Social Safeguards Due Diligence Report€¦ · Prepared by Zamyn-Uud Free Zone Governor’s Office...

Social Safeguards Due Diligence Report

April 2020

MON: Developing Cross-Border Economic Zone Project

Prepared by Zamyn-Uud Free Zone Governor’s Office and the Ministry of Construction and Urban Development of Mongolia for the Asian Development Bank.

This social 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. Your attention is directed to the “terms of use” section on ADB’s website. 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.

http://www.adb.org/terms-use

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Acronyms and Abbreviations

ADB Asian Development Bank DDR Due Diligence Report EA Executing Agency IA Implementing Agency MCUD Ministry of Construction and Urban Development ODPM Office of the Deputy Prime Minister’s OfficeSPS Safeguard Policy Statement 2009 (ADB) ZU Zamyn-Uud ZUFZ Zamyn-Uud free zone ZUFZGO Zamyn-Uud Free Zone Governor’s Office

Developing Cross-border Economic Zone Project (RRP MON 51410)


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Executive Summary

The purpose of this due diligence report (DDR) is to screen whether the local laws and regulations of Mongolia, and ADB’s involuntary resettlement policy safeguards will be triggeredby the proposed scope of works under the Project.

The screening is based on the ADB Social Policy Statement 2009 (SPS 2009) and the laws and regulations of the Government of Mongolia (the government). This DDR also documents the consultations held with key stakeholders, their concerns, and recommendations for project implementation.

There are three outputs under the project preparation for the Zamyn-Uud free zone (ZUFZ):

• Zamyn-Uud free zone infrastructure and facilities constructed.• Sustainable management and operation of Zamyn-Uud free zone promoted; and• Zamyn-Uud free zone port of entry system established.

Specifically, Physical infrastructure under output 1 will cover roughly 300 of the 900 hectares of the Zamyn-Uud free zone and address infrastructure gaps in the Zamyn-Uud free zone using a phased approach within the project area. This output comprises: (a) construction within the project area of: (i) new primary 4-lane and secondary 2-lane roads with sidewalks and streetlights; (ii) underground pipes for heating, water supply, and waste water collection, and power supply transmission lines; (iii) a solid waste management transfer station and a recycling center; (iv) security fence in accordance with the specifications of the General Authority of Border Protection; and (v) a gateway complex with a warehouse, a control space shed, gender-specific washrooms, and an inspection platform; and (b) installation of necessary equipment within the project area, including cargo and passenger automatic x-ray and radiation detection equipment.

The Office of the Deputy Prime Minister is the executing agency.

There are two implementing agencies under this project:

• The Zamyn-Uud Free Zone Governor’s Office (ZUFZGO). By law, a governor of afree zone is in charge of operation of the free zone and accountable to Deputy PrimeMinister; and,

• The Ministry of Construction and Urban Development (MCUD). The MCUD was theimplementing agency for the ancillary facilities and has the authority to issueconstruction permits and special licenses to operate necessary utilities that willsupport zone operations. The MCUD also has experience implementing ADB-fundedprojects1.

Land Requirement

There will be no private land required to be acquired by the project. The proposed subproject sites are on government land including the 900 ha free zone and the location of the utilities built just outside the zone to service it. The land within the free zone belongs to the ZU Free Zone

1 Memorandum of Understanding. Proposed Mongolia: Developing Cross-Border Economic Zone. September 2019.


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and the site for the heating plant and wastewater treatment plant just outside the ZU Free Zone belongs to the Ministry of Construction and Urban Development. These utilities include heating plant and waste water treatment facility built within the 5 km protected zone from the border with the People’s Republic of China (PRC) where building of private infrastructure was strictly notallowed. Also, the proposed cable and pipes for utilities to be built underground such as water, waste water treatment, power supply, heating, and fiber optic cable will utilize the existing right-of-way provided under the ZU Economic Zone 2011 Master Plan.

Damage to Non-Land Assets

There are no privately-owned non-land assets to be affected prior to the project construction as the proposed subproject sites are existing government infrastructure (water reservoir, heating plant and waste water treatment plant) and a new power plant to build just outside the free zone is on a vacant government land. To connect the investor lots to these services and utilities the project will utilize the right-of -way along the current and planned road as per the free zone Master Plan that laid out investor lots and roads as well as utilities that will be laid out along the road corridor thus the project is identified as Category C.

Cultural or Heritage Site

There is a cemetery about 300-400 meters away from the 300 ha phase 1 project site. The project has avoided the cemetery and the initial environmental examination report proposes to construct a fence around the old cemetery to protect and respect this site.

Legacy Issue and Land Disputes

There were no identified legacy issues and disputes during the feasibility study on the proposed subproject locations within and outside the free zone.

Socioeconomic Information

Population. The project area is located at the main Mongolia-PRC border crossing 700km SE of Ulaanbaatar. It is also about a kilometer from the Zamyn-Uud soum of Dornogovi province in southern Mongolia. There are 18,930 people (5,189 households), of whom 9,595 are male, and 9,335 are females according to the 2018 census.

Indigenous People. The project is Category C for impacts on Indigenous People. There are no indigenous communities within the ZUFZ. The ZUFZ, located in the Gobi desert region, is not identified to host any ethnic group. The current population is comprised of general Mongolian population who moved to the Zamyn-Uud border to find income opportunities from the increasing border trade. They are not considered distinct indigenous groups by the government’s or ADB’s indigenous peoples’ criteria.

There are 14 soums (districts) in Dornogovi province with five bags (sub-district/villages) including ZU. ZU is comprised of five bags with bags no. 3,4, and 5 being a ger (informal settlement) area. Bag no. 3 is the area with highest migrant population, estimated by local government to be at around 90% of its population. The majority work as informal traders (all women) and taxi drivers (estimated to be 90% men and 10% women).


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Livelihood. From a small border community, ZU developed into a small town located in the arid Gobi Desert environment with seasonal temperature extremes and limited water resources. Zamyn-Uud’s population relies heavily on border traffic and trade for its economic existence.

Access to basic services

Electricity. In 2018, 5,068 households in ZU are connected to the central electricity grid, six households connected to renewable energy source, 29 households connected to small-scale electricity generators and six households have no power.

Heating. 1,707 households in ZU are connected to the central heating grid. 2,972 households use fire stove, 97 households use electric heater, and 333 households use low pressure stove as a main heating source.

Water. 1,477 households in ZU are connected to central hot and cold-water system and 220 households are connected to central cold-water supply system. 3342 households carry water from closest well for household use.

Health information. There is only 1 hospital in ZU with 46 patients bed capacity. Another hospital is under construction with a planned 100-bed capacity in anticipation by the local government of the opening of the ZU economic zone.

Socioeconomic Summary

Aspect Zamyn-Uud Soum Male Female

Population (2018 Census)

18,930 (5,189 households) 9,595 9,335

Livelihood Informal trade with PRC border

Wage employment (mainly. government and some local)

Taxi drivers crossing the PRC border

Buying and selling Mongolia and Chinese. Products across the border

Health & Education Services

Hospital and health centers

Kindergarten, primary and secondary schools

Consultations and Community Project Support

A two-level consultation was held with key government and non-government stakeholders during the project preparation. The first level included a site visit and individual meetings with almost 30 key leaders including local government officials and ZUFZGO. Also, individual meetings with NGO, community organizations, street sellers, taxi drivers and informal traders across the border were held by the social safeguards team in May and June 2019. Moreover, meeting with investors’ group representatives, anti-human trafficking NGO and development partner werecarried out by the team in September 2019.

Stakeholders consultations included key respondent interviews with ZU local government officials including the town’s land officer, health and school directors, gender focal point. Also,informal traders including female fruit sellers in ZU, female traders to the Chinese border and border taxi drivers were also consulted from June – August 2019. Moreover, four free zoneinvestors, a non-government organization (Mongolia Gender Equality Center) and a


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development partner (International Organization for Migration) working on anti-human trafficking were interviewed in September 2019.

The majority of consulted stakeholders including the investors, NGO and community leaders and strongly supported the proposed project. They are very keen to operationalize the economic zone. However, the informal traders and taxi drivers expressed concerns on the impact of the opening of the free zone on their livelihoods. This concern was based on the restrictions imposed on their livelihoods particularly during the last three years from the Chinese side. Currently, the economic zone is still not operating, with only three to four investor structures on the 900 ha site including two meat processing and a pre-fabricated construction plants. Lack of connection to infrastructure facilities by investors such as power, water supply, waste water facility, and heating supply was one of the main causes for inability of the economic zone to operate.

The implementing agencies are responsible for submitting the DDR. The Project Implementation Unit (PIU) will also submit progress reports which will include a section on social safeguards monitoring. These will be submitted to the implementing agencies and ADB as part of project performance monitoring.


