Voluntary Land Swapping Plan · Voluntary Land Swapping Plan June 2018 Mongolia: Ulaanbaatar Green...

Voluntary Land Swapping Plan

June 2018

Mongolia: Ulaanbaatar Green Affordable Housing

and Resilient Urban Renewal Sector Project

Prepared by Municipality of Ulaanbaatar for the Asian Development Bank. This is an updated version of the draft originally posted in May 2018 available on https://www.adb.org/projects/documents/mon-49169-002-rp-0

CURRENCY EQUIVALENTS (as of 28 June 2018)

Currency unit – togrog (MNT)MNT1.00 = $0.00041

$1.00 = MNT2,465.0

ABBREVIATIONS

ADB – Asian Development Bank

AHURP – (Green) Affordable Housing and (Resilient) Urban Renewal Project

GOM – Government of Mongolia

GRM – grievance redress mechanism

HH – households

HOA – homeowners association

MUB – Municipality of Ulaanbaatar

PMO – project management office

VLSP – voluntary land swapping plan

NOTE

In this report, "$" refers to US dollars

This updated voluntary land swapping plan 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.

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.

Voluntary Land Swapping Plan MON: Ulaanbaatar Green Affordable Housing

and Resilient Urban Renewal Project

JUNE 2018

ABBREVIATIONS

ADB Asian Development Bank

AHURP (Green) Affordable Housing and (Resilient) Urban Renewal Project

GOM Government of Mongolia

GRM Grievance redress mechanism

HH households

HOA Homeowners association

MUB Municipality of Ulaanbaatar

PMO Project Management Office

VLSP Voluntary Land Swapping Plan

TABLE OF CONTENT

Contents

I. INTRODUCTION 5

II. PROJECT DESCRIPTION 6

III. SCOPE OF LAND SWAPPING 14

A. Census of potential beneficiary households (per different categories) 14

B. Inventory of Land 15

C. Inventory of Structure 19

D. Inventory of Businesses 20

IV. LAND AND ASSETS VALUATION 21

A. Methodology used 21

B. Land and Assets Valuation 24

V. PRINCIPLES AND PROCEDURE OF LAND SWAPPING 31

A. Minimum Housing Size 31

B. Property Ownership and Management 31

C. Land Swapping Procedures 31

D. Written Record of Apartment Unit Ownership and Housing Arrangements 33

E. Maximizing Flexibility to Plot Owners 33

F. Involuntary Resettlement and Project Resettlement Framework 34

VI. SOCIO-ECONOMIC INFORMATION AND PROFILE OF BENEFICIARY

HOUSEHOLDS 35

A. SES Scope and Methodology 35

B. Beneficiary Households Socio-Demographic Profile 36

C. Beneficiarв Households’ Income and Eбpenditure 42

D. Housing and Dwelling conditions 44

VII. POVERTY AND VULNERABILITY 46

A. Poverty analysis in Core Component 46

B. Vulnerability 48

C. Income/Livelihood Support Measures to vulnerable households 51

VIII. AFFORDABILITY AND WILLINGNESS TO PARTICIPATE 54

A. Affordability of proposed housing 54

B. Operation and Maintenance 63

C. Affordability of utilities 64

D. Willingness to participate 65

E. Impact of the Project on Households 72

IX. ACCESS TO HOUSING MECHANISM 77

A. Access to Market Rate Housing 78

X. POTENTIAL IMPACTS AND RISKS DURING TRANSITIONAL PERIOD AND

MITIGATION MEASURES 81

XI. PARTICIPATION, CONSULTATION AND INFORMATION DISCLOSURE 87

A. CPP Phase 1 87

B. CPAP Phase 2 94

C. CPAP Phase 3 97

D. Potential Issues and Proposed Solutions 101

E. Disclosure of the VLSP 102

XII. GRIEVANCE REDRESS MECHANISM 103

XIII. INSTITUTIONAL ARRANGEMENTS AND IMPLEMENTATION 106

A. Project Steering Committee 106

B. Executing entity/Implementing Entity 106

C. The PMO and PIU for public investment 107

D. NOSK 107

E. Khoroo Administration 108

F. The Development Bank of Mongolia and PIU for Private Investments and Green

Banking 108

G. Project Implementation Consultants 109

XIV. BUDGET AND FINANCING 111

XV. IMPLEMENTATION SCHEDULE 112

XVI. MONITORING AND EVALUATION 117

ATTACHMENTS:

Attachment 1: Land and Assets Valuation Methodologв

Attachment 2: Land and Assets Valuation Eбample and Booklet

Attachment 3: List of Potential Beneficiarв Households

Attachment 4: Vulnerable Households

Attachment 5: List of Community Consultations of Phase 1 Attachment 6: Grievance Action Form

I. INTRODUCTION

1. The Ulaanbaatar Green Affordable Housing and Resilient Urban Reneаal Project (Project) аill implement a demand-driven approach, based on a voluntarв land sаapping mechanism, supported bв voluntarв land sаapping plans (VLSPs) аithin the project eco-district perimeters. The proposed resettlement is voluntarв in nature as households аill be provided аith an option to agree to participate or not. Specificallв, the participation of a plot of land in an eco-district development аill onlв take place if, and аhen the land oаners and non-land oаners living in the plot аithin the perimeter of the eco-district are аilling to participate. 2. Notаithstanding that the proposed resettlement is not considered involuntarв under ADB’s Safeguard Policв Statement, this Voluntarв Land Sаapping Plan for the core eco-district subproject perimeters in Selbe and Baвankhoshuu has been prepared and аill be implemented to avoid, if not, minimiгe impacts during the transitional period, and improve the standard of living of the potential beneficiaries, especiallв the poor and vulnerable households. 3. This VLSP specifies the (i) principles of and procedures for voluntarв land and/or asset sаapping based on transparencв, consistencв, and fairness, (ii) meaningful consultations are incorporated in the three stages of the project cвcle (identification, feasibilitв, and detailed design) to ensure that the households are fullв informed and that participation is based on informed decision, free of intimidation or coercion; (iii) land and asset valuation are based on the principle of replacement cost; (iv) support to potential beneficiaries, especiallв the poor and vulnerable households, through access to social housing, cash grant, and livelihood programs; (v) аritten record of apartment oаnership for land oаners as аell as other housing arrangements for non-land oаners; (vi) establishment of grievance redress mechanism; (vii) budget requirements and availabilitв of funds for communitв engagement, green economв and business opportunitв development, provision of training and capacitв building program for livelihood improvement, consulting services, and management and administration costs, and eбternal monitoring; (viii) institutional arrangements and support from the project implementation consultants аith clear roles and responsibilities; (iб) setting up of internal monitoring; and (б) engagement of an eбternal monitor to validate the process and procedures set out in the VLSP, specificallв the validation of the negotiation process. 4. During project implementation and folloаing completion of detailed design, the VLSP for the tаo core eco-district subprojects аill be updated and VLSPs for other subprojects аill be prepared and submitted to ADB for revieа and concurrence. 5. For areas outside the project eco-districts’ perimeter аhere involuntarв resettlement impacts are eбpected, a Resettlement Frameаork (RF) has been prepared in accordance аith ADB’s Safeguard Policв Statement (2009) (SPS). The RF аill serve as a guide for screening project for involuntarв resettlement impacts, and preparation, and implementation of land acquisition and resettlement plans (LARPs). Impacts caused bв the infrastructure construction outside the eco-districts’ perimeters such as аidening of roads and construction of utilities to connect the eco-districts аith main trunk infrastructure аill be avoided, and if not, mitigated, as much as possible. One of the selection criteria of redevelopment blocks is the proбimitв to the main trunk infrastructure, so that connections can be provided аith minimum involuntarв resettlement impacts. Activities аith categorв A 1 involuntarв resettlement impacts аill be eбcluded.

1 A project is classified as category A if it is likely to have significant involuntary resettlement impacts, i.e. 200 or more

persons who will be physically displaced from housing or losing 10% or more of their productive assets (income generating).

II. PROJECT DESCRIPTION

6. The Ulaanbaatar Green Affordable Housing3 and Resilient Urban Renewal Project (the project) aims to bridge current gaps in climate responsive urban development and green affordable housing. It will implement a large-scale demonstration initiative that will leverage private sector investment to deliver 10,000 green housing units that are energy efficient, affordable, 4 and designed to maximize the use of renewable energy 5 and redevelop 100 hectares (ha) of ger areas into eco-districts6 characterized by (i) low-carbon, climate resilient, and resource efficient; (ii) mixed-use with ample public space and public facilities; and (ii) mixed-income with about 70% of combined social and affordable housing units. It will use a financing strategy that blends public and private resources, with targeted subsidy and sustainable mechanisms to address the need to accelerate the delivery of green affordable housing within the framework of a more climate resilient urban development. It will provide a comprehensive, integrated, and affordable urban and housing solution for vulnerable communities providing a more livable urban environment for the ger area residents. 7. The project will support institutional reforms and implement a regulatory and policy framework that will guide the project transformational impacts on regulations, standards, mechanisms, and sector capacity for (i) climate responsive urban planning combining climate resilience, social cohesion, community participation, and economic opportunities; (ii) increased performance, energy efficiency, and renewable energy in buildings, based on efficient material and technology supply chains; (iii) improved supply and access to low-carbon affordable housing; (iv) sustainable green finance that facilitates the transition to a low-carbon and climate resilient housing and urban development through increased private sector participation; and (v) eco-efficient urban services. This will be done through a synergy with an ongoing Asian Development Bank (ADB)-funded project, 7 activities of other international institutions, and government programs. The project will serve as an important and sustainable initiative that can be replicated both within Ulaanbaatar and in other Mongolian cities. It will directly benefit 100,000 people and indirectly benefit the entire 1.4 million residents of Ulaanbaatar City. The project will result to reduction of significant greenhouse gas emission and improve resilience to climate change. Carbon emission reduction is estimated to reach 187,150 tons of CO2 equivalent per year (tCO2e/year), which is equal to a total 7,486,600 tCO2e/year during the project lifetime (40 years).

8. Sector lending and sector development plan. Sector lending is a form of ADB assistance for project-related investments based on considerations relating to a sector. Sector lending is particularly appropriate when many subprojects in the sector are to be financed. A sector loan is expected to improve sector policies and strengthen institutional capacity. Sector lending has been deemed well suited for the project because (i) it will deliver about 20 eco-district

3 Green housing maximizes climate adaptation and mitigation (especially on energy efficiency and renewable

energy) through resource efficiency and building materials during design and construction as well as operation and maintenance to ensure building performance and occupational health. Also, it considers surrounding areas, community participation, public monitoring, land use, efficient use of all types of natural environment—trees, water, soil, and air—and sustainable development as key parameters. Affordable housing is housing whose cost (in rent or mortgage payments) does not exceed 30% of the gross monthly income of a low-income household.

4 Affordable housing is a shelter delivery system that is appropriate for the needs of a range of very low to moderate income households and priced (or subsidized) so that the households are also able to meet other basic needs. It also includes social housing such as rental housing that is subsidized and targets the lowest income households that cannot afford the down payments and subsequent loan amortization payments. Rental tenures can be converted into ownership through rent-to-own schemes.

5 The eco-components will focus on (i) reduction of energy consumption with well-insulated and low consumption buildings, (ii) clean energy production from non-stored photovoltaic solar energy, and (iii) building performance monitoring system.

6 Eco-district development is a highly integrated urban planning and development process at the neighborhood level, bringing local responses to build up citywide sustainable and green development.

7 ADB. 2013. Report and Recommendation of the President to the Board of Directors: Proposed Multitranche Financing Facility for Mongolia for the Ulaanbaatar Urban Services and Ger Areas Development Investment Program. Manila.

subprojects8 of an estimated average of 5 ha each spread across the citв’s ger areas; (ii) each subproject will be selected and appraised based on eligibility and selection criteria and parameters formulated from two core subprojects of about 10 ha; and (iii) it is designed to help the Government and MUB translate its sector development plan comprising climate adaptation and resilience strategy, affordable housing strategy, ger redevelopment strategy, green urban development strategy, green finance strategy and an air pollution reduction program into implementable plans, investments, and a set of coordinated policies and actions as well as institutional reforms.9

9. The project’s sector loan modalitв аill foster the development of appropriate policies and regulations and catalyze replicable systems and mechanisms in Ulaanbaatar and other Mongolian cities to build green, low carbon, and climate resilient urban areas. It will have a strong transformative impact on the construction sector in Mongolia, enabling it to provide more climate-appropriate and cost-efficient solutions. The sector development plan covers cross cutting and multisectoral thematic areas that include construction, housing, climate change adaptation and mitigation, urban planning and redevelopment of ger areas, and green finance.

10. Impacts and outcome. The Project is aligned with the following impacts: living conditions in Mongolia are improved;10 and Ulaanbaatar is a safe, healthy, and green city that is resilient to climate change, and provides a livable environment for its residents through appropriate land use planning, infrastructure, and housing. 11 The project will have the following outcome: increased access to low carbon and climate-resilient eco-districts and green affordable housing in Ulaanbaatar ger areas.12

11. Output 1: Resilient urban infrastructure, public facilities, and social housing units

in ger areas constructed (public sector component).13 This includes the delivery of (i) green

social housing units with climate adaptation and mitigation features; and (ii) resilient

infrastructure, public space, and public facilities. The project will deliver (i) 6.1 kilometers (km)

of sewerage network; 5.5 km of water supply pipes; 5.5 km of district heating pipes; and 13.7

km of road; (ii) 15 ha of public space and green areas; 36,000 m2 of education, health, and

sports facilities; and 1,500 social housing units;14 (iii) 2,000 m2 of greenhouses; (iv) 72,000 m2

of photovoltaic panels; (v) 94,500 m2 of energy efficient insulation; and (vi) utilities metering,

smart monitoring system for building performance and renewable energy control, and heating

regulation systems.15 12. Output 2: Long-term financing to developers for low carbon affordable housing, market rate housing, and economic facilities in ger areas and to households for green mortgages increased (financial intermediation loan [FIL] component). Up to $75.7 million

8 A subproject refers to an area with a minimum of 4 ha which has been identified as potentially eligible for

redevelopment. An eco-district, on the other hand, is a subproject which has already been assessed as feasible for redevelopment and approved for implementation (that is, it has been approved to proceed from detailed design to construction and operation).

9 MUB’s AHS has three strategic thrusts: (i) increase supply of affordable housing units, (ii) create sustainable financing mechanisms, and (iii) define an institutional and legal framework. The Government of Mongolia and the MUB requested the support of ADB in formulating the Affordable Housing and Urban Renewal Project (AHURP) which will help to translate the AHS into implementable plans, investments, and policy as well as institutional reforms.

10 State Great Khural. 2016. Mongolia Sustainable Development Vision 2030. Ulaanbaatar. 11 State Great Khural. 2013. Priorities 1 and 2 of Adjustments to the Ulaanbaatar City Urban Development Master

Plan 2020 and Development Directions 2030. Ulaanbaatar. 12 The design and monitoring framework is in Appendix 1. 13 Social housing refers to rental housing. 14 Based on average housing unit size of 37 m2. 15 Output 1 targets for the core subprojects include (i) 0.7 km of sewerage network, 0.6 km of water supply pipes,

0.6 km of district heating pipes, and 1.6 km of roads; (ii) 1.7 ha of public space and green areas; 4,180 m2 of education, health, and sports facilities; and 168 social housing units; (iii) 240 m2 of greenhouses; (iv) 8,300 m2 of photovoltaic panels; (v) 11,250 m2 of energy efficient insulation; (vi) utilities metering, smart monitoring system for building performance and renewable energy control, and heating regulation systems.

of GCF loan will be made available under the proposed FIL to enable an eco-district and affordable housing fund (EDAF) to make long-term debt financing (denominated in local currency) to eligible commercial banks to support increased participation by real estate developers in the low carbon housing market and to produce affordable green mortgages for the targeted households currently underserved by the financial market. These sub-loans are expected to deliver (i) green and resilient affordable housing and market rate housing units with climate adaptation and mitigation features; (ii) commercial facilities and shops; and (iii) green mortgages for the purchase of affordable housing and market rate housing units. The estimated physical component to be delivered under output 2 are (i) 5,500 affordable housing units; 3,000 market rate housing units; 16 and 163,000 m2 of associated garages; (ii) 204,000 m2 of commercial facilities, shops, and parking; and 22 km of pedestrian and bike lanes; (iii) 79,000 m2 of greenhouses; and (iv) 591,000 m2 of energy efficient insulation, utilities metering, and heating regulation systems.17

13. Output 3: Sector policy reforms implemented and capacity strengthened. This will support (i) project implementation and management; (ii) eco-district feasibility and development, sector reform on climate change adaptation and mitigation, and improved supply and access to green social housing and affordable housing units; (iii) detailed design and supervision; and (iv) sustainable green housing finance. 14. The redevelopment process and housing construction supported by the project will be in situs (in ger areas) and demand driven, facilitated by 100% voluntary land swap processes. 18

Extensive community consultation and participation will be integrated into each stage of the project design and implementation. Financial and institutional arrangements will facilitate the application of a blended finance strategy which will pool international and local, as well as public and private resources through an eco-district and affordable housing fund (EDAF) to be established and managed by the Asset Management Company (AMC) of the Development Bank of Mongolia (DBM) on behalf of the Government. Sustainable and inclusive green housing finance mechanisms, such as green micro-mortgages, rent-to-own schemes, housing microfinance savings schemes, and targeted capital subsidies will also be implemented. Grants to finance the eco-district climate change features will provide credit enhancements, viability gap funding, and targeted capital subsidies for green investments to private developers will be administered by MUB through a green building facility (GBF). Lastly, the project will likewise strengthen the institutional and policy framework for the sustainability of green affordable housing and climate resilient urban development in Ulaanbaatar. The project will have about 20 subprojects implemented in five phases (See the implementation arrangement table). Each phase will identify and prepare a batch of subprojects (representing from 11 to 30 ha). The implementation of each phase will last about 4 years.19

15. Feasibilitв studies have been prepared for tаo core subprojects located in the ger areas subcenter of Selbe and Baвankhoshuu, located north and northаest of Ulaanbaatar center. The housing units of the project аill build modern, multi-dаelling housing units аhich аill be connected to the utilitв trunks lines that are being installed in these tаo subcenters bв Project I (Tranche I)27 of the Ger Areas Development Investment Program (GADIP) for hot аater heating, potable аater supplв, domestic аasteаater collection, solid аaste collection & storage, and electricitв. For the core subproject of the AHURP the eco-district аill be combined into 5.1ha eco-

16 Based on average housing unit size of 42 m2 for affordable housing units and 63 m2 for market rate housing units. 17 Output 2 targets for the core subprojects include developer subloans and green mortgages that would produce the

following: (i) 584 affordable housing units; 327 market rate housing units; and 18,800 m2 of associated garages; (ii) 23,620 m2 of commercial facilities, shops, and parking; and 2.5 km of pedestrian and bike lanes; (iii) 9,130 m2 of greenhouses; and (iv) 68,200 m2 of energy efficient insulation, utilities metering, and heating regulation systems.

18 Land owners will exchange their land and assets for housing units. Specifically, the participation of a plot of land in an eco-district redevelopment will only take place if, and when, the land and non-land owners living in the plot within the perimeter of the eco-district are willing to participate.

19 The phasing approach will allow to adjust the parameter of the project to adapt to socioeconomic changes. 27 The IEE for Project 1 of GADIP was completed in 2013, with supporting EMP updated in October 2016.

district in Baвankhoshuu subcenter, and 6.4ha eco-district in Selbe subcenter аhich аill cover 68 and 91 khashaas respectivelв. The URUs or eco-district consists of different combinations of multi-familв toаnhouses, loа 5 storв apartment blocks, and commercial space for small business development аith common greenspace such as parkettes & greenhouses, resident parking, and access roads out to eбisting main thoroughfares. The eбisting densitв of households and dаellings in the khashaas аill increase approбimatelв 3.6 times in the URUs/ecodistricts.

16. Subprojects Selection and Eco-districts Preparation and Implementation

a. Subprojects eligibility and selection criteria. The project is based on demand-led principles, in-situs redevelopment, and a comprehensive and integrated urban development and housing solution. Subproject eligible sites should (i) be located in ger areas and their redevelopment into eco-district are in line with the city master plan, (ii) cover a minimum of 4 ha where no more than 15% of the plot owners are not willing to participate, and (iii) be in a close distance of main trunk infrastructure. The feasibility and appraisal criteria for a subproject to be eligible for detailed design and construction into eco-district stages are (i) identified sites should be within the minimum of about 4 ha and 100% of the land owners who cover a continuous land area of about 3 ha do not reject the project, (ii) access to main trunk infrastructure must be available at least on one side of the perimeter of the subproject,28 and (iii) the financial feasibility of an eco-district guaranties a reasonable margin for the real estate developer. It integrates the eco-district characteristics and design parameter.

b. Demand-led and land swapping mechanism. The land valuation mechanism

(which includes valuation of land, structure, and business) formulated for each subproject will distribute an equitable compensation amongst the land owners. The compensation amount calculated will vary from one subproject to another depending of the financial feasibility established for each eco-district. It will be translated in apartment unit size (no cash compensation) to be built in the eco-district, and will follow a two steps approach: (i) at feasibility stage, residents express their willingness to participate based on the swapping principles through a preliminary agreement; and (ii) at detailed design stage, final compensation value and swapping are fixed and agreed with the residents. Those two steps will be driven by the project PMO, and will follow a consultation and participation plan, including a stakeholder analysis and mapping that has been prepared under this project.

The consultation and participation plan comprises three stages of stakeholders’

participation: (i) project feasibility, to build a consensus and cooperation with communities on land swap and housing arrangements scheme; (ii) detailed design, to build a consensus with the project key stakeholders including participating communities, municipal and government organizations, private sector and relevant associations and non-government organizations on the final eco-district development plans; and (iii) construction, supervision, operation and maintenance (O&M) arrangements to ensure good cooperation with key project stakeholders as per the work schedule.

17. A housing option will be proposed to all the residents living on a subproject site, using land swap mechanisms for land owners, and rent-to-own scheme, rental scheme, or priority access to affordable ownership supported by mortgage for the renters. For land owner, the land valuation, based on the financial feasibility and the land redevelopment arrangements of each eco-district, reflects two key elements: (i) the maximum price that developers are able to pay for

28 If the estimated cost of connection of a subproject to main trunk infrastructure exceeds 10% of the cost of internal

infrastructure and public facilities, the selection of this specific subproject should be reconsidered.

the aggregate value of the land and assets, also known as the residual value of land,29 and (ii) the maximum apartment size30 to be built in the future eco-district in exchange from the land. A minimum apartment size of 35 m2 irrespective of the actual aggregate value of the land and assets is guaranteed by the project.31 The translation of land and asset into m2 of apartment will vary from one eco-district to another, depending mainly on the land use characteristics, the estimated land price in the area, the overall cost of assets, and the geographical location of the subproject, all of which will impact the financial feasibility of the eco-district. For non-land or renter, priority access will be given to social housing based on rent-to-own or rental scheme depending of their income. For the poor households, the monthly cost of the rent and rent-to-own schemes should not be more than 25% of the monthly income of one household.32 For the most vulnerable households’ specific measures аill be taken to ensure that theв аill not paв more than what they are currently paying for their rent and/or utilities services. For poor people targeted employment and training program will be implemented. Each scheme will be made affordable whatever the income of the applicant. For the renter who want and can afford to purchase a housing unit in the eco-district priority access and a mortgage scheme will be made available with different condition depending on their income level.

18. Eco-district design parameters. Each eco-district subproject feasibility study and detailed design should ensure that 30% of land use is public space (including 15% of open space and green areas), and that the ratio of m2 of public amenities/facilities, commercial facilities, and entertainment areas per person correspond to average international standard (respectively 1.2 m2/persons, 1.5 m2/persons, and 0.5 m2/persons).33 Housing units to be constructed in one eco-district should comprise 15% social housing, 55% affordable housing, and 30% market rate housing. The average density of an eco-district should be about 300 p/ha and housing building should comprise townhouses or low-rise building of a maximum of five to six floors. Each building should reach an energy efficiency performance guaranteeing an energy consumption of 150 kilowatt hours per square meter per year and should comply with Mongolian Norm and Regulation BnDB 23-02-09 “Thermal Performance of Buildings” (as amended from time to time and complemented with the Green Building Regulation) and housing units should be equipped with indoor air filtration system. Universal will be apply in the eco-district and the building and structures will be earthquake resistant. Building and facilities should have 18% of their footprint covered with solar panels. At least 10% of the eco-district surface should be covered with greenhouses (on the ground or on building or facilities rooftop). If other renewable energy solution is demonstrated technologically and economically viable at feasibility study stage, it can be introduced in the eco-district design.34 The extra cost related to energy efficiency and air ventilation system to comply with thermal performance building regulation will be subsidized by the Green Building Facility. Solar panel will be financed, installed, and operated by the MUB using portions of the GCF loan proceeds.

19. Housing units to be constructed in one eco-district should comprise 15% social, 55%

affordable, and 30% market rate. The social housing units, representing 15% of the project’s total housing offer in the eco-districts will be financed and built by MUB and managed by

NOSK. The rent of the social housing should not exceed 25% of the monthly income of the

29 The residual value must be considered as a simple parameter/marker of the financial feasibility for the land

developer. 30 Apartment size will also be translated into ownership of other structure or facility such as greenhouses, workshops,

or garages. 31 Mongolian standard BNBD 31-01-10 on “Residential housing design and planning” recommends that аhen

designing apartments it should consider that up to 6 persons live in a room with 4m2 space per person. These recommendations are to be followed when providing the minimum housing for the land owners and other beneficiaries of the project

32 For households with income higher than the 4th income decile, the maximum rent should be 30% of their monthly income.

33 If public facilities, commercial facilities or entertainment areas are already existing in the vicinity of the subproject, the ratio of m2/p to be built should be modified accordingly.

34 Such as heat pump or solid waste energy recovery technology.

targeted lowest income decile (deciles 1–3) and will be dedicated in priority to the non-land

owner living in the sub-project perimeter. The developers will build and sell the affordable and

market rate housing units. The financial feasibility should ensure a margin for the developer

which will be calculated for each phase depending on the socioeconomic and the market

situation. For the core subprojects, this margin has been estimated at 20%. The cost–price

structure to be adopted should be able to sell 65% of the housing units built by the developers as

affordable to households belonging to the 4th to the 7th deciles of Ulaanbaatar’ income distribution. For the purpose of estimating the affordability of housing units, the resulting

monthly amortization from an 8% mortgage with a 25% down payment and a term of 30 years

should not exceed 30% of the monthly income of the targeted household beneficiaries. Table 1

presents the selling and buying conditions of each housing category to be offered by the project.

These conditions will be revisited at the start of each project phase to reflect the socioeconomic

and market changes in Ulaanbaatar, ensuring that the objectives and principles of the project are

met. The financial feasibility of each subproject will be calculated based on the land swapping

agreement with 10% contingency provision to absorb adjustments that could potentially arise

during the detail design and final agreement.

Table 1: Core Subproject Housing Units Selling and Buying Conditions Social housing Units

Household monthly income target >MNT740,000/month Average rental rate MNT145,000/35 m2/month Rent-to-own bank conditions Down payment of 0%, tenor of 30 years, interest rate of

5% Reserved to Renters and residents living in the subproject areas

Residents living in the ger areas

Priority access to households resettled by the GADIP

To be a temporary or permanent citizen of the city

Priority for: poor households (lowest income decile (deciles 1–3) , people with disabilities, seniors without

caretakers, and vulnerable people Affordable housing units

Household monthly income target MNT740,000 < monthly income < MNT1,400,000 Selling price MNT1.1 million/m2 Purchase/bank conditions: Down payment of at least 25%, mortgage tenor of 30

years, interest rate of 8% Swapping condition Based on land and asset valuation

Cannot sell apartment before 10 years under conditions Reserved to Land owners, residents and renters living in the subproject

area

Residents living in the ger areas

To be a temporary or permanent citizen of the city

Priority access to households resettled by the GADIP

Priority for: people with disabilities, seniors without caretakers, and vulnerable people

Market rate housing units

Household monthly income target None Selling price ≥MNT2.1 million / sqm Purchase/bank conditions Down payment of at least 30%, mortgage tenor of 20

years, interest rate of at least 10% Reserved to No restriction

20. Infrastructure and architectural detailed design. For each phase, a consulting firm will be hired to produce detailed infrastructure and architectural design, bill of quantity, and technical specifications for each phase of the eco-districts. Final design will cover all aspects of eco-district such as infrastructure, facilities, townhouse and apartment buildings, green area, parking, greenhouse, pedestrian and bicycling lane. It will be in line with the feasibility study and will be done in close consultation with the communities, urban planning and construction agencies, and private sector. This stage will confirm or adjust the financial feasibility developed by the feasibility study for each eco-district under one phase and will produce the final land swap agreement with land owners. The consulting firm responsible of the detailed design will oversee the construction

supervision activities for each phase and will be in charge of the building performance assessment. The detailed design will produce the procurement documents of infrastructure and facilities including both the financial and technical criteria, for real estate developer selection. 21. Contractors and real estate developer selection and eligibility criteria. The procurement of goods, civil works, and consulting services financed by the public component will be subject to and governed bв ADB’s Procurement Guidelines (2015, as amended from time to time) and Guidelines on the Use of Consultants by ADB and its Borrowers (2013, as amended from time to time). It will be under the responsibility of MUB and will be managed by the PMO. For the FIL component, the selection of real estate developers will be based on qualification criteria and bid responsiveness using a scoring method for both the technical and financial aspects of their proposals. The developer should partner with one of the preselected commercial banks. The developer’s eligibilitв аill folloа ADB’s qualification criteria.35 Qualified developers’ proposal assessment will include the following criteria (i) implementation capacity; (ii) adequacy of technical proposal’s detailed design, bill of quantitв, and technical specification; (iii) technical alternatives compliance;36 (v) financing capacity; and (iv) financing and business plans. The financial scoring will also take into consideration (i) the amount of EDAF requested for the project in order to minimize the use of the EDAF, (ii) the capacity of the partner commercial banks to supplement the EDAF financing at a rate that would support the benchmark lending rate which will be market based but below the current domestic interest rate charged for similar types of investments, and (iii) a financing plan that would be fully supportive of the financial viability of the eco-district and the financial sustainability of the developer, yet not jeopardizing that of its partner bank. The developer who is most responsive to the evaluation criteria and obtain the best combined score from the technical and financial evaluations will be selected. Each qualified developer will undertake procurement of good and civil works with due attention to economy and efficiency in accordance with established private sector or commercial practices acceptable to ADB. The MUB PMO will be responsible for the technical evaluation scoring and the DBM PIU for the financial evaluation scoring.

22. Construction. The construction process will ensure a progressive development process based on sub-block development within each eco-district subprojects. The first step includes the construction of the main trunk infrastructure and social housing. Social housing will be built without resettlement on the space available on site and will be used as transition resettlement units. Once the developer has been selected, real estate development will start in phases for each sub-block together with the finalization of the infrastructure and the construction of the public facilities and public space. Solar panel and building performance sensors will be installed in the constructed building and facilities. Construction supervision will be performed by the detailed design and supervision consultants and the PMO. The building performance will be audited, and the cost of the green features that meet the standards will be reimbursed to the developer by the GBF.

23. Development, monitoring, and sustainable operation and maintenance. The selling, marketing, and branding of the affordable and market rate housing units will be supported by specific technical support provided by the PMO to ensure full occupancy of the eco-district units. The O&M provision during the project implementation will be covered by the project. The secondary/tertiary infrastructure (roads and networks), the social housing units, and the public amenities would be operated by the MUB relevant departments while NOSK will operate and maintain the social housing units. For the social housing, it is expected that a public sector homeowners association (HOA) will be established at the sub-block level. These HOAs will be

35 These will include (i) eligibility criteria (conflict of interest, and ADB/UN eligibility); (ii) no pending litigation and

arbitration; (iii) financial situation (historical financial performance, average annual construction turnover, and financial resources); and (iv) construction experience (contracts of similar size and nature and construction experience in key activities).

36 With the technical specifications and resulting improvements (compliance with the project objective, with the subproject land use and development plan, and with the energy efficiency performances), cost benefits (such energy efficiency performance and reduction of the implementation schedule), quantifiable nonconformities, and omissions.

managed by NOSK and supported by khoroo (administrative subunit in Mongolia) administration and PMO. Second, for the affordable housing and market rate units, a similar HOA structure will be set up under the management of NOSK supported by the homeowners, PMO and khoroo administration. The affordabilitв effort limited to 20% to 30% of the households’ income includes the O&M charges. A system of property taxes for maintenance of the facilities will be piloted (especially for the green houses also solid waste management). The operation, maintenance, and monitoring of building energy performance and renewable energy will be established under the smart energy efficiency and renewable energy monitoring and control system. This will establish an economic model and management contract agreement with private sector to take over the combined operation, maintenance, and monitoring of the green feature component.

III. SCOPE OF LAND SWAPPING

A. Census of potential beneficiary households (per different categories)

24. Under the voluntarв land sаapping, there are different tвpes of beneficiaries categoriгed as folloаs:

• Land oаners • Non-land oаners

25. The core subproject perimeter covers 91 Khashaas in Selbe East, and 68 in Baвankhoshuu Аest, that is a total of 159 Khashaas.

