MON: Southeast Gobi Urban and Border Town Development Project

Transcription

1 Resettlement Planning Document Land Acquisition and Resettlement Plan for the Construction of Road in Hanbogd Document stage: Draft Project Number: TA-7216 March 2010 MON: Southeast Gobi Urban and Border Town Development Project The Land Acquisition and Resettlement Plan for the Construction of Road in Hanbogd 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.

2 Southeast Gobi Urban and Border Town Development Project Land Acquisition and Resettlement Plan for the Construction of Road in Hanbogd Omnogovi Aimag Government, Mongolia March

3 ABBREVIATIONS ADB APs AWG FHH GAF HH LAR LARP MRTCUD NSO PIU PMU ROW SPS SEGUBTDP SR Asian Development Bank Affected Persons Aimag Working Group Female Headed Households Grievance Action Form Households Land Acquisition and Resettlement Land Acquisition and Resettlement Plan Ministry of Roads, Transport, Construction and Urban Development National Statistical Office Project Implementation Unit Project Management Unit Right of Way Safeguards Policy Statement (2009) of ADB Southeast Gobi Urban and Border Towns Development Project Safeguards Requirement 2

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5 Unofficial translation Symbol MINISTRY OF ROAD, TRANSPORTATION, CONSTRUCTION AND URBAN DEVELOPMENT OF MONGOLIA Barilgachdiin talbai 3, Chingeltei duureg, Ulaanbaatar, Mongolia Tel: (976-11) , Fax: (976-11) Date: 26 January 2010 Ref: 8/261 To: MR. ADRIAN RUTHENBERG, COUNTRY DIRECTOR, MNRM We have reviewed a revised Land Acquisition and Resettlement Framework (LARF) and a Land Acquisition and Resettlement Plan (LARP) for road construction subproject in Hanbogd soum under Southeast Gobi Urban and Border Town Development Project and in principle support and have no-objection. Thank you very much for your cooperation. Sincerely, (signed and sealed) S. OCHIRBAT, DIRECTOR GENERAL, URBAN DEVELOPMENT AND LAND AFFAIRS POLICY DEPARTMENT

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7 Unofficial translation Symbol GOVERNOR OF OMNOGOVI AIMAG MONGOLIA Dalanzadgad, Omnogovi aimag Tel: (01-532) , Fax: (01-532) Date: 26 January 2010 Ref: To: MR. ADRIAN RUTHENBERG, COUNTRY DIRECTOR, MNRM We have reviewed the Land Acquisition and Resettlement Plan (LARP) for road component in Hanbogd soum of Omnogovi aimag under Southeast Gobi Urban and Border Town Development Project. We have no objection to the implementation of the LARP. Sincerely, (signed and sealed) B. Badraa, Governor

8 CONTENTS ABBREVIATIONS DEFINITION OF TERMS EXECUTIVE SUMMARY 1. PROJECT DESCRIPTION SCOPE OF LAND ACQUISITION AND RESETTLEMENT SOCIOECONOMIC INFORMATION INFORMATION DISSEMINATION, CONSULTATION, AND DISCLOSURE REQUIREMENT POLICY AND LEGAL FRAMEWORK ENTITLEMENTS RELOCATION, RESTORATION AND REHABILITATION RESETTLEMENT BUDGET AND FINANCING IMPLEMENTATION SCHEDULE INSTITUTIONAL FRAMEWORK FOR RESETTLEMENT GRIEVANCE REDRESS MECHANISMS MONITORING AND EVALUATION Attachment A - Hanbodg-Ger Plots Affected by the Proposed Road Attachment B - Affected Person and Affected Assets Census Tables Attachment C - Grievance Action Form Attachment D - TOR for Monitoring Resettlement Plan Implementation 4

9 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 to its pre-project condition 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 Servitude (easement): A restriction or obligation attached to a property that entitles somebody other than the owner to a specific use of it such as the right to cross it or occupy it temporarily for maintenance of utility services. 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 5

10 96 o 00'E 111 o 00'E R U S S I A N F E D E R A T I O N MONGOLIA PROPOSED SOUTHEAST GOBI URBAN AND BORDER TOWN DEVELOPMENT PROJECT Hanh HR 50 o 00'N Ulaanbayshint 42 o 00'N Dayan Tsengel BAYAN- OLGIY Yarant UVS Nogoonnuur Olgiy N Olgiy Hovd Uyench Naranbulag Manhan HOVD Ulaangom Dariv Kilometers Togrog 96 o 00'E Tayshir Burgastay Tes Tudevtey ZAVHAN Altay GOVI-ALTAY Tsagaan-Uul Tsahir Uliastay Buutsagaan Hatgal HOVSGOL Bayanhongor BAYANHONGOR Gurvantes PEOPLE'S REPUBLIC OF CHINA Note : First Proof, 5 December 2009 Second Proof, 7 December 2009 Third Proof, 7 December 2009 Fourth Proof, 12 December 2009 Fifth Proof, 14 December 2009 Sixth Proof, 12 January 2010 Altanbulag Moron Suhbaatar BULGAN SELENGE Selenge Darhan Hutag-Ondor Erdenet DARHAN-UUL Bulgan ARHANGAY Hishig Ondor Battsengel Tsetserleg Harhorin Arvayheer Nariynteel OVORHANGAY Dalanzadgad ORHONSumber Tsogt-Ovoo Lun TOV Zuunmod OMNOGOVI Bayan-Ovoo Cleared/Updated by : Tsogttsetsii Gashuun Suhayt Edited by : ULAANBAATAR Baganuur Nalayh Maanit Mandalgovi Hanbogd Choyr DUNDGOVI Batnorov Ondorhaan Saynshand HENTIY GOVISUMBER A. RUTHENBERG, MNRM JAN HANSEN, EARD 16 July 2009 RICARDO CHAN, OSEC 16 July 2009 DORNOGOVI Zamyn-Uud Bayan-Uul DORNOD Choybalsan Monhhaan Baruun-Urt Ereentsav Matad Erdenetsagaan Bichigt SUHBAATAR Havirga Project Aimag Project Town National Capital Aimag Capital City/Town Main Road Provincial Road Railway River Aimag Boundary Tamsagbulag International Boundary Boundaries are not necessarily authoritative. 111 o 00'E 50 o 00'N 42 o 00'N