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Table of Contents

Acronyms and Abbreviations ..................................................................................... 3 Executive Summary ..................................................................................................... 4 I. Project Description ............................................................................................. 10 II. Project Description ............................................................................................. 11 III. Methodology .................................................................................................... 13 IV. Proposed Works and Scope of Land Use ..................................................... 14 V. Community Socioeconomic Information .......................................................... 24 VII. Information Disclosure, Consultation and Participation ............................. 26 VIII. Institutional Arrangements ............................................................................. 26 IX. Monitoring and Reporting .............................................................................. 27

APPENDICES.............................................................................................................. 28 Appendix 1 Land Certificates ...................................................................................... 28 Appendix 2 List of People Met .................................................................................... 48 Appendix 3 Involuntary Resettlement Screening Checklist ........................................ 49 Appendix 4 Indigenous Peoples Impact Screening Checklist ..................................... 50

TABLES Table 1 Summary of Existing Infrastructure and Services .......................................................14 Table 2 Landownership Status ...............................................................................................16


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FIGURES Figure 1 Project Map Showing Location in Mongolia Border with Autonomous Region of Inner Mongolia, PRC ........................................................................................................................11 Figure 2 Location of Zamyn-Uud Proposed Cross Border Economic Free Zone .....................11 Figure 3 Existing and Planned Infrastructure Location Within and Outside the Free Zone ......15 Figure 4 Project Map- Existing Infrastructure Roads (Zamyn-Uud) .........................................17 Figure 5 Project Map - Existing Heat Distribution Network ......................................................17 Figure 6 Project Map - Existing Water Supply System ............................................................18 Figure 7 Project Map - Existing Wastewater Network .............................................................18 Figure 8 Project Map - Existing Power Supply Network ..........................................................19 Figure 9 Project Map - Existing Investor Location ...................................................................19 Figure 10 Project Map Investor Lots .......................................................................................20 Figure 11 Project Map- Proposed Road Locations ...................................................................20 Figure 12 Project Map - Proposed Heating Locations ..............................................................21 Figure 13 Project Map - Proposed Water Supply ....................................................................21 Figure 14 Project Map- Proposed Waste Water .......................................................................22 Figure 15 Project Map - Proposed Power Location .................................................................22 Figure 16 Diagram of Proposed Utility Connection .................................................................23 Figure 17 Old cemetery outside the 300 ha of the 900 Zamyn-Uud Free Zone ........................24

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I. Project Description

1. The purpose of the due diligence report (DDR) is to determine the status of landownership in the proposed project sites and to identify potential involuntary resettlement impacts,and to plan appropriate measures to mitigate potential impacts. These assessments andmeasures are based on the ADB Social Policy Statement 2009 (SPS 2009) and the laws of theGovernment of Mongolia. The DDR documents the consultations held with key stakeholders,their concerns and recommendations as well as measures on how to address them during projectimplementation.

2. This due diligence report (DDR) on involuntary resettlement for the above projectdescribes:

• Brief project background;• Scope of works;• Current status of land ownership or use; and• Identification of land requirement for subproject components and potential issues.

3. A transaction technical assistance (TA) facility for Mongolia: Preparing RegionalCooperation and Integration Projects has been approved by Asian Development Bank (ADB) on7 December 2018. This ADB TA supports the preparation of (i) Developing Cross-BorderEconomic Zone (the Project) (P51410-001, project 1) and (ii) Additional financing for RegionalImprovement of Border Services (P51408-001, project 2).2

4. Development of free zones is a government priority forming part of Mongolia’sSustainable Development Vision 2030 and Action Plan of the Government of Mongolia 2016–2020. The main objective is to support Mongolia’s economic diversification through increasedmanufacturing activities in free zones, trade, and investment promotion. Since 2002, three freezones were established by separate legislations. Mongolia’s free zones are currently governedby the Law of Mongolia on Free Zones (as amended in 2015) and under the purview of the Officeof the Deputy Prime Minister. The project map below ( Figure 1) illustrates the location of theproposed project site on the Mongolian border next to the Inner Mongolia Autonomous Regionin the PRC.

2 Concept Paper. ADB Proposed Loan Mongolia: Developing Cross Border Economic Zone. May 2019.


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Figure 1 Project Map Showing Location in Mongolia border with Inner Mongolia, PRC

Figure 2 Location of Zamyn-Uud Proposed Cross Border Economic Cooperation Zone

II. Project Description

5. The proposed project aims to develop one of these free zones, namely, the Zamyn-Uud(ZU) free zone which covers 900 hectares of land, adjacent to the key border crossing point inZamyn-Uud, and is 8 km away from the PRC’s pilot development and opening up zone inErenhot, Inner Mongolia Autonomous Region.


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Photograph 1 View from ZUFEZ Governor’s Office looking North East to proposed ZUFEZ 300ha area.

Photograph 5 Completed road within proposed ZUFEZ 300ha area.

Photograph 2 Road reserve on unmade ground for future road in proposed ZUFEZ 300ha area.

Photograph 6 Partial constructed factory building on allotted land within ZUFEZ.

Photograph 3 View ZUFEZ looking North West towards thermal power plant outside ZUFEZ area

Photograph 7 Concrete batching plant buildings on allotted land within ZUFEZ

Photograph 4 Installed wastewater system. Inspection chamber & sewage pumping station

Photograph 8 Existing railway leading to PRC border outside ZUFEZ 300ha area.


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6. The project cost is estimated at $34.4 million of which $30.0 is to be funded under ADB’sConcessional Loan (Ordinary Capital Resources). There are three outputs under the projectpreparation for the Zamyn-Uud free zone (ZUFZ):

• Zamyn-Uud free zone infrastructure and facilities constructed.• Sustainable management and operation of Zamyn-Uud free zone promoted; and• Zamyn-Uud free zone port of entry system established.

7. Specifically, Physical infrastructure under output 1 will cover roughly 300 of the 900hectares of the Zamyn-Uud free zone and address infrastructure gaps in the Zamyn-Uud freezone using a phased approach within the project area. This output comprises: (a) constructionwithin the project area of: (i) new primary 4-lane and secondary 2-lane roads with sidewalks andstreetlights; (ii) underground pipes for heating, water supply, and waste water collection, andpower supply transmission lines; (iii) a solid waste management transfer station and a recyclingcenter; (iv) security fence in accordance with the specifications of the General Authority of BorderProtection; and (v) a gateway complex with a warehouse, a control space shed, gender-specificwashrooms, and an inspection platform; and (b) installation of necessary equipment within theproject area, including cargo and passenger automatic x-ray and radiation detection equipment.

8. The project aims to maximize the existing infrastructure and facilities and provideinfrastructure to service the maximum number of investors with allocated lots. The proposedinvestments in capital works under the ADB project will prioritize missing infrastructuredevelopment crucial to servicing the investor lots and border linkage within the 300 hectares(e.g., lines for connecting with power supply, heating, water supply and wastewater and roadwith adequate lighting).

III. Methodology

9. Site visits, meetings with the Government officials, private sector, and communityrepresentatives, and desktop review of project documents were carried out by the socialdevelopment consultants during the project feasibility study period from March to September2019.

10. At least 26 stakeholders, comprised by national and local government agencies, non-government organizations involved in delivery of community development programs, research,and anti-human trafficking campaigns were consulted. Also, at least five informal traders andthree taxi drivers operating between Mongolia and PRC border were consulted during thefeasibility study. Moreover, at least four private sector investor representatives (potential affectedpersons as owners of investor lots within the free zone) were also consulted by the project teamthrough one-on-one consultations, at least three group consultations, and through conduct ofsocioeconomic survey during the feasibility study from May to September 2019 (Appendix 2 Listof People Met).

11. There were four main agenda during the consultations: (i) presentation of the proposedoperationalization of the free zone along the border with PRC; (ii) identification of potential projectissues or existing concerns; (iii) willingness by investors to move their lot allocations to be closerto utilities connection; and (iv) collection of recommendations from individual meetings andcommunity consultations on how to address existing or potential issues related to the proposedfour subproject roads.


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IV. Proposed Works and Scope of Land Use

12. The proposed works for the operationalization of the free zone include are listed below:

• Completion of additional infrastructure to connect investor slots to: roads, water supply,waste water, heating, power and provision for fibre optic;

• Basic Security Fence;• Landscape and climate adaptation;• Phase 1 of Gateway facilities: customs, immigration, inspection and border protection;

and,• Link to the IMAR-Erenhot Phase 1 portion of the CBFEZ.

13. Completion of Infrastructure. The completion of infrastructure and utilities connection toservice investor slots will not acquire private land thus will not physically displaced personsand households. Water supply, power, cable and pipe connections will be buried undergroundusing the right-of-way along the existing and planned road corridors as per the free zone MasterPlan (ref Appendix 1 Land Certificates).

14. The existing infrastructure and utilities were built from a previous USD 58.8 million softloan from the PRC. The loan funded the construction of initial phase of on-site infrastructurewithin the free zone and off-site service facilities in 2016, but never commissioned. At the sametime, through the government’s tendering process, 58 initial potential investors were selected and lots allocated based on the land sizes investors requested and according to proposed landuses, e.g., manufacturing, processing, logistics etc. Since then investors have been awaitinggovernment’s completion of additional infrastructure to enable individual lot connections to utilities.3 The ADB project funding will support completion of these facilities to operationalize theZUFZ.

15. Existing Infrastructure. Water reservoir, heating plant, and wastewater treatmentfacilities were the existing infrastructure and utilities built from the PRC-funded loan in 2016(Figure 3). The water supply was primarily built to support the economic zone while the powerplant and wastewater facilities were to support both the Zamyn-Uud economic zone and theZamyn-Uud soum. Table 1Summary of Existing Infrastructure and Services belowsummarizes their technical specification, distance from the zone, and main purpose for these infrastructure:Table 1 Summary of Existing Infrastructure and Services

Existing infrastructure

Source Technical Specifications

Distance from the Free Zone

Purpose

1. Waterreservoir(inside thezone; next tothe power sub-station)

On-site Capacity: 1,500m3 Within the ZUFZ (next to the border with the Zamyn-Uud soum)

For the economic zone.

3 Physical Planning Technical Paper. Consulting Team. 20 September 2019.


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Existing infrastructure

Source Technical Specifications

Distance from the Free Zone

Purpose

2. Thermal powerplant/heatingplant

Off-site Capacity: 80Gcal/hour, heating transformation center 7.8-28.8Q/Gcal/hour, heating transformation center 0.5-2.5Q/Gcal/hour, heating pipeline-double D920, length-2,53km, heating pipeline-double D150-400, length-6.67km, heating pipeline-double D273-720, length-4,8km.

1,800 m (approx.) to the ZUFZ (phase 1 300 ha area). Outside the 900ha, not so far from Waste Water Treatment Plant.

To be shared between economic zone and ZU soum.

3. Wastewatertreatmentfacility

Off-site WW pipeline HDPE D400, length-4,85km, WW pipeline HDPE D500, length-1,4km, WW pipeline HDPE D600, 3,2km. Shared with ZU soum center.

