Western Regional Road Corridor Investment Program (RRP MON 41193) Environmental Assessment and Review Framework September 2011 Mongolia: Western Regional Road Corridor Investment Program Prepared by the Ministry of Road, Transport, Construction and Urban Development for the Asian Development Bank. The environmental assessment and review framework 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 of this website.
Table of Contents A. Introduction 1 1. Project MFF Modality 1 2. Environmental Assessments Completed to Date 1 B. Assessment of Legal Framework and Institutional Capacity 2 1. EIA Law and Process 2 2. Legal Framework and Institutional Capacity 2 3. Capacity of Department of Roads 3 C. Anticipated Environmental Impacts 4 1. Tranche 1 4 2. Tranches 2 and 3 4 D. Environmental Assessment for Subprojects and/or Components 4 1. Tranche 1 5 2. Tranche 2 and Tranche 3 5 3. Harmonization with Government of Mongolia Environmental Assessment Requirements 5 4. Environmental Management of Individual Tranches 5 E. Consultation, Information Disclosure, and Grievance Redress Mechanism 6 F. Institutional Arrangement and Responsibilities 7 G. Monitoring and Reporting 7
A. Introduction 1. The Program will be implemented using a multitranche financing facility (MFF) modality in three tranches. The executing agency is the Ministry of Roads, Transportation, Construction and Urban Development (MRTCUD) and the implementing agency is the Department of Roads (DOR). This framework describes the overall approach used for the environmental assessment and review. 1. Project MFF Modality 2. The Western Regional Road Corridor Investment Program (WRRCIP) aims to promote inclusive economic growth by enhanced local and regional connectivity in the remote western region of Mongolia. The project outcome will be more accessible and efficient transport in the project area and between countries. This is expected to contribute to the overall socioeconomic development and poverty reduction in the region. 3. The WRRCIP will be implemented in three tranches using the MMF modality. Tranche 1 of the WRRCIP involves the development of the section of the road from Baga Ulaan Davaa to Mankhan (103.3 kilometers [km]). Tranche 2 is the development of the section of the road from Khovd to Khashaat Pass (103.9 km). Tranche 3 is the development of the section of the road from Khashaat Pass to Buratiin Davaa (44 km) and the section from Ulaanbaishint to Tsaganuur (25.8 km). 2. Environmental Assessments Completed to Date 4. The Western Regional Road was originally planned as a single project consisting of a 743 km road between Yarant (bordering the People s Republic of China) and Ulaanbaishint (bordering the Russian Federation). The project was then processed as a two-phase project with as follows: (i) Phase I: PRC border to Khovd; and (ii) Phase II: Khovd to Russian border. 5. In May 2007, an ADB project preparation technical assistance (PPTA) conducted an environmental assessment on the entire western regional road corridor. Reports were produced in English and Mongolian. In August 2007, the summary environmental impact assessment (EIA) for Phase I (Mongolia-PRC border to Khovd (431.2 km) was disclosed on ADB website. In September 2007, the Mongolian government approved the EIA for the entire corridor. 6. In 2010, the EIA report for a Phase II project (Khovd to Buraatyn Davaa and Tsaganuur to Russian border) was prepared to update the EIA work to ensure consistency with ADB s Safeguards Policy Statement (2009). In August 2010, this EIA was disclosed on the ADB website. Subsequent to this, the government informed ADB that supplemental financing will be required to complete Phase I. The government now requests that the proposed MFF tranche 1 be used to complete the Phase I project. 7. In July 2011, an EIA Report for tranche 1, which is comprised of the Baga Ulaan Davaa Mankhan section of the road, was prepared to update previous EIA work and to ensure consistency with ADB s Safeguard Policy Statement (2009). This report was disclosed in August 2011 and updated in September 2011, including a revised environmental management plan (EMP).
