employment Scheme Form...........................................82

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EXECUTIVE SUMMARY This Land Acquisition and Resettlement Plan (LARP) for the Erdenet 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 Orkhon 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.

Subproject site and ROW: The subproject will improve the water supply and sewage system of Erdenet through (i) the drilling and protection of a new well field with 3 boreholes, (ii) 24.44 km water transmission line to bring the water to 2 new reservoirs of 1000 m3 each above the ger area, (iii) 10.02 km of water distribution pipelines, (iv) 5.2 km sewage pipelines, (v) 30 new water kiosks along the main water lines, and (vi) 10 connection boxes to allow individual water connections in the future. The new water supply system will benefit 6675 households, including 3229 that are considered to be poor. Roughly 47.2% of all poor households living in Erdenet are located in the subproject area. The right of way (ROW) of the pipelines, which traverse the subproject ger areas in various directions, has a ROW width varying between 5m and 10m. In order to minimize resettlement impact, the standard trench width of 10m was reduced to 5m in several densely settled sections in accordance with the Construction Standard and Rules of Mongolia for Water Supply, External Networks and Structures BNBD 40-02-06.

Scope of LAR impact: Only some the water distribution and transmission lines and some of the sewage pipelines will involve land acquisition and resettlement (LAR); the other project components will be constructed on public land. A total of 51 households will be affected by LAR, including 212 affected persons (APs), 106 male and 106 female. 30 of the households are vulnerable due to incomes below the poverty line, including 5 disabled and 2 aged heads of household. 2 vulnerable affected households require relocation due to the loss of full plots. 6 households are female headed. 46 households will lose a total of 4514m2 of residential land, 44 of which are partial losses. 1 household will lose 38m2 of commercial land. The total loss of land will be 4552 m2. Of the total of 47 APs affected by land loss, 18 lose owned plots, 4 possessed plots and 30 unlicensed legalizable plots. 5 of these APs occupy both licensed and unlicensed plots. A total of 76 residential structures will be affected, including 1 house and 2 gers, 42 fences (1409.5m), 8 latrines, 2 defunct small shops, as well as various other small structures. In addition, 8 APs from 7 households operating 9 commercial establishments will experience short-term business losses. 4 of these do not experience loss of land. Temporary occupation or disturbance of land due to construction is not expected.

Indigenous people and gender impact: Indigenous people, i.e. tribal communities existing outside the cultural and legal mainstream of Mongolian society, are not present in the Erdenet subproject site. Therefore, the ADB Policy on Indigenous People will not be triggered by this subproject. Adverse differential gender impact by the Erdenet 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 Erdenet subproject are summarized in the Entitlement Matrix in Table 12 of this LARP.

1Civil 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

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Consultation and grievance redress: Information, consultation and participation of APs are ensured through individual and public meetings throughout the LARP preparation and implementation process. To date two public meetings to prepare the APs for land acquisition and to disclose and discuss the draft LARP were held in September 2009. A four-step grievance mechanism with a clearly defined timeline of 5 weeks for each case has been established and a Grievance Action Form initiating and tracking the grievance process for each complaint prepared.

Institutional arrangements and monitoring: The Working Group (WG) for the Erdenet subproject, formed on 20 May 2009 under Resolution 161 of the Governor of Orkhon Aimag, is responsible for the implementation of the Erdenet subproject LARP. With the support of the PMU, the Erdenet 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 Erdenet PIU, is responsible for adequate supervision of the implementation of subproject LARPs. The PMU will be responsible for reporting the progress in implementing the LARP to the MRTCUD and ADB. Monitoring of compliance with the LARP and the LARF during implementation is carried out by the Erdenet 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.

• 18 owners and 4 possessors of affected land totaling 1,761m2 will be compensated for partial (17) and full (1) land loss at the current government rate of MNT 8,000 per m2 for the Erdenet ger areas. The total cost of compensation for this land will be MNT 14,088,000.

• The remaining portion of occupied unlicensed land of 24 APs totaling 1826m2 will be legalized by providing the APs with licenses and state registration.

• One AP experiencing the full loss of a plot of 277m2 of unlicensed land will receive a replacement plot with ownership license and state registration.

• One AP losing a timber house of 60m2 will be compensated at a unit rate of MNT 258,640 totaling MNT 15,518,400.2

• 39 APs, whose fences totaling 1301.39m will need to be removed and rebuilt at their new property boundaries, will be compensated at a market unit rate of MNT 5,000 per running meter to cover the labor cost, amounting to a total of MNT 6,506,950. 3 APs require both moving of and improvements to their fences of a total length of 108.1m, which will cost MNT 102,695 with a unit rate of MNT 9,500.

• Various other affected structures will be compensated at the current market rate for material, transport and labor at a total pf MNT 8,237,560.

• The relocation of 7 geodesic markers will be financed from the budget for civil works.

• Transaction costs will amount to a total of MNT 1,103,418.

• Business losses of APs will be compensated at a total cost of up to MNT 1,506,547, according to the actual duration of business interruption due to the subproject.

The budget for land acquisition and resettlement in the Erdenet subproject is expected to amount to MNT 55,521,552.30 or USD 39,045 for compensation as well as administration and contingency costs, which are funded from state government resources, and MNT 8,090,042 or USD 5,689 for monitoring, funded from the ADB loan. The total LAR budget for the Erdenet subproject is MNT 63,611,594.30 or USD 44,734.

2This vulnerable AP household of 2 pensioners and their children will be compensated for the complete loss of a licensed affected 587m2 plot and their house and will use the compensation payment to purchase an apartment as a replacement.

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A. INTRODUCTION 1. This Land Acquisition and Resettlement Plan (LARP) for the Erdenet 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 Orkhon 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 Erdenet 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 meter from their plots; (ii) public institutions in ger areas including schools, kindergartens, hospitals, and markets will be connected to piped water supply and existing sewerage systems; (iii) solid waste collection and disposal will be improved; and (iv) ger area households will construct individual water connections and improve on-plot facilities using small loans. The possibility of obtaining small loans for individual water connections and on-plot facility improvements through the Project will have a significant impact on improving living conditions for both poor and non-poor households living in ger areas. It will begin the transformation of these areas into modern urban communities.

5. This subproject will transform the water supply system for the city’s major ger areas and assist the public urban services organizations (PUSO) in becoming financially viable. It will improve the water supply and sewage system of Erdenet through (i) the drilling and protection of a new well field with 3 boreholes; (ii) 24.44 km water transmission line to bring the water to 2 new reservoirs of 1000 m3 each above the ger area; (iii) 10.02 km of water distribution pipelines, (iv) 5.2 km sewage pipelines; (v) 30 new water kiosks along the main water lines; and (vi) 10 connection boxes to allow individual water connections in the future. The new water supply system will benefit 6675 households, including 3229 that are considered to be poor. Roughly 47.2% of all poor households living in Erdenet are located in the subproject area. The subproject’s technical design and LAR activities started in April 2009.

B. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 6. Only some 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 34.46 km water supply pipeline and 5.2km sewage pipeline, which traverse the subproject ger areas in various directions, has a

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ROW width varying between 5m and 10m. In order to minimize resettlement impact, the standard trench width of 10m was reduced to 5m in several densely settled sections 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 Erdenet Basic Urban Services Improvement Subproject of 2009, based on a standard 10m ROW, indicated 121 permanently affected properties with at least 6 affected houses 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 width in densely settled lanes. Thereby, permanent impact was reduced to 47 households with 45 partially and 2 fully affected plots of land. In addition, 1 house, 8 latrines, 1409.5m fences and several other structures, as indicated in section B.iii, are affected. Temporary occupation of land due to construction is not required, as the available public space will be sufficient for construction work, storage of materials and parking of machinery.

8. The following assessment of the scope of LAR impact is based on the census of the APs carried out by the PIU Erdenet, as well as Detailed Measurement Survey data provided by the Land Relations, Construction and Urban Development Department (LRCUDD) of Orkhon Aimag and a property valuation consultant. At the time of conducting the AP census, the cut-off date of 29 June 2009 for the subproject was publicly notified in the subproject area, including the offices of the Governors of the Baghs Shant, Rashant, Naran and Bulag of Bayan-Undur Soum (see Annex2). The APs have also been notified individually by the LRCUDD using a notification form specially designed for the Project (Annex3).

Affected People 9. Table 1 indicates the number and types of affected households and persons in the Erdenet Basic Urban Services Improvement Subproject. A total of 51 households will be affected (hereafter referred to as AH), of which 49 AHs could be enumerated in the AP census. Two AHs are absent of which 1 cannot be identified. The absentee households have been excluded from the socio-economic survey, but will be considered in the census as 1 male AP each and therefore included in the compensation and rehabilitation strategy. There are a total of 212 APs, 106 male and 106 female, 70 of which are children. 6 households are female headed. 13 women of 38 titled APs are the holders of titles to their households’ land. 10 affected properties are in joint or family property ownership. There are 7 elderly persons, 3 from vulnerable households. 1 of these is an elderly female head of household and the other the elderly male head of his household. 8 of the APs are disabled, with 5 from vulnerable households, of which 1 is a disabled female head of household and 4 are disabled male heads of their households. 30 AHs (58.8%) are vulnerable on account of monthly per capita incomes below the poverty line for Orkhon Aimag of MNT 90,600. In addition, as indicated the household heads of some of the vulnerable households are either elderly or disabled. 2 affected households (ER002, ER015) need to be relocated due to extensive loss of land and residential structures, both of which are vulnerable and one of which is headed by an elderly man and his 61 year old wife, both pensioners and second time affected persons. 13 of the AHs are now affected for the second time after the construction of roads has already claimed sections of their properties in past years. There are 3 cases of possibly abandoned unlicensed but fenced land where the owners have not been present for some months and cannot be located (ER002, ER036 and ER041). In one case the owner is unknown (ER041). A detailed list of all affected persons and assets of the Erdenet subproject can be found in Table 14.