2,300 m (approx.) to the ZUFZ (phase 1 300 ha area). Close to the heating plant.

To be shared between economic zone and ZU soum.

Figure 3 Existing and Planned Infrastructure Location Within and Outside the Free Zone

Note: This figure also shows the current location of the Gateway Free Zone (left side) to the proposed relocation on the right hand side within the Phase 1 300 ha.


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16. Basic security fence. Construction of a chain-linked fence within approximately 300 haphase 1 free zone is also not expected to require private land and cause any involuntaryresettlement impacts as this site is on a vacant, government-owned land. The fencing beextended to encompass all of the originally allocated investor lots in phase 1. This will provide alevel of security desired by investors and serve as a first phase of border security.

17. Landscape and climate adaptation. Planting of trees or any similar landscaping andclimate adaptation measures within the 300 hectares of the free zone is also not expected tocause any land acquisition and physical displacement of households.

18. Gateway facilities and link to IMAR-Erenhot Phase 1. This project component willinclude capital works components with construction of buildings and infrastructure onundeveloped desert land. However, these will not cause involuntary resettlement impacts asthese will be built on government-allocated land in the case of buildings and will utitlize right-of-way in the case of infrastructure designated for such purpose under the Free Zone’s 2011 Master Plan.

Table 2 Landownership Status

Proposed Works Land Use Land Ownership Land Issues

1. Existing structures outside the900 ha FZ

Existing location for infrastructure

Government None..

2. Additional new infrastructureand construction of utilities toslots within the 900 ha FZ (e.g.pipes to be buried undergroundalong the road corridor)

Vacant desert land/right -of-way

Government None

3. Basic security fence forapproximately 300 ha

Vacant desert land Government None

4. Landscape and climateadaptation


5. Gateway facilities and link toIMAR-Erenhot Phase 1


Existing Infrastructure in the ZU Free zone

19. The maps4 below illustrate the location of the existing infrastructures and utilities withinand outside the 900 ha free zone.

4 Physical Planning Technical Paper. Consulting Team. 20 September 2019.


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Figure 4 Project Map- Existing Infrastructure Roads (Zamyn-Uud)

Figure 5 Project Map - Existing Heat Distribution Network


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Figure 6 Project Map - Existing Water Supply System

Figure 7 Project Map - Existing Wastewater Network


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Figure 8 Project Map - Existing Power Supply Network

20. The map below (Figure 9) shows the location of the 58 investor lots. Except for about threeinvestors who have started construction or completed their structures, these lots are still vacantlots with investors waiting to be connected to services. The proposed phased developmentprioritizing 300 ha of the 900 ha zone will encourage the investors to move closer to the centerof the FZ (middle of the 900 ha zone) to be connected to utilities.

Figure 9 Project Map - Existing Investor Location


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Proposed New Infrastructures

21. To complete infrastructure networks to the point where they are ready forindividual developer/investor hook-up, connections must be provided from infrastructuremains to the edge of individual lots. These should be provided with shut-offvalves/junctions ready for investors to connect directly to without disturbing theinfrastructure mains.

22. The figure below (Figure 10) illustrates the proposed Phase 1 land uses and facilities.

Figure 10 Project Map Investor Lots

23. Below illustrates the location of the existing and proposed additional roads in Figure 11

below:

Figure 11 Project Map- Proposed Road Locations


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24. Below illustrates the location of the proposed heating infrastructure:

Figure 12 Project Map - Proposed Heating Locations

25. Below illustrates the location of the proposed water supply:

Figure 13 Project Map - Proposed Water Supply


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26. Below illustrates the location of the proposed waste collection:

Figure 14 Project Map- Proposed Waste Water

27. Below illustrates the location of the proposed power infrastructure:

Figure 15 Project Map - Proposed Power Location


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28. The diagram below indicates the alignment of utilities along the road reserve:

Figure 16 Diagram of Proposed Utility Connection

Cultural or Heritage Site

29. There is a cemetery about 300-400 meters away from the 300 ha phase 1 project site.The project has avoided the cemetery and the initial environmental examination report proposesto construct a fence around the cemetery to protect and respect the site. This cemetery hasabout 20 graves. According to the ZUFZ Officials, this is an old cemetery used to bury peoplefrom China, Russia, and local people about the beginning of the century but had been relocatedbeing in the Special Zone and facing away from the easterly direction. Most of the remains weremoved by their relatives.. During consultation with the Zamyn-Uud Free Zone Governor and hisofficer-in-charge, they are planning to fence it, put a Buddhist tombstone “stupa” and conduct aceremony as suggested by the local monk to protect the site during project construction.


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Figure 17 Old cemetery outside the 300 ha of the 900 Zamyn-Uud Free Zone

V. Community Socioeconomic Information

30. Location. The ZUFZ, except for about four structures spread within the 900 ha area, islargely an arid area, located in eastern Gobi desert. It is a small town of comprised of 18, 930people (5,189 households) of whom 9,595 are male and 9,335 are females according to the2018 census5 . ZU is located at the main Mongolia-PRC border crossing, 700km SE ofUlaanbaatar, Mongolia’s capital. On the PRC side, Erenhot town has expanded from an evensmaller town to a highly developed urban centre of over 100,000 in the past 20 years. Bothurban centres are located in the arid Gobi Desert environment with seasonal temperatureextremes and limited water resources. ZU’s population relies heavily on border traffic and tradefor its economic existence.6

5 Governor Office of Zamyn Uud soum, Dornogovi province. June 2019. 6 Ibid.

Photograph 10. One of the remaining graves in the abandoned cemetery Photograph 9. Abandoned cemetery outside the 300 ha

phase 1 of the 900 ha ZUFZ


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31. ZU Free Zone is located about a kilometer from Zamyn-Uud soum of Dornogovi provincein southern Mongolia. There are 14 soums (districts) in the province. There are five bags (sub-district/villages) in ZU with bags no. 3, 4, and 5 being a ger (informal settlement) area. Bag no.3 is the area with highest migrant population, estimated by local government to be at around90% of its population.7

32. Indigenous People. The project is Category C on Indigenous People. There are noindigenous peoples communities within the ZUFZ. The zone, located in the Gobi desert region,is not identified to host any ethnic group. The current population is comprised of generalMongolian population who moved to the Zamyn-Uud border to find income opportunities fromthe increasing border trade. They are not considered distinct indigenous groups by theGovernment, and they do not trigger ADB’s indigenous peoples’ safeguards.

VI. Access to Basic Social Services and Infrastructure

33. Electricity. In 2018, 5,068 households (98%) in ZU are connected to the main grid; 29households connected to small-scale electricity generators; six households are connected torenewable energy source; and six households have no electricity connection.

34. Heating. 1,707 households (32%) in ZU are connected to the central heating grid; 2,972households (57%) use fire stove; 97 households (1.9%) use electric heater; and 333 households(6.4%) use low pressure stove as a main heating source.

35. Water supply. 1,477 households (28.4%) in ZU are connected to central hot and cold-watersystem and 220 households (4.3%) are connected to central cold-water supply system. 3,342households (64.4%) carry water from closest well for household use.

36. Health facilities. There is only one hospital in ZU with 46 patients bed capacity. Anotherhospital is under construction with a planned 100-bed capacity in anticipation by the localgovernment of the opening of the ZU FZ.

37. People in poverty. There are 68 households living below the national poverty line in ZU with26 households reportedly living under extreme poverty8.

38. Vulnerable population. Compared to 2017, a total number of female-headed householdsincreased by 266 (11.7%) in Dornogvi Province and single male-headed households increasedby 35 (8.7%) reaching a total of 367 at Dornogovii provincial level in 2018.

• 1071 (53.5%) female-headed households with up to 3 members• 812 (40.6%) female-headed households with 3 to 5 members• 118 (5.9% ) female-headed households with more than 6 members

39. In 2018, there are 114 female-headed households and 12 male-headed households inZamyn-Uud.

7 Munkhtsetseg.B, Officer at Governor Office of 3rd June 2019. 8 The National poverty line for the Dornogovi province in 2018 is 175’600MNT monthly. Available at:

http://www.dornogovi.nso.mn/page/595


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Gender Bag 1 Bag 2 Bag 3 Bag 4 Bag 5 Total

Single father HH 2 3 3 4 0 12 Single mother HH 21 42 23 19 9 114

VII. Information Disclosure, Consultation and Participation

40. A two-level consultation was held with key government and non-governmentstakeholders during the project preparation. The first level included a site visit and individualmeetings with almost 30 key leaders including local government officials and ZU EconomicZUFZGO. Also, individual meetings with NGO, community organizations, street sellers, taxidrivers and informal traders across the border were held by the social safeguards team in Mayand June 2019. Moreover, meeting with investors’ group representatives, anti-human traffickingNGO and development partner were carried out by the team in September 2019.

41. Stakeholder consultations included key respondent interviews with ZU local governmentofficials including the town’s land officer, health and school directors, gender focal point. Also,informal traders including female fruit sellers in ZU, female traders to the Chinese border andborder taxi drivers were also consulted from June – August 2019. Moreover, four free zoneinvestors, an NGO (Mongolia Gender Equality Center) and a development partner (InternationalOrganization for Migration) working on anti-human trafficking were interviewed in September2019.

42. The majority of consulted stakeholders including the investors, NGO and communityleaders and strongly supported the proposed project. They are very keen to operationalize theeconomic zone. However, the informal traders and taxi drivers expressed concerns on theimpact of the opening of the free zone on their livelihoods. This concern was based on therestrictions imposed on their livelihoods particularly during the last three years from the Chineseside. Currently, the economic zone is still not operating, with only three to four investor structureson the 900 ha site including two meat processing and a pre-fabricated construction plants. Lackof connection to infrastructure facilities by investors such as power, water supply, waste waterfacility, and heating supply was one of the main causes for inability of the economic zone tooperate.