11 EXECUTIVE SUMMARY 1. The proposed Project is intended to enhance economic development and livability in aimag centers, mining and border towns in Southeast Gobi, through improved urban governance, and expanded access to sustainable infrastructure and services. The Project will benefit two aimag centers and four soum centers in the two southern-most Central Region aimags of Mongolia: Saynshand and Zamyn Uud in Dornogovi Aimag, and Dalanzadgad, Gurvantes, Hanbogd and Tsogttsetsii in Omnogovi Aimag. The Project will address existing deficiencies in, and increasing demand for, basic urban services as urban populations expand rapidly in response to economic development activities. The Project has two components: (i) Part A: Support to National, Aimag and Soum Governments in governance and institutional reform, organizational development, urban planning, crossborder cooperation and project management; and (ii) Part B: Investments in priority water supply, wastewater management, solid waste management, district heating, roads and stormwater drainage infrastructure to alleviate immediate short-term needs. The Project will be implemented over 4.5 years commencing April The construction of a connector road in Hanbogd is a sub-project of the infrastructure development component (Part B of the Project). Land acquisition and resettlement (LAR) impacts of the sub-project are minimized by acquiring four residential plots and relocating affected households nearby to minimize affecting the socioeconomic setting and social organization of the APs. Three (3) households on two plots, including a lessee will be displaced; two (2) households on the other two plots will lose land partially, and two (2) lessees on these plots will be relocated. No productive assets and income sources are lost. The estimated number of affected persons (APs) by the sub-project is 26 persons from a total of seven (7) households. 3. Of a total of seven (7) households, two households will each lose their entire 750 m 2 of owned land and will be allocated land close to existing plots in the same ger area. One household will lose one third of owned land and will be compensated equivalent to the size of the land to be acquired. One household will lose 166 m 2 of non-titled land, which is about 13% of its plot. In terms of structures, five (5) gers, six (6) sheds and 237 meters of wooden fence will be permanently displaced. Owners and lessees who need to relocate their gers and other light structures shall be provided financial assistance. All affected households will be compensated through negotiated land acquisition based on contractual agreements as per the entitlement matrix given in the Land Acquisition and Resettlement Plan (LARP). 4. Compensation to the APs will be paid in full prior to the possession of the land and the award of civil works contracts. A resettlement budget totaling USD 53,086 including contingencies is provided. An implementation schedule indicates milestones within an approximate timeframe. 5. Information dissemination and consultation has already begun and will continue. All APs household heads participated in a consultation meeting on 7 June The contents of the LARP were discussed and the LARP was translated into Mongolian, and made available at the Soum Governor s Office in Hanbogd for public reference in December A Grievance Redress Mechanism has been stipulated in the LARP and was explained to the APs during the consultation meeting. 6. Monitoring and evaluation will include internal and external monitoring. Internal monitoring will be carried out by the Omnogovi Project Implementation Unit (PIU). The PIU 1

12 will submit internal monitoring reports to the Project Management Unit (PMU) and Ministry of Roads, Transport, Construction and Urban Development (MRTCUD) at monthly intervals during the LARP implementation. The PMU will engage an independent consultant as the external monitoring agency (EMA) to: (i) conduct monitoring during and after LARP implementation and at the end of the sub-project; (ii) evaluate the resettlement effectiveness and impact and sustainability of resettlement entitlements; and (iii) learn strategic lessons for future policy formulation and planning. Both internal and external monitoring reports and evaluations will be sent to ADB Headquarters through the Mongolia Resident Mission (MNRM) for review and comment. 7. With the exception of the two female-headed households identified as vulnerable and requiring special assistance, no adverse impact on either men or on women is expected from the construction of the road. Any gender impact, if at all, would be insignificant. 8. No indigenous people were found living in the subproject area and therefore there are no APs identified in this category. 2

13 1. Project Description 9. The Southeast Gobi Urban and Border Town Development Project is intended to achieve enhanced economic development and amenity in the aimag centers, mining and border towns in Southeast Gobi through the provision of improved and sustainable urban infrastructure and services, and an enhanced institutional framework for their delivery, management, operation and maintenance. 10. The Project comprises two parts, Part A provides support to national, aimag and soum governments in: (i) improving local urban governance; (ii) project management and implementation and (iii) enhancing regional cooperation to support regional economic growth; Part B provides investments in priority water supply, wastewater and solid waste management, district heating, roads and power distribution infrastructure. 11. This Land Acquisition Resettlement Plan (LARP) is prepared for the sub-project, construction of a 0.5 km paved connector road in the soum center of Hanbogd Soum of Omnogobi Aimag. The roads development in the soum center will: (i) provide an important connector road linking other key urban roadways; (ii) initiate road network development connecting soum center to Oyu Tolgoi mine site and aimag centre; (iii) reduce travel time and transportation cost (as a result of better road conditions); (iv) promote public and traffic safety; and (v) reduce air pollution from resuspension of dust by passing vehicles. This LARP will be updated based on detailed design, disclosed to APs, and sent to ADB for acceptance prior to commencement of civil works. 2. Scope of Land Acquisition and Resettlement 12. The construction of a connector road in Hanbogd is a sub-project of the Urban Infrastructure Development component, for which this LARP is prepared. The proposed road alignment traverses a residential area in the soum centre, which consists of mainly ger dwellings 1 and houses situated in plots with wooden fences as boundaries. The roadway right of way width is 13 m, including water pipelines installed parallel to the road alignment and pedestrian sidewalks. The design includes a paved asphalt road on the left (west) side, with 3.5 meters carriageway in each direction and 1.50-meter shoulders on both sides, for a total of 10.0 meters road width. On the right side will be a water pipeline, installed in a trench measuring 2.6 m in width. A map showing the residential area that will be affected by the road development is given in Attachment A. 13. The sub-project requires land acquisition and resettlement of four (4) plots. Three (3) households in two plots (plot A and plot B), including the lessee will be displaced; two (2) households in the other two plots will lose land partially (plot C and plot D) and two (2) lessees on the same plot (plot D) will be relocated. No productive assets and income sources are lost. The estimated number of APs by the sub-project is 26 persons from a total of seven (7) households. 14. Of these seven (7) households, two will each lose the entire 750 m 2 of owned land and will be allocated plots nearby to the previously occupied area free of charge (see Table 1 Ger is a traditional detachable dwelling commonly used in the project area. Very practical for nomadic life style, can be dismantled and built in 2 hours. 3