10. Among the APs, 159 persons (75.7%) are of the Khalkh ethnic group, which is the mainstream cultural group in Mongolian society. 15 households have members from ethnic minorities. 12 persons (5.7%) are of the Dorvod, 13 persons (6.2%) are of the Khoton, and 7 persons each (3.3% and 3.3%) are of the Bayad and Uriankhai ethnic minority groups. In addition there are Uuld (5), Khotgoid (3), Zakhchin (2) and Darkhad (2) persons affected. These minority group members have moved to Erdenet over the past 15 years and socially and

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economically fully integrated into the cultural mainstream of urban society. Their socio-economic status, income generation activities and living conditions are not distinguishable from their Khalkh neighbors, although they may have retained some distinct linguistic and cultural features. 10 of the 15 households with ethnic minority members are of mixed marriages with Khalkh, 3 are intermarriages with members of another minority and in only 3 the spouses have selected partners form the same ethnic group. The subproject does not impact customary land use rights, the socio-economic status, the cultural and communal integrity, the health, education, livelihood and social security status, or the indigenous knowledge of the ethnic minority APs concerned. In most cases, the limited loss of land affected by the project equally impacts Khalkh majority APs and ethnic minority APs and adequate compensation based on the provisions of the LARF for UDSP is provided for all APs. The ethnic minority APs equally share in the project benefits without discrimination. Therefore, the ADB Policy on Indigenous People 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. One female land title holder is the AP representative in the subproject Working Group. Due consideration will be given to complaints and grievances lodged by affected women in the LAR process.

Table 1: Affected people

Categories of AP No. Percent Comments Affected Households (AHs) 51 100

Affected Persons, of which 212 100

- Male 106 50

- Female 106 50

Children under 18 70 33

Average HH size Mean: 4.24Median: 4 --

Female headed households 6 11.8 4 vulnerable

Land title holders, of which 38 100

- Female land title holders 14 36.8

- Joint / family property 9 23.6

Elderly persons 7 3.3 3 vulnerable, 1 of which is a female head of HH and 1 male head of HH

Disabled persons 8 3.8 5 vulnerable, 1 of which is a female head of HH and 4 male heads of HH

Vulnerable households 30 58.8 5 female heads of HH

Vulnerable persons 136 64.2

AHs to be relocated 2 3.9 2 vulnerable and male heads of HH

Second time APs 13 25.5

12. Two of the 30 vulnerable AHs in the subproject are affected by a loss of housing, of which 1 headed by an elderly person will be relocated to a new house or apartment and 1 will need to move its ger to a replacement plot. The 2 vulnerable displaced AHs will receive special assistance and consideration in the relocation process and all vulnerable AHs losing land will be provided with special assistance for the preparation of contracts and the administrative process of land transfer. Interested adult members of vulnerable APs will also receive preferential treatment for temporary employment with contractors in the civil works of the subproject.

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Affected Land 13. There are 47 AHs in the Erdenet subproject who will lose land, the total size of affected land amounting to 4552m2 (see Table 2). Of the total of 47 APs affected by land loss, 18 lose owned plots, 4 possessed plots and 30 unlicensed legalizable plots. 5 of these APs occupy both licensed and unlicensed plots and lose all of their unlicensed land. 2 AHs lose about half or more of their land and consequently are entitled to give up their entire plots for, in one case, replacement land and an apartment in the other. 4514m2 of the affected land is residential and 38m2 commercial. 7 APs have 9 shops outside the ROW (in 2 cases, there are 2 shops each from the same affected households) and will experience temporary business interruption due to blocking of shop entrances. One AH has a welding shop using an iron shed within the ROW on land registered as residential. The affected commercial land of one shop owner is used for a parking lot and a drain with small bridges. The affected land of one of the shop owners is not for commercial use, but merely adjacent to the shop building and therefore LAR impact on the business will not occur. As already indicated, temporary occupation of land during construction is not anticipated.

Table 2: Affected land

Extent of loss Type of Loss Unit Full Partial

Percent of APs

No. of AHs 47 Total Affected HHs m2 4552 2 45 100

1) Impact by Ownership No. of AHs 18 Owned m2 1280 1 17 38.3

No. of AHs 4 Possessed m2 481 0 4 8.5

No. of AHs 0 Rented m2 0 0 0 0

No. of AHs 303 Non-titled occupation, legalizable m2 2791 6 24 63.8

2) Impact by Type of Land Use No. of AHs 46 Residential m2 4514 2 44 97.9

No. of AHs 1 Commercial m2 38 0 1 2.1

No. of AHs 0 3) Temporary land occupation m2 0 0 0 0

14. The proportion of land loss relative to total occupied land owned for all AHs and for vulnerable households is shown in Table 3. The great majority (above 70%) of all AHs lose less than 10 percent of their total occupied land, including households with members from vulnerable households. Serious land losses are experienced by less than 20 percent of AHs.

3 5 APs lose both licensed and adjacent unlicensed land.

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Table 3: Proportion of land loss relative to total land owned (n=47) Total AH Vulnerable households Land loss (%)

No. % No. % < 10 33 70.2 23 76.7 < 20 6 12.8 3 10 < 40 4 8.5 1 3.3 < 50 3 6.4 2 6.7 50+ 1 2.1 1 3.3 Total 47 100 30 100

Affected Structures 15. There are a total of 76 affected structures on residential land. 1 affected household will lose its house. 2 gers require to be moved to either the non-affected portion of 1 AP’s plot or the replacement plot provided to another. 42 fences of a total length of 1409.5m, belonging to 42 AHs, will need to be moved. 8 AHs will lose 8 open pit wooden latrines, which can be rebuilt on remaining land. There are various affected commercial structures, including 2 defunct small shops, as well as 1 parking lot with several appurtenances in front of 7 operational shops. 7 public geodesic markers are affected. In addition, there are various other affected structures as indicated in Table 4.

Table 4: Affected structures

Type of Loss Unit No. of affected households Comments

Residential structures No. 76 47

No. 1 House

m2 60 1

Relocation of APs to apartment with relocation allowance.

No. 2

Ger Lattice panes (wood)4 5

2

I ger relocated to replacement land and 1 ger to remaining land in the same site; relocation allowances will be paid.

No. 42 Fences m 1409.49

42

Latrines No. 8 8 No. 2 Shed, wood m2 10.25

2 2 types w/ different value

No. 4 Shed / container, iron m2 --

4

No. 2 Entrance structures m2 7.75

2 2 types w/ different value

No. 1 Excavation for basement m2 414.4

1

No. 1 Bridge, wood m 3

No. 1 Drain m2 --

1

No. 1 Fence, iron m 9.7

1

Concrete wall No. 1 1

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

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Type of Loss Unit No. of affected households Comments

m2 4.9 No. 1 Electricity connection m2 --

1

No. 1 Greenhouse m2 --

1

No. 1 Vegetable plot m2 ?

1

Commercial structures No. 7 3 No. 2 Shop, small wood structures m2 10.25

2 Non-functional

No. 5 Parking lot with bridge, drain, iron fence and concrete wall m2 29

1

Community and public resources No. 7 --

Geodesic points, replacement financed under construction budget

Affected Livelihoods 16. The livelihoods of 8 APs (including 2 shop owners with1 shop each from the same household with ID no ER48 and one shop owner with 2 shops) will be temporarily affected by the subproject (see Table 5). The entrances of a total of 8 commercial establishments operated by 7 APs will be temporarily blocked due to construction work on their affected land. In addition, the iron shed in which a welding shop is operating will be moved to remaining land. Business interruptions of up to 7 days are anticipated.

Table 5: Affected livelihoods

Type of Loss No. Percent of affected HH

Comment

Business 8 6.4 9 commercial establishments with temporary business interruption due to construction or moving of a structure on affected land

Employees 0 0 There are no employees besides the owners.

Level of impact severity 17. Since the Erdenet 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 Erdenet 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 the APs in Erdenet, a sample survey of 13 AHs (25.5% the 51 AHs) was carried out which included interviews with 11 men and 13 women.5 20 percent of the vulnerable affected households (6 households, incl. 2 female headed) were included in the sample. Some basic data on ethnicity, land, education and income have been derived from the census, other indicators of living standards and conditions

5The greater number of female respondents is owed to the inclusion of 2 female headed households among the sample AHs.

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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.

19. As shown in Table 6, among the APs 159 or 75.7 percent are of the Khalkh ethnic group, which is the mainstream cultural group in Mongolian society. 12 or 5.7 percent are of the Dorvod, 13 or 6.2 percent of the Khoton, and 7 or 3.3 each are of the Bayad and Uriankhai ethnic minority groups. In addition there are Uuld (5), Khotgoid (3), Zakhchin (2) and Darkhad (2). There is a considerable variety of ethnic minorities among a quarter of the APs, many of whom have intermarried with the Khalkh or other groups. Among the APs, 66.6 percent or 10 of 15 households with members from ethnic minorities intermarried with Khalkh and 3 with another minority. Erdenet as a relatively wealthy mining town attracts migrants from all over Mongolia, who integrate into modern urban society.

Table 6: Ethnicity among APs at the Erdenet subproject

Total Men Women Ethnic group No. Percent No. Percent No. Percent

Khalkh 159 75.7 77 74 82 77.4 Dorvod 12 5.7 6 5.8 6 5.7 Khoton 13 6.2 5 4.8 8 7.5 Bayad 7 3.3 4 3.8 3 2.8 Uriankhai 7 3.3 5 4.8 2 1.9 Uuld 5 2.4 2 1.9 3 2.8 Khotgoid 3 1.4 3 2.9 0 0 Darkhad 2 1 1 1 1 0.9 Zackchin 2 1 1 1 1 0.9 Total 210 100 1046 100 106 100

20. The size and property status of all occupied land (affected and unaffected) among the affected households, as distinguished from their affected land discussed in the previous section, is depicted in Table 7; see also Table 15 for property sizes of individual APs. The great majority of households, i.e. 38 or 80.8 percent, have land in the 500m2 to less than 1000m2 category, reflecting standard land allocation sizes (i.e., 700 to 800 m2). 7 households or 14.9 percent occupy 1000m2 or above, due to the extension of fences into unlicensed land or the inclusion of 2 plots in a family property license. 2 households have less than 500m2 of total land. 21 households or 72.5 percent are owners of land between 500m2 and below 1000m2, 3 own above 1000m2 and 5 below 500. As already indicated, 13 households have already lost land to the construction of main roads through their ger areas previously, causing ownership of plots below normal land allocation sizes. 6 households possess between 500m2 and below 1000m2 and 2 above 1000m2. These are actually APs in relatively new development areas with incomplete licenses, which have been classified as possessors at the request of the LRCUDD, who will be regularized as owners during the LARP implementation period. 30 households occupy unlicensed plots ranging between 3m2 and 960m2. 12 households (40%) are below 250m2 in size and another 8 have between 250 m2 and below 500m2. These are mostly the result of an extension of licensed plots into unlicensed land. 10 APs have near standard size plots. 8 APs have unlicensed land only; 2 of relatively small size, i.e. 277m2 and 370m2, while the other 6 occupy between 525m2 and 960m2. Among the affected persons with titles are 13 women and 24 men; while among the non-titled occupants are 18 men and 12 women.