VIII. Institutional Arrangements

43. Following are the different agencies responsible for the updating, implementing,monitoring and reporting on the progress of the DDR:

44. Executing agency: The ODPM will be the executing agency, responsible for overalladministration of the project, as ODPM has oversight on policy and management of Mongolia’sfree zones. There are two executing agencies under this project:

45. Implementing agencies: There are two executing agencies under this project:

• the ZUFZ Governor’s Office. By law, a governor of a free zone is in charge ofoperation of the free zone and accountable to Deputy Prime Minister; and,


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• the Ministry of Construction and Urban Development (MCUD). The MCUD was theimplementing agency for the ancillary facilities and has the authority to issueconstruction permits and special licenses to operate necessary utilities that willsupport zone operations. The MCUD also has experience implementing ADB-fundedprojects9.

46. All responsibilities for land-related matters will be held by the ZUFZGO.

47. The PSC will be chaired by the designated official from the EA and composed of seniorofficials of: MOF, MCUD, NDA (National Development Agency), MCGA, General Agency forSpecialized Inspection (GASI), General Authority for Border Protection, Ministry of ForeignAffairs (MOFA), Ministry of Environment and Tourism, Mongolian Immigration Agency (MIA),ZUFZGO, Ministry of Agriculture, Food and Light Industry and one or two representativesappointed by the Mongolian National Chamber of Commerce and Industry (MNCCI), andZamyn-Uud Green Zone investors.

48. The EA in consultation with MOF will establish a Project Implementation Unit (PIU) tooversee the day-to-day management of the project and liaise with all relevant governmentoffices. On behalf of the EA and IAs, the PIU will be responsible for coordinating andimplementing project activities, including procurement, recruitment, disbursement, contractadministration, monitoring and reporting. The PIU will report to the EA and work closely with thetwo IAs. The PIU will include a social and gender specialist to provide implementation support,monitor and report on progress and achievement of targets.

IX. Monitoring and Reporting

49. The PIU will focus on monitoring and ensuring the timely resolution of all grievances andconsultation with the stakeholders. The scope of monitoring includes consultation with the projectaffected communities including investors and representatives during the detailed design/prior toconstruction to inform them of the proposed scope of works, construction schedule, grievanceredress mechanism, and potential local employment opportunities through discussion with thecontractor.

50. The IA through the ZUFZGO’s Office of the Governor, through its PIU, will maintainproper documentation of consultation process and keep relevant records of communityconsultations, particularly concerns and recommendations by the consulted stakeholders andcommunities to feed into the detailed design or for any further action by ZUFZGO’s Office of theGovernor/or contractor. The PIU will also integrate monitoring of the Gender Action Plan into theProject Management Information System.

51. Should resettlement issues be identified during detailed design, the Zamyn-Uud FreeZone Governor’s Office will prepare a corrective action plan and will be submitted to ADB forreview and concurrence.

9 Memorandum of Understanding. Proposed Mongolia: Developing Cross-Border Economic Zone. September 2019.


28

APPENDICES

Appendix 1: Land Certificates

НЭЛТ

• 200ү 3 3-

ө 39 1,2- “Ц , , , ”

2Ү,5 я 15 .

• 2009 10 28- ө 135 1 “ , №5, №6,

№Ү” 25,22 15 .

• 2011 4 11-

ө /5Ү 1,2,3- “ ” 11,49

ө өө 15 .

• 2011 9 19-

ө /1Ү5 2,3- “ ” ө өө

15 .• - Э ө өө 2011 3

07- ө 9 “ - ө ө ”-

, , 105,61

15 .

• - Э ө өө 2013 12

1ү- ө /41 “ - ” ө өө 110/10 - , 0,4 -

/Т /-16 , 10/0,4 - / / -2 , 19,3 40

.• - Э ө өө 2013 12

1ү- ө /42 “ - ” ө өө


29

,

24 40 .

CONCLUSION Documents concerning on issuing a land possession right

• Total of 5 hectares of land has been possessed to the Construction and EmploymentOffice of the Ministry of Construction and Urban Development for a period of 15 yearswith a purpose of constructing "Sewerage, reservoir, pump station and seweragepipeline" within territories of the 2 nd bag of Zamyn-Uud soum, Dornogobi provinceby order No 39 of March 3, 2008 of Governor of Zamyn Uud soum, Dornogovi aimag

• According to the order No.14 of October 28, 2009 of the Governor of Zamyn Uud,Dornogovi province, total of 25.22 hectares of land has been possessed to Governor'sOffice of Zamyn Uud soum for a period of 15 years with a purpose of constructing"Thermal Power Plant, Heat Transfer Subtree # 5, Heat Transfer Subtree # 6 andHeat Subproject No. 7".

• Total of 11.49 hectares area in territories of 1st, 2nd and 3rd bags of Zamyn Uud soumhas been possessed to Governor’s Working Group of Zamyn-Uud free zone for aperiod of 15 years with a purpose of constructing Infrastructure Line by the orderNo.A/57 of Aprill 11, 2011 of Governor of Zamyn-Uud soum, Dornogovi province.

• According to the order No A/175 of September 19, 2011 of Governor of Zamyn-Uudsoum, Dornogovi province, territories of 2nd and 3rd bags have been possessed toGovernor’s Working Group of Zamyn-Uud free zone for a period of 15 years with apurpose of constructing Infrasturucture Line.

• According to the order No. 9 of March 07, 2011 of Governor of Zamyn-Uud free zone,total of 105,61 hectare land has been possessed to Governor’s Working Group for aperiod of 15 years with a purpose of engineering facility, its line network andprotection zone to be constructed in a scope of Improving Infrastructure of Zamyn-Uud project.

Documents concerning on certifying possession rights

• Under the order A/41of December 18, 2013 of Governor of Zamyn-Uud free zone,total of 19,3 hectare land of power transmission substation with 110/10kB, allocationwith 0.4kB /totaling 16/, and with 10/0,4kB /totaling 2/ has been possessed toGovernor’s Working Group of the zone for a period of 40 years.


30

• According to the order No. A/42 of December 18, 2013 of Governor’s Working Groupof Zamyn-Uud free zone , total of 24 hectare land used as a protection zone alongsidewater and sanitation facilities, water supply and sewerage pipeline has beenpossessed to Governor’s Working Group of the zone for a period of 40 years.

MINISTRY OF CONSTRUCTION AND

URBAN DEVELOPMENT TO GOVERNOR’S OFFICE OF ZAMYN-

UUD

ADMINISTRATION BEFORE SOUM, DORNOGOBI PROVINCE

INFRASTRUCTURE MAINTENANCE

14th floor of Express Tower, Peace Avenue

1st khoroo, Chingelteo District

Ulaanbaatar city, Mongolia

December 21, 2018 №55/18

TO WHOM IT MAY CONCERN:

“Administration beПore InПrastructure Maintenance” oП the Ministrв oП Construction and Urban Development is currently working on officially receiving completed four work packages in a scope of

“ImprovinР InПrastructure oП Zamyn-Uud Project” and providinР permanent operation condition.

Therefore, we are submitting our request to register a land possession certificate of engineering grid and

buildings constructed in area of Zamyn-Uud soum, Dornogobi province in a scope of this project under

our organization name.

Appendix 24 pages

CHAIRMAN: MENDSAIKHAN.G


31

GOVERNOR’S ORDER OF ZAMYN-UUD SOUM

DORNOGOBI PROVINCE

March 03, 2008 №39

Concerning about issuing land possession right

Pursuant to clause #1.1 of Article 33 of the Law of MonРolia on Land and resolution #Ү/0Ү oП the Citiгens’ Representative Meeting of the province, it issues an order:

• Approve siгe oП possessinР land to “Department oП Construction Client” oП the Ministrв oПConstruction and Urban Development in area of 1st and 2nd bags of the soum with license of

15 years period in the appendix.

• Head of Department of Construction Client Tomorbaatar.N is duly tasked to realize following

measures:

Construct buildings in accordance with standards, create green environment covering 10% of total area

with a full utilization and possess land accordingly to the Law of Mongolia on Land and relevant

regulations.

• Specialist of Environment and Land Issues Gantsetseg.S is charged to take following

measures:

• Establish a contract of land possession with this organization and take control on

payment issue and possessed land utilization

• Invalidate land possession right in case of violating the contract and not implementing

contractual obligations

GOVERNOR: DASHTSOO.E

LAND LOCATION, PURPOSE, SIZE

№ Land location Land purpose Land size

1 On the east part of auto road border crossing

checkpoint

Cleaning building 6.25

2 On the southern east part of oil product

transferring building

Pump station, pool 4.75

3 In area of 1st and 2nd bags Clean and dirty water

pipeline

16.5

4 Total 27.5


32

GOVERNOR’S ORDER OF ZAMYN-UUD SOUM OF DORNOGOBI PROVINCE

October 28, 2009 №135 Borkhoin Tal


Pursuant to clause #1.1 of Article 33 of the Law of Mongolia on Land and resolution #76 of 2009 of the

Citiгens’ Representative MeetinР oП the province, it issues an order:

• Approve siгe oП possessinР land to Governor’s OППice oП Zamyn-Uud soum in area of 1st bag

of the soum with license of 15 years period in the appendix.

• Head oП Governor’s OППice Batdulam.B is dulв tasked to realiгe ПolloаinР measures:• Construct buildings and houses with good appearance in accordance with approved

size, keep environment clean, create green environment with covering 10% of total

area with full utilization and possess land accordingly as stated in the Law of

Mongolia on Land and other relevant regulations.

• Establish a contract of land possession with a specialist of Land Affairs and Urban

Development and possess the land according to its purpose.

