RESETTLEMENT ACTION PLAN

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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Mongolia Municipality of Ulaanbaatar city Community based infrastructure development project RESETTLEMENT ACTION PLAN FOR 2013 RP1157 V2

Community based infrastructure development project Resettlement Action Plan TABLE OF CONTENTS Resettlement Action Plan... 3 A. Project Description:... 3 B. Resettlement Implications... 3 C. Institutional and Legal Framework... 4 D. Resettlement Measures... 5 E. Monitoring Arrangements... 6 F. Timetable... 7 G. Budget... 7 2

Community based infrastructure development project Resettlement Action Plan A. Project Description: Project description: The objective of the Project is to assist about 10,000 households in the most vulnerable among the urban poor in Ger areas of Ulaanbaatar where the majority of low-income households live with very limited basic services, to generate additional income by scaling up community-led infrastructure development activities. The Project consists of the following parts: Part 1: Community-led Infrastructure Development Carrying out of community-led small infrastructure development activities within the Ger areas such as walk paths and foot bridges to meet the immediate needs of the Participating Communities and generate employment and income for the members of the Participating Communities through the provision of Sub- Grants to Participating Communities and Cash Grants to Beneficiaries and to improve access to basic services. Part 2: Health Improvement Construction of sanitation and hygiene facilities such as solid waste collection facilities and improvement of solid waste management practices and sanitation works (for both public and on-site sanitation) in the Ger areas to generate employment and income for the members of the Participating Communities through the provision of Sub-Grants to Participating Communities and Cash Grants to Beneficiaries and to improve the overall hygiene of the Participating Communities. Part 3: Community Safety Construction of community safety facilities such as bus-stop shelters and installation of street lighting poles along the access roads in the Ger areas to generate employment and income for the members of the Participating Communities through the provision of Sub-Grants to Participating Communities and Cash Grants to Beneficiaries and to lower the crime rates and increase safety and security. Part 4: Facilities for Youth and Elders Construction of facilities for the youth and the elderly such as information and technology centers and recreation facilities in the Ger areas for the benefit of the young as well as the elderly members of the Participating Communities to generate employment and income for the wider members of the Participating Communities through the provision of Sub-Grants to Participating Communities and Cash Grants to Beneficiaries. B. Resettlement Implications 1. While the three components will not induce any population disturbance, the implementation of Community safety component, its auto road construction requires the resettlement of the current residents of Bayanzurkh district. This will entail the resettlement of up to 31 families. Refer Annex 1. 2. Based on project documents, land mapping and engineering design of auto road, Proper Relation Agency of Municipality and PMU conducted cadastral survey, inventories and prepared the list of 31 households whose fences are in inside the construction site. 3. Officials of Municipality, District, PMU, author of road design and community leaders carried out inventories of affected fences. There is no loss of property, resettlement or relocation. Type of effect is moving fences back through 0.5m-2.5m. 3

