Resettlement Due Diligence Report September 2018 Mongolia: Ulaanbaatar Urban Services and Ger Areas Development Investment Program (Tranche1) Bayankhoshuu Subcenter Electricity Substation, Kindergarten, Business Incubator, and Training Center Prepared by the Municipality of Ulaanbaatar for the Asian Development Bank. Some information has been removed as it falls within the exception to disclosure specified in paragraph 97, (x) of the ADB Public Communications Policy.
CURRENCY EQUIVALENTS (as of 3 September 2018) Currency unit togrog (MNT) MNT1.00 = $0.0004 $1.00 = MNT2,476 NOTE In this report, "$" refers to US dollars. This safeguards due diligence 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.
Mongolia: Ulaanbaatar Urban Services and Ger Areas Development Investment Program Tranche 1 Due Diligence Report for Bayankhoshuu Subcenter Electricity Substation, Kindergarten, Business Incubator and Training Center September 2018 3
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UNOFFICIAL TRANSLATION TO: Mongolia Resident Mission-ADB Re: Land acquisition and resettlement plan Ulaanbaatar, the capital city of Mongolia, has obtained financial assistance from the Asian Development Bank (ADB) within the Ulaanbaatar Urban Services and Ger Areas Development Investment Program (USGDIP) and has planned to start building electricity substation, kindergarten and business incubator center in the Bayankhoshuu subcenter in 2018 according to the activities of the USGDIP. Therefore, the Due Diligence Report (DDR) for the Bayankhoshuu subcenter electricity substation, kindergarten and business incubator is prepared in accordance with the applicable legislation of Mongolia, Asian Development Bank's Safeguard Policy Statement. This DDR is based on the technical design of the electricity substation, kindergarten and business incubator center, detailed measurement survey, census of the households, business entities and organizations situated on the land to be acquired and valuation of their land and properties. Hereby, the Municipality of Ulaanbaatar confirms that the land acquisition and resettlement activities will be implemented in accordance with this DDR and makes commitment that the budget for land acquisition and resettlement will be allocated on time. Moreover, the LAR budget estimates will be updated and finalized based on the negotiations with the households, business entities and organizations whose land will be acquired. Sincerely yours, ULZIIBAYAR G., HEAD OF POLICE AND PLANNING DIVISION GOVERNOR S OFFICE OF THE CAPITAL CITY 2
I. Introduction 1. Objectives of Due Diligence. Land for the Bayankhoshuu subcenter electricity substation, kindergarten, and business incubator center were already acquired and people already paid and relocated. Due diligence was carried out to (i) assess compliance with safeguards requirements as per agreed Resettlement Framework and (ii) determine differences/gaps between the agreed RF and land acquisition and resettlement implementation. This due diligence report presents the findings and assessment; and propose an action plan to address any outstanding issues or gaps found to meet compliance and requirements as per the agreed Resettlement Framework. 2. Due Diligence Methodologies. This due diligence report will refer to the agreed Resettlement Framework, as applicable (https://www.adb.org/sites/default/files/projectdocuments/45007/45007-003-rf-en.pdf. In addition, a working draft Land Acquisition and Resettlement Plan (dated July 2017) was prepared in 2017 and will also be referred to in this report. Due diligence notes is shown in Annex 1. The working draft LARP is in Annex 2. 3. It has been noted that since 2016, extensive preparation work has been done during LARP preparation in terms of census, socio-economic surveys, valuation, consultations, assessment of impacts and various suggested mitigation and support measures to address them. Vulnerable households and non-plot owners were already identified during the process including the type of possible assistance to be provided to them. However, while LARP was being finalized and discussions were ongoing between ADB and MUB specific to assistance for vulnerable households and non-plot owners, compensation to the affected persons commenced in 2017. The draft LARP was never finalized and was not officially submitted to ADB for review and concurrence. 4. Best efforts were made to meet all the affected households who already received compensation and relocated to other locations from May 7 to May 22 2018. While some were happy to be interviewed, some refused to be contacted. Phone calls were made and interviews were held in locations suitable to the APs. Out of total 27 APs, personally met -14; talked on the phone -6; and didn t want to see and couldn t contact -3. Also obtained information about APs who lived on the foresaid APs land and have no land, through individual meetings with APs. Among 13 APs who have no land, some lived on their relative s land or lived in same house or were related to land owners/possessors somehow. Some registered separately and other registered under single family according to the khoroo registration record as reported by APs. 5. Several discussions were also held with the PMO and ADB Project Team to get more information on the status of resettlement information before and after meetings with the APs. II. Project Components 6. As provided in the draft LARP, the project components were described as follows: The project site is located on the territory of Songinokhairkhan district. The district is situated in the northwestern part of Ulaanbaatar and has an area of 120.6 thousand hectare land, of which 3.6% is built up areas and urban infrastructure, 77.0% agricultural land, 19.4% is forest areas. It has about 85,000 households and more than 315,000 people. About 21,800 households live in apartments and 63,000 households live in the ger area. Administratively Songinokhairkhan is divided into 32 khoroos. About 21% of the population of UB city population lives in this district and approximately 25.5% of UB city s area belongs to it. The electricity substation, kindergarten and business incubator center will be constructed on the 3