14 1). Another one household will lose one third of owned land and will be compensated equivalent to the size of the land to be acquired. A further one household will lose 166 m 2 of non-titled land, which is about 13% of its plot. In terms of structures, five (5) gers, six (6) sheds and 237 meters of wooden fence will be permanently displaced. Owners and lessees who need to relocate their gers and structures shall be provided financial assistance. Table 1 provides a summary of impacts on affected persons and affected structures. Attachment B provides more comprehensive census and socio-economic data. Table 1. Affected persons and structures in the construction of roads in Hanbogd Plot ID Total Impact of Land Acquisition and Disturbance Persons HHs Affected Area Full Partial Fences to be moved m 2 m 2 meter No. gers to be relocated No. of permanent structures to be displaced A B C D Total This LARP identifies adverse resettlement impacts, establishes entitlements, and formulates procedures that will facilitate smooth implementation of this plan, and thus ensure that no APs are worse off, particularly those who are vulnerable. Section 12 of this LARP includes procedures for monitoring and evaluation to check whether: (i) entitlements have been properly accorded and delivered on time to APs; and (ii) living standards have been restored or enhanced. 3. Socioeconomic Information 16. A socio-economic census survey was conducted in the identified area for the local road in Hanbogd on 5-6 June, Seven (7) affected households consist of 26 persons, 13 of which are children aged The survey covered all households, and involved interviewing the HH heads. 17. Four (4) households occupy titled land; three households reside on plots owned by relatives, and these are considered as lessees. The lessees, except one who lives temporarily in soum center during school term, had been allocated land for ownership in other parts of the soum center. But because of proximity to basic social services and better infrastructure development, they have been residing on their relatives plot. 18. Five (5) households live in gers, and two (2) households in houses made of timber and bricks. Structures on the plot include pit latrine, shed for fuel storage, shed for household items, etc. None of the affected households carry out any income generating activity on the land, thus no income losses are foreseen. Six (6) sheds will be completely removed from their present locations; two (2) of them are movable. 19. All affected households have multiple income sources; livestock income or salary from employment/earnings from self-employment or child benefit. Most of them are middle income households, except one (1) female headed household which heavily relies on kinship 4

15 assistance. Main income sources for two (2) households were livestock raising (off-site, so production activities will not be affected), three (3) households were in wage employment in public and private sectors, and the other two (2) relied on earnings from self-employment, particularly border trade of livestock production. 20. Gender Impacts: Two (2) households are female-headed, one (1) lives below poverty line 2 with a disabled child and the other one is landless. Since the female-headed households usually have fragile economic status, these two (2) households will be treated as a vulnerable group. The priorities of these households were job generation for family members and improved access to basic social services especially health care and education. 21. All of the affected persons are of the Khalkh ethnic majority group. There are no indigenious or minority households affected by this subproject. 4. Information Dissemination, Consultation, and Disclosure Requirement 22. The Omnogovi PIU will ensure that APs and other stakeholders are informed and consulted about the sub-project, its impacts, entitlements and options, and allowed to participate actively in the development process. Consultation and participation will be carried out throughout the resettlement process during preparation, implementation and monitoring of sub-project results and impacts. 23. This LARP was prepared after consultation with stakeholders. Seven (7) APs were consulted by the LAR consultant in a public consultation meeting in the Hanbogd Soum Governors Office on 7 June The Vice Governor of Hanbogd soum, Head of Soum Governor s Office, and Land Administration Officers were also present. They were informed about the proposed construction of local roads and intent to acquire their land by negotiated contractual agreement. The APs expressed their interest to be relocated nearby the previous location because of the proximity to basic social services and infrastructure. The ownership registration at the Soum Land Administration Office in Hanbogd were cross checked and verified. 24. The draft LARP was disclosed to all APs in October 2009 and copies the revised will be made available both in English and Mongolian at the Soum Governor s Office in February The LARP will be placed on the ADB Website in February Policy and Legal Framework 25. The main objective of this LARP is to ensure that all APs of the proposed sub-project receive the appropriate assistance from the Project in a timely manner to enable them to maintain a level of well-being, which is at least equivalent to or better than what it would have been without the sub-project. To achieve this, the APs must be fully informed, closely consulted, compensated for their losses, assisted to gain ownership of replacement land, and participate in any decision-making pertinent to resettlement. 26. The key Mongolian laws regulating access to ownership or possession of land and thereby land acquisition are: 2 Poverty line is MNT 91,200 per capita per month as determined by NSO. 5

16 The Law of Mongolia on Land (Land Law) The Law of Allocation of Land to Mongolian Citizens for Ownership (Land Allocation Law) The Civil Code of Mongolia. 27. As per Article 3 of the Law of Mongolia on Land, four (4) households in four affected plots are legal owners of the land and are in legitimate control of land with the right to dispose of this land. Mongolia does not have a dedicated and comprehensive Land Acquisition Law. Legal provisions regulating LAR must be derived mainly from the above mentioned laws, as well as from provisions in other specialized laws, such as the Law on Auto Roads. 28. In Mongolia the State is entitled to take back land through invoking eminent domain for special needs of the state. 3 Roads or water supply and sewage networks are not included among the special needs (Article 16 of the Land Law). However, the Land Allocation Law includes among the special needs to build roads, lines and networks and other objects of national scale (32.1.3). The Law on Auto Roads defines as national scale roads those which connect the capital city to aimag centers, aimag centers to aimag centers and aimag centers to border points. Local scale roads:are defined as those which connect soums, districts, cities and urban settlements in the territory of the capital city and aimags (3.1.8). The proposed project roads are incorporated into the latter category, therefore the legal basis for the transfer of land and other affected assets from APs for use by the Project needs to be achieved through agreements with affected land owners in accordance with civil law, i.e. the Civil Code of Mongolia. 29. The provisions of the Civil Code of 2002 as a legal framework for transfer of ownership of land thus place LAR for local scale infrastructure facilities, including roads, unequivocally in the context of negotiated land acquisition and resettlement, whereby the State and affected persons engage with each other contractually as equal legal entities and participants in a civil legal relationship (Article 1). Citizens and organizations, as well as aimags, soums and districts are able to enter into civil legal relations with regard to objects of material and non-material wealth and their acquisition and possession (Articles 6, 7 and 8). In the Land Allocation Law the right of a landowner to dispose of owned land through sale according to relevant procedures (notarized contract) is guaranteed in Article Table 2 outlines the key provisions of Mongolian laws and practices relevant to LAR and indicates their compatibility or inconsistency with ADB s Safeguard Policy Statement (SPS). 3 Articles 32 and 37of the Land Allocation Law, 22 May

17 Table 2. Comparison of LAR related provisions in Mongolian Law and the ADB Safeguards Policy Statement LAR issues Provisions of Mongolian law ADB policy requirements Involuntary LAR Negotiated LAR Invoking eminent domain is only legally recognized when taking back land for special needs of the State including roads, lines and networks and other objects of national scale (Land Allocation Law, Articles 32 and 37; Land Law, Articles 42 and 43). This law does not apply to the Project. Current practice by government in local scale projects entails a demand letter with threat of sanctions and offer of payment of compensation. The Civil Code of Mongolia is the legal basis for contractual agreements on the transfer of land in the ROW from APs to the government (Chapter 15, Articles 1, 6, 7, 8, 109 and112, among others). Eminent domain is generally recognized and subject to policy provisions aiming at avoiding and minimizing LAR and replacement of lost assets and rehabilitation of livelihoods. APs to be at least as well-off as without project. (SPS, SR 2, para 5) Recognition of negotiated contract based land acquisition (negotiated settlement), where there is a willing buyer and a willing seller, which is verified and documented by an independent third party, certified by a notary and registered with the Aimag Administrative Authority in Charge of Registration of Property Rights (SPS, IR safeguards policy principle 6; SR 2, para. 25 states A negotiated settlement will offer adequate and fair price for land and/or other assets. The borrower/client will ensure that any negotiations with displaced persons openly address the risks of asymmetry of information and bargaining power of the parties involved in such transactions. For this purpose, the borrower/client will engage an independent external party to document the negotiation and settlement processes ). 7