C. Institutional and Legal Framework 4. Institutional framework: The main tasks of the MUB for the resettlement activities involve resettling and rehabilitating the affected persons, or otherwise mitigating any negative social impacts related to the land acquisition process for the Ger area improvements. While the Government acquires land for the MUB through the Land Management Department of an affected district, the MUB is directly responsible for implementing the resettlement activities. It is, however, recognized that the MUB does not have adequate institutional capacity to undertake the resettlement activities, therefore, advice and support related to the resettlement aspects of the project should come from agencies, such as NGOs, with specialized skills and experience in social development programs, housing for the poor, etc. 5. The following laws and regulations of the Government of Mongolia will govern the resettlement aspects of this project. (a) Constitution of Mongolia (Parliament Decree No. 41, 27 October 1990) This law guarantees the citizen of Mongolia the privilege to enjoy the rights for having private property, safe and peaceful living accommodation and to receive material and financial assistance, etc. (b) Law on Land (, 7 June 2002) The Article 29 of this legislation specifies that the size of the fenced ger or homestead land that a citizen could possess for his family needs shall not exceed 0,07 hectare (700 m2). In addition to land referred to in provision 1 of this article, land not exceeding 0,1 hectares may be given for possession to citizens for cultivating vegetables, fruits, berries and fodder plants. (c) Law on Governance of Administrative and Territorial Unit and its Management. In case the citizens of Mongolia intentionally violated their obligations with regard to the regulations and resolutions issued by the administrative units, they would be sanctioned according to the law on administrative units and their management. (d) Law on Legal Status of Capital City (Parliament Decree No. 35, 7 July 1997) Under this legislation, land could be used by the city that is identified in the city master plan and measured and approved by the City Representatives Hural for the purpose of city and infrastructure development. (e) Regulation of Land Ownership and Rent at the Territory of the City (City Representatives Khural, Resolution No. 86, Annex 1 and 2, 29 December 1995) In case a Mongolian citizen possesses land for his family needs exceeding 0.05 hectare in the territory of the city, the size has to be reduced as specified in the law. (f) Control Charter for Implementation of Land Related Laws and Regulations at Ulaanbaatar City Territory (Resolution of City Representatives Khural, No. 19, 20 March 1995. The rights of the Mongolian people are protected for using the land in accordance with law and regulations on usage and ownership of land. (g) Land Possession for Municipality and Districts Special Needs (Resolution of City Representatives Khural, No. 96, 18 July 2000). The Municipality and Districts are entitled to take land for special needs with the purpose to develop infrastructure and construction of engineering structure, pipeline, etc. 4

(h) Law on Allocation of Land to Mongolian Citizens for Ownership (27 June 2002). Article 40 of this legislation ensures guarantee for the Mongolian citizens right to own land when the Government replaces or takes back the land owned by the citizens based on the special needs of the State with compensation. The various sub-sections of this article are reproduced here, which are relevant for resettlement. The most important clause is 40.2, which requires that a citizen be given at least one year s notice before his land is acquired by the Government. Activities directed at replacing or taking back the land owned by citizens for compensation based on special needs of the state shall be carried out after implementation of the following measures (Article 40.1). In case of replacing the land owned: land not worse than the previously owned land by its status and quality, based on request of the citizen, shall be allocated for ownership (Article 40.1.1). In case of the taking back of land: its value shall be paid (Article 40.1.2). The value of immovable property attached to the land previously owned by the Citizen shall be paid (Article 40.1.3). Investment made by the owner to the land shall be paid (Article 40.1.4). The landowner shall be notified in writing not less than one year prior to making the decision on replacing or taking back a land owned by a citizen, based on the special needs of the state (Article 40.2). If the term of one year has passed after receiving the note described by paragraph 2 of this Article by the land owner, and if the measures provided by paragraph 1 of this Article have been carried out, the land owned by a Citizen replaced or taken back based on the special needs of the state (Article 40.3). Compensations for immovable property built or costs of other measures taken to significantly increase the land value after receiving the note described by paragraph 2 of this Article shall not be paid (Article 40.4). (j) Amendment to the Law on Allocation of Land to Mongolian Citizens for Ownership (22 May 2008). Article 19.1.2 of this legislation ensures guarantee for the every member of the family to own land once for his life free of charge, starting 22 May of 2008. D. Resettlement Measures 6. Community Consultation: Specialists of Property Relation Agency of Municipality classified and assessed land value for each affected family based on cost for per m2 of land of Tg13, 200. Representatives of Property Relation Agency of MUB, District Land Department, PMU and kheseg leaders organized face to face meetings affected households 1 to give information about auto road construction procedure and land value system. During the meetings, affected households expressed their willingness to replace the fences first before receiving the payment. Most part of affected households informed that compensation rate for each household is low due to small size of effected land and it takes time to submit required documents. 7. Land investigation: Specialist of Property Relation Agency of MUB, supervision engineer of PMU, field engineer of contractor and author of engineering design of auto road have conducted asset investigation and made minor changes (for instance in order to avoid affects in household`s dwellings width of footpath in some parts has been reduced) in design. As result of joint site investigation, specialists prepared the map to let households get information about need of land acquisition then described exact need of land from each affected household and made note in fences. Specialists met with affected households in the street of projected auto road and introduced the need of land acquisition. 1 See Annex 3. 5