2 B. Assessment of Legal Framework and Institutional Capacity 1. EIA Law and Process 8. The EIA requirements of Mongolia are regulated by the Law on Environmental Impact Assessment. The type and size of the planned activity determine whether the responsibility lies with the Ministry of Nature, Environment and Tourism (MNET) or aimag government. There are two types of EIAs defined in the Law: General EIA and Detailed EIA. 9. To initiate a General EIA, the project implementer submits a brief description of the project to the Ministry of Nature, Environment and Tourism or local authority, including the feasibility study, technical details, and drawings. The General EIA will lead to one of four conclusions: (i) no detailed EIA is necessary, (ii) the project may be completed pursuant to specific conditions, (iii) a detailed EIA is necessary, or (iv) project cancellation. The General EIA does not involve any cost to the proponent and usually takes up to 12 days. 10. The scope of the detailed EIA is defined by the General EIA. The detailed EIA must contain the following chapters: (i) environmental baseline data; (ii) project alternatives; (iii) recommendations for minimizing, mitigation and elimination of impacts; (iv) analysis of extent and distribution of adverse impacts and their consequences; (v) risk assessment, (vi) environmental protection plan; (vii) environmental monitoring program; and (viii) opinions of residents on whether the project should be implemented. As per Mongolian Law on Environmental Impact Assessment requirements MNET after a General EIA has determined that the WRRC Project warrants a Detailed EIA, which is similar in content and scope to an EIA required for an ADB Category A Project. 2. Legal Framework and Institutional Capacity1 11. The Law on Environmental Impact Assessment (EIA) was promulgated in 1998, amended in 2001 and 2009 to regulate environmental protection practices, to prevent ecological misbalance through uses of natural resources, and to assess environmental impacts. There are four regulations in place to implement the Law on EIA. The existing four regulations are (i) Regulation on Monitoring EIA Implementation, (ii) Regulation on EIA Evaluation, (iii) Regulation on Formulating Environmental Management Plan and Environmental Monitoring Program (EMP), and (iv) Regulation on EIA Committee. 12. Although EIA legislation is in place, there is a gap between the EIA law and its implementation. Existing regulations lack clarity, in particular with respect for procedures for implementing some of the key provisions of the EIA Law. These weak regulations have resulted in a weak enforcement mechanism and poor environmental management practices. The EIA practice during the past years shows that projects do not fully comply with EMPs. To address this situation the government is proposing new mechanisms to ensure for implementation of EMPs. 13. Concerns over the limitation project level EIAs, have led to recommendations for strategic environmental assessments to address potential adverse impacts on habitat and biodiversity at the landscape and regional scales. The government attempted to adopt SEA to 1 Based on background information provided in: MON: Improving Legal and Regulatory Framework for Environmental Impact Assessment. Approved Subproject Proposal under ADB TA 7566: Strengthening and Use of Country Safeguard Systems.