6 For 2 absentee APs data is unavailable.

8

Table 7: Size and property status of all land occupied by affected households

Total Gender of title holder / claimant

Type / size classes

No. of HHs Percent Male female Total land occupied (m2)

<250 0 0 0 0 250 - <500 2 4.3 2 0

500 - <1000 38 80.8 23 15 1000 and more 7 14.9 6 1

Total 477 100 31 16 Land owned

<250 0 0 0 0 250 - <500 5 17.2 3 2

500 - <1000 21 72.5 14 7 1000 and more 3 10.3 3 0

Total 29 100 20 9 Land possessed

<250 0 0 0 0 250 - <500 0 0 0 0

500 - <1000 6 75 2 4 1000 and more 2 25 2 0

Total 8 100 4 4 Unlicensed land

<250 12 40 5 7 250 - <500 8 26.7 6 2

500 - <1000 10 33.3 7 3 1000 and more 0 0 0 0

Total 30 100 18 12

21. 40 of the 51 affected households have structures on their residential properties, which are their primary or secondary residences. 28 households own 1 house, 6 own 2 houses and 1 family owns 3 houses (Table 8). 18 households have one ger, 2 of them have 2 gers. 4 plots are without structures. 8 APs reported the use of houses for commercial purposes, 5 of which are tenants to a single landlord with 2 shops and 2 houses. 42 affected households have fenced their properties. 37 households have latrines and 18 have constructed between 1 and 3 sheds. There are 6 garages among the affected households, as well as a variety of other structures, as indicated in Table 3. The general condition of the APs’ houses was judged as well maintained in 8 households, average in 4 residences and poor in 1 case.

710 of the total of 47 households occupy both licensed and unlicensed land. Of these only 5 unlicensed plots are affected.

9

Table 8: Type of structure owned by affected households

Total Type

No. of HH No. of structures Comments

28 1

6 2 House (residential)

1 3

16 1 Ger (residential)

2 2 No residential structure on land 4 0

7 1 4 HH rent space in house of landlord House (commercial)

1 2 Landlord of 4 tenants of commercial space

Fence / wall 42 --

Latrine (open pit) 37 1 Open pit

13 1

4 2 Shed

1 3

Garage 6 1

Other 9 --

22. Overall educational attainment among the 26 APs above 10 years of age is below the national literacy rate of about 98 percent and the gross enrollment ratio of 95.4 percent, as 5.4 percent were reported to have no educational attainment and another 12.2 percent attended school only up to grade 3 (see Table 9). However, the majority has at least basic level education. 20.8 percent of APs have left school after the basic level (10th grade), with men and women showing similar rates. 41.7 percent completed their secondary education (38 men, 36 women) and 12 women and 5 men achieved a B.A. 16 APs (3 men and 13 women) received other professional or vocational training, including nursing, pharmaceutics, mining, accounting and the like. Accordingly below average attainment of basic literacy is offset by considerable achievements at the secondary and post-secondary levels, especially among women.

Table 9: Educational attainment among above 10 yrs of age affected household members (n=206)

Male Female Total Level

No. Percent No. Percent No. PercentNone 4 5.1 5 5.6 9 5.4

Primary (3rd grade) 12 15.2 9 10.1 21 12.2

Basic (10th grade) 17 21.5 18 20.2 35 20.8 Comp. secondary educ. (12th grade) 38 48.1 32 36 70 41.7

B.A. 5 6.3 12 13.5 17 10.1

Other 3 3.8 13 14.6 16 9.5

Total 79 100 89 100 168 100

10 years of age or below 22 16 38

10

23. Total annual income (self declared) from all sources among 48 affected households is shown in Table 10. For the absent households income data are not available. One person declared to have no income besides government child support. A total of 33 affected households or 68.8 percent fall into the below MNT 5 million income category. 7 households are in the MNT 5 to below 7.5 million category. 5 APs are in a middle income group between 7.5 and 15 million MNT. Among the APs are 3 households with relatively high incomes, all of them shop keepers, of which one is a pharmacist and another is a landlord and owner of 2 businesses.

Table 10: Annual incomes from all sources among affected households (n=48)

MNT No. of HH Percent <5,000,000 33 68.8

5,000,000-<7,500,000 7 14.6

7,500,000-<10,000,000 2 4.2

10,000,000-<15,000,000 3 6.3

15,000,000-<20,000,000 1 2.1

=>20,000,000 2 4.2

Total 48 100

No data 3 --

Averages MNT

Mean 4,956,816

Median 3,072,000

Range 136,000 – 27,872,000�

24. Given household sizes ranging between 1 and 7 members with an average of 4.2, the per capita monthly incomes among 61.3 percent or 30 of the affected households are below the poverty line for Erdenet of MNT 90,600 and they qualify as vulnerable under the UDSP LARF. 26 or 53.1 percent of affected households are severely poor with per capita monthly incomes below MNT 75,000 (see Table 11). 4 of the female headed households are vulnerable and a 5th earns just above the poverty line. 26 male headed households are vulnerable as well. By contrast, 4 households with monthly per capita incomes above MNT 350,000 are well off. Annual child support payments of MNT 136,000 per child from the government are an important steady source of income for all households and the only reported source of regular income for 1 family.

Table 11: Per capita monthly incomes among affected households (n=49)

MNT No. Percent <75,000 26 53.1

75,000 – 90,600 (poverty line) 4 8.2

90,600 - <150,000 8 16.3

150,000 - <200,000 7 14.2

200,000 - <350,000 0 0

=>350,000 4 8.2

Total 49 100

No data 2 --

25. Among the 48 households considered in this analysis, 50 percent have 1 income earner, 31.3 percent have 2 and another 10 percent have 3 or 4 income earners. 7 persons support their families with their pensions. The employment status among the 24 sampled adults shown in

11

Table 12 indicates that 6 persons are employed (4 male, 2 female), 4 persons are self-employed (3 male, 1 female), 6 woman are doing housework and 1 man is unemployed. Among the employed persons are 4 salaried workers and the self-employed APs earn incomes from shops and taxi services.

Table 12: Employment status among adult APs (n=24)

Employment status Total Men Women Employed 6 4 2 Self-employed 4 3 1 Housework 6 0 6 Unemployed 1 1 0 Pensioner 7 3 4 Total 24 11 13

26. In a ranking exercise on household expenditure among the 13 sample households, both men and women indicated that they first spend on food. Among women fuel, house/ger maintenance and clothes ranked next (in that order), while men thought they spent next on electricity, education and fuel. Transport unanimously is at 5th rank. Men think that they equally spend on clothes, while women also ranked education and electricity as 5th highest expenditure. Mentioned thereafter are the items house/ger maintenance, medical costs and water for men, and medical costs as well as water for women. Both genders rank entertainment last. Entertainment is the lowest on the list of priorities, as the affected households are seeking to cover the cost of necessities. 8 men and 10 women stated that they ate enough food every day, but 2 men and 3 women considered the food available to their households insufficient. Two men and 5 women reported that their households are eating only 2 meals per day, among them 1 female headed and 3 male headed households. While the percentage of households eating only 2 meals per day is somewhat higher among poor (40%) than among non-poor (23%) households, eating 4 meals a day occurs only among the non-poor.

27. The following data describes the status of living conditions and well-being among the sample affected households. All 13 households have electricity and obtain drinking water from a nearby kiosk, to which 11 of 24 respondents reported walking between 100 and 500 meters; 6 walk less and 7 assumed that they walk greater distances. 42 percent of the respondents stated that men and 37 percent that children had the primary responsibility for fetching water in plastic containers on small trolleys pulled by hand. 83 percent of the sample households use the traditional piishin or wood and coal burning stove for both cooking and heating. 1 household uses a less efficient zuukh stove and 83 percent also use an electrical or gas cooker. Radiators for heating are used by 1 household. 92 percent stated that they primarily use wood as a cooking and heating fuel, as it is cheaper and more easily available, and only 25 percent use coal. The majority (83%) receives their wood and coal from wholesalers delivering with trucks, 3 households buy from a roadside vendor or shop and in 2 households men also collect firewood in the woods. Responsibility for obtaining household fuel rests mainly with men, except in 3 households. In one female headed household the woman, in the other the children obtain firewood. Where fuel is collected or bought from a shop the distances to cover can be about 1 km or more.

28. In terms of household equipment, 36 percent of households own 1 bed only, 59 percent have 2 beds and 1 household has 4 beds. 75 percent of respondents reported to own 1 TV, 25 percent have 2. 1 family has a radio, 4 own computers, 5 a car, 1 a bus and 1 a motorcycle.

29. 2 of the households keep livestock, including sheep, cows and poultry. In 1 female headed household, cows and sheep are tended by the children, while 1 well-off business man with shops and rental property in town keeps stall-fed poultry as well as a cow herd tended by herders. 7 households planted a garden, growing vegetables, berries, flowers and trees. Men

12

take responsibility for gardening in 3 households and women in another 3, while 1 household reports that both genders look after their garden.

30. The health situation of the sample households is characterized by heart disease reported to be prevalent in their families by 10 respondents, as well as kidney problems (8), blood pressure (6) and joint pains (4), in addition to various other less frequent health problems. The most frequently sought medical care is from government hospitals (87%); 13 percent indicated using a private hospital. Use of home remedies was reported by one respondent and consultation of traditional medical practitioners was not reported. 5 respondents said that they travel about 1 km, 6 respondents travel up to 5 km and 12 need to cover distances above 5km to reach their health care provider.

31. The common means of transport to school and work are walking (42%), the bus (71%) and taxi (8%). Among adults, 95 percent travel less than 30 minutes to work, given the short distances and lack of traffic congestion in Erdenet. Children as well need 30 minutes or less to reach school. The cost of transport was assumed to be higher by women, who are reported to manage their households’ transport budget: 31 percent indicated paying less than MNT 25,000 per month, 38 percent assumed they pay between MNT 25,000 and 50,000 and 31percent pay more. Meanwhile 55.5 percent of men assumed that their transport cost is below MNT 25,000, and 22.5 percent each reported spending between MNT 25,000 and 50,000 or above MNT 50,000.