8. Evaluation: Based on land investigation findings, specialist of Property Relation Agency of MUB helped affected households to make land evaluation. After introduction of affected land size, land evaluation and compensation system in UB city, most part of households refused to solicit compensation procedure because of small size of affected land of households. Also those households referred to contribute in construction work. There are five households who decided to get compensation and the specialist of Property Relation Agency of MUB made estimation by using size of effected land of each households and land evaluation regulation of MUB. 9. Compensation: Each household is informed about land value and compensation procedure. Due to compensation procedure of Municipality, affected households are responsible for preparing required documents including photos, compensation request etc. There are 5 households whose size of affected land is estimated to range from 6m2 to 30m2, they submitted required documents and their compensation rate is confirmed by Property Relation Agency of MUB. Refer Annex2. 10. Labor assistance: Based on the requests of affected households, contractor provided following assistance to households - Helped 22 households to move their fences and restore them after construction work. - Dug 2 pit latrines - Prepared 14 garages` foundation 11. PMU conducted evaluation of impressions and opinion of people on value of compensation. There was no complain from affected households and they informed that size of affected land per family is small and expressed their commitment to contribute in auto road construction due to its further social and economic benefit for host communities. According to the household survey, there are no landless, handicapped, ethnic minorities in affected households. 12. During the consultation meetings, affected households asked support of civil works for moving fences. E. Monitoring Arrangements 13. The municipality has conducted a detailed census which will be the basis for monitoring the resettlement impacts. The Municipality will provide periodic reports to PMU. PMU will hire external consulting service to assess impacts and provide regular updates to the Bank as part of its reporting schedule. 6

F. Timetable 14. The RAP will be implemented according to the following timeline: Action Agency Expected Completion Date Preparation of documents Proper Relation Agency of Municipality and affected households Nov. 2013 Mayor`s decree on compensation Proper Relation Agency of Municipality Nov 2013 Labor assistance during the fence restoration PMU and contractor Oct 2013 External Resettlement Monitoring PMU March 2014 External environmental Monitoring PMU March 2014 G. Budget 15. The total affected land value is estimated to cost US $ 3677. It would be financed through the municipality 7

Annex 1. List of affected households Address Name of family Sex Age head 1. BZD, Khoroo# 5, 5-23 Narantuya F 41 2. BZD, Khoroo# 5, 5-72 Jargalsaikhan M 44 3. BZD, Khoroo# 5, 5-93 Naranbaatar M 52 4. BZD, Khoroo# 5, 5-113 Oyunchimeg F 38 5. BZD, Khoroo# 5, 7-113 Oyunchimed F 39 6. BZD, Khoroo# 5, 8-129 Odsuren M 46 7. BZD, Khoroo# 5, 4-149 Munkhtesteg F 29 8. BZD, Khoroo# 5, 3-27 Belkheesuren F 33 9. BZD, Khoroo# 5, 4-94 Azjargal F 31 10. BZD, Khoroo# 5, 4-115 Davaajav M 53 11. BZD, Khoroo# 5,179 Otgontuya F 33 12. BZD, Khoroo# 5, 202 Erdenetuya F 33 13. BZD, Khoroo# 5, 226 Chuluunbaatar M 41 14. BZD, Khoroo# 5, 251 Ariunchimeg F 31 15. BZD, Khoroo# 5, 14-251а Byambaochir M 29 16. BZD, Khoroo# 4, 14-250 Batochir M 21 17. BZD, Khoroo# 4, 363б Yondonsambuu M 52 18. BZD, Khoroo# 4, 258 Uurtsaikh F 42 19. BZD, Khoroo# 4, 5-351 Ganzorig M 34 20. BZD, Khoroo# 4, 351а Baatarkhuu M 42 21. BZD, Khoroo# 4, 5-164б Saikhanjargal F 37 22. BZD, Khoroo# 4,5-364 Enkhzaya F 32 23. BZD, Khoroo# 4,580 Zolzaya F 38 24. BZD, Khoroo# 4,350а Gantsetseg F 34 25. BZD, Khoroo# 4,371 Erdenebat M 33 26. BZD, Khoroo# 4, 365 Purevjav M 25 27. BZD, Khoroo# 4,376 Batsukh M 64 28. BZD, Khoroo# 4,391 Bayanmukh M 58 29. BZD, Khoroo# 4,392 Rentsendagva M 37 30. BZD, Khoroo# 4,393 Jargalmaa F 31 31. BZD, Khoroo# 4,390 Ganbat M 37 Annex 2. Compensation rate Name of family head Address 1 Ganzorig BZD, Khoroo# 4, 5-351 2 Byambaochir BZD, Khoroo# 5, Size of affected land m2 Value Tg Ownership Payment for cadastre Tg Total Tg 27 356400 Owned 50000 1675518 6 79200 Owned 50000 1014952 8