territory of 8 th khoroo. The khoroo is located to the south of main road (to the south from Jantsangiin uulzvar, Baruun Zuun salaany uulzvar) from the city center to Bayankhoshuu area and has 7 khesegs. The khoroo consists of ger areas and has about 220 hectare area and has about 8,800 population in about 2,070 households. It has 1 school and 1 kindergarten. The design and capacity of the kindergarten, and business incubator and training center are the same as the ones to be built in the Selbe subcenter. On the location of kindergarten, originally it was planned that there will be a heating station (heat only) to supply heat for the Bayankhoshuu subcenter. However, MUB and ADB decided that the subcenter will be provided with heating from the central heating network, thus abandoned the plan to build the heating station. Then it was decided, that on the site, where the heating station was planned, an electricity substation will be built. However, due to the need for bigger land area for the kindergarten, this site was selected to be used for the kindergarten as all the AHs agreed to provide their land on this site. The site originally planned for kindergarten is now used to build the electricity substation, as some of the landowners did not agree to give up their land and the land area for which the landowners agreed to give up was sufficient enough to build the electricity substation, but not the kindergarten. Thus the sites for the kindergarten and electricity substations were switched, Electricity substation. The electricity substation will be built in the middle of the ger area in the 8 th khoroo of Songinokhairkhan district. This substation is of 35/10kW capacity and will supply electricity for about 10,000 households and the kindergarten, business incubator and training center that will be built close to this substation. The capacity of the substation is calculated based on the 2.25kW/hour consumption per household. The detailed design for of the substation has not been prepared yet, however, based on the discussions with the PMO engineers and MUB, the scope of the LAR was determined and the total land area needed for the construction of this substation is 2,500 m 2. Kindergarten. The kindergarten for 240 children will be built in the middle of existing ger area in the 8 th khoroo of Songinokhairkhan district. The Kindergarten building will be 2 story and the area is 48m x 30m. The main structural material is reinforced concrete. On both floors, there will be 5 classrooms for 120 children with bathroom and changing room. On the first floor, there will be rooms for washing/ironing for bed linen, electricity, heating, kitchen, food storage, changing and toilet for the staff, music/singing classes, doctor and office. There will be more rooms for office, teachers and toilet for the staff. The building will be surrounded by decorated metal fence with concrete base in 25m distance from the base of the building. There will be 10-15 car parking space outside the fences. Inside the fences, there will be 4.5m wide road, covered with eco tiles to be used as pedestrian road and as access road for supply cars and fire trucks, in case of emergency. The access to the building is planned in a way so that pedestrians can reach the building from all sides. In front of the building a playground consisting of three fields is planned, the middle field will be equipped with tot lot and soft rubber ground covering, the west field with recreational equipment and the east field will be used as rest area for the parents and the children. Business incubator and training center. The business incubator center, also known as the business incubator, technical and vocational education center, will be built in the middle of existing ger area in the 8 th khoroo of Songinokhairkhan district. The building will be 2 story and combination of arch and rectangular shape, the size of the building is 50mx33m. The building will consist of two blocks based on the type of activities to be operated in the building. The technical and vocational education part will be in the 8-13 x A-G axis in the rectangular shaped block. On the first floor of this block, electricity, heating rooms, restroom (including room for disabled), shower, changing room, technical and vocational education and training rooms, room for lecturers and offices will be located. On the second floor of this block, library, restroom and classrooms will be located. The business incubator part will be in the 1-8 x D- G axis in the arch shaped block. On the first floor of this block, rooms for production, cafeteria, room for consulting, meeting room, sales/shop room/space, small and medium enterprise room, cloakroom, watchman room, room for a doctor and medical treatment, staff room and 4
restroom are planned. On the second floor of this block, training room, small and medium enterprise rooms, director s room, lecturers/trainers room, offices are to be located. Decorated iron fences will surround the building and inside the fences there will be 20 car parking space. Inside the fences, there is enough space to be used as pedestrian road and as access road for supply cars and fire trucks, in case of emergency. The access to the building is planned in a way so that pedestrians can reach the building from all sides. In front of the building, there will be open space/square with benches for rest and lighting. III. LAR Impacts 7. Cut-Off Date of Eligibility. 23 March 2016 was declared as Cut-off-date for compensation entitlements and notification was given to each AH and posted at all khoroo offices. 8. APs census and socio-economic survey of Selbe and Bayankhoshuu subprojects were conducted from 22 Feb 4 Apr 2016. 9. The draft LARP provides the following information: The technical design for the electricity substation, kindergarten, business incubator and training center implies that total of 40 households on 27 land parcels will be affected. No business entity is affected. Total number of affected structures is 416; the affected residential and business buildings are 43. Table 1 shows overall scope of the LAR impact. Table 1: Bayankhoshuu Subcenter Overall LAR Impact Affected Persons Affected land parcel Affected Structures Total 40 Household/members 40 Business entities 0 Total 27 Full 27 Partial 0 Total 416 of which fully affected residential 43 houses/business houses, buildings 10. A total of 40 APs fully vacated the land. Among all 40 affected households, number of households owned/possessed the land 27 and non-plot households, lived on the land owned by the above-mentioned households 13. For kindergarten building, number of households owned/possessed the land- 14; and non-plot households -6. For business incubator and training center building, number of households owned/possessed the land - 9; and number of non-plot households -6. For electricity substation building, number of households owned/possessed the land - 4; and number of non-plot household -1. IV. Socio-economic Information 5
11. APs census and socio-economic survey of Selbe and Bayankhoshuu subprojects for heating station, electricity substation, kindergarten, business incubator and training center along with subprojects for roads and infrastructure were conducted from 22 Feb 4 Apr 2016. Total 567 households and 12 businesses have been surveyed. Among them, 121 female headed households and 260- families with income under minimum living standard. Regarding the Bayankhoshuu subprojects on electricity substation, kindergarten, and business incubator and training center socio-economic survey of 39 AHs, 97.5% of all AHs, was conducted. There are 157 household members in the 40 households. 12. The table below also presents the list of vulnerable households. Based on discussions with the PMO, the list of vulnerable HHs remains unchanged. Table 2: Affected Vulnerable Households Bayankhoshuu Subcenter Income per capita is Comments Woman Elderly Disabled Number of below minimum subsistence level headed headed member HH members 1 BE1 5 Land owner 2 BE2 BE2 5 Land owner 3 BE4 BE4 BE4 4 Land owner 4 BB1-1 BB1-1 4 Non-plot owner 5 BB2-1 BB2 1 Non-plot owner 6 BB5 BB5 9 Land possessor 7 BB6 BB6 4 Land owner 8 BB7 BB7 3 Land owner 9 BK2 6 Land possessor 10 BK4 BK4 Land 3 ownership 11 BK4-1 Non-plot 4 owner 12 BK4-2 BK4-2 BK4-2 Non-plot 2 owner 13 BK7 BK7 4 Land owner 14 BK8 7 Land owner 15 BK8-2 Non-plot 2 owner 16 BK9 4 Land owner 17 BK9-1 BK9-1 BK9-1 2 Non-plot owner 18 BK11 BK11 2 Land owner 19 BK13 BK13 6 Land owner 20 BK13-1 BK13-1 BK13-1 2 Non-plot owner 20 20 6 6 6 79 Source: Draft LARP. Last column added in this report. V. Information Disclosure and Consultation 13. All APs were informed about the project in September 2015 for the very first time. From March 2016, properties valuation report was presented to APs and negotiation took place. 6