32. Gender relations reflect the actual distribution of roles and responsibilities in the respective households. Women’s primary task is considered to be household work by 80 percent of male respondents and 77 percent of female interviewees, where women are not employed. Among the 3 sample households with working women, 2 husbands recognize their wife’s contributions and responsibilities, and in the third the female head of household is employed. 87 percent of male and 76 percent of female respondents consider income earning the primary tasks of men. In the remaining households, men are pensioners. Joint decision making was considered by the majority of 70 percent of men and 92 percent of women to characterize the home sphere, while 2 men stated that women were the key decision makers in the home. Joint decision making in the public sphere was also indicated by about half of all male and female respondents, but 2 households reported separate decisions. 3 women and 2 men identify men as the primary decision makers in public matters, while 2 men and 1 woman see women in this role.

33. Community cohesion appears to be little affected by the occurrence of disputes or crime. 100 percent of men and women stated that frequent major disputes did not occur in their communities. 2 men and 1 woman stated that crime occurred only in the form of theft and was rare. None of the sample respondents indicated any other conflicts or violence against women. Only 2 respondents reported an active CBO in the community, in the mobilization and microcredit activities of which they participate. This CBO was organized by the social mobilization component of UDSP.

34. The APs were asked about their development needs and priorities and the construction of close by water kiosks was mentioned by 3 men and 1 woman. 3 women would like to have bath houses nearby for improved personal hygiene. 2 women and 1 man saw a need for more hospitals and for better street lighting in their ger areas. Vocational training and bridges over big drains were also mentioned by 2 APs each. 2 respondents mentioned house connections with the waters supply system. There were individual interests in various improvements, ranging from sewage connection to small business loan, as well as more drains and beautification of streets and neighborhoods.

35. Among the positive impacts of the project both male (9) and female (7) respondents anticipate improved water supply, time savings (3) and improved property values (2). 4 women and 2 men expect house connections from the project. The expected negative impacts include loss of land, especially as some APs are affected for a second time (5) and temporary income losses (3). Five respondents also worry about bad quality construction work and related

13

accidents on account of open trenches. The project addresses these concerns by providing compensation for land and temporary business losses through its LAR compensation strategy, by exercising quality control through the PIU water supply engineer and by requiring from the contractors adequate safety measures during construction activities.

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 Erdenet 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 Laws8 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 Erdenet summarizes the key policy framework provisions of the LARF and presents the entitlement framework for the Erdenet subproject.

37. Land acquisition and resettlement by the government for projects in urban areas, as opposed to national scale objects outside urban areas, is based on negotiation and contracts with affected persons according to the Civil Code of Mongolia. There is no right of eminent domain, but only negotiated land acquisition and resettlement. Article 1 of the Civil Code stipulates that the government and APs engage as equal and autonomous legal persons and participants in a civil legal relationship in the negotiation and conclusion of contractual agreements on the transfer of affected assets.

38. Article 101 sets out the right to possess, use and dispose of assets in the context of Contract Law as determined in Chapter 15 of the Civil Code. There are 3 modes of legal access to land in Mongolia, possession and use according to the Law on Land and ownership according to the Law on Allocation of Land, all of which involve licensing and registration by state authorities. Owners as well as possessors and users 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 and users 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

8 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

14

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 Erdenet 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.9

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 partners10 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 community11).

(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.12 APs 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.

9 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. 10 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. 11 Not applicable if the replacement of public structures (electricity, water supply lines, etc) is covered under civil works contracts. 12 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.

15

(iv) Affected land will be compensated either at replacement cost based on market rates for comparable land or the applicable government compensation tariff, whichever is higher, or, in the case of full loss of a plot of land, with replacement land, including land preparation and restoration of utility services (electricity, water etc), as applicable. The District Land Administration Department will assist the APs to identify and approve the relocation plot. The loss of 50 percent or more of a plot is considered a full loss eligible for compensation for the entire plot, if the AP so desires.

(v) Affected possessors, in case of partial loss of less than 50 percent of their land, will transfer their license for the affected plot to the GOM and retain the possessor license for the remaining plot. Their possessor licenses will not be cancelled or subject to automatic expiration. In case of a full loss of land they will be provided with a replacement plot and ownership licenses with state registration.

(vi) Affected users of land with use licenses will be provided with replacement plots in similar locations suitable to business operations and new use licenses or, if possible and desired, with a license of ownership, within 3 months of conclusion of a contractual agreement between the government and the AP.

(vii) All APs agreeing to receive replacement land or APs with pending license approval for ownership or possession or APs with possession licenses seeking ownership status, will be provided with ownership licenses within 3 months of conclusion of a contractual agreement between the government and the AP and will be registered with the State Administrative Authority in Charge of State Registration of Property Rights.

(viii) Affected structures13 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 opportunities14 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 structures15 (residential or business): within 2 months.

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

16

b. Replacement plot with ownership license for full acquisition of entire plot, without housing structures: within 3 months.

c. Acquisition of a partial plot with a housing structure, where the structure is to be rebuilt on the remaining plot: within 5 months.

d. Full acquisition of entire plot with housing structure, where the structure is to be rebuilt on a replacement plot: within 6 months.

e. Temporarily affected plots will have fences removed and restored at the specific time of construction of pipelines at that location during the civil works period; 2 weeks notice will be given.

f. Lessees must be given 3 months notice of termination of their lease in accordance with the Civil Code.

(xvi) Civil works shall not commence unless all compensation, relocation and construction activities under section XV a – d have been completed and short-term financial assistance for loss of income has been paid.

(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.16

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 13. 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.

16 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.

17

Table13: Entitlement Matrix Type of Loss Specification Eligibility Compensation entitlements

Owner, possessor17 - 21 HHs

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 - 24 HHs

Ownership license and State registration for remaining land will be provided by government18; All taxes, registration and transfer costs are waived or included in compensation price

Owner, possessor - 1 HH

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 losing all land occupied - 1 HH

Land for land compensation through provision of replacement plot of comparable value and location as lost plot19; 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 - 5 HHs

Preferential treatment for temporary employment during construction

Moving back of fences

Owner, possessor, legalizable occupant of land - 42 HHs

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 HHs

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

STRUCTURES (residential/ commercial/public/ community)20

Full loss of structure and/or relocation

Owner, possessor, legalizable occupant of land - 17 HHs (1 HH losing 1 house)

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

17 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. 18 If the unlicensed AP has occupied more than 700m2 of land (the legal allocation limit per person), the balance land, if any, may be either owned and registered in the name of a family member or bought from the government at the government land tariff. A landowner already owning 700m2 may acquire the balance land as additional possessed land. 19 See footnote 18. 20 ‘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

Type of Loss Specification Eligibility Compensation entitlements Moving or relocation of ger

Owner, possessor, legalizable occupant of land, lessee - 2 HHs

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

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

All APs so affected - 7 HHs

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

Other provisions Specification Eligibility Compensation entitlements

Relocation Transport/ transition costs

All APs to be relocated

- 3 HHs

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

- 0 HHs

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

- 30 HHs

Assistance with preparation of contracts and administrative process of land transfer

Preferential treatment for temporary employment during construction

Vulnerable AP

(as defined in paragraphs 8 & 57)

Loss of structure

All vulnerable APs

- 1 HH

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

Temporary disturbance through construction

All APs

- 51 HH

Avoid, minimize or mitigate as quickly as possible

Unidentified Losses

Unanticipated impacts

All APs

- 51 HHs

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 2009, individual consultations have taken place with APs along the Erdenet 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, especially to protect the ability of small

19

neighborhood businesses to continue their services. 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 Erdenet subproject was disclosed at 3 community meetings with about 15 APs each at the office of the Governor of Bagh Shant on 10 September 2009. The APs were provided with a Mongolian translation of the key sections of the LARP. The legal framework under the Project LARF, the compensation entitlements and the grievance and monitoring procedures were reviewed and discussed. After clarification of 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 was incorporated into the revised draft LARP, which was disclosed to the APs in a consultation meeting on 12 September 2009 at the office of the Erdenet PIU.

46. Individual consultations to prepare and conclude contractual agreements have been ongoing from 12 September 2009 and will continue until all contracts are agreed and signed. The LAR specialists of PMU are supporting LRCUDD and the APs to accomplish the agreements as well as the legalization of unlicensed land. After approval of the final LARP by ADB and GOM, it will simultaneously be disclosed to the APs in a public meeting in Mongolian and published on the ADB website. At the meeting the date, time and venue of disbursement of agreed property transfer prices and other compensation or entitlements will be announced. Additional individual and public consultation meetings will be held throughout implementation of the LARP as required to address any issues. The attendance sheets for AP consultation meetings held during 2009 are provided in Annex 4.

F. GRIEVANCE REDRESS MECHANISM 47. A grievance action form (GAF) to log and follow up AP grievances has been designed (see Annex 5). The Working Group (WG) for the Erdenet subproject, the key institution in the grievance redress process, was formed on 20 May 2009 under Resolution 161 of the Governor of Orkhon Aimag.

48. For the Erdenet 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 14: Grievance mechanism for Erdenet Subproject Steps Actors / actions Timing

AP lodges grievance with Working Group (WG) member WG member prepares GAF and initiates WG meeting

1

WG addresses grievance, informs AP and proposes resolution to Governor

1 week

20

(aimag/soum) Governor initiates action for resolution 1 week

If grievance is not resolved LRCUDD WG member submits grievance to LAD LRCUDD addresses grievance, informs AP and proposes resolution to Aimag Governor

1 week 2

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

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

4 Grievance is referred to court system Open

G. INSTITUTIONAL FRAMEWORK 49. In the improvement of basic urban services component, the Working Group21 for the Erdenet subproject is responsible for the implementation of this LARP. Supported by the PMU, the Erdenet PIU through the LAR specialists of PMU assists the Working Group and ensures resettlement safeguard compliance and submission of a satisfactory LARP to PMU and ADB for review and approval prior to any land acquisition or resettlement and the commencement of civil works.

50. A training workshop on ‘Land Acquisition and Resettlement in the Implementation of ADB Financed Urban Development Projects in Mongolia for Key Stakeholders of the Urban Development Sector Project’ was held at the Erdenet Governor’s Office with concerned government officers, including WG members, AP representatives and other stakeholders of the UDSP subproject in Erdenet on 30 June 2009. The participants were trained on the legal framework of the project, including applicable Mongolian Laws, ADB IRP and the UDSP LARF, and the steps of the process of LARP preparation and implementation.

51. The main activities of the WG include the following:

• Participation in public consultation meetings.