18 LAR issues Provisions of Mongolian law ADB policy requirements Eligible APs Compensation for land Licensed owners, possessors and users of land can transfer their titles to other legal persons recognized under the Land Law (Articles 35 and 38) and the Land Allocation Law (Article 27). Non-titled occupants of land as illegal possessors are not eligible to transfer the land occupied or receive compensation (Land Law, Article 27.4). The Civil Code recognizes the right of a long term non-owner occupant of ownerless immovable property (incl. land) to own it after 15 years, if registered in the State register (104.2). Contractually agreed payment for land transferred to the government. Local practice applies the government land valuation tariff (Cabinet Resolution 103, 2003), but negotiates with APs as well. Replacement land can be provided if AP s entire land or large part thereof is acquired. Non-titled land is not compensated. Lack of formal legal title to land by any APs is not a bar to ADB policy entitlements. Titled, legalizable, i.e. persons who have claims to land that are recognizable under national laws, and non-titled APs are eligible to receive different entitlements. Titled and legalizable APs are entitled to compensation and rehabilitation. Non-titled APs are entitled to livelihood restoration, but may also receive replacement land. Non-titled APs are eligible for entitlements such that they are no worse off than before the project. All APs are entitled to compensation at replacement cost of nonland assets. (SPS, SR2, para 7-8) APs without possession or ownership license but occupying land in areas designated for land allocation or possession can be recognized as legalizable and thus are eligible for fair compensation and rehabilitation entitlements under the SPS. People who illegally occupy the designated project LAR sites after the cutoff date are not eligible for compensation, and may be evicted at their own cost. Land compensation at replacement cost based on land valuation at average market value, plus transaction costs, interest accrued, transition and restoration costs and other applicable payments. (SPS, SR2, para 10) Compensation will be provided for nontitled land (land that has been encroached upon by the occupier based on the compensation standard and cost set out in Table 4) Compensation for structures Contractually agreed payment for transfer of structures located on land acquired. The value of structures is determined at market rates, with depreciation deducted from gross value of the structure. Valuation of structures is based on current market value, plus transaction costs, interest accrued, transition and restoration costs and other applicable payments, i.e. replacement cost of new construction of the structure without deduction of depreciation. APs can be permitted to salvage materials. (SPS, SR2, para 10) 8

19 LAR issues Provisions of Mongolian law ADB policy requirements Joint property ownership Easement (property servitude) Rental of land or house Community and public resource losses Income and livelihood rehabilitation Relocation and transaction costs The Civil Code recognizes common property ownership and family property rights (Articles 108, and ). Common property ownership requires permission of other owners to dispose of part of the property (108.4). Family property includes other properties accrued since the marriage, notwithstanding in which name of spouses or family members the property is registered ( ). Disposal of immovable (incl. land) family property requires mutual agreement (128.1) and certified written permission from an adult family member (128.2). Legal provision for easements or property servitude, allowing the use of another person s property for specific public or private purposes is permitted under local law; mutual agreement and payment of a fee are required (Civil Code, Article 151, Land Law, Article 48 and Land Allocation Law, Article 33). The Civil Code, Chapter 25 regulates the lease of property, including land and houses. If ownership is transferred the new owner incurs all rights and obligations of a lessor (Article 297). No provisions for lessee rights in case of land acquisition for a project, except that termination of a lease requires 3 months notice (Article 294.3) Affected community and public assets can be transferred through contractual agreement under the Civil Code. The cost of moving affected infrastructure is included in cost of civil works under the Project. No provisions in contractual agreements for transfer of property. The Mongolian Law on State Registration of Property Allocation Rights and Other Related Rights requires payment of registration duties and service fees for the registration of immovable property with the No conflict with SPS. Joint signatures are encouraged. No conflict with SPS. Lessee is considered a non-titled AP but is eligible to receive entitlements based on the type and degree of impacts. The AP may choose between the following alternatives: Allocation of plot with ownership license and State registration All taxes, registration and transfer costs are waived or included in compensation price OR Cash refund at rental fee rate and proportionate to duration of remaining lease period Common property resources or public structures and infrastructure affected by LAR are covered by the SPS provisions. Assistance for economic and social rehabilitation due to loss of jobs, incomes and livelihoods, including (i) income compensation or support for the period of interruption of business or employment, and (ii) priority employment in project civil works, especially to poor and vulnerable households. (SPS, SR 2, para. 12) Relocation and transfer expenses, including fees for the registration of properties and other administrative charges, are part of the replacement cost of lost assets and included in 9

20 LAR issues Provisions of Mongolian law ADB policy requirements State Administrative Authority in Charge of State Registration of Property Rights (Article 9). All registration and other fees, as well as cost of relocation, are responsibility of parties to a contract and can be included in a contract. compensation. SPS, SR2, para 10) Grievance procedure LARP information disclosure and public consultation The Land Law refers disputes over land to the governors of administrative units and eventually the courts (Article 60). The Civil Code and Land Allocation Law refer various types of disputes to the courts. No provision for public consultation and information disclosure. In practice, all cases involve a period of negotiation. An adequate grievance redress mechanism for affected people is required. SPS, SR2, para 29) APs are to be fully informed and closely consulted on compensation and resettlement options. Draft, final and revised LARPs are to be disclosed and discussed, as well as published on ADB s website. SPS, SR2, para 26-27) Cut-off date Not applicable An eligibility cut-off date is to be set when the project is officially notified, the project area is delineated or the census of the AP population is taken, to prevent influx of non-eligible persons and land speculation. SPS, SR2, para 8) Right of way Local area main streets require a 3.5m width for each lane as well as a sidewalk width of 1.5m for each side (Construction Standard and Procedure of Mongolia BNBD , paragraph 6.24); in addition the ROW of local main streets is determined by drainage works and other safety features. No conflict with SPS. Notification period for vacating property and commencement of civil works Water pipes up to 1000mm diameter require a safety zone of 10m (5m from center of pipe) in dry soil. It may be narrowed in built-up areas. (Mongolian Law on Water Supply and Sewerage System Utility of Cities and Settlements, Article12.6; Construction Standard and Procedure of Mongolia BNBD , paragraph 10.20). Time period for vacating a property may be defined in contract. Civil works commence in parallel with acquisition of property, but without defined waiting period. Cash compensation and/or replacement of assets must be completed before displacement; LAR procedures must be completed and rehabilitation measures in place before commencement of civil works on the affected project. SPS, SR2, para 14) 31. There are several significant gaps between the Mongolian legal framework and the ADB SPS with respect to LAR. According to Mongolian law or practice: Public consultation and information disclosure is not practiced. Occupants of land (without ownership or possession license), without title including renters or lessees of land and structures, are not eligible for compensation and rehabilitation entitlements. 10