• Specialist of Land Affairs and Urban Development Bayarbold.G is charged to take following

measures:

• Establish a contract of land possession with above-mentioned citizens and take control

on payment issue and possessed land utilization


contractual obligations

ACTING GOVERNOR: MONKHBAT.D


33

Order appendix №135 of 2009 of Governor of the soum

LAND LOCATION, PURPOSE AND SIZE

GOVERNOR’S OFFICE

GOVERNOR’S ORDER OF ZAMYN-UUD SOUM OF DORNOGOBI PROVINCE

April 11, 2011 №A/57 Borkhoin Steppe


Pursuant to clause #1.1 of Article 33 of the Law of Mongolia on Land and resolution #76 of 2009 of the

Citiгens’ Representative MeetinР oП the province, it issues an order:

• Approve location, siгe and use oП possessinР land to Governor’s OППice oП Zamyn-Uud soum

in area of 1st bag of the soum with a purpose of constructing infrastructure power grids in a

scope oП “ImprovinР inПrastructure oП Zamyn-Uud” project аith license oП 15 years period in

the appendix.

• Head oП Governor’s OППice oП Zamyn Uud Free zone Togoontumur.Yu is duly tasked to

construct buildings with good appearance in accordance with approved size, keep

environment clean, and possess land accordingly as stated in the Law of Mongolia on Land

and other relevant regulations.

• Specialist of Land Affairs and Urban Development Policy Regulation Bayarbold.G is charged

to establish a contract of land possession with above-mentioned organizations and take control

on payment issue and possessed land utilization.


contractual obligations.

GOVERNOR: BAYANMUNKH.M

№ LAND LOCATION LAND PURPOSE LAND SIZE

1 550m on the east part of Customs X-ray and

main railroad

Thermal Power Station 25.2

2 On the northern west part of apartment of 64

families

Heat Transfer Substation

№5

0.0054

3 On the east part of a border checkpoint Heat Transfer Substation

№6

0.0054

4 On the northern part of auto station of stock

market

Heat Transfer Substation

№7

0.0054


34

№ Land location Land purpose Land size

/hectare/

1 Starting from free zone coordinates of

N=4841837.990 E=573398.581 through

N=4841905.726 E=573790.982, N=4842050.395

E=574083.423, and running parallel to drainage

tube which is connected to thermal station located

0.46km far from this point from free zone, and

both crossing through railroad at 11K-

11116143m to N=4842236.322 E=574255.071

point.

2.25km main grid to connect to

thermal power station of Zamyn-Uud

Free zone

2.25

2 Starting from free zone coordinates of

N=4842346.196 E=570038.883 to coordinates of

N=4843836.431 E=571699.348 of clean water

main grid of Zamyn-Uud soum.

2.3km clean water main grid to

connect Zamyn-Uud Free zone to

clean water main grid of Zamyn-Uud

soum

2.3

3 Starting from coordinates N=4841894.347

E=573405.188 of free zone alongside coordinates

N=4841991.475 E=573866.779, N=4842016.633

E=573899.750, N=4841988.141 E=574087.650,

N=4842109.319 E=574208.322.

1.7km main sewerage to connect

Zamyn-Uud Free zone to drainage

building

1.7


E=574211.048 alongside coordinates

N=4841981.732 E=574089.735, N=4842011.911

E=573900.624, N=4841985.791 E=573869.402,

N=4841794.041 E=573419.698.

1.7km grey water main grid to carry

grey water generated from sewage

cleaning system to Zamyn-Uud Free

zone

1.7


E=570090.747 to coordinates N=4842574.241

E=570131.707, N=4843597.178 E=570291.135,

N=4844354.987 E=571164.531, N=4844332.179

E=571164.531.

2.7km power grid to connect power

substation with 110/10kB to be

constructed in Zamyn-Uud Free zone

to power substation with 110/10kB of

Zamyn-Uud soum

2.7

6 Starting from coordinates from Erlian city of

China N=4841843.981 E=573735.694 alongside

coordinates N=4842022.554 E=573920.254,

N=4842005.117 E=574034.541, N=4842247.846

E=574241.669, N=4842319.028 E=574267.560,

N=4842376.073 E=574316.082 to thermal

station.

0.84km power grid to connect to

backup system from Erlian city of

China for power backup of thermal

station

0.84

GOVERNOR’S OFFICE


35

ACT ON THERMAL GRID TRASS SELECTION TO CONNECT ZAMYN-UUD FREE ZONE

TO HEAT SOURCE IN A SCOPE OF IMPROVING INFRASTRUCTURE OF ZAMYN-UUD

PROJECT

April 6, 2011 Ulaanbaatar city

1 Name of

building,

capacity

Thermal power grid to connect Zamyn-Uud free zone to heat source in a

scope of Improving infrastructure of Zamyn-Uud project. Provided general

information in the following. It includes:

• Length of thermal power grid: 2.25km dual grid of f 920

2 Location Selected on pursuant to resolution #17 of the Parliament of Mongolia, a

master plan for Zamyn-Uud free zone, a general development plan for

Zamyn-Uud soum, and topography and plotting mapping of relevant thermal

power grid trass are attached.

Heat Transfer Grid- Starting from coordinates N=4841837.990

E=573398.581 of Zamyn Uud free zone through coordinates

N=4841905.726 E=573790.982, N=4842050.395 E=574083.423, and

running parallel to dirty water sewerage which is connected to thermal

station located 0,46km away from free zone and crossing through railroad at

PK-11116+43,28m in the parallel direction to dirty water sewerage of

Zamyn-Uud soum and it will be connected to thermal station.

3 Land selection Selection on thermal power grid trass of outside of region to be connected

to heat source is made on taking particular account from executor companies

which completed a blueprint and professional organizations. Representatives

consisted oП Governor’s OППice oП Zamyn-Uud soum, Governor’s АorkinР Group of Zamyn-Uud free zone, Professional Inspection Agency,

Department of construction and urban development and planning,

“MeРaаatt” LLC and “CHINA CAMC ENGINEERING” visited on the spot and agreed.

4 Selected

location,

weather

averages,

previous

researches or

assessment

Economic feasibility of Improving Infrastructure of Zamyn-Uud project to

be carried out in area of Zamyn-Uud soum and Zamyn-Uud free zone was

made on initiation oП Governor’s АorkinР Group oП free zone, supported by

Council oП Sector’s Science and Technique under the Ministry of Road,

Transport, Construction and Urban Development and approved by expertise.

All research work relevant to economic feasibility is included.

5 Mandatory

documents to

be attached

Thermal power station location, thermal grid trass topography and plotting

area mapping are attached.

6 Commission

assessment

Agreed on that issuing land use right alongside power grid trass to be

connected to thermal power station outside of Zamyn-Uud free zone in a

scope of Improving infrastructure of Zamyn-Uud project should be ordered

by Governor of Zamyn-Uud soum.


36

ACT APPROVED BY:

Chairman of Commission:

Governor of Zamyn-Uud soum, Dornogobi province signed Bayanmunkh.M

Members of Commission: signed

Client Organizations:

Head of Professional Inspection Office of Zamyn-Uud

free zone

signed Ayush.A

Head oП Governor’s АorkinР Group oП Zamyn-Uud free

zone

signed Togoontumur.Yu

Senior Specialist oП Governor’s АorkinР Group oП Zamyn-Uud free zone

signed Ganbayar.P


signed Delgerjargal.B

Executor Organisation:

EnРineer oП “CHINA CAMC ENGINEERING” LLCsigned Fang Chinjie

Approved by: signed

Deputy Governor of Zamyn-Uud soum, Dornogobi

province

signed Batsaikhan.S

Specialist of land affairs, construction and urban

development at Governor’s OППice oП Zamyn-Uud soum,

Dornogobi province

signed Bayarbold.G


37

ACT ON POWER TRANSMISSION GRID TRASS SELECTION TO CONNECT

SUBSTATION OF ZAMYN-UUD FREE ZONE TO SUBSTATION OF ZAMYN-UUD SOUM

IN A SCOPE OF IMPROVING INFRASTRUCTURE OF ZAMYN-UUD PROJECT

April 06, 2011 Ulaanbaatar city

1 Name of building,

capacity

Power transmission grid to connect a substation with 110/10kB to be

constructed in Zamyn-Uud free zone to a substation of Zamyn-Uud soum

with 110/10kB in a scope of Improving Infrastructure of Zamyn-Uud

project.

Provided general information in the following. It includes:

• Power transmission grid: Length of power grid with

110/10kB- 2.7km

• Power transmission grid: Length of power transmission grid

to connect thermal station to backup grid from Erlian city of

China – 0.84km

2 Location Selected on pursuant to resolution #17 of the Parliament of Mongolia, a

master plan for Zamyn-Uud free zone, a general development plan for

Zamyn-Uud soum, and topography and plotting mapping of relevant

power transmission grid trass are attached.

Power transmission grid will be connected to a substation of Zamyn-Uud

soum with 110/10kB from a substation of Zamyn-Uud free zone with

110/10kB. Total length from coordinates N=4842420.378

E=570090.747 to N=4842574.241 E=570131.707, N=4843597.178

E=570291.135, N=4844354.987 E=571164.531, N=4844332.179

E=571164.531 is 2.7km. /J1-J4 points/

Power transmission grid: 0.84km power transmission grid with 10kB to

connect to backup grid from Erlian city of China for power backup

supply. Following coordinates from N=4841843.981 E=573735.694 to

N=4842022.554 E=573920.254, N= 4842005.117 E=574034.541,

N=4842247.846 E=574241.669, N=4842319.028 E=574267.560,

N=4842376.073 E=574316.082 reaches to thermal station.

3 Land selection Selection on power transmission grid trass is made according to a master

plan for Zamyn-Uud free zone and a general development plan for

Zamyn-Uud soum and took particular account from executor companies

which completed a blueprint and professional organizations.

4 Selected location,

weather average,

previous research

or assessment

Economic feasibility of Improving Infrastructure of Zamyn-Uud project

to be carried out in area of Zamyn-Uud soum and Zamyn-Uud free zone

аas made on initiation oП Governor’s АorkinР Group oП free zone,

supported bв Council oП Sector’s Science and Technique under the Ministry of Road, Transport, Construction and Urban Development and

approved by expertise. All research work relevant to economic

feasibility is included.