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

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

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

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

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

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

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

21 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.

21

• 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.

52. The PMU, together with the Erdenet 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.

53. Under ADB’s JFPR 9106-MON Project ‘Community Driven Development for Urban Poor in Ger Areas’, a project closely linked to UDSP and administered by the same PMU, community mobilizers organize CBOs, which receive project funds and implement small community infrastructure projects, such as bridges across drains or playgrounds, and create a sense of community cohesion through cooperation. Some APs are represented in the CBOs and the project staff has been requested to target APs in order to provide them with project benefits. In addition, component C of UDSP facilitates availability of small loans for individual house connections to the water supply scheme in the ger areas, as well as for other sanitation and household appliances, such as septic tanks and energy efficient stoves. Again, the project staff in charge has been alerted to target APs and several APs have been referred to the project staff already.

H. COMPENSATION AND REHABILITATION STRATEGY 54. This section indicates the composite compensation strategy for each type of loss, i.e. land and structures, as well as transaction and relocation costs. Specific conditions of particular categories of 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 Orkhon 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 Annexes 6 and 7. A detailed account of the LAR impact and compensation of losses for each individual AP is provided in Tables 15 and 16.

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

• 18 owners and 4 possessors of affected land will experience partial (17) or full (1) losses ranging between 8m2 and 587m2, totaling 1,761m2. Among these, 1 vulnerable AP household (ER015) of an elderly head of household will be compensated for its entire owned plot of, as the remaining plot of 302m2 will be too small to re-establish their house. These licensed APs will be compensated at the current government rate for the Erdenet ger area. At a government unit rate of MNT 8,000 per m2, the total cost of compensation for this land will be MNT 14,088,000. The average local market rate for land in the Erdenet ger areas is currently MNT 2500 to 4000 per m2. Therefore the current government rate is 3 to 4 times the market rate and acceptable to the APs. Any fees for adjusting existing owner or possessor licenses or certificates will waived or paid by the local government.

• The affected household ER015 is headed by an elderly male person married to a 61 year old pensioned woman both of whom are supporting a 7 member family. Their MNT 31,952 monthly per capita income leaves the household very vulnerable. The old couple cannot be expected to rebuild their house on a replacement plot and cannot stay on their remaining land, because their house is fully affected and will be removed from the property. Therefore, the couple will be provided with special assistance in the form of an apartment in an apartment building in Erdenet town, for which they will receive ownership in the land owner’s name. The sum of their compensation entitlements will be applied to acquiring such an apartment.

22

• 24 APs losing a part of their unlicensed land at sizes ranging from 8m2 to 497m2, amounting to a total of 1826m2, will not be compensated for their lost land in cash. However, the remaining portions of their unlicensed land, ranging between 64m2 and 900m2 will be legalized by providing the APs with owner licenses and state registration. In cases where the unlicensed remaining land to be legalized will subsequently cause the total licensed land of an AP to surpass the 800m2 limit per adult determined by the Citizens’ Representative Khural of Orkhon Aimag, the remaining unlicensed land will be allocated in the name of a relative with ownership registration (see detail in Table 14).22

• One AP (ER020) loses 71m2 of unlicensed land and will receive an ownership license, to legalize the remaining 299 m2 of his unlicensed land. As the plot will be less than 350m2, a replacement plot was offered to him, but he insisted that he wants to stay at his current plot, where he is building a house.

• The AP with the ID ER030 has only 302m2 of remaining unlicensed land, which will be legalized; he prefers this plot to replacement land, because it is adjacent to his wife’s (unaffected) property and shop.

• 6 APs will lose their entire unlicensed plots. 5 of these will not be eligible for compensation. However, they retain sizable licensed plots between 593 m2 and 800 m2. For the loss of all of their unlicensed land they are provided with preferential treatment for temporary employment in the civil works construction activities of the subproject.23 The sixth AP, (ER002) only occupies unlicensed land and will lose 71.5 percent of his 277 m2 plot. He is therefore eligible for compensation with a full replacement plot of up to 800m2 with an ownership license.24

• The AP no. ER041 cannot be identified or located and the APs ER002 and ER036 have been identified but cannot be located. Continued efforts will be made to find these APs, including placing final notices on the fences of their properties, to enable the project to provide compensation as indicated. However, if this remains unresolved by 1 April 2010, the time of commencement of civil works, the unlicensed properties of the absentee APs will be considered unoccupied government property and thus the occupants of unlicensed land will lose eligibility for receiving licenses for remaining land. The compensation for the licensed 187m2 portion of the AP with ID no ER036, as well as the compensation for affected structures of the 3 absentee APs, will be retained by the Governor of Orkhon Aimag in a special fund until 1 July 2010. In case LRCUDD needs to remove and store any affected structures belonging to these 3 APs to enable the project to commence civil works from April 2010, the compensation allocated for their affected structures will be applied towards covering the cost of their removal and storage. The LRCUDD will store the removed materials for 6 months and thereafter dispose of them.

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

• One AP losing a timber house of 60m2 will be compensated at a unit rate of MNT 258,640 totaling MNT 15,518,400.

• 2 APs having to relocate their gers, one to a replacement plot and the other to his remaining land in the same site, will be provided with specific relocation allowances (see below).

• 2 small wooden shops, which do no longer operate, will be compensated at unit rates of MNT 59,614, which at a total of 10.25m2 amounts to MNT 611,043.50.

22 APs slightly surpassing the 800m2 limit will be given ownership registration for the entire plot in their name. 23 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 8). 24 This AP ER002 is in fact landless and will receive his first land allocation under the law by legalizing his unlicensed occupancy.

23

• 39 APs, whose total of 1301.39m of fences will need to be removed and rebuilt at their new property boundaries, will be compensated at a market unit rate of MNT 5,000 per running meter, amounting to a total of MNT 6,506,950. The compensation rate covers the labor cost of removing and rebuilding the fences at current market rates. 3 APs require both moving of and improvements to their fences of a total length of 108.1m, which will cost MNT 102,695 with a unit rate of MNT 9,500.

• 8 APs losing 8 wooden open pit latrines will be compensated at the current market rate for material, transport and labor of MNT 85,648, totaling MNT 685,184.

• 1 wooden shed of 4m2 will be compensated at a unit rate of MNT 44,710 amounting to a total of MNT 178,840. Another 6.25m2 wooden shed with a unit rate of MNT 59,614 will be compensated at MNT 372,588. 3 iron sheds and 1 iron container need to be moved and compensation of MNT 50,000 per unit will be paid, totaling MNT 200,000.

• 1 entrance structure made of clay with a unit rate of MNT 74,518 will be compensated at MNT 279,443. Another 4m2 wooden entrance structure with a unit rate of MNT 59,614 will be compensated at MNT 238,456.

• An excavation for a basement sized 414.4m2 will be compensated at MNT 277,291 with a unit rate of MNT 669.14.

• A 29m2 parking lot will be compensated at a unit rate of MNT 133,585, totaling MNT 3,873,965.

• A 3m wooden bridge with a unit rate of MNT 111,900 will be compensated at MNT 335,700.

• A drain will be compensated at MNT 250,000.

• An iron fence of 9.7m will be compensated at MNT 55,775, the unit rate being MNT 5,759.

• A 4.9m2 concrete wall with a unit rate of MNT 99,852 will be compensated at MNT 489,275.

• An electricity connection will be compensated at MNT 120,000.

• A greenhouse will be compensated at MNT 260,000.

• A private vegetable plot will be compensated at MNT 10,000 for the loss of seed material.

• The relocation of 7 geodesic markers will be financed from the budget for civil works.

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

• For the notarization of 46 contracts with contract values up to MNT 1 Million at a unit rate of MNT 5,000 the project will pay a total of MNT 230,000. For the notarization of 4 contracts with contract values between MNT 1 and 10 Million at a unit rate of MNT 10,000 the project will pay a total of MNT 40,000. For the notarization of 1 contract with contract values between MNT 10 and 25 Million at a unit rate of MNT 25,000 the project will pay a total of MNT 25,000.

• For the preparation of cadastral maps for 26 remaining plots to be legalized under ownership licenses at a unit rate of MNT 16,593, the project will pay a total of MNT 431,418.

• For land license registration for 26 ownership licenses at unit rates of MNT 2,500, the project will pay a total of MNT 65,000.

• For property rights registration for 26 ownership licenses at unit rates of MNT 12,000, the project will pay a total of 312,000.

24

58. The compensation of temporary business losses will be carried out as follows:

• 7 AHs deriving livelihoods from a total of 9 commercial establishments may have business losses of up to 7 days each, due to construction work blocking their entrances and the moving of the iron shed housing the welding shop.

(i) The shopkeeper with AP ID No. ER0021 has an estimated daily average income of MNT 15,000 from a grocery shop and may have a business loss of up to MNT 105,000, which will be compensated by the subproject.

(ii) The shopkeeper with AP ID No. ER002425 has an estimated daily average income of MNT 38,888 from a grocery shop and a dry goods wholesale business and may have a business loss of up to MNT 272,216, which will be compensated by the subproject.

(iii) The shopkeeper with AP ID No. ER0031 has an estimated daily average income of MNT 14,000 from a welding shop and may have a business loss of up to MNT 98,000, which will be compensated by the subproject.

(iv) The 2 shopkeepers with AP ID No. ER048 operate 2 businesses. S. Boldsaikhan’s billiard hall has an estimated daily average income of MNT 30,000 and may have a business loss of up to MNT 210,000, which will be compensated by the subproject. G. Enkhtuya’s hairdressing salon has an estimated daily average income of MNT 25,000 and may have a business loss of up to MNT 175,000, which will be compensated by the subproject.

(v) The shopkeeper with AP ID No. ER0049 has an estimated daily average income of MNT 53,333 from a pharmacy and may have a business loss of up to MNT 373,331, which will be compensated by the subproject.

(vi) The shopkeeper with AP ID No. ER0050 has an estimated daily average income of MNT 24,000 from a pawnshop and may have a business loss of up to MNT 168,000, which will be compensated by the subproject.

(vii) The shopkeeper with AP ID No. ER0051 has an estimated daily average income of MNT 15,000 from a fruit and dairy shop and may have a business loss of up to MNT 105,000, which will be compensated by the subproject.

(viii) The compensation will be paid only on the basis of actual business days lost, as monitored by the Erdenet PIU.