21 Compensation amount for affected land is calculated using a government compensation tariff, which is not based on market rates, although there is room for negotiation with individual APs. A depreciation coefficient is applied in the valuation of affected structures. Income and livelihood rehabilitation is not normally addressed in local LAR practice. Transaction costs are not included in compensation payments. There are no preliminary project internal grievance procedures, Dispute resolution is the responsibility of governors and the courts. An eligibility cut-off date is not declared. There is no limitation on commencement of civil works until after completion of all LAR activities. For negotiations, the government will follow the procedures set out in this LARP, and ADB SPS will take precedence where it is in conflict with Government resettlement policy. 32. To establish a definite land acquisition and resettlement policy framework with clear eligibility and entitlement provisions for the Project and to address the gaps between local law or practice and the ADB SPS the Project will adopt negotiated contractual agreements between APs and the Land Administration Department on the basis of the Civil Code of Mongolia. The following safeguards will be observed: 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: o All compensation and allowances will be determined and paid or provided as specified in the contractual agreements. 4 o 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. o All LAR-related notification of APs and negotiation of agreements will be carried out by the Project staff and their government partners 5 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 LARF. o All agreements will be certified by a notary and registered with the Aimag Administrative Authority in Charge of Registration of Property Rights. The parties to the contracts will retain their own legal copies. o Adequate grievance redress mechanisms will be established. o Bagh 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. 4 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. 5 The key government partners are the officers of the Aimag and Soum Land Administration Department and of the Property Relations Agency or other offices in charge of valuation of nonland immovable property. 11

22 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 community 6 ). 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 Aimag Administrative Authority in Charge of Registration of Property Rights. 7 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 Soum 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. 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. Affected users of land with use licenses will be provided with replacement plots in similar locations suitable to business operations and new use licenses or, if possible and desired, with a license of ownership, within 3 months of conclusion of a contractual agreement between the government and the AP. 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. Affected structures 8 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. 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. Temporary impact outside the Right of Way (ROW) due to construction disturbances will be handled through establishment of temporary property servitude (easement) by Not applicable if the replacement of public structures (electricity, water supply lines, etc) is covered under civil works contracts. 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. Including houses, fences, sheds, latrines, garages and other immovable structures built on affected land. 12

23 the government over the temporarily affected land based on an agreement with the APs on the purpose (removal of fence, construction activity for laying of pipelines and restoration of the land and fences), duration (construction period at specific site) and compensation fee. Land lessees, including those living in gers, shall be compensated for their relocation costs, including assistance in transporting the ger, and allocated a plot for possession or ownership 9, based on applicable laws or provided cash refund at rental fee rate and proportionate to duration of remaining lease period, if a plot isn t required. Loss of income will be compensated through short-term financial compensation equivalent to the loss, i.e. for the period of interruption of business or employment. Vulnerable and poor households will also be provided with employment opportunities at commensurate skill levels by the Project as available. 10 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. The Project will establish an accessible and responsive project internal grievance procedure, as indicated in section I of LARF. ADB SPS information disclosure and public consultation provisions will be observed, as indicated in section H of LARF. An eligibility cut-off date will be set for each project component with LAR impact at the time of the AP census and detailed measurement of affected land and property. 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: o Affected plot involving only the moving back of fences and acquisition of a portion of land, without housing structures 11 (residential or business): within 2 months. o Replacement plot with ownership license for full acquisition of entire plot, without housing structures: within 3 months. o Acquisition of a partial plot with a housing structure, where the structure is to be rebuilt on the remaining plot: within 5 months, and in any event before the APs are required to move. o Full acquisition of entire plot with housing structure, where the structure is to be rebuilt on a replacement plot: within 6 months, and in any event before the APs are required to move. o Temporarily affected plots will have fences removed and restored at the specific time of construction of pipelines at that location during the civil works period; 2 weeks notice will be given. o Lessees must be given 3 months notice of termination of their lease in accordance with the Civil Code If an AP is not eligible for ownership or possession, a license for land use will be given. If the required skills are not available, the contractor will provide basic training to the employed APs. 11 Small structures (other than houses) can be rebuilt within the time periods stipulated for partial acquisition of otherwise empty land. 13

24 Civil works on the affected sections of the projects where LAR is required, shall not commence unless all compensation, relocation and construction activities under section XVII a d of LARF have been completed and short-term financial assistance for loss of income has been paid. In accordance with the SPS, the design and implementation of the project components under SEGUBTDP will make every effort to avoid and minimize land acquisition and resettlement impacts, including temporary impacts during construction Entitlements for APs 33. All APs are entitled to resettlement and rehabilitation assistance under the subproject. Affected land will be compensated either at replacement cost based on government compensation tariff or with replacement land similar to the previously-owned land in terms of size, status and quality as preferred by the APs. Affected structures will be compensated at replacement cost based on prevailing market prices for construction materials that they are built of All APs physically displaced will be relocated on-site prior to commencement of civil work and will be provided ownership licenses on new plots within 3 months of resettlement. All ownership licenses will be registered with the Aimag Administrative Authority in Charge of Registration of Property Rights. 35. Lessees shall be compensated for their relocation costs, including assistance in transporting the ger, and allocated a plot for ownership, if needed Vulnerable and poor households will also be provided with employment opportunities at commensurate skill levels or basic training to achieve appropriate employment by the Project as available if they desire. 37. All transaction costs, including relocation and transfer expenses (fees and duties) will either be waived by government or included in the price of the affected properties. 38. An eligibility cut-off date was set at the time of commencement of the AP census, which is 6 June This cut-off date was formally disclosed and the APs were informed and made aware that any HHs moving into the site or structures built on the site after this date will not be eligible for compensation. 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 The absence of functioning property market in Hanbogd soum center hindered to define market rates for comparable types of structures. APs suggested they would accept cost of construction materials for affected structures. 14 Most lessees actually own land in other parts of the soum center, however, they do not live there because of poor infrastructure development, for instance no electricity. The other lessee, woman head of household has not received land for ownership yet. If she wishes, she is entitled to have land for family needs free according to Government s Law on Land Possession. 14