5 Mandatory

documents to be

attached

Power transmission substation location, power grid trass topography

and plotting area mapping are attached.


38

6 Commission

assessment

Agreed on that issuing land use right alongside power transmission grid

trass to be connected to substation of Zamyn-uud soum from Zamyn-

Uud free zone in a scope of Improving infrastructure of Zamyn-Uud

project should be ordered by Governor of Zamyn-Uud soum.

ACT APPROVED BY:


Governor of Zamyn-Uud soum, Dornogobi province signed Bayanmunkh.M

Members of Commission: signed

Client Organizations:

Head of Professional Inspection Office of Zamyn-Uud

free zone

signed Ayush.A

Head oП Governor’s АorkinР Group oП Zamyn-Uud free

zone

signed Togoontumur.Yu


signed Ganbayar.P


signed Delgerjargal.B

Executor Organisation:

EnРineer oП “CHINA CAMC ENGINEERING” LLCsigned Fang Chinjie

Approved by: signed

Deputy Governor of Zamyn-Uud soum, Dornogobi

province

signed Batsaikhan.S

Specialist of land affairs, construction and urban

development at Governor’s OППice oП Zamyn-Uud soum,

Dornogobi province

signed Bayarbold.G

ACT ON WATER SUPPLY AND SEWER LINES TRASS SELECTION

(Pipes to be connected to sources from Zamyn-Uud free zone)

September 6, 2011 Ulaanbaatar city

1 Name of building,

capacity

Main sewage line of clean water to connect free zone to main sewage

line of clean water of Zamyn-Uud soum, Dornogobi province, and sewer

and dirty water line from free zone to biological waste water treatment

system. General information is provided in the following. It includes:

• Sewage line of clean water: f250, 2.3km

• Sewage line: f500, 1.7km

• Grey water line: f160, 1.7km

2 Location Selection based on general development plans for Zamyn-Uud free zone

and Zamyn-Uud soum, and “Blueprint oП аater supplв, seаeraРe and water lines of Zamyn-Uud soum” made bв “PrestiРe EnРineerinР” LLC. Trass topography of lines of clean and dirty water and plotting mapping

are attached.

Sewer line of clean water will be connected to main sewer line of clean

water of Zamyn-Uud soum located at coordinates of N=4843836.431


39

E=571699.348 which is 2.3km far from coordinates N=4842346.196

E=570038.883 of Zamyn-Uud free zone.

Sewerage line will run at parallel with sewerage line of Zamyn-Uud

soum and cross through railroad at PK-11116+43,28m in order to be

connected to sanitary sewer located 1.7km far from area of Zamyn-Uud

free zone.

Grey water line will be connected to grey water line of free zone located

beside security building of free zone which is constructed 1.7km far from

biological waste water treatment system. Line trass will run starting from

coordinates at N=4842103.554 E=574211.048 alongside

N=4841981.732 E=574089.735, N=4842011.911 E=573900.624,

N=4841985.791 E=573869.402, N=4841794.041 E=573419.698.

3 Land selection Selection on water supply, sewerage and grey water line trass outside of

region to be connected to sources is made on taking particular account

from executor companies which completed a blueprint and professional

organizations. Representatives consisted of department of water, energy,

signal information at Ulaanbaatar Railway, Road department, Autoroad

department, State-owned Power transmission company of Baganuur and

southern east reРion, “PrestiРe EnРineerinР” LLC, Communication Office of Dornogobi Province and Zamyn-Uud Ө АА visited on the

spot and agreed.

4 Selected location,

weather average,

previous research

or assessment

Economic feasibility of Improving Infrastructure of Zamyn-Uud project

to be carried out in area of Zamyn-Uud soum and Zamyn-Uud free zone

аas made on initiation oП Governor’s АorkinР Group oП free zone,

supported bв Council oП Sector’s Science and Technique under the Ministry of Road, Transport, Construction and Urban Development and

approved by expertise. All research work relevant to economic

feasibility is included.

5 Mandatory

documents to be

attached

Topography of clean and dirty water sewer lines trass and plotting area

mapping are attached.

6 Commission

assessment

Agreed on that issuing land use right alongside of main sewer line of

clean water to connect Zamyn-Uud free zone to Zamyn-Uud soum and

main sewage line to be connected to sanitary sewer to be constructed in

Zamyn-Uud soum from free zone should be ordered by Governor of

Zamyn-Uud soum.

Note: Grey water means recyclable water for factories generated from biological waste water

system.

GOVERNOR’S ORDER OF ZAMYN-UUD SOUM, DORNOGOBI PROVINCE

September 19, 2011 №A/175

Concerning about issuing land use license

Pursuant to clause #1.1 of Article 33 of the Law of Mongolia on Land, a resolution #6/11 of 2010 of the

Citiгens’ Representative MeetinР oП the province and a resolution #09 oП 2011 oП Leaders oП the Citiгens’ Representative Meeting of the soum, it issues an order:


40

• Approve location, size and use purpose of possessing land area of 2nd and 3rd bags of Zamyn-

Uud soum with a purpose of infrastructure power grid to be carried out in a scope of Improving

Infrastructure of Zamyn-Uud project to Governor’s OППice of Zamyn-Uud soum with license

of 15 years period in the appendix.

• Governor of Zamyn-Uud free zone Batsaikhan.D is duly tasked to realize following measures:

• Construct buildings with good appearance in accordance with approved size, keep

environment clean, create green environment with covering 10% of total area with full

utilization and possess land accordingly as stated in the Law of Mongolia on Land and other

relevant regulations.

• Establish a contract of land possession with a specialist of Land Affairs and Urban

Development and possess the land according to its purpose.

• Specialist of Land Affairs, Construction, Urban Development Policy Regulations

Bayarbold.G is charged to take following measures:

• Establish a contract of land possession with above-mentioned companies and take control on

payment issue and possessed land utilization


contractual obligations.

GOVERNOR BAYANMUNKH.M

GOVERNOR’S ORDER OF ZAMYN-UUD FREE ZONE

March 07, 2011 №9 Ulaanbaatar city

Concerning about setting up protection area of engineering building and power grids and issuing land use

right

Pursuant to clause #1.10 of Article 7, clause #3 of Article 7 and clause #2 of Article 16 of the Law on Free

zone and a master plan for Zamyn-Uud free zone. It orders:

• Issue a land use right illustrated in the appendix with a license of 15 years period under a

purpose of engineering building, power grid trass and protection area to be established in a

scope of Improving Infrastructure of Zamyn-Uud project.

• Head of Governor’s АorkinР Group ToРoontumur.Вu is dulв tasked to revise and approveplan and blueprint of the engineering building and power grid and to set up protection area

accurately, and it orders Department of Professional Inspection /Ayush.A/ having in charge

of monitoring on construction process.

GOVERNOR: GANTUMUR.YA

Order appendix №9 of March 7, 2011 of Governor

Land location, use purpose and size

№ Location Use purpose Size /hectare/


41

1 From middle point of - - , - , and -Ё till

between ,Ё- points

Sewer line of clean water 5.95

2 point Clean water pool, pumping

station

3

3 Till middle of -Ё- points, from middle of -Ё points till middle of - points, from middle of Ё-

points till point, between - points

Sewage line 7.75

4 point, in the middle of Ё- points, in the middle

of - points

Sewage line pumping station 1.47

5 From middle of - points till middle of - points, from middle of -Ё points till middle of -

points, from middle of Ё- points till point

Dual thermal grid 5.53

6 Between lines which run from middle of -Ё points till middle of - points, between lines

which run from middle of Ё- points till point

Heat transmission centre 0.45

7 Space between points of -Ё, Ё- , - and - or

in the 3rd and 4th planning sections

Power grid 30.7

8 Space between points of -Ё, Ё- , - and - or

in the 3rd and 4th planning sections

Substation, distributive system 1.76

9 From point till , points (main street of free

zone) Space between points of -Ё, Ё- , - and

- or in the 3rd and 4th planning sections (auto

road same quality as a district auto road)

Auto road, communication 49

Total 105.61

ACT ON TRASS SELECTION OF HEAT TRANSMISSION GRID TO BE CONSTRUCTED IN

ZAMYN-UUD FREE ZONE IN A SCOPE OF IMPROVING INFRASTRUCTURE OF ZAMYN-UUD

PROJECT

(Heat transmission grid to be constructed in Zamyn-Uud free zone)

March 25, 2011 Ulaanbaatar city

1 Name of building, capacity Thermal grid to be constructed in area of Zamyn-Uud free zone.

General information is provided in the following. It includes:

• Centralized heat load: 66GKgl/h

• Length of thermal grid: 2x 4.4km

• Number of heat transmission centre:5

2 Location Selected on pursuant to resolution #17 of the Parliament of

Mongolia and a master plan for Zamyn-Uud free zone, and location

of heat transmission centre, topography of thermal grid trass and

plotting mapping are attached.

Thermal grid- a total of 4.4km dual thermal grid will be constructed

at coordinates of Zamyn-Uud free zone from points of

N=4841837.990 E=573398.581 to points of N=4841668.921 E=

572551.782, N=4841614.148 E=572267.021, N=4841572.561,

E=572024.243, N=4841666.707 E=571796.489, N=4841882.904

E=571305.662, and from points of N=4841614.148 E=572551.782


42

to points of N=4841439.064 E=572301.274, N=4841273.166

E=572320.478, N=4840336.050 E=572428.649, N=4841666.707

E=571796.489, N=4841058.429 E=571525.395, N=4840760.075

E=571392.148, N=4840408.856 E=571235.291.

Heat transmission centre will be located between coordinates of

Zamyn-Uud free zone from points of N=4841614.148

E=572551.782 to N=4841439.064 E=572301.274, N=4841273.166

E=572320.478, N=4840336.050 E=572428.649, N=4841666.707

E=571796.489, N=4841058.429 E=571525.395, N=4840760.075

E=571392.148, N=4840408.856 E=571235.291.