59. The compensation of relocation costs will be carried out as follows:

• One AH having to relocate their ger from affected unlicensed land to his remaining legalized land at the same site will be paid a relocation allowance to cover the costs of taking down and erecting his ger at the current market rate for basic labor of MNT 15,000 per day. A total sum of MNT 45,000 has been allocated for this purpose covering the cost of 3 laborers for 1 day.

• 2 AHs, one of which is completely relocating (with a ger) to replacement land and the other to an apartment, are provided with a relocation allowance of MNT 250,000 each.

60. In the case of family ownership, the contracts signed between LRCUDD and the APs will be signed by all family members registered in an ownership or possessor certificate. In the absence of some member of such a family, a notarized power of attorney will be obtained.

61. 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

25 Landlord to APs ER048 (2 persons and 2 shops), ER049, ER50 and ER51; he owns 2 temporarily affected shops

25

preferential treatment for temporary employment in the civil works construction activities of the subproject.26

26 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 8).

26

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

AP HH ID No Name of AP

Affected

land (m2)

Property status of

affected land

Compensation of affected land (MNT)

Total licensed land (m2)

Total unlicen

sed land (m2)

Total land (m2)27

Affected land as proporti

on of total

land (%)

Type of affected structure(s)

Size of affected structure

Unit cost (MNT)

Compensation of affected

structures (MNT)

ER001 B. Ariuntuya 9 Owner 72,000 916 0 540 1.7 Wood fence (move) 9.2m 5000 46,000

Wood fence (move) 46.2m 5000 231,000

Shed, iron (move) 1 item (6.6m2) 50,000 50,000 ER002 N. Ouynbat 198 unlicensed

MNT None Replacement plot of up to 800m2 with owner license

0 277 277 71.5

Ger (relocation to replacement plot)

5 lattice (3 day

laborers) 15,000

Included in relocation allowance

Wood fence (move) 35m 5000 175,000

ER003 Ts. Enkhbaatar 30 unlicensed

MNT none Owner license to relative for remaining 259m2

750 289 1039 2.9 Shed, iron (move) 1 item

(6m2) 50,000 50,000

ER004 M. Galzol 44 Owner 352,000 900 0 829 5.3 Wood fence (move) 56.2m 5000 281,000

Wood fence (move) 17m 5000 85,000

ER005 Sh. Uranchimeg 16 unlicensed MNT none Owner license to relative for remaining 498m2

800 514 1314 1.2 Small shop, wood 8 m2 59,614 476,912

Wood fence (move) 38m 5000 190,000

ER006 S. Givaasuren 83 Owner 664,000 660 0 609 13.6 Latrine (move) 1 item 85,648 85,648 Wood fence

(move) 38.3m 5000 191,500 ER007 Kh. Ouynbat 63 Owner 504,000 1089 0 1053 6.0

Latrine (move) 1 item 85,648 85,648 Wood fence

(move) 10m 5000 50,000 ER008 Sh. Otgon 9 Owner 72,000 1100 0 991 0.9

Vegetable plot (seed) 1 item 10,000 10,000

27 Total land (including licensed and unlicensed occupied land) and total licensed land are distinguished, because some APs have previously lost some licensed land to the road or do not use all of the licensed land (fence around smaller plot). Therefore the total land figures in some cases are less than licensed land.

27

AP HH ID No Name of AP

Affected

land (m2)

Property status of

affected land

Compensation of affected land (MNT)

Total licensed land (m2)

Total unlicen

sed land (m2)

Total land (m2)27

Affected land as proporti

on of total

land (%)

Type of affected structure(s)

Size of affected structure

Unit cost (MNT)

Compensation of affected

structures (MNT)

ER009 L. Batbaatar 34 unlicensed MNT none Owner license for remaining 241m2

588 275 863 3.9 Wood fence (move) 18m 5000 90,000

Wood fence (move & improve) 20.8 9500 197,600

ER010 Kh. Munkhbaatar 8 unlicensed MNT none Owner license for remaining 199m2

620 207 827 0.9 Shed, wood 4m2 44,710 178,840

ER011 P. Batsukh 86 Owner 688,000 1600 0 942 9.1 Wood fence (move & improve) 49m 9500 465,500

Wood fence (move & improve) 38.3m 9500 363,850

ER012 B. Sainjargal 35 unlicensed MNT none Owner license for remaining 134m2

410 169 579 6 Entrance (clay) 3.75m2 74,518 279,443

ER013 Z. Tungalag 71 Owner 568,000 916 0 874 8.1 Excavation for basement 414.4m3 669.14 277,291

ER014 M. Ganbaatar 20 Owner 160,000 725 0 667 3 Wood fence (move) 25.8 5000 129,000

House, timber 60m2 258,640 15,518,400 Entrance 4m2 59,614 238,456

Shed, wood 6.25 m2 59,614 372,588 Latrine (move) 1 item 85,648 85,648 ER015 D. Chuluunbaatar

587 (total replac

ed (285

affected)

Owner

4,696,000 or Replacement plot with house, latrine and fence or Apartment APs are 2 vulnerable pensioners with only 302m2 of land left

710 0 587 48.6

Wood fence (move) 106m 5000 530,000

Container (move) 1 item (6m2) 50,000 50,000 Latrine (move) 1 item 85,648 85,648 ER016 Ch. Oyunjargal 64 Owner 512,000 650 0 570 11.2 Wood fence

(move) 47.5m 5000 237,500

Latrine (move) 1 item 85,648 85,648 ER017 D. Nergyi 8 unlicensed

MNT none Owner license for remaining 233m2

340 241 581 1.4 Wood fence (move) 14m 5000 70,000

ER018 J. Shaalav 43 unlicensed MNT none Owner license for remaining 216m2

476 259 735 5.9 Wood fence (move) 29m 5000 145,000

28

AP HH ID No Name of AP

Affected

land (m2)

Property status of

affected land

Compensation of affected land (MNT)

Total licensed land (m2)

Total unlicen

sed land (m2)

Total land (m2)27

Affected land as proporti

on of total

land (%)

Type of affected structure(s)

Size of affected structure

Unit cost (MNT)

Compensation of affected

structures (MNT)

Latrine (move) 1 item 85,648 85,648

ER019 A. Erdenechimeg 60 unlicensed

MNT none Owner license for remaining 133m2 Regularization of irregular possession license to ownership

500 193 693 8.7 Wood fence

(move) 32m 5000 160,000

Wood fence (move) 35.5m 5000 177,500

ER020 A. Altanshagai 71 unlicensed MNT none Owner license for remaining 299m2

0 370 370 19.2 Ger (relocation to remaining land)

5 lattice (3 day

laborers) 15,000

45,000 (relocation allowance)

ER021 G. Magsar 8 23

Owner unlicensed

64,000 None (unlicensed) 570 23 593 5.2 Wood fence

(move) 32m 5000 160,000

ER022 Ts. Urtnasan 27 unlicensed MNT none Owner license for remaining 334m2

400 361 761 3.5 Wood fence (move) 34m 5000 170,000

ER023 Ts. Diimaa 58 3

Owner unlicensed

464,000 None (unlicensed) 630 3 633 9.6 Wood fence

(move) 37.5m 5000 187,500

Parking lot 29m2 133,585 3,873,965 Bridge, wood 3m 111,900 335,700

Drain 1 item 250,000 250,000 Fence, iron

(move) 9.7m 5759 55,775

ER024 J. Orgil 38 Owner 304,000 750 0 617 6.2

Concrete wall 4.9m2 99,852 489,275 Wood fence

(move) 32m 5000 160,000 ER025 S. Battsengel 15 Owner 120,000 750 0 656 2.3

Small shop, wood 2.25 m2 59,614 134,132

ER026 O. Avirmed 6 unlicensed

MNT none Owner license to relative for remaining 310m2

724 316 1040 0.6 Wood fence (move) 17.49m 5000 87,450

ER027 Ch. Boroo 33 unlicensed MNT none Owner license for remaining 124m2

360 157 517 6.4 Wood fence (move) 25.4m 5000 127,000

ER028 Sh. Uranchimeg 16 unlicensed MNT none Owner license for remaining 576m2

0 592 592 2.7 Wood fence (move) 17m 5000 85,000

29

AP HH ID No Name of AP

Affected

land (m2)

Property status of

affected land

Compensation of affected land (MNT)

Total licensed land (m2)

Total unlicen

sed land (m2)

Total land (m2)27

Affected land as proporti

on of total

land (%)

Type of affected structure(s)

Size of affected structure

Unit cost (MNT)

Compensation of affected

structures (MNT)

ER029 Ch Yavuukhuu 27 Owner 216,000 648 0 576 4.7 Wood fence (move) 19m 5000 95,000

ER030 G. Munkhtur 223 unlicensed MNT none Owner license for remaining 302m2

0 525 525 42.4 Wood fence (move) 45.5m 5000 227,500

Wood fence (move) 34m 5000 170,000

Shed, iron (move) 1 item (84m2) 50,000 50,000 ER031 Z. Enkhsaikhan 33 Owner 264,000 561 0 537 6.1

Electricity connect. 1 item 12,000 120,000

ER032 Kh. Lkhagva 38 Owner 304,000 703 0 648 5.9 Wood fence (move) 38.7m 5000 193,500

ER033 L. Davaa 46 unlicensed

MNT none Individual owner license for 800m2 to Davaa; owner license for jointly licensed 234m2 and remaining 89m2 to 1 relative

1034 135 1169 3.9 Wood fence (move) 47m 5000 235,000

Wood fence (move) 22m 5000 110,000

ER034 O. Batsukh (mortgage) 27 Owner 216,000 780 0 528 5.1

Green house 1 item (22.6m2) 260,000 260,000

ER035 Y. Nyamsuren 14 unlicensed MNT none Owner license for remaining 272m2

488 286 774 1.8 Wood fence (move) 15m 5000 75,000

ER036 D. Bat-Ochir

187

92

Possessor

Unlicensed

1,496,000 None (unlicensed) Regularization of irregular possession license to ownership

800 92 892 31.3 Wood fence (move) 92.8m 5000 464,000

30

AP HH ID No Name of AP

Affected

land (m2)

Property status of

affected land

Compensation of affected land (MNT)

Total licensed land (m2)

Total unlicen

sed land (m2)

Total land (m2)27

Affected land as proporti

on of total

land (%)

Type of affected structure(s)

Size of affected structure

Unit cost (MNT)

Compensation of affected

structures (MNT)

ER037 L. Altai

22 149

Possessor Unlicensed

176,000 None (unlicensed) Regularization of irregular possession license to ownership