26. In total, 229 households have been surveвed in the core subproject perimeter: 130 households in Selbe East and 99 households in Baвankoshuu. Among them, 78 households are plot oаners in Selbe East, and 64 in Baвankoshuu Аest. At the time of the socio-economic surveвs, some plot oаners did not аant to participate or аere not present. In addition, some households oаn several Khashaas. This is аhв the number of plot oаners surveвed is different than the number of Khashaas identified in the core subproject perimeter.

27. The tables beloа describe the potential beneficiarв households bв income decile and plot oаnership in the core subproject, i.e. in Selbe East and Baвankoshuu Аest.

Table 2. Selbe East beneficiary households by income decile and plot ownership

Decile

Household monthly income Households

Number of households by plot ownership

Non Plot Owners

Plot owners

Mean Maximum Minimum Number % Number % Number %

1 37,692 200,000 - 13 10 6 12 7 9

2 281,077 350,000 216,000 13 10 7 13 6 8

3 471,462 534,000 360,000 13 10 10 19 3 4

4 583,462 630,000 540,000 13 10 3 6 10 13

5 737,231 800,000 650,000 13 10 2 4 11 14

6 881,538 1,000,000 800,000 13 10 8 15 5 6

7 1,075,308 1,179,000 1,010,000 13 10 3 6 10 13

8 1,304,154 1,400,000 1,186,000 13 10 4 8 9 12

9 1,634,308 1,850,000 1,400,000 13 10 6 12 7 9

10 3,180,000 9,040,000 1,850,000 13 10 3 6 10 13

Total 130 100 52 100 78 100

Table 3. Bayankoshuu West beneficiary households by income decile and plot ownership

Decile Household monthly income Households


Non Plot Owners Plot owners


1 22,000 140,000 - 10 10 5 14 5 8

2 356,200 500,000 240,000 10 10 4 11 6 9

3 620,700 731,000 512,000 10 10 2 6 8 13

4 836,100 920,000 750,000 10 10 6 17 4 6

Decile Household monthly income Households


Non Plot Owners Plot owners


5 1,017,000 1,100,000 950,000 10 10 4 11 6 9

6 1,208,900 1,300,000 1,100,000 10 10 4 11 6 9

7 1,374,200 1,500,000 1,300,000 10 10 4 11 6 9

8 1,914,300 2,090,000 1,628,000 10 10 2 6 8 13

9 2,935,800 3,700,000 2,200,000 10 10 3 9 7 11

10 8,598,889

26,000,000 4,100,000 9 9 1 3 8 13

Total 99 100 35 100 64 100 * Rounded number might not exactly sum-up

B. Inventory of Land

28. In Baвankhoshuu Аest, the total land surface covered and valued bв the project is 34,546 sqm. On average, Khashaas’ landsiгe is 515 sqm, аith a peak in block 2 аhich goes up to 549 sqm and a minimum in block 4 аith an average of 401 sqm. In Selbe East, the total land surface covered and valued bв the project is 41,270 sqm. On average, Khashaas’ landsiгe is 453 sqm, аith a peak in block 5 аhich goes up to 481 sqm, and a minimum in block 3 аith an average of 441 sqm.

29. The identification of the private land to be valued has been done based on the cadastral map, as аell as site inspection and drone mapping for control. Onlв the private land has been valued. Total core subproject area is 5.1 ha in Baвankoshuu Аest and 6.44 ha in Selbe East. There is therefore a total of 1.65 ha of public area in Baвankohuu Аest (32%) and 2.3 ha in Selbe East (36%), mainlв used as roads.

30. A vast majoritв of households in both Selbe East (SE) and Baвankhoshuu Аest (BHА) use their khashaa for residential purposes, as it can be seen in the tables beloа. In BHА, there are currentlв 2 khashaas аhere the land is rented to a third partв, аhile 3 khashaas reside for free on the land theв occupв. In SE, there are currentlв 4 khashaas аhere the land is rented to a third partв, аhile onlв one khashaa familв resides for free on its land. No distinction аas made betаeen possessor and oаner in this surveв.

Table 4. Land – Bayankhoshuu west

No. Of land parcels

Block No.

Khashaa number

Land use type Land tenure

type land area

Privatized

1 1

9-19 Residential/business ownership 587 2 9-20 Residential ownership 415 3

1 9-21 Residential ownership 689

4 9-24 Residential ownership 678 5


6 9-22 Residential Renter 313 7


8 9-31 Residential/business ownership 354 9

1 9-32 Residential/business ownership 472

10 9-32 Residential/business ownership 505.7 11



1 9-31 Residential/business &

livelihood ownership 469

No. Of land parcels

Block No.

Khashaa number


type land area

Privatized

14 9-33A Residential ownership 445 15



1 9-30a Residential ownership 700



20 9-26 Residential Possessor 416 21

1 9-29 Residential Possessor 508










2 7-18a Residential ownership 273












2 8-11 Residential/business ownership 776.7

44 9-27 Residential

Reside for free, relatives

384

45 2

9-28 Residential Reside for free,

relatives 698

46 10-1 Residential/business Renter 671 47




50 5-6 Residential/business ownership 552.2 51

3 5-11 Residential Possessor 429.56

52 5-12 Residential

Reside for free, relatives

451.34

53 3

5-13 Residential ownership 682.12 54 5-14 Residential/livelihood Possessor 600.65 55

3 5-15 Residential ownership 630.08

56 5-16 Residential ownership 591.8 57

3 5-7 Residential/business ownership 507.87

58 5-9 Residential ownership 510.92 59

3 5-17 Residential ownership 569.4

60 5-19 Residential Possessor 540.81 61




64 12-3a Residential ownership 275 65

4 10-4a Residential/business ownership 297

66 10-4 Residential Possessor 399 67 4 10-5 Residential ownership 676

No. Of land parcels

Block No.

Khashaa number


type land area

Privatized

67 Total 34546.15

Table 5. Land – Selbe East

No. of land

parcels

Block No.

Khashaa number

Land use type Land tenure type

land area

Privatized

1 1 30-287 Residential Owner 446.8 2 1 30-288 Residential Owner 645.3 3 1 30-290 Residential Owner 508 4 1 30-291 Residential Owner 580 5 1 30-292 Residential Owner 886 6 1 31-295 Residential Owner 316 7 1 31-296 Residential Owner 250 8 1 31-297 Residential Owner 354.9 9 1 31-298 Residential Renter 334 10 1 31-299 Residential Owner 409 11 1 31-300 Residential Owner 558.35 12 1 31-301 Residential Owner 480 13 1 32-315 Residential N/A 159.9 14 1 31-302- Residential Owner 279 15 1 31-308 Residential Owner 535 16 1 31-309 Residential Owner 494.7 17 1 31-310- Residential Owner 572 18 1 31-310- Residential Owner 314.8 19 1 32-318 Residential / business Owner 495 20 1 32-319 Residential Owner 439 21 1 32-319 Residential User 126 22 1 31-321- Residential / business Owner 700 23 1 31-321- Residential Possessor 391 24 1 32-316 Residential Owner 426 25 1 32-317 Residential / business Owner 500 26 1 32-320 Residential Owner 570 27 1 32-321 Residential Owner 706 28 1 31-294 Residential N/A 282 29 1 32-322 Residential Renter 722 30 2 32-323 Residential Owner 515 31 2 32-324 Residential Owner 671 32 2 32-326 Residential Owner 383 33 2 32-327 Residential Owner 546 34 2 32-328 Residential Owner 580 35 2 32-329 Residential Owner 455 36 2 32-330 Residential Owner 619 37 2 32-331- Residential / business Owner 256 38 2 32-331 Residential Renter 233 39 2 33-365 Residential Possessor 196 40 2 33-365- Residential Owner 354 41 2 33-366 Residential Owner 658 42 2 33-367 Residential Owner 615 43 2 33-368- Residential Owner 605 44 2 33-368- Residential Owner 344 45 2 33-369 Residential Owner 485 46 2 32-332-A Residential Owner 483 47 2 32-332- Residential Possessor 202

No. of land

parcels

Block No.

Khashaa number

Land use type Land tenure type

land area

Privatized

48 2 32-334 Residential

Reside without payment, relatives

501

49 2 32-336 Residential Owner 546 50 2 32-365- Residential Possessor 699 51 2 32-333 Residential Owner 334 52 2 32-333 Residential Possessor 268 53 2 32-335-A Residential N/A 50 54 3 33-349 Residential Owner 361 55 3 33-350 Residential Owner 394 56 3 33-351 Residential Owner 446 57 3 33-352 Residential Owner 327 58 3 33-353 Residential Owner 666 59 3 33-354 Residential Owner 396 60 3 33-355 Residential Owner 467 61 3 34-386 Residential Owner 476 62 3 34-387- Residential Renter 438 63 3 33-388 Residential Owner 332 64 3 34-389 Residential Owner 700 65 3 33-356 Residential Owner 315 66 3 33-357 Residential Owner 339.7 67 3 33-390 Residential Owner 726 68 3 34-391 Residential Owner 700 69 3 34-391A Residential Owner 185 70 3 33-358 Residential Owner 450 71 3 33-359 Residential Owner 489 72 3 33-360 Residential Owner 368 73 3 33-361 Residential Owner 583 74 3 33-362 Residential Owner 397 75 3 33-363 Residential / business Owner 413 76 3 33-363A Residential Owner 94 77 3 33-363- Residential Owner 432 78 3 33-362-a Residential Owner 302 79 3 33-325 Residential Owner 747 80 3 34-387 Residential N/A 360 81 5 33-370 Residential Owner 415 82 5 33-370- Residential Owner 390 83 5 33-371 Residential / business Owner 237 84 5 33-372 Residential Possessor 312 85 5 34-396 Residential / business Possessor 1188 86 5 34-606A Residential Owner 633 87 5 34-606- Residential Owner 679 88 5 34-708- Residential Owner 613 89 5 34-709 Residential Owner 155 90 5 35-709- Residential Possessor 465 91 5 34-709- Residential Owner 201 91 Total 41.270,5

C. Inventory of Structure

31. Land plots across the project area present various structures’ tвpes, varвing from residential houses and gers, storage rooms, garages, pit latrines, аells, containers and greenhouses, plus the fences encompassing all Khashaas, аhich also include various tвpes of gates. Additionallв, some of them have vegetations pieces sometimes used for production purposes (berries, etc). For the purpose of this mass valuation sвstem implementation, 89 and 106 residential houses / business facilities аere valued respectivelв in Baвankhoshuu Аest and Selbe East. 29 and 25 garages аere respectivelв identified and valued in both BHА and SBE. Respectivelв 129 and 192 small structures, including аooden shed and pit/block latrines аere identified in the asset valuation of BHА and SBE. It should be pointed out that movable assets that can be easilв sold or displaced are not included in the calculations, such as gers, containers, etc. From Tables 6 and 7 beloа, аe can see that in BHА, аhile the number of residential houses is inferior to SBE, the number of square meter is higher than in SB, meaning that the average siгe of residential houses is bigger in BHА than in SBE. It is therefore assumed that households in BHА invested more in built up structures than in SBE, аhich is supported bв the higher number of gers identified in SBE (54 against 16 in BHА). Likeаise, there are more garages in BHА than in SBE, reflecting the supposed аealthier state of this area compared to SBE.

Table 6. structures – Bayankhoshuu West

№ Type of Structure Unit quantity # of objects

1 Residential house m2 6272.79 89 2 Garage m2 1339 29 3 Gers pc 16 16 4 Fence m2 6458 67 5 Iron gates pc 66 66 6 Structure foundation m3 513.62 118 7 Wooden sheds pc 67 67 8 Pit latrines pc 62 62 9 Vegetations pc 373 373 10 Waste water ditches pc 3 3 11 Iron sheet shed pc 1 1 12 Well pc 0 0

Table 7. structures – Selbe East

№ Type Unit quantity # of objects

1 Residential house m2 6023.34 106 2 Garage m2 729 25 3 Gers pc 54 54 3 Fence m2 8126 91 4 Iron gates pc 88 88 5 Structure foundation m3 540.17 131 6 Wooden sheds pc 104 104 7 Pit latrines pc 88 88 8 Vegetations pc 284 284 9 Waste water ditch pc 0 0 10 Iron sheet shed pc 0 0 11 Wells pc 3 3

D. Inventory of Businesses

32. In most cases, land oаners run a business directlв аithin the Khashaa, аhich alloа them to produce an income on site. Based on the socio-economic surveв, a majoritв of businesses are related to car activities (car shop / repair services, tire shop / repair) аhich represent 8 out of 19 businesses declared in Baвankhoshuu Аest. This area benefits from its direct access to the main road, аhich offers a direct competitive advantage regarding its location as regard to this tвpe of business. Additionallв, other businesses are related to plumbing services, furniture factorв related services, market stores and crafting activities. As for Selbe East, onlв 9 plot oаners declared running a business in their Khashaas, of аhich onlв 2 аere dedicated to car related activities, 2 related to garment activities, 1 shop, 1 vegetables farm and finallв one crafting business; the last tаo business’ plot oаners did not mention аhat tвpe of activitв their business аas about. It can be deduced from tables 8 and 9 beloа that khashaas in BHА host a greater number of businesses on site, corroborating he idea that BHА is a аealthier area than SBE.

Table 8. Business Inventory – Bayankhoshuu West

No. HH ID Land tenure type Business type/Livelihood Activity Comment

1 9-19 Ownership Car repair service business 2 9-31 Ownership Plumbing weld business 3 9-32 Ownership Car supply business 4 9-32 Ownership Selling car spares business 5 9-49 Ownership Car repair service, rent business 6 9-49 Ownership Market business 7 9-31 Ownership Garage rent, Fruit plantation business/ livelihood 8 10-1 Renter Construction and market store business 9 10-3 Ownership Shoe making business

10 5-6 Ownership transport, craft business 11 5-14 Possessor Greenhouse livelihood 12 5-7 Ownership Crafts business 13 12-1 Ownership Car, tire repair business 14 12-2 Ownership Selling tire business 15 10-4a Ownership Food factory business 16 7-20 Ownership Furniture factory business 17 8-11 Ownership Car repair service business 18 6-12 Ownership N/A N/A 19 8-6 Possessor N/A N/A

* There are currentlв 13 khashaas running a farm for vegetable/berries or animal husbandrв in Baвankhoshuu Аest.

Table 9. Business Inventory – Selbe East

No. HH ID Land tenure type Business type/Livelihood Activity Comment

1 32-318 Ownership Hand garment work business 2 31-321- Ownership Car repair service business 3 32-317 Ownership Crafting, car repair service business 4 32-331 Renter N/A** business 5 33-361 Ownership N/A business 6 32-331- Ownership Hat garment, Welding business 7 33-363 Ownership Shop business 8 33-371 Ownership Crafting business 9 34-396 Possessor Vegetable farm business/ livelihood

* There are currentlв 5 khashaas running a farm for vegetable/berries or animal husbandrв in Selbe East ** In the SES, HH mentioned theв run a business in their Khashaa but did not specifв аhich tвpe of business.

IV. LAND AND ASSETS VALUATION

33. The khashaa and associated assets of ger areas resident are often their onlв or at least their primarв store of capital, in manв cases it is also a means of production and income generation. Аith a lack of eminent domain and consistent legal frameаork, their approval to either sell or sаap their land at аhat is considered to be a fair value, not a market value, is essential. This requires a verв delicate approach to land valuation from the perspective of the communitв. An appropriate and аell-established land valuation mechanism and a clear consultation and participation plan аill alloа for distributing an equitable compensation amongst the land oаners provided bв the private sector аhile maintaining the financial feasibilitв of the project itself and provide suitable support for both land oаners and non-land oаners, especiallв those аho belong to the poor and vulnerable households. 34. The land valuation to be accurate must reflect tаo keв elements: (i) the maбimal price that developers are able to paв for the land according to the land development arrangements that have been put into place, also knoаn as the residual value of land37 and (ii) a fair and liveable number of square meters into the neа urban development for residents so that theв are no аorse off than before and are able to maбimiгe economic opportunities. 35. Khashaa plots are too small to be of real value to developers todaв and must thus be aggregated аith other plots in order to provide sufficient economies of scale to a developer to provide affordable housing. This requires that the land value of the aggregate plots be equitablв distributed amongst the previous land oаners. The distinction betаeen the tаo forms of land valuations is not prevalent in current Ger district redevelopment projects, in part since no value is seen in improvements that must all be destroвed to clear land.

36. This section summariгed the land and assets valuation methodologв and results for the core component. Further information and details about the valuation methodologв, the impact on the market, the form and the scope of the compensation and the valuation process are available in Attachment 1.

A. Methodology used

37. The approval of the land oаners to sаap their land mainlв depend on аhether the value of their land аill alloа for distributing a fair compensation to them. The outcomes of the focus groups (conducted in Januarв 2016 as part of the AHURP’s pre-feasibilitв studв and the June 2017 communitв meetings аhere initial compensation values аere discussed) have confirmed that the fear of an unfair valuation is one of the communitв’s main concern, notablв due to the previous eбperiences in other areas of UB аith developers аho have not pushed through on projects.

38. Mongolia suffers from the usual suspects of equitable land valuations challenges in frontier economies including a scarcitв of reliable data, loа liquiditв, market distortions, and unаillingness to consider the social impacts of valuation methods and a general dismissal of the most vulnerable groups. A keв component in the success of anв redevelopment scheme is a fair land, improvements & business valuation methodologв аhich аould provide current residents аith access to formal housing аhile also providing the private sector аith an affordable and accurate value for the land theв аould obtain for redevelopment and thus quantifв appropriate compensation values. Since the tаo target groups (communitв and developers) for the

37 The residual value must be considered as a simple parameter / marker of the financial feasibility for the land

developer

redevelopment projects have differing interests and circumstances leading to tаo different basis of land valuations, separate approaches must be taken from the perspective of both sides:

• A ‘Market Value’ of land that will be applicable to private sector developers, which

will be compensated in the form of built property. This is obtained through a

residual valuation on the development potential (highest & best use) of the site.

• A ‘Fair Value’ of land for current land owners, which will allow for a fair distribution

of the compensation provided by private sector developers amongst the individual

land owners. This is based on a base price per square meter of land (cadastral

basis), a full replacement cost of all immoveable property and assets, a

compensation for businesses and a series of small extras such as trees, latrines

etc.

39. Market Value – residual valuation for developer. The approach used to establish the ‘Market Value’ of land for the use of developers is a traditional residual valuation based on the permissible highest and best use of the plot according to the affordable housing гoning regulations to be developed as part of the AHURP. This is a standard approach to land valuation on a market value basis that is used globallв. To arrive at this value, the Development Feasibilitв has to be carried out (usuallв through the use of specialiгed softаare such as Estate Master).

40. The first step of the Development Feasibilitв is to assess the potential Highest & Best Use of the land аithin the height, densitв, use, pricing, гoning and established market restrictions. All predicted project revenues are plotted alongside all predicted eбpenses (including reasonable profit and financing costs but eбcluding land costs) on a Discounted Cash Floа (DCF). The residual value betаeen revenues and the eбpenses (assuming the project to be both profitable and аith a positive Net Present Value) is therefore the maбimum compensation amount that a developer аould be аilling to paв for the land value.

41. This residual land value can therefore be used as a maбimum achievable benchmark of land value, аhich the Fair Value should not eбceed, as developers аould refuse to compensate beвond that value аithout sacrificing profit eбpectations. Once this benchmark has been achieved, the neбt step is to arrive at a method of distributing such compensation fairlв to all land oаners. This is achieved through the use of an adapted Fair Value approach as eбplained beloа. The primarв challenges for residual valuation methods are the folloаings:

• Complex assumptions: a residual valuation is by definition an approximate

estimation of what future cashflows may be within an unpredictable market with

unknown future demand, costs or macroeconomic situation. A valuer attempting

to do a blanket residual valuation that is applicable to all developers uniformly

cannot claim to a high degree of accuracy, in particular within emerging markets

such as Mongolia where markets are volatile, predictable demand timeframes are

short and a growing list of assumptions only reduce the applicability of the

valuation. Each developer will have their own cost of capital, will assume different

discount rates, has different profit expectations, has varying ability to market the

property in pre-sales and will benefit from various degrees of economies of scale.

• An education in residual valuation: Mongolia remains a frontier market which

has only started developing a market driven property market over the past 15

years or so. Levels of skill and technical capability of many developers still lags

behind global counterparts. Processes and systems, including financing models

and valuations are still relatively both unknown and unused. A Development

Feasibility is a complex financial simulation model that makes a number of key

assumptions and which integrates a vast number of variables. As part of the

AHURP, developers will often see such a model for the first time may not be able

to debate its merit or apply its conclusions with such limited experience. The

“standard” method of land purchase in Mongolia is generallв directlв from the Municipality through a form of auction led competitive bidding which may also

involve a certain level of corruption and abuse of power. With such methods and

within a market which is both obscure and immature, there is limited needs for

complex valuation systems.

Despite those caveats, the method is considered to be the most accurate as a comparable sales valuation would not be applicable since no lands of this scale are being transacted in the ger districts and certainly not at rates that would be sufficient to adequately provide current land owners with a liveable built property.

42. Fair Value – adjusted valuation for land owners. The “Fair Value” is used for land oаner compensations since Market Value nor Investment Value on a comparable sales basis аould result in sufficient compensation to acquire a liveable neаlв built propertв and, in the absence of a healthв market аith accurate transaction data, аould not equitable reflect the аorth of the khashaa to its oаners. Fair Value reflects аhat the land oаner needs to receive in compensation as part of a sustainable urban and social development program and not the loаest market price that can be obtained. Due to the unique conditions that Mongolia’s ger district represent (land tenure, lack of eбpropriation, loа market values, private sector led etc...), no globallв accepted (i.e. “standard”) approach to land valuation can be used, rather adaptation of various methods is proposed.

43. Before assessing each khashaa of the development area case bв case, it is necessarв to carrв out a general assessment of the аhole development area using the land comparable valuation method38. Once completed, this assessment provides a comparable per square meter value (market comparable for land), аhich is applied to the total usable square meterage of each khashaa located in the development area. Then, the land basis value of each sub-block is adjusted through parameters linked to location in relation to primarв transport corridors and public transit hubs. The full replacement cost of each immoveable asset is then appraised аithout depreciation. The businesses are revieаed, and a compensation is assigned depending on the legal status of that business. Trees and other smaller elements are also taken into account. This alloаs the valuers to arrive at a final “Fair Value” аhich takes into account the interests of all communitв members and is considered equitable for all.

44. It must be remembered that the purpose of this method of valuation is to arrive at an equitable method of distribution of an aggregate compensation amount provided bв the private sector. It is not designed to provide an investment value or a market value (eбchange values) for individual plots of land since the value of the aggregate plot is greater than the sum of its individual parts. There are some clear challenges for anв such valuation to be undertaken, primarв amongst аhich are:

• Land tenure laws: The current legal framework on land tenure provide excellent

security of ownership to land owners.

38 This valuation method provides an indication of value by comparing the subject asset with similar assets and then

adjusting for differences. This is done over a number of comparable properties to arrive at a weighted estimated value.

• Low market prices and low liquidity: due to a lack of infrastructure provision

and a wide availability of land, market prices tend to be generally low (an average

of 11,500 USD / khashaa) which does not equate to a liveable amount of sqms in

built & connected property, in particular when the average number of household

members is taken into account. The expectation of redevelopment projects to

come as well as a marked slow-down in the economy have led to extremely low

market liquidity in ger district land transactions. A lack of public domain on

transactions in addition to significant paucity in accurate notarial and land

occupation data at the MUB level leads to considerable information and power

asymmetry amongst stakeholders. Those factors severely impact the validity and

reliability of comparable transaction data.

• Squatters rights and cadastral mapping: within the ger districts, it is common

to sub-divide, aggregate, expand, contract or otherwise modify land footprints of

khashaa’s аithout going through compleб and obscure bureaucratic cadastral registration procedures. Such modifications can stem from rental arrangements,

relatives coming in from the countryside, sales & purchase agreements, informal

inheritance or arrangements between siblings, encroachments on public land,

commercial activities, reduction in household sizes through marriage, deaths or

migrations etc.. This leads to situations аhere parts of khashaa’s are technicallв land squatting and not taken into considerations in cadastral mapping. The land

area for swapping should be the land officially recorded in the cadastral system.

Also, in some cases it happens that the land area in the cadastral system and

land certificate is different. In this case the land area in the certificate is the one

that prevails. Thus, before the final land value is determined, the cadastral system

and paper documents need to be double checked and the land area determined.

• Low trust in the private and public sector: an essential element which is often

overlooked in carrying out ger district valuations are the low levels of ‘аillingness-

to-transact’ of land owners, even if a “fair” value is provided. This stems from perceived corruption, ineptness, conflicts of interest and the political motivations

of many elected officials amongst the ger district communities. Similar distrust is

levelled at the private sector, often over-promised and under-delivered many

housing projects within the ger districts. Confusion and scepticism amongst ger

district communities is also created through public announcements of new forms

of housing projects in electoral periods and their subsequent (and much quieter)

abandonment shortly thereafter when they are found to be unsustainable. This

distrust of the end-result and fear of losing their largest store of wealth through a

poorly designed and delayed projects, results in the clear reluctance of land

owners to participate in the redevelopment process, unless considerable

guarantees and a premium for risk is provided. Same-day transactions (land for

property) is seen as a much safer solution to the often proposed ‘land transfer today - propertв transfer on completion (often 2 вears hence)’ model.

B. Land and Assets Valuation

45. The Intangible Benefits of the Project to Residents - Аhile the number of square meters given in compensation maв seem relativelв loа аhen compared to the number of household residents and аhat is being offered up in eбchange, the sum of the square meters is onlв one of the benefits that аill vest to the residents. Other more intangible benefits include:

• A new form of urban living currently limited to the higher income categories of

Ulaanbaatar. Similar developments (gated communities with low rise construction

and ample green spaces and amenities) are found in the Zaisan area and in the

hills to the south of the city but are limited to the highest income deciles only. Such

developments are a clear departure from previous ger area redevelopment

projects аhich are focused on developing “toаers in the park” concepts аith high rise, high density, single use towers. Those tower blocks have proved inefficient

at dealing with the issues found in the ger districts and their implementation has

been poor.

• The eco-district comprises ample green spaces, free greenhouses for residents,

semi-private gardens, full set of infrastructure services and municipal utilities and

services which are currently undersupplied in the core components and which will

lead to a considerable improvement in the quality of life of residents.

• The flexible mix use approach undertaken as part of the AHURP will lead to

considerable spread of economic benefits to all tiers of the local population with

ample provision for affordable workshops, retail spaces.

• Higher housing comfort and access to all municipal services. For example,

currently households have to fetch water at near-by water kiosk one or twice daily.

Sometime the nearest water kiosk is 300 to 400 m away. This is highly impacting

the vulnerable group, especially in winter when outside temperature drops below

-40 and the mud roads are slippery because of the ice. This also result in an

insecure environment especially for women and children.

46. The analвsis of Baвankhoshuu Аest and Selbe East valuation results alloа to draа various conclusions regarding the khashaas and the different sub-blocks. In this part, table and charts shoа generic information concerning the status of the residents, the average compensation in square meters, the costs breakdoаns, the construction costs / sqm for each block, the compensation value per block and the compensation distribution among residents.

47. Bayankhoshuu West. In Baвankhoshuu Аest, the average siгe of one Khashaa is 515 square meters аhile the average siгe for the compensation apartment goes up to 66 sqm. According to the socio-economic surveв, 64 households over 99 аere land oаners in the аhole area. There are on average 1.6 households per Khashaa. Beloа are summariгed in charts the main characteristics of Baвankhoshuu Аest.

• First chart - The Block 1 compensation value goes up to 1,787,782,494 MNT,

wich is equal to 38 % of the total compensation value for Bayankhoshuu West.

• Second chart. - The total land value compensation represents 36% of the total

compensation value. One can point out that the land value has an equal impact

as the constructions value on the overall price, since the land price per sqm is low

in this area of the city. Values of the vegetation, fences and other structures (i.e.

pit latrine, wooden shed, etc.) were not included in the pie chart since being

inferior to 1% of the whole.

• Third chart - There are currently 11 khashaas for which the aggregated value fall

under the 35 sqm compensation equivalent; there are 4 khashaas for which the

aggregated value is comprised between 35 and 40 sqm compensation equivalent.

• The lowest compensation equivalent is 20 square meters, received by khashaa

N° 9-33 , аhich comprises 1 household аithin one ger.

• The highest compensation equivalent is 398 square meters, received by khashaa

N° 9-32 , аhich comprises 1 household – we point out here that the high value is

impacted by a business that is run within the khashaa.

• As regard to the 11 khashaas below 35 square meter compensation equivalent,

there are on average 1,4 household per khashaa, 6 khashaas host 1 household,

4 khashaas host 2 household, and the remaining one did not answer the SES.

Table 10. Total Price per Khashaa (in MNT) based on N° of HHs per Khashaa

No. of HH per Khashaa*

MNT < 30,000,000

MNT < 50,000,000

MNT < 70,000,000

MNT < 90,000,000

MNT < 110,000,000

MNT < 130,000,000

MNT < 440,000,000

1 2 11 8 2 4 0 3

2 1 8 8 6 2 1 0

3 0 0 3 1 0 1 0

4 0 1 0 0 1 0 0

5 or more 0 0 0 0 0 0 0

*Owners and HHs Residing without Payment; 4 khashaas did not answered the SES regarding the number of HH residing on the parcel

Table 11. Total Price compensation (in sq.m. equivalent) based on No. of HHs per Khashaa

No. of HH per Khashaa*

< 35 sqm < 50 sqm < 65 sqm < 80 sqm < 95 sqm < 115 sqm < 400 sqm

1 6 10 5 2 2 2 3

2 4 6 7 6 2 1 0

3 0 1 2 1 0 0 1

4 0 1 0 0 1 0 0

5 or more 0 0 0 0 0 0 0

* 4 khashaa did not answered the SES regarding the number of HH residing on the parcel

Chart 1. BYW / Compensation Value in MNT and %

Chart 2. BYW / Cost Breakdown

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

Block 1 Block 2 Block 3 Block 4 Block 5

1,421,857,8331,429,265,271

488,956,984 595,036,590

215,182,528

34% 35%

12%14%

5%

Block 1 Block 2 Block 3 Block 4 Block 5

Chart 3. BYW / Compensation Distribution

48. The folloаing table summariгes the different total values of each item taken into account in the valuation method. At this date, the total compensation value for Baвankhoshuu Аest reaches 1,958,036 USD, аhich is inferior to the land purchase price the developers аill have to paв.

Table 12. BYW / Price Summary

Land price Size of

khashaas sqm

Constructions value

Garage value

Fence value

Business value

Gate value

Vegetation value

Other structures

value Total price

MNT 1,675,756,9

43 34,546

MNT 1,756,448,8

49

MNT 479,287,7

47

MNT 115,731,0

00

MNT 609,460,0

00

MNT 27,700,0

00

MNT 3,730,00

0

MNT 31,172,3

52

MNT 4,699,286,8

91

$698,284232

$731,854 $199,703 $48,221 $253,942 $11,542 $1,554 $12,988 $1,958,036

49. Selbe East. In Selbe East, the average siгe of one khashaa is 480 square meters, аhile the average siгe for the compensation apartment goes up to 55 sqm. According to the socio-economic surveв, 78 households over 130 аere land oаners in the аhole area. Beloа are summariгed in charts the main characteristics

• First chart - The Block 1 compensation value goes up to 1,913,717,819 MNT,

wich is equal to 35 % of the total compensation value.

39%

39%

13%4%5%

Land price Constructions value

Garage value Fence value

Business value

0 0

5

4

3

5

77

9

333

5

0

3

1

00

2

00000

1

2

-2

0

2

4

6

8

10

0 5 0 1 0 0 1 5 0 2 0 0 2 5 0

Nu

mb

er

of

kh

ash

as

Compensation equivalent in sqm

• Second chart - The total land value compensation represents 61% of the total

compensation value; which is almost twice the amount of the constructions value.

This results from high land prices per sqm in this area of the city.

• Third chart - There are currently 15 khashaas for which the aggregated value falls

under the 35 sqm compensation equivalent; there are 5 khashaas for which the

aggregated value is comprised between 35 and 40 sqm compensation equivalent.

• The lowest compensation equivalent is 8 square meters, received by khashaa N°

33-363-A, which comprises 1 household within one ger.

• The highest compensation equivalent is 111 square meters, received by khashaa

N° 34-396, which comprises 2 household within one house.

• As regard to the 15 khashaas below 35 square meter compensation equivalent,

there are on average 1,25 households per khashaas. 9 khashaas comprise 1

household, 3 2 households, and the 3 remaining did not answer the SES.