First compensation associated resolution of MUB was issued in Sep 2017 and APs being compensated accordingly. Resolutions for several APs issued at one time. Land acquisition commenced from 1 September 2017 and last household has moved on 13 October 2017. 14. Two (2) public consultation meetings had been carried out and delivered information about ADB s SPS, land related laws of Mongolia, project, RF of the USGADIP including eligibility, entitlement and compensation. Several individual meetings had been carried out as well. Out of total 21 individuals participated in the consultation meeting held on 26 Mar 2016, 13 or 61.9% were APs. Of which, 7 or 53.8% were women. 15. The paragraphs below were stated in the draft LARPs. While preparing this LARP, representatives of all AHs and affected business entities were consulted either during the public meetings, census and socioeconomic survey, property appraisal or individual meetings at the PMO office. During these activities and meetings, the PMO resettlement specialist and consulting team s resettlement specialists provided detailed information on LAR, their entitlements, the ADB policy and principles of LAR, property appraisal methodologies, grievance redress mechanism and procedures and any other issues and concerns raised by the APs. Most of the individual meetings were held after the public consultation meetings, held on 26 and 27 March 2016. Up to October 2017, each AH were met and consulted individually at least 3 times by the LA officials and PMO resettlement specialists to inform and explain the subprojects, LAR procedures, compensation principles full replacement value, and the negotiated LAR, APs eligibility and entitlements, Grievance redress mechanism (GRM) and any other matters that were discussed and raised by the APs. Moreover, the LA officials and PMO resettlement specialists were available to discuss and consult the issues and concerns of the APs on daily basis on the phone. The kheseg leaders and khoroo officials in each subproject khoroos are supporting the APs, LA officials and PMO resettlement specialists through liaising with the APs and conveying their concerns and issues to the LA and PMO. Also, individual meetings and surveys were conducted during September October 2017, on the income and livelihood restoration meetings with the vulnerable households. Their needs and concerns were discussed and accessed. Specific income and livelihood rehabilitation measures are being finalized with the Labor Department of MUB. Additional individual and public consultation meetings will be held to disclose the final LARP, and throughout the implementation of the LARP as required to address any issues. 16. The APs who were met during the DDR preparation, had adequate knowledge and information about the Project. Over the last 4 years, the information on the project had been supplied. Individuals doubted its implementation meanwhile it was spoken for way too long. Besides, there some individuals misunderstood the Project as MUB s former re-development project to be implemented in Bayankhoshuu. APs were very impressed with the property valuation, particularly with structure valuation. As Bayankhoshuu is one of the oldest continuously inhabited ger areas in Ulaanbaatar, valuating the affected structures with no depreciation and increasing the compensation made the APs happy and pleased. It also helped them to buy their replacement house and land. Most of them were satisfied with the land valuation. Few people complained about being insufficient compared with land valuation 7
of Selbe subcenter. Information on entitlements and assistances for vulnerable people and people with non-land owners, was not provided at all. In general, APs except those attended in consulting meetings organized by ADB, were not informed enough on LARP. Below are summarized key points which came to attention during meeting with individuals. a. Generally, most of APs expressed that the compensation amount was very sufficient and were satisfied; b. Specially, compensation for structures was good enough as no depreciation is deducted; c. Those APs who bought apartments, were very happy and thankful to the project; d. Most of APs collected the salvaged materials themselves. 1 AP started to build a new house on the newly bought land for the shop. Only this AP received compensation for business loss for period of 6 months. e. Introduction of the project was not enough; _ f. Compensation was not enough to buy luxury apartment in the central area;. g. 1 AP is still waiting compensation more than 8 months. Price of apartment that they wanted to buy is increasing slightly; h. Temporary housing is very uncomfortable; i. Disbursing of the compensation takes too long; j. For some HHs, demolishing of houses were very difficult, no assistance was provided from LAD or the project; k. It was very hard to move in October; l. Not valued some green houses, vegetable garden; m. No information was provided about replacement plot; VI. Establishment of Replacement Cost for Land and Non-Land Assets 17. Tegsh Songolt Estimate LLC, a company specialized in valuation, valuated the properties in March 2016. When valued the properties, market value of 1m 2 land is MNT32,130 was applied to unit price calculation and in 7 types for structures and no depreciation has been applied. 18. Valuator from the valuation company witnessed APs were present and signed the valuation report when he made the valuation. However, 2 APs were absent during the valuation. VII. Provision of Compensation and Assistance 19. Process. Payments started in September 2017 as per signed contract except for one household (DMS/AP ID No. BK11 ) who has not been compensated yet. The process is noted as follows. Notes executed, signed and confirmed after APs reviewed the valuation report prepared by the valuation company and accepted the compensation. Signed notes submitted to MUB Administration and the MUB Administration issued a resolution accordingly. As stated in the Operational report 2017 1 of the project, from negotiation to land acquisition, needed to go through total of 14 phases and took about 3.2 months to have resolution for compensation payment issued in average. So, the project sent the letter to Governor s Office of the city requesting to reduce phases from 14 to 8 and 3.2 months to 14 days to accelerate the land acquisition process. 1 PMO Operational report 2017 8