3 Land selection Selection on heat transmission centre and thermal grid trass is being

made according to a master plan of Zamyn-Uud free zone.

Representatives consisted oП Governor’s АorkinР Group oП Zamyn-Uud free zone, Professional Inspection Agency,

Department of Construction and Urban Development and Planning,

“MeРaаatt” LLC and “CHINA CAMC ENGINEERING” visited on the spot and agreed.

4 Selected location, weather

average, previous research or

assessment

Economic feasibility of Improving Infrastructure of Zamyn-Uud

project to be carried out in area of Zamyn-Uud soum and Zamyn-

Uud free zone аas made on initiation oП Governor’s АorkinР Group of free zone, supported bв Council oП Sector’s Science and Technique under the Ministry of Road, Transport, Construction and

Urban Development and approved by expertise. All research work

relevant to economic feasibility is included.

5 Mandatory documents to be

attached

Topography of heat transmission centres and thermal grids trass

and plotting area mapping are attached.

6 Commission assessment Agreed on that issuing land use right alongside of heat transmission

centre and thermal grid trass to be constructed in Zamyn-Uud free

zone in a scope of Improving Infrastructure of Zamyn-Uud project

should be ordered by Governor of Zamyn-Uud free zone.

ACT APPROVED BY:


Head oП Governor’s АorkinР Group oП Zamyn-Uud free zone signed Togoontumur.Yu

Members of Commission

Client organisation:

Head of Department of Professional Inspection of Zamyn-Uud

free zone

signed Ayush.A


43

Senior specialist oП Governor’s АorkinР Group oП Zamyn-Uud

free zone

signed Ganbayar.P

Executor organisation:

EnРineer oП ‘CHINA CAMC ENGINEERING’ LLCsigned Fang Chinjie

EnРineer oП ‘CHINA CAMC ENGINEERING’ LLC signed Tao Ming

Representative oП ‘CHINA CAMC ENGINEERING’ LLC signed Wan Jo

Approved by:

Head of Department of Planning and Research at Construction,

Urban development and Planning of the Capital

signed Ganbat.L

Thermal engineer of Department of Planning and Research at

Construction, Urban development and Planning of the Capital

signed Gerel.D

Electrical engineer of Department of Planning and Research at


signed Gansukh.G

Water supply engineer of Department of Planning and Research

at Construction, Urban development and Planning of the Capital

signed Erdenetsetseg.M

Highway engineer of Department of Planning and Research at


signed Enkhbaatar.P

Communications enРineer oП “MeaРаatt” LLC signed Chultemnambar.Ch

ACT ON TRASS SELECTION OF SUBSTATION, SUBPOINT, DISTRIBUTIVE BUILDING AND

POWER GRID TO BE CONSTRUCTED IN ZAMYN-UUD FREE ZONE IN A SCOPE OF

IMPROVING INFRASTRUCTURE OF ZAMYN-UUD PROJECT

March 25, 2011 Ulaanbaatar city

1 Name of building,

capacity

Substation, subpoint, distributive building and power grid to constructed in area

of Zamyn-Uud free zone ina scope of Improving Infrastructure of Zamyn-uud

project. It includes:

• Capacity of power substation: A unit substation with 110/10kBa (2

x 19mB) alternator

• Distributive building: 10kB x 2 distributive buildings

• Substation capacity: 2*630 kBa x 16 substation

• Cable: 30.8km cable with horizontal cross section till 120mm2-

240mm2 of 10kB

2 Location Selected on pursuant to resolution #17 of the Parliament of Mongolia and a master

plan for Zamyn-Uud free zone, and location of power supply, distributive

building, substation and topography of power grid trass and plotting mapping are

attached.

Substation will be located in the 1st section of free zone planning or at coordinates

of N=4842422.019 E=570055.717, N=4842394.127 E=570115.534,

N=4842334.310 E=570087.641, N=4842348.159 E=570057.942,

N=4842298.906 E=570035.799, N=4842319.409 E=569990.196,

N=4842374.133 E=570014.799, N=4842367.224 E=570030.166.

Distributive building will be located in the 3rd and 4th sections of free zone

planning or at coordinates points from N=4840910.763, E=571189.845 to

N=4840861.585 E=571283.451, from N=4840949.053 E=572096.811 to

N=4840759.248 E=572117.085.

Subpoint will be located in the 3rd and 4th sections of free zone or at coordinates

from N=4841672.976 E=570156.118 to N=4841161.811 E=571302.688, from

N=4840915.015 E=571168.757 to N=4841019.748 E=57028.644, from

N=4840915.015 E=571168.757 to N=4840633.333 E=571039.731, from

N=484043.024 E=570886.976 to N=4840332.353 E=570838.690, from

N=4840132.309 E=570946.429 to N=4840010.664 E=570892.207, from


44

N=4840208.212 E=571397.676 to N=4840132.169 E=571362.166, from

N=4840522.234 E=571308.508 to N=4840496.632 E=571368.055, from

N=4840743.665 E=571545.103 to N=4840831.682 E=571587.290, from

N=4841319.651 E=571371.933 to N=4841177.132 E=571704.618, from

N=4841366.754 E=57275.047 to N=4841594.473 E=571380.997, from

N=4840676.198 E=572126.549 to N=4840430.907 E=572158.929, from

N=4840150.485 E=572192.414 to N=4840176.408 E=572445.976, from

N=4840676.198 E=572126.549 to N=4840726.247 E=572598.431, from

N=4840978.524 E=572337.448 to N=4840986.645 E=572428.12, from

N=4841273.253 E=572311.988 to N=4841445.974 E=572288.457.

Power grid will be located between 1st and 6th sections of free zone or at

coordinates from N=4842335.588 E=570090.747 to N=4842303.676

E=570163.017, from N=4842071.650 E=57006.728, from N=4841672.976

E=570156.118, from N=4841161.811 E=571302.688, from N=4840220.475

E=571840.833, from N=4840949.053 E=572096.811, from N=4840978.524

E=572337.448 to N=4840986.045 E=572428.121, from N=4840978.524

E=572337.448, from N=4841273.253 E=572311.988 to N=4841277.882

E=572363.334, from N=4841273.253 E=572311.988, from 4841455.974

E=572288.457, from N=4841635.173 E=572253.413 to N=4841849.270

E=573340.720, from N=4840676.198 E=572126.549 to N=4840728.247

E=572598.431, from N=4840676.198 E=572126.549, from N=4840439.907

E=572158.929, from N=4840150.485 E=572192.414 to N=4840176.408

E=572445.976, from N=4840150.485 E=572192.414 to N=4840106.191

E=571837.702, from N=4841161.811 E=571302.688, from N=4841319.651

E=571371.933, from N=4841366.754 E=574275.047 to N=4841594.473

E=571380.997, from N=4841319.651 E=571371.933 to N=4841177.132

E=571704.618, from N=4841161.811 E=571302.688, from N=4840910.763

E=571189.845, from N=4840861.585 E=571283.451, from N=4840797.059

E=571427.758, from N=4840743.665 E=571545.103 to N=4840831.682

E=571587.290, from N=4840797.059 e=571427.758, from N=4840522.234

E=571308.508 to N=4840496.632 E=571366.055, from N=4840522.234

E=571308.508, from N=4840404.013 E=571249.034, from N=4840298.360

E=571204.390, from N=4840208.212 E=571397.676 to N=4840132.169

E=571362.166, from N=4840910.763 E=571189.845, from N=4840915.015

E=571168.757, from N=4840949.8554 E=571180.513 to N=4841019.748

E=571028.644, from N=4840915.015 E=571168.757, from N=4840633.333

E=571039.731, from N=4840414.570 E=570940.394, from N=4840438.024

E=570886.975, from N=4840332.353 E=570838.690, from N=4840204.116

E=570784.111, from N=4840132.309 E=570946.429 to N=4840010.664

E=570892.207 and total length of power grid is 30.8km.

3 Land selection Selection on power grid trass is being made according to a master plan for Zamyn-

Uud free zone and selection on out of zone power grid to be connected to sources

is being made on taking a particular account from executor companies which

completed a blueprint and professional organizations.Members of the Working

Commission Group established bв Governor’s order oП Zamyn-Uud free zone

visited on the spot and agreed.

4 Selected land,

weather average,

previous research

or assessment

Economic feasibility of Improving Infrastructure of Zamyn-Uud project to be

carried out in area of Zamyn-Uud soum, Dornogobi province and Zamyn-Uud

free zone аas made on initiation oП Governor’s Working Group of free zone,

supported bв Council oП Sector’s Science and Technique under the Ministrв oП


45

Road, Transport, Construction and Urban Development and approved by

expertise. All research work relevant to economic feasibility is included. New

power building and grid will be constructed within area of Zamyn-Uud free zone.

5 Mandatory

documents to be

attached

Location of thermal power station, topography of thermal grid trass and plotting

area mapping are attached.

6 Commission

assessment

Agreed on that issuing land use right alongside of substation, subpoint,

distributive building and power transmission grid trass to be constructed in

Zamyn-Uud free zone in a scope of Improving Infrastructure of Zamyn-Uud

project should be ordered by Governor of Zamyn-Uud free zone.