800 149 949 18 None -- -- --

ER038 S. Munkhsuren 160 Possessor

1,280,000 Regularization of irregular possession license to ownership

800 0 713 22.4 Wood fence (move) 33m 5000 165,000

ER039 T. Doljinsuren

112 11

Possessor Unlicensed

896,000 None (unlicensed) Regularization of irregular possession license to ownership

800 11 811 15.2 None -- -- --

ER040 B. Baasansuren 340 unlicensed

MNT none Owner license to 1 relative for remaining 260m2; regularization of irregular possession license to individual 2 ownerships for Baasansuren and 1 relative (different from above)

1600 600 2200 15.5 Wood fence (move) 43m 5000 215,000

ER041 Unknown 287 unlicensed MNT none Owner license for remaining 478m2

0 765 765 37.5 None -- -- --

ER042 T. Ouyntsetseg 11 unlicensed

MNT none Owner license for remaining 64m2 Regularization of irregular possession license to ownership

800 75 875 1.3 Wood fence (move) 13m 5000 65,000

ER043 B. Munkhjargal 39 unlicensed

MNT none; Owner license to relative for remaining 575m2

(Has other750m2 plot)

0 614 614 6.4 Wood fence (move) 20m 5000 100,000

31

AP HH ID No Name of AP

Affected

land (m2)

Property status of

affected land

Compensation of affected land (MNT)

Total licensed land (m2)

Total unlicen

sed land (m2)

Total land (m2)27

Affected land as proporti

on of total

land (%)

Type of affected structure(s)

Size of affected structure

Unit cost (MNT)

Compensation of affected

structures (MNT)

ER044 G. Erdenesuvd 326 unlicensed MNT none Owner license for remaining 492m2

0 818 818 40 Wood fence (move) 51m 5000 255,000

Wood fence (move) 26m 5000 130,000

ER045 Kh. Ouynbaatar 57 unlicensed MNT none Owner license for remaining 900m2

0 960 960 5.9 Latrine (move) 1 item 85,648 85,648

Wood fence (move) 25.7m 5000 128,500

ER046 D. Lkhagvasuren 9 unlicensed

MNT none Regularization of irregular possession license to individual owner license for 820m2; owner license for remaining unlicensed 140m2 to 1 relative

820 149 969 0.9

Latrine (move) 1 item 85,648 85,648

ER047 Kh. Battumur 497 unlicensed

MNT none Owner license to relative for remaining 103m2

Regularization of irregular possession license to ownership

1600 600 2200 22.6 Wood fence (move) 22.6m 5000 113,000

ER048 S. Boldsaikhan 0 -- 0 -- -- -- -- -- -- -- --

ER049 L. Gerelmaa 0 -- 0 -- -- -- -- -- -- -- --

ER050 G. Munkhzul 0 -- 0 -- -- -- -- -- -- -- --

ER051 Sh. Yanjmaa 0 -- 0 -- -- -- -- -- -- -- --

32

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

AP HH ID No Name of AP

Compensation of transaction costs (MNT)

Annual business income

temporarily affected (MNT)

Total annual HH income, all sources

(MNT)

Days of

busi-ness loss

Compensa-tion of

business loss (MNT)

Affected proportion of total annual HH income

HH size

Per capita per month

income (MNT)

Vulnerable HH

Compensation of relocation costs (MNT)

ER001 B. Ariuntuya 5000 0 4336000 0 0 0 3 120440 no 0

ER002 N. Ouynbat 36093 0 272000 0 0 0 4 5667 yes 250,000

ER003 Ts. Enkhbaatar 36093 0 11136000 0 0 0 6 154666 no 0

ER004 M. Galzol 5000 0 8672000 0 0 0 4 180667 no 0

ER005 Sh. Uranchimeg 36093 0 1936000 0 0 0 2 80666 yes 0

ER006 S. Givaasuren 5000 0 5728000 0 0 0 5 95467 no 0

ER007 Kh. Ouynbat 5000 0 2072000 0 0 0 4 43167 yes 0

ER008 Sh. Otgon 5000 0 11769999 0 0 0 6 163472 no 0

ER009 L. Batbaatar 36093 0 7472000 0 0 0 4 155666 no 0

ER010 Kh. Munkhbaatar 36093 0 4008000 0 0 0 5 66800 yes 0

ER011 P. Batsukh 10000 0 2296000 0 0 0 4 47833 yes 0

ER012 B. Sainjargal 36093 0 4608000 0 0 0 6 64000 yes 0

ER013 Z. Tungalag 5000 0 1200000 0 0 0 5 20000 yes 0

ER014 M. Ganbaatar 5000 0 1576000 0 0 0 5 26266 yes 0

ER015 D. Chuluunbaatar 56093 0 2684000 0 0 0 7 31952 yes 250,000

ER016 Ch. Oyunjargal 5000 0 3072000 0 0 0 4 64000 yes 0

ER017 D. Nergyi 36093 0 4936000 0 0 0 3 137100 no 0

33

AP HH ID No Name of AP

Compensation of transaction costs (MNT)

Annual business income

temporarily affected (MNT)

Total annual HH income, all sources

(MNT)

Days of

busi-ness loss

Compensa-tion of

business loss (MNT)

Affected proportion of total annual HH income

HH size

Per capita per month

income (MNT)

Vulnerable HH

Compensation of relocation costs (MNT)

ER018 J. Shaalav 36093 0 2294000 0 0 0 4 47790 yes 0

ER019 A. Erdenechimeg 36093 0 1192000 0 0 0 2 49667 yes 0

ER020 A. Altanshagai 36093 0 3600000 0 0 0 2 150000 no 45,000

ER021 G. Magsar 5000 5,400,000 7696000 Up to 7 105,000 0 5 128250 no 0

ER022 Ts. Urtnasan 36093 0 6904000 0 0 0 7 82190 yes 0

ER023 Ts. Diimaa 5000 0 408000 0 0 0 6 5666 yes 0

ER024 J. Orgil 10000 14,000,000 27872000 Up to 7 272,216 0 4 580666 no 0

ER025 S. Battsengel 5000 0 136000 0 0 0 3 3780 yes 0

ER026 O. Avirmed 36093 0 5192000 0 0 0 6 72111 yes 0

ER027 Ch. Boroo 36093 0 900000 0 0 0 5 15000 yes 0

ER028 Sh. Uranchimeg 36093 0 1632000 0 0 0 7 19428 yes 0

ER029 Ch Yavuukhuu 5000 0 972000 0 0 0 1 81000 yes 0

ER030 G. Munkhtur 36093 0 6272000 0 0 0 4 130666 no 0

ER031 Z. Enkhsaikhan 5000 5,040,000 5176000 Up to 7 98,000 0 4 107833 no 0

ER032 Kh. Lkhagva 5000 0 408000 0 0 0 5 6800 yes 0

ER033 L. Davaa 36093 0 3600000 0 0 0 5 60000 yes 0

ER034 O. Batsukh 5000 0 1568000 0 0 0 5 26133 yes 0

ER035 B.Sengedorj 36093 0 3840000 0 0 0 4 80000 yes 0

ER036 D. Bat-Ochir 10000 0 ?. 0 0 0 1 ?. . 0

34

AP HH ID No Name of AP

Compensation of transaction costs (MNT)

Annual business income

temporarily affected (MNT)

Total annual HH income, all sources

(MNT)

Days of

busi-ness loss

Compensa-tion of

business loss (MNT)

Affected proportion of total annual HH income

HH size

Per capita per month

income (MNT)

Vulnerable HH

Compensation of relocation costs (MNT)

ER037 L. Altai 5000 0 136000 0 0 0 3 3800 yes 0

ER038 S. Munkhsuren 10000 0 3436000 0 0 0 3 95444 no 0

ER039 T. Doljinsuren 5000 0 2536000 0 0 0 6 35200 yes 0

ER040 B. Baasansuren 36093 0 1800000 0 0 0 1 150000 no 0

ER041 Unknown 36093 0 ?. 0 0 0 1 ?. . 0

ER042 T. Ouyntsetseg 36093 0 1680000 0 0 0 4 35000 yes 0

ER043 B. Munkhjargal 36093 0 2208000 0 0 0 5 36800 yes 0

ER044 G. Erdenesuvd 36093 0 1924000 0 0 0 3 53444 yes 0

ER045 Kh. Ouynbaatar 36093 0 1432000 0 0 0 3 39770 yes 0

ER046 D. Lkhagvasuren 36093 0 6272000 0 0 0 5 104500 no 0

ER047 Kh. Battumur 36093 0 3240000 0 0 0 6 45000 yes 0

ER048 S. Boldsaikhan 5000 19,800,000 19,800,000 Up to 7 Boldsaikhan:

210,000 Enkhtuya: 175,000

1.9% 2 825,000 no 0

ER049 L. Gerelmaa 5000 19,200,000 25,336,000 Up to 7 373,331 1.9% 5 422,266 no 0

ER050 G. Munkhzul 5000 8,640,000 13,576,000 Up to 7 168,000 1.9% 3 377,111 no 0

ER051 Sh. Yanjmaa 5000 5,400,000 5,672,000 Up to 7 105,000 1.9% 3 157,555 no 0

35

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

AP HH ID No Name of AP Notarization Cadastral

map Land license registration

Property rights

registration Possession

license Total

ER001 B. Ariuntuya 5000 0 0 0 0 5000

ER002 N. Ouynbat 5000 16593 2500 12000 0 36093

ER003 Ts. Enkhbaatar 5000 16593 2500 12000 0 36093

ER004 M. Galzol 5000 0 0 0 0 5000

ER005 Sh. Uranchimeg 5000 16593 2500 12000 0 36093

ER006 S. Givaasuren 5000 0 0 0 0 5000

ER007 Kh. Ouynbat 5000 0 0 0 0 5000

ER008 Sh. Otgon 5000 0 0 0 0 5000

ER009 L. Batbaatar 5000 16593 2500 12000 0 36093

ER010 Kh. Munkhbaatar 5000 16593 2500 12000 0 36093

ER011 P. Batsukh 10000 0 0 0 0 10000

ER012 B. Sainjargal 5000 16593 2500 12000 0 36093

ER013 Z. Tungalag 5000 0 0 0 0 5000

ER014 M. Ganbaatar 5000 0 0 0 0 5000

ER015 D. Chuluunbaatar 25000 16593 2500 12000 0 56093

ER016 Ch. Oyunjargal 5000 0 0 0 0 5000

ER017 D. Nergyi 5000 16593 2500 12000 0 36093

ER018 J. Shaalav 5000 16593 2500 12000 0 36093

ER019 A. Erdenechimeg 5000 16593 2500 12000 0 36093

36

AP HH ID No Name of AP Notarization Cadastral

map Land license registration

Property rights

registration Possession

license Total

ER020 A. Altanshagai 5000 16593 2500 12000 0 36093

ER021 G. Magsar 5000 0 0 0 0 5000

ER022 Ts. Urtnasan 5000 16593 2500 12000 0 36093

ER023 Ts. Diimaa 5000 0 0 0 0 5000

ER024 J. Orgil 10000 0 0 0 0 10000

ER025 S. Battsengel 5000 0 0 0 0 5000

ER026 O. Avirmed 5000 16593 2500 12000 0 36093

ER027 Ch. Boroo 5000 16593 2500 12000 0 36093

ER028 Sh. Uranchimeg 5000 16593 2500 12000 0 36093

ER029 Ch Yavuukhuu 5000 0 0 0 0 5000

ER030 G. Munkhtur 5000 16593 2500 12000 0 36093

ER031 Z. Enkhsaikhan 5000 0 0 0 0 5000

ER032 Kh. Lkhagva 5000 0 0 0 0 5000

ER033 L. Davaa 5000 16593 2500 12000 0 36093

ER034 O. Batsukh 5000 0 0 0 0 5000

ER035 B.Sengedorj 5000 16593 2500 12000 0 36093

ER036 D. Bat-Ochir 10000 0 0 0 0 10000

ER037 L. Altai 5000 0 0 0 5000

ER038 S. Munkhsuren 10000 0 0 0 0 10000

ER039 T. Doljinsuren 5000 0 0 0 0 5000

37

AP HH ID No Name of AP Notarization Cadastral

map Land license registration

Property rights

registration Possession

license Total

ER040 B. Baasansuren 5000 16593 2500 12000 0 36093

ER041 Unknown 5000 16593 2500 12000 0 36093

ER042 T. Ouyntsetseg 5000 16593 2500 12000 0 36093

ER043 B. Munkhjargal 5000 16593 2500 12000 0 36093

ER044 G. Erdenesuvd 5000 16593 2500 12000 0 36093

ER045 Kh. Ouynbaatar 5000 16593 2500 12000 0 36093

ER046 D. Lkhagvasuren 5000 16593 2500 12000 0 36093

ER047 Kh. Battumur 5000 16593 2500 12000 0 36093

ER048 S. Boldsaikhan 5000 0 0 0 0 5000

ER049 L. Gerelmaa 5000 0 0 0 0 5000

ER050 G. Munkhzul 5000 0 0 0 0 5000

ER051 Sh. Yanjmaa 5000 0 0 0 0 5000

38

I. LAR BUDGET, FINANCES AND DISBURSEMENT 62. Table 17 shows the budget for LAR in the Erdenet 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 6 and 7), 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 14). 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 Erdenet Basic Urban Services Improvement Subproject

Unit rate Cost Asset type Unit MNT USD

No. of units MNT USD

1. Land

Residential and commercial m2 8,000 5.63 1,761 14,088,000 9,907.17

Subtotal 14,088,000 9,907.17

2. Structures

Fence 1 (move) m 5,000 3.52 1301.39 6,506,950 4,575.91

Fence 2 (move & improve) m 9,500 6.68 108.1 1,026,950 722.19

House, timber m2 258,640 181.88 60 15,518,400 10,913.08 Latrine m2 85,648 60.23 8 685,184 481.85 Shed, wood 1 m2 44,710 31.44 4 178,840 125.77 Shed, wood 2 m2 59,614 41.92 6.25 372,588 262.02 Shed, iron / container Item 50,000 35.16 4 200,000 140.65 Shop, small, wood m2 59,614 41.92 10.25 611,043.50 429.71 Entrance 1, clay m2 74,518 52.40 3.75 279,443 196.51 Entrance 2, wood m2 59,614 41.92 4 238,456 167.69 Excavation for basement m3 669.14 0.47 414.4 277,291 195.00 Parking lot m2 133,585 93.94 29 3,873,965 2,724.31 Bridge, wood m 111,900 78.69 3 335,700 236.08 Drain Item 250,000 175.81 1 250,000 175.81 Fence, iron (move) m 5,759 4.05 9.7 55,775 39.22 Concrete wall M2 99,852 70.22 4.9 489,275 344.08 Electricity connection Item 120,000 8.44 1 120,000 8.44 Greenhouse Item 260,000 182.84 1 260,000 182.84 Vegetable plot (seed) Item 10,000 7.03 1 10,000 7.03

Subtotal 31,289,860.50 22,004.12

3. Transaction costs

Notarization of contract 1 Lump sum 5,000 3.52 46 230,000 161.74

39

Unit rate Cost Asset type Unit MNT USD

No. of units MNT USD

Notarization of contract 2 Lump sum 10,000 7.03 4 40,000 28.13

Notarization of contract 2 Lump sum 25,000 17.58 1 25,000 17.58

Cadastral map survey Lump sum 16,593 35.16 26 431,418 303.39

Land license registration Lump sum 2,500 1.76 26 65,000 45.71

Property rights registration Lump sum 12,000 7.03 26 312,000 219.41

Subtotal 1,103,418 775.96

4. Temporary business disruption

Business loss 1 (ER021) Days 15,000 10.55 7 105,000 73.89 Business loss 2 (ER024) Days 38,888 27.35 7 272,216 191.43 Business loss 3 (ER031) Days 14,000 9.85 7 98,000 68.92 Business loss 4 (ER048a) Days 30,000 21.09 7 210,000 147.68 Business loss 5 (ER048b) Days 25,000 17.58 7 175,000 123.07 Business loss 6 (ER049) Days 53,333 37.50 7 373,331 262.54 Business loss 7 (ER050) Days 24,000 16.87 7 168,000 118.14 Business loss 8 (ER051) Days 15,000 10.55 7 105,000 73.89

Subtotal 1,506,547 1,059.46 5. Other provisions Relocation 1 (move ger within site), estimate Cost 45,000 31.60 1 45,000 31.6

Relocation 2 (move 1 AH, incl. ger, to relocation plot, move 1 AH to apartment), estimate

Cost 250,000 175.81 2 500,000 351.62

Subtotal 545,000 383.26

Subtotal of Compensation Measures 1-5 48,532,825.50 34,129.98

6. Administration 4% of 1-5 1,941,313 1,365.20

7. Contingencies 10% of 1-6 5,047,413.80 3,549.52

Grand Subtotal (GOM) 55,521,552.30 39,044.69

8. Monitoring (Loan) Days 306,441 215.5 26.4 8,090,042 5,689.20

GRAND TOTAL 63,611,594.30 44,733.89

63. The Grand Subtotal entails costs incurred for compensation of land, structures, transaction costs, business losses and relocation, as well as administration 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 percent of the cost of compensation at replacement cost and allowances to the Orkhon Aimag Government before LARP implementation, which will be directly deposited to the bank account of the Orkhon Aimag LRCUDD for disbursement. LRCUDD will prepare a resolution for disbursement of compensation and rehabilitation funds for

40

approval by the Governor of Orkhon Aimag. The cost for monitoring and evaluation will be covered from loan funds.

64. The Erdenet PIU will work with the Orkhon 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 Orkhon 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 percent of compensation will be made within 1 month of the time of conclusion of contractual agreements. The remaining 25 percent will be paid at the time of vacating of the affected assets.28 Disbursement will be carried out in the office of the Erdenet 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 65. Monitoring of compliance with the LARP and the LARF during implementation is carried out by the Erdenet PIU together with the PMU, as well as by an external monitoring agency (EMA), which may be a local consulting firm or NGO, or a qualified individual.

i. Internal Monitoring 66. The Erdenet 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.29 The Project mid-term review will include a separate section on the progress of LARP implementation. Upon completion of LAR activities in the Erdenet subproject, the Orkhon Aimag Government will prepare a resettlement completion report for submission to ADB. Table 18 provides the format for the monthly LAR monitoring reports.

67. The objectives of internal monitoring are to ensure:

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

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

(iii) Adequate and prompt payment of compensation; and

(iv) Timely grievance redress.

Table 18: Internal Monitoring Form Subproject site Total no. of AP

households (HH)

Quarter LAR Activities

1 2 3 4 5 6 Comments

Part A. Preparation/Procedural steps

28 An exception will be made in the case of alteration or construction of houses and other structures, when the first payment of compensation proves insufficient. The RPIC or Working Group will approve the release of the remaining 25 percent or part thereof to ensure timely completion of alterations or construction. 29 As and when necessary to report significant progress, implementation issues, or status of earlier identified problems 30 City Government of Ulaanbaatar, Aimag Governments, DOR, Land Administration Department, Property Relations Agency, Citizens Representative Khural of Capital City or Aimags as well as of Districts and Soums, District/Soum Governor, Khoroo/Bagh Governor, RPIC, PMU, PIU, CBO and NGO, AP representatives.

41

Quarter LAR Activities 1 2 3 4 5 6

Comments

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. AP HH)

Commencement of civil works ( )

68. In addition, the Audit Department of the Orkhon 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 Erdenet PIU, will periodically review audits, and report any irregularities to ADB, to allow early identification and resolution of problems encountered.

42

ii. External Monitoring and Evaluation 69. 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 Erdenet, 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.

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

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

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

• Identification and selection of impact indicators;

• Impact assessment through quantitative and qualitative surveys;

• Assessment of whether compensation was adequate to replace losses;

• Assessment of business losses and whether compensation was adequate;

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

• Assessment of adequate relocation and rehabilitation of households ;

• 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.

71. Among the key indicators will be the following32:

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

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

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

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

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

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

(vii) Implementation and effectiveness of income restoration measures;

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

43

(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.

72. The EMA will carry out post-implementation evaluation on the basis of the socio-economic 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 73. The implementation schedule indicating the timeline for activities in the design and implementation of the Erdenet subproject LARP is shown in Table 19.

Table 19: LARP Implementation Schedule for the Erdenet Subproject 2009 2010 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 & Orkhon 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 *Continued SEP 2010, MAR & SEP 2011 & SEP 2012

Baseline

1st M&E

44

Annex 1: Detailed Technical Design Map for LAR at Erdenet subproject

45

46

47

48

49

50

51

52

53

54

55

56