Resettlement Completion Report

Annual Report 24 December 2012

MON: Urban Development Sector Project —

Bulgan Subproject

Prepared by Purevsuren Dorjnamjil, Resettlement Specialist, Project Management Unit

for the Government of Mongolia and the Asian Development Bank.

This resettlement report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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RESETTLEMENT COMPLETION REPORT 24/12/2012 Project number: L2301-MON MONGOLIA: URBAN DEVELOPMENT SECTOR PROJECT RESETTLEMENT COMPLETION REPORT OF BULGAN SUBPROJECT Prepared by D. Purevsuren, Resettlement Specialist, PMU

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TABLE OF CONTENTS

TABLE OF CONTENTS .................................................................................................. 2

ABBREVIATIONS ………………………………………….………………………………..3

RESETTLEMENT REPORT OF BULGAN SUB PROJECT ............................................ 6

A. LARP DEVELOPMENT AND IMPLEMENTATION ……….………...………………..6

B. CHALLENGES ......................................................................................................... 13

C. RECOMMENDATION ............................................................................................... 14

D. CONCLUSION.......................................................................................................... 14

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ABBREVIATIONS

ADB Asian Development Bank

AH affected household

AP affected person

CBO Community-based organization

DOR Department of Road

DMS Detailed measurement survey

GAF grievance action form

GOM Government of Mongolia

HH household

IRP Involuntary Resettlement Policy of ADB

LRCUDD Land Relations, Construction and Urban Development Department

LAR Land acquisition and resettlement

LARF Land acquisition and resettlement framework

LARP Land acquisition and resettlement plan

MRTCUD Ministry of Road, Transportation, Construction and Urban Development

NGO Nongovernment organization

PIU Project implementation unit

PMU Project management unit

ROW right of way

RRP Report and Recommendations of the President (ADB)

WG Working group

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RESETTLEMENT REPORT OF ERDENET SUB PROJECT

1. Asian Development Bank (ADB) funded L2301–MON: Urban Development Sector Project has been started resettlement activities in Bulgan subproject since June 2011 according to the provision G-34 of Loan Agreement between Government of Mongolia and the ADB. The Working Group (WG) for the Subproject formed on 18 August 2011 under Resolution A/327 of the Governor of Bulgan aimag. The working group is responsible for the implementation of the land acquisition and resettlement plan (LARP) and consists of representatives from Aimag Government Administration, Land Administration Department of the Aimag and citizen. 2. In accordance with Land Acquisition and Resettlement Framework (LARF) and ADB's Involuntary Resettlement Policy (1995), PMU resettlement specialist has developed Land Acquisition and Resettlement Plan (LARP) for the sub project that has land acquisition and resettlement (LAR) impacts and stipulated arrangements for consultation and public participation, grievance redress, and monitoring and evaluation. In May 2012, the LARP has been approved by MRTCUD, Governor of Bulgan aimag and ADB and has been uploaded in ADB‘s website. 3. The Bulgan subproject will construct 1.3 km water supply pipelines, which traverse the subproject ger areas and water supply source well. As the planned 1.3 km water supply pipelines connects to the existing 2 water kiosks and existing water supply pipelines, ger are water supply circle will be set up. It will be benefitting total 6495 residents of the Bulgan city. The right of way (ROW) of the 1.3 km of new water supply pipeline, which traverse the subproject ger areas in various directions, has a width varying between 5m and 10m. I(n some places, in order to minimize resettlement impact, the standard total trench ROW width of 10m was reduced to 5m along several sections of the pipeline in accordance with the Construction Standard and Rules of Mongolia for Water Supply, External Networks and Structures BNBD 40-02-06. The civil work of the sub project has not being commenced in 2012 as the national bidding for the sub project has been announced as invalid. Thus, bidding will be re-announced in November 2012 and civil work is planned to start in May 2013.

A. LARP DEVELOPMENT AND IMPLEMENTATION

4. D.Purevsuren, the national resettlement specialist has worked several times in subproject area and fulfilled activities such as field verification and identification of LAR scope, individual meetings and sharing opinions with APs and related officials, census of all potential affected persons and socio-economic survey of sample of affected persons, detailed measurement survey of affected land and property, notification of affected persons and establishment of cut-off date. The resettlement specialist closely worked with engineers from the ―Civil engineering‖ consulting company, on ADB Involuntary resettlement policy and as a result, totally 9 households were affected. At the time for conducting the AP census, the cut-off date of 21 June 2011 for the subproject was publicly notified in the subproject area, including at the office of the LRCUDD. The APs have also been notified individually by the LRCUDD using a notification form specially designed for the Project. 5. A total of 8 households and one entity were affected by the subproject activities. Seven affected households except BU007 who does not live on his land (unclear where he lives) were enumerated in the census. All seven AHs were surveyed. There were 15 males and 17 females. 10 or 31.25% were children under 18, 21 or more than half are adults and 1 or 3.1% were persons aged above 65. In addition to the eight Ahs, there was one business entity. 6. The Land Relations, Construction and Urban Development Department (LRCUDD) of Bulgan Aimag has provided the land valuation based the government rates and a qualified