ACT APPROVED BY:


Head oП Governor’s АorkinР Group oП Zamyn-Uud free zone signed Togoontumur.Yu

Members of Commission

Client organisation:

Head of Department of Professional Inspection of Zamyn-Uud

free zone

signed Ayush.A

Senior specialist oП Governor’s АorkinР Group oП Zamyn-Uud

free zone

signed Ganbayar.P

Executor organisation:

EnРineer oП ‘CHINA CAMC ENGINEERING’ LLCsigned Fang Chinjie

EnРineer oП ‘CHINA CAMC ENGINEERING’ LLC signed Tao Ming

Representative oП ‘CHINA CAMC ENGINEERING’ LLC signed Wan Jo

Approved by:

Head of Department of Planning and Research at Construction,

Urban development and Planning of the Capital

signed Ganbat.L

Thermal engineer of Department of Planning and Research at


signed Gerel.D

Electrical engineer of Department of Planning and Research at


signed Gansukh.G

Water supply engineer of Department of Planning and Research

at Construction, Urban development and Planning of the Capital

signed Erdenetsetseg.M

Highway engineer of Department of Planning and Research at


signed Enkhbaatar.P

Communications enРineer oП “MeaРаatt” LLC signed Chultemnambar.Ch

GOVERNOR’S ORDER OF ZAMYN-UUD

FREE ZONE

December 18, 2013 Number: A/42 Ulaanbaatar

CONCERNING A GUARANTEE ON LAND POSSESSION RIGHT

Pursuant to clause


46

Pursuant to clause #1 of Article33 of the Law on Energy and clause #1.10 of Article 7 and clause #2 of

Article 16 of the Law on Free Zones and Master Plan of Zamyn-Uud Free zone, it orders;

• TransПer land oаnership oП аater, heat and seаeraРe buildinРs oП “Zamyn-Uud” FreeEconomic Trade to reРional Governor’s АorkinР Group аith license oП 40 вears inaccordance with water, heat, sewerage and power grid network trass and with its purpose as

demonstrated on attached appendixes.

• Set up a composition oП Governor’s АorkinР Group /Baвarkhuu.Kh/ havinР in charРe oПcarrying out contractual conditions on relevant regulations to possessing, using and protecting

environment properly and to land ownership.

• In connection аith an issuance oП this Order, it invalidates the Governor’s Order #19 oП Maв24, 2011.

GOVERNOR: BATSAIKHAN.D


47

Appendiб 1 oП Governor’s Order oП Zamyn-Uud Free zone-

List of residents and companies to possess land in Zamyn-Uud Free zone

LIST OF RESIDENTS AND COMPANIES TO POSSESS LAND IN ZAMYN-UUD FREE ZONE Owner Registration

number Land size Type Land

purpose Land locattion Unit number Period

1 Zamyn-Uud Free zone 9129154 560 Possess Water and Heat Transmission Center

Zamyn-uud soum Dornogobi province

19316127571841

40



19189821571840

40



19184431571840

40



19365279572841

40



19486343572840

40

1 Zamyn-Uud Free zone 9129154 455.9 Possess Sewage lift station


19178354571840

40

2 Zamyn-Uud Free zone 9129154 455.9 Possess Sewage lift station


40

1 Zamyn-Uud Free zone 9129154 20300.0 Possess Clean water pumping station


19000274570842

40


48

Appendix 2: List of People Met

A. Zamyn-Uud Local Government

1. Ms. Batsaikhan, Director of Social Development Policy Department, Zamyn-Uud Soum2. Ms. Uuganbayar, Child Protection Officer. Enkhjargal, Officer in charge of shelter3. Kindergarten Director, Zamyn Uud Soum4. Ms. Munkhtsetseg. B, Officer at Governor Office of 3rd Bagh, Zamyn-Uud5. Ms. Otgonchimeg, Health, Gender and Social Development Specialist, Zamyn-Uud Soum6. School No. 2 Director, Zamyn-Uud Soum7. Ms. Oyunsuren, Hospital Director, Zamyn-Uud Soum8. Ms. Urantsatsral, Labor Department Director, Zamyn-Uud Soum9. Mr. Bat-Orgil, Lands Officer, Zamyn-Uud Soum

B. Zamyn-Uud Free Zone Governor’s Office1. Mr. Ganbold, Land Management Specialist, Zamiin Uud Governor Office2. Mr. Amartuvshin, Lands Officer, Zamyn-Uud Free Zone Governor’s Office

C. National Agency1. Border Control Officer, Zamyn-Uud

D. Non-Government Organizations & Community Based-Organizations1. Mr. Uuganbayar, Director of Invisible Person (NGO)2. Ms. Masha.G, Director of “Gobiin Joloo” Taxi Driver’s Association3. Ms. Saran and Ms. Gantuul, LIOS Women NGO4. Ms, Saruulsaikhan, President, Mongolian Women’s Association in Zamiin Uud5. Ms. Tsogzolmaa and Kshigbayar, Program Managers, Mongolia Gender Equality Center, Ulaanbatar

E. Informal Traders and Taxi Drivers1. Ms. B, Single mother with four children. Informal Trader or “Charger”2. Driver #13. Driver # 24. Fruit Seller/Trader #15. Fruit Seller/Trader # 26. Woman Trader #3

F. Investors1. Mr. Dugursuren Raychaan, Free Zone Investor2. Ms. Delgersaikhan, Free Zone Investor3. Mr. Jargalsaikhan, Free Zone Investor4. Mr. Ganbold, Free Zone Investor

G. Development Partner1. Ms. Zuzana Jankechavo, Programme Director, Ulaanbator2. Ms. Yona, Communication Officer, Ulaanbator


49

Appendix 3: Involuntary Resettlement Screening Checklist

Involuntary Resettlement Impact Categorization Checklist Date: September 2019

Probably Involuntary Resettlement Effects

Yes No Not

Known Remarks

Involuntary Acquisition of Land

• Will there be landacquisition?

X

Is the site for land acquisition known? N/A Not applicable as the government will not acquire private lands. All lands within the 900 ha ZUFZ are government lands leased to private investors. All infrastructure/utilities supporting the operation of the FZ are within the 900 ha site. However, there are a few infrastructures built outside the FZ including waste water treatment and heating plant.

Is the ownership status and current usage of land to be acquired known?

X Government-owned (under the ZUFZGO and the Ministry of Construction and Urban Development)

Will easement be utilized within an existing Right of Way (ROW)?

X Current and planned new utilities to connect the investor slots will utilize the ROW.

Will there be loss of shelter and residential land due to land acquisition?

N/A Vacant desert government sites (infrastructure).

Will there be loss of agricultural and other productive assets due to land acquisition?

N/A Vacant desert areas.

Will there be losses of crops, trees, and fixed assets due to land acquisition?

N/A The FZ area is on an desert, vacant lands.

Will there be loss of businesses or enterprises due to land acquisition?

N/A

Will there be loss of income sources and means of livelihoods due to land acquisition?

N/A

Will people lose access to natural resources, communal facilities and services?

N/A

If land use is changed, will it have an adverse impact on social and economic activities?

X

Will access to land and resources owned communally or by the state be restricted?

X

Information on Displaced Persons: N/A

Any estimate of the likely number of persons that will be displaced by the Project? If yes, approximately how many?

[ ] No [ ] Yes

Are any of them poor, female-heads of households, or vulnerable to poverty risks? [ X] No [ ] Yes

Are any displaced persons from indigenous or ethnic minority groups? [ X ] No [ ] Yes


50

Appendix 4 Indigenous Peoples Impact Screening Checklist

KEY CONCERNS YES NO

NOT KNOWN

Remarks

A. Indigenous Peoples Identification

1. Are there socio-cultural groups present inor use the project area who may beconsidered as "tribes" (hill tribes, schedulestribes, tribal peoples), "minorities" (ethnic ornational minorities), or "indigenouscommunities" in the project area?

X The ZUFZ is within the border town of Zamyn-Uud next to the Autonomous Region of Inner Mongolia, China. The population are from all over Mongolia who moved to this town to find income opportunities from increasing border trade these urbanized people, do not display a distinct traditional lifestyle that could be considered IP under the SPS.

2. Are there national or local laws or policiesas well as anthropological researches/studiesthat consider these groups present in or usingthe project area as belonging to "ethnicminorities", scheduled tribes, tribal peoples,national minorities, or cultural communities?

X

3. Do such groups self-identify as being partof a distinct social and cultural group?

N/A

4. Do such groups maintain collectiveattachments to distinct habitats orancestral territories and/or to the naturalresources in these habitats and territories?

N/A

5. Do such groups maintain cultural, economic,social,and political institutions distinct from thedominant society and culture?

N/A

6. Do such groups speak a distinct language ordialect?

N/A

7. Has such groups been historically,socially and economically marginalized,disempowered, excluded,and/or discriminated against?

N/A

8. Are such groups represented as"Indigenous Peoples" or as "ethnic minorities"or "scheduled tribes" or "tribal populations" inany formal decision-making bodies at thenational or local levels?

N/A

B. Identification of Potential Impacts

9. Will the project directly or indirectlybenefit or target Indigenous Peoples?

X The project targets all Mongolian population and not a particular ethnic population of the society Mongolian society.

10. Will the project directly or indirectly affectIndigenous Peoples' traditional socio-culturaland belief practices? (e.g. child-rearing, health,education, arts, andgovernance)

X There are no identified IPs under the ADB definition in the area.

11. Will the project affect the livelihoodsystems of Indigenous Peoples? (e.g.,food production system, natural resourcemanagement, crafts and trade,employment status)

N/A

12. Will the project be in an area (land orterritory)occupied, owned, or used by IndigenousPeoples, and/or claimed as ancestral domain?

N/A

C. Identification of Special RequirementsWill the project activities include:

N/A


51

13. Commercial development of the culturalresources and knowledge of IndigenousPeoples?14. Physical displacement from traditional orcustomary lands?

KEY CONCERNS YES NO

NOT KNOWN

Remarks

15. Commercial development of naturalresources (such as minerals, hydrocarbons,forests, water, hunting or fishing grounds) withincustomary lands under use that would impactthe livelihoods or the cultural, ceremonial,spiritual uses that define the identity andcommunity ofIndigenous Peoples?

N/A The ZUFZ is on a government land located on a previously restricted border security area.

16. Establishing legal recognition of rights tolands and territories that are traditionally ownedor customarilyused, occupied or claimed by indigenous peoples?

N/A

17. Acquisition of lands that are traditionallyowned or customarily used, occupied orclaimed by indigenouspeoples ?

N/A


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