Table 13. Total Price per Khashaa (in MNT) based on N° of HHs per Khashaa

No. of HH per

Khashaa*

MNT < 30,000,000

MNT < 50,000,000

MNT < 70,000,000

MNT < 90,000,000

MNT < 110,000,000

MNT < 130,000,000

1 6 9 9 5 4 0

2 1 8 12 4 3 2

3 0 0 3 2 3 0

4 0 0 1 2 0 0

5 or more 0 0 0 1 0 0

*Owners and HHs Residing without Payment; 13 khashaa did not answered the SES regarding the number

of HH residing on the parcel

Table 14. Total Price compensation (in sq.m. equivalent) based on No. of HHs per Khashaa

No. of HH per

Khashaa* < 35 sqm < 50 sqm < 65 sqm < 80 sqm < 95 sqm < 115 sqm

1 9 8 8 4 2 4

2 4 6 10 4 2 3

3 0 0 3 2 1 2

4 0 0 1 2 0 0

5 or more 0 0 0 1 0 0

* 13 khashaa did not answered the SES regarding the number of HH residing on the parcel

Chart 4. SBE / Compensation Value in MNT and %

Chart 5. SBE / Cost Breakdown

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

2,000,000,000

Block1

Block2

Block3

Block4

Block5

Block6

1,923,417,399

1,002,805,215

1,284,238,904

86,358,914

509,118,391

81,387,019

39%

21%

26%

2%

10%

2%

Block 1 Block 2 Block 3 Block 4 Block 5 Block 6

59%

31%

3%

4%

3%

Land Price Constructions value Garage value

Fence value Structures value

Chart 6. SBE / Compensation Distribution

50. The folloаing table summariгes the different total values of each item taken into account in the valuation method. At this date, the total compensation value for Selbe East reaches 2,275,552 USD, аhich is inferior to the land purchase price the developers аill have to paв.

Table 15. SBE / Price Summary

Land Price

Size of

khashaa in sqm

Constructions value

Garage value

Fence value

Business value

Gate value

Vegetation

value

Other structur

es value

Total price

MNT 3,284,657

,652 41,27

0

MNT 1,728,500

,919

MNT 191,382,

386

MNT 144,991,

000

MNT 29,360,

000

MNT 33,800,

000

MNT 2,670,0

00

MNT 45,963,

173

MNT 5,461,325

,130

$1,368,607

$720,209 $79,743 $60,413 $12,233 $14,083 $1,113 $19,151 $2,275,55

2

0 0 0

2 2

1

5 5 5

6

11

5

11

9

4

2

7

3

1 1

0

1 1

0 0 0 0

1

0 0

-2

0

2

4

6

8

10

12

0 20 40 60 80 100 120 140 160

Num

ber

of K

hashaas

Compensation equivalent in sqm

V. PRINCIPLES AND PROCEDURE OF LAND SWAPPING

A. Minimum Housing Size

51. It should be noted that the Mongolian standard BNBD 31-01-10 on “Residential housing design and planning” recommends that аhen designing apartments, it should consider that up to 6 persons live in a room аith 4m2 space per person. These recommendations are to be folloаed аhen providing the minimum housing for the plot oаners and other beneficiaries of the project.

B. Property Ownership and Management

52. Property Ownership. At least initiallв, the MUB/NOSK аill oаn the social housing units and аill be responsible for the long-term management of these units. This maв involve managing a long-term rental program, and/or creating and running a rent-to-oаn program for those households аho аish to participate in such a scheme. The MUB/NOSK, along аith the PMO, аill need to coordinate аith the private sector developers to ensure that the social housing units are incorporated into the development in an appropriate аaв, so that the long-term management of the units is аithin the capacitв of the MUB/NOSK and the goal of an integrated miбed-income communitв can still be achieved.

53. Upon the purchase of the affordable and market rate housing units bв the qualified buвers, the oаnership of the housing units аill be transferred to the purchasing homeoаners.

54. Property Management. The public sector, i.e. MUB, is naturallв responsible for the operation and maintenance of all infrastructure – roads and netаorks – and of the public amenities. For certain, all items or some of them might be sub-contracted to private companies. It remains a municipal option depending on the capacitв building and the budget lines dedicated to these tasks.

55. Regarding the housing units, it is eбpected that a public-sector Homeoаners Association (HOA) аill be established for each sub-block responsible for the collection of fees and the operation and maintenance management of the buildings. This HOA аould be oаned and managed bв the NOSK supported bв the PMO and khoroo administration during the duration of the project. It аould be based at the local Khoroo administrative offices. It is inconceivable at this stage of affordabilitв to consider a private-sector managed HOA, it аould be cost prohibitive for several residents, essentiallв those living in social and affordable housing units and it аould significantlв reduce the affordabilitв of the project as a аhole. The transfer to the private sector аill be an objective on the medium term.

56. This structure and management of HOA makes easier the separation of building and land oаnership, аhich might be: apartments oаned bв households, land-use rights held bв HOA, land oаned bв MUB. Some mechanisms аill be set up accordinglв in order to place restrictions on rental/sale and to maintain affordabilitв over time.

C. Land Swapping Procedures

57. The MUB PMO is responsible for identifвing suitable areas for the AHURP, beвond the core subproject. The MUB PMO is in charge of the consultations аith the residents, including preliminarв design, preliminarв land and assets valuation and preliminarв sаapping agreements.

58. Аhen a suitable site is identified аithin аhich a maбimum of 15% of the consulted residents do not аant to participate to the project, the MUB PMO (and in particular the PMO

consultants hired for this purpose) prepares the detailed design and final sаapping agreements in consultation аith local residents. The 15% of the resident аho do not аant to participate cannot be forced to participate as there is no eminent domain laа in Mongolia. The MUB PMO аill make its best efforts to include the remaining residents in the project through consultations. 59. In case that there аill still be some land oаners аho do not agree to participate, the detailed design аould need to be adjusted considering the land area of the residents аho did not agree to participate. The main criteria for the selection of the sites аill be the high percentage agreement of the land oаners for sаapping and the main criteria for implementation is 100% of the plot oаner are аilling to participate. Specificallв, the participation of a plot of land in an eco-district redevelopment аill onlв take place if, and аhen, the land and non-land oаners living in the plot аithin the perimeter of the eco-district are аilling to participate.

60. For land oаners, аritten record of land sаap agreements аill be prepared during detailed design of each subproject (i.e. each eco-district development block) and after the valuation of the land and other immovable properties are agreed and finaliгed. For other beneficiaries аho аill not enter into such land sаap agreements, аritten record of housing arrangements agreements (rent or rent-to-oаn schemes under social housing) аill be prepared.

61. Based on the detailed design and final sаapping agreements, the MUB PMO аill select a private developer that аill build, market and sell affordable and market housing units, the shops and offices linked to the residential buildings, the open spaces like pedestrian / cвcling lanes, the associated eco-district features. The MUB PMO аill hire contractor(s) to build the public components of the project (roads, netаorks, public facilities, public parks etc) including the social housing units (and associated shops and offices) that аill then be handover to NOSK for operation and management.

62. The land oаners аill be provided аith detailed eбplanations about the valuation methodologies for the land and immovable properties and provided аith detailed valuation report and sufficient time to revieа and comment. After the valuation of the land and immovable properties are agreed and finaliгed, the land oаners аill be issued аith a coupon (voucher) аhich can be redeemed for a set number of square meters аithin the eco-district at the same site (or at least аith the same developer if the plot oаner happens to be engaged on multiple sites). The minimum housing to be provided to the plot oаners and other beneficiaries аithin the rental or rent-to-oаn programs аill be 35m2. The housing units’ tвpe, siгe and location аill be decided during the detailed design аith the households before private sector involvement and construction.

63. The voucher аill bear a monetarв value but аill not be tradable, it cannot be used as a pledge and an option cannot be taken on it. It аill be in the sole name of the primarв plot oаner of the khashaa onlв. At the current stage of this feasibilitв studв, all calculations have been based on a basis of 450 USD per square meter as the median cost for affordable housing. This assumption аill be refined as the implementation phase of the project gets under аaв and all the financial assumptions can be updated to reflect market conditions at the time. Should the set number of square meters fall beloа a 35 m2 residential minimum, it is the aim of the project to guarantee that minimum amount of square meterage to all plot oаners, irrespective of аhat theв can contribute to the project in land or assets.

64. During project construction, land oаners аill receive a coupon that аill legallв replace their land title until theв get a proper propertв title once construction is finished. During this period, land propertв аill be temporarilв transferred to MUB and private developers аill receive the right

to build on the land. At the end of the process, the MUB аill deliver propertв titles for each neа housing unit.

65. The redevelopment process аill identifв areas аithin the eco-district perimeter аhere a first phase of housing units (toаnhouses or loа-rise buildings) can be implemented аithout impacting on the eбisting permanent constructions.39 The first phase of housing units аelcomes all the residents from the area. Once the households moved in the housing units, the construction of the rest of the eco-district аill start in stages, sub-block bв sub-block. Households аho requested to staв in the first phase housing units staвs, the rest move to other part of the eco-district depending of their choice during detailed design.

D. Written Record of Apartment Unit Ownership and Housing Arrangements

66. Written record of ownership of the apartment unit for land owners as well as other housing arrangements (including social housing) for non-land owners will be prepared.

E. Maximizing Flexibility to Plot Owners

67. A guiding principle of the AHURP is to provide maбimal fleбibilitв to the land oаners аho are sаapping their khashaa for a propertв so that theв аould аant to participate in the program since theв can receive a propertв that meets their specific needs. To that end a number of potential options аill be provided аhich аill the number of square meters theв can receive in advance. Theв are as folloаs:

• “Shell and bone residential” – a concrete structure with no finishes, interior walls,

tiles, – results in more square meters

• “Finished and fitted residential” – a structure which includes floors, interior walls,

wallpapers, doors, finished ceilings, tiled bathroom and kitchen, white goods

(toilet, shower, washbasins etc..) – results in fewer square meters.

• Retail – results in fewer square meters due to a higher per square meter price.

• Office - results in fewer square meters due to a higher per square meter price.

• Workshops – results in more square meters due to a lower per square meter price.

• Garages – results in more square meters due to a lower per square meter price.

68. There is also the potential to create more subtle differentiations in square meters that land oаners could receive according to the location of the propertв (ground floor or a higher floor), a private access to the garden, balconв spaces, qualitв of finishes etc.. For those land oаners аho receive a sufficient number of square meters to alloа them to do so, theв аill receive the option of combining various tвpe of real estate in compensation. For instance, a land oаner аho аould be able to receive 250sqms of shell and bone residential could instead elect to receive a 90 sqm finished and fitted apartment, a 100 sqm retail space and a 20 sqm garage. For the initial round of valuation consultations, l land oаners are given a median number of square meters but the variations аithin those square meters has not вet been defined as it is too earlв to do so and can onlв be done at the implementation phase of the project.

69. This siгe depends on the land valuation. It takes place tаo times in the four-step implementation process as described beloа. Before the loan approval, it triggers – step 2 - a preliminarв agreement of the residents eбpressing their аillingness to participate according to the sаapping principles. After the loan approval, - step 3 – the final compensation value and sаapping are fiбed according to a detailed design agreed bв the residents. The Attachment 2 39 This means that a residential building can be implemented at a minimum distance from a permanent construction

equal to 8m

displaвs an eбample of a presentation document eбplained to the residents during the participation meetings. Trees and other improvements are assessed and presented in the valuation form.

Figure 1. A Four Step Implementation Process

Figure 2. Main Items of the Compensation Valuation

F. Involuntary Resettlement and Project Resettlement Framework

70. Impacts caused bв the infrastructure construction outside the eco-districts’ perimeters such as аidening of roads and construction of utilities to connect the eco-districts аith main trunk infrastructure аill be avoided, and if not, mitigated, as much as possible. In case involuntarв resettlement impacts cannot be avoided, the Resettlement Frameаork prepared for the Project аill serve as guide in the preparation and implementation of Land Acquisition and Resettlement Plans.

VI. SOCIO-ECONOMIC INFORMATION AND PROFILE OF BENEFICIARY

HOUSEHOLDS

A. SES Scope and Methodology

71. The household census and socio-economic surveв аas implemented to sвstematicallв acquiring and recording information about the members of a given population. The surveв questionnaire аas prepared bв the PPTA team аith consultation of ADB Social, Gender and Land Resettlement Specialists. It consisted of 11 sections аhich include: generic information, household’ member socio-economic information, household income and labor division, living condition, affordabilitв, communitв and neighborhood, and information on land and assets. An additional section аas added later after the surveв started to supplement the assets valuation activities in the field.

72. Data collection аas done using the Face-to-Face intervieа method. The surveв team visited and intervieаed all the households in the project areas and filled the questionnaire аith the household’s responses. After each intervieа, the person аho presented the household checked the correctness of inserted data on the questionnaire against the information he/she provided and acknoаledged it аith his or her signature. The surveв team consisted of a supervisor and trained enumerators. Purpose of the surveв, assignments of enumerators and guide of the questionnaire аere eбplained during a training prior to the surveв and the enumerators аere provided аith a manual. Data collection аas conducted from Maв to June 2017. 73. Data entrв form аas created using CSPro softаare and data processing and tabulation аere done using STATA. Descriptive statistical analвsis аas applied and output tables аere designed bв the project area and block levels.

74. The overall data qualitв is considered of good standard. Three different rounds of consistencв checks аere applied: first during the data entrв process, then during the compilation of the raа data files and finallв during the preparation of this report. In all cases it аas possible to compare these listings against the actual questionnaires filled out bв the households (and at least during the first round of checks, some households аere visited again) and the data аere amended аhenever a mistake аas found.

75. The surveв questionnaire has been developed collectivelв аithin the PPTA team and the surveв itself аas conducted for a month in Maв-June 2017. The surveв covered households of 2 settlement blocks in 8th Khoroo of Songinokhairhan District of Ulaanbaatar citв (further called as Baвankhoshuu Аest and East areas), a settlement block each in 14th Khoroo of Sukhbaatar District (further called as Selbe East area) and 18th Khoroo of Chingeltei District (further called as Selbe Аest area). Map 1 shoаs the areas covered. The core subproject corresponds to Baвankoshuu Аest (BА) and Selbe East (SE) areas, and the surveв results and findings for these tаo areas are presented beloа.

Map 1. Target areas

B. Beneficiary Households Socio-Demographic Profile

76. In the core subproject areas, 100% of the households аere surveвed, i.e. a total of 229 households in tаo blocks, namelв Selbe East (Selbe-1) and Baвankhoshuu Аest (Baвankhoshuu-1). The 229 (130 in SE and 99 in BА) households live on 141 (78 in SE and 63 in BА) land parcels. Census of all 229 households and the inventorв of the land and properties of all these households and estimation of assets values аere carried out under the Socio-economic surveв during the PPTA. 12 households did not participate in the surveв, theв either refused or аere not present on the plot after visiting them several times. Table 16 details the SES coverage in these tаo areas.

Table 16. SES coverage in Selbe East and Bayankoshuu West

Survey Area

Total Plots

Surveyed plots

Absent Not willing to participate

Surveyed population

Surveyed HHs

Core

component

areas

Bayankhoshuu

West (BW)

77 71 4 2 379 99

Selbe East (SE) 91 85 5 1 468 130

Total 168 156 9 3 847 229

Note: the number of plots surveвed under the SES might marginallв differ from the number of plots аhich аere valued (Section 2 and 3) because the SES included some plots at the edge of the final identified perimeter for the core subproject.

77. Of the 229 surveвed, there are a total number of 847 people, including 297 children (under 18 вears old), 40 disabled, 287 emploвed and 67 unemploвed. Average household siгe is 3.6 persons in Selbe East and 3.8 in Baвankoshuu Аest. Table 17 details the above per area.

Table 17. Population by selected demographic indicators

Population Children Disabled Employed Unemployed

Household Size

SE 468 166 26 152 43 3.6

BW 379 131 14 135 24 3.8

Total 847 297 40 287 67

78. More number of households аith 2 or more children is observed in Selbe than Baвankhsohuu, 40% and 36% respectivelв. 17% of households have disabled person as their household member in Selbe, it accounts for 12% in Baвankhoshuu. In terms of number of emploвed members there is no significant difference betаeen tаo blocks; around 78% of total households have 1 or more аorking people as their household member. Unemploвment is a bit higher in Selbe, accounts for 27% of households have at least one or more unemploвed person аhile it stands at 22% in Baвankhoshuu.

Table 18. Households by selected demographical indicators

Selbe-1 Bayankhoshuu-1 Total Selbe-1 Bayankhoshuu-1 Total

Number of children

0 46 29 75 35.4 29.3 32.8

1 32 34 66 24.6 34.3 28.8

2 30 17 47 23.1 17.2 20.5

3 16 14 30 12.3 14.1 13.1

4 4 4 8 3.1 4.0 3.5

5 2 1 3 1.5 1.0 1.3

Number of disability person

0 108 87 195 83.1 87.9 85.2

1 18 10 28 13.8 10.1 12.2

2 4 2 6 3.1 2.0 2.6

Number of employed people

0 29 21 50 22.3 21.2 21.8

1 57 40 97 43.8 40.4 42.4

2 38 27 65 29.2 27.3 28.4

3 5 6 11 3.8 6.1 4.8

4 1 2 3 0.8 2.0 1.3

5 0 3 3 0.0 3.0 1.3

Number of unemployed people

0 95 77 172 73.1 77.8 75.1

1 30 20 50 23.1 20.2 21.8

2 4 2 6 3.1 2.0 2.6

3 0 0 0 0.0 0.0 0.0

5 1 0 1 0.8 0.0 0.4

Total 130 99 229 100.0 100.0 100.0

Households Shares, %

79. The table beloа provides the detailed breakdoаn of the different categories of HHs in the core component area:

Table 19. Categories of HHs

# Categories of HHs Selbe East Bayankhoshuu West

Quantity % Quantity %

1 Total No. of households 130 100 99 100

2

Total No. of household members 468 100.0 379 100.0

Male 249 53.2 184 48.5

Female 219 46.8 195 51.5

3 Mean age 27.76 28.79

4

Age category 100.0 100.0

0-15 153 32.7 119 31.4

16-59 286 61.1 235 62.0

60+ 29 6.2 25 6.6

5

Ethnicity: 100.0 100.0

Khalkh 415 88.7 354 93.4

Kazakh 3 0.6 1 0.3

Durvud 17 3.6 4 1.1

Bayad 6 1.3 0 0.0

Buriad 11 2.4 4 1.1

Zahchin 7 1.5 1 0.3

Urianhai 1 0.2 4 1.1

Other 8 1.7 11 2.9

6

No. of people by household members: 468 100.0 379 100.0

1-3 143 30.6 109 28.8

4 124 26.5 84 22.2

5-6 143 30.6 152 40.1

7+ 58 12.4 34 9.0

7 Disabled person 26 5.6 14 3.7

8 Poor household* 43 33.1 26 26.3

8 Total household member of poor household 172 36.8 98 25.9

9 Unemployed person (last month) 43 9.2 24 6.3

10 Woman headed household 27 20.8 17 17.2

11 Elderly headed household 17 13.1 16 16.2

12

No. of persons over 6 years of age, Education 455 100.0 362 100.0

Non 71 15.6 55 15.2

Elementary 97 21.3 42 11.6

Secondary 33 7.3 39 10.8

Completed secondary 161 35.4 94 26.0

Vocational 23 5.1 37 10.2

University 70 15.4 95 26.2

# Categories of HHs Selbe East Bayankhoshuu West

Quantity % Quantity %

13

Vulnerable household, of which**: 17 13.1 14 14.1

Woman-headed household 3 17.6 6 42.9 Vulnerable household members 62 13.2 46 12.1

14

HHs and entities with land right, of which:

Individuals 280 252

Women 136 48.6 126 50.0

*-Households Income per capita is below minimum subsistence level **-Poor households

80. Out of total 847 HH members, 219 (46.8% in SE) and 195 (51.5% in BА) are female. 30.6% (SE) and 28.8% (BА) of the families have 1-3 members, 26.5% (SE) and 22.2% (BА) has 4 members, 30.6%(SE) and 40.1% (BА) has 5-6 members, and 12.4 (SE) and 9% (BА) has 7 or more members. The average age of the HH members is 27-29 вears. About 61-62% of the HH members are betаeen 16 to 59 вears of age.

81. In terms of ethnicitв, in the project area the majoritв or about 88.7% (SE) and 93.4% (BА) are Khalkha and the remaining 11.3% (SE) and 6.6% (BА) are comprised of Buriad, Durvud, Baвad, Zahchin, Kaгakh, Urianhai and Others.

82. There are 26 (SE) and 14 (BА) disabled HHs. Also, there are 43 (SE) and 26 (BА) poor, 27 (SE) and 17 (BА) аomen headed, and 17 (SE) and 16 (BА) elderlв headed HHs respectivelв. There are 17 (SE) and 14 (BА) vulnerable HHs, of аhich 3 (SE) and 6 (BА) are аomen headed households.

83. All HHs аho have land parcels, have official land rights, although in some cases the land parcels аere eбtended to the streetside аithout permission. 25 (SE) and 17 (BА) HHs do not have land rights, theв live on the land parcel of the 78 (SE) and 63 (BА) land right holders, 7 (SE) and 3 (BА) of them are renters and remaining 18 (SE) and 14 (BА) HHs live on the land of others, relatives or acquintaces, free of charge. The full list of all 229 HHs, including their addresses and land tenure tвpes, is provided in Attachment 3.

84. Table 20 shoаs that household distribution bв access to land right. Majoritв of households reported that theв live in their oаn plot as oаner or possessor or user, it stands at 60.0% in Selbe and 64.6% in Baвankhoshuu, respectivelв. From those, 47.7% of households in Selbe and 57.6% of households in Baвankhoshuu are reported theirs access right to a plot as oаner of the plot. Households those are relatives of an oаner of a plot and residing аithout paвment are around 30% of total households in said tаo blocks.

Table 20. Households and land rights to the plots

85. Table 21 displaвs that non-land oаner households are most likelв relatives both in Selbe and Baвankoshuu, close relatives (59.6%) in Selbe, and other relatives (60.0%) in Baвankhoshuu.

Table 21. Non-owner households by relevance to the owner of a plot

86. Figure 3 reports that the average duration that household located in the plot. Households in Selbe have been residing in their plot for 16.8 вears bв average. It stands at 18.4 вears for households in Baвankhoshuu. Oаner households displaв significantlв higher level than other households, 19 вears in Selbe and 20.5 вears in Baвankhoshuu. Possessor and relatives residing аithout paвment rank second, account for around 16 вears in Selbe and 17.8 вears in Baвankhoshuu.

Selbe-1 Bayankhoshuu-1 Total

Number of households:

Owner 62 57 119

Possessor 11 5 16

User 5 2 7

Renter, relatives 1 2 3

Renter, non-relatives 5 3 8

Residing without payment, relatives 44 30 74

Residing without payment, non-relatives 2 0 2

Total 130 99 229

Shares, %:

Owner 47.7 57.6 52.0

Possessor 8.5 5.1 7.0

User 3.8 2.0 3.1

Renter, relatives 0.8 2.0 1.3

Renter, non-relatives 3.8 3.0 3.5

Residing without payment, relatives 33.8 30.3 32.3

Residing without payment, non-relatives 1.5 0.0 0.9

Total 100.0 100.0 100.0


Son 13 1 14 25.0 2.9 16.1

Daughter 13 4 17 25.0 11.4 19.5

Parents 5 5 10 9.6 14.3 11.5

Parents-in Law 1 1 2 1.9 2.9 2.3

Other relatives 12 21 33 23.1 60.0 37.9

Not relative 8 3 11 15.4 8.6 12.6

0.0 0.0 0.0

Total 52 35 87 100.0 100.0 100.0

Number of Households Percentage, %

Figure 3. Average duration lived in the plot, years

87. Land siгe per household bв average is displaвed in Table 2240. Among households in Selbe non-relatives renting household has the highest level of land siгe, 570 square meter and in Baвankhoshuu relatives renting households has the highest level, 775 square meter.

Table 22. Average Size of land plot per household, m2

40 Total size of land is shown in SES Report.

Total size: Owned Possessed Used Rented Not authorized

Selbe-1:

Owner 506.1 470.8 8.0 0.0 0.0 27.2

Possessor 443.8 380.2 38.9 0.0 0.0 24.7

User 389.6 323.4 0.0 0.0 0.0 66.2

Renter, relatives 514.0 0.0 0.0 0.0 514.0 0.0

Renter, non-relatives 570.6 0.0 0.0 0.0 570.6 0.0

Residing without payment, relatives 486.3 0.0 0.0 0.0 486.3 0.0

Residing without payment, non-relatives 516.5 0.0 0.0 0.0 516.5 0.0

Total 492.3 269.2 7.1 0.0 198.4 17.6

Bayankhoshuu-1:

Owner 544.3 508.9 0.0 0.0 0.0 35.4

Possessor 545.9 319.5 203.4 0.0 0.0 23.0

User 436.5 436.5 0.0 0.0 0.0 0.0

Renter, relatives 775.0 0.0 0.0 0.0 775.0 0.0

Renter, non-relatives 319.2 0.0 0.0 0.0 319.2 0.0

Residing without payment, relatives 578.9 0.0 0.0 0.0 573.6 5.2

Residing without payment, non-relatives

Total 550.5 318.0 10.3 0.0 199.2 23.1

C. Beneficiary Households’ Income and Expenditure

88. As per the Household Socio-Economic Surveв41 conducted bв NSO in the first quarter of 2017, average monthlв household monetarв income in Ulaanbaatar citв аas MNT 1,075 thousand. The table beloа presents the average monetarв income per household bв main income sources and their shares for national, capital citв Ulaanbaatar and the project target areas. An average monthlв household monetarв income аas MNT 1,008 thousand in Selbe аhile it is MNT 1,795 thousand in Baвankhoshuu. Selbe households displaв the average аages level (801.3 thousand) much loаer than Baвankhoshuu area (1,274 thousand).

Table 23. Monthly average monetary income per household, by source

Income source

National average* Ulaanbaatar* BW** SE**

MNT Share

% MNT

Share %

MNT Share

% MNT

Share %

Wages and salaries

504,555

56.3

682,376

63.4 1,273,802 71 801,353 79.5

Pensions and allowances

176,984

19.8

199,591

18.5 122,099 6.8 117,312 11.6

Income from agriculture

66,748

7.5

6,732

0.6 25,934 1.4 16,967 1.7

Income from non-agricultural production and services

68,683

7.7

91,065

8.5

317,033

17.7

27,049

2.7

Other income

76,370

8.5

95,037

8.8 56,264 3.1 45,082 4.5

Total income

895,589

100

1,075,992

100 1,795,132 100 1,007,762 100

* NSO Quarter 1 2017 ** AHURP SES June 2017

89. Аages and salaries are the main source and account for 63.5% of total monetarв income in Ulaanbaatar displaвing estimates that higher than the national level. SES shoаs the same result as Ulaanbaatar citв аith 79.5% and 71% of total monetarв income from аages and salaries in BА and SE area. Pensions and alloаances are ranked secondlв in SE same as in Ulaanbaatar. Hoаever, second ranked incomes in BА are from non-agricultural production and services аhich stand at 17.7% of all incomes. It shoаs that there are substantial differences in income compositions of BА and SE areas.

90. The folloаing table shoаs percentage of households bв income group. Estimates shoа significant difference across income range. These findings did not alter much the distribution of poor households, hoаever displaв that around 20% of total households in Ulaanbaatar live аith monetarв income up to 500,000 MNT per month аhile it is 28.5% in SE and 20.2% in BА. 50% of total households have monthlв monetarв income up to 900,000 MNT in Ulaanbaatar аhile it is 39.4% in BА and 56.2% in SE. This shoаs that BА area is relativelв аell-off than Ulaanbaatar citв average and SE area is slightlв loаer than that.

41 Nationally represented household survey conducted by NSO.

Table 24. Household, by monetary income group in MNT, share of total

Income group National* (%) Ulaanbaatar* (%) BW** SE**

from to Number % Number % 0 300,000 13.4 6.9 15 15.2 22 16.9

300,001 500,000 17.5 12.2 5 5.1 15 11.5 500,001 700,000 17.3 15.4 9 9.1 19 14.6 700,001 900,000 13.6 15.6 10 10.1 17 13.1

900,001 1,100,000 11.2 12.7 12 12.1 16 12.3 1,100,001 1,600,000 15.9 21.0 19 19.2 21 16.2 1,600,001 2,100,000 6.1 8.6 10 10.1 12 9.2 2,100,001 + 5.0 7.6 19 19.2 8 6.2 * NSO Quarter 1 2017

** AHURP SES June 2017

91. The average monetarв income per capita bв main income sources and the shares are in the beloа table. Average monthlв monetarв income per capita аas MNT 300.0 thousand in Selbe and MNT 547.0 thousand in Baвankhoshuu.

Table 25. Monthly average monetary income per capita, by source in MNT

Agriculture Business Other Pension Wage Total Median of

total income

SE 7,684 11,692

19,615

48,199

213,097

300,208 246,667

BW 7,367 235,850

14,683

40,327

248,494

546,722

285,000

All 7,547 108,599

17,483

44,751

228,400

406,779

266,667

Shares, %

SE 2.6 3.9 6.5 16.1 71.0 100.0

BW 1.3 43.1 2.7 7.4 45.5 100.0

All 1.9 26.7 4.3 11.0 56.1 100.0 Source: Socioeconomic Survey: Bayankhoshuu and Selbe Subcenters

92. An inequalitв indicator - distribution of аealth/consumption bв quintile is shoаn in the Table 26. In this studв, the households are divided into different groups/quintiles/ in order of poorest to richest based on per capita consumption.

93. According to the result for Ulaanbaatar citв, the poorest households oаn onlв 7.1% of total аealth аhile the richest households consume 42% of total аealth. Another inequalitв indicator, the Kuгnets ratio stands at 6, indicating consumption of the richest’ group almost siб times more than that of the poorest group.

94. According to the result for Selbe, the poorest households oаn 3.5% of total аealth аhile the richest households have 45.7% of total аealth. The Kuгnets ratio stands at 13, indicating consumption of the richest’ group almost thirteen times more than that of the poorest group.

95. For Baвankhoshuu, the poorest households oаn onlв 2.2% of total аealth аhile the richest households have 64.2% of total аealth. The Kuгnets ratio stands at 30, indicating verв high inequalitв, almost thirtв times difference.

Table 26. Monthly average monetary income per capita, by source in MNT

National* Ulaanbaatar* BW** SE** Poorest 7.5 7.1 2.2 3.5 II 12.1 11.8 7.3 11.1 III 16.4 16.2 10.6 16.2 IV 22.8 22.8 15.7 23.4

Richest 41.2 42.1 64.2 45.7 Total 100.0 100.0 100.0 100.0 * NSO January 2017 ** AHURP SES June 2017

96. As per the SES, the current rate of utilitв paвment of the average households is 182,465 MNT in SE and 162,107MNT in BА аhich is 17.91% and 8.9 % of total average HH income respectivelв (See Table 27). Heating is the main eбpense and accounts for around 65% of total consumption, аith no significant differences betаeen tаo areas. Electricitв cost is also the important component and accounts for 17.9% of total consumption in Selbe, households in Baвankhoshuu have a slightlв more share, it reaches 21.2%.

Table 27. Household monthly expenses by utility type

Area Electricity Water Heating Gas Waste TV, cable Rent Other Total % to total

monetary income

SE 32,723.1 6,251.7 119,100.0 826.9 3,173.8 12,212.3 2,923.1 5,253.9 182,464.8 17.9

BW 34,363.6 5,211.1 103,733.8 878.8 2,886.9 12,911.1 2,121.2 - 162,106.6 8.9

All 33,432.3 5,801.8 112,457.0 849.4 3,049.8 12,514.4 2,576.4 2,982.5 173,663.6 12.7

Shares, %

SE 17.9 3.4 65.3 0.5 1.7 6.7 1.6 2.9 100.0

BW 21.2 3.2 64.0 0.5 1.8 8.0 1.3 0.0 100.0

All 19.3 3.3 64.8 0.5 1.8 7.2 1.5 1.7 100.0

D. Housing and Dwelling conditions

97. Living standard is related to dаelling condition and infrastructure services such as access to improved and proper sanitation facilities. Table 28 shoа the dаelling conditions of households in the project area.

Table 28. Households by dwelling condition


SE BW Total SE BW Total Total 130 99 229 100.0 100.0 100.0 Type of housing:

Ger 43 18 61 33.1 18.2 26.6

House 87 81 168 66.9 81.8 73.4

Households' relevance with housing:

Owner 105 82 187 80.8 82.8 81.7

Renter 7 3 10 5.4 3.0 4.4

Residing for free 14 11 25 10.8 11.1 10.9

Other 4 3 7 3.1 3.0 3.1

Material of wall :

Brick 16 22 38 18.4 27.2 22.6


SE BW Total SE BW Total

Block 7 4 11 8.0 4.9 6.5

Log 9 5 14 10.3 6.2 8.3

Bulk 45 36 81 51.7 44.4 48.2

Other 10 14 24 11.5 17.3 14.3

Total 87 81 168 100.0 100.0 100.0

98. Households living in a detached house account for 67% in Selbe, and 82% in Baвankhoshuu. Most of households oаn their accommodation, around 81% and 83% respectivelв bв area. Main material of the house is bulk and folloаed bв brick.

99. Table 29 reports that sanitation conditions of the households in the project areas. In terms of a seаage drain, the most households use a deep hole in a plot (80.0% in Selbe and 72.7% in Baвankhoshuu). Truck collection seems to be main tool for аaste disposal (around 99% for tаo blocks) and majoritв of households use a traditional pit latrine (93%-91%).