Awarding contracts and paying compensation within a month after issuance of the resolution is consistent with LARP. 1 AP has not been compensated up to present. Two (2) options have been offered to APs: before vacating the land, receive 60% of the compensation and 40% after vacated the land or receive 100% after 100% vacated the land. Most people preferred the second option. The current practice of provision of compensation after vacating the land is non-complaint with ADB policies. Moreover, the AHs were required to bring a photo showing the vacated land in order to receive their compensation. In April 2018, MU B, Land Agency, and PMO agreed that such practice should stop. 20. Assistance a. All APs said that no moving cost has been paid. Valuator explained that moving cost has been spread over in the compensation due to uncertainty of their new location. However, will be necessary to provide moving costs to the AHs at the average rate of moving companies. Status and Updates: On 8 August 2018, the PMO confirmed that moving cost is already included in the compensation. To avoid confusion, the PMO has already started separating the transportation cost from the overall compensation cost so it will be easy for the APs to see that this has been provided. b. Moving costs for 9 gers (2,250,000MNT), 3 pieces of 20 tn containers (1,200,000MNT), to carrying trees, blocks and iron fences (870,000MNT) were provided to APs. 21. Loss of Business and Other Sources of Income. In the draft LARP, the following impacts were stated: There are 3 AHs that have different types of business and livelihood activities on the affected land parcels. All these livelihood activities are run on their own land with formal land rights. 2 of these AHs have berry planting to contribute to their livelihood, 1 AH runs a grocery and household items shop. Table 35 provides the details on the business and livelihood activities that are run in the subproject ROW. All the business and livelihood activities will be affected fully and permanently. The supports and rehabilitation measures for the affected businesses and livelihood activities are specified in the Section XIX. Compensation and Rehabilitation Strategy in accordance with the RF. Table 3: Affected Businesses and Livelihood Activities Bayankhoshuu Subcenter AH ID Land tenure type Business type/livelihood Activity Comment 1 BK8 (BE1) ownership berry planting livelihood 2 BK13 (BE3) ownership grocery and household items shop business 3 BB4 ownership berry planting livelihood 22. During the due diligence, the following were found: a. Currently, there is no AP who lost their work due to the project nor APs temporary affected. b. 2 APs lost their businesses and one of them was compensated. However, another one was left out (10-24). Father of AP ran small wood shop on their land and made products with high quality. No undue loss has been calculated due to lack of tax report or failure to prove their income. They made their 9
furniture by themselves for their new apartment which looked really nice. No complaints. Status and Updates: On 9 August 2018, the PMO clarified that there were 9 APs affected and were already compensated for their greenhouse, trees, and plants/garden. 23. Livelihood Support a. The labor Department of MUB and PMO has reached an agreement for cooperation and following the agreement, Labor Department is issued official letter confirming its commitment to support and cooperate with the project through its programs such as labor and skills development, employment support, young people employment support and employment of disabled people. The PMO held workshops and consultations about the ongoing programs but it was reported that none of the APs expressed interest to be included into these programs. Livelihood support was given only two APs for berry plantings, while 3 APs with green houses and 9 APs with different trees and berry plantings were not paid. 24. Non-Land Owners a. There were 13 affected families who lived on the land of their relatives. They were people who used to live together with their family and later got married, however still living together or land owners who live in apartments or on the land of their relatives or people rent the house. For these people, their compensation had been paid to owners or possessors of that land. According to the list of APs shown in the LARP, AP registered under 10-33, Bayantsagaan, included and his properties had been valuated. However, during the implementation phase, name of such AP was removed and instead, AP registered under 5-21a was added b. For vulnerable individuals, no special assistance, monetary allowance, temporary job or training has been offered. c. However, no contract was made with non-plot households and some of them received the compensation only through land owner/possessor. Most owners/possessors, whom I met, had received the compensation themselves. d. MUB made decision for provision of comparable or alternative replacement land for the non-plot owner AHs in May 2018. The non-plot owners were offered comparable land plots of 200 m2 to 290m2 in the existing ger areas of Songinokhairkhan district, close to the residence locations of the AHs. This comparable land plots have access to comparable basic services such as electricity, water kiosks, public transportation, school and kindergarten. As the choices of comparable land are in various locations throughout Songinokhairkhan district, PMO has discussed and agreed, that the priority for selection is in the order of vulnerable AHs, elderly headed AHs, and the others have chosen the land plots by agreement among themselves. As an alternative, to the comparable land of smaller size in the existing ger areas, land plots of 500m2 area were offered in three sites as an alternative relocation sites in the suburbs of UB city. These sites are located 30-35 kms from the city center and are located in Nalaikh district, 3 khoroo, the second site is in Songinokhairkhan district, 21 khoroo, Saaliin am, the 10
third site is in Khan-Uul district, 12 khoroo, Erdenetolgoi, in the south of Shuvuun fabrik roadthese sites will be provided with basic services such as electricity and water supply within USGADIP tranche 2. The AHs are being provided by land possession or ownership titles by the MUB with the support of PMO. The table below shows the status of relocation to comparable replacement plots. Table 4: Relocation Site No. AH ID Relocation site Size of relocation Status of provision of address land plot, m2 land rights 1 BB4-1 No info 2 BB7-1 No info 3 BB2-1, Khaniin material 200 Contact telephone 80118881 4 BB9 Zuunsalaa 206 88604022 5 BH1-1 Ikh naran 200 Not yet received the 99622715 6 BH1-2 Ikh naran 206 documentation. Upon 7 BH4-1 Bayankhoshuu 200 all procedures, APs 99953917 8 BH4-2 Bayankhoshuu 200 materials will be sent 99831504 9 BK11-1 Khaniin material 200 to LAD for new land 80820865 10 BK13-1 Khaniin materail 200 certificates. 