3 ensure environmental consequences, considerations identified and incorporated into the regional policy and assessments for various sectors. However, lack of experiences and technical knowledge hindered the government s efforts. In addition, a new regulation on public participation is needed to regulate issues concerning public participation in the EIA process. The current EIA Law has a provision on the involvement of citizens and government agencies in the EIA process. However, it is not being implemented due to absence of a regulation to provide details on how, in which stage, and to what degree affected people should participate in EIA processes. 14. To address these and other shortcomings, the EIA Law is being revised. The revised Law on EIA is expected to be passed by Parliament in 2011. According to revised EIA law, new development programs and plans will require environmental assessments such as SEA, and EIA will include recommendations for projects to use environment friendly methods and technologies. Also, the new EIA law will include considerable changes in sanctions regarding insufficient quality of EIA and compliance with EMPs. After effectiveness of the new EIA law, four existing regulations need to be revised and combined into two regulations that are (i) Regulation on EIA procedures and (ii) Regulation on Formulating Environmental Management Plan. In addition to existing regulations, three new regulations need to be formulated which are (i) Regulation on Strategic Environmental Assessment; (ii) Regulation on Public Participation in EIA Processes; and (iii) Regulation on Making a Deposit for Environmental Restoration. 15. ADB TA 7566: Strengthening and Use of Country Safeguard Systems is providing technical assistance to Government of Mongolia to assist with development of these new regulations for the EIA Law. 3. Capacity of Department of Roads 16. The capacity of the DOR to undertake responsibilities for carrying environmental management and monitoring is limited, particularly in Western Mongolia. There is little experience in the implementation and management of EMPs and skilled technical staff is not available at either the national or aimag levels. In the short term, this limitation is being addressed through a combination of the environmental supervision being undertaken by the environmental staff of the Supervision Engineer, already under contract for Phase 1 of the western regional road corridor (i.e., all sections from Yarant to Khovd); and proposed Project consultants to be recruited to monitor the implementation of the EMP and social development action plan (SDAP). 17. In the medium term, the environmental and social management system capacity of the DOR staff could to be strengthened. PPTA consultants have recommended a number of areas where DOR should be strengthened. For example, basic capacity building is needed for methods and procedures for environmental management appropriate for road development activities. This should cover aspects of environmental monitoring, especially protected areas issues, and wildlife management. Training is recommended for the DOR construction supervision staff, environmental/social officer, selected contractor personnel, and environmental staff at the local government level. Capacity building recommendations also include joint environmental inspections. DOR staff and MNET will regularly undertake joint inspections of the environmental aspects of the Project, and include the results of the inspections in the project quarterly reports submitted by DOR through MRTCUD to ADB.
4 18. However, in the long term, an environmental and social management system, based on international best practices, needs to be established within the DOR. Establishment of an environmental and social management system within DOR would require it to establish: (i) environmental and social policies; (ii) screening, categorization, and review procedure; (iii) organizational structure and staffing; including skills and competencies in environmental and social areas; (iv) training requirements; and (v) monitoring and reporting procedures C. Anticipated Environmental Impacts 1. Tranche 1 19. The dominant land use in project area is livestock grazing by semi-nomadic herdsmen, which make use of extensive summer and winter pasture throughout the project area. Currently, there are multiple tracks crossing through the pasturelands. Short sections of the proposed road to be constructed through narrow passes, are adjacent to a water-courses, where there are risks of rock falls and flash flooding. The potential impacts of the Project include impacts on the endangered Saiga antelope as the road embankment and road traffic may act as barrier to movement. The Saiga antelope is a target for illegal hunting and wildlife trade. There are ongoing efforts by the Government, local NGOs, and national NGOs to control illegal hunting and trade. The proposed road passes through the buffer zone of the Mankhan Nature Reserve, which was created for protection of the Saiga populations. The proposed road construction is permitted under the Mongolian Law on Specially Protection Areas. Livestock movements across the road may similarly be hindered by the road and road traffic. The herdsmen have an established pattern of use of the project area especially in winter and spring. There is a concern that the construction activities may impact a few gers camped within project area. Concerns include dust contamination of water sources, noise, and the inference with local traffic. Concerns for water resources are limited to a few areas where streams cross the road or are adjacent to the road in narrow canyons. It should be noted that most streams are ephemeral, i.e., they do not have year round flows. The main concern for water quality is for temporary increases in turbidity during construction and accidental contamination from oil, grease, fuel, and other toxic material associated with construction equipment. 2. Tranches 2 and 3 20. The potentials impacts under tranche 2 and tranche 3 are similar to those expected under tranche 1. The topography is different; however, the pattern of land use is similar. Key environment features are different. Tsambagarav National Park, although 11 km away from the road, may be indirectly affected by the proposed project. Similarly, Tolbo Lake, an important Bird Area, may also be indirectly affected as the alignment of an associated project (road section which is 20 km away and is funded by another financier) passes within 400 meters of the lake. D. Environmental Assessment for Subprojects and/or Components 21. The proposed assessment procedures are based on OM D14 on Multitranche Finaincing Facilities and the Safeguard Policy Statement (2009) paragraphs 9 and 10, Appendix 4: Special Safeguard Requirements for Different Finance Modalities.