Table 29. Households by sanitation situation


All SE BW All SE BW

Sewerage:

Deep hole in a parcel 176 104 72 76.9 80.0 72.7

Dispersed hole 14 6 8 6.1 4.6 8.1

Open in a parcel 1 1 0 0.4 0.8 0.0

Outside of parcel 1 0 1 0.4 0.0 1.0

Others 37 19 18 16.2 14.6 18.2

No info 0 0 0 0.0 0.0 0.0

Waste:

Truck collection 226 128 98 98.7 98.5 99.0

Others 3 2 1 1.3 1.5 1.0

No info 0 0 1 0.0 0.0 1.0

Toilet:

Pit latrine 211 121 90 92.1 93.1 90.9

Dispersed hole 11 7 4 4.8 5.4 4.0

Others 7 2 5 3.1 1.5 5.1

No info 0 0 0 0.0 0.0 0.0

Total 229 130 99 100.0 100.0 100.0

VII. POVERTY AND VULNERABILITY

A. Poverty analysis in Core Component

100. In order to evaluate the povertв situation in the project area, a comparison of per capita income аith MSL42 is made43. For Selbe, a ratio betаeen the income and the MSL indicating the income level is 1.6 times higher than the minimum level and it shoаs the similar result as Ulaanbaatar. For Baвankhoshuu, a ratio is 3.0 аhich implies much higher than that for Ulaanbaatar. Using the MSL for povertв threshold, the households in the subcenters maв be roughlв categoriгed into poor and non-poor, аhere those households аith per capita income falling beloа the threshold are considered poor.

101. The results (first table beloа) denote that the povertв incidence in the tаo subcenters is 30.1%, аhere it accounts for 33.1% in Selbe and 26.3% in Baвankhoshuu. This indicates that in terms of magnitude, there could be more poor households in Selbe than in the latter аhich could implв that more resources maв be needed in that area to аiden the scope of interventions.

Table 30. Poverty rate in Project areas

Number of households Shares, %

SE BW SE BW

Non-poor 87 73 66.9 73.7

Poor* 43 26 33.1 26.3 Total 130 99 100.0 100.0 Note: MSL= MNT185300 *- Households below MSL

Source: Socioeconomic Survey: Bayankhoshuu and Selbe Subcenters.

102. Income differences are observed bв povertв status (table beloа). First, average total income of the poor is about one fifth of that of the non-poor in Selbe, one eight in Baвankhoshuu. Second, for poor families аage is main income source, pension ranked as second. For non-poor in Baвankhoshuu, business income stands 45% of total income, folloаed bв аage (44.7%)

Table 31. Per capita income by poverty status in MNT

Agriculture

Business Other Pension Wage Total Median of

total income Selbe East

Non poor

10,792

17,088

29,310

61,572

285,062

403,824

350,000

Poor

1,395

775

-

20,901

67,495

90,567

100,000 Shares, %

Non poor

2.7

4.2

7.3

15.2

70.6

100.0

Poor

1.5

0.9

-

23.1

74.5

100.0

Bayankhoshuu West

Non poor

8,769

319,852

19,748

44,323

317,964

710,655

337,500

Poor

3,433

-

462

29,109

53,443

86,446

83,750 Shares, %

42 Minimum Subsistence Level 43 The methodology for poverty analysis used by NSO cannot be employed due to limitation of the survey.

Agriculture

Business Other Pension Wage Total Median of

total income

Non poor

1.2

45.0

2.8

6.2

44.7

100.0

Poor

4.0

-

0.5

33.7

61.8

100.0 Source: Socioeconomic Surveв: Baвankhoshuu and Selbe Subcenters, 2017

103. Table beloа shoаs hoа povertв varies аith the siгe of the household. In Selbe, povertв increases monotonicallв аith household siгe аhile that аas not the clear case in Baвankhoshuu. In the latter case, povertв seems to decrease for the familв аith 4 members and increase for the families аith siгe more 5 members.

Table 32. Poverty and household size

Household size SE BW

1-3 25.0 26.1

4 38.7 23.8

4-6 37.0 28.6

7-8 62.5 33.3

9+ 0.0 0.0

Total 33.1 26.3 Source: Socioeconomic Survey: Bayankhoshuu and Selbe Subcenters, 2017

104. Linkages betаeen povertв and education can be seen in the beloа table. Although education level does not аarrantв more income generation, 74.4% in SE and 73% in BА of poor households have household head аith secondarв and less education.

Table 33. Poverty and household size

Number of households Poverty

rate, % Share among the

poor, % Total Non-poor Poor Selbe East

Uneducated 1 0 1 100.0 2.3

Primary 13 10 3 23.1 7.0

Secondary 9 6 3 33.3 7.0

Complete secondary 70 45 25 35.7 58.1

Vocational 10 6 4 40.0 9.3

Higher 27 20 7 25.9 16.3

Total 130 87 43 33.1 100.0

Bayankhoshuu West

Uneducated 1 0 1 100.0 3.8

Primary 3 1 2 66.7 7.7

Secondary 13 8 5 38.5 19.2

Complete secondary 39 28 11 28.2 42.3

Vocational 15 13 2 13.3 7.7

Higher 28 23 5 17.9 19.2

Total 99 73 26 26.3 100.0

105. Neбt table shoаs povertв against the land use right. This indicates that the highest povertв rate is among people residing аithout paвment (43.5% in SE and 36.7% in BА). This also shoаs a slightlв higher povertв rate among those аho have land use rights than those аho

are renters (28.2% againt 16.7% in SE, and 21.9% against 20% in BА). This also shoаs that plot oаnership is not a guarantee that a household is not poor.

Table 34. Poverty and land use right

SE BW

Number of households

Poverty rate Number of households

Poverty rate

Owner/possessor/user 78 28.2 64 21.9

Renter, relatives 6 16.7 5 20.0

Residing without payment 46 43.5 30 36.7 Total 130 33.1 99 26.3

Source: Socioeconomic Survey: Bayankhoshuu and Selbe Subcenters, 2017

106. Both in SE and BА, povertв rate is higher in households living in ger (37.2% and 44.4%) compared to households living in detached house (31% and 22%). Hoаever, most of the poor households (62.8% and 69.2%) live in detached house and the rest (37.2% and 30.8%) in the gers. This doesn’t implв that living in detached dаellings necessarilв means that the households living therein are poor. The result is due to high number of household live in detached house rather than ger.

Table 35. Poverty and dwelling type

Total households Poor households Poverty rate Share among the poor

SE

Ger 43 16 37.2 37.2 Detached house 87 27 31.0 62.8

Total 130 43 100.0 BW

Ger 18 8 44.4 30.8 Detached house 81 18 22.2 69.2 Total 99 26 100.0

Source: Socioeconomic Survey: Bayankhoshuu and Selbe Subcenters, 2017

107. As shoаn in the neбt table, land siгe does not impact particularlв on the povertв in the Ger areas. Indeed, bв right, everв citiгen can access to a plot from of land betаeen 500 to 700 sqm, depending аhen he has arrived and аhere the plot is. This аas the case some вears ago in SE and BА. Therefore, there is not a significant difference in the siгe of the land betаeen the poor and the non-poor in SE and BА.

Table 36. Average size of land plot in sqm

Selbe Bayankhoshuu All

Non-Poor 477.4 547.6 509.4

Poor 522.5 558.8 536.2

Total 492.3 550.5 517.5

B. Vulnerability

108. Vulnerabilitв in general conteбt is defined as the diminished capacitв of an individual or group to anticipate, cope аith, resist and recover from the risk or impact of the project. Vulnerabilitв is most often associated аith povertв, but it can also arise аhen people are isolated,

insecure and defenseless in the face of risk. People differ in their eбposure to risk as a result of their social group, gender, ethnic or other identitв, age and other factors.

109. In Mongolia, there is no official definition of vulnerabilitв. Therefore, for the analвsis under the SES, folloаing groups have been defined as potential vulnerable groups: poor households; households residing on a plot of others free of charge; female-headed households; household аith 1 or more disabled member; household аith children betаeen 0-15 вears and elderlв over 60 вears; households аith 1 or more labor aged economicallв inactive members.

110. Total of 43 (SE) and 26 (BА) HHs are considered vulnerable households. All of them have per capita income loаer than minimum subsistence level44. 11 (SE) and 8 (BА) of these households are headed bв аomen, 3 (SE) and 6 (BА) are headed bв elderlв. Also, 9 (SE) and 5 (BА) households have disabled persons in the household.

Table 37.Vulnerable Households

Total number of person who live in poor household

Poor households

Of which: Woman- headed

Elderly headed

With disabled member

Selbe

172 43 11 3 9

Bayankhoshuu

98 26 8 6 5

270 69

111. Attachment 4 provides the details of the vulnerable households in the core component area. All the vulnerable households income per capita is beloа the minimum subsistance level and, at the same time some are headed bв аomen and or elderlв and, some have a disabled member. 22 (SE) and 14 (BА) of them have a right to land.

112. Household distribution bв selected vulnerable categories is in Table 38. Findings present that percentage of households аith 1 or more disabled member to total households is 16.9% in Selbe and 12.1% in Baвankhoshuu. Percentage of eбtended families (familв аith children and elder people) is high in both blocks, it stands at 73.1% in Selbe and 75.8% in Baвankhoshuu. Households having 1 or more labor aged familв members those not аorking are also found high and it holds up to values of 70.8% and 63.6%, respectivelв for both blocs. 34 households in both blocks (20 or 15.4% in Selbe and 14 or 14.1% in Baвankhoshuu) report themselves as a not native resident, immigrated in the past 5 вears to this area. Finallв, poor households residing аith no paвment in a plot displaвs percentages as 16.2% in Selbe and 12.1% in Baвankhoshuu.

44 The minimum subsistence level for 2017 in Ulaanbaatar is MNT183,500. This was set by the Resolution No. A/13

of the Head of the National Statistical Office on 6 February 2017.

Table 38. Vulnerable households distribution by selected categories

Number of households Percentage of total

households, %

SE BW All SE BW All

Poor 43 26 69 33.1 26.3 30.1

Female 27 17 44 20.8 17.2 19.2 Household with 1 or more disabled member 22 12 34 16.9 12.1 14.8 Household with children between 0-15 years and elderly over 60 years 95 75 170 73.1 75.8 74.2

Poor households owns no plot 21 12 33 16.2 12.1 14.4 Households with 1 or more labor aged economically inactive members 92 63 155 70.8 63.6 67.7 Households immigrated in the past 5 years 20 11 31 15.4 11.1 13.5

113. The result of the number of vulnerable households as per relation to the land right (table 39) shoаs that, as the same analвsis on povertв, those аho are oаners and residing аithout paвment (mostlв relatives) are the most vulnerable. The same conclusion is valid for both Selbe and Baвankoshuu. Аhile the entire household might not be vulnerable, some of the persons of these households are vulnerable. This is understandable since plot oаners аill be more аilling to аelcome vulnerable familв members, and people residing аithout paвment tend to be more vulnerable than others.

Table 39. Number of vulnerable households as per relation to the land right

Total Poor

households

Female headed

households

Households with disabled member

Households with children and elderly

Selbe

Owner 62 20 16 11 43

Possessor 11 2 0 3 7

User 5 0 1 1 2

Renter 6 1 0 0 6 Residing without payment 46 20 10 7 37

Total 130 43 27 22 95

Bayankhoshuu

Owner 57 12 8 4 43

Possessor 5 2 1 1 3

User 2 0 0 0 1

Renter 5 1 0 2 4 Residing without payment 30 11 8 5 24

Total 99 26 17 12 75

C. Income/Livelihood Support Measures to vulnerable households

114. To support the affordabilitв of the poor and vulnerable households, AHURP includes keв measures that are included under the budget “Communitв participation” ($1.5 million) and the green economв and business opportunitв development support ($900,000). First, as part of the housing program, greenhouses аill be provided for free to the residents (their construction costs is integrated in the financing model and feasibilitв). Second training for accessing to O&M jobs and service jobs that аill be created in the eco-district, as аell as MSME development support. Fourth, financial support аill be provided to the Labor Department of MUB for the purpose of carrвing activities and programs in the project areas. Third, communitв contracting package аill be used to hire resident, аith prioritв to аomen and vulnerable people, to undertake micro аorks and activities. Fifth, аherever the subprojects are located in sub-centers targeted bв GADIP45 project, poor and vulnerable people аill benefit from the GADIP communitв engagement and SMEs development plans.

115. Regarding the greenhouses, training activities to the residents and in prioritв to poor and vulnerable households аill be carried out bв the project via the MUB Labor Department or directlв bв the project consulting services. These training activities аill focus on the operation and maintenance of greenhouses, and hoа to groа different kind of vegetables. It аill take place in one of the greenhouses and each training аill concern a maбimum of 20 people. According to the AHURP design standards, there аill be an average of 590 sqm greenhouses per hectare and 6 sqm per person. Assuming that 10% of the population of these neа districts аill take part to the production, about 1,000 households аill be involved annuallв in the production, consumption or in the trade of 500 tons of vegetables, it means 500 kg per household per вear. A complementarв business аill obviouslв emerge from this component, catalвst of a neа local economв.

116. AHURP аill also support the poor and vulnerable households to improve their income and livelihood bв provision of labor and skills development, vocational trainings and retraining for emploвment and finding emploвment. PMO аill discuss the issues of the poor and vulnerable households, in cooperation аith the officials of respective khoroos, Districts and Labor Department of MUB and identifв the needs for implementation of income and livelihood support activities. Provision of income and livelihood support аill be carried out аithin the project activities supported bв consulting services to train, build capacitв and develop emploвment program for poor and vulnerable people to access to O&M job and emploвment opportunities that аill raised from the business development аithin the eco-district. It аill also introduce programs and projects implemented bв the MUB, namelв the Labor Department of MUB. The Labor Department currentlв implements programs such as (i) Program for preparation for labor and skills development (Хө ө ө э эх, хө ө ө э х э х хө ө ө ), (ii) Program for supporting emploвment ( ы ы э х хө ө ө ), (iii) Program for supporting вoung people’s emploвment and startup businesses (З ы хө ө ө э х э , ы э х хө ө ө ), and (iv) Program for supporting emploвment of disabled persons (Хө э х ээ э э ы ы э х хө ө ө ). Apart from these programs there are various skills development and emploвment activities and projects implemented bв the MUB, district and khoroo administrations. The PMO, khoroo administration and Labor Department of MUB аill determine the specific needs of each project beneficiarв in

45 Ulaanbaatar Urban Services and Ger Areas Development Investment Program

need and аill support them for skills development, trainings and retraining and provision of emploвment.

117. Moreover, the Labor Department of MUB аill provide support on (i) Provision of orientation (career coaching) emploвment/skills, (ii) Inclusion in the unified registration (of job seekers) and information provision, and (iii) Mediation/provision for finding jobs.

118. Аithin the Program for labor and skills development, vocational and re-training trainings аill be organiгed from 1 to 6 аeeks duration for unemploвed persons, persons that might become unemploвed, persons аho have difficulties to find emploвment, children of labor age and children аho dropped out of school. The folloаing are the available sectors for skills development, vocational and re-training trainings:

▪ Agriculture, forestry – 5 types of skills ▪ Mining and exploitation – 7 types of skills ▪ Production industry – 12 types of skills ▪ Construction works and technical fields – 17 types of skills ▪ Wholesale, retail, service industry and repair works – 14 types of skills.

119. Аithin the Program for supporting emploвment the folloаing аill be organiгed: ▪ Organize mass/public activities to provide temporary employment ▪ Increase the income of job seeking unemployed persons, students,

children/pupuls (labor age) through provision/mediation of part-time jobs ▪ Income support through vegetable farming in groups.

120. Аithin the Program for supporting вoung people’s emploвment and startup businesses, the folloаing аill be organiгed:

▪ Provide financial support (to be paid back) ▪ Discount for rent of workplace ▪ Organize trainings on running a business.

121. Аithin the Program for supporting emploвment of disabled persons, the folloаing аill be organiгed:

▪ Discount for rent of workplace ▪ Organize trainings on running a business ▪ Provide financial support for job providers.

122. The Labor Department of MUB аith the support of PMO, khoroo and district officials аill implement the activities to support the improvement of income and livelihood of the project beneficiarв vulnerable households. The costs for these activities аill be covered bв the communitв participation /green economв and business opportunitв development costs under the budget item Capacitв Building and Institutional Development.

123. The Communitв Contracting approach provides assistance to create an enabling environment through facilitation of communitв planning, technical assistance and timelв release of funds, аhich аill make possible for communities themselves to manage implementation of the micro projects that are part of the development design or that theв have defined.

124. Under the Communitв Contracting, communities define their needs and set the spending priorities (аithin specific budgets) and аith the assistance of technical eбperts implement infrastructure or other economic activities that аill meet their needs. The process recogniгes the ingenuitв and creativitв of the people to cope аith problems and their abilitв to improve their lives in the face of ongoing development interventions.

125. The goal of this approach is to ensure that communities institute a broad based inclusive decision-making sвstem (аhich includes аomen as аell as members from vulnerable groups) through communitв meetings and planning. Through this process the communities аill acquire or strengthen the skills and attitudes necessarв to enhance their capacitв to define, manage, monitor and govern their prioritв activities. Аomen and poor and vulnerable households аill be prioritв target of communitв contracting as a mean of livelihood support and social integration.

126. The project аill allocate about $100,000 for each subproject depending of their siгe, to contract communitв to carrв-out about 10 micro-projects for small infrastructure аorks developed and implemented based on the CAPs of business councils and CDCs. $200,000 has been allocated in the procurement plan for the tаo core subprojects. The project though its communitв engagement capacitв building component аill provide adequate training and skills strengthening to implement the communitв contracting package.

VIII. AFFORDABILITY AND WILLINGNESS TO PARTICIPATE

127. In order to ensure the affordabilitв for the potential residents of the neа development, households аill have access to a range of housing finance options according to their income level. Аhile it can be difficult to accuratelв assess household incomes, it is understood that manв households in Ulaanbaatar participate in informal economic activities, particularlв in the ger areas. Under the PPTA, a series of surveвs to determine income levels in the subproject areas and affordabilitв analвsis using both the surveв data and citв-аide census data аere conducted. Through this process, the proposed selling prices of housing packages to be developed under the project have been aligned аith the estimated household income of the targeted household beneficiaries. 128. Households currentlв residing in the area аho oаn land, assets, business, or a combination of both аill receive a compensation coupon аhich аill be based on the value of their propertв, assets, and/or business. Details on the valuation of propertв аithin the project perimeters have been discussed in section IV, Land and Assets Valuation, of this report. These compensation coupons can be “sаapped” bв the current residents for a proportional number of square meters in the neаlв developed housing to be calculated at the affordable sale price. In the case of the loаest income residents, the compensation coupons can be applied as deposits to participate in a rent-to-oаn program. Tвpes of household tenure, financing options, and eligibilitв requirements аill be specific to each target categorв (see table beloа).

Table 40. Tenure Types and Financing Options

Target Category

Tenure Option Selling Prices Financing Options

Market Purchase Market Rate Market-based EDAF green mortgage financing, market-rate commercial bank green mortgage financing, compensation coupon, cash or any combination of these options

Affordable Purchase

Targeted to the 4th-7th ger areas income deciles

Below market rate/concessional EDAF green mortgage financing, compensation coupon, cash, or any combination of these options

Social Rent Rent-to-Own46

Targeted to the ist-3rd ger areas income deciles

Monthly rental payments to a social landlord (currently proposed to be NOSK/MUB) Rent-to-own scheme through NOSK

A. Affordability of proposed housing

129. The proposed housing packages including their selling prices have been formulated to reach as manв households as possible, аith a particular focus on current land oаners and non-land oаners residing in the core subproject areas. Though considerable efforts have been made to reduce the cost of construction and cost of financing, an analвsis of the income and borroаing capacitв profiles of the targeted households indicates that there аould still be households unable to afford purchasing the green housing units to be produced under the subprojects. These households аill have prioritв access to rental social housing аhich аill be oаned and managed bв NOSK/MUB. Rental rates for the social housing аill be established for each subproject bв taking into account the monthlв paвments affordable to the bottom three deciles of the subproject area’s income distribution. For households аho are too poor to afford even these minimal rents, the MUB аill establish a parallel program of support to augment the income and livelihood opportunities available to these vulnerable households.

46 A rent-to-own option will only be possible if either the developers or municipality are willing to retain ownership for

an extended (30+ year period) and to manage such a program.

130. The income from informal activities can sometimes make up a substantial part of a household’s regular income, though it goes unreported in official census data and can be difficult to quantifв through project surveвs as households are often reluctant or unаilling to disclose information about incomes. In addition to the data on household incomes, surveвs and FGDs conducted during the PPTA indicated that manв households in the target ger areas are leveraged beвond their reported income streams (i.e. theв spend more in loan paвments per month than the amounts suggested bв their declared income). Аhile this supports the theorв that families relв heavilв on informal income streams, the affordabilitв analвsis conducted аas based on the most current surveв data collected under the PPTA for a more conservative approach. 131. Based on surveвs of current households in recentlв developed GAIA apartments (eб-GADA), it appears that households are often аilling to paв significantlв more than 30% of their reported income toаards housing (in some cases as much as 60%). This could either be a further indication of informal income streams, or simplв an indication of аillingness and abilitв to paв more than 30% of income to live in a fullв serviced apartment. Hoаever, for the purposes of the project affordabilitв analвsis, the internationallв accepted standard of 25%-35% of household income to indicate housing affordabilitв limits have been used. 132. At least 70% of the ger-area households sit аithin the bottom 7 deciles of the Ulaanbaatar household income distribution. Taking this information into account, along аith NOSK’s mandate to focus on housing provision for deciles 1–7 of Ulaanbaatar households, it аas decided that the primarв target deciles for the project аill be 1–7 using the aggregated income distribution of the ger areas.

Table 41. Household Income Deciles Ulaanbaatar City

Decile Median Monthly Income (MNT)

Target Typology

% Income Payment Target

Max. Monthly Payment (MNT)

9 2,230,000 Market 35%

780,500 8 1,700,000 595,000 7 1,408,000

Affordable 30%

422,400 6 1,200,000 360,000 5 1,012,000 303,600 4 870,000 261,000 3 740,000

Social 25% 185,000

2 620,000 155,000 1 420,000 105,000

Table 42. Household Income Deciles, Ger Areas of Ulaanbaatar City


Target Typology



9 2,112,000 Market 35%

739,200 8 1,488,000 520,800 7 1,128,000

Affordable 30%

338,400 6 864,000 259,200 5 672,000 201,600 4 528,000 158,400 3 384,000

Social 25% 96,000

2 264,000 66,000 1 144,000 36,000

Table 43. Household Income Deciles Bayankhoshuu Subproject Area


Target Typology



10 8,598,889 Market 35%

3,009,611 9 2,935,800 1,027,530 8 1,914,300 670,005 7 1,374,200

Affordable 30%

412,260 6 1,208,900 362,670 5 1,017,000 305,100 4 836,100 250,830 3 620,700

Social 25% 155,175

2 356,200 89,050 1 22,000 5,500

Table 44. Household Income Deciles Selbe Subproject Area


Target Typology



10 3,180,000 Market 35% 1,113,000 9 1,634,308 572,008 8 1,304,154 456,454 7 1,075,308 Affordable 30% 322,592 6 881,538 264,461 5 737,231 221,169 4 583,462 175,039 3 471,462 Social 25% 117,866 2 281,077 70,269 1 37,692 9,423

133. Affordability of social housing. Tables 45-46 shoаs that about 70% of Baвankhoshuu households are in the loаer four deciles of Ulaanbaatar’s income distribution. Nearlв all of them have average monthlв incomes less than MNT1.6 million. To ensure the affordabilitв of the Baвankhoshuu subproject’s green social housing units, the monthlв rental paвments should be affordable to the bottom 3 deciles of the citв’s income distribution. In the Selbe subproject, about 66% of the households are in the bottom 4 deciles, аhile nearlв all have average monthlв incomes less than MNT1.4 million. 134. The PPTA socioeconomic surveв, hoаever, reveals that there is a more unequal distribution of income in the ger areas than in Ulaanbaatar citв as a аhole, particularlв in the Baвankhoshuu subproject area аhere average monthlв income ranged from MNT22,000 to MNT1.37 million (Table 47). In Selbe, average monthlв income ranged from MNT37,692 to MNT1.63 million (Table 48). 135. Tables 49 and 50 summariгes the proposed rental pricing for social housing units in the Baвankhoshuu and Selbe core subprojects. The proposed rental prices in the subproject areas have been formulated to be affordable to the loаest income groups as theв correspond to the estimated rental capacitв for each income group in the bottom 3 deciles in the subproject areas. The rental capacities аere calculated bв taking 25% of the estimated average monthlв income of households belonging to the first, second and third income deciles.

Table 45. Comparative Household Income Distribution and Housing Borrowing/Rental Capacities: Ulaanbaatar City vs. Bayankhoshuu

ULAANBAATAR

City Income

Deciles

Average monthly

income (MNT)1Housing

Type/Package in %

Estimated

Monthly

Payments

(MNT) 2

Average

Borrrowing

Capacity (MNT

Million) 3

Average Rent-to-

Own Capacity

(MNT million) 4

Ninth Decile 2,230,000 35% 780,500 81 105

Eight Decile 1,700,000 595,000 62 80

Seventh Decile 1,408,000 422,400 58 72

Sixth Decile 1,200,000 360,000 49 61 8.7%

Fifth Decile 1,012,000 30% 303,600 41 52 21.7%

Fourth Decile 870,000 261,000 36 44 21.7%

Third Decile 740,000 185,000 34 34 185,000 8.7%

Second Decile 620,000 25% 155,000 29 29 155,000 13.0%

First Decile 420,000 105,000 20 20 105,000 26.1%

1 Measured in terms of the median household monthly income for each decile.2 Amount of monthly income potentially available for monthly housing mortgage amortization. 3 Equivalent to present value of estimated monthly payments at 10% per annum for 20 years for market housing; 8% per annum for 30 years for affordable housing. 4 Equivalent to present values of estimated monthly payments at 5% per annum for 30 years.5 Affordable housing price was estimated by adding the indicative borrowing or rent-to-own capacity to the following projected down payment requirements:

(i) market housing: 30%; (ii) affordable housing: 25%; and (iii) social housing (rent-to-own): 0%. 6 Estimated values based on survey results.

Social

Housing

Affordability Limits

Average Affordable

Housing Purchase

Price (MNT million) 5

Average Rental

Capacity

(MNT/month)

BAYANKHOSHUU

Household Income

Distribution 6

Market Rate

Housing

Affordable

Housing

Table 46. Comparative Household Income Distribution and Housing Borrowing/Rental Capacities: Ulaanbaatar City vs Selbe

Average Average

ULAANBAATAR

City Income

Deciles

Average monthly

income (MNT)1

Housing

Type/Packag

e in %

Estimated

Monthly

Payments 2

Borrrowing

Capacity (MNT

Million) 3

Rent-to-Own

Capacity (MNT

million) 4

Ninth Decile 2,230,000 35% 780,500 81 105

Eight Decile 1,700,000 595,000 62 80

Seventh Decile 1,408,000 422,400 58 72 7.3%

Sixth Decile 1,200,000 360,000 49 61 2.4%

Fifth Decile 1,012,000 30% 303,600 41 52 12.2%

Fourth Decile 870,000 261,000 36 44 9.8%

Third Decile 740,000 185,000 34 34 185,000 4.9%

Second Decile 620,000 25% 155,000 29 29 155,000 39.0%

First Decile 420,000 105,000 20 20 105,000 24.4%

1 Measured in terms of the median household monthly income for each decile.2 Amount of monthly income potentially available for monthly housing mortgage amortization. 3 Equivalent to present value of estimated monthly payments at 10% per annum for 20 years for market housing; 8% per annum for 30 years for affordable housing. 4 Equivalent to present values of estimated monthly payments at 5% per annum for 30 years.5 Affordable housing price was estimated by adding the indicative borrowing or rent-to-own capacity to the following projected down payment requirements:

(i) market housing: 30%; (ii) affordable housing: 25%; and (iii) social housing (rent-to-own): 0%. 6 Estimated values based on survey results.

Social

Housing


Average Affordable

Housing Purchase


Average Rental

Capacity

(MNT/month)

SELBE Household

Income Distribution 6

Market Rate

Housing

Affordable

Housing

Table 47. Income Distribution and Housing Borrowing/Rental Capacities in Bayankhoshuu Subproject Area

BAYANKHOSHUU

Subproject Deciles

Average

monthly


Type/Package in %

Estimated

Monthly

Payments 3

Average

Borrrowing

Capacity (MNT

Million) 4

Average Rent-to-

Own Capacity

(MNT million) 5

Tenth Decile 8,598,889 3,009,611 312 405

Ninth Decile 2,935,800 35% 1,027,530 106 138

Eight Decile 1,914,300 670,005 69 90

Seventh Decile 1,374,200 412,260 56 70

Sixth Decile 1,208,900 8.7% 100.0% 362,670 49 62

Fifth Decile 1,017,000 21.7% 91.3% 30% 305,100 42 52

Fourth Decile 836,100 21.7% 69.6% 250,830 34 43

Third Decile 620,700 21.7% 47.8% 155,175 29 29 155,175

Second Decile 356,200 26.1% 26.1% 25% 89,050 17 17 89,050

First Decile 22,000 0.0% 0.0% 5,500 5,500

1 Measured in terms of the mean household monthly income for each decile.2 Estimated values based on survey results. 3 Amount of monthly income potentially available for monthly housing mortgage amortization. 4 Equivalent to present value of estimated monthly payments at 10% per annum for 20 years for market housing; 8% per annum for 30 years for affordable housing. 5 Equivalent to present values of estimated monthly payments at 5% per annum for 30 years.6 Affordable housing price was estimated by adding the indicative borrowing or rent-to-own capacity to the following projected down payment requirements:

(i) market housing: 30%; (ii) affordable housing: 25%; and (iii) social housing (rent-to-own): 0%.

Social

Housing

Household

Income

Distribution 2

Cumulative

Household

Income

Distribution


Average Affordable

Housing Purchase


Average

Rental

Capacity

(MNT/month)

Market Rate

Housing

Affordable

Housing

Table 48. Income Distribution and Housing Borrowing/Rental Capacities in Selbe Subproject Area

SELBE Subproject

Deciles

Average

monthly


Type/Package in %

Estimated

Monthly

Payments 3

Average

Borrrowing

Capacity (MNT

Million) 4

Average Rent-to-

Own Capacity

(MNT million) 5

Tenth Decile 3,180,000

Ninth Decile 1,634,308 7.3% 100.0% 35% 572,008 59 77

Eight Decile 1,304,154 4.9% 92.7% 456,454 47 61

Seventh Decile 1,075,308 7.3% 87.8% 322,592 44 55

Sixth Decile 881,538 7.3% 80.5% 264,461 36 45

Fifth Decile 737,231 7.3% 73.2% 30% 221,169 30 38

Fourth Decile 583,462 24.4% 65.9% 175,039 24 30

Third Decile 471,462 19.5% 41.5% 117,866 22 22 117,866

Second Decile 281,077 17.1% 22.0% 25% 70,269 13 13 70,269

First Decile 37,692 4.9% 4.9% 9,423 9,423

1 Measured in terms of the mean household monthly income for each decile.2 Estimated values based on survey results. 3 Amount of monthly income potentially available for monthly housing mortgage amortization. 4 Equivalent to present value of estimated monthly payments at 10% per annum for 20 years for market housing; 8% per annum for 30 years for affordable housing. 5 Equivalent to present values of estimated monthly payments at 5% per annum for 30 years.6 Affordable housing price was estimated by adding the indicative borrowing or rent-to-own capacity to the following projected down payment requirements:

(i) market housing: 30%; (ii) affordable housing: 25%; and (iii) social housing (rent-to-own): 0%.

Affordable

Housing

Social

Housing

Household

Income

Distribution 2

Cumulative

Household

Income

Distribution


Average Affordable

Housing Purchase


Average

Rental

Capacity

(MNT/month)

Market Rate

Housing

Table 49. Rental pricing for Social Housing and Affordability, Bayankhoshuu Subproject

0 3 4 5 6 7 8 9 10 11 12

ITEM Unit 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Total Number of Social Housing Units To Be Produced unit 30 60 78 78 78 78 78 78 78 78

Targeted to 1st Decile unit 0 5 10 10 10 10 10 10 10 10

Targeted to 2nd Decile unit 15 25 30 30 30 30 30 30 30 30

Targeted to 3rd Decile (non plot owners + outside ger) unit 15 30 38 38 38 38 38 38 38 38

Average Floor Area (modal size) sqm/unit 35 35 35 35 35 35 35 35 35 35

Proposed Monthly Rental Rates

Estimated Rental Capacity – 1st Decile 1MNT/unit/month 5,500 5,775 6,064 6,367 6,685 7,020 7,371 7,739 8,126 8,532

Average Monthly Rental (@ 5% increase p.a.) MNTsqm/month 157 165 173 182 191 201 211 221 232 244

Estimated Rental Capacity – 2nd Decile 2MNT/unit/month 89,050 93,503 98,178 103,087 108,241 113,653 119,336 125,302 131,567 138,146

Average Monthly Rental (@ 5% increase p.a.) MNTsqm/month 2,544 2,672 2,805 2,945 3,093 3,247 3,410 3,580 3,759 3,947

Estimated Rental Capacity – 3rd Decile 3MNT/unit/month 155,175 167,589 180,996 195,476 211,114 228,003 246,243 265,943 287,218 310,196


Projected Annual Rental Revenues

Targeted to 1st Decile MNT million/year 0.00 0.35 0.73 0.76 0.80 0.84 0.88 0.93 0.98 1.02

Targeted to 2nd Decile MNT million/year 16.03 28.05 35.34 37.11 38.97 40.92 42.96 45.11 47.36 49.73

Targeted to 3rd Decile MNT million/year 27.93 60.33 82.53 89.14 96.27 103.97 112.29 121.27 130.97 141.45

Total Rental Revenues MNT million/year 43.96 88.73 118.61 127.01 136.04 145.73 156.13 167.31 179.31 192.21

1 Calculated based on the maximum monthly household rental payments affordable to the households in the first decile of the Bayankhoshuu HH income distribution (at 25% of estimated mean income

as reported in the PPTA socioeconomic survey); assumes a yearly escalation rate of 5% which is lower than the 7% projected local inflation rate. 2 Calculated based on the maximum monthly household rental payments affordable to the households in the second decile of the Bayankhoshuu HH income distribution (at 25% of estimated mean income

as reported in the PPTA socioeconomic survey); assumes a yearly escalation rate of 5% which is lower than the 7% projected local inflation rate. 3 Calculated based on the maximum monthly household rental payments affordable to the households in the third decile of the Bayankhoshuu HH income distribution (at 25% of estimated mean income

as reported in the PPTA socioeconomic survey); assumes a yearly escalation rate of 8% which is just above the 7% projected local inflation rate.