88981351 11 BH3-1 Baruun salaa 230 91277019 12 BH3-2 Baruun salaa 230 91277019 13 BK8-1 This AP has own land in different location. No need to get new plot. 88077319 Based on the above findings, below is the summary of comparison as per agreed RF and in the draft LARP. In additional, it should be noted that in July 2018, a 6-months transition period assistance (1,800,000 MNT per relocating household) will be provided. This applies to APs affected by the Bayankhoshuu Subcenter Electricity Substation, Kindergarten, Business Incubator and Training Center. The said allowance will be provided by end December 2018. Type of Loss/ Applicat ion Land (resident ial/ commer cial/ public/ communi ty) Specificati on Full loss of plot (>50%) Table 5: Agreed Entitlements and Due Diligence Findings Findings During Implementation Eligibilit y Owner, possess or Compensation entitlements 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 11 Cash compensation based on valuation and negotiation were provided. However, 1 household has yet to be paid. Of the 27 Owner/Possessor, 26 received cash compensation based on valuation and negotiation. One (1) household still Status/Updates September2018 On 9 Jul 2018, the PMO Updated the valuation and compensation. A contract has been signed and payment has released in October 2018
Type of Loss/ Applicat ion Specificati on Eligibilit y Compensation entitlements Findings During Implementation All taxes, registration and transfer waiting costs for are waived or included in compensation. It prices has been 9 months since the contract agreement was signed by AP. Status/Updates September2018 Unlicens ed occupan t of land Relocation assistance sufficient to restore standard of living at an adequate alternative site with security of tenure (ownership or possession certificate and state title registration). There are 13 households identified. Relocation assistance are being provided. Alternative sites with security of tenure are being provided. Cadastral map is ongoing Partial loss of plot (<50%) User Lessee Owner, possess or Replacement plot with use license OR, if feasible and desired Ownership license and State title registration All taxes, registration and transfer costs are waived or included in compensation prices 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 for duration of remaining lease period Cash compensation at market rates or the government compensation tariff, whichever is higher, There are no affected users (i.e. APs with land use rights) There are no affected lessees Not applicable. All are fully affected and had to relocate 12
Type of Loss/ Applicat ion Specificati on Structure Full loss of s structure (resident and ial/ relocation commer cial/publi c/ communi ty) Alteration to structure Eligibilit y Unlicens ed occupan t of land User Lessee Owner, possess or, unlicens ed occupan t of land Owner, possess or, unlicens ed Compensation entitlements based on contractual agreement. All taxes, registration and transfer costs are waived or included in compensation prices In some cases, even if the loss is less than 50%, it may be full loss as the remaining land cannot be used for original purpose. In such cases, if the APs decide, he/she can request that the land is fully acquired. Findings During Implementation Ownership or possession Not applicable. All certificate and state title are fully affected and registration for adjacent had to relocate unlicensed land will be provided by government. All taxes, registration and transfer costs are waived or included in compensation prices Continuation of use license on remaining land Cash refund at rental fee rate and proportionate to duration of remaining lease period Not applicable. All are fully affected and had to relocate There are no affected lessees Cash compensation for Cash replacement of lost compensation for structure at market rate replacement of lost determined through structure at full professional valuations replacement cost without deduction of based on depreciation, based on comparable market contractual agreement rate determined and no deduction for through salvaged materials professional valuations without deduction of depreciation, based on contractual agreement and no deduction for salvaged materials Cash compensation for Not applicable. All lost part of structure and structures are fully reconstruction of affected. remaining structure at market rate without deduction of 13 Status/Updates September2018
Type of Loss/ Applicat ion Tempora ry disturba nce Business es Specificati on Moving back of fences Moving or relocation of ger Removal of fence, civil works on land outside ROW, restoration of land and fences Any business loss due to land acquisition or constructio n activities by Project Eligibilit y occupan t of land Owner, possess or, unlicens ed occupan t of land Owner, possess or, unlicens ed occupan t of land, lessee Owner, possess or, unlicens ed occupan t of land All APs so tempora rily affected All affected entities so permane ntly affected Compensation entitlements depreciation, based on contractual agreement and no deduction for salvaged materials The AP may choose one of the following alternatives: Cash compensation for relocation of fence at market rate without deduction of depreciation, based on contractual agreement and no deduction for salvaged materials OR Replacement/reconstruct ion of the fence by the subproject owner / contractor Cash compensation for cost of taking down and raising of ger and for transport, as applicable; to be included in contractual agreement Cash compensation fee negotiated with AP. Access to land and residences Fences will be moved by civil works contractor There is no deduction for salvaged materials Cash compensation equivalent to the loss, for the period of interruption of business based on tax receipts/other valid documents or, if these are not available, based on the average net income of typical/similar businesses in project areas. Cash compensation equivalent to the loss, i.e., for the period of interruption of business based on tax receipts/other valid documents or, if these 14 Findings During Implementation Not applicable. All structures are fully affected. A total of 9 APs with ger were compensated at moving company s average price 250.000MNT. Not applicable. All structures are fully affected. 2 APs have businesses but 1 AP has not been compensated. No business entities. Status/Updates September2018 9 APs were identified and were already compensated for their greenhouse, plants, trees
Type of Loss/ Applicat ion Employ ment Specificati on Any employmen t loss due to land acquisition or constructio n activities Eligibilit y All tempora rily 3 laidoff employe es of affected business es All permane ntly 4 laid-off employe es of affected business es Compensation entitlements are not available, based on the average net income of typical road businesses or similar businesses 2 in the subproject areas. AND Any costs required for physical and financial reestablishment of business. If the business needs to be relocated, the following options will be provided to the affected entities : (a) government will provide replacement land/shop space prior to relocation; or (b) if an acceptable plot of land/space cannot be agreed upon, net income loss of 1 year will be paid and, in consultation with the affected persons; the replacement land/shop space will be provided within 1 year of displacement; Compensation for loss of employment income for the period of interruption of employment. Compensated with cash indemnity for 3 months wages for workers/employees that have been engaged for at least 1 year; otherwise entitlement is 1-month wage. AND Other labor benefits and retrenchment allowances Findings During Implementation No impacts. None. No impacts. None. Status/Updates September2018 2 Similar businesses have been added since it is not just road businesses that may be affected. 3 In the agreed RF, it refers to permanently laid off which is not correct. It should be temporarily. Hence, it is now corrected in this RF. 4 In the agreed RF, it refers to temporarily laid off which is not correct. It should be permanently. Hence, it is now corrected in this RF. 15