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property valuation consultant from ―Besge‖ company has provided the DMS and market value without depreciation. 7. All members of affected households and businesses were of the Khalkh ethnic group, which is the mainstream cultural group in Mongolian society. Therefore, the ADB Policy on Indigenous Peoples has not been triggered by this subproject. 8. Construction of water supply pipelines in some places has involved land acquisition and resettlement (LAR); the other project components will be constructed on public land. Total of 9 households/entities were affected (15 males and 17 females) totaling 32 persons of the seven AHs were affected and 10 of them were children under 18. Affected 9 households/entities lost their 343. 2 m2 lands. 321. 6 m2 or majority of the affected land was the residential land and 22 m2 were unlicensed lands located in the front of their licensed lands. All households lost their lands partially, which did not affect their livelihoods and businesses. Improved areas of one household and one company for business also have been affected. Total of 17 structures located at the residential and business designated areas were affected. Also 202, 4 m wooden fences of 7 AHs were removed and a garage, a wooden house, a house foundation, a basketball hoop, a big news board and 2 latrines were also removed from the ROW within the existing plots. 9. Two training workshops 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‘ were held at the director‘s office of ―Bulgan-Meej‖ company in 26 Jan, 2011 and Bulgan aimag‘s LRCUDD for concerned officers in 20 June 2011. 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. 10. LAR activities completed in 2012. 11. The approved budget for land acquisition and resettlement in the Bulgan subproject was to amount to MNT 19,803,123.9 or USD 14,797.9 for compensation as well as transaction, administration and contingency costs, which were funded from state government resources. All compensation distributed to APs as stipulated in the contracts.

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PHOTOS

During census and socio-economic surveys.

At the time of conducting the AP census, the cut-off date of 21 June 2011 for the subproject was publicly notified in the subproject area.

A meeting was held in 15 Oct 2012.

In the meeting participated newly appointed vice minister of Constriction and Urban development, Governor of Bulgan aimag, PMU coordinator, some WG members and other related officials from Bulgan aimag. During that meeting, PMU resettlement specialist D. Purevsuren made introduction on LAR activities of the project to the participants.

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Disclosure meetings were held at the LRCUDD‘s office on 14 September, 2011 and 16 July 2012.

8 APs participated in the meeting in turn and got the information on LAR.

PHOTOS OF AFFECTED PEOPLES BEFORE AND AFTER RESETTLEMENT

BU001 D. Lhagvajav

BU002 D. Gantumur

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BU003 Ch. Narantsetseg

BU004 D. Davaasuren

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This garage has been removed within existing plot.

BU005 M. Shirnen

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BU006 G. Bat-Ouyn

BU007 B.Terguunbayar

In 2011. In 2012.

BU008 "Achuut" Co., LTD BU009 S. Zorigtbaatar

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These improved areas will be removed during civil work and re-built after completion of the civil work by the owners.

B. CHALLENGES

Bulgan sub project itself not the initial sub project of the MON2301 project. Therefore, development of the LARP of this sub project has not been included in TOR of the hired international resettlement consultant. Thus, resettlement specialist of the PMU has developed and the get approved the LARP without international consultant‘s participation while on other 8 sub projects‘ LARPs has worked the team headed by international consultant.

Decision on whether Bulgan sub project will be implemented within MON2301 project was made by ADB in May 2012. As the decision came after almost one year since census and socio-economy survey of APs have been done, people were unsatisfied with the project. They expressed doubt whether the sub project will be implemented sufficiently. .

Some of APs were reluctant to fulfill their duties under the contracts.

The LAR activities of our project were the first experience of LAR that occurred in Bulgan aimag.

There was no paid staff or person that would have been responsible for LAR. Thus, to do LAR related activities within their own job for the land specialist or engineers of ―Bulgan-Meej‖ company were exigent for them. However, land specialist worked with the resettlement specialist closely. Only one supervision engineer will be paid once the civil work starts.

The one AP is still missing. In the meeting held on 15 Oct, 2012, where participated newly appointed Vice minister of Constriction and Urban Development, Governor of Bulgan aimag, PMU coordinator, some WG members, the order has been given to LAD to clarify and find the absent AP, however no result has been achieved yet. Presumably, the AP might be determined during civil work. Compensation for the missing AP will be kept until civil work completion.

The was no independent PIU which will be in charge for implementation of the LAR. PMU resettlement specialist has provided by necessary advice to LAD specialists so that they followed the LARP. The land department of the aimag itself has limited numbers of specialists and they always had not enough time for LAR.

This year the Mongolians had the parliamentary election. It influenced and slowed down the completion of the LAR as some of the state workers were appointed to work for election activities.

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C. RECOMMENDATION

Cadastral and property valuation professional companies should be established in the rural areas and capacity of those should be strengthened.

There is need to create the united land database which can be used by real estate property registration authority and land department in case if land has been sold between citizens.

Number of land specialists should be increased. One land specialist takes responsibility for several soums, which locate far away from each other. Therefore, LAD staff always had limited time for their work without our project.

There is need to improve legal regulation of the land acquisition and resettlement. The main principle of LAR ―No displaced person should be worse off than without project!‖ has to be set in the laws.

D. CONCLUSION

The land acquisition and resettlement for Bulgan subproject of ADB funded L2301-

MON: Urban Development Sector project under Component A-Urban Service

Improvement completed succefully as stated in the approved LARP and LARF. None

of displaced people’s livelihood worsened by the sub project. The land

acquisition and resettlement has been done in accordance with Asian Development

Bank's (ADB's) Involuntary Resettlement Policy (IRP, 1995) and ―Bank policy

implementation manual‖ (2006).

Purevsuren.D Resettlement specialist