5 1. Tranche 1 22. Tranche 1 has been categorized as category A. The EIA report for the road section to be funded under tranche 1 has been completed and was disclosed on the ADB Website in August 2011 and updated in September 2011, including a revised EMP. 2. Tranche 2 and Tranche 3 23. The procedures for future processing of the environmental assessment of tranche 2 and tranche 3 will be: (i) (ii) (iii) (iv) (v) The results of implementation of the environmental safeguards of prior tranches will be reviewed and disclosed; The new tranche will be screened and categorized by ADB, in consultation with the EA/IA. However, based on EIA work completed to date, it is anticipated that both tranche 2 and tranche 3 will be classified as category A; Based on the category, the appropriate level of environmental assessment, including preparation of EIA reports and EMPs will be undertaken consistent with the Safeguard Policy Statement (2009), Appendix 1. Safeguard Requirement 1: Environment; All necessary due diligence of EA reports and EMPs will be undertaken by ADB through EARD. For tranches classified as category A, RSES will review all EIA reports and EMPs; and All necessary public consultation and disclosure will be conducted consistent with the Safeguard Policy Statement (2009). 3. Harmonization with Government of Mongolia Environmental Assessment Requirements 24. The Government of Mongolia approved the EIA for the entire corridor in 2007, which includes tranche 1. This approval is valid for five years and expiring in 2012. 25. Tranches 2 and 3. For tranches 2 and 3, which will occur after the validity of the EIA report expires, the Mongolian EIA report for the entire corridor will have to be updated. The executing agency (EA)/implementing agency (IA) will have to submit an updated project description noting any changes from the original project description. The Ministry of Nature, Environment, and Tourism will make a General Assessment including screening to determine whether a detailed environmental assessment is required. Based on the results of General Assessment and screening, the EA/IA will undertake the appropriate degree of environmental assessment study and reporting will be undertaken. 26. During the screening stage, the EA/IA will coordinate its activities with ADB s due diligence process to ensure, to the extent possible and practical, consistency between the ADB categorization process and the Mongolian General Assessment. This coordination is to continue throughout the environmental assessment and review of each tranche. 4. Environmental Management of Individual Tranches 27. An EMP will be prepared for each individual tranche. The EMP will be prepared consistent with Safeguard Policy Statement (2009), Appendix 1. Safeguard Requirement 1: Environment, Annex to Appendix 1, Section I. The EA/IA will report on the implementation of
6 environment management plans though semi-annual Safeguards Monitoring Reports to be submitted to ADB. 28. The environment management plan for tranche 1 has been prepared. Under that plan, the Supervision Engineer is responsible for review of the environmental management plan implementation by the contractors. The Supervision Engineer is to report on the environmental management implementation status, including on environmental surveillance and monitoring results, to the Project Implementation Unit of the Implementing Agency. It is anticipated this function will also be included in the EMPs for tranche 2 and tranche 3. E. Consultation, Information Disclosure, and Grievance Redress Mechanism 29. Public consultation and disclosure activities consistent with the ADB Safeguard Policy Statement (2009) have been completed for tranche 1. The draft EIA report was disclosed in August 2011 and updated in September 2011, including a revised EMP. For tranche 2 and tranche 3, all necessary public consultation and disclosure requirements will be conducted consistent with the Safeguard Policy Statement (2009). 30. A Grievance Redress Mechanism (GRM) has been designed and incorporated into the tranche 1 EIA report and its EMP. This GRM will serve as model for the GRMs for other tranches. 31. For tranche 1 of the Project, soum level social and environmental monitoring units will be established to handle environment issues and concerns related to the project and the implementation of SDAP. These soum level units will work to strengthen the consultation and participation of local communities and stakeholders in the different stages of project implementation. The DOR will hire qualified staff, one at PIU level and three at soum level, who will be responsible for implementation, monitoring and reporting on the SDAP, the EMP and managing the Public Complaints Centers for the Grievance Redress Mechanism. 