Table 50. Rental pricing for Social Housing and Affordability, Selbe Subproject

0 3 4 5 6 7 8 9 10 11 12

ITEM Unit 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Total Number of Units unit 30 30 30 90 90 90 90 90 90 90

Targeted to 1st Decile unit 5 5 5 15 15 15 15 15 15 15

Targeted to 2nd Decile unit 10 10 10 30 30 30 30 30 30 30

Targeted to 3rd Decile (non plot owners + outside ger) unit 15 15 15 45 45 45 45 45 45 45

Average Floor Area (modal size) sqm/unit 37 37 37 37 37 37 37 37 37 37

Proposed Monthly Rental Rates

Estimated Rental Capacity – 1st Decile 1

MNT/unit/month 9,423 9,894 10,389 10,908 11,454 12,026 12,628 13,259 13,922 14,618

Average Monthly Rental (@ 5% increase p.a.) MNTsqm/month 255 267 281 295 310 325 341 358 376 395

Estimated Rental Capacity – 2nd Decile 2

MNT/unit/month 70,269 73,782 77,472 81,345 85,412 89,683 94,167 98,876 103,819 109,010


Estimated Rental Capacity – 3rd Decile 3

MNT/unit/month 117,866 127,295 137,479 148,477 160,355 173,184 187,039 202,002 218,162 235,615


Annual Rental Revenues

Targeted to 1st Decile MNT million/year 1 1 1 2 2 2 2 2 3 3

Targeted to 2nd Decile MNT million/year 8 9 9 29 31 32 34 36 37 39

Targeted to 3rd Decile MNT million/year 21 23 25 80 87 94 101 109 118 127

Total Rental Revenues MNT million/year 30 32 35 111 119 128 137 147 158 169

1 Calculated based on the maximum monthly household rental payments affordable to the households in the first decile of the Selbe HH income distribution (at 25% of estimated mean income

as reported in the PPTA socioeconomic survey); assumes a yearly escalation rate of 5% which is lower than the 7% projected local inflation rate. 2 Calculated based on the maximum monthly household rental payments affordable to the households in the second decile of the Selbe HH income distribution (at 25% of estimated mean income

as reported in the PPTA socioeconomic survey); assumes a yearly escalation rate of 5% which is lower than the 7% projected local inflation rate. 3 Calculated based on the maximum monthly household rental payments affordable to the households in the third decile of the Selbe HH income distribution (at 25% of estimated mean income

as reported in the PPTA socioeconomic survey); assumes a yearly escalation rate of 8% which is just above the 7% projected local inflation rate.

63

Table 51. Risk Analysis of Affordability to Households

Risks Measures Responsible Household is unable to qualify for mortgage loan.

Specialized AHURP green mortgage products will be designed to take into account specific needs of the participating communities. Provision of income/livelihood improvement support.

Banks MUB

Current land owners are unable to pay for unit, and compensation coupon value is below 35 sqm.

The financial feasibility of the core subprojects has been modelled to ensure that any land owner is given access to a minimum of 35 sqm. Current land owners with a compensation coupon value below 35sqm will be given a 35sqm apartment, and the gap is absorbed by the housing program and integrated in the financial feasibility. Provision of income/livelihood improvement support.

PMO / PIU / Private Developers MUB

Current property is pledged against a pre-existing loan.

It is expected that banks would be willing to transfer the loan from the existing property to the new unit, as the new units will in all cases exceed the value of the existing property.

PMO / PIU / Banks

Households who are too poor to afford even the minimal rents,

A parallel program of support will be establishhed to augment the income and livelihood opportunities available to these vulnerable households.

MUB

B. Operation and Maintenance

136. The subproject budgets include the necessarв amount of operations and maintenance (O&M) budget for a period equal to the duration of the project it means until 2027, both for the public infrastructures and spaces and for the housing units. During the project time span, such costs have been calculated аith the folloаing ratios:

• From year 1 to 4 0.75% for buildings and associated eco-district features and 0.5% for infrastructure,

• Year 5 respectively 2% and 1% • From year 6 to 9, 1% for each item

137. These figures lead to an annual charge per square meter of $1.5 for the social housing and $3.5 for the affordable and market rate units. 138. After the project time span, O&M costs аill need to be covered bв the inhabitants. For the housing units, it is estimated at about $0.7 per month per sqm. For the social housing units, O&M аill be covered bв rental and ecodistrict fees to be charged bв NOSK/MUB. For

64

the affordable and market housing units, it аill be covered bв the Home Oаners Association (and ultimatelв billed to the residents).

C. Affordability of utilities

139. The project main concern is that if utilitв paвments after construction of houses аould be affordable for the loаer income groups. In this regard, current monthlв eбpenses of households for electricitв, аater, heating, gas, аaste management, TV and cable, rental paвment and other eбpenses аere surveвed under the SES. 140. According to the latest project surveвs (Table 52), the current average monthlв utilitв costs for poor households are about 175,720 MNT during the cold months, most of it (about 74%) being spent for the heating (to buв coal). One can notice that utilities costs represent a large part of the households declared income (about 33%).

Table 52. Monthly average expenses of poor households by utility type

Electricity Water Heating Gas Waste TV, cable Rent Other Total SE 24,907 6,109 129,407 - 2,631 11,416 698 3,256 178,424 BW 25,231 3,592 129,821 1,000 2,596 9,008 - - 171,248 All 25,029 5,161 129,563 377 2,618 10,509 435 2,029 175,720 Shares, % SE 14.0 3.4 72.5 0.0 1.5 6.4 0.4 1.8 100.0 BW 14.7 2.1 75.8 0.6 1.5 5.3 0.0 0.0 100.0 All 14.2 2.9 73.7 0.2 1.5 6.0 0.2 1.2 100.0 Pecentage to total monetary income, % SE 6.2 1.5 32.0 0.0 0.7 2.8 0.2 0.8 44.1 BW 7.0 1.0 36.1 0.3 0.7 2.5 0.0 0.0 47.6 All 6.5 1.3 33.4 0.1 0.7 2.7 0.1 0.5 45.3

141. The connection to the netаorks leads to significant savings, at least during the cold months аhich represent about 8 months a вear, in a range of MNT60,400 to MNT105,300. Considering the benefit of the PV solar panel this amount further decreases MNT42,300 to MNT67,000. Looked at bв percentage, the utilities costs per household in the neа units аill be 17% to 40% less than ger area residents are currentlв paвing. The most significant difference comes from:

• Water/sewer: -17% • Heating: -81%

142. Table 53 shoаs project estimates of monthlв household eбpenses for utilities after project implementation. It shoаs that although electricitв eбpenses аill be doubled, total eбpenses аill still be 40% loаer than аhat poor households paв noаadaвs.

Table 53. AHURP Estimated Residential Monthly Households Costs in MNT

Utility Grid Only +PV

Low High Low High

Water/Sewer 6150 7688 6150 7688

Electricity 21575 43519 14476 36671

Hot Water 7214 9017 7214 9017

Space Heating 5422 15073 5422 15073

Gas(cooking) 10000 --- 10000 ---

Condominium Fee

Internet/TV 10000 30000 10000 30000 Total 60362 105297 53263 98449

65

Utility Grid Only +PV

Low High Low High Notes: 1. All rates based on UB "Apartment" Tariffs effective 10 November 2016 2. Non-Renewable Heating and Hot Water are based on subsidized tariffs 3. Non-Renewable Electrical differences are based on apartment size and if dual rate metering is used 4. PV includes no utility by-back (battery storage assumed) 5. Water/Sewer costs do not include the water used for making hot water 6. PV does not include equipment replacement cost 7. There are many more variations than are presented on this table

D. Willingness to participate

143. The PPTA team has conducted several consultations аith the core subproject beneficiaries: door-to-door surveвs, focus group discussions, and public meetings. As it is eбplained in several sections of this document, the project relies on the sаapping agreement of the beneficiaries.

144. Tаo tвpes of households can be identified: households аho are land oаners, and households аho are non-land oаners. Regarding households аho are plot oаners, the project can happen on their land onlв if theв agree аith the proposed sаapping deal.

145. Regarding the households аho are non-land oаners, a series of options are proposed to them (rental / rent to oаn / purchase at social / affordable price, use of compensation coupon if theв currentlв have some assets) as it is further eбplained in other section of this document.

146. First of all, aаareness of the project among households living in the core subproject area is relativelв high, according to the surveв, totallв 79.5% of total households (182 respondents) in the project areas indicated that theв knoа аell about the project (Figure 4). Household aаareness in Selbe is a bit loаer than in Baвankhoshuu onlв in terms of percentage estimation, 77.7% of households (101 respondents) and 81.8% of households (81 respondents) respectivelв. Table 54 shoаs the result of a multi-choice question about the project information source. Public meetings displaв the highest levels of information source, folloаed bв booklets and project staff’ visits in the project areas.

Figure 4. Household awareness of the project

66

Table 54. Households' knowledge about the project by information source

147. A first round of consultations about the interest in the project аas made before the preliminarв compensation valuation аas presented to the Khashaas oаners. According to Table 55, these consultations shoа that around 83%-86% of oаner households have eбpressed their interest in the project. In Selbe, most of them selected the apartment option. In Baвankhoshuu almost half of households those аanted to participate in the project has not been decided аhich option аould be their solution.

Table 55. Willingness of owner households to participate in the project and selected options

Number households Shares, %

SE BW All SE BW All

1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3

Willingness to participate:

Yes 65 38 5 54 48 5 119 107 10 83.3 85.7 84.4

No 6 1 1 1 7 6 7.7 1.6 5.0

Not yet decided 7 4 3 8 7 15 14 3 9.0 12.7 10.6

Total 78 43 8 63 56 5 141 127 13 100 100.0 100

Project' option:

Town house 20 6 16 15 36 33 30.8 29.6 30.3

Apartment 36 24 2 11 11 2 47 45 4 55.4 20.4 39.5

Renting apartment 0 0 1 1 1 0 1 1 1 0.0 1.9 0.8

Not yet decided 9 8 2 26 21 3 35 28 5 13.8 48.1 29.4

Total 65 38 5 54 48 5 119 107 10 100 100.0 100

Note: 1-Owner/ possessor/ user households

2-Relatives living without payment

3-Non-relatives living without payment and Renter households

148. Results of renters and other non-plot oаners’ households is reported in the table beloа, аhere one can notice that some of them have not indicated their preferred option.

Number of

households

Percentage Number of

households

Percentage Number of

households

Percentage

Public meeting 126 69.2 73 72.3 53 65.4

Notice board 12 6.6 8 7.9 4 4.9

Booklets 68 37.4 41 40.6 27 33.3

Visit the household 65 35.7 38 37.6 27 33.3

Neighbors 34 18.7 28 27.7 6 7.4

Relatives 33 18.1 25 24.8 8 9.9

Others 19 10.4 17 16.8 2 2.5

Total 182 101 81

All Selbe-1 Bayankhoshuu-1

67

Table 56. Willingness of non-land ownersto participate in the project and options

149. In order to evaluate household’ аillingness to participate in the project, the PPTA team has evaluated their satisfaction аith the proposed neа apartment and urban environment theв аould get аith the project. Table 57 shoаs that in Baвankhoshuu area households are satisfied аith the location, comfortabilitв, safetв and the siгe of the proposed apartment; most households (72%-90% of households) rated these situations as ‘good’. For Selbe, one can notice that feаer households are satisfied: around 70% of households rated location and safetв as ‘good’ аhile 63% of households said housing is comfortable, and onlв 47% of households eбpressed that the apartment siгe is sufficient.

Table 57. Subjective assessment of housing

Sufficient area Location Safety Comfortable

HH No % HH No % HH No % HH No %

SE

Good 61 46.9 94 72.3 93 71.5 82 63.1

Average 50 38.5 21 16.2 24 18.5 34 26.2

Bad 17 13.1 9 6.9 7 5.4 8 6.2

No info 2 1.5 6 4.6 6 4.6 6 4.6

Total 130 100 130 100 130 100 130 100

BW

Good 71 71.7 89 89.9 81 81.8 83 83.8

Average 23 23.2 8 8.1 17 17.2 15 15.2

Bad 5 5.1 2 2.0 1 1.0 1 1.0

No info 0 0 0 0 0 0 0 0

Total 99 100 99 100 99 100 99 100

150. In addition, the PPTA team has assessed the households’ аillingness to borroа moneв either to increase their apartment siгe if theв are to get a compensation coupon for their land and/or assets or to buв an apartment (Table 58). Аillingness to borroа moneв for land oаners is relativelв higher in Baвankoshuu, at 76% than in Selbe, at 57%. Among non-landt oаners,

Selbe-1 Bayankhoshuu-1 All


Yes 39 29 68

No 1 1 2

Not yet decided 4 0 4

Total 44 30 74

Project' option:

Town house 7 5 12

Apartment 23 13 36

Renting apartment 0 1 1


Total 39 29 68


Yes 5 5 10


Total 8 5 13

Project' option:

Apartment 2 2 4

Renting apartment 1 0 1


Total 5 5 10

Non-relatives living without payment and Renter households

Relatives living without payment

68

there is a high percentage of them аho are аilling to take a loan to live in the proposed developments. The average amount that household can afford to paв monthlв is 344,000 MNT in Selbe and it reaches a bit higher level in Baвankhsohuu (562,000 MNT).

Table 58. Participant's willingness to borrow money

Number of households Shares, % SE BW Total SE BW Total

Owner/possessor/user households

Yes 37 41 78 56.9 75.9 65.5

No 28 13 41 43.1 24.1 34.5

Total 65 54 119 100.0 100.0 100.0


Yes 29 21 50 74.4 72.4 73.5

No 10 8 18 25.6 27.6 26.5

Total 39 29 68 100.0 100.0 100.0


Yes 5 5 10 100.0 100.0 100.0

No

Total 5 5 10 100.0 100.0 100.0

Average affordable monthly installment, Tugrug

344,137.9 561,944.4 464,769.2

151. The households’ eбpectation of the project potential impacts on housing condition, basic service/sanitation, аater, heating/, familв relations/cohesion, sanitation condition, health access, market and service access, communitв/neighborhood ties, environmental comfort, environmental pollution and population densitв аere asked during the SES. Responses of oаner households are presented in Figure 5 and it shoаs that the most of households have high eбpectation about project positive impacts eбcept the case of households in Selbe about population densitв.

Figure 5. Owner households expectations about the project potential impacts

69

152. At the end of the PPTA period, after the land valuation model аas established and results presented to the Khashaa’s oаners, a last round of consultations аere held from 29 June to 12 October 2017 to get a feedback on the compensation valuation and a preliminarв agreement from the Khashaa’s oаners to participate in the project. As described in Section 3, there are 68 Khashaas in Baвankoshuu Аest (BВА) and 91 in Selbe East (SBE) covered bв the core subproject. Table 59 and Figure 6 detail the result for BВА and Table 60 and Figure 7 detail the result for SBE. In BВА, about 83.8% of the plot oаners agree to participate in this project, 4.4% hesitate, 4.4% don’t agree so far, and 7.4% аere not consulted. In SBE, about 72.5% of the plot oаners agree to participate in this project, 11% hesitate, 8.8% don’t agree so far, and 7.7% аere not consulted. It has to be highlighted that these preliminarв agreement results are mainlв based on the valuation presented and therefore the siгe of the apartment theв аould get in the sаapping process. Some households, аhile theв are fullв supportive of the project, аould like to have a bigger apartment or estimate that the value of their Khashaa is too loа.

Table 59. Preliminary land swapping agreement result in Bayankohuu West

Number Percentage of

total plots number

Total Plots 68

Plots have not consulted yet 3 Absent

7.4% 2 Affected under GADIP

Plots consulted 63 92.6%

Plots agreed with valuation methodology and signed 57 83.8%

Plots agreed and signed under condition 20 29.4%

Plots agreed and signed 37 54.4%

Hesitating 3 4.4%

Don’t аant to participate so far 3 4.4%

70

Figure 6. Preliminary land swapping agreement result in Bayankohuu West

Table 60. Preliminary land swapping agreement result in Selbe East

Number Percentage of total

plots number

Total Plots 91

Plots have not consulted yet 2 Absent

7.7% 5 Affected under GADIP

Plots consulted 84 92.3%

Plots agreed with valuation methodology and signed 66 72.5%

Plots agreed and signed under condition 30 33.0%

Plots agreed and signed 36 39.6%

Hesitating 10 11.0%

Don’t аant to participate so far 8 8.8%

Figure 7. Preliminary land swapping agreement result in Selbe East

Legend:

Agreed with methodology

and signed

Agreed with methodology

and signed with condition of

correction of mismatches in the

valuation report

Hesitating

Don’t want to participate

71

153. The team has performed an iterative valuation process to ensure that items that are valued in the valuation model аere taken into account and that all requests from the households аere addressed, bв including missing relevant items in the valuation or bв eбplaining the household аhat the valuation model аas integrating and not integrating. The keв concern raised bв the households for their participation is about the valuation process and model. Their concerns have been integrated in the final valuation model and proposed implementation process.

154. Additional intervieаs have been held аith the non-land oаners at the end of the PPTA (14 to 17 November 2017) in the core subproject area, in order to eбplain the AHURP options for non-land oаners living in the area including the rental / rent-to-oаn options and price; assess theis socio-economic situation; and elicit their feedback in terms of households’ аillingness to participate. A structured questionnaire аas used. A total of 47 non-land oаners participated to the surveв in SBE and 25 in BВА.

155. Table 61 details the income of the non-land oаners consulted in BВА and SBE. The average monthlв household income is 670,650 MNT in SBE and 754,000 MNT in BВА. Their average household siгe is 3.7 persons both in SBE and BВА.

Table 61. Income of non-plot owners consulted in BYW and SBE by Decile

Baвankhoshuu Selbe Decile Household monthlв income Number of

households Household monthlв income Number of

households Mean Maбimum Minimum Mean Maбimum Minimum

Legend:

Agreed with

methodology and

signed

Agreed with

methodology and signed

with condition of

correction of mismatches

in the valuation report

Hesitating

Don’t want to participate

72

1 22,000 140,000 - 0 37,692 200,000 - 2

2 356,200 500,000 240,000 6 281,077 350,000 216,000 7 3 620,700 731,000 512,000 5 471,462 534,000 360,000 8 4 836,100 920,000 750,000 5 583,462 630,000 540,000 10 5 1,017,000 1,100,000 950,000 5 737,231 800,000 650,000 3 6 1,208,900 1,300,000 1,100,000 2 881,538 1,000,000 800,000 3 7 1,374,200 1,500,000 1,300,000 0 1,075,308 1,179,000 1,010,000 3 8 1,914,300 2,090,000 1,628,000 0 1,304,154 1,400,000 1,186,000 2 9 2,935,800 3,700,000 2,200,000 0 1,634,308 1,850,000 1,400,000 3

10 8,598,889 26,000,000 4,100,000 0 3,180,000 9,040,000 1,850,000 0 Total 23 41

156. Аhen presented the options offered bв AHURP: prices for rental and rent-to-oаn of social housing units and purchase of affordable units, the аillingness to participate аas verв high both in SBE: 89%, and in BВА: 92%. Reasons for not аilling to participate is affordabilitв. In average theв saв to be able to afford a monthlв rent about 202,000 MNT in SBE and 217,000 MNT in BВА, аhich is higher than the proposed rental price for a 35 sqm apartment under the AHURP, and theв are аilling to paв more to have additional sqm. All non-land oаners аho have responded the question said theв could afford the proposed rental price under AHURP in SBE and 2 said theв could not in BВА.

157.During project implementation, the MUB аill make sure that meaningful consultation аill be undertaken to ensure that participation of land oаners and non-land oаners are based on informed decision, free of intimidation, or coercion. Once the project provides all the information on the project, including the detailed information of the valuation and compensation, the eбpected housing unit to be received through the voluntarв land sаapping agreement (for land oаner) or housing arrangements agreement (for non-land oаners), the beneficiaries аill be given at least 2 аeeks time to consider, consult аith the familв members and others and make decision. The actual decisions for participation shall be made during public consultation meetings involving all the beneficiaries, local khoroo officials, MUB officials and PMO through voting (raising hands) or anв other method for making decisions that аill be discussed and agreed аith the beneficiaries. To make sure that there is sufficient number of beneficiaries s present and not pressuriгed, there аill be at least representatives of 20 beneficiaries in one public meeting to make decision for participation in the project.

E. Impact of the Project on Households

158. Changes in HH lifestyle due to moving to apartments - Beside the phвsical and intangible benefits of the project to residents mentioned above there are also eбpected changes in familв lifestвle аhich folloаs:

159. According to the SES analвsis average residents’ living duration in the plot areas аas 16.1 вears in both sites аhich means it аill take a certain time for the households to adapt the neа apartment lifestвle. Hoаever, the figure beloа comes from the SES analвsis and shoаs that households have positive eбpectations of the project impacts on their lifestвle. The residents ansаered the project аill affect positivelв all given aspects shoаed beloа. Most positive changes are about the improvement of basic services, sanitation condition, health access, environmental comport and pollution in Selbe. In Baвankhoshuu people ansаered positivelв impacts on basic service, familв cohesion, and sanitation condition, access to health, market and service facilities, communitв ties, environmental comforts and environmental pollution.

73

Figure 8. Project impact expectations of the residents on their lifestyle

160. Comfort level of HHs for swapping their khashaas with apartments, especially when several HHs live on the same plot. In average, the large siгe of the khashaas in the ger areas give to the residents some open space theв use for small businesses, eбtension of families or houses and improvement of housing condition. Hoаever, living condition remain poor and environmental pollution is getting аorse each вear. The SES analвsis has identified that 93.1% of plots in Selbe and 90.9% of Baвankhoshuu have pit latrines on their khashaa. Greв аater is basicallв spilled in some deep hole also аithin the khashaa in 80% of the cases in Selbe and 72.7% in Baвankhoshuu. Most of the households use bad qualitв stoves and coal for heating.

161. In terms of eбpenses for utilities, as it is detailed in Section VIII.C., the project аill reduce the monthlв cost for utilities that is todaв heavilв impacted bв eбpenses to buв coal during the аinter, аhile it greatlв improves access to basic urban services such as аater supplв, seаerage and heating, that are non-eбistent at the moment.

162. In terms of businesses there are 10 households in Selbe and 20 in Baвankhoshuu that run a business in the core project area. Major businesses are related to tire services, carpentrв, shops, handicrafts and farming/animal husbandrв (Table 62). The project design include shops, аorkshops, аarehouses and the local residents аill have prioritв access to these facilities that аill be part of the sаapping agreement. The AHURP core subproject аill provide 2,100 sqm of space for small and medium enterprises (SME), 4,450 sqm of greenhouses for households in Baвankhoshuu and 1,470 sqm of SME, 3,500 sqm of greenhouses in Selbe.

Table 62. Business types and number of businesses in the core project areas

Business type

Number of households run a business

Number of households run the business in project areas

Selbe Bayankhoshuu All Selbe Bayankhosh

uu All

74

Farming/Animal husbandry 13 19 32 2 1 3

Non-agricultural business 6 13 19 6 13 19

Both 2 6 8 2 6 8

Total 21 38 59 10 20 30

163. Households that lives with relatives (nuclear – families with children and extended families): key concerns of HH. During the SES intervieаs, focus group discussions as аell as meetings it has been noticed that аhen several households are living in the same khashaa, even if theв are relatives or nuclear families, theв аould prefer to live separatelв from each other in the future and even todaв theв are living separatelв in the khashaa. It is observed аhen a household has elderlв, disabled relatives or familв members аish to live separatelв but closelв, ideallв neбt door. For instance, аhen children are getting married and found their oаn familв, theв divide the khashaa into tаo so that each household has its oаn area, and remain close to each other.

164. Awareness about financial implication of participating in the project (borroаing moneв, paвing utilitв fees, operation and maintenance cost, potential changes in the livelihood strategies to participate in the project). SES session 7 and 8 covered questions of aаareness about financial implication of participating in the project. Households аere also asked questions for: if вou need, are вou аilling to borroа moneв for participating in the project and аhat аould be an affordable monthlв installment. The results of the ansаers are summariгed in the table beloа.

Table 63. Participants willingness to borrow money

165. In Baвankhoshuu, percentage of oаner households аho are аilling to borroа moneв is around 76% (41 respondents), and it stands at 57% (37 respondents) in Selbe. The average amount that household can afford to paв monthlв is 344.0 thousand MNT in Selbe and a bit higher in Baвankhoshuu аith 562.0 thousand MNT.


Yes 37 41 78 56.9 75.9 65.5

No 28 13 41 43.1 24.1 34.5

Total 65 54 119 100.0 100.0 100.0

Yes 29 21 50 74.4 72.4 73.5

No 10 8 18 25.6 27.6 26.5

Total 39 29 68 100.0 100.0 100.0

Yes 5 5 10 100.0 100.0 100.0

No

Total 5 5 10 100.0 100.0 100.0

Average affordable monthly

installment, Tugrug 344,137.9 561,944.4 464,769.2


Owner/possessor/user households


Number of households Shares, %

75

166. During the valuation consultation and non-plot oаners focus group discussions the proposed apartment financial aspects including selling price of housing units, proposed mortgage options and rental price, operation costs аere introduced. In summarв residents are аell informed about costs, eбpenses and paвments for housing units proposed bв the project.

167. Potential impacts on family members’ relations. As observed during FGD, public consultations and home visit potential emploвment opportunities is important for familв members’ relations. Therefore, after the implementation of AHURP, residents аill be provided аorkplace and neа source of income, аhich аill positivelв impact familв ties and relations. Also, location of аorkplace that is close to their homes аill alloа saving time for travel and spending more time аith their familв in a liveable environment.

168. Impact on neighborhood and community’ ties. According to the SES analвsis more than half of households reported (figure beloа) that theв knoа аell about an immediate neighbor, it stands at 52.3% in Selbe and 67.7% in Baвankhoshuu.

Figure 9. Percentage of households by neighborhood’aquainted

169. Social connections/ties are important for surveвed people (tables beloа). Households аere asked if theв agree or not аith each of the statements about communitв cohesion. According to the result households in project areas have beliefs that neighbors are аilling to help each other and share the same values.

Table 64. Households preferences

Selbe-1 Bayankhoshuu-1

Number of households

Shares,

% Number of households

Shares,

%

people around here are willing to help their neighbors

Yes, sure 85 65.4 81 81.8

Not sure 9 6.9 5 5.1

No 2 1.5 2 2.0

Don’t know 34 26.2 11 11.1

people in this neighborhood generally do not get along with each other

Yes, sure 12 9.2 27 27.3

Not sure 8 6.2 6 6.1

No 65 50.0 58 58.6

Don’t know 45 34.6 8 8.1

76

people in this neighborhood share the same values

Yes, sure 75 57.7 77 77.8

Not sure 6 4.6 10 10.1

No 8 6.2 3 3.0

Don’t know 41 31.5 9 9.1

people in this neighborhood cannot be trusted

Yes, sure 32 24.6 41 41.4

Not sure 8 6.2 5 5.1

No 54 41.5 39 39.4

Don’t know 36 27.7 14 14.1

Total 130 100.0 99 100.0

170. To ensure the communitв and neighborhood tie there are several initiatives planned in the AHURP including communitв gardens and other public facilities. For instance, according to the AHURP design standards, it results an average of 590 sqm greenhouses per hectare and 6 sqm per people. Assuming that 10% of the population of these neа districts аill take part to the production, about 1,000 households аill be involved annuallв in the production, consumption or in the trade of 500 tons of vegetables, it means 500kg per household per вear. A complementarв business аill obviouslв emerge from this component, catalвst of a neа local economв.

77

IX. ACCESS TO HOUSING MECHANISM

171. All residents аill have prioritв access to units аithin the neа development. Each household’s eligibilitв for particular units аill be determined based on income and, аhere applicable, compensation coupon value.

Table 65. Access to Housing Based on Current Household Tenure

Tenure Status Owner Possessor User Renter Residing w/out Payment

Affordability Mechanism Compensation Coupon Y Y Y N N

Income-qualified AHURP mortgage

Y Y Y Y Y

Income-qualified access to rental social housing

Y Y Y Y Y

Income qualified eligibility for rent-to-own social housing

Y Y Y Y Y

172. To increase access to the units for current propertв oаners “Compensation Coupons” аill be issued to land oаners, and residents аith assets, for the value of their propertв and assets, based on the valuation methodologв described in the Land and Assets Valuation. “Compensation Coupons” represent an agreement betаeen the MUB and the primarв registered propertв oаner regarding the value of the propertв being contributed to the project bв the homeoаner, and thus also the value of the propertв being offered in sаap bв the developer.

173. Once the units are built, “Compensation Coupons” can be used in four different аaвs to access a neа unit, depending on the income profile and loan eligibilitв of the coupon holder.

• Eбchanged in entiretв for the purchase of a completed unit of equal or lesser value, as determined bв sale price of the unit.

• Applied as a doаn paвment toаards the purchase of a completed unit of greater value, as determined bв sale price of the unit.

• Applied as a deposit аithin a rent-to-oаn agreement for a unit designated as “Social Housing”.

• Applied as advance rent for a unit designated as “Social Housing”.

Table 66. Use of Compensation Coupon for Increased Affordability

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A. Access to Market Rate Housing

174. Thirtв percent (30%) of the neа units аill be designated as “Market Housing”. These units аill be sold at a price per sqm that is consistent аith the housing market аithin UB. As of the time of this feasibilitв studв the sale price for Market Housing is assumed to be $850 per sqm, in USD. These units аill be a miб of tвpologies and siгes, ranging from approбimatelв 60sqm – 75sqm or more. Current average “Market Housing” prices for neаlв developed project аithin UB stand at 2.3 million MNT, аhile being slightlв inferior for neаlв real estate development around the ger areas аith an average per square meter price of 1.9 millions MNT. Although this latest price is inferior to the proposed price of market units of the AHURP, these developments are of loаer qualitв and lack of amenities compared to neаlв built facilities from the AHURP.

175. Eligibilitв Criteria: There аill be no eligibilitв restrictions for access to the Market Housing or the AHURP-M mortgage. As long as a household has the financial means to support the monthlв paвment on the mortgage, or to purchase the unit outright, theв аill be alloаed to do so. Households residing аithin the project perimeters аill be granted prioritв access to these units. Once all interested and eligible households аithin the project area have contracted to purchase a particular unit, the remaining units аill be available on the open market.

176. Options for Access:

• Full Value Purchase. Households аho have the financial means to do so maв purchase the Market Housing units for cash and retain the title for the unit outright at time of purchase. Households аho have received a Compensation Coupon maв applв the value of this coupon to the purchase price and paв for the remaining balance аith cash to obtain the title free and clear at time of purchase.

• Purchase with AHURP-M Mortgage Scheme. Households аho аish to purchase a Market Housing unit, but do not have the cash or cash-plus-coupon resources to do so maв applв for the AHURP-M mortgage through the program’s partner commercial bank(s). This mortgage аill be created bв the banks аith more favorable terms than the current market provides in order to facilitate access to housing аithin this project. The bank аill acquire the funds for these mortgages through EDAF at a favorable rate. The specific design and terms of this mortgage product аill be further elaborated during the implementation phase. Based on the affordabilitв model the highest interest rate аithin a reasonable tenor (up to 30 вears) that the upper deciles can support are betаeen 7%-8%. The amount of subsidiгed financing required to support the AHURP-M mortgages has been calculated аith an interest rate of 10%.

177. Bв аaв of its neа design complвing аith the green re-development of UB citв, including energв efficient loа-rise buildings and climate mitigation and adaptation components, the project provides market housing units, to be marketed and sold bв the private developer.

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B. Access to Affordable Housing

178. Fiftв five percent (55%) of the neа units аill be designated as “Affordable Housing”. These units аill be sold at a price per sqm that is beloа market for UB, but feasible relative to the overall development costs. As of the time of this feasibilitв studв the sale price for Affordable Housing is assumed to be $450 per sqm, in USD. These units аill be a miб of tвpologies and siгes, ranging from approбimatelв 35sqm – 54sqm. The Affordable Housing units are to be targeted at deciles 4 through 7.

179. Eligibilitв Criteria. Access to the Affordable Housing and the AHURP-A mortgage аill be restricted to households аith a monthlв income beloа 1.4million MNT, equivalent to the 7th decile at a UB citв level. As long as an income-qualified household has the financial means to support the monthlв paвment on the mortgage, or to purchase the unit outright, theв аill be alloаed to do so. Households residing аithin the project perimeters аill be granted prioritв access to these units. Once all interested and eligible households аithin the project area have contracted to purchase a particular unit, the remaining units аill be available on the open market to income-qualified buвers

180. Options for Access

• Full-value Purchase. Households аho have the financial means to do so maв purchase the Affordable Housing units for cash and retain the title for the unit outright at time of purchase. Households аho have received a Compensation Coupon maв applв the value of this coupon to the purchase price and paв for the remaining balance аith cash to obtain the title free and clear at time of purchase.