25 During the sub-project implementation, any changes in the design that are introduced thereby adversely affecting the land, livelihood or other assets of the people, the same shall be compensated as stated in paragraph 32. Table 3. Entitlement Matrix Type of Loss Specification Eligibility Compensation entitlements LAND (residential/ commercial/public/ community) Partial loss of plot (<50%) Owner, possessor 15 Cash compensation at market rates or the government compensation tariff, whichever is higher, based on contractual agreement All taxes, registration and transfer costs are waived or included in compensation price Legalizable occupant of land Ownership license and State registration for remaining land will be provided by government 16 ; All taxes, registration and transfer costs are waived or included in compensation price User Continuation of use license on remaining land Lessee The AP may choose between the following alternatives: Allocation of plot with ownership license and State registration All taxes, registration and transfer costs are waived or included in compensation price OR Cash refund at rental fee rate and proportionate to duration of remaining lease period Full loss of plot (=>50%) Owner, possessor The AP may choose between the following alternatives: Land for land compensation through provision of replacement plot of comparable value and location as lost plot; Ownership license and State registration; OR Cash compensation at market rates or the government compensation tariff, whichever is higher, based on contractual agreement All taxes, registration and transfer costs are waived or included in compensation price Legalizable occupant of land Land for land compensation through provision of replacement plot of comparable value and location as lost plot; Ownership license and State registration; All taxes, registration and transfer costs are waived or included in compensation price 15 If the remaining land is smaller than 350m 2, the AP may opt to receive a new replacement plot instead of cash compensation and will give up the entire old plot. 16 If the unlicensed AP has occupied more than 700m 2 of land (the legal allocation limit per person in urban areas), the balance land, if any, may be either owned and registered in the name of a family member or bought from the government at the government land tariff. A landowner already owning 700m 2 may acquire the balance land as additional possessed land. 15

26 Type of Loss Specification Eligibility Compensation entitlements User Replacement plot with use license OR, if feasible and desired Ownership license and State registration; All taxes, registration and transfer costs are waived or included in compensation price Lessee The AP may chose between the following alternatives: Allocation of plot with ownership license and State registration All taxes, registration and transfer costs are waived or included in compensation price OR Cash refund at rental fee rate and proportionate to duration of remaining lease period STRUCTURES (residential/ commercial/public/ community) 17 Moving back of fences Alteration to structure Owner, possessor, legalizable occupant of land Owner, possessor, legalizable occupant of land 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 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 Cash compensation for replacement of lost structure at market rate without deduction of depreciation, based on contractual agreement Moving or relocation of ger Owner, possessor, legalizable occupant of land, lessee Cash compensation for cost of taking down and raising of ger and for transport, as applicable; to be included in contractual agreement Temporary disturbance Removal of fence, civil works on land outside ROW, restoration of land and fences Owner, possessor, legalizable occupant of land Cash compensation fee stipulated in agreement on temporary servitude All taxes, registration and transfer costs are waived or included in compensation price Access to land and residences Fences will be moved by civil works contractor 17 Residential refers to any structure used as a private dwelling, including houses and gers. Commercial refers to any structure used for business and manufacturing activities, including small shops, factories, offices, workshops and garages. 16

27 Type of Loss Specification Eligibility Compensation entitlements Businesses Any business loss due to LAR or construction activities by Project All APs so affected Cash compensation equal to income during interruption period to be included in contractual agreement Employment Any employment loss due to LAR or construction activities All laid-off employees of affected businesses Cash compensation for lost wages for the period of interruption of employment; to be included in contractual agreement between employer and project 18 Other provisions Specification Eligibility Compensation entitlements Relocation Vulnerable AP (refer to definition of terms) Transport/ transition costs Permanent loss of livelihood Loss of land All APs to be relocated All vulnerable APs All vulnerable APs 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 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 Assistance with preparation of contracts and administrative process of land transfer Loss of structure All vulnerable APs Assistance with house construction (minimum standard guaranteed), registration of property titles, relocation expenses, minimum housing guarantee Temporary disturbance All vulnerable APs Preferential treatment to avoid or mitigate as quickly as possible Unidentified Losses Unanticipated impacts All APs To be identified during project component implementation; measures will be formulated as appropriate according to ADB policy and reported to ADB prior to implementation 39. It is important to note that the Entitlement Matrix includes resettlement impacts that were identified at the time of the Project appraisal. After the detailed designs have been finalized, this LARP will be updated, disclosed to APs and submitted to ADB for concurrence prior to commencement of project civil works (included under Section 8). 18 The contract will stipulate the continuation of wage or salary payments by the employer to the employees. This will be monitored by the PIU and by external project monitors. 17

28 7. Relocation, Restoration and Rehabilitation 40. Resettlement impact will be minimized by nearby relocation for APs who require land-for-land compensation, thereby enabling maximum preservation of the existing socioeconomic networks. Possible relocation plots were identified and negotiated with Soum Land Administration Officer and APs. The selected relocation plots are a maximum 500 m away from the previous location of APs, but needs land preparation work e.g. leveling of land. The land preparation cost is included in resettlement budget accordingly (see Attachment A). 41. Lessees will be provided cash assistance to rent land nearby to the previous location occupied 19. LAD and the PIU will provide the necessary assistance to the APs 20 to ensure the security of tenure of these APs and the PIU will pay all the fees associated with land allocation, including surveying and mapping. 42. No productive assets and income sources are lost. Displaced people will be relocated to the new plots; consequently social issues such as hostile or culturally incompatible host population, greater competition for resources and poor access to basic social services, etc. are negligible and established community structures, social networks, and kinship ties are not affected. 43. There are two affected households headed by single-females which are eligible for special measures for vulnerable households and will receive cash assistance at minimum living standard as determined by NSO during LARP implementation 21. Each household faces different impacts, the PIU will assess the individual conditions and provide assistance as necessary during LARP implementation. 8. Resettlement Budget and Financing 44. The costs of all compensation and resettlement works will be an integral part of the overall project cost, which will be borne by the sub-project. The PIU will take due care to document all costs of compensation and resettlement works. 19 Two lessees do own land in soum center, but because of access to electricity and proximity to basic social services they are sharing relatives plot without charge. Since relatives' plots are affected they need to rent a plot nearby with the same quality. At time of census, OT employers were renting khashaas for 10000MNT per month. Three lessees are affected and the support budgeted is rent fee for 10 months each. Basically they need to rent a plot during school term to accommodate their school children; in summer they go back to herding in rural areas. 20 Two owners will renew their certificate because size of land will be reduced; two owners will be issued a new certificate for a new plot. 21 Minimum living standard for Umungovi, central region is 91200MNT as set by Chief of the National Statistical Committee 25 March, 2009, order no 01/35. This is budgeted it for 12 months, but again it will depend on negotiation during project implementation. Basically this amount was dedicated for the displaced woman (plot A, Ms. Tsengelmaa) with disabled child, who requires clinical health services. She would be interested in taking vocational courses which may help her to work in Oyu Tolgoi mining. 18

29 45. The resettlement budget see (Table 4) includes the detailed costs of land acquisition, relocation, and livelihood improvement, for instance compensation for acquired land, replacement costs for affected structures, shifting and moving allowance, transport cost, relief assistance, etc. The unit costs for compensation and assistance have been broadly estimated at replacement costs. Soum center has not developed a proper market for land and properties. APs were agree to have replacement costs for land and structures lost due to the project. 46. Rehabilitation measures include cash compensation for two vulnerable female headed households at minimum living standard for 10 months. Generation of employment opportunities for vulnerable APs in the project civil works were suggested by APs during consultation. 47. Compensation for structures is based on replacement value of construction materials, without depreciation. APs can keep and use salvaged materials without deduction from compensation. Compensation for acquired land is estimated using a base value of land as declared in the Government Resolution No.152 in 1997 which was 800 MNT for residential land in soum centers The total LARP budget for Hanbogd is USD 53,086. Table 4. Budget for LARP for the Construction of Road in Hanbogd Unit Unit cost (USD) No. of units Cost (USD) Compensation for Land Acquisition* Residential plot 23 m Rental fee month Land preparation 25 hour Sub total 1,040 Compensation for affected structures Replacement of fences m ,030 Replacement of sheds m ,960 Shifting allowance for movable sheds piece Allowance for moving gers piece Transport costs for relocation HH Sub total 9,040 Rehabilitation assistance to vulnerable HHs Cash assistance/ basic training month Sub total Although not adjusted for inflation, this price is still higher than market rates in some places, for instance peri urban ger areas, and soum centers. Therefore the project has adopted this rate. 23 This is based on the government rate, which remains higher than the market rate. 24 Partial loss of land on two plots 260 m 2 and 166m 2 25 In number of hours. Relocation sites of new plots need some leveling work, to flatten the land. This work is done by rental of equipment and the cost of this work is determined based on the hours the equipment operated. Budgeted that PIU will rent this equipment for these hours to prepare the sites. 19

30 Administrative and Monitoring costs Administrative cost (local government) 3,000 Internal monitoring 15,000 External monitoring 19,400 Sub total 37,400 Contingency (10%) 4,826 TOTAL 53,086 * Most of the affected land (1500m 2 ) in compensated through replacement land, which is provided by the soum government free. 9. Implementation Schedule 49. All land has to be provided free of any encumbrances before the start of civil work. All land acquisition and resettlement of APs is to be completed before the commencement of civil works. The implementation process will cover: (i) identification of cut-off date and notification; (ii) verification of properties of APs and estimation of their type and level of losses; (iii) preparation of APs for relocation through consultation, (however, the process of consultation will continue throughout the Project); and (iv) relocation and resettlement of the APs. Progress has already been made on items i, ii and iii. 50. The number of APs in the sub-project is 26 and the process of resettlement and rehabilitation is expected to be completed in 12 months from the date of notification (May 2010). After negotiations are finalized, APs will have to be given three-month notice to vacate their property. Civil works on this project component will begin only after APs vacate the properties. The implementation schedule for LARP is given in Table 5. 20

31 Table 5. Land Acquisition and Resettlement Plan Implementation Schedule Activity 1 Action Plan for Subproject Land Acquisition and Resettlement (LAR) 2 Set-Up of LAR Institutions 2.1 Designation of all concerned LAR staff and the AWG 2.2 Training of all concerned LAR staff and the AWG 2.3 Grievance redress mechanism in place 3 Land Acquisition and Resettlement Plan (LARP) Update 3.1 Detailed measurement survey update 3.2 Public consultations and negotiations 3.3 Updated resettlement plan and budget 3.4 Dissemination and agreement on update with APs 3.5 Submission of updated LARP 3.6 Approval of Final LARP with budget 3.7 Public Disclosure of Final LARP 4 LARP Implementation 4.1 Notice of award of compensation under the Contractual Agreement 4.2 Disbursement of compensation and finalization of land transfer 4.3 Submission of payment receipts to ADB 4.4 Allocation of new housing plots May June July Aug. Sep Oct I II I II 1-10 May May 2 June 2-8 June June 1 Jul. 4.5 Construction of new 1 Aug 1 Sep 21

32 houses or relocation of gers 4.6 Moving into new houses or gers 5 Documentation of LAR process 5.1 Award of civil works contracts 6 Internal Monitoring PIU 6.1 Monitoring, supervision and quarterly reporting to ADB 6.2 Consultation and handling of any grievances 6.3 LAR Completion Report 31 May 30 June 31 July 7 External monitoring 7.1 Engaging the EMA 1 June 7.2 Baseline survey and 9 June 31 Jul report submission 7.3 Monitoring, evaluation and reporting 1 Aug 31 Aug 1 Sep 30 Sep 30 Oct 1 Feb 1 Feb 10. Institutional Framework for Resettlement 51. Roles and responsibilities for the design, implementation and supervision of the LARP for the sub-project will be borne by PIU 26. An Aimag Working Group (AWG) will be formed within each project aimag to guide and assist the PIU, and ensure resettlement safeguards compliance. A PMU Resettlement Specialist will be appointed to advise on all land acquisition and resettlement and rehabilitation issues. The key government partner in implementation of this LARP will be Hanbogd Soum Governor s Office and its officers, particularly the land administration officer. The PMU Resettlement Specialist will be assisted by a Soum Social Worker (as part of AWG) to coordinate consultation, land acquisition and compensation, relocation and resettlement, distribution of entitlements and assistance packages to APs. 52. The Aimag Working Group (AWG) shall be established, consisting of the following: Soum Governor- Chairman; Bagh Governor Vice Chairman; PIU Manager Member; Soum Social Worker Member; LAD officer from soum - Member; Representative of the APs Member; and 26 Comprising a Project manager, Project Engineer, Procurement specialist and Accountant 22

33 Other members as determined by the Chairman. 53. Once the AWG is created, the PIU shall organize training and workshops on LAR introducing ADB's SPS and relevant national laws and practices. Once the AWG and PIU members is equipped with the necessary knowledge on LARP implementation, it will start to review and if necessary, update the compensation rates for land, structures, improvements, and other entitlements for the APs. 54. The PMU Resettlement Specialist shall then validate the inventory of affected assets, and confer with the affected families regarding their concurrence with the updated estimates of the compensation and entitlements that they will receive, based on the final engineering design. Once the APs agree, a Contractual Agreement shall be drawn up signed by the concerned APs, the LAD Officer and the Soum Governor. The APs have also been informed about the grievance procedure and will receive further guidance from AWG in case disagreements are not settled. 11. Grievance Redress Mechanisms 55. A Grievance Action Form (GAF) will has been designed during the detailed design stage which covers the various aspects of LAR addressed by the LARPs and used in the grievance redress process to log and follow up any grievance (see Attachment C). The GAF contains the following: i. Basic information about APs (name, address, contact number) ii. Date of last disclosure meeting iii. Category of grievance filed (legal, technical/engineering, social, financial) iv. Detailed description of grievance v. Type of action taken (resolved at the AWG level or referred to higher authorities) vi. Any other pertinent facts or references. The GAF will be filled out by the AWG Vice Chairman and signed by the AP and the Vice Chairman. The AP will receive a copy signed by both. 56. The project AWG will serve as the initial committee for handling grievances and will provide an open forum for raising objections and holding discussions to resolve conflicts. An aggrieved AP may submit grievances to any member of the AWG, who will log the complaint, pass to the Vice Chairman to complete and sign the GAF, and then request the Chairman to call a meeting, where the grievance will be presented, addressed and resolved within 1 week. The project AWG will record its deliberations and inform the concerned parties within the same week of its findings and recommendations, and then present these to the Soum Governor for action. If the grievance is not resolved within 2 weeks from its lodging, the grievance will be submitted to the Land Administration Department (LAD) by the AWG Chairman and its resolution is recommended to the Aimag Governor for approval and action within 1 more week. If still unresolved within another week, the Aimag Governor will seek to resolve the issue and initiate action within another week. If the preceding actors cannot resolve the grievance, it is referred to the court system. Mongolian law and the ADB SPS will guide all decisions. APs and NGOs/CBOs or civil society representatives of the 23

34 AWG operating in the area shall be actively involved in all stages of the grievance redress procedures. The grievance redress mechanism steps are summarized in Table 6. Table 6: Grievance mechanism for all project components Steps Actors / actions Timing AP lodges grievance with AWG member 1 AWG Vice Chairman prepares and signs the GAF and initiates AWG meeting AWG addresses grievance, informs AP and proposes resolution to Soum Governor Soum Governor initiates action for resolution If grievance is not resolved 1 week 1 week 2 AWG Chairman submits grievance to LAD LAD addresses grievance, informs AP and proposes resolution to Aimag Governor Aimag Governor initiates action for resolution If grievance is not resolved 1 week 1 week 3 Aimag Governor addresses grievance and initiates action for resolution 1 week If grievance is not resolved 4 Grievance is referred to court system at the discretion of the AP Open 12. Monitoring and Evaluation 57. Monitoring and evaluation will include internal and external monitoring. Internal monitoring will be carried out by PIU to assess progress in meeting physical and financial targets in the LARP: budget and time frame, delivery of AP entitlements, consultation, grievance, special issues, and benefits during LARP implementation period. A. Internal Monitoring 58. The PMU will appoint a Project Resettlement Specialist to providing training and advice on LAR policy and requirements so the PIU and AWG understand how to implement the LARP. The PMU Resettlement Specialist will also assist the PIU will internal monitoring, supervision and reporting of LARP implementation. Internal monitoring will track indicators such as the number of affected persons resettled, assistance delivered, infrastructure facilities provided, financial aspects, such as compensation paid, grant extended, etc. 59. The PIU will submit internal monitoring report to the MRTCUD and PMU on a monthly basis. The PIU will conduct a resettlement review quarterly involving key stakeholders including APs representatives. This will enable avoiding delays in implementation due to unforeseen disagreements by reaching consensus and deciding upon any action needed to improve resettlement performance or respond to changing 24

35 circumstances. Table 7 provides the format for the monthly LAR monitoring reports. The objectives of internal monitoring will be to ensure: i. Proper execution of responsibilities of key implementing agencies; 27 ii. Protection of the rights of APs under Mongolian laws, ADB SPS, LARF and LARPs; iii. Adequate and prompt payment of compensation; and iv. Timely grievance redress. Table 7: Internal Monitoring Form Project component site Total no. of AP households (HH) LAR Activities Quarter Comments Part A. Preparation/Procedural steps Identification of LAR scope ( ) Field verification and modification of technical design ( ) 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 ( ) 27 Aimag Governments, Land Administration Department, Property Relations Agency, Citizens Representative Khural of Aimags as well as of Districts and Soums, District/Soum Governor, Khoroo/Bagh Governor, AWG, PMU, and PIU. 25

36 LAR Activities Quarter Comments 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) 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 ( ) 60. In addition, the Audit Department of the concerned aimag or soum Government will independently audit and monitor the agencies involved in the land acquisition and resettlement process, based on relevant laws and regulations. The PMU, through the PIUs, will periodically review audits, and report any irregularities to ADB, to allow early identification and resolution of problems encountered. B. External Monitoring and Evaluation convenient 61. The PMU will also engage an independent consultant as the external monitoring agency (EMA) to carry out external monitoring and evaluation of the LARP implementation. The EMA is responsible for the collection, analysis, reporting and use of information about the extensive AP s database, which will be employed as the baseline for assessing impacts of LARP implementation. The Terms of Reference for the EMA is given in Attachment D. The specialist will submit documentation and analysis on the process of negotiated settlement and an evaluation of the following indicators: (i) restoration of income levels; (ii) changes and shifts in occupation pattern; (iii) changes in type of housing of affected households; and (iv) accessibility to basic social services and infrastructure. The specialist will submit their reports to the MRTCUD, which will be sent to ADB Headquarters through Mongolia Resident Mission (MNRM) for review. 62. External monitoring will be carried out semi-annually 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 PMU resettlement specialist of the project implementation consultant s team will review and confirm 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; 26

37 Review and augmentation 28 of the socio-economic baseline surveys, if necessary; Identification and selection of impact indicators; Impact assessment through quantitative and qualitative surveys; Consultation with local stakeholders; Assessment of the effectiveness, efficiency, impact and sustainability of LAR; Assessment of compliance with local laws, ADB's SPS and the LARP; 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, where possible. Among the key indicators will be the following: 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. Effectiveness and fairness of valuation, compensation assessment and disbursement; vii. Implementation and effectiveness of income restoration measures; viii. Effectiveness 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. 63. The EMA will carry out post-implementation evaluation on the basis of the socioeconomic baseline surveys 1 and 2 years after the completion of LAR activities in each project component, to ascertain whether the project component 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. 28 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. 27

38 Attachment A Hanbogd Ger Plots Affected by Proposed Road 29 A A B B D C C 29 Plots are numbered as A D in grey shades. Red boundary identifies on site relocation for plot A and plot B. If Plot C chooses to relocate, it can be relocated on C plot. 28