Type of Loss/ Applicat ion Vulnerab le and/or severely affected entities 5 Specificati on Permanent loss of livelihood Loss of land Loss of structure Eligibilit y All vulnerab le and/or severely affected APs All vulnerab le and/or severely affected entities All vulnerab le and/or Compensation entitlements according to the national labor law, Skills development trainings for new employment opportunities. Assistance to find new employment. Preferential employment in project-related workforce, if available and desired by affected entities; Cash assistance up to a maximum of six months at guaranteed lowest living level and assistance in reconstitution of business or employment AND any assistance that they are entitled to according to the Social Welfare Law. Assistance with selecting a replacement plot and with preparation of contracts and administrative process of provisions of replacement plot Assistance with house relocation and other construction activities Findings During Implementation There are 20 VHs identified but they are being verified All affected households will also be included in the verification process to ensure that none are missed or there may be cases that they can be vulnerable Cash assistance was not provided. Assistance in reconstitution of business or employment. The verification process will assess vulnerable households who may be eligible for state social protection/welfare programs and will be assisted by the PMO to ensure that they will be able to receive benefits. Comparable replacement plots are identified and selected by the AHs on priority basis, the process of provision of official land rights is ongoing. Verification is ongoing to determine what type Status/Updates September2018 Verification is ongoing under the small-scale TA. It is expected that implementation of livelihood support will commence in September/Octobe r 2018. Supplementary payments will be provided to all alreadycompensated by late 31 December 2018 Cadastral mapping is ongoing and handover of plots will start in October 2018 Verification is ongoing 5 Vulnerable groups are distinct groups of people (poor, elderly, disabled, and female headed households) who may suffer disproportionally from resettlement. Severely affected APs include those whose remaining landholdings are no longer fit for original purpose. 16
Type of Loss/ Applicat ion Specificati on Livelihood support Temporary Disturbance Relocation Transport/ transition costs Unidentif ied Losses Unanticipat ed impacts Eligibilit y severely affected entities Any househo ld member of a vulnerab le entities All vulnerab le and/or severely affected entities All APs to be relocate d All APs Compensation entitlements (new housing should meet minimum standard), registration of property titles, relocation expenses, minimum housing guarantee. Preferential treatment for temporary employment during construction; Employment training (3 6 months). Preferential treatment to avoid, minimize or mitigate disturbance as quickly as possible. Provision of allowances to cover transport costs on actual cost basis at current market rates; to be included in contractual agreement 6-months transition period assistance amounting to 1,800,000 MNT (300,000 MNT per month X 6 months) for households whose houses are fully affected by land acquisition. Assistance to find an alternative plot or to find comparable house to rent, as applicable To be identified during project implementation; measures will be formulated as appropriate according to ADB policy and reported to ADB prior to implementation Findings During Implementation of assistance will be provided for each HH (depending on vulnerability and impacts) Construction works were offered, however none of those who were consulted expressed interest No construction activities found at the time of due dliligence Relocation cost has not been provided. 8 APs got compensation for moving trees, iron fences and blocks which were kept within the plots. Nothing identified during due diligence Status/Updates September2018 Assessment is ongoing under the SSTA Relocation cost is already included in the compensation payment. To avoid confusion for other APs, the PMO has separated the relocation cost from the total amount so the APs can see that it is being provided. 6-months transition period assistance (1,800,000 MNT per relocating household) will be provided by 31 December 2018 VIII. Grievance Redress 17
25. Grievance redress mechanism consists of 4 phases and PMO is responsible for receiving and recording complaints lodged by individuals and having them resolved by relevant agencies. First, complaints referred to PIU for resolution, then relevant district agencies or Governor of district, then Working Group and City Governor and last, to court. Currently, there no written complaint has been lodged and oral complaints had been resolved from time to time. 26. Out of total APs met, only 2 verbally complained about amount of compensation being little. These APs wanted to replace their land with apartment, regardless size of land. Valuation rate increased for 2 APs who informed about their properties were left out and or land size was miscalculated. 27. None of written complaints were registered. Some oral complaints raised which were related with some missing properties. IX. Staffing, Budget, and Resources 28. For the PMO, 1 specialist in charge of land acquisition and resettlement was employed from Jul 2015. She has experience working on land acquisition and resettlement related matters. Work is overloaded and required to be present in meetings, to make consultations and contracts. The specialist handled all the processes of concluding 207 contracts for land acquisition and resettlement. Later, PMO employed 1 more staff and each specialist are in charge of one subcenter now. 29. There is only one land officer in charge of Songinokhairkhan District, City Land Department, works 4 days a week focusing on Bayankhoshuu subproject. He is also overloaded with work, so sometimes assigns tasks such as negotiating with APs and awarding contracts to LAR specialist of the PMO. 30. WG in charge of land acquisition and resettlement was renewed on 7 April 2017 by the Mayor of MUB with resolution number No. A/194. This WG is responsible for the overall management and supervision of LAR activities for both sub projects and consists of 16 members including Sukhbaatar, Chingeltei and Songinokhairkhan District and Khoroo Governors; Director General of Land Agency, representatives other related state organizations, NGOs and APs. Core group of LARP implementation is Land Acquisition Division of City Land Agency. 