32. The SDAP has been formulated in consultation with the EA, IA and the local stakeholders and communities. SDAP will focus not only on the livelihood enhancement activities, but will also aim to strengthen the consultation and participation of local communities and stakeholders. Women will be the key beneficiaries of the SDAP. Special emphasis will be given to women s participation in skill training and enterprise development programs. The SDAP will also include components of HIV/AIDS awareness and information on human trafficking prevention. Under the SDAP, the Project will adopt the following measures to disseminate information to the communities and households living near/around the project site. (i) (ii) Community/Households meetings The Project, with the help of local staff at soum level, will reach out to households living along the project corridor so as to provide them with timely information about the construction activities, schedules as well as assess if the construction will entail any negative impacts on these households. Such community meetings will also be used to plan various social development activities and to review the effectiveness of various interventions under implementation. Meetings will be planned in consultation with local government and local NGOs taking into account the seasonally movements of herders. Distribution of Pamphlets. The DOR will prepare pamphlets and brochures related to the project, sharing project information, details of the road section and the social and environment mitigation measures. These pamphlets and
7 (iii) brochures will be distributed to the Project communities and HHs and other key stakeholders. All dissemination material will be prepared in local language easily understandable to the local communities. Information Available at Soum level. The soum environmental and social monitoring unit will act as project information dissemination mechanism. It will have all project related material and information. The local people will be encouraged to contact this unit for Project information as well as for submitting their suggestions, if any. F. Institutional Arrangement and Responsibilities 33. As described above, requirements for preparation, submission, review, and clearance of environmental assessment reports tranche 1 have been completed. 34. ADB through EARD will have responsibility for: (i) Ensuring the results of the implementation of environmental safeguards for prior tranches are reviewed and disclosed; (ii) Screening and categorization of tranche 2 and tranche 3; (iii) Ensuring that the appropriate level of environmental assessment will be undertaken is consistent with the Safeguard Policy Statement (2009); (iv) (v) Conducting due diligence of EIA reports and EMPs; and Ensuring that all necessary public consultation and disclosure requirements are completed consistent with the Safeguard Policy Statement (2009). 35. The EA/IA will have responsibility for ensuring the necessary assessment, review, and clearance, consistent with Mongolian EIA requirements, for road sections to be funded under tranches 2 and 3. 36. No additional staff is required for administration of the environmental assessment and review framework. However, for tranche 2 or tranche 3, consultant services may be required to conduct due diligence and prepare necessary documentation. 37. Notwithstanding the capacity limitations of the DOR described in section B above, there is no proposed program of strengthening needed to implement the Environmental Assessment and Review Framework. The environmental assessment and review of tranche 1 has been completed. Under tranche 1 and consultants will be used to assist the DOR in the supervision and monitoring of the EMP. The environmental assessment and review procedures (see Section D above) will not be triggered until preparation of tranche 2 begins in 2013. At that time, it is anticipated that consultants will be recruited to prepare the necessary environmental assessment documentation in accordance with these procedures. G. Monitoring and Reporting 38. For each individual tranche, the MRTCUD will report on implementation of environmental safeguards in semi-annual safeguard monitoring reports. In addition, the MRTCUD is to provide a final report to ADB on the implementation of environmental safeguards under tranche 1 and tranche 2 prior to approval of the periodic financing requests of subsequent tranches. 39. For each individual tranche, ADB through EARD will review and comment on semiannual reports on the implementation of environmental safeguards. In addition, ADB through
8 EARD will review and disclose the results of the implementation of the environmental management for tranche 1 and tranche 2 prior to approval of the periodic financing requests of subsequent tranches.