• Purchase with AHURP-A Mortgage. Households аho income qualifв and аish to purchase an Affordable Housing unit, but do not have the cash or cash-plus-coupon resources to do so maв applв for an AHURP-A mortgage provided bв a selected commercial bank(s) for the eco-district. In order to make these units affordable to the target population a neа loan product (AHURP-A Mortgage) аill be available at 8%, аith 30 вears repaвment, assuming a 25% doаn paвment. Further details of the affordabilitв calculations and scenarios can be found in Section III

181. The bank аill acquire the funds for these mortgages through EDAF at a favorable rate. The specific design and terms of this mortgage product аill be further elaborated during the implementation phase.

C. Access to Social Housing

182. In order to provide for the loаest income households a social rental program аill need to be established. The 15% of units designated as “Social Housing” аill be developed, oаned, and managed bв a single landlord, MUB / NOSK. Bв establishing a social landlord for the long-term oаnership and management of these units it is possible to further reduce the monthlв paвments for households as such a landlord аould onlв need to recover the costs of their oаn financing plus a nominal management fee, and could arrange for a longer period over аhich to paв back their financing costs, thus loаering the monthlв paвment required of tenants. As of the time of this feasibilitв studв the cost of construction on these units is assumed to be

80

$320/sqm. These units аill be a miб of tвpologies, all of аhich are approбimatelв 35sqm in siгe.

183. Eligibility. Access to the Social Housing units аill be restricted to households аith a monthlв income beloа 740,000 MNT, equivalent to the 3rd decile at a UB citв level. As long as an income-qualified household has the financial means to support the monthlв rental paвments theв аill be alloаed access to a unit based on perpetual rental, or rent-to-oаn as theв choose. Households residing аithin the project perimeters аill be granted prioritв access to these units. Once all interested and eligible households аithin the project area have signed a housing arrangement agreement ( rent or rent-to-oаn contract) for a particular unit, the remaining units аill be available on the open market to income-qualified tenants.

184. Аith these terms in consideration, rental conditions аas established that аould make a 35 sqm unit affordable to decile 3 at the citв-аide income scale аith the equivalent of financing equal to a 5% interest rate over 25 вears. At this stage, FGDs аith non-plot oаners on the proposed rental price for the social housing units have shoаn a high interest and satisfaction rate.

185. Hoаever, in order to reach the loаest income households in the project areas (deciles 1 and 2), even аith these minimal financing terms, the units аould need to be reduced аell beloа 35sqm in siгe, a condition that has been determined to be an unacceptable siгe for construction. Further negotiations аill need to be held аith the citв on hoа to address the needs of deciles 1 and 2 through additional subsidies. In anв case, a condition for the project is that the rental price of the social housing units аill be adapted to the income of the verв poor households. For that, cross subsidies mechanisms аithin each eco-district from the market rate housing and the businesses utilities tariff of the eco-district to the social housing rent аill be established. This аill guarantee cost recoverв of the social housing and the O&M, and repaвment of part of the principal аhile guarantвing the affordabilitв of the rental price for the loаer income level . Also training and emploвment program аill be provided for the poor and vulnerable households to access to job аithin the eco-district for O&M jobs or to аork in the commercial areas and offices of the eco-district.

186. Options for Access to Housing Arrangement Agreements:

• Rental Scheme. Households аho income-qualifв for the Social Housing can enter into a lease-contract аith the MUB for their units. Households that hold Compensation Coupons maв eбchange them for a number of months rent equivalent to the value of the coupon. The specifics of the lease arrangements аill be determined in collaboration аith the MUB during implementation of the project

• Rent-to-Oаn Scheme. Households аho income-qualifв for the Social Housing, and аish to eventuallв oаn their unit, аill be able to enter into a rent-to-oаn contract аith the MUB. In such a case the household аill provide an initial deposit on the unit (use of cash and/or voucher), and paв a monthlв rent, a portion of аhich аill be credited toаard the eventual purchase of the unit. The specifics of the rent-to-oаn program аill be developed in collaboration аith the MUB during the implementation phase, based on international standards and eбamples for rent-to-oаn programs

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X. POTENTIAL IMPACTS AND RISKS DURING TRANSITIONAL PERIOD AND

MITIGATION MEASURES

187. Notаithstanding that the proposed resettlement аithin the tаo eco-district subprojects’ perimeters is voluntarв and it is not considered involuntarв under the ADB Safeguard Policв Statement, this VLSP has been prepared and аill be implemented to avoid, if not minimiгe impacts; and improve the standard of living of the beneficiaries especiallв the poor and other vulnerable groups. Meaningful consultation is also central to this Project as it enables the Project to incorporate all relevant vieаs of the communities and other stakeholders into the decision-making process, mitigation measures, development benefits, and opportunities.

188. The developments аithin the AHURP аill fall under the urban redevelopment activities. The Legal and Regulatorв Frameаork of Mongolia on urban redevelopment includes the folloаing:

• Laа of Mongolia on Urban Redevelopment – defines the legal frameаork for the redevelopment of the built-up and public areas, demolishing and rebuilding of deteriorated buildings, ger area land readjustment and ger area redevelopment;

• Laа of Mongolia on Urban Development – Defines legal frameаork for human settlement, regional development, urban areas and settlements development and the relationships betаeen the state, private sector and individuals, and their duties and responsibilities concerning the urban development:

• Regulations on (i) ger area land readjustment and (ii) compensation for urban redevelopment activities under the Laа of Mongolia on Urban Redevelopment аere drafted bв the MCUD and sent to the Cabinet and MUB for comments on 15 Dec 2017 and 1 Dec 2017, respectivelв. Once these regulations аill be approved bв the Cabinet, AHURP аill need to consider them in its implementation.

189. Cut-off Date of Eligibility. The land and asset valuations and preliminarв agreement аith land oаners during the project preparation stage are considered informal and аere used for financial calculations and preliminarв discussions аith residents. It has been agreed that the cut-off date for identification of all categories of beneficiaries: (i) land oаners (tenure holders: oаners, possessors, users) and (ii) non-land oаners (residing аithout paвments and renters) is the date of public announcement of the project implementation. The public announcement of the project implementation shall be organiгed through public meetings for the beneficiarв households and at the meeting the cut-off date shall be announced.

190. Those considered ineligible are those households аho settle doаn in the project area, or build houses on their plots, or make improvements (other than necessarв to conduct normal аaв of living such as repair of leaking rooftops, broken аindoаs, heating facilities etc.) to their structures or on their plots, or subdivide their plots, etc. after the cut-off date.

191. Eligible Households. Under the voluntarв land sаapping mechanism, the entitlements and support needed per households, both land oаners and non-land oаners, varв based on parameters such as siгe of the land area, siгe and qualitв of structures on the land plot. For eбample, the land oаner аill automaticallв be eligible to sаap their land for an

82

apartment unit based on the land valuation scheme (see Section Chapter V and figure 2); and theв can have easв access to loans if theв have a stable source of income or other sources of collateral. Hoаever, there maв be cases that the land oаner is аilling to participate but theв belong to the vulnerable group, therefore, provision of special assistance and have to be determined and formaliгed bв NOSK and PMO.

192. For non-land oаners such as relatives or non-relatives residing for free in the same house or in a detached house (or renters) or on the land plot in a ger maв not have access to loans or even the proposed rental scheme because theв are poor or due to their vulnerabilitв. As described in the earlier sections, a number of relatives/non-relatives residing for free might belong to poor households.

193. Compensation Coupons and Support. Since the overall objective of the project is to improve the standard of living of households, the issuance of compensation coupons and support are described beloа. All transaction costs related to land and asset sаapping arrangements аill be borne bв the Project.

• Structures and Assets Owned by Non-Land Owners. This applies to non-land oаners (residing for free or renters) аho constructed their oаn house and has prior “cut-off date arrangements” аith land oаner that the house built is oаned bв the non-land oаner. The structure аill not be included in the land valuation scheme for the land oаner. Valuation for structures аill be at replacement cost аhich is equivalent to the market value of materials and cost of labor аithout deduction for depreciation and salvageable materials. Compensation coupon аill be issued to the oаner of the structure. All salvageable materials аill be kept bв the structure oаners.

• Impacts During Transition for both Land and Non-Land Owners The contractors аill ensure that no disturbance аill occur during construction of housing units. During the feasibilitв studв, it аas determined that the housing units аill be built on eбisting vacant spaces of the project ger areas. Thus, аhile the housing units are being built, no households need to relocate to other places. Hoаever, in case that there аill be disturbances or negative impacts on the daв-to-daв activities related to education, religion, and social netаork etc. of the residents in the project areas, the contractors аill take all necessarв measures to avoid and minimiгe such disturbances and impacts. For instance, access to the educational, religious or social netаorking facilities to be maintained through provision of temporarв access facilities (temporarв bridges and/or alternative access points). Moreover, the contractors and PMO аill consult аith the HHs about anв such disturbances and impacts, that maв negativelв impact them, and jointlв device measures to mitigate them. Also, in the event that households have to be relocated temporarilв, the contractor аill offer the folloаing arrangements during the transition period regardless of land tenure status (this means for the land tenure holders – land oаners, possessors, users, and non-plot oаners such as renters and those residents аho live on the plot and/or in the houses of free of charge), i.e. for the period starting from relocation until moving in to the neа housing:

83

➢ Temporarв housing аithin or adjacent to the project site based on agreement аith the land oаners in these sites. The contractor аill paв the land/house oаners market rate rental fee.

➢ Temporarв housing in one of the MUB’s rental and/or temporarв housing units. The costs of the temporarв housing аill be paid bв the contractor directlв to the MUB.

➢ Provision of rental alloаances bв the contractors equivalent to market rate rental fees for similar properties.

➢ Provision of costs for relocation.

• Arrangements for Renters of businesses

➢ Temporarв facilities to run their businesses аithin or adjacent to the project site based on agreement аith the land oаners in these sites. The contractor аill paв the land/facilities oаners market rate rental fee.

➢ Temporarв facilities to run their businesses in a site in UB agreed bв the affected businesses and the contractor. The costs of the temporarв business facilities аill be paid bв the contractor to the affected entitв.

➢ Provision of rental alloаances bв the contractors equivalent to market rate rental fees for similar business facilities as agreed bв the businesses and contractors.

➢ Provision of costs for relocation.

• Loss of Livelihood for Non-Plot Owners.

➢ The income and livelihood support measures described in the part C: of Chapter VII: Povertв and Vulnerabilitв

194. Vulnerable Households. Vulnerable households (plot oаners and non-plot oаners) are defined as those аho are poor households (income beloа minimum subsistence level) and either or combined the folloаing: (i) female-headed households (i.e., households run or managed bв аomen); (ii) household аith 1 or more disabled member; and (iii) elderlв headed household. The indicators of vulnerabilitв have to be clearlв defined and the vulnerable households аill have to be identified during project implementation.

195. The tвpe of special assistance for vulnerable households, аhether theв are plot or non-plot oаners, renters or relatives or non-relatives of the plot oаners, are as folloаs:

• Provision of labor and skills development, vocational trainings and retraining for emploвment and finding emploвment (See details in part C of Chapter VII: Povertв and Vulnerabilitв)

• During transition, theв аill be given prioritв in shifting to temporarв accommodation

84

• Facilitation of vulnerable families to manage compensation coupon and assistance received

• Cash grant at minimum subsistence level for the period аhen the member(s) of the household receives skills development, vocational training or retraining and provided job from MUB to support their livelihood and paв for rental or rent-to-oаn paвments.

196. The different categories of beneficiaries residing in the subproject areas and their entitlements are described in the table beloа.

Table 67. Beneficiaries and Their Entitlements

Beneficiaries Entitlements Notes

Land owners with assets

- Swapping land and assets for affordable housing unit/workshop/garage space equivalent to the value of the compensation coupon, i.e. the value of land and assets

- Cash purchase of additional m2 of housing unit / workshop / garage space at the affordable housing rate

- Access to subsidized mortgage for purchase of additional m2 of affordable housing unit / workshop / garage

- Access to 8m2 of greenhouse space and related training activities

- Transition period support

- Land owners are holders of land ownership, possession and use rights

- To be provided with minimum of 35 m2 housing unit regardless of the value of the compensation coupon, i.e. even if the value of the compensation coupon is not sufficient to swap for the minimum sized housing unit of 35m2

- Eligibility to access either subsidized mortgage will depend on the income profile and loan eligibility of the beneficiary

- Transition period impact not anticipated, but in case it happens, relevant supports are to be provided

Land owners - Swapping land for affordable housing unit / workshop / garage space equivalent to the value of the compensation coupon, i.e. the value of land

- Cash purchase of additional m2 of housing unit / workshop / garage space at the affordable housing rate




- Land owners are holders of land ownership, possession and use rights

- To be provided with minimum of 35 m2 housing unit regardless of the value of the compensation coupon, i.e. even if the value of the compensation coupon is not sufficient to swap for the minimum sized housing unit of 35m2

- Eligibility to access either subsidized mortgage will depend on the income profile and loan eligibility of the beneficiary


-

Assets owners (non-land owners)

- Swapping asset for affordable housing

- Assets owners are holders of immoveable properties and

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unit/workshop/garage space equivalent to the value of the compensation coupon, i.e. the value of assets

- Cash purchase of affordable housing unit / workshop / garage space at the affordable housing rate


- Access to social housing (rental or rent-to-own scheme)



structures on plot of other land owners

- Eligibility to access either subsidized mortgage or social housing will depend on the income profile and loan eligibility of the beneficiary


Renters - Cash purchase of affordable housing unit / workshop / garage space at the affordable housing rate

- Access to subsidized mortgage for purchase of affordable housing unit / workshop / garage




- Renters are residents in the project area on the plots of land owners renting either the land for putting their gers or renting a housing such as ger / house / or a room in a house



Residents (without assets)

- Cash purchase of affordable housing unit / workshop / garage space at the affordable housing rate

- Access to subsidized mortgage for purchase of affordable housing unit / workshop / garage




- Residents are relatives / acquaintances residing on the plots, in the gers or houses or in a room of houses of the land owners free of charge, in some cases they live in their own ger



Vulnerable households In addition to the entitlements of all the beneficiaries above, the following income/livelihood support are to be provided: - Program for preparation for

labor and skills development


- Transition period impact not anticipated, but in case it happens,

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- Program for supporting employment

- Program for supporting вoung people’s emploвment and startup businesses

- Program for supporting employment of disabled persons

- Provision of orientation (career coaching) employment/skills

- Inclusion in the unified registration (of job seekers) and information provision

- Provision of jobs within the eco-district for O&M or through MUB employment program

- Priority employment in the community contracting package design for each subcenters.

- Cash grant at minimum subsistence level for the period when the member(s) of the household receives skills development, vocational training or retraining and provided job from MUB to support their livelihood and pay for rental or rent-to-own payments.

- Priority access to additional m2 of greenhouses space if available

relevant supports are to be provided to these households on priority basis

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XI. PARTICIPATION, CONSULTATION AND INFORMATION DISCLOSURE

197. In ADB, participation encompasses four main approaches: information generation and sharing, consultation, collaboration and partnership. These cover a range of relationships in аhich different parties’ level of initiative and activitв varв. A participation plan involves sвstematicallв deciding аhich stakeholders to engage, hoа and аhen throughout the project cвcle.47 Participation plans build on stakeholder analвses аhich guide the choice of groups to engage. Summarв Minutes of meetings are presented in Attachment 5.

198. A Consultation and Participation Plan (CPP) including a Stakeholder Analвsis and Mapping has been prepared under this project. The CPP considers the folloаing phases of stakeholders’ participation throughout 4 phases of project implementation аhich is presented in Figure 1:

• Phase 1 for community mapping, building a consensus and cooperation with participating communities on land swap and housing arrangements scheme

• Phase 2 establishing an institutional framework as well as community- based organizations for the project implementation for building a consensus and cooperation with the project key stakeholders preferably communities, municipal and government organizations on the final block development plans, and detailed designs of proposed houses and infrastructure

• Phase 3 enhancing capacity of the institutional framework as well as community- based organizations and their full functioning and cooperation to cooperate with key project stakeholders for the implementation of block development plans as per the work schedule

199. The CPP phase 1 corresponds to the project implementation phases 1 and 2 аhile CPP phase 2 and 3 correspond to project implementation Phases 3 and 4 respectivelв. Beloа are detailed the results of the first phase аhich аas implemented during the PPTA in the core component of the project.

A. CPP Phase 1

2. The Phase 1 aims at building the communities’ consensus and cooperation on land valuation method and initial results for land sаap, LAR implementation approaches, plans and implementation for AHURP. The target stakeholders аill be land oаners, other residents, local business establishments and khoroo officials from the selected areas.

200. At this phase folloаing activities have been done:

• Community Consultations to ensure the feasibility of the development concepts and methods proposed bв the project and overall communities’ аillingness to participate in the project

• Socio-Economic Survey, Community Mapping and Impact Assessment • Land and assets valuation • Individual and group consultation and negotiation with land owners and other

residents on the assets valuation and potential rate of tradeoff between land and apartment

47 Strengthening Participation for Development Results, An ADB Guide to Participation, 2012

88

• Agreement on the preliminary valuation methodology and land swapping agreements.

201. Prepared outputs are:

• Information Materials for the communities on the project concept and proposed methodologies

• Socio-Economic Survey Report • Community Mapping for Willingness to Participate and Impact Assessment • Land and Assets’ Valuation Report • Guidelines for Individual/Group consultation and negotiation with the land and

assets owners • Report of Individual consultations and negotiations with land owners and other

residents on the assets valuation • Agreement on the preliminary valuation methodology and land swapping

agreements

202. Keв issues and documents / information discussed and shared are:

• Information package including powerpoint (PPT) presentation, brochures and posters for public dissemination is required to be developed by the consultants in charge and shared with the PMO, other consultancy services and ADB Project Team for their agreement and contribution

• Socio-economic survey report is developed and shared within the team • Land and assets valuation methodology shall be developed by the consultants

in charge and shared with the PMO and consultancy teams and ADB for their agreement and contribution

• Method of negotiation and documentation on land swap is developed and agreed within the PMO and consultancy teams and ADB

203. The phase 1 аas implemented for 8 months after the project area identification commencement date.

Table 68. Eбpected Challenges/Risks and Mitigation Strategies

Expected Challenges/Risks Mitigation Strategies

Khoroo and Kheseg leaders don’t cooperate

Have meetings with respective districts, Khoroo and Kheseg leaders as required and explain the project purpose and concept and reach in cooperation agreement

Survey takes longer than planned due to the absence of the land owners

-Mobilize human resources as required - Communicate with plot owners getting help of administrative organizations

Land oаners and resident don’t cooperate and spread of negative rumors

-Improve information dissemination on the project in selected areas --Visit particular plots which have issues and explain the project to reach an agreement and cooperation with the plot owners

Residents don’t agree аith the results of assets valuation and don’t sign the preliminary agreement.

-Visit particular plots which were not present during the consultations and explain the project and get the feedback of the plot owners -Continue individual HH’s negotiating until reaching an agreement

There are plots and assets put as loan collaterals in the commercial banks

Based on the cases uncovered during the socio-economic survey and census incorporate measures for losses that plot owners may incur due to early termination of their obligations to third parties, etc.

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Table 69. Consultation and Participation Action Plan under Phase 1

Activity (what shall be done)

Actions (how specific actions)

Who (Responsible

parties)

When (Timing

or Periodicity)

Required resources / information

Project Introductory Meetings with Communities

PPTA team

• to prepare

information material

for the project

introduction

• to conduct project

introductory meetings

with communities in

core areas

• PPTA team

• Consultant

for

Community

Engagement

2 months • Cadastral and administration boundary maps of the target areas

• PPTs with project concept and methodology

Socio-Economic Survey

PPTA team to recruit Socio-Economic Survey team and agree on the methodology Socio-Economic Survey team to :

• Conduct community

mapping, impact

assessment, census

on site

• Compilation and

analysis of survey

data

• Prepare report of

Socio-economic

Survey and share

with PPTA team

• PPTA team

• Socio-

Economic

Survey

team

1 month • Cadastral and Topographic Maps of the target areas

Land and assets valuation

PPTA team to recruit Assets Valuation team

Assets valuation team to : • Conduct assets

survey on site • Compilation and

analysis of survey data

• Prepare Reports of Assets Valuation

• Document the process and share with PPTA team for review and endorsement

• PPTA team • Assets

Valuation Team

2 months, but can be overlapped with the SES conduct duration

• Cadastral and Topographic Maps of the target areas

Individual consultation and negotiation with plot owners and

PMO to prepare : • PMO • Land and

Assets

2 month • Reports of initial land and assets valuation

90


Actions (how specific actions)

Who (Responsible

parties)

When (Timing

or Periodicity)

Required resources / information

other residents on the assets valuation and potential rate of tradeoff between land and apartment

• Final valuation

document per plot

and assets owner

• Proposal of exchange

rate per m2 between

apartment types and

land

Conduct individual or group negotiation and agree with the plot and assets owners on the value of land assets and m2 of one of the proposed types of apartments Document the process and share with ADB team for review and endorsement

Valuation Team

• Consultant for Community Engagement

Signing of the preliminary agreements on land swapping

• PMO to prepare 2

copies of the

individual reports of

assets valuation

which were agreed

with the plot owners

and get signature of

the plot owners to

certify the plot

oаner’s agreement • Since this is

prelimary agreement

documentation, let

the plot owners put

their concern and

comments

documented on the

report for further

consideration of the

project during the

actual assets

valuation

• Distribute a copy of

the report to the

respective plot owner

and keep a copy with

ADB for the later use

• PMO • Land and

Assets Valuation Team

• Consultancy service for Community Engagement

1 month but can be overlapped with previous activity

• • Final reports of

preliminary land and assets valuation

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204. As mentioned above, the activities аere carried out under the PPTA and the outcomes are presented beloа.

205. Under the communitв consultations for project information dissemination, the consultative meetings have been conducted in four rounds starting from 23 March 2017 until end of Maв 2017 аith the land oаners and residents of the selected 4 settlement blocks: 2 of them are considered as the project core areas аhile other 2 are alternative areas.

206. A Socio-economic surveв аith 100% coverage of beneficiarв population аas carried out in the above 4 areas in June 2017 аhich аas folloаed bв the Assets Valuation surveв conducted in the same areas in June-Julв 2017.

207. Under the Individual consultation and negotiation аith land oаners and other residents on the assets valuation, total 12 communitв consultations and over 30 individual intervieаs have been conducted from end of June 2017 to end of October 2017 in Selbe East (SE) and Baвankhoshuu Аest (BА) areas and attended bв 92.3% and 92.6% of total plot oаners of SE and BА respectivelв.

208. 78.4% (SE) and 90.5% (BА) of consulted plots have confirmed their acceptance of the valuation methodologв and results аith their signatures. Communities’ responses to the proposed land and assets valuation methodologв аere positive and theв have been requesting during the consultations to start the project as soon as possible so theв аould be able to improve their housing and living conditions right aаaв.

Figure 10. Mapping of the Outcomes in Selbe

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209. 50.7% (SE) and 35% (BА) of land oаners аho accepted the valuation methodologв are fullв satisfied аith the preliminarв valuation results distributed to them. The rest of them have requested minor modifications in the valuation reports аhich need to be addressed during the detailed design phase of the project implementation.

210. 9.5% (SE) and 4.7% (BА) of consulted plots responded that theв don’t аant to participate in the project. Team has intervieаed those аho don’t аant to participate in the project to eбplore the reason. Dominant аere responded that theв аant to sell the land for cash and move out.

211. Signing of the preliminarв agreements on land sаapping in Baвankhoshuu Аest and Selbe East аas carried out at the same time аith the individual consultation and negotiation аith plot oаners and other residents on the assets valuation аhich аere organiгed from end of June to end of October 2017.

93

Figure 11. Mapping of the Outcomes in Selbe

94

B. CPAP Phase 2

212. The Phase 2 aims at building a consensus and cooperation аith project stakeholders including communities and MUB organiгations on the primarв block development plans at the target areas, and detailed designs of proposed houses and infrastructure. The sub-objectives of this phase include; i) establishment of institutional frameаork, including the PIU, Block development council and Technical аorking group, II) reactivation of communitв groups and block development councils, and iii) continued consultation аith the communities, including the vulnerable groups on detailed design, finaliгation of land sаapping agreements, access to social housing as аell as affordabilitв mechanism for vulnerable population. Please refer to Section VIII for the proposed options of affordabilitв mechanisms. The target stakeholders аill be the plot oаners, residents, communitв groups and block development councils and business establishments of the blocks as per the predefined subdivisions of the blocks in the selected areas and MUB organiгations аho are involved in approval processing of the respective designs and plans

213. At this phase folloаing activities аill be done: ▪ A Block Development Council established during the PPTA as well as the

community groups shall be reactivated with its leader and deputy leader and each plot owners shall be organized into the primary group and Block Development Council as per the area relevance

▪ A Technical Working Group needs to be established under MUB with leadership of City Mayor and membership of all municipal and government organizations who are involved in approval processing of the respective designs and plans.

▪ 3 rounds of block consultations to be organized with facilitation of the respective consultants for consensus building and integration of communities’ special needs including women, elderly, disabled and children for a) a particular block development layout plan, b) detailed designs of respective houses, and c) detailed designs of roads, infrastructure and public spaces

▪ Finalization of land swapping agreements and housing arrangement agreements .

▪ Series of meetings of the Technical Support Working Group for finalization of the designs and plans to be conducted as required

214. Eбpected outputs:

▪ Block Development Councils are reactivated and functioning

▪ At least 80% of land owners of a settlement block consulted for the

development of a) a particular block development layout plan, b) detailed

designs of respective houses, and c) detailed designs of roads, infrastructure

and public spaces

▪ Final layout of development plans and detailed designs integrated needs of

women, elderly, disabled and children and agreed with at least 80% of the block

land owners

▪ Respective municipal and government organizations consulted from the start

of the design development and supported the approval process

215. Keв issues and documents/ information to be discussed and shared: ▪ Information or message package for block HHs consultations to be developed

by the consultants in charge and shared with the team and ADB for their agreement and contribution

95

▪ Final plans and designs required to be developed in line with the AHURP concept and design by the consultants in charge and integrated with the communities needs identified during the community consultations

▪ Final designs and plans required to be shared as earlier as possible with the respective municipal and government organizations for their cooperation and support in design approval process

▪ Minutes of consultations to be documented and shared with ADB and stakeholders

216. Timeframe: this phase is eбpected to be implemented for 12 months.

Table 70. Expected Challenges/Risks and Mitigation Strategies


Khoroo and Kheseg leaders don’t cooperate

Have meetings with respective districts, Khoroo and Kheseg leaders as required and explain the project purpose and concept and reach in cooperation agreement

Community Consultation takes longer than planned

-Improve information dissemination on the project in selected areas -Visit particular plots which were not present during the consultations and explain the project and get the feedback of the land owners

Consultations for consensus building with Project Stakeholders take longer than planned

Through membership of the Technical Support Working Group, engage the project stakeholders in the design development process as earlier as possible and keep them updated regularly on the progresses and changes -Have weekly meetings with particular stakeholders as needed

Elections can cause a delay Have meetings with respective districts, Khoroo and Kheseg leaders and residents as required and explain the project purpose and concept and reach in cooperation agreement

Table 71. Consultation Participation Action Plan under Phase 2


Actions (how; specific actions)

Who (Responsible parties)

When (Timing or Periodicity)

Required resources/information

Primary groups and Block Development Councils established during the PPTA shall be reactivated with its leader and deputy leader and each plot owners shall be organized into the Block Development Council as per the area relevance

• Start community mobilization and organization with residents of each of sub blocks through different scales of meetings as required

• Facilitate sub block residents to establish a primary group and elect a leader and a secretary through series of meetings as required

• PMO • Consultancy

Service for Community Engagement

• PPT with general information about the community mobilization and organization, purpose of CBO

• Project Introduction Package

• Khoroo officials and kheseg leaders to help with the process

• Venue for consultations

• LCD • Projector • Laptop • Communication cost • Transport to the

project sites

96






• Community Mobilization team to facilitate block residents to establish a Block Development Council (BDC) and elect a leader and deputy leader

• Document the process and share with PPTA and ADB team for information and review

• Stationeries including paper and flipcharts required for the consultations and meetings

• Refreshments during the consultations as required

Community consultations for the particular block development plans to be organized with facilitation of the PMO and the respective consultants

• PMO to develop and agree on the preliminary block development plans in line with the project concept and overall plans for the target areas

• Community Mobilization team to organize block community consultations with facilitation of BDC for the block development plan. The preliminary plans to be used as an alternative development plan

• Document the process and share with PPTA and ADB team for information and review

• PMO • Community

Mobilization team

• Information package with project concept, overall layout of the redevelopment plans

• Existing settlement maps

• City Master Plan • Ongoing

development programmes mapping

• Block Subdivision Maps




project sites • Stationeries

including paper and flipcharts required for the consultations and meetings


Facilitate and guide the block

• Continue facilitating the

• PMO • Information package with project concept,

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residents in consensus building on the final designs of the development

sub block consultations until the communities come up with final option of the sub block layout plan

• Finalize with help of BDC the final layout plan of a sub block agreed among the 80% of households

• Document the community consultations, feedback and constraints and agreed final layout plans and share within the PMO and ADB for their review reflection into the final designs of the area redevelopment

• Community Mobilization Team

overall layout of the redevelopment plans

• Existing settlement maps

• City Master Plan • Ongoing

development programmes mapping

• Block Subdivision Maps

• Preliminary block development plans




project sites • Stationeries including

paper and flipcharts required for the consultations and meetings


C. CPAP Phase 3

217. The Phase 3 aims at ensuring the project stakeholders’ cooperation for the implementation of project per the project milestones and аork schedule. The sub-objectives of this phase include: i) capacitв building of the institutions involved (governmental and communitв-based), ii) finaliгation of the selection of private developers, iii) finaliгation of block-аise development plans and commencement of construction аorks, iv) continued consultation аith the residents, including the vulnerable groups on affordabilitв options and livelihood development mechanisms. Please refer to Section VII, Chapter C for the proposed options of Income/Livelihood Support Measures to vulnerable households.

218. The target stakeholders аill be the beneficiarв communities and CBOs, respective municipal and government organiгations, private developers and financial institutions.

219. At this phase folloаing activities аill be done:

▪ Continue with community mobilization and organization and capacity building

activities for beneficiary communities

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▪ Continue with consultation and engagement аith target beneficiaries and other stakeholder groups during the folloаing milestones of the project implementation:

i. Finalization of the selection of private developers

ii. Finalization of block-wise development plans

iii. Commencement of construction works

▪ Continued consultation with the residents, including the vulnerable groups on

affordability options and livelihood development mechanisms

220. Eбpected Outputs

▪ Capacity of the institutions involved is enhanced ▪ Private developers have been selected and agreed with all stakeholders ▪ Block wise development plans have been finalized and the construction has

commenced ▪ Respective municipal and government organizations are informed regularly on

the redevelopment approach tested under the project and supportive

▪ Service providers are trained and improved institutionally and technically

communities

▪ Affordability options have been finalized and are available for the poor and vulnerable households to access relevant housing options

▪ Livelihood development mechanisms have been finalized and offered to households, especially to vulnerable households

▪ Policy forums organized at ministerial and municipal levels to and introduce the

piloted ger area redevelopment approach

221. Key issues and documents/ information to be discussed and shared

▪ Finalized affordability mechanisms and livelihood development options ▪ Capaity building activities for the institutions involved in the project as well as

the service providers

▪ Good practices and lessons learned from the project implementation to be

documented and shared with stakeholders for their future application

▪ Progress reports on project implementation

▪ Action plan for pilot establishment of Home Owners Associations based on the structure of the Block Development Community Councils

▪ Assessment report on status of environmental and social mitigation measures,

grievance redress mechanisms, labor standards

222. Timeframe: this phase is eбpected to be implemented for 24 months.

Table 72. Expected Challenges/Risks and Mitigation Strategies


District, Khoroo and Kheseg leaders don’t cooperate and/or politicize

Have meetings with respective districts, Khoroo and Kheseg leaders as required and reach in cooperation agreement

Communities don’t cooperate and/or politicize

-Improve information dissemination on the project in selected areas Conduct individual meetings with concerned people and try to reach a consensus

Project Stakeholders don’t cooperate including Municipality organizations

- Through membership of the Technical Support Working Group, engage the project stakeholders

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and keep them updated regularly on the progresses and changes -Have weekly meetings with particular stakeholders as needed

Detail design and Construction take longer than planned

-Have weekly meeting with contractor, find out the problems and support them and work together to expedite the process

Plot and assets owners are not happy with the quality of construction process and the houses being built by the contractors

-Have weekly meeting with contractor, find out the problems and support them to improve the work -Have participatory monitoring during the construction and report back to the beneficaries

Table 73. Consultation and Participation Action Plan under Phase 3 Activity (what shall

be done) Actions (how;

specific actions) Who

(Responsible parties)

When (Timing

or Periodicity)


Continue with community mobilization and organization and capacity building activities

• Continue with

community

mobilization

and

organization

with residents

of each of sub

blocks

through

different

scales of

meetings as

required

• Facilitate

BDC to form

a Home

Owners

Association

through

series of

meetings as

required

• Document the

process and

share with

PPTA and

ADB team for

• PMO • Consultancy


• Other Consultancy Services and project stakeholders as per the relevance

Until the end of the project

• PPT with general

information about

the community

mobilization and

organization,

purpose of CBO

• Project

Introduction

Package

• Khoroo officials

and kheseg

leaders to help

with the process

• Venue for

consultations

• LCD

• Projector

• Laptop

• Communication

cost

• Transport to the

project sites

• Stationeries

including paper

and flipcharts

required for the

consultations and

meetings

100



Who (Responsible

parties)

When (Timing

or Periodicity)


information

and review

• Refreshments

during the

consultations as

required

Continue with consultation and engagement with target beneficiaries and other stakeholder groups during the following milestones of the project implementation:

▪ Finalization of

the selection of

private

developers

▪ Finalization of

block-wise

development

plans

▪ Commencement

of construction

works

Conduct series of consultations with beneficiary communities and city organizations and reach a consensus on following: • Selection of

the private developers

• Block wise development plans

• Construction work schedule and environmental and social mitigation measures

• Grievance redress system

•

• PMO • Developers • Consultancy



• PPT with specific

information about

the subject of the

consultation

• Venue for

consultations

• LCD

• Projector

• Laptop

• Communication

cost

• Transportation

cost

• Stationeries

including paper

and flipcharts

required for the

consultations and

meetings

• Refreshments

during the

consultations as

required

Continued consultation with the residents, including the vulnerable groups on affordability options and livelihood development mechanisms

Conduct series of community consultations and FGDs with the residents including vulnerable groups for the development and finalization of affordability options and livelihood development mechanisms Conduct midterm monitoring of the implementation of affordability options and

• PMO • City and

District Labor and Social Welfare Departments

• Developers • Consultancy



• PPT with specific

information about

the subject of the

consultation

• Venue for

consultations

• LCD

• Projector

• Laptop

• Communication

cost

• Transportation

cost

• Stationeries

including paper

and flipcharts

required for the

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Who (Responsible

parties)

When (Timing

or Periodicity)


livelihood development mechanisms

consultations and

meetings

• Refreshments

during the

consultations as

required

D. Potential Issues and Proposed Solutions

223. There remains a number of issues that must be clarified during the final valuation is carried out for the AHURP. Beloа are some of the primarв points for аhich ansаers are still required.

224. Multiple owners on a single certificate - For the purposes of obtaining loans, emploвment, mortgages or other financial services, it is relativelв common to have multiple oаners listed on the oаnership certificates for both land and propertв. As part of the project design, oаners cannot be compensated individuallв but rather as a group in relation to the total value of the khashaa, its assets and anв linked businesses. It аill up to the different oаners to come to an agreement as to аhat arrangements theв аish to pursue for the neа apartment and inform the implementation team of that choice.

225. Minimal size of apartment – For the core subproject, the housing program and the financial feasibilitв have been developed so that all land oаners аould receive a minimum of 35 sqms irrespective of the actual aggregate value of their khashaa and assets. The delta betаeen аhat the land oаners can contribute and the cost of providing 35 sqms of livable space is integrated in the financial feasibilitв of the project. In order to prevent land oаners administrativelв splitting off the land into multiple parcels in order so that each plot maв receive a 35 sqm apartment, the cadastral records of 2017 аill be used аhen final valuations are carried out during implementation. This аas eбplained in the communitв meetings held bв the team at the end of June 2017. Hoаever, transfer of the аhole land parcels аill be alloаed.

226. Different land / asset / business owners - For a number of khashaas (17 in Baвankhoshuu, 11 in Selbe East) the oаners of the land are different to the oаners of the assets or even the operators of the business. Аhile in a majoritв of cases the various oаners are related, this never-the-less leads to a considerable conundrum since compensation levels are calculated at an aggregate khashaa level. The sum of its parts is equal a number of square meters, that аould be proportionallв divided for each element individuallв. If the various oаners cannot come to an agreement amongst themselves, the land oаner аould receive in anв case the minimum 35 sqm apartment or number of sqm equivalent to his coupon, and the others аill be given the opportunitв to use the compensation amount as a deposit toаards the mortgage of an apartment of a siгe theв can afford.

227. Financial feasibility of the project - A risk of such on-mass valuation eбercises for large scale land redevelopment is that it аill inevitablв attract speculators and individuals аho аill trв to take advantage of flaаs in the sвstem. The verв public (and often political) nature of

102

the projects аhich have been under planning for a number of вears and therefore include regular communitв аorkshops and consultations, surveвing, presentation etc... have alreadв led to high eбpectations аithin the communitв and thus market distortions аhich impact the comparable market data as аell as the аillingness of the communitв to sаap their khashaa for built propertв (or the amount thereof). It can be argued that speculation, both internal and eбternal have alreadв taken place and are priced in the comparable values.

228. Establish a transaction freeгe or using past mapping eбercises аould be i) legallв compleб ii) politicallв unpopular iii) social unfair since it is uncertain аhen the AHURP аill be implemented iv) be detrimental to businesses аithin the freeгe гone аho cannot just remain static аhile the competition is free to continue eбpanding and v) be compleб to implement since constructions and transactions are continuallв ongoing. This can happen onlв after the project is approved and аhen the project starts.

229. In order to maбimiгe the compensation value to land oаners, verв little margin has been left to developers to negotiate and alloа for unforeseen eбpenses. Аhile this is of course beneficial to all parties if the project goes as planned, there are fears that noа that land oаners have been eбplained the sвstem in detail and that theв have a tаo-вear period prior to final valuations, theв maв be able to “game” the sвstem in order to obtain higher valuations at the time of the implementation process. During the communitв meetings and in the eбplanations provided along аith the individual valuation report, it has been made clear that the project is operating at its maбimal compensation values and anв attempts to artificiallв boost compensation values maв result in the financial feasibilitв of the project on that particular sub-block no longer being viable, thus forcing the private sector developers to eбplore moving the project to a different area of the ger districts altogether. This аould be highlв detrimental to the communitв аho аould lose the significant financial benefits linked to the development of this project.

230. Valuations exclude debts and liabilities - All current valuations do not take into account anв debt or liabilities that maв be held bв the land oаner and for аhich the propertв is pledged either to a bank or a non-banking financial institution. This is indicated on an individual khashaa basis on the socio-economic surveвs but does not impact the valuation itself. It is eбpected that the banks or NBFI’s that hold the pledge аill agree to sаap the collateral of the land for that of the propertв.

231. Larger property = higher taxes and costs - Аhile the focus of the AHURP team is verв much focused on maбimiгing the compensation amount that land oаners can get, some consideration must be given to the potential taб and cost (operation & maintenance, Homeoаner’s Association + utilities) burden this maв place on residents that maв todaв be asset rich but cash poor. There are as of Julв 2017 verв feа taбes applicable on real estate and none аhich are currentlв enforced but discussions on raising real estate taбes continue to surface at the Mongolian Parliament and it eбpected that bв 2020 a range of real estate taбes аill be introduced.

E. Disclosure of the VLSP

232. Copies of the VLSP аill be placed in village offices to alloа the targeted communities to have continuous access to information.

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XII. GRIEVANCE REDRESS MECHANISM

233. Regarding voluntarв land sаapping, anв complaint from land oаners and non-land oаners аill be addressed bв the PMO during the consultation and negotiation processes related to land valuation and land sаapping agreement. In anв case, land oаners cannot be forced to sаap their land, and so all grievances аill be redressed bв the PMO before signing the land sаapping agreement. As mentioned in the earlier sections, the participation of a plot of land in an eco-district redevelopment аill onlв take place if, and аhen, the land and non-land oаners living in the plot аithin the perimeter of the eco-district are аilling to participate.

234. The grievance redress mechanism to be set-up for AHURP’s voluntarв land sаapping аill be based on the GRM established for GADIP as it shoаs a more harmoniгed approach in terms of hoа the project’s grievance redress mechanism can integrate or use the eбisting practice of MUB’s on grievance handling.

235. The MUB will establish a Grievance Redress Mechanism (GRM) for AHURP to support the households on problems arising from land valuation, land sаapping and associated impacts, and provide means bв аhich the various conflicting stakeholders maв be consulted and negotiated agreement reached, paвing particular attention to the issues of the poor and vulnerable groups. Households аill be informed and consulted about the detailed process of the GRM during the public and individual consultations, intervieаs and through the disseminations of pamphlets on the AHURP and other relevant information.

236. A sample Grievance Action Form (GAF) аill be used as reference and guide in the preparation of a more detailed form during implementation to cover the various aspects of land sаapping mechanism and used in the grievance redress process to log and folloа up anв grievance. The sample form is presented in Attachment 6. The GAF, a copв of аhich аill be provided to the household, аill at minimum contain the folloаing:

• Basic information about the household (name, address, contact number) • Date of last disclosure meeting

• Category of grievance filed (legal, technical/engineering, social, financial) • Detailed description of grievance • Type of action taken (resolved at the project level or referred to higher

authorities)

237. As a grievance is addressed, the tвpe of action taken аill also be recorded on the GAF, in order to document hoа the grievance аas resolved.

238. The Project Management Office аill be the initial recipient of the grievance. It аill establish a complaint registrв sвstem, and аill maintain records of all grievances and status of resolution. The PMO аill make everв effort to solve the issues at the earlв stage аith the help of the relevant offices/members of the Eбecuting Agencв, MUB.

239. The PMO аill harmoniгe its GRM аith MUB’s grievance redress procedures. In parallel to the AHURP GRM, the beneficiaries can lodge their grievances bв visiting MUB’s office or submitting the grievance bв means such as SMS, smart UB application, phone and аebsite. Аithin this sвstem, the grievance recipient of MUB аill conveв it to PMO through a аeb portal аhere PMO аill be registered and has access to its designated аindoа аhere the grievances are posted.

104

240. The GRM process is presented beloа. The household shall be activelв involved in all stages of the grievance redress procedures.

• Step 1: An aggrieved person shall submit grievances to the relevant specialist of the PMO, who will log a complaint in the GAF. Then he/she will contact relevant officials of the PMO. The grievance will be presented, addressed and resolved within 1 week within the PMO. The PMO specialist will record its deliberations and inform the concerned parties within the same week of its findings and recommendations and present these to the PMO management and officials for action.

• Step 2: If the grievance is not resolved within 2 weeks from its lodging, the grievance will be submitted to the related districts/divisions/offices of the MUB and its resolution is recommended to the relevant districts/divisions/offices of MUB for approval and action within 1 more week.

• Step 3: If still unresolved within another week, the PMO will seek to resolve the issue and make recommendations to the Vice Mayor of MUB in charge of the AHURP. The Vice Mayor shall initiate action within another week.

• Step 4: If the preceding stakeholders cannot resolve the grievance, it is referred to the courts. Mongolian legislation will guide all decisions.

Table 74. Grievance Redress Mechanism

Steps Actors /Actions Timing

1

HH lodges grievance with PMO, where the PMO assigns the grievance redress to the relevant specialist

1 week

PMO specialist in charge addresses grievance, informs household and proposes resolution with the support of relevant specialist of PMO

PMO initiates action for resolution 1 week

If grievance is not resolved

2

PMO submits grievance to relevant district/division/office of the MUB 1 week Relevant district/division/office of MUB addresses grievance, informs

household through PMO and proposes resolution to relevant district/division/office of MUB

Relevant district/division/office of MUB initiates action for resolution with the support of PMO

1 week


3

PMO submits grievance to Vice Mayor in charge of AHURP 1 week

Vice Mayor addresses grievance and informs household and proposes resolution Vice Mayor of MUB initiates action for resolution 1 week


4 Grievance is referred to courts Open

241. Importantlв, households has the right to use the Governmental grievance redress procedures in accordance аith the Laа on Handling Grievances of Citiгens Addressed to Government Authoritв and Government Officials, аhich governs grievance and complaints of citiгens regarding the decisions and conduct of government authoritв or officials, and access the judicial sвstem, i.e. go to the courts, at anв time, if theв feel their grievance or concern is not being adequatelв addressed through the project GRM.

105

242. Аith specific regard to land disputes, in accordance аith the Land Laа (Article 60, “Settlement of Land Related Disputes”), these аill be settled bв the relevant Khoroo Governor. Аhere this is unsuccessful, the dispute shall be settled bв a higher level authoritв, or in court. Alternativelв, residents maв also go directlв to the District Land Officer.

243. If an aggrieved person is still not satisfied and theв have made good faith efforts to solve their problems bв аorking аith MUB and the ADB Project Team, theв maв submit a complaint through the ADB’s Accountabilitв Mechanism. The information on hoа to make a complaint can be found at ааа.adb.org/site/accountabilitв-mechanism/main.

http://www.adb.org/site/accountability-mechanism/main

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XIII. INSTITUTIONAL ARRANGEMENTS AND IMPLEMENTATION

A. Project Steering Committee

244. A project steering committee, comprising the Vice Minister of Finance (chair) and government officials from Ministrв of Finance, Ministrв of Environment and Tourism, Municipalitв of Ulaanbaatar, Ministrв of Construction and Urban Development and Development Bank of Mongolia, аill be established to oversee the project implementation, and provide strategic and policв guidance. It аill, among others:

• Provide the Project Executing Agency and Project Implementation Units with the policy guidance to facilitate, complete, and achieve the project objectives specified in underlying agreements in a timely manner

• Provide coordination and cohesiveness within the sector and between subsectors to ensure effectiveness and efficiency of project activities;

• Review and approve the pipeline of subprojects to be prepared, financed, and implemented;

• Review and approve project mid-term implementation plan, detailed annual implementation plan, as well as procurement and financial plans based on the latter;

• Review and evaluate on a semi-annual basis the implementation of plans and related monitoring and evaluation reports, review and evaluate an annual project progress assessment report during the meeting to be held in the first quarter of the following year, and provide recommendations on remedial actions to Project Executing Agency, PMO and PIUs, if required, and oversee implementation of such recommendations; and

• If implementation of recommendations is considered as not satisfactory, advise the Project Executing Agency to impose disciplinary measures on responsible staff.

B. Executing entity/Implementing Entity

245. The Municipalitв of Ulaanbaatar (MUB) is the Eбecuting Entitв or Eбecuting Agencв (EA) and the Implementing Entitв or Implementing Agencв (IA) аhere the Project Management Office (PMO) is located. The MUB аill be responsible for identifвing, prioritiгing, formulating, appraising, approving, and implementing subprojects in accordance аith technical, financial, and economic appraisal criteria, including social and environmental criteria, agreed аith the ADB. It аill be tasked аith:

• Overall responsibility for program oversight and administration

• Setting up multimodal coordination committee and follow up the action plan

• Overseeing implementation of project sector reform

• Submitting progress reports to the steering committee for decision making purposes

• Preparing the redevelopment sites components/eco-district

• Accountability and responsibility for the proper use of funds in the ADB loans and GCF grants advance accounts

• Endorsing withdrawal applications

• Ensuring compliance with project covenants

107

• Holding quarterly meetings with the program management office

• Monitoring cooperation among related official development assistance (ODA)-funded projects

C. The PMO and PIU for public investment

246. The MUB PMO аill be established under the Governor of the Ulaanbaatar Capital Citв. The MUB PMO аill be responsible for the overall implementation of the project, including the private sector components managed bв the DBM PIU. The DBM PIU аill directlв report to the MUB PMO regarding project implementation. The MUB PMO аill:

• Perform day-to-day management work during the project preparation, implementation and supervision periods

• Coordinate with all involved parties and government agencies for the project implementation

• Communicate and coordinate with ADB for project management and implementation

• Report project implementation progress and compliance monitoring to ADB

• Engage project management consulting services

• Engage external monitor

• On behalf of the implementation agencies and their PIUs, review and submit bidding documents, bid evaluation reports, and other necessary documentations to ADB for necessary approval

• Submit withdrawal applications to the Ministry of Finance

• Submit required annual audit reports and financial statements of project account to ADB

• Responsible for the sub components Identification and selection

• Responsible for community engagement, land valuation and land and asset swapping process

• Responsible for the detail architectural and infrastructure design

• Carry-out the procurement for infrastructure, social housing, public space

• Undertake the construction supervision

• Undertake the performance audit of the buildings

• Manage the Green Building Fund

D. NOSK

247. The NOSK аill be the main counterpart MUB organiгation to support and cooperate аith the PMO, PIU and private sector on social housing and operation and maintenance. NOSK аill be responsible for the social housing and management and operation of the homeoаners association (HOA). The NOSK аill:

• Device appropriate mechanisms to integrate the social and affordable housing units in the AHURP development in cooperation аith the private sector

108

• Device long term rental programs for social and affordable housing, including for the poor and vulnerable households

• Device rent-to-oаn program for social and affordable housing, and if necessarв, including for the poor and vulnerable households

• Maintain and operate the social and affordable housing units

• Operation and management of the HOA of the entire housing units developed аithin AHURP

• Prepare medium term strategв and action plan (5-8 вears) to transfer the operation and management of the HOA the homeoаners and private sector.

E. Khoroo Administration

248. Khoroo administration, including the kheseg leaders, is the focal point for the communication and engagement of the land oаners and non-land oаners in the project area. Khoroos аill support the MUB PMO, NOSK and project implementation consultants to collect the primarв and secondarв data on the project area and households and engage the households in the AHURP. Khoroo administration аill:

• Provide primarв and secondarв socio-economic data on the project area and its residents

• Support to identifв, communicate аith and engage аith the project area residents

• Provide office space for the HOA

• Support NOSK to operate and manage HOA

• Support PMO and project implementation consultants to maintain continuous and meaningful communication and consultation аith the project area residents.

F. The Development Bank of Mongolia and PIU for Private Investments and Green

Banking

249. A Project Implementation Unit (PIU) аill be located at the Development Bank of Mongolia under its Asset Management Companв to manage the EDAF (Eco-district Development and Green Affordable Housing Fund). More specificallв it аill:

• Develop, and secure approval from the Project Steering Committee for, the guidelines, criteria, and procedures to be followed by participating commercial banks in accessing, and using loan proceeds from, the EDAF

• Conduct briefings for commercial banks, developers and the targeted household beneficiaries on the project and EDAF’s policies and procedures

• In coordination with the MUB PMO, conduct preliminary due diligence of real estate developers for the project

• Undertake due diligence of commercial banks borrowing from the EDAF, and recommend approval by MOF/PSC of their proposed EDAF loans

• Manage EDAF’s on-lending activities to qualified commercial banks in accordance with the project approved guidelines, criteria and procedures

• Manage the Advance Account for the GCF Concessional Lending

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• Monitor the utilization of EDAF loans for developer and mortgage financing and prepare the necessary periodic progress reports for submission to MUB and the MOF

• Prepare financial management reports on the EDAF and other reports required by MOF and the project

• Facilitate the preparation and timely submission of EDAF audit reports

• Under the project, prepare and implement a strategic plan for sector capacity development and institutional strengthening in green banking for climate resilient housing

G. Project Implementation Consultants

250. Program management and implementation support to PMO for project implementation and technical audit, overall project implementation coordination and management, financial management, institutional strengthening and reporting, capacitв building support, PPMS, monitoring and evaluation and sector road map implementation, procurement, communitв participation action plan, land and asset sаapping agreement, housing arrangement agreement, and communitв based activities during implementation, and other activities as appropriate.

251. More specific to the implementation of the VLSP, the consultants аill (i) provide on-the-job and formal training to PMO staff on social, gender, land and asset sаapping, and communitв participation aspects of project; (ii) prepare or finaliгe the VLSP after detailed design; (iii) monitor and ensure the effective implementation of the VLSP; (iv) act as resource persons for training and development activities; and (v) prepare progress reports; and (vi) assist the PMO in the engagement of an eбternal monitor for the VLSP.

252. The budget for program management and implementation support is estimated at $4.7 million. It includes $1.5 million dedicated to the implementation of the VLSP and CPAP, that is 25 person-months international and 187 person-months national consultant.

253. Eco-District Feasibility, Development and Policy Reforms support for feasibilitв studies, road map development and implementation, policв dialogue and sector reform for green building, reneаable energв, green affordable housing policies, and green urban planning, skills development, vocational training, livelihood improvement activities, urban farming, aаareness programs and green economв.

254. More specificallв to the implementation of the VLSP, the consultants аill provide and facilitate training for poor and vulnerable households to have access to O&M jobs in the co-district or job in the businesses of the eco-district, provide construction related training to participate to civil аorks under communitв procurement packages, provide training and capacitв building for urban farming, and vegetable groаing and marketing.

255. The budget for program management and implementation support is estimated at $3 million. It includes $450,000 dedicated to the implementation of the VLSP and CPAP, that is 7.5 person-months international and 56 person-months national consultant.

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Chart 7. Project Implementation Arrangements

EXECUTIVE AGENCY Municipality of Ulaanbaatar

IMPLEMENTING AGENCY Under the Governor of Ulaanbaatar

IMPLEMENTING AGENCY Development Bank of Mongolia

Project Implementation Unit Asset Management Company

Eco-district and Affordable Housing Fund (EDAF)

Day to day Implementation

Site/eco-district Identification

Community Engagement

Detailed Design

Safeguard and Due Diligence

Procurement for (Infrastructure, Social Housing, Public Space)

Supervision

▪ Establish and Manage EDAF ▪ Formulate and Secure Approval

of EDAF Relending and Onlending Guidelines

▪ Financial Selection of Private Developers and Partner Banks

▪ Financial Management and Performance Monitoring and Reporting

▪ Green Banking Capacity Development

▪

Legend: Supervise

Report to

Project Management Office

Provide

Inputs on

financial

criteria of

URU

Technical Selection for Real Estate Developer

Financial Selection for Real Estate Developer

Develop

Financial

Proposal for

Eco-district

Funding

STEERING COMMITEE

MOF, MUB, MET, DBM, MCUD

111

XIV. BUDGET AND FINANCING

256. During detailed design and implementation about $1.5 million аill be dedicated to communitв engagement, land and asset sаap estimation, and monitoring from ADB COL under the project management and implementation support consulting services. External Monitoring budget for the implementation of the VLSP is estimated at $200,000 and will be financed by ADB COL under PMO support. $900,000 from green climate fund grant аill be dedicated for green economв and business opportunitв development under Eco-District Feasibility, Development and Policy Reforms support consulting services. This budget will include $300,000 to finance various training and capacitв building program for livelihood improvement.

Table 75. Summary budget table Communitв engagement, land sаap estimation, and land sаap monitoring

$1,500,000 ADB COL under the project management and implementation support consulting services

Eбternal monitoring of the VLSP and involuntarв resettlement, (under the Resettlement Frameаork)

$ 200,000 ADB COL under PMO support

Green economв and business opportunitв development ($600,000) and provision of training and capacitв building program for livelihood improvement ($300,000)

$ 900,000 Eco-District Feasibility, Development and Policy Reforms support consulting services

257. Costs related to all voluntarв resettlement are taken in charge bв the private developers bв providing apartment, etc. to land oаners and non-land oаners according to the land sаapping agreements and housing arrangements. Theв are integrated into the financial feasibilitв model. 3. Аhen there is involuntarв resettlement (related to public infrastructures for instance) outside the Project’s perimeter (i.e., outside the Project’s redevelopment area аhere basic infrastructures such as аidening or construction of roads or installation of or connection to аater pipelines maв be necessarв), the associated land acquisition and resettlement costs аill be taken in charge bв the MUB according to the Resettlement Frameаork prepared for the Project. No such case has been identified in the core subproject.

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XV. IMPLEMENTATION SCHEDULE

258. The project is eбpected to commence in 2018 and аill be divided into 5 phases. The core subproject (Phase 1) is eбpected to be completed in 2024.

Table 76. Summary Implementation Schedule

Implementation period September 2018–December 2026 Phase 1 January 2019–Septembre 2024 Phase 2&3 July 2019–Septembre 2025 Phase 4&5 July 2020–Septembre 2026 Estimated completion date

31 December 2026

Estimated loan closing date

30 June 2027

259. Detailed implementation activities and indicative schedule are provided in the table beloа.

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Table 77. Implementation Schedule

Activities

2018 2019 2020 2021 2022 2023 2024 2025 2026

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Output 1: Resilient urban infrastructure, public facilities, social housing units in ger areas constructed (public sector component) Output 2: Low carbon, affordable housing, and market rate housing units and economic facilities in ger areas constructed (financial intermediation component)

Phase 1 (10 hectares, 2 core subprojects) Output 1 1.1a Carry out consultation and

participation plan (planning to implementation)

1.1b Complete infrastructure and architectural detailed design

1.1c Update and finalize the agreed Voluntary Land Swapping Plan (VLSP)

1.1d Submit the updated VLSP to ADB for review and concurrence

1.1e Implement updated VLSP (land swapping)

1.1f Procure goods and works for infrastructure, public space, social facilities and social housing

1.1g Advance work for transition units

1.1h Construct, commission, and operate infrastructure and facilities

Output 2 2.1a Shortlist the commercial banks

2.1b Select developers and approval of sub-loan for commercial bank

2.1c Construction of affordable housing and market rate housing units, and commercial areas

2.1d Selling of housing units and approval of sub-loan mortgages

Phases 2 and 3 (40 hectares, 8 subprojects) Output 1

1.2a Carry out consultation and participation plan (planning to implementation)

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Activities

2018 2019 2020 2021 2022 2023 2024 2025 2026


1.2b Identify and formulate eco-district feasibility studies

1.2c Prepare the VLSP

1.2d Submit the VLSP to ADB for review and concurrence

1.2e Complete infrastructure and architectural detailed design

1.2f Update and finalize the VLSP

1.2g Submit the updated VLSP to ADB for review and concurrence

1.2h Implement updated VLSP (land swapping)

1.2i Procure goods and works for infrastructure, public space, social facilities and social housing

1.2j Advance work for transition units

1.2k Construct, commission, and operate infrastructure and facilities


2.2b Select the developers and approval of sub-loan for commercial bank



Phases 4 and 5 (50 hectares, 10 subprojects) Output 1

1.3a Carry out consultation and participation plan (planning to implementation)

1.3b Identify and formulate eco-district feasibility studies

1.3c Prepare the VLSP

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Activities

2018 2019 2020 2021 2022 2023 2024 2025 2026


1.3d Submit the VLSP to ADB for review and concurrence

1.3e Complete infrastructure and architectural detailed design

1.3f Update and finalize the VLSP

1.3g Submit the updated VLSP to ADB for review and concurrence

1.3h Implement updated VLSP (land swapping)

1.3i Procure goods and works for infrastructure, public space, social facilities and social housing

1.3j Advance work for transition units

1.3k Construct, commission, and operate infrastructure and facilities


2.3b Select the developers and approval of sub-loan for commercial bank



Output 3: Environment and sector policy reforms implemented, and capacity strengthened 3.1 Project implementation and management

3.1a Recruit and train project management office staff

3.1b Hire Project implementation and management support consulting services

3.1c Train and increase capacity of project management office staff and targeted institutions

3.1d Recruit external monitoring 3.1e Complete the VLSP for each phase

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Activities

2018 2019 2020 2021 2022 2023 2024 2025 2026


3.1f Supervise and monitor VLSP activities (preparation, updating, implementation)

3.1g External Monitoring semi-annual monitoring and report

3.2 Eco-district feasibility, development and policy reforms 3.2a Hire eco-district feasibility,

development, and policy reform consulting services

3.2b Implement eco-district planning, green building standard, social and affordable housing, and development guidelines and regulations

3.2c Complete feasibility study for the five phases of implementation

3.2d Implement policy and sector reforms related to climate change adaptation and mitigation, improved supply and access to green social and affordable housing

3.2e Implement VLSP livelihood program 3.3 Detailed design and supervision 3.3a Hire detailed design and

supervision consulting services

3.3b Complete detailed design and final land swapping agreement for each phase: phase 1 (2020), phases 2 and 3 (2021), and phases 4 and 5 (2022)

3.3c Supervise construction for each phase: Phase 1 (2024), phases 2 and 3 (2025), and phases 4 and 5 (2026)

3.4 Sustainable green finance

3.4a Hire sustainable green finance consulting services

3.4b Develop standard, guidelines, and regulations for the use of the eco-district and affordable housing fund

3.4c Implement policy and sector reforms related to green finance

Source: Asian Development Bank.

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XVI. MONITORING AND EVALUATION

260. The PMO аill conduct internal monitoring of Voluntarв Land Sаapping implementation and submit quarterlв reports to MUB and ADB. These reports аill focus on the progress of implementation, report on outstanding issues and resolutions. The Project mid-term revieа аill include a separate section on the progress of Voluntarв Land Sаapping implementation. Internal monitoring reports аill also be included in the completion audit that аill be conducted upon completion of the Voluntarв Land Sаapping. The PMO аill prepare this completion report for submission to the ADB.

261. The objectives of internal monitoring is to ensure: (i) proper and timelв eбecution of the responsibilities of keв stakeholders; (ii) participation of project beneficiaries in internal monitoring; (iii) protection of the rights of project beneficiaries and the agreement betаeen the parties; (iv) adequate and prompt provision of land and asset sаapping arrangements and other support; and (v) timelв grievance redress.

262. In addition, the Audit Department of the MUB аill independentlв audit and monitor the agencies involved in the Voluntarв Land Sаapping process, based on Laа of Mongolia on State Audit. The PMO аill periodicallв revieа audits, and report anв irregularities to the ADB, to alloа for the earlв identification and resolution of problems encountered.

263. The folloаing are some of the internal monitoring keв indicators:

• Number of project beneficiaries • Information sessions and other consultation activities conducted with project

beneficiaries • Status of voluntary land and asset swapping agreements and housing

arrangement agreements and their implementation • Status of livelihood support activities and impact of these activities on project

beneficiaries • Provision of housing units • Provision of housing units and/or other support to the poor and vulnerable

households • Status and monitoring of financing instruments (self financing, banks, etc)

accessed by beneficiaries, especially the poor and vulnerable households • Number of and length of time taken to resolve grievances.

264. Eбternal monitoring and evaluation аill be conducted to verifв and carrв out its oаn monitoring and eб-post evaluation of Voluntarв Land Sаapping in the Project as a аhole to: (i) assess the effectiveness, impact and sustainabilitв of land sаapping arrangements; (ii) determine аhether impacts аere avoided, if not, minimiгed during the transitional period, and if the standard of living of the beneficiaries, especiallв the poor and other vulnerable households have improved; and (iii) learn strategic lessons for future policв formulation and planning for voluntarв land sаapping. For this project the MUB and PMO аill be responsible for engaging an eбternal monitor (EM), аhich аill validate the process and procedures set out in the VLSP, specificallв the validation of the negotiation process, assess and evaluate the VLSP implementation and regularlв report to the project Steering Committee and ADB.

118

265. Eбternal monitoring аill be carried out semi-annuallв during the implementation of Voluntarв Land Sаapping and its results аill be reported to the PMO/MUB and ADB in semi-annual reports at the end of each input. The specialists of the PMO аill revieа and discuss the eбternal monitoring design аith the EM. The eбternal monitoring process аill include the folloаing: (i) revieа and verification of the internal monitoring reports of the PMO; (ii) identification and selection of impact indicators; (iii) impact assessment through quantitative and qualitative surveвs; (iv) consultation аith stakeholders; (v) assessment of compliance аith related laаs, contractual agreements; (vi) recommendation of voluntarв land sаapping process modification and adaptation measures; (vi) lessons learned for future voluntarв land sаapping policв formulation and planning. All data collection and analвsis аill be disaggregated bв gender, as applicable.

266. The folloаing are some of the eбternal monitoring keв indicators:

• Economic status of project beneficiaries, including employment, income and household assets.

• Status of vulnerable households, in terms of food security, household demographics, livelihoods and health.

• Impact of voluntary land swapping on women, children, elderly, the poor and other vulnerable groups.

• Degree of support for and post voluntary land swapping status of project beneficiaries, especially the poor and vulnerable households.

• Perceptions of project beneficiaries regarding the implementation of the voluntary land swapping process.

• Participation and involvement of project beneficiaries in Voluntary Land Swapping implementation.

• Effectiveness and fairness of valuation, land swapping options and housing agreement arrangements.

• Implementation and effectiveness of income/livelihood support. • Effectiveness and fairness of GRMs. • Level of satisfaction among project beneficiaries in the post-land swapping

period. • Adequacy of voluntary land swapping funds and results of financial audits.

267. The EM аill carrв out post-implementation evaluation on the basis of the socio-economic baseline surveвs 1 and 2 вears after the completion of voluntarв land sаapping activities, to ascertain аhether the project аas able to satisfactorilв implement the VLSP. If the objectives have not been achieved, the EM аill recommend remedial measures. The EM for Voluntarв Land Sаapping аill be implemented bв the same monitoring entitв that аill carrв out monitoring and evaluation of Involuntarв Resettlement (IR) activities, in case that there аill be anв IR аithin AHURP.

ATTACHMENT 1 - LAND AND ASSETS VALUATION METHODOLOGY

A. Methodology

1. TСО Яast ЦaУШrТtв ШП rОМОЧt GОr НТstrТМt rОНОЯОХШpЦОЧt prШУОМts СaЯО ПaТХОН Шr СaЯО bООЧ НОХaвОН НuО tШ аСat аas МШЧsТНОrОН uЧПaТr ХaЧН ЯaХuatТШЧ ЦОМСaЧТsЦs. As part ШП tСОsО prШУОМts, a ЧuЦbОr ШП ЯaХuatТШЧ ЦОtСШНs СaЯО bООЧ prШpШsОН aЧН usОН ШЯОr tСО past ПОа вОars. TСО prОЯaТХТЧg ЦОtСШНШХШgТОs arО tСО ПШХХШаТЧgs:

• GОЧОralТsОН “pОr squarО mОtОr” valuО: this is a solution currently employed by the MUB

in involuntary resettlements as well as by a number of developers acting on behalf of MUB

authorities. It involves setting a per-square-meter price (based on an average comparable

values of land and improvements) which is then provided to land owners on a cash basis

according to cadastral footprint. This method is simple and straightforward to apply but

has been criticised since the compensations amounts are often insufficient to purchase a

new built property. This leads to displacement of communities (and by extension poverty),

a lack of intergenerational wealth creation and what can be perceived as an unfair

cШЦpОЧsatТШЧ as kСasСaa’s НТППОr grОatХв ТЧ tСО ЯaХuО ШП tСОТr ТЦprШЯОЦОЧts aЧН ХШМatТШЧ. • Land and improvements compensation: a better accepted solution is currently being

implemented by MUB projects and the private sector whereby both land and

improvements are assigned a per-square-meter value, both are then added up to provide

an estimated total khashaa value. This method falls closer to market principles and is more

fair since it takes into account investments made by landowners into improvements. There

are still considerable shortcomings to the method since a 100 sqms of a mud house with

wooden lattice work is far removed in value terms to one made out of bricks and vacuum

windows. It also does not differentiate between types of improvements; a shed, fence or

garage is compensated at the same per square meter amount and manner as a habitable

house with a closed loop heating system. Since values are generally higher, the method

has had greater success in convincing landowners and does lead to improved purchasing

power in new developments.

• Individual landlords negotiations: despite those methods, and faced with little

application of eminent domain, most valuations still currently come down to individual

negotiations between the private sector actors or the MUB and the khashaa owners.

Without their approval, it is near impossible to force a transaction (despite the recently

enacted urban redevelopment law, which is still relatively poorly defined and is yet to be

used in a court of law). Such negotiations are complex since there is a substantial volume

ШП kСasСaa’s аСШ’s purМСasО Цust bО ЧОgШtТatОН, ХaЧНХШrНs arО prШЧО tШ МСaЧgО tСОТr mind if they hear that neighbours have a slightly better deal. For many there is also high

emotional attachment to their land and to their way of life or community engagement,

which they fear, losing, impacting without predictability their own price elasticity.

A-2

B. Risks of distorting the market

2. TСО МШЦpОЧsatТШЧ ХОЯОХs prШpШsОН (ТЧ MNT) аТХХ bО МШЧsТНОrabХв СТgСОr tСaЧ tСО ПaТr ЦarkОt ЯaХuО ШП tСО saЦО kСasСaas (bОtаООЧ 50 aЧН 150% СТgСОr НОpОЧНТЧg ШЧ tСО kСasСaa’s). TСТs Тs aМkЧШаХОНgОН aЧН Тs aЧ ОssОЧtТaХ МШЦpШЧОЧt ШП tСО ПОasТbТХТtв ШП tСО prШУОМt ТЧ ШrНОr tШ ЦaбТЦТгО tСО МШЦpОЧsatТШЧ tСat МaЧ bО gТЯОЧ tШ ХaЧН, busТЧОss aЧН assОt ШаЧОrs. IП аО НШ ЧШt ЦaбТЦТгО МШЦpОЧsatТШЧs tШ suМС a ХОЯОХ, tСО prТЯatО sОМtШr (аСШ bОЧОПТts ПrШЦ МШЧsТНОrabХО subsТНТОs) аТХХ ЦakО abЧШrЦaХ ХОЯОХs ШП prШПТt, tСО rОsТНОЧts аТХХ rОМОТЯО apartЦОЧt bОХШа ЦТЧТЦuЦ ХТЯabХО staЧНarНs aЧН tСО prШУОМt Тs uЧХТkОХв tШ rОМОТЯО aЧв ПШrЦ ШП suppШrt ПrШЦ tСО МШЦЦuЧТtв.

3. АСТХО tСО МШЦpОЧsatТШЧ ХОЯОХs ТЧ ЦШЧОtarв tОrЦs arО МШЧsТНОrabХв СТgСОr tСaЧ ЦarkОt ЯaХuОs ПШr ХaЧН traНОН ШЧ aЧ ТЧНТЯТНuaХ basТs ШЧ tСО ШpОЧ ЦarkОt, tСОв arО bОХШа аСat ШtСОr НОЯОХШpОrs СaЯО ШППОrОН (ОЯОЧ ТП ЧШt ЦarkОНХв sШ). TСО ЦarkОts arО tСus ЧШt bОТЧg НТstШrtОН sТЧМО tСОrО arО ТЧ ОППОМt tаШ paraХХОХ ЦarkОts аСТМС ШpОratО ТЧНОpОЧНОЧtХв ПrШЦ ОaМС ШtСОr. TСТs Тs uЧНОrstШШН bв tСО МШЦЦuЧТtТОs aЧН МausОs ЧШ ЯТsТbХО ЦarkОt НТstШrtТШЧs.

C. In-kind and not cash

The AHURP makes a very conscious decision to limit cash disbursements as a form of

compensation to the extent possible for a number of reasons. 1) it limits the financial viability of

the developer since an up-front cash payment would remove essential capital from the project

finances which therefore raises the need for the developer to borrow and thus pay a greater

amount of interest. 2) with cash disbursements it is likely that the community would dissipate and

be broken up moving wherever market opportunities take them, thus going against a key principle

of the project of not displacing the local residents. 3) Cash payments rarely lead to inter-

generational wealth creation while property transfers allow for more sustainable wealth generation

and retention amongst the community.

D. Limited scope for larger compensations amounts

4. ӨШЦparТsШЧ ШП МШЦpОЧsatТШЧ ХОЯОХs аТtС statО spШЧsШrОН prШУОМts ТЧ tСО gОr НТstrТМts suМС as tСШsО МarrТОН Шut bв GAIA (Об GAөA+GAHP) aЧН TOSK arО ТЧaММuratО sТЧМО tСО urbaЧ НОsТgЧ ШП tСО prШУОМt Тs ЦarkОНХв НТППОrОЧt aЧН ХОaЯОs ХОss rШШЦ ПШr МШЦpОЧsatТШЧ aХХШаaЧМОs. TСО AHURP urbaЧ НОsТgЧ Тs basОН ШЧ rОХatТЯОХв ХШа ТЧtОЧsТtв ХaЧН usagО аТtС ХШа rТsО buТХНТЧgs, ШП аСТМС a ЦaУШrТtв arО НОНТМatОН tШ ЧШЧ-prШПТt ЦakТЧg СШusТЧg. TСО ЦargТЧs ПШr НОЯОХШpОrs СaЯО bООЧ МappОН tШ 20% aЧН tСОв bОar tСО rТsk ШП sОХХТЧg ЦarkОt ratО СШusТЧg ТЧ tСО ЦТНst ШП a НОprОssОН ЦarkОt sТtuatТШЧ. It Цust aХsШ bО takОЧ ТЧtШ МШЧsТНОratТШЧ tСat a ЦaУШrТtв ШП prТЯatО sОМtШr ХОН gОr НТstrТМt urbaЧ rОНОЯОХШpЦОЧt prШУОМts ТЧ tСО past 5 вОars СaЯО ПaТХОН as НОЯОХШpОrs ПШuЧН tСat tСО МШЦpОЧsatТШЧ ХОЯОХs аОrО uЧsustaТЧabХв СТgС aЧН МШuХН ЧШt МШЦpХОtО tСО НОЯОХШpЦОЧts as prШЦТsОН. АСОЧ МШЧsТНОrТЧg tСО ТЦpaМt ШП tСО ЯaХuatТШЧ, Тt Тs ТЦpШrtaЧt tШ kООp ТЧ pОrspОМtТЯО tСО ЦuХtТpХО ХaвОrs ШП ХaЧН ЯaХuО МapturО aЧН МapТtaХ grШаtС аСТМС arО buТХt ТЧtШ tСО sвstОЦ tШ ТЧsurО tСat rОsТНОЧts bОЧОПТt tШ tСО ПuХХ ОбtОЧt pШssТbХО. IЧ sСШrt, tСШsО ОХОЦОЧts МaЧ bО suЦЦarТгОН as ПШХХШаs.

5. PrОmТum ШЧ laЧН valuО - АСТХО МШЦparabХО ХaЧН ЯaХuОs arО usОН, tСОв arО basОН ШЧ tСО traЧsaМtТШЧ ШП ПuХХ kСasСaa ТЧМХuНТЧg aХХ Тts assОts aЧН pШtОЧtТaХ busТЧОss ЯaХuОs, tСОв НШ ЧШt rОprОsОЧt tСО purО МШst ШП ХaЧН aХШЧО. TСТs rОsuХts ШЧ a МШst ШП ХaЧН tСat Тs substaЧtТaХХв СТgСОr

A-3

tСaЧ ТП tСО ЯaХuО ШП assОts arО rОЦШЯОН. АСТХО tСТs ХОaНs tШ НШubХО МШuЧtТЧg ШП tСО assОts ТЧ a МОrtaТЧ ЦaЧЧОr, Тt Тs a staЧНarН tСat Тs usОН aМrШss UХaaЧbaatar gОr НТstrТМt rОНОЯОХШpЦОЧt prШУОМts aЧН Сas tСus bООЧ aНШptОН аТtСТЧ AHURP. It aХsШ Сas tСО aННОН bОЧОПТt tСat rОsТНОЧts МaЧ Нraа НТrОМt МШЦparТsШЧs tШ ЦarkОt ЯaХuО prТМОs tСОв СaЯО ОбpОrТОЧМОН ПТrst-СaЧН ТЧ tСОТr МШЦЦuЧТtТОs.

6. PrОmТum ШЧ rОplaМОmОЧt МШst (ЧШ НОprОМТatТШЧ) - TСТs аas a kОв pШТЧt ШП НТsМussТШЧ аТtСТЧ tСО AHURP tОaЦ sТЧМО Тt МaЧ bО МШЧsТНОrОН uЧПaТr tСat aЧ ТЧНТЯТНuaХ аСШ Сas Уust buТХt СТs СШusО but аСТМС Сas НОrТЯОН ХТttХО ОМШЧШЦТМ utТХТtв ПrШЦ Тt аШuХН bО МШЦpОЧsatОН tШ tСО saЦО tuЧО tСaЧ a ЧОТgСbШr аСШ Сas buТХt tСО saЦО prШpОrtв ШЯОr a НОМaНО agШ aЧН Сas НОrТЯОН ОМШЧШЦТМ bОЧОПТts ПrШЦ tСО prШpОrtв (tСrШugС rОЧt, busТЧОss ШpОratТШЧs Шr usО) ШЯОr tСat ОЧtТrО pОrТШН aЧН аШuХН tСus СaЯО aЦШrtТгОН tСО ТЧТtТaХ МapТtaХ ТЧЯОstЦОЧt ПuХХв Шr partТaХХв. АСТХО tСО ХaМk ШП НОprОМТatТШЧ ШЯОr tСО rОpХaМОЦОЧt МШst ШП tСО prШpОrtв brОaks ПrШЦ IЧtОrЧatТШЧaХ VaХuatТШЧ StaЧНarНs aЧН Тs sООЧ as uЧПaТr bв ЦОЦbОrs ШП tСО tОaЦ, Тt Тs МШЧsТНОrabХв sТЦpХОr tШ МaХМuХatО aЧН ПШХХШаs SШМТaХ SaПОtв GuТНОХТЧОs ШП tСО AөB. TСТs ПurtСОr rОНuМОs tСО rТsk ПШr НТsputОs aЧН prШЯТНОs aННТtТШЧaХ МapТtaХ gaТЧs tШ ХaЧН ШаЧОrs.

7. AbТlТtв tШ sОll mШvОablО prШpОrtв - TСО AHURP НШОs ЧШt МШЦpОЧsatО ПШr ЦШЯОabХО prШpОrtв sТЧМО Тt Тs МШЧsТНОrОН tСat tСОв arО СТgСХв ХТquТН aЧН МaЧ gОЧОratО aННТtТШЧaХ МapТtaХ ПШr tСО ШаЧОrs. TСОв arО ТЧ aЧв МasО ЧШt НОstrШвОН Шr tСОТr ЯaХuО Тs ЧШt rОЧНОrОН ЯШТН (as Тs tСО МasО ПШr ТЦЦШЯОabХО prШpОrtв). TСО saХОs rОЯОЧuО НОrТЯОН ПrШЦ suМС saХОs аШuХН uЧabХО tСО ШаЧОrs tШ purМСasО aННТtТШЧaХ squarО ЦОtОrs ТЧ tСО aППШrНabХО СШusТЧg sОgЦОЧts ШП tСО НОЯОХШpЦОЧt.

8. AННТtТШЧal МШmpОЧsatТШЧ fШr busТЧОssОs - IЧ aММШrНaЧМО аТtС AөB guТНОХТЧОs ШЧ ТЧЯШХuЧtarв rОsОttХОЦОЧt, tСО ТЦpaМt ШЧ busТЧОssОs arО МШЦpОЧsatОН ОТtСОr tСrШugС a вОar’s taбabХО ТЧМШЦО Шr tСrШugС 12 ЦШЧtСs ШП ЦТЧТЦaХ аagО (245,000 MNT / ЦШЧtС). It Тs uЧНОrstШШН tСat tСО aМtuaХ tТЦО pОrТШН ПШr аСТМС tСО busТЧОss аТХХ ЧШt bО abХО tШ ШpОratО аТХХ bО ЦТЧТЦaХ aЧН ТЧ ЦШst МasОs Тs uЧХТkОХв tШ bО ЦШrО tСaЧ 3 ЦШЧtСs. BusТЧОssОs arО tСus bОТЧg МШЦpОЧsatОН ПШr a МШЧsТНОrabХв ХШЧgОr pОrТШН tСaЧ Тs tОМСЧТМaХХв аarraЧtОН. AННТtТШЧaХХв, tСОrО аТХХ bО a tаШ-вОar gap bОtаООЧ tСО МurrОЧt ОstТЦatОs ШП ЯaХuО аСТМС arО ОбpХaТЧОН ТЧ НОtaТХ tШ tСО МШЦЦuЧТtв aЧН tСО ПТЧaХ ЯaХuatТШЧs (ОбpОМtОН ТЧ ЦТН 2019) aХХШаТЧg aЦpХО tТЦО ПШr ОбТstТЧg busТЧОssОs tШ rОgТstОr aЧН ЦaбТЦТгО tСОТr ТЧМШЦО, tСus rОМОТЯТЧg a pШtОЧtТaХХв ЦuМС СТgСОr ЯaХuatТШЧ.

9. AbТlТtв tШ buв aННТtТШЧal squarО mОtОrs - AХХ МurrОЧt МШЦЦuЧТtв rОsТНОЧts аТХХ bО gТЯОЧ tСО ШppШrtuЧТtв tШ purМСasО a ХТЦТtОН ЧuЦbОr ШП aННТtТШЧaХ squarО ЦОtОrs ТЧ tСО НОЯОХШpЦОЧt (rОsТНОЧtТaХ, rОtaТХ, аШrksСШps, garagОs, ШППТМОs) at rОНuМОН aППШrНabХО СШusТЧg prТМОs (450USө / sqЦ з 1.1MТХХТШЧ MNT). TСТs prТМО Тs substaЧtТaХХв bОХШа ЦarkОt prТМОs (з ү50 USө / sqЦ) aЧН аТХХ tСus aППШrН rОsТНОЧts аТtС МШЧsТНОrabХО pШtОЧtТaХ МapТtaХ grШаtС ТЧ tСО ПuturО assuЦТЧg ЦarkОts rОЦaТЧ stabХО Шr apprОМТatО. RОstrТМtТЯО МШЯОЧaЧts аТХХ bО put ТЧ pХaМО tШ НТsТЧМОЧtТЯО sСШrt-tОrЦ spОМuХatТШЧ aЧН rОНuМО tСО arbТtragО ШppШrtuЧТtв tСat аТХХ ОбТst ТЧ tСО prТМТЧg bОtаООЧ aППШrНabХО aЧН ЦarkОt СШusТЧg.

10. MТЧТmal sТгО Шf apartmОЧt fШr all plШt ШаЧОrs - It Тs МurrОЧtХв ОбpОМtОН tСat tСО AHURP аТХХ bО abХО tШ guaraЧtОО tСat aХХ kСasСaa ШаЧОrs (tСО aggrОgatО kСasСaa ТЧМХuНТЧg ХaЧН, assОts aЧН busТЧОss) аТХХ rОМОТЯО a ЦТЧТЦuЦ ШП 35 sqЦs ШП apartЦОЧt. TСОrО arО rОХatТЯОХв ПОа kСasСaa ТЧ tСО tаШ МШrО МШЦpШЧОЧts tСat ПaХХ bОХШа tСat ЦТЧТЦaХ aЦШuЧt (9 ТЧ BaвaЧkСШsСuu East aЧН 15

A-4

ТЧ SОХbО АОst) aЧН tСОв rОprОsОЧt ТЧ tШtaХ 240,645,911 MNT ШП a НОХta bОtаООЧ tСОТr МШЦpОЧsatТШЧ aЧН tСО ЦТЧТЦaХ sТгО ШП apartЦОЧt. TСТs МaЧ bО absШrbОН bв tСО prТЯatО sОМtШr. TСОrО Тs sШЦО ПОar tСat tСТs Цaв ХОaН tШ rОsОЧtЦОЧt aЦШЧgst tСО МШЦЦuЧТtв tСat sШЦОШЧО аСШ Тs МШЧsТНОrabХв pШШrОr rОМОТЯОs a sТЦТХar ЧuЦbОr ШП squarО ЦОtОrs as sШЦОШЧО аСШ Тs Уust abШЯО tСat 35sqЦs barrТОr but tСТs Сas ЧШt вОt ЦaЧТПОstОН ТtsОХП as aЧ ТssuО ТЧ МШЦЦuЧТtв ЦООtТЧgs. It Тs МХОar tСat ПШr tСШsО аСШ аТХХ bОЧОПТt ПrШЦ tСТs ЦТЧТЦaХ sТгО guaraЧtОО, tСО МapТtaХ grШаtС tСОв аТХХ ОбpОrТОЧМО аТХХ prШbabХв bО ЦШrО substaЧtТaХ tСaЧ ПШr ШtСОrs.

11. AММОss tШ СОavТlв subsТНТгОН mШrtgagОs fШr aННТtТШЧal prШpОrtв purМСasО - It Тs ОбpОМtОН tСat aХХ rОsТНОЧts ШП tСО ТЦpaМtОН гШЧОs аТХХ bО ОХТgТbХО tШ rОМОТЯО subsТНТгОН ЦШrtgagОs at a ratО ШП ү% ШЧ tСО AППШrНabХО HШusТЧg uЧТts aЧН 10 tШ 12% ШЧ tСО ЦarkОt uЧТts. TСТs аТХХ ОssОЧtТaХХв aХХШа МurrОЧt rОsТНОЧts tШ aММОss subsТНТгОН ЦШrtgagОs tШ purМСasО subsТНТгОН СШusТЧg uЧТts, ХОaНТЧg tШ МШЧsТНОrabХО МapТtaХ grШаtС ПШr rОsТНОЧts.

12. CapТtal valuОs Шf tСО prШpОrtв - As tСО sub-МОЧtОr НОЯОХШps bШtС ТЧ urbaЧ aЧН ОМШЧШЦТМ tОrЦs, Тt Тs ОбpОМtОН tСat tСО МapТtaХ ЯaХuО ШП tСО rОaХ ОstatО аТХХ apprОМТatО as НОЦaЧН ТЧtОЧsТПТОs aЧН suppХв bОМШЦОs МШЧstraТЧОН. TСТs аТХХ bО ПurtСОr suppШrtОН bв a gОЧОraХ uptТМk ТЧ tСО rОaХ ОstatО ЦarkОt tСrШugСШut UХaaЧbaatar as ЦТЧТЧg aМtТЯТtв aЧН Тts rОsuХtaЧt ПШrОТgЧ НТrОМt ТЧЯОstЦОЧt rОturЧ tШ tСО МШuЧtrв. IЦЦШЯОabХО prШpОrtв Тs МШЧsТНОrabХв ЦШrО ХТquТН aЧН ХОss rОstrТМtТЯО tСaЧ ХaЧН аТtСТЧ tСО MШЧgШХТaЧ rОguХatШrв sвstОЦ. BaЧks aЧН ПТЧaЧМТaХ ТЧstТtutТШЧs МШЧtТЧuО tШ ПaЯШr МШХХatОraХ pХОНgОs ШП ТЦЦШЯОabХО prШpОrtв ЯОrsus ХaЧН assОts, tСОrОПШrО ТЧМrОasТЧg tСО ХШaЧ tШ ЯaХuО ratТШs aЧН rОНuМТЧg tСО МШst ШП tСО ПТЧaЧМТЧg sТЧМО Тt Тs pОrМОТЯОН as ХОss rТskв bв tСО baЧk. TСТs аТХХ aХХШа МurrОЧt ХaЧН ШаЧОrs аСШ struggХО tШ uЧХШМk tСО ОquТtв ШП tСОТr ХaЧН tШ НШ sШ аСОЧ tСОв rОМОТЯО aЧ ТЦЦШЯОabХО prШpОrtв. TСТs СШЦО ОquТtв МapТtaХ МaЧ tСОЧ bО rОТЧЯОstОН ТЧtШ ШtСОr busТЧОss ЯОЧturОs Шr usОН tШ ЦakО ПurtСОr prШpОrtв ТЧЯОstЦОЧts ТЧ tСО saЦО НОЯОХШpЦОЧt.

13. AbТlТtв tШ gОЧОratО ТЧМШmО frШm tСО prШpОrtв - TСО rОsТНОЧts аТХХ СaЯО tСО pШtОЧtТaХ ШП ХОasТЧg tСОТr prШpОrtв tШ tСО ШpОЧ ЦarkОt ТЧ ШrНОr tШ gОЧОratО a rОguХar rОЧtaХ ТЧМШЦО. IП tСОв ОХОМtОН tШ sаap tСОТr kСasСaa ПШr a rОtaТХ Шr аШrksСШp prШpОrtв, tСОв МaЧ aХsШ ШpОratО busТЧОssОs аТtСТЧ tСОЦ aЧН tСus gОЧОratО ТЧМШЦО (aЧН ОЦpХШвЦОЧt).

E. Valuation process

14. FШr tСО МШrО МШЦpШЧОЧt, tСО prШМОss ПШr ХaЧН ЯaХuatТШЧ аas МarrТОН Шut ШЯОr JuЧО aЧН JuХв 201Ү ШЯОr tСО 4 МШrО sub-МШЦpШЧОЧts аСТМС aЦШuЧt tШ ШЯОr 450 kСasСaa. TСО ЦОtСШНШХШgв аas НТsМussОН aЧН apprШЯОН bв tСО AөB prШУОМt tОaЦ ШЯОr a pОrТШН ШП ЦШЧtСs ПrШЦ AprТХ tШ JuЧО 201Ү sШ tСat tСО ТЧТtТaХ ЯaХuatТШЧ prШМОss МШuХН bО ТЦpХОЦОЧtОН prТШr tШ tСО arrТЯaХ ШП tСО ЦaТЧ ЦТssТШЧ tОaЦ ТЧ ЦТН-JuЧО 201Ү. TСТs аas НШЧО ТЧ МШЧМОrt аТtС tСО tОaЦ ХОaНОr, tОaЦ МШЧsuХtaЧts, tСО AөB prШУОМt ШППТМОr aЧН tСО ЯarТШus AөB ШППТМОrs ТЧ МСargО ШП sШМТaХ saПОtв saПОguarНs, UN HabТtat aЧН a ЧuЦbОr ШП ЦuЧТМТpaХ agОЧМТОs. TСО ЯaХuatТШЧ prШМОss Сas ПШХХШаОН aЧ ТtОratТЯО prШМОss tСat sШugСt tШ rОНuМО Тts МШЦpХОбТtв аСТХО rОtaТЧТЧg as ЦaЧв ОХОЦОЧts ШП ОquТtabХО ЯaХuatТШЧ as pШssТbХО.

15. EstablТsС CШmparablО Data - It Тs ОssОЧtТaХ tШ ПТrst ОstabХТsС tСО bОЧМСЦark Нata tСat аТХХ bО usОН ТЧ МШЦpТХТЧg tСО ЯaХuatТШЧ ЦОtСШНШХШgв. IЧ tСО МasО ШП tСО AHURP, suМС МШЦparabХО Нata Тs ПШМusОН ШЧ ХaЧН saХОs МШЦparabХО traЧsaМtТШЧs aЧН ШЧ МШЧstruМtТШЧ МШsts ПШr НТППОrОЧt tвpОs ШП

A-5

ТЦprШЯОЦОЧts (СШusО, ПОЧМО, sСОНs ОtМ..). AХХ МШЦparabХО Нata sСШuХН bО sШurМОН аТtСТЧ tСО AHURP pТХШt arОas, bО ШП prШЯОЧ traЧsaМtТШЧs aЧН bО НatОН ЧШ ХШЧgОr tСaЧ 6 ЦШЧtСs prТШr tШ tСО ЯaХuatТШЧ НatО. SТЧМО tСОrО Тs a СТgС НОgrОО ШП ТЧaММuraМв ТЧ rОМШrНОН traЧsaМtТШЧs, ШЧХв tСШsО tСat ПaХХ аТtСТЧ a Ү5% staЧНarН НОЯТatТШЧ ПrШЦ tСО ЦОaЧ arО rОtaТЧОН.

16. Carrв Шut НОtaТlОН mappТЧg aЧН survОвs Шf tСО arОa tШ bО valuОН - TСО гШЧО tШ bО ЯaХuОН аТХХ ТЧТtТaХХв uЧНОrgШ a НrШЧО ЦappТЧg (аСТМС ТЧМХuНОs a 3ө ЦШНОХХТЧg) ОбОrМТsО sШ tСat aММuratО aЧН ТЧНОpОЧНОЧt ЦОasurОЦОЧts МaЧ bО takОЧ, aХХ struМturОs МХОarХв ТНОЧtТПТОН aЧН НТstaЧМОs tШ “prТЦarв pШТЧts” МaХМuХatОН. “PrТЦarв pШТЧts” arО kОв СШЧОвpШt ХШМatТШЧs аСТМС aНН ЯaХuО tШ ХaЧН НuО tШ tСОТr prШбТЦТtв. TСОв МaЧ bО аatОr kТШsks, ЦaТЧ traЧspШrt МШrrТНШrs, pubХТМ traЧspШrt stШps, rОtaТХ МХustОrs, ЦШЧastОrв Шr tОЦpХО, parks ОtМ... TСО ПurtСОr aаaв ПrШЦ tСО prТЦarв pШТЧts, tСО СТgСОr tСО ratО ШП НТsМШuЧt appХТОН (up tШ 25%) tШ tСО purО ХaЧН ЯaХuatТШЧ. TСТs ХaЧН ЯaХuatТШЧ aЦШuЧt аТХХ НТППОr bОtаООЧ ОaМС sub-bХШМk but аТХХ rОЦaТЧ ТНОЧtТМaХ аТtСТЧ tСО sub-bХШМk ТtsОХП sШ tСat aХХ sub-bХШМk kСasСaa’s rОМОТЯО tСО saЦО aЦШuЧt ШП МШЦpОЧsatТШЧ ПШr ХaЧН ТЧ aЧ ОППШrt tШ ЦТЧТЦТsО МШЦpХТМatТШЧs aЧН МШЧПХТМt. OЧМО aОrТaХ surЯОвs aЧН ЦappТЧgs arО МШЦpХОtОН, ШЧ tСО grШuЧН НШШr-tШ-НШШr surЯОвs arО МarrТОН Шut аТtС staЧНarН МХШsО-ОЧНОН quОstТШЧЧaТrОs tШ asМОrtaТЧ tСО tвpОs ШП assОts prОsОЧt ШЧ tСО ХaЧН, МШЧstruМtТШЧ ЦatОrТaХs usОН, tвpОs ШП busТЧОssОs, ЧuЦbОr ШП СШusОСШХНs aЧН tШtaХ rОsТНОЧts as аОХХ as aЧв uЧusuaХ ПОaturОs suМС as trООs, sМОptТМ taЧks ОtМ... EaМС ТЦprШЯОЦОЧt Тs ЦОasurОН ТЧНТЯТНuaХХв aЧН ОaМС kСasСaa Тs pСШtШgrapСОН ТЧ НОtaТХ ПШr ПuturО rОПОrОЧМО. TСТs stОp aХХШаs ПШr ЦТtТgatТЧg tСО ТssuО ШП ХaЧН squattТЧg, uЧrОgТstОrОН ХaЧНs aЧН МaНastraХ ЦappТЧg ПХaаs as аОХХ as prШЯТНО ЯОrТПТМatТШЧ ШП НrШЧО sТгТЧg ШП assОts.

17. ArrТvО at a МШmparablО salОs markОt valuО fШr laЧН - OЧМО a basОХТЧО МШЦparabХО Нata ПШr ХaЧН Сas bООЧ ШbtaТЧОН, ОaМС kСasСaa Тs ЧШа trОatОН as a sОparatО ЯaХuatТШЧ aЧН tСО МШЦparabХО pОr squarО ЦОtОr ЯaХuО Тs appХТОН tШ tСО tШtaХ usabХО squarО ЦОtОragО ШП tСО kСasСaa ТЧ quОstТШЧ aММШrНТЧg tШ tСО МaНastraХ rОМШrНs ШП JuЧО 201Ү.

18. ArrТvО at a valuО fШr busТЧОssОs - A rОХatТЯОХв СТgС pОrМОЧtagО ШП kСasСaa’s (з25%) МШЦprТsО sШЦО ПШrЦ ШП ОМШЧШЦТМ aМtТЯТtв, gОЧОraХХв spОakТЧg аТtСТЧ tСО ТЧПШrЦaХ sОМtШr. MШst ШП tСШsО busТЧОssОs arО prШбТЦТtв basОН aЧН МaЧ bО МatОgШrТsОН as sЦaХХ sМaХО rОtaТХ, СШt sСШаОrs, ХauЧНrв sОrЯТМОs, Мar ЦОМСaЧТМs, МarpОЧtrв аШrksСШps, НШrЦТtШrТОs & paаЧ sСШps, kТЧНОrgartОЧs Шr sЦaХХ sОrЯТМО МОЧtrОs. IЧ МasО ШП rОХШМatТШЧ tШ a rОsТНОЧtТaХ prШpОrtв, tСШsО СШusОСШХНs аТХХ ХШsО tСО ТЧМШЦО tСОв gОЧОratО tШНaв аСТМС ТЧ ЦШst МasОs аТХХ bО tСat СШusОСШХН’s ШЧХв sШurМО ШП ТЧМШЦО. TСОв Цust tСОrОПШrО bО МШЦpОЧsatОН ТЧ sШЦО ПШrЦ ПШr tСat ХШss ШП ТЧМШЦО аТtС a МОrtaТЧ aЦШuЧt аСТМС gТЯОs tСОЦ aММОss tШ a grОatОr ЧuЦbОr ШП squarО ЦОtОragО ШП rОsТНОЧtТaХ prШpОrtв Шr a sЦaХХ squarО ЦОtОragО ШП rОtaТХ / ХТgСt ТЧНustrТaХ prШpОrtв ТЧ tСО ЧОа НОЯОХШpЦОЧts. TСТs prШpОrtв МaЧ ТЧ turЧ bО ХОЯОragОН tШ ТЧЯОst ТЧ ЧОа busТЧОssОs Шr rОstart tСО busТЧОss ТЧ a ЧОа ХШМatТШЧ. EaМС busТЧОss аТХХ bО МШЦpОЧsatОН aММШrНТЧg tШ tСО AөB’s ТЧЯШХuЧtarв rОsОttХОЦОЧt sШМТaХ saПОtв guТНОХТЧОs аСТМС НТППОrОЧtТatОs bОtаООЧ tСШsО busТЧОssОs аСТМС arО ШППТМТaХХв rОgТstОrОН aЧН tСШsО tСat ШpОratО ТЧ tСО ТЧПШrЦaХ ОМШЧШЦв. Taб paвТЧg busТЧОssОs аТХХ rОМОТЯО ШЧО вОar’s аШrtС ШП ЧОt taбabХО ТЧМШЦО аСТХО tСШsО аСТМС arО ЧШt ШППТМТaХХв rОgТstОrОН аТХХ rОМОТЯО 12 ЦШЧtСs аШrtС ШП ЦТЧТЦuЦ ЦШЧtСХв аagО (240,000 MNT б 12 = 2,үү0,000 MNT). BusТЧОss prОЦТsОs arО МШЧsТНОrОН as ТЦprШЯОЦОЧts ШЧ ХaЧН aЧН tСus МШЦpОЧsatОН tСrШugС tСО staЧНarН rОpХaМОЦОЧt МШst ЦОtСШН tШ tСО ШаЧОr ШП tСО prШpОrtв (ЧШt aХаaвs tСО ШаЧОr ШП tСО busТЧОss).

A-6

19. ArrТvО at a full rОplaМОmОЧt МШst valuО fШr ТmprШvОmОЧts - AХХ ТЦprШЯОЦОЧts (ОбМХuНТЧg tСО gОrs sТЧМО tСОв arО МШЧsТНОrОН tШ bО a ЦШЯОabХО aЧН СТgСХв ХТquТН assОt) arО МatОgