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

MON 2301 URBAN DEVELOPMENT SECTOR PROJECT

Land Acquisition and Resettlement Plan for the Khailaast Road Improvement Subproject

in Ulaanbaatar

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

October 2009

iii

LETTERS OF CONCURRENCE BY THE GOVERNMENT OF MONGOLIA

iv

Соёмбо Адриян Рутенбэрг

МОНГОЛ УЛС АХБ-ны Монгол улс дахь Монголын

ЗАМ, ТЭЭВЭР, БАРИЛГА, суурин төлөөлөгчийн

газрын захирал ХОТ БАЙГУУЛАЛТЫН ЯАМ бөгөөд суурин төлөөлөгч

15170 Барилгачдын талбай 3,

Чингэлтэй дүүрэг, Улаанбаатар, МОНГОЛ

Утас: (976-11) 31-06-12, Факс: (976-11) 32-29-04

И-мэйл: webmaster@mrtcud.gov.mn

2009.08.12 № 7/295

“Хот байгуулалтын салбарын МОН-2301 төсөл”-ийн

Хайлаастын замын Газар чөлөөлөлт, нүүлгэн

шилжүүлэлтийн төлөвлөгөө (ГЧНШТ)-ний төслийг дэмжих тухай

Адриян Рутинберг танаа,

Азийн хөгжлийн банкны зээлийн хөрөнгөөр хэрэгжиж буй “Хот байгуулалтын

салбарын МОН-2301 төсөл”-ийн Улаанбаатар хотын авто замыг сайжруулах

бүрэлдэхүүн хэсгийн нэг Хайлаастын авто замын “Газар чөлөөлөлт, нүүлгэн

шилжүүлэлтийн төлөвлөгөө”-ний төслийг дэмжиж байна.

Хүндэтгэн ёсолсон,

Б. Баасан

Барилга, орон сууц, нийтийн

аж ахуйн бодлогын газрын дарга

v

vi

Symbol

MONGOLIA GOVERNOR OF THE CAPITAL CITY

15160 Ulaanbsaatar City,

Chingeltei District, Sukhbaatar square 11,

Tel: 32-71-99, Fax: (976-11) 32-43-31

6 August, 2009 ref # 1/1500

Your letter (ref # 128) dated on 16 July, 2009

To: Project Management Unit of UDSP MON -2301

We have no additional statements to the draft LARP for Khailaast, as the city government

organizations’ statements have been considered, when you formulated the Land Acquision and

Resettlement Plan for the Khailaast Road, subproject of the Urban Road Improvement

component of the USDP MON 2301 funded by an Asian Development Bank loan.

GOVERNOR OF THE CAPITAL CITY AND

MAYOR OF ULAANBAATAR CITY G. MUNKHBAYAR

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ABBREVIATIONS

ADB Asian Development Bank

AP Affected person

BP Bank Policies (ADB)

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

LAD Land Administration 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

PRA Property Relations Agency

PUSO Public urban services organization

RPIC Resettlement Plan Implementation Committee

ROW Right of way

RRP Report and Recommendations of the President (ADB)

UDSP Urban Development Sector Project

Notes

Currency Unit Tugrugs (MNT)

MNT 1.00 = $ 0.0007031

$ 1.00 = MNT 1,422

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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: URBAN ROAD IMPROVEMENT COMPONENT, UDSP

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CONTENTS Letters of Concurrence by the Government Of Mongolia............................................................. iii 

Abbreviations .............................................................................................................................. vii 

Location Map: Urban Road Improvement Component, USDP..................................................... ix 

Contents....................................................................................................................................... xi 

Executive Summary .................................................................................................................... xii 

A.  Introduction........................................................................................................................1 

B.  Scope of Land Acquisition and Resettlement....................................................................2 

C.  Socioeconomic Profile of the Affected Households...........................................................5 

D.  Objectives, Policy Framework and Entitlements ...............................................................9 

E.  Consultation and Public Participation..............................................................................14 

F.  Grievance Redress Mechanism ......................................................................................15 

G.  Institutional Framework ...................................................................................................15 

H.  Compensation and Relocation Strategy..........................................................................16 

I.  LAR Budget, Finances and Disbursement ......................................................................18 

J.  Monitoring and Evaluation...............................................................................................20 

K.  Implementation Schedule................................................................................................22 

Annex 1:   Detailed Technical Design Map for LAR at Khailaast subproject .........................24 

Annex 2a:   Cut-off date notification for Khailaast subproject ..................................................27 

Annex 2b:   Notification of APs for UDSP subprojects.............................................................29 

Annex 3:   Affected persons and assets with compensation strategy of Khailaast Urban Road Improvement Subproject .............................................................................................................31 

Annex 4:   Attendance sheets for AP consultation meetings held during 2009 .....................33 

Annex 5:   Grievance Action Form (GAF) ..............................................................................35 

Annex 6:   Detailed Measurement Survey and Valuation of Affected Land at the Khailaast Subproject by the Ulaanbaatar Capital City Land Administration Department............................38 

Annex 7:   Detailed Measurement Survey and Valuation of Affected Structures at the Khailaast Subproject by the Ulaanbaatar Capital City Property Relations Agency.....................40 

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EXECUTIVE SUMMARY This updated Land Acquisition and Resettlement Plan (LARP) for the Khailaast Road Improvement Subproject in Ulaanbaatar under the urban road improvement component of the Urban Development Sector Project (Project) is agreed upon between the Government of Mongolia (GOM), the Government of the Capital City of Ulaanbaatar and the Asian Development Bank. All provisions of this LARP are determined by the Land Acquisition and Resettlement Framework (LARF) for the Project. The policy framework and entitlements for the Project are based on the applicable Mongolian Laws1 and the ADB Policy on Involuntary Resettlement (IRP) of 1995.

Subproject site and ROW: The subproject will improve a 1.1 km dirt road section (including drainage) of a main road traversing the Khailaast ger area in Khoroo 16 of Chingeltei District, by paving the road surface and constructing sidewalks and drainage. The right of way (ROW) of the road includes a 7m wide carriageway (2 lanes of 3.5m each), a side walk of 1.5m width on each side, a 1m wide drain on the left, and on the right a revetment (slope stabilization) of variable width and an approximately 4 m wide drainage construction.

Scope of LAR impact: A total of 7 households will be affected by land acquisition and resettlement (LAR), including 35 affected persons (APs), 17 male and 18 female. 5 of the households are vulnerable due to incomes below the poverty line and the disability of one AP. None of vulnerable APs experience livelihood losses due to the Project or are affected by a loss of housing. One non-vulnerable AP’s small business needs to be relocated to a new plot of land. Seven households will lose a total of 421.5 m2 of land. Two of these are owners, 2 possessors and 3 unlicensed legalizable occupants of the affected land. A total of 8 residential structures will be affected, including 6 fences (168.6m), 1 shed (4m2) and 1 wall foundation (1.52m2). A single commercial structure, a building for a household fuel shop, of 71.5m2 size will be affected. The owner of the shop may experience temporary loss of business. Temporary disturbances due to construction are 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 Khailaast subproject site. Therefore, the ADB Policy on Indigenous People will not be triggered by this subproject. Adverse differential gender impact by the road improvement project 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 Khailaast subproject are summarized in the Entitlement Matrix in Table 12 of this LARP.

Consultation and grievance redress: Information, consultation and participation of APs are ensured through individual and public meetings throughout the LARP preparation and implementation process. Four public meetings to disclose and discuss the draft LARP were held in 2006 and 2009. A three-step grievance mechanism with a clearly defined timeline of 4 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 RPIC, formed on 14 July 2008 under Resolution 330 of the Mayor of the Capital City and Governor of Ulaanbaatar, is responsible for the implementation of the Khailaast subproject LARP. With the support of the PMU, the

1 Civil Code of Mongolia, 2002; Law of Mongolia on Land, 2002, amendments 2003/04/05/06; Law on Allocation of Land to Mongolian Citizens for Ownership, 2003, amendments 2005/08

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Ulaanbaatar PIU assists the RPIC and ensures resettlement safeguard compliance prior to any land acquisition or resettlement and the award of civil works contracts. The PMU, together with the Ulaanbaatar PIU, is responsible for adequate supervision of the implementation of the 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 Ulaanbaatar PIU together with the PMU, as well as by an external monitoring agency (EMA).

Compensation strategy and budget: Losses of land, structures and livelihoods, as well as transaction and relocation costs for each AP are covered.

• Four owners and possessors of affected land totaling 216 m2 will be compensated at the current government rate of MNT 13,200 per m2 for the Khailaast ger area. The total cost of compensation for this land will be MNT 2,851,200. • The remaining portion of occupied unlicensed land of two APs will be legalized by providing the APs with licenses and state registration. • The lost full plot of 71.5 m2 occupied unlicensed land of one AP will be compensated with a replacement plot of comparable size and quality, with an ownership license and state registration. • Six APs, whose fences totaling 186.6m 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 933,000. • One AP fully losing his business structure consisting of a wooden and a concrete section of 36.5 m2 and 35m2, respectively, will be compensated at market unit rates for these types of structures and the total compensation for the two sections will be MNT 2,693,475. • One AP losing a small 1.52m2 concrete foundation will be compensated at the market rate of MNT 224,786. • One AP losing a 4 m2 wooden shed will be compensated at the market rate of MNT 140,600. • Transaction costs will amount to a total of MNT 247,500. • The potential business losses of one AP of up to 90 days may amount to up to MNT 1,249,920. • This AP will be paid a relocation allowance to cover transport costs on an actual cost basis at current market rates amounting to a maximum of MNT 50,000.

The budget for land acquisition and resettlement in the Khailaast subproject is expected to amount to MNT 9,598,712 or USD 6,750 for compensation as well as administration and contingency costs, which are funded from local government resources, and MNT 6,741,702 or USD 4,741 for monitoring, funded from the ADB loan. The total LAR budget for the Khailaast subproject is MNT 16,340,414 or USD 11,491.

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A. INTRODUCTION 1. This updated Land Acquisition and Resettlement Plan (LARP) for the Khailaast Road Improvement Subproject under the urban road improvement component of 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. An update of the LARP is required because (i) the changed detailed technical design for the Khailaast subproject avoids and minimizes LAR impacts and considerably reduces the number of APs, and (ii) the application of Mongolian laws to LAR in local scale urban projects and the method of valuation of land for compensation were corrected in the updated LARF and are now reflected in this LARP.

2. This LARP is agreed upon between the Government of Mongolia (GOM), the Government of the Capital City of Ulaanbaatar 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 Khailaast subproject LARP implementation schedule.

3. The urban roads improvement component is envisaged to: (i) provide links from the city center to expanding, as well as newly established ger areas; (ii) reduce travel time and transportation cost (as a result of better road conditions); (iii) promote public and traffic safety; (iv) reduce air pollution from dust caused by passing vehicles; and (v) provide more comfortable, reliable access. It will cause a significant improvement in the living standards at the ger areas by promoting better access to basic social services such as schools, hospitals, and work places. It may serve as an incentive for socio-economic development as it will encourage more people to engage in small business ventures.

4. The subproject will improve a 1.1 km dirt road section (including drainage) of a main road traversing the Khailaast ger area in Khoroo 16 of Chingeltei District2, by paving the road surface and constructing drainage on both sides of the carriageway. The Khailaast ger area is primarily a residential area, located on hilly terrain, which is typical among peri-urban sites in Ulaanbaatar. It consists of a mixture of single dwellings and gers3 situated in plots with wooden fences as boundaries. Almost parallel to the alignment of the road is a natural drain created by storm flow run-off during intense rainfall events. The roadway and drain span approximately 10–12 meters at its narrowest, and around 20–30 meters at its widest portion. A map of the subproject area is provided in Annex 1.

5. Private cars, public buses and privately operated minibuses are the main means of transportation in the area. In addition there are trucks delivering water to water kiosks and other utility vehicles used by small businesses, such as meat and vegetable retail shops, eateries, and variety stores, for replenishing their supplies. However, public buses and minibuses do not service the dirt road portion of the Khailaast road. Therefore, residents have to walk from their homes to the bus terminal at the end of the paved road, which is about 1.1 km from the farthest point. The road improvement by the subproject will extend public transport to the current boundary of the ger area and also enhance accessibility for private vehicles. This will translate into a significant improvement in the standard of living at the ger area by facilitating better access to the residents’ places of work, as well as schools, hospitals, public offices and other basic services. It may also stimulate the establishment of new small enterprises along and near the road.

2 The Capital City of Ulaanbaatar is divided into districts, and districts into sub-districts, called Khoroo. 3 Gers are circular, movable, traditional Mongolian homes which normally consist of five (5) panels and measure six (6) meters in diameter. These types of dwellings have been in use from the pre-socialism period (as dwellings of nomadic families), up to the present time.

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B. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 6. The right of way (ROW) of the 1.1 km subproject road, which runs from south to north, includes a 7m wide carriageway (2 lanes of 3.5m each), a side walk of 1.5m width on each side, a 1m wide drain on the left, and on the right a revetment (slope stabilization) of variable width and an approximately 4 m wide drainage construction. Accordingly, the total ROW is 15 meters minimum plus revetment of variable width depending on topography (see map in Annex 1).

7. In early 2009 the technical design of the road alignment at Khailaast Road had been changed compared to the design of the 2006 feasibility study, to improve drainage on the left side of the road, which is located on a fairly steep slope. This would have permanently affected 21 households including 2 buildings with shops. In the majority of cases moving the fences back by several meters would have sufficed, but the 2 shops would have been displaced completely. After detailed field inspections and discussions with the road design consultants, the road alignment was modified and ROW adjusted on both sides to a technically feasible minimum, which can accommodate effective drainage works. Thereby, permanent impact was reduced to 7 households, including 1 fully displaced commercial structure and 6 partially affected plots of land. Furthermore, temporary impact due to construction disturbances can now be avoided, as the available public space and acquired land will be sufficient for construction work, storage of materials and parking of machinery. The following assessment of the scope of LAR impact is based on the census of the APs carried out by PIU, as well as data provided by the LAD and PRA of the Capital City. At the time of conducting the AP census, the cut-off date for the subproject was publicly notified in the subproject area, including the office of the Governor of Khoroo 16 of Chingeltei District (see Annex 2a). The APs have also been notified individually by the District LAD using a notification form specially designed for the Project (Annex 2b)

i. Affected People 8. Table 1 indicates the number and types of affected households and persons in the Khailaast subproject. A total of 7 households will be affected, 6 of which could be fully enumerated in the AP census. For one permanently absent household partial census data was obtained from relatives. There are a total of 35 APs, 17 male and 18 female, 15 of which are children. The only female headed household with 2 persons migrated to the USA. 2 women are the holders of titles to their households’ land. There is one disabled person. None are elderly. 5 of the households are vulnerable due to incomes below the poverty line and the disability of one AP. One household’s income is confirmed to be above the poverty line, while it is assumed that the migrant household would be above the poverty line by Mongolian standards. One non-vulnerable AP’s small business needs to be relocated to a new plot of land, as his unlicensed plot is located partially within the ROW and the remainder between the ROW and the main drain for surface run-off, and the LAD therefore seeks to move him from this location. A detailed list of all affected persons and assets of the Khailaast subproject can be found in Annex 3.

9. Among the APs, most are members of the Khalkh ethnic group, which is the mainstream cultural group in Mongolian society. There are a few APs from the Buriad ethnic minority present in the Khailaast subproject site, who have migrated to UB and integrated into the mainstream culture. Therefore, the ADB Policy on Indigenous People will not be triggered by this subproject.

10. Adverse differential gender impact by the road improvement project 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 women APs 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 participating in the subproject RPIC as the AP representative. Due consideration will be given to complaints and grievances lodged by affected women in the LAR process. Women are not directly affected by loss of livelihoods due to this subproject.

11. The single female headed AP household (AP HH ID KL006) is permanently absent from Mongolia and has been contacted by her neighboring relative, who is also an AP (KL007). She has designated him as her representative and given him notarized power of attorney to handle all LAR related matters in her name. All compensation measures due to this AP will be provided in

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her name and paid to her authorized representative. However, the female land title holder will not require replacement land, as only a small proportion of her land is affected.

12. Although there are 5 vulnerable AP households in the subproject, none of these experience livelihood losses due to the Project or are affected by a loss of housing. All vulnerable APs losing land will be provided with special assistance for the preparation of contracts and the administrative process of land transfer.

Table 1: Affected people

AP No. Percent Comments Households (HH), total 7 100 HH, present, fully enumerated 6 85.7

HH, absentees 1 14.3 Migrated abroad4 Persons 35 100 Male 17 48.6 Female 18 51.4 Children under 18 15 42.9 Female headed households 1 14.3 Migrated abroad

Female land title holders 2 28.6 1 migrated abroad Elderly persons 0 0 Disabled persons 1 2.9 Due to illness Vulnerable households 5 71.4 Not significantly affected APs to be relocated 1 14.3 Small business

ii. Affected Land 13. The size of the total affected land of the 7 AP households is 421.5m2 (see Table 2). Of these, 2 APs are titled owners of a total of 91m2, 2 are possessors of a total of 125m2 and 3 are non-titled legalizable occupants with a total of 205.5m2. The size of affected residential land is 350m2 with 6 AP households, 2 of which have no license for the affected land. The size of affected commercial land is 71.5m2, occupied by 1 non-titled legalizable AP. As already indicated, temporary disturbance of land is not anticipated. Two AP households with partially affected non-titled legalizable land own titled residential land adjacent to the non-titled plots. The other non-titled legalizable occupant of commercial land will be fully displaced and requires relocation to a titled plot in the area.

Table 2: Affected land

Extent of loss Type of Loss Unit No. Full Partial

Percent of APs

No. 7Total m2 421.5 1 6 100

No. 2Owned m2 91 0 2 28.6

No. 2Possessed m2 125 0 2 28.6

No. 0Rented m2 0 0 0 0

No. 3Non-titled occupation, legalizable m2 205.5 1 2 42.8

No. 6Residential m2 350 0 6 85.7

4 One household, 2 persons of the Buriad ethnic group and the only female headed household, is permanently absent, as it migrated to the USA, Information, though incomplete, could be obtained from their relative and neighbor. Inclusion in the socio-economic survey was not possible.

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Extent of loss Type of Loss Unit No. Full Partial

Percent of APs

No. 1Commercial m2 71.5 1 0 14.3

No. 0Temporary disturbance m2 0 -- -- 0

iii. Affected Structures 14. There are a total of 8 affected structures on residential land, 6 of which are fences of a total length of 186.6m, belonging to 6 AP households. One of these households will lose a 4m2 shed, which can be rebuilt on its remaining land. One AP will lose a 1.52 m2 concrete foundation for her fence. One AP owns a shop for household fuels, selling coal, wood and liquid fuel. The size of the simple shop structure is 71.5m2, all of which will be affected and needs to be relocated. Community or public structures are not affected.

Table 3: Affected structures

Type of Loss Unit No. of structures No. of APs Comments

Residential structures No. 8 6 No. 6Fences m 186.6

6 Roadside of property

Latrines No. 0 0 No. 1Sheds m2 4

1

Garages No. 0 0 No. 1Foundation m2 1.52

1 Steep slope support of fence

Commercial structures No. 1 1 No. 1Houses m2 71.5

1 100% affected

Community and public resources No. 0 0

iv. Affected Livelihoods 15. The livelihood of the coal shop owner is potentially adversely affected, if he cannot be relocated and build a new structure for his business in time for the acquisition of his current land. Since civil works activities for the project will most likely commence with the warm season in April/May of 2010, it is expected that the entire small business can be relocated and commence commercial operations by that time at the latest. It is preferable to acquire the land and displace the business premises by mid-September of 2009 (the end of the summer season), but since this specific case requires the legalization of the AP by providing a replacement plot with ownership title, as well as the rebuilding of the business premises, acquisition of this land and removal of the current structure may have to be done by May 2010 only. If delays should occur due to late allocation and registration of replacement land, the AP will be eligible for cash compensation equal to income lost during the interruption period of the business. However, the AP is required to complete the construction of the replacement structure within reasonable time, i.e. 3 months of receipt of the new plot (during the summer season).

Table 4: Affected livelihoods

Type of Loss No. Percent Comment

Business 1 14.3 Potential temporary loss due to relocation of business, avoidable if relocated timely

Employment 0 0 No employees

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v. Level of impact severity 16. Since the Khailaast urban road 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, this 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 Khailaast subproject is discussed in the following section C.

C. SOCIOECONOMIC PROFILE OF THE AFFECTED HOUSEHOLDS 17. To gain an in-depth understanding of the socio-economic situation of the APs in Khailaast road a sample survey of 5 of the 7 AP households was carried out. The very small number of a total of only 7 households enabled the LAR team to survey 5 households, in order to make observations on a meaningful sample. Some basic data on ethnicity, land, education and income have been derived from the census, other indicators of living standards and conditions from the sample survey. Where possible the presentation of the data is gender disaggregated to ascertain possible differences in the situation and perceptions of women and men.

Table 5: Ethnicity among APs at Khailaast subproject

Ethnic group Total Men Women Khalkh 32 91.4 16 94.1 16 88.9 Buriad 3 8.6 1 5.9 2 11.1 Total 35 100 17 100 18 100

18. The largest ethnic group among the APs is the Mongolian majority group of the Khalkh with a total of 32 or 91.4 percent (16 men and 16 women) of the 35 persons living in the 7 households. 3 persons or 8.6 percent are of the minority group of the Buriad, with one man and 2 women. The 2 Buriad women are from the small female headed household of mother and daughter who no longer reside in the subproject area, as they have migrated to the USA. For this household, data availability was constrained as only information from the neighbors was available; they were not included in the sample survey.

19. The total land occupied and property status among the AP households is depicted in Table 6. Four households or 57.1 percent occupy land in the 500 to less than 1000m2 and 3 in the 250 to less than 500m2 category. Three households own or possess the official allotment size of 700m2, all others have smaller properties. Five households are owners of land, of which only 2 have above 500m2. Two households possess 700m2 and 3 households occupy plots of below 500m2 without licenses. The only small business person among the APs owns 525m2 of unaffected residential land in the subproject area, in addition to the affected unlicensed plot and structure constituting his shop for household fuels. One of the land owners and 1 possessor are women, one of whom also has occupied unlicensed land next to her property. The same applies to another male landowner who has extended his small plot by occupying land in front of his property without a license.

Table 6: Size and property status of all land occupied by affected households

Total Gender of title holder Type / size classes No. Percent Male female

Total land occupied (m2) <250 0 0 0 250 - <500 3 42.8 3 500 - <1000 4 57.1 2 2 1000 and more 0 0 Total 7 100 5 2 Land owned

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Total Gender of title holder Type / size classes No. Percent Male female

<250 0 250 - <500 3 60 3 0 500 - <1000 2 40 1 1 1000 and more 0 0 Total 5 100 4 1 Land possessed <250 0 0 250 - <500 0 0 500 - <1000 2 100 1 1 1000 and more 0 0 Total 2 100 1 1 Land rented Total 0 0 Non-titled land <250 2 66.6 2 250 - <500 1 33.3 1 500 - <1000 0 0 1000 and more 0 0 Total 3 100

20. Among the structures owned by AP households are 4 residential houses, with one AP household owning 2 houses. 2 Households live in gers only, while one has both a house and a ger. The shop is located in a simple small house consisting of 2 separate sections. Six of the properties are fenced and 2 households own sheds. Among the residential properties 5 have open pit latrines. The general condition of the APs’ residences and shop was judged well maintained in 3 cases, poor in one and average in another.

Table 7: Type of structure owned by AP households

Total Comments

Type No. of HH No of structures

Residential 4 5 1 HH owns 2 houses House Commercial 1 1 Small coal and fuel wood seller

Ger (residential) 3 3

Fence / wall 6 6 All properties except small business are fenced

Latrine (open pit) 5 5

Shed 2 4

Other 2 3 1 HH owns a well; 1 HH owns a greenhouse and stalls, all of which are abandoned

21. Educational attainment among the APs above 10 years of age is in keeping with the national literacy rate of about 98 percent and a gross enrollment ratio of 95.4 percent. All have at least basic education and only one female teenager and one adult male had left school after primary school. Thirteen completed their secondary education, 5 men and 8 women, and 2 women and 1 man achieved a B.A (see Table 8).

Table 8: Educational attainment among above 10 yrs of age AP household members

Level Male Female Total

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No. Percent No. Percent No. Percent None 0 0 0 0 0 0

Primary (3rd grade) 1 9.1 1 7.1 2 8

Basic (10th grade) 4 36.4 3 21.4 7 28

Comp. secondary educ. (12th grade) 5 45.5 8 57.1 13 52

B.A. 1 9.1 2 14.3 3 12

Total 11 100 14 100 25 100

10 years of age or below 6 60 4 40 10 100

22. Total annual income (self declared) from all sources among the 7 APs is shown in Table 9. For one household income data are not available and among the other six half earn below MNT 5 million and the other half earn between MNT 5 and 7.5 million. Given household sizes ranging between 2 and 8 members with an average of 5, the per capita monthly incomes among 5 AP households are below the poverty line for UB City of MNT 101,100 and they qualify as vulnerable under the UDSP LARF. Three of these or 42.8 percent are severely poor with per capita per month incomes below MNT 75,000 (see Table 10). The only household above the poverty line has 4 members and earns MNT 6.27 million per year and has MNT 130,000 per capita per month. This is barely above the poverty line, especially since the AP’s family pays considerable regular medical bills due to serious chronic illnesses of the wife and children. Annual child support payments of MNT 136,000 per child from the government are an important steady source of income for all households.

Table 9: Annual incomes from all sources among AP households

MNT No. Percent <5,000,000 3 42.8

5,000,000-<7,500,000 3 42.8

7,500,000-<10,000,000 0 0

10,000,000-<15,000,000 0 0

15,000,000-<20,000,000 0 0

=>20,000,000 0 0

Total 6 85.7

No data 1 14.3

Averages MNT

Mean 4,644,000

Median 4,716,000

Range 3,408,000 – 6,272,000

Table 10: Per capita monthly incomes among AP households

MNT No. Percent <75,000 3 42.8

<=101,100 (poverty line) 2 28.6

<=150,000 1 14.3

<=200,000 0 0

<=350,000 0 0

Total 6 85.7

No data 1 14.3

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23. The employment status among 14 adults of working age shown in Table 11 indicates 3 persons are employed (2 male, 1 female), and 3 persons are self-employed (3 male), 4 persons are doing housework (4 female) and 4 persons are unemployed (2 male, 2 female). Each resident household in the subproject has 1 income earning person. The employed persons are wage and salaried workers, one in government service, while the self-employed derive income from taxi services, contracting in construction and the household fuel shop.

Table 11: Employment status among adult sample APs

Employment status

Total Men Women

Employed 3 2 1 Self-employed 3 3 0 Housework 4 0 4 Unemployed 4 2 2 Total 14 7 7

24. In a ranking exercise on household expenditure among the 5 sample households, both men and women indicated that they first spend on food, second on fuel and then on electricity. Women ranked transport and water costs fourth and fifth, while men assumed that clothes and water take corresponding positions in their budgets. Men ranked transport sixth. The positions 7 to 9 fall to medical, educational, and house maintenance expenses, with women indicating a higher rank for medical costs. Entertainment is unanimously lowest on the list of priorities, as the AP households are seeking to cover the cost of necessities. All 5 sample households considered unanimously that they had sufficient food available at all times, which meant eating 3 meals per day for 4 men and 4 women, whereas 1 women reported eating 4 and 1 man only 2 meals per day.

25. The following data indicate the status of living conditions and well-being among the sample AP households. All households have electricity and obtain drinking water from a nearby kiosk to which they walk between 100 and 500 meters. 50 percent of the respondents stated that men and 40 percent that children had the primary responsibility for fetching water in plastic containers pulled by hand on small trolleys. Only in the case of one household was there disagreement about whether the husband or the wife had the primary responsibility for water fetching. All 5 sample households use the traditional piishin or wood and coal burning stove for both cooking and heating. 2 households also use an electrical cooker. All buy the coal and wood from wholesalers delivering with trucks, but 3 also reported to be buying from the AP with a household fuel shop. Men take responsibility for obtaining household fuel, except in one household, where one of the older children takes on this task.

26. In terms of household equipment, 1 household reported to have no beds, in 1 the family owns 1 bed and 3 have 2 beds. There are 4 households with 1 TV and 1 household with 2 TVs. One family reported owning a radio. Only 1 family has a car, which is used for income generation as a taxi.

27. The health situation of the APs is characterized by the prevalence of colds and flues in 6 reported cases. Jaundice, joint pains, blood pressure, as well as blood and respiratory diseases were indicated by 1 household each. In one household, some members suffer from chronic hereditary hypoxia. The most frequently sought medical care is from government hospitals, with all households using them as their primary care provider; one woman indicated using a private hospital as well. Use of home remedies was reported by 2 women and 1 man also uses a traditional medical practitioner. Two households said that they travel less than 1 km and 2 households travel up to 5 km to their health care provider. One family uses services more than 5 km away.

28. The most frequent means of transport to school and work are walking and the bus. Nobody uses a bicycle, motorcycle or car. Among adults 50 percent travel more than 1 hour, 40 percent between 30 minutes and an hour and 20 percent less than 30 minutes. Two households reported that their children take up to an hour and 1 household said 30 minutes to travel to

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school. The cost of transport was assumed to be higher by women, who are reported to manage the transport budget: 3 indicated paying between MNT 25,000 and 50,000 per month, and 1 each less than MNT 25,000 and more than MNT 50,000 respectively.

29. Gender relations reflect the actual distribution of roles and responsibilities in the respective households. Women’s primary task is considered to be household work and men’s task is income generation, except in one household, where both husband and wife work, but the man is the primary person to look after the household due to his work hours as a security guard. Joint decision making was considered to characterize the home sphere, while in public matters 3 men claimed to make all decisions. Women disagree as in 4 cases they thought that decisions were made jointly. One household reported to be making separate decisions.

30. A relatively high degree of community cohesion is suggested by the fact that all respondents thought that there was next to no conflict in their neighborhood, although some drunkenness was reported to occasionally cause minor altercations. The occurrence of crimes was reported to be minor with a few thefts and violent fights. None of the respondents reported violence against women. According to the APs, there are no active CBOs in the community.

31. The APs were asked about their development needs and priorities and the construction of the subproject road was a unanimous first. Fifty percent stated the need for a kindergarten in the neighborhood. Among men improved TV programs, a nearby public school, and another water kiosk were the next priorities, while women emphasized the need for a supermarket and playgrounds.

32. Among the positive impacts of the new road people mostly expect better access to public services (5 respondents) and less dirt and dust (4). Better traffic safety and more local businesses are also expected. Two women also anticipate saving money given the closer proximity of services and businesses. The expected negative impacts include increased noise and danger for smaller children due to increased traffic. Accordingly, the APs suggested that the project install adequate road signs and speed breakers. In addition, it was suggested that the PIU ensure effective quality control in the construction of the road, so as to prevent its deterioration within a short time.

D. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS 33. 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 Khailaast subproject, while safeguarding their livelihoods. All provisions of this LARP are determined by the Land Acquisition and Resettlement Framework (LARF) for the Project. The policy framework and entitlements for the Project are based on the applicable Mongolian Laws5 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 Khailaast summarizes the key policy framework provisions of the LARF and presents the entitlement framework for the Khailaast subproject.

34. 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.

35. 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

5 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

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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.

36. 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 non-titled 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 owners, possessors, users, legalizable occupants, 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 38 items 2 & 3). This clearly satisfies the fundamental rule of the IRP that ‘no AP should be worse of than without the project’.

37. The Mongolian Law and practice of LAR are at variance with the IRP in several regards: (i) compensation for affected land is based on a government compensation tariff, not market rates; (ii) a depreciation coefficient in the valuation of affected structures is applied; (iii) income and livelihood rehabilitation are not provided; (iv) transaction costs are not included in compensation payments; (v) project internal grievance procedures preceding dispute resolution by governors and the courts are absent; (vi) public consultation and information disclosure is not mandatory, nor widely practiced; (vii) the declaration of an eligibility cut-off date is lacking; and (viii) there are no limitations on commencement of civil works until after completion of all LAR procedures.

38. 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 Khailaast 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.6

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 will be carried out by the Project staff and their government partners7 in individual as well as in public consultations with the APs. The process of notification and consultations is specified in sections F and H of the LARF.

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.

6 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. 7 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.

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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 community8).

(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.9

(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) 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.

(vii) Affected structures10 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.

(viii) 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.

(ix) 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.

(x) 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.

(xi) The Project will establish an accessible and responsive project internal grievance procedure, as indicated in Section F.

(xii) ADB IRP information disclosure and public consultation provisions will be observed, as indicated in Section E.

8 Not applicable if the replacement of public structures (electricity, water supply lines, etc) is covered under civil works contracts. 9 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. 10 Including houses, fences, sheds, latrines, garages and other immovable structures built on affected land.

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(xiii) 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.

(xiv) The time periods between conclusion of a contractual agreement with 75 percent payment of compensation and the permanent acquisition of an affected asset will be determined as follows:

a. Affected plot involving only the moving back of fences and acquisition of a portion of land, without housing structures11 (residential or business): within 2 months.

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

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

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

(xv) Civil works shall not commence unless all compensation, relocation and construction activities under section 14 a-d have been completed and short-term financial assistance for loss of income has been paid.

(xvi) 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.12

39. The eligibility and entitlements for specific types of losses in the Khailaast subproject are summarized in the Entitlement Matrix in Table 12. Each AP may experience a combination of the losses indicated in the first column. Each case is investigated and determined carefully so that all possible losses of the AP are covered.

Table 12: Entitlement Matrix for LAR in the Khailaast Subproject Type of Loss Specification Eligibility Compensation entitlements

Owner, possessor13 - 4 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 - 2 HHs

• Ownership license and State registration for remaining land will be provided by government14;

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

LAND (residential/ commercial/public/ community)

Full loss of plot (=>50%)

Owner, possessor - 0 HHs

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

11 Small structures (other than houses) can be rebuilt within the time periods stipulated for partial acquisition of otherwise empty land. 12 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. 13 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. 14 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.

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Type of Loss Specification Eligibility Compensation entitlements Legalizable occupant of land - 1 HH

• Land for land compensation through provision of replacement plot of comparable value and location as lost plot15;

• Ownership license and State registration; • All taxes, registration and transfer costs are waived or

included in compensation price

Moving back of fences

Owner, possessor, legalizable occupant of land - 6 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

Full loss of structure and relocation

Owner, possessor, legalizable occupant of land - 3 HHs

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

STRUCTURES (residential/ commercial/public/ community)16

Moving or relocation of ger

Owner, possessor, legalizable occupant of land - 0 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 - 1 HH

• 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 - 1 HH

• 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 - 5 HHs

• Assistance with preparation of contracts and administrative process of land transfer

Loss of structure All vulnerable APs - 0 HHs

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

Vulnerable AP

Temporary disturbance

All vulnerable APs - 0 HHs

• Preferential treatment to avoid or mitigate as quickly as possible

15 See footnote 13. 16 ‘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.

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Other provisions

Specification Eligibility Compensation entitlements

Unidentified Losses

Unanticipated impacts

All APs - 7 HHs

• To be identified during subproject implementation (especially with regard to users of land, lessees and temporary disturbances); measures will be formulated as appropriate according to the Project LARF and ADB policy, and reported to ADB prior to implementation

E. CONSULTATION AND PUBLIC PARTICIPATION 40. 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.

41. During the Project preparation stage in 2006, 2 initial AP consultations were held at the water kiosk in the subproject area on 20 July and 10 August, based on the preliminary technical design of the road and associated LAR impacts. The first meeting with APs and other stakeholders discussed issues and questions related to the configuration of the proposed road, expected LAR impacts and the need for future revision of AP numbers and impacts after the final detailed technical design during subproject implementation. The second meeting disclosed the initial draft LARP to the APs who were requested to review the copy placed at the Khoroo office and provide feedback, comments and objections. They were also informed about the constitution and functions of the Resettlement Plan Implementation Committee (RPIC) and requested to select an AP representative for their subproject RPIC.

42. In 2009 individual consultations have taken place at the time of field verification and identification of LAR scope based on the detailed technical design of the road and of census taking and enumeration of the socio-economic survey. APs where involved in discussions about opportunities to avoid and minimize LAR impact, especially to protect the ability of small neighborhood businesses to continue their services. The majority of APs expressed their appreciation of the road project and willingness to give up small portions of their properties for compensation to facilitate road construction. One household communicated apprehension about losing unlicensed land adjacent to their comparatively small titled plot, which they had incorporated into their fenced area. Options for legalizing the remaining unlicensed land after surrender of the portion located within the road’s ROW were discussed. The relocation of the small household fuel business and rebuilding of the shop was discussed with the AP and the LAD district officers.

43. The draft LARP for the Khailaast subproject was disclosed to an AP meeting at the office of the Governor of Koroo 16 of Chingeltei District on 26 June 2009, which was attended by representatives of the LAD and PRA as well. The APs were provided with a Mongolian translation of the key sections of the LARP. The legal rights and responsibilities of the stakeholders under the Project LARF, the compensation entitlements and the grievance and monitoring procedures were reviewed and discussed. The APs present concurred with the compensation strategy indicated in this LARP.17 Clarifications for open questions on ownership status for remaining unlicensed land and authorized representation for the absentee AP were incorporated into the revised draft LARP, which was disclosed to the APs in a consultation meeting on 8 July 2009.

44. Individual consultations in preparation of contractual agreements are ongoing and the LAR specialists of PMU are supporting LAD 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 17 One AP household complained that an old foundation outside its property and fence, to which it makes claims as it was built (without license or permit) by the previous owner of their licensed land and which is affected by the road, will not be compensated. However, the AP has no proof that the foundation was sold to her, the foundation was always located on unlicensed land owned by the government and is not within the fence of the AP household, but rather in front of its neighbor’s property. The LAD will provide the AP with a notice clarifying that the foundation cannot be considered his property. Nevertheless, the AP will receive a license with state registration for the remaining part of unlicensed land located within its fenced plot (see section H, paragraph 71, second bullet point).

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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 by any issues arising. The attendance sheets for AP consultation meetings held during 2009 are provided in Annex 4.

F. GRIEVANCE REDRESS MECHANISM 45. A grievance action form (GAF) to log and follow up AP grievances has been designed (see Annex 5). The Resettlement Plan Implementation Committee (RPIC) for the Khailaast subproject, the key institution in the grievance redress process, was formed on 14 July 2008 under Resolution 330 of the Mayor of the Capital City and Governor of Ulaanbaatar.

46. The Khoroo Governor as Vice Chairman of the RPIC will be the initial recipient of the grievance and log it in the GAF. The GAF will be signed by the Khoroo Governor and the AP, who will receive a signed copy. All GAFs shall be consolidated by the Khoroo Governor and presented to the RPIC for deliberation and appropriate action, on a weekly basis. Grievances unresolved at the RPIC level within 2 weeks of their lodging shall be referred to the respective District Governor for resolution within 1 week. Recommendations of the Governor will be referred to the Citizens’ Representative Khural for approval and final action. If there are still unresolved grievances after another week, a case will be filed in the appropriate courts. The grievance redress mechanism will include the following steps in Table 13:

Table 13: Grievance mechanism for Khailaast Subproject Steps Actors / actions Timing

AP lodges grievance with Khoroo Governor Khoroo Governor prepares GAF and initiates RPIC meeting 1 RPIC addresses grievance, informs AP and initiates action

2 weeks

If grievance is not resolved RPIC submits grievance to District Governor District Governor addresses grievance, informs AP and proposes resolution to District Citizens’ Representative Khural

1 week 2

District Citizens’ Representative Khural initiates action for resolution 1 week If grievance is not resolved

3 Grievance is referred to court system Open

G. INSTITUTIONAL FRAMEWORK 47. The RPIC formed on 14 July 2008 is responsible for the implementation of the Khailaast subproject LARP. With the support of the PMU, the Ulaanbaatar PIU assists the RPIC and ensures resettlement safeguard compliance prior to any land acquisition or resettlement and the award of civil works contracts. Close coordination and commitment between all stakeholders are facilitated by the participation of the following members:

• District Governor (Chairman)

• Governor of Khoroo (Vice Chairman

• Resettlement Specialist of PIU (Member

• Representative from the DOR (Member)

• Representative from the UB City Property Relations Agency (Member)

• Representative from the UB City Land Administration Department (Member)

• Representatives of the APs from each subproject Khoroo (Member)

• Representative from a CBO or NGO registered by the government (Member), if available.

48. 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 Capital City Land Administration Department office

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with concerned government officers, including RPIC members, AP representatives and other stakeholders of the UDSP subprojects in Ulaanbaatar on 19 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.

49. The main activities of the RPIC 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.

• The District Governor 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 subprojects’ APs by the city and aimag land administrations and governors, as well as the MRTCUD.

50. The PMU, together with the subproject PIUs, is responsible for adequate monitoring and supervision of the implementation of the LARP and the resulting impacts on APs. The PMU will be responsible for reporting the progress in implementing the LARP to the MRTCUD and ADB. H. COMPENSATION AND RELOCATION STRATEGY 51. A detailed account of the LAR impact and compensation of losses for each individual AP is provided in Annex 3. This section indicates the composite compensation strategy for each type of loss, i.e. land, structures and livelihoods, 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 LAD of the City Government of Ulaanbaatar, and the DMS and market rates (without depreciation for age) expressed in unit rates for structures, as provided by the PRA of the City Government of Ulaanbaatar. The documentation received from the LAD and PRA can be found in Annexes 6 and 7.

52. The compensation of affected residential and commercial land will be carried out as follows:

• Four owners and possessors of affected land (AP household identification numbers KL004, KL005, KL006, KL007) will experience partial losses ranging between 15 m2 and 110m2, totaling 216 m2. They will be compensated at the current government rate for the Khailaast ger area. At a government unit rate of MNT 13,200 per m2 for the Khailaast ger area, the total cost of compensation for this land will be MNT 2,851,200. The average

17

local market rate for land in the Chingeltei District ger areas is currently MNT 6,508 per m2 and the median rate is MNT 5,714 per m2. Therefore the current government rate is double the market rate and acceptable to the APs.

• Two APs losing a part of their occupied unlicensed land at sizes of 63 and 71m2, respectively, will not be compensated for their lost land in cash. The remaining portion of their occupied unlicensed land, 267 and 76m2, respectively, will be legalized by providing the APs with licenses and state registration. The AP with the household identification number KL002 already owns 700 m2 of land and will therefore receive a possessor license for the remaining unlicensed land. The other household (no. KL003) will receive an ownership license.

• One AP losing his full plot of occupied unlicensed land of 71.5m2 (AP ID no. KL001) will also not be compensated for his lost land in cash. He will receive free of cost a replacement plot of comparable size and quality in the Khailaast ger area, suitable for operating a household fuel shop selling coal and wood, with an ownership license and state registration.

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

• Six APs, whose total of 186.6m 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 933,000. The compensation rate covers the labor cost of removing and rebuilding the fences at current market rates.

• One AP fully losing his business structure consisting of a wooden and a concrete section of 36.5m2 and 35m2, respectively, will be compensated at market unit rates for these types of structures of MNT 70,300 and 80,600. However, due to the sub-standard construction and incomplete work carried out on these structures, the PRA applied a 50 percent deduction to the compensation rate18, thus determining unit rates of MNT 35,150 for the wooden structure and MNT 40,300 for the concrete structure. The total compensation for the two sections will be MNT 1,282,975 and 1,410,500, respectively, totaling MNT 2,693,475. This will suffice to replace the current structure with premises of a similar size and quality at the replacement plot to be provided to the AP.

• One AP losing a small concrete foundation of 1.52m2 supporting a section of her fence will be compensated at a market unit rate of MNT 147,88600, totaling MNT 224,786.

• One AP losing a 4 m2 wooden shed will be compensated at the market unit rate of MNT 70,300, with a 50 percent deduction for substandard construction, amounting to a unit rate of MNT 35,150 and a total compensation cost of MNT 140,600.

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

• For the notarization of 4 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 20,000. For the notarization of 3 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 30,000.

• For the preparation of cadastral maps for 1 replacement plot of an unlicensed affected plot and 2 remaining portions of unlicensed affected land to be legalized at a unit rate of MNT 50,000, the project will pay a total of MNT 150,000.

• For land license registration for the ownership licenses of the 1 replacement plot and 2 remaining portions of land (as in previous bullet point) at unit rates of MNT 2,500, the project will pay a total of 7,500. For the remaining plot of the AP with ID KL002 a possession license fee of MNT 10,000 will be paid by the project.

18 This is not equivalent to depreciation due to age.

18

• For property rights registration for the ownership licenses of the 1 replacement plot and 2 remaining portions of land (as in previous bullet point) at unit rates of MNT 10,000, the project will pay a total of 30,000.

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

• One AP experiencing the relocation of his business may have potential business losses for up to 90 days. His daily average income was calculated at MNT 13,888 according to his own information; business records do not exist. Accordingly, he may have to incur business losses of up to MNT 1,249,920. This potential business loss will occur if compensation and relocation cannot be achieved in the timeframe anticipated (see also section B, paragraph 15). The compensation will be paid only on the basis of actual business days lost, as monitored by the PIU.

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

• One AP having to relocate his business will be paid a relocation allowance to cover transport costs on an actual cost basis at current market rates. A total sum of MNT 50,000 has been allocated for this purpose, while the actual cost will be paid as compensation.

• The AP will also be given assistance to find an alternative plot.

I. LAR BUDGET, FINANCES AND DISBURSEMENT

57. Table 14 indicates the budget for LAR in the Khailaast 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 LAD and PRA (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 UB PRA. Transaction costs have been estimated by officers of the LAD. Business loss costs are based on the modest income estimates of the AP, who does not keep records for his small household fuel business. Relocation allowances will be paid according to actual market rates; a maximum budget estimate has been included for budgeting purposes. 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 14: Budget for Land Acquisition and Resettlement in the Khailaast Subproject

Unit rate Cost Asset type Unit MNT USD

No. of units MNT USD

1. Land Residential and commercial m2 13,200 9.28 216 2,851,200.00 2,005.06

Subtotal 2,851,200.00 2,005.062. Structures Houses 1 (wooden structure, sub-standard construction)

m2 35,150 24.72 36.5 1,282,975.00 902.23

Houses 2 (concrete structure, sub-standard construction)

m2 40,300 28.34 35.0 1,410,500.00 991.91

Fences m 5,000 3.52 186.6 933,000 656.12Sheds m2 35,150 24.72 4 140,600.00 98.87Foundation, concrete m2 147,886 104.00 1.52 224,786.72 158.08

Subtotal 3,991,861.72 2,807.22

19

3. Transaction costs Notarization of contract 1 Lump sum 5,000 3.52 4 20,000 14.10

Notarization of contract 2 Lump sum 10,000 7.03 3 30,000 21.10

Cadastral map survey Lump sum 50,000 35.16 3 150,000 105.49Land license registration Lump sum 2,500 1.76 3 7,500 5.27

Possession license fee Lump sum 10,000 7.03 1 10,000 7.03Property rights registration Lump sum 10,000 7.03 3 30,000 21.1

Subtotal 247,500 174.054. Livelihood Business loss Days 13,888 9.77 90 1,249,920 878.99Subtotal 1,249,920 878.995. Other provisions Relocation, estimate Cost 50,000 35.16 1 50,000 35.16Subtotal 50,000.00 35.16Compensation measures subtotal 1-5 8,390,481.72 5,900.48

6. Administration 4% of 1-5 335,619.27 236.027. Contingencies 10% of 1-6 872,610.10 613.65Grand Subtotal 9,598,711.09 6750.158. Monitoring Days 306,441 215.5 22 6,741,702.00 4,741.00

GRAND TOTAL 16,340,413.98 11,491.15

58. 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 local government budget as indicated in the Detailed Cost Estimate and Financing Plan of the Project RRP and the Ulaanbaatar City Government will allocate 100 percent of the cost of compensation at replacement cost and allowances before LARP implementation. The cost for monitoring and evaluation will be covered from loan funds.

59. The Land Administration Department (LAD) of the Capital City and Chingeltei District, with support from the UB PIU and the PMU resettlement specialists, manages 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 District LAD will consolidate all financial commitments of the contracts and refer these to the Capital City LAD, who will prepare a resolution to the Capital City Governor. The Governor will speedily approve and initiate the transfer of funds to the Capital City LAD for disbursement to APs. 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.19 Disbursement will be carried out in the office of the Governor of Khoroo 16 of Chingeltei District. No land will be acquired by the government or handed over to the PIUs 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.

19 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.

20

J. MONITORING AND EVALUATION 60. Monitoring of compliance with the LARP and the LARF during implementation is carried out by the Ulaanbaatar 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 61. The UB 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.20 The Project mid-term review will include a separate section on the progress of LARP implementation. Upon completion of LAR activities in the Khailaast subproject, the City Government of Ulaanbaatar will prepare a resettlement completion report for submission to ADB. Table 15 provides the format for the monthly LAR monitoring reports.

62. The objectives of internal monitoring are to ensure:

(i) Proper execution of responsibilities of key stakeholders;21

(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.

63. In addition, the Audit Department of the concerned District 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 UB PIU, will periodically review audits, and report any irregularities to ADB, to allow early identification and resolution of problems encountered.

ii. External Monitoring and Evaluation 64. 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 Khailaast, 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.

65. 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 augmentation22 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 living standards/incomes of APs before and after the Project;

20 As and when necessary to report significant progress, implementation issues, or status of earlier identified problems 21 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. 22 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.

21

• 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.

Table 15: 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 Identification of LAR scope ( )

Field verification and modification of technical design ( )

Formation and meetings of RPIC ( )

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)

Provision of replacement land (no. AP HH)

Construction of new structures (no. AP HH)

22

Quarter LAR Activities 1 2 3 4 5 6

Comments

Relocation to replacement land (no. AP HH)

Acquisition of land and other assets (no. AP HH)

Income restoration (no. AP HH)

Commencement of civil works ( )

66. Among the key indicators will be the following23:

(i) Socio-economic post-resettlement conditions of APs; (ii) Impact of LAR on women, children, elderly, the poor and other vulnerable groups; (iii) Degree of support for and post LAR status of affected vulnerable households; (iv) Perceptions of the APs regarding the LAR process implementation; (v) Participation and involvement of APs in LARP implementation; (vi) Effectives and fairness of valuation, compensation assessment and disbursement; (vii) Implementation and effectiveness of income restoration measures; (viii) Effectives and fairness of grievance redress mechanisms; (ix) Level of satisfaction among APs in the post-resettlement period; and (x) Adequacy of resettlement funds and results of financial audits.

67. 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 68. The implementation schedule indicating the timeline for activities in the design and implementation of the Khailaast subproject LARP is shown in Table 16.

Table 16: LARP Implementation Schedule for the Khailaast 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 RPIC 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

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

23

2009 2010 LARP ACTIVITIES 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07

Revision of draft LARP

AP consultation: disclosure of revised draft LARP

Endorsement by MRTCUD

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

Provision of replacement land Relocation to replacement land

Construction of new structures Income restoration

Commencement of civil works

Internal Monitoring

External monitoring and evaluation *Continued JUL 2011 & JUL 2012

Base line

1st M&E

2nd M&E

24

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

25

26

27

Annex 2a: Cut-off date notification for Khailaast subproject

28

Notice to the Residents of the Khailaast Ger Area The Government of the Capital City of Ulaanbaatar and the Ministry of Roads, Transport, Construction and Urban Development through the Urban Development Sector Project and with support by the Asian Development Bank will be constructing the main road through the Khailaast Ger Area.

Residents with properties (land and immovable structures) in the Right of Way of the road and thus directly affected by land acquisition for its construction are eligible for compensation, relocation and rehabilitation under the ADB Resettlement Policy of 1995.

Eligibility of persons and households under the ADB Policy will only be granted for their affected land and structures located in the Right of Way of the road before the cut-off date of 29 April 2009.

Any persons moving into and occupying land in the Right of Way of the Road on or after 29 April 2009 will not eligible for compensation, relocation and rehabilitation measures by the project.

Alterations to affected land and structures or construction of new structures in the Right of Way of the road undertaken on or after 29 April 2009 will not be eligible for compensation, relocation and rehabilitation measures by the project.

The Affected Persons eligible for benefits under the ADB Policy will be contacted by staff of the District Land Administration Department and of the UDSP over the coming weeks and consulted throughout the land acquisition and resettlement process.

29

Annex 2b: Notification of APs for UDSP subprojects

____________________________ ДҮҮРГИЙН ГАЗРЫН АЛБА

МЭДЭГДЭЛ

Дугаар: __________________________________________________ ____ он ____ сар ____өдөр Хэнд: __________________________________________________ Хаяг: ______________________________________________________________________________________

МУ-ын Засгийн газрын шийдвэрийн дагуу, Азийн Хөгжлийн Банк /АХБ/-ны хөнгөлттэй зээлээр хэрэгжиж буй “Хот

байгуулалтын салбарын МОН2301 төсөл ” нь ________________________ дүүргийн ___________________ -

нд________________________ барих юм. Дээр дурьдсан төслийн замын трасс дээр таны өмчилсөн/эзэмшсэн

дараахь газар/байгууламж байрлаж байгаа бөгөөд газар чөлөөлөлт, нүүлгэн шилжүүлэлтэнд өртөнө гэдгийг Таньд

албан ёсоор мэдэгдэж байна. Үүнд:

1. _______________________________________ 2. _______________________________________

3. _______________________________________ 4. _______________________________________

______________________дүүргийн Газрын албаны ажилтнууд, Төсөл Хэрэгжүүлэх Нэгж /ТХН/-ийн нүүлгэн

шилжүүлэлтийн мэргэжилтнүүд тантай биечлэн уулзана. Мөн нөлөөлөлд өртсөн бүх иргэдтэй “Газар чөлөөлөлт ба

нүүлгэн шилжүүлэлтийн төлөвлөгөө” болон төсөлтэй холбогдолтой бусад асуудлын талаар ярилцахаар зөвлөлдөх

уулзалтуудыг зохион байгуулна.

________________________ДҮҮРГИЙН _____________________________________ ГАЗРЫН АЛБАНЫ ДАРГА Гарын үсэг Утас: 633157 _____________________________________________________________________________________

____________________________ ДҮҮРГИЙН ГАЗРЫН АЛБА

МЭДЭГДЭЛ

Дугаар: __________________________________________________ ____ он ____ сар ____өдөр Хэнд: __________________________________________________

Хаяг: _____________________________________________________________________________________

МУ-ын Засгийн газрын шийдвэрийн дагуу, Азийн Хөгжлийн Банк /АХБ/-ны хөнгөлттэй зээлээр хэрэгжиж буй “Хот

байгуулалтын салбарын МОН2301 төсөл ” нь ________________________ дүүргийн ___________________ -

нд________________________ барих юм. Дээр дурьдсан төслийн замын трасс дээр таны өмчилсөн/эзэмшсэн

дараахь газар/байгууламж байрлаж байгаа бөгөөд газар чөлөөлөлт, нүүлгэн шилжүүлэлтэнд өртөнө гэдгийг Таньд

албан ёсоор мэдэгдэж байна. Үүнд:

1. _______________________________________ 2. _______________________________________

3. _______________________________________ 4. _______________________________________

______________________дүүргийн Газрын албаны ажилтнууд, Төсөл Хэрэгжүүлэх Нэгж /ТХН/-ийн нүүлгэн

шилжүүлэлтийн мэргэжилтнүүд тантай биечлэн уулзана. Мөн нөлөөлөлд өртсөн бүх иргэдтэй “Газар чөлөөлөлт ба

нүүлгэн шилжүүлэлтийн төлөвлөгөө” болон төсөлтэй холбогдолтой бусад асуудлын талаар ярилцахаар зөвлөлдөх

уулзалтуудыг зохион байгуулна.

Мэдэгдэл хүлээн авсан: ___________________________________ ______________________________________

30

LAND ADMINISTRATION DEPARTMENT, ____________________________ DISTRICT

NOTIFICATION

Number: ____________________________ ____ year ____ month ____day To: __________________________________________________ Address: __________________________________________________

In accordance with the decision of the Government of Mongolia the Urban Development Sector Project (UDSP) will

construct __________________________________________ in Khoroo ____________________________________

of _________________________ District with financial support from the Asian Development Bank (ADB). You are

hereby officially notified that the following land owned/possessed by you and structures thereupon are located in the

Right of Way (ROW) of the above mentioned project and will be affected by land acquisition and/or resettlement:

5. _______________________________________ 6. _______________________________________ 7. _______________________________________ 8. _______________________________________

Land officers from the ____________________________ Land Administration Department and land acquisition and

resettlement specialists from the Project Implementation Unit (PIU) will visit you are at your residences or businesses

and also hold several consultation meetings with all affected persons to discuss the Land Acquisition and Resettlement

Plan and other related issues for your area.

DIRECTOR OF THE _____________________________ _____________________________________ LAND ADMINISTRATION DEPARTMENT Signature Phone number: 633157 ______________________________________________________________________________

LAND ADMINISTRATION DEPARTMENT, ____________________________ DISTRICT

NOTIFICATION

Number: ____________________________ ____ year ____ month ____day To: __________________________________________________ Address: __________________________________________________

In accordance with the decision of the Government of Mongolia the Urban Development Sector Project (UDSP) will

construct __________________________________________ in Khoroo ____________________________________

of _________________________ District with financial support from the Asian Development Bank (ADB). You are

hereby officially notified that the following land owned/possessed by you and structures thereupon are located in the

Right of Way (ROW) of the above mentioned project and will be affected by land acquisition and/or resettlement:

9. _______________________________________ 10. _______________________________________ 11. _______________________________________ 12. _______________________________________

Land officers from the ____________________________ Land Administration Department and land acquisition and

resettlement specialists from the Project Implementation Unit (PIU) will visit you are at your residences or businesses

and also hold several consultation meetings with all affected persons to discuss the Land Acquisition and Resettlement

Plan and other related issues for your area.

Notification received by: _________________________________ ______________________________________ Signature Address/phone number: _________________________________________________________________________

31

Annex 3: Affected persons and assets with compensation strategy of Khailaast Urban Road Improvement Subproject

AP HH ID No Name of AP HH

size Affected land (m2)

Property status of affected land

Compensa-tion of affected land (MNT)

Total land (m2) Affected land as proportion of total land occupied

Type of affected structure(s)

Size of affected structure

Compensa-tion of affected structures (MNT)

Shop structure wood section 36.5m2 1,282,975.00

KL001 B. Mijiddorj 4 71.5 No license, legalizable

None (replacement plot w/ license)

525 owned 71.5 unlicensed 100%

Shop structure concrete section 35 m2 1,410,500.00

Wood fence 2m 10,000.00 KL002 A. Enkhmaa 5 63 No license,

legalizable None (remaining plot w/ license)

700 owned 330 unlicensed 6.1% Concrete

foundation 1.52 m2 224,786.72

KL003 B. Batchuluun 8 71 No license, legalizable

None (remaining plot w/ license)

289 owned 147 unlicensed 15.9% Wood fence 34.5m 172,500.00

Wood fence 25.3m 126,500.00 KL004 T. Batgerel 4 25 Owner 330,000 379 owned 6.6%

Shed 4 m2 140,600.00

KL005 D. Jambal 5 66 Owner 871,200 499 owned 13.2% Wood fence 30.8m 154,000.00

KL006 E. Khomgorzul 2 110 Possessor 1,452,000 700 possessed 15.7% Wood fence 54m 270,000.00

KL007 M. Enkhbat 7 15 Possessor 198,000 700 possessed 2.1% Wood fence 40m 200,000.00

32

Affected persons and assets with compensation strategy of Khailaast Urban Road Improvement Subproject, continued

AP HH ID No Name of AP

Compensation of transaction costs (MNT)

Affected annual HH income, all sources (MNT)

Total annual HH income, all sources (MNT)

Days of business loss

Compensation of business loss (MNT)

Affected proportion of total annual HH income

Per capita per month income

Vulnerable HH

Compensa-tion of relocation costs (MNT)

KL001 B. Mijiddorj 82,500 5,000,000.00 6,272,000.00 Up to 90 Up to 1,249,920.00 Up to 20% 130,667.00 No Up to 50,000

KL002 A. Enkhmaa 67,500 0 3,408,000.00 0 0 0 56,800.00 Yes 0

KL003 B. Batchuluun 67,500 0 5,200,000.00 0 0 0 54,167.00 Yes 0

KL004 T. Batgerel 5,000 0 4,232,000.00 0 0 0 86,800.00 Yes 0

KL005 D. Jambal 10,000 0 5,208,000.00 0 0 0 80,000.00 Yes 0

KL006 E. Khomgorzul 10,000 0 n/a 0 0 n/a n/a Yes 0

KL007 M. Enkhbat 5,000 0 3,544,000.00 0 0 0 42,190.00 Yes 0

33

Annex 4: Attendance sheets for AP consultation meetings held during 2009

34

35

Annex 5: Grievance Action Form (GAF)

Name: _______________________________________________________

Address: _____________________________________________________

Phone: ____________________________________

Date: ____________________

Project site: ________________________________

District: ____________________________________ Aimag/City:

____________________________

Name and position of recipient: ____________________________________________

Date of last disclosure meeting: ____________________________________________

Category of grievance: Legal Technical

Financial Social

Administrative Other

Item Description Name, position and signature of

person(s) responsible:

AP: Date:

Grievance

Recipient: Date:

36

Resolution Officer in charge: Date:

Description Name, position and signature of

person responsible:

Action taken Officer in charge: Date:

Follow up Officer in charge: Date:

37

Comments, observations

Officer in charge: Date:

38

Annex 6: Detailed Measurement Survey and Valuation of Affected Land at the Khailaast Subproject by the Ulaanbaatar Capital City Land Administration Department

39

22.6.2009 LIST OF THE VALUATION OF LAND OF HOUSEHOLDS, COMPANIES SETTLED ALONG

THE ROAD OF KHAILAAST

Num Name of the possessor of property

ID number Address, location Ownership status

Total land m2

Land by cadastral map, m2

Affected land, m2

Not affected land, m2

Valuation of affected land by owned land tariff

Valuation of owned land

Explanation

small structure 1 B. Mijiddorj DE72072311 starting point of

new road non licensed 73 27 47 for coal sale

2 A. Enkhmaa EP77071404 Sogoot 59-0781 owned 1033 700 63

285

Affected land is not part of owned land

3 B. Batchuluun UD69092813 Sogoot 59-0752А owned 445 298 71 71 Affected land is not part of owned land

4 T. Batgerel KHM70052215 Sogoot 59-0750 owned 379 379 25 330000 25m2 are affected

5 D. Jambal CHK62011775 Sogoot 59-0750А owned 499 499 66 871200 66 m2 are affected

6 E. Khongorzul KHJ84041681 Sogoot 59-747 possessed 2192 700 110 1452000

7 M. Enkhbat UE58021710 Sogoot 59-748 possessed 1744 700 15 198000

TOTAL 6292 3276 377 403 1650000 1201200

Research done by: Ts. Khashchuluun, specialist of Land Valuation and Payment Division of LAD

40

Annex 7: Detailed Measurement Survey and Valuation of Affected Structures at the Khailaast Subproject by the Ulaanbaatar Capital City Property Relations Agency

41

LIST OF THE VALUATION (WITH UNIT COST) OF THE PROPERTIES OF HOUSEHOLDS, COMPANIES SETTLED ALONG

THE ROAD OF KHAILAAST

Num Name of the possessor of property

Name of valuated property Size of structure Unit cost per

MNT/1m2 Deduction Size of plot m2, length of fence m Valuation (MNT)

Small wooden structure wooden structure sized 3.75*4.5* 8.26*7.2, with shed sized 1.8*1.9 for liquid petrol next to it.

70,300.00 0.50 36.50 1,282,975.00

1 B. Mijiddorj

Small shop for coal concrete structure with size 5,5x 6.36 80,600.00 0.50 35.00 1,410,500.00

Moving wooden fence 2м 5,000.00 2.00 10,000.00

2 A. Enkhmaa Concrete foundation 7.6*0.4*0.5 147,886.00 1.52 224,786.72

3 B. Batchuluun Moving wooden fence 34.5м 5,000.00 34.50 172,500.00

Moving wooden fence 25.3м 5,000.00 25.30 126,500.00 4 T. Batgerel

Wooden shed 2*2*2 70,300.00 0.50 4.00 140,600.00

5 D. Jambal Moving wooden fence 30.8м 5,000.00 30.80 154,000.00

6 E. Khongorzul Moving wooden fence 54м 5,000.00 54.00 270,000.00

7 M. Enkhbat Moving wooden fence 40м 5,000.00 40.00 200,000.00

Total 3,991,861.72

* The deduction was made because concrete floor, roof insulation, and walls are made not technically correct.

Note: Land valuation has not been included in this valuation.