31. It has been agreed that more staff will be engaged to improve resettlement planning: 1 social and gender expert, 2 liaison officers, 1 administrative assistant to allow the resettlement experts to focus more on the technical tasks assigned to them. In early June 2018, the Land Agency appointed two accountants to assist the land officer. The two accountants are working full-time for the project. On 1 August 2018, 2 liaison officers and 1 administrative assistant were hired and started working for the Project. X. Implementation Issues and Proposed Time-Bound Corrective Actions 32. General Feedback from the APs. Two (2) or 8.3% of 24 APs whom the consultant met or talked on the phone, were unhappy and the remaining APs were happy or satisfied with the project. Particularly, those who lived in Bayankhoshuu area were pleased with the compensation, since their houses were old and even, some of them were built in the 1960-1970s and no deprecation has been applied. 1 AP, who was unhappy with the compensation, 18
wanted to replace his land with comfortable and luxury apartment in downtown and the other AP wanted to replace his land with the apartment regardless of his affected land size. The consultant concludes that these 2 APs are fully compensated in accordance with the draft LARP. Table 6: General Feedback No AH ID and address Land tenure type Current living condition 19 Impression 1 BK8 10-29 ownership Land plot Satisfied. 2 BK8-1 (BE1-1) rent from BK8 - - 3 ownership Lives with daughter s Not satisfied. BK9 (BE2) 10-30 family. 4 BK13 (BE3)10-30a ownership Land plot Satisfied. 5 BK10 (BE4) 10-31 ownership She lives with daughter. Satisfied. 6 BK11 (BE5) 10-33 ownership Not affected/changed 7 BB1 10-19 ownership land plot Satisfied. 8 ownership He lives in his own Satisfied. BB2 10-20a apartment. 9 occupier of BB2's Received replacement - BB2-1 land land 10 BB4 10-20b ownership No info - 11 occupier of BB4's - - BB4-1 land 12 BB3 10-22 ownership Apartment Satisfied. 13 possession Paid deposit for Satisfied. BB5 10-18 apartment. 14 BB6 10-21 ownership Will buy apartment Satisfied. 15 BB7 5-35a ownership Unclear - 16 occupier of BB7's Unclear - BB7-1 land 17 BB8 10-23 possession Land plot Satisfied. 18 BB9 10-24 Possession Apartment Satisfied. 19 occupier of BB9's Received replacement Satisfied. BB9-1 land land 20 BK1 (БХД7) 10-6 ownership Apartment Not satisfied. 21 BK2 (БХД8) 10-9 possession Apartment Satisfied. 22 The live in son s Satisfied. BK3 (БХД9) 10-11 possession apartment 23 BH1 (BK4) 10-13 ownership Land plot Satisfied. 24 BH1-1 (BK4-1) occupier of BK4's Received replacement - land land 25 BH1-2 (BK4-2) occupier of BK4's Received replacement - land land 26 BH2 (BK5) 10-15 ownership Apartment Satisfied. 27 BK6 (БХД12) 10-7 possession Apartment Satisfied. 28 BK7 (БХД13) 10-8 ownership Unclear - 29 BH3 (BK8) 10-12 ownership Land plot Satisfied. 30 BH3-1 (BK8-1) occupier of BK8's Together bought a land Satisfied. 31 BH3-2 (BK8-2) land occupier of BK8's land using part of BH3 s compensation. 32 BH4 (BK9) 10-14 ownership Land plot Satisfied. 33 BH4-1 (BK9-1) occupier of BK9's land Received replacement land. Unclear
No AH ID and address Land tenure type Current living condition Impression 34 occupier of BK9's Received replacement Unclear BH4-2 (BK9-2) land land 35 He will build the house Satisfied. BK10 5-21 ownership soon. He used to live in a No change. 5-21a different location 36 Not received - BK11 5-23 ownership compensation yet. 37 occupier of BK11's Received replacement BK11-1 land land 38 BK12 5-25 ownership Land plot Satisfied. 39 BK13 5-27 ownership Will buy land plot Satisfied. 40 BK13-1 occupier of BK13's land Land plot Table 7:. Data on the Current Housing Status of Affected Households Qty AH ID Out of 27 owners/possessors: AP who bought an apartment 6 BK1-, BH2- BK2, BB9, BK6, BB3 AP who bought land plot with house 7 BH3,BK12, BK13, BH1, BK8, BB8,BH4 AP who paid deposit for an apartment 1 BB5 AP who does not need to buy apartment or 4 BK3, BB2, 5-21A, BK10 land plot as they have other apartments or willing to live with their children Will buy an apartment after compensation is 1 BK11 received Will buy an apartment when successor 1 BB6 returns from abroad Will build house in the new land plot soon 1 BK10 Will buy apartment after some time 1 BK13 Not yet determined 2 BB1, BK9 APs that could not be contacted or not willing 3 BK7, BB4, BB7 to meet Total 27 Out of 13 occupiers: Bought land plot with house ( with 3 BK13-1, BH3-1, BH3-2 compensation) 6 Received replacement plot 11 BB2-1, BB9-1, BH1-1, BH1-2, BH4-1, BH4-2, BK11-1,BK13-1, BH3-1,BH3-2, BH8-1 (No need), Unclear 2 4-1, BB4-1,BB7-1 Total 13 33. General Conclusion and Proposed Corrective Actions. a. Consultation and Disclosure. Since the draft LARP was never finalized, the APs did not receive clear project entitlements. Compensation related matters had 6 These 3 occupiers received compensation from the owners and bought land plot with house. In addition, they got 206m2 replacement plots from the project as well. 20
been discussed only through individual meetings. Due to lack of information, APs had misunderstanding about the project and confused this development investment project with the previous MUB s Ger area re-development, replanning project. In addition, APs have poor understanding about the compensation structure, such as what kind of costs are included or not included in the compensation and why. Proposed Corrective Action/s: At the time of due diligence, PMO and LA already to provide copies of the contract agreement with the APs who already received compensation. b. Provision of Compensation and Assistance. As presented in the entitlement matrix which presents the entitlement vs what were actually provided. Proposed Corrective Actions: Review the impacts and provide income and livelihood support and other missing assistance and support, as applicable as per agreed RF. Status as of August 2018: Verification is ongoing and the necessary assistance will be provided. c. Non-Plot Owners. Compensation had been paid without awarding contract to all APs (awarded contracts only to land owners/possessors). Non-plot owners entitled compensation has paid to land owners/possessors account. As specified in the RF, all APs (regardless their ownership/possession title and non-plot owner status) lived on the land before Cut-Off date, are eligible for entitlements. Accordingly, contract should be awarded to non-plot owners, and compensation for structures or other non-land assets they own, including the necessary assistance should be paid directly to them not through land owners/possessors. Proposed Corrective Action/s: For the future LARPs for other components, a list of all APs must include all owners, possessors and non-plot owners. Nonplot owners should be made aware of their entitlements as per agreed RF. Prepare a separate contract agreement and also check if the structures they own were paid to them by the plot owner. Status as of August 2018: The process is being improved and this will be done for future LARPs. d. Valuation. Properties valuation has been carried out on 14 Mar 2016. In the first valuation report, land price hasn t been included. Land value is set at MNT32,130 per square meter in consultation with the Land Agency in May 2016. Compensation was paid to APs from Sep 2017 because negotiation took a lot of time and some APs disagreed with the compensation. Proposed Corrective Action/s: Carry out another round of land valuation. Status as of August 2018: A third party appraiser is being recruited and will be mobilized in October 2018. e. Livelihood Support. Livelihood support was given only to two APs. Proposed Corrective Action/s: 21
(i) (ii) Three APs with green houses and berry plants, are entitled for the same livelihood support and should be provided based on their actual losses. All vulnerable and/or severely affected APs, who have permanently lost their livelihood, land, and structures, should be offered with the assistance as stipulated in the draft LARP. Support from the MUB Labor Department needs to be activated and enhanced to this regard Status as of August 2018: Nine APs were identified following verification. They were already compensated for their greenhouses, trees, garden plants. f. Vulnerable HHs. In terms of the livelihood support of APs, 1 AP complained about not offering assistance to vulnerable families, particularly no moving assistance was offered to elderly and vulnerable families, who have no-one to help. It has been planned to provide all APs with temporary workplace and trainings, however no action has been taken until today. Assistance for eligible disabled and vulnerable APs has not been offered. Proposed Corrective Action/s: During DD, two VHs were not able to meet as they did not want to meet. We contacted by phone and made appointment several times, at the end, meetings not happened. No information was provided. For other vulnerable VHs, assistance should be provided to them as per agreed RF and draft LARP. Status as of August 2018: Assessment is ongoing under the SSTA and a livelihood support plan will be prepared. g. Staffing and Resources. It is observed that some tasks of the Land Department have been carried out by the PMO resettlement specialists such as negotiation, contract awarding, and document preparation as the officer of the Land Department is heavily overloaded with various tasks. Proposed Corrective Action/s: It is recommended to increase a number of land officers in charge of the project s land acquisition and resettlement at the City Land Department. It is also recommended to improve the involvement of Working Group members in all stages of the LAR process. It has been reported that more staff will be recruited. This has to be monitored and followed-up to ensure they are mobilized as soon as possible Status as of August 2018: Two liaison officers and 1 administrative assistant were already engaged on 1 August 2018 to support the Project. An additional administrative assistant will be recruited. 34. Specifics: a. One AP (AH ID No.11 ) hasn t been compensated until now and it s been 2 years since valuation date. Re- valuation needs to be carried out. This is the last person, who agreed the negotiated compensation value. However, it had been decided to delay the issuance of the ordinance until 2018, in order to issue the issuance together with other APs affected by 2018 LAR, which is a serious unaccountable action by the City Land Department. Currently, this AP s family lives in the temporary housing. The apartment living temporary is very cold and its wall is thin and noisy. The girls room has no electricity.. 22
Proposed Corrective Action. It is highly recommended to issue the ordinance and immediately provide the compensation to this AP. The compensation should ensure that the land price will be at replacement cost at the time of payment. The verification process should also include other support and assistance to be provided to them given the delay in payment and the transition arrangements that was offered to the HH. Status as of August 2018: On 9 Jul 2018, the PMO Updated the valuation and compensation. A contract has been signed and payment will be released by 30 October 2018. b. For AP (DMS ID No.BK2 ), pit latrine with reservoir wasn t valued properly. Proposed Corrective Action. It is recommended to compensate the remaining payment for the pit latrine with reservoir. Status as of September 2018: BK2 had a simple wooden latrine. The contractor had cleaned the site and disposed all latrines. Therefore, PMO clarified this issue with contractor by Sept 2018 and they confirmed that there were no container under the ground. (Pic1. BK2-actual photos of latrine) c. For 1 AP (DMS ID No.BB9), business loss has not been compensated. Proposed Corrective Action. It is recommended to compensate the business loss based on report that they have. Status as of September 2018: PMO will verify this issue with AP by October 2018. If business loss compensation is missed, the valuation company need to calculate and it will be provided to AP by end December 2018. 23
(Pic2. Actual photos of carpentry shop-by AP claimed) d. In accordance with Table 2 of the RF: Eligibility and Entitlements, land users entitled to receive land compensation if used land is fully affected. 1 AP was included as land possessor in the list and compensation was paid as well. This AP is Chinese immigrant. According to the land officer s statement, he has the land use certificate and had temporary residency permit. APs documents were already archived, so the consultant couldn t check his documents. This AP was paid cash compensation whilst he is entitled only for the replacement plot with his land use certificate. Proposed Corrective Action. The information obtained were not clear and this has to be discussed with the PMO to ensure correct compensation was provided. Status as of August 2018: The PMO is now reviewing the documents and will clarify the situation to the ADB Project Team by 30 September 2018. Status as of September 2018: According to LARP, Eligible Affected Entities is persons with formal legal rights to land lost in its entirety or in part. Thus, possession right has a right to get compensation unless the right has not expired. e. For AP (DMS ID No.BB1), who lived on the plot #10-19, the owner lived with 2 adult children together with their family on that land. However, they weren t included in the list of APs eligible for replacement plot. One of them is disabled male suffering from kidney problem and living with his 3 children. His wife is passed away and he has low income (he receives only disability benefit). He was defined as disabled person in the LARP. Currently, he is living with his 3 children on other s land in a rented Ger. Proposed Corrective Action. The verification process should ensure that the necessary support and assistance is provided to the HH. Status as of August 2018: Assessment is ongoing under the SSTA and a livelihood support plan will be prepared 24