14-251а 3 Saikhanjargal BZD, Khoroo# 4, 5-164б 4 Enkhzaya BZD, Khoroo# 4,5-364 5 Zolzaya BZD, Khoroo# 4,580 30 396000 Owned 50000 1397680 19 250800 Owned 50000 901846 24 356400 Rent 50000 1260988 Annex 3. Photos Door to door information for affected households 9

Discussion with households Mark in fence 10

Map of auto road 11

ORDER OF ULAANBAATAR CITY GOVERNOR November 15.2013 City of Ulaanbaatar А/1002 Compensation for compulsory acquisition of land Based on Provision 29 of Article 29.2 of Administrative and Territorial units and their governance of Mongolia; Provision 20.1.4; 43.2 and 43.4 of Article 20 and 43 of Law of Mongolia on Land; Provision 32.1.3; 32.5.1-2 and 32.6 of Article 32 of Law on allocation of land to Mongolian citizens; Provision 41.2.2 of Article 42 of Budget Law of Mongolia; Decree#6/27 of Ulaanbaatar city citizen s Representative Khural s Leaders meeting dated on 2012, Mayor of Ulaanbaatar ORDERS: To take the following actions and to assign these actions to the below mentioned authorities: 1. The calculated compensation amount for the land acquisition of auto road construction at the Monel street of 4 and 5 khoroos of Bayanzurkh district sponsored by JSDF funded project Community-led Infrastructure shall be determined as stated in the Appendix of this Order; 2. Totally 6.250.984 /six million two hundred fifty thousand and nine hundred eighty four/ tugrugs compensation amount to be given to five residents of Bayanzurkh district shall be funded from the budget of land resettlement expenses of Ulaanbaatar city for 2013; /Mr.E.Gankhuu, Finance and Treasury Department, Municipality of Ulaanbaatar/ 3. Land Acquisition Agreement shall be made in accordance with the related law of Mongolia in order to keep the sustainable process of the road construction. /Mr.Sh.Tomorbaatar, Property Relation Department, Municipality of Ulaanbaatar/ 4. Monitoring and evaluation of the aforementioned activities shall be done by Mr. N.Gantomor, the Vice Governor on Road, Transportation and Infrastructure. Signed by E.BAT UUL, Mayor of Ulaanbaatar and Governor of the Capital City 12

Land owner s name Appendix of Mayor s Order#A/1002 dated November 15, 2013 Compensation Calculation for the residents of 4 and 5 districts of Bayanzurkh district Address Valuation amount/tugrug/ Compensat ion amount Price Land type Price for cadastre/ mapping Asset Property Square meter 0 1 2 3 4 5 6 7 8 9 1 Arslanba atar Ganzorig 2 Bat Ochir Bimba Ochir 3 Gantomo r Saihanjar gal 4 Tsedevs uren Enkhzay a 5 Tsedevs uren Zolzaya 4 th khoroo, Tsergiin hothon 5-351, Bayanzurkh district 5 th khoroo, Monel 14-251a, Bayanzurkh district 4 th khoroo, Tsergiin hothon 5-364b, Bayanzurkh district 4 th khoroo, Tsergiin hothon 5-364, Bayanzurkh district 4 th khoroo, Tsergiin hothon 580, Bayanzurkh district 126911 8 27m2 356400 Privatize d 885752 6m 2 79200 Privatize d 951680 30m 2 396000 Privatize d 601046 19m 2 250800 Privatize d 121098 8 Total 491858 4 In Possessi on Total /tugrug/ 50000 1675518 50000 1014952 50000 1397680 50000 901846 50000 1260988 1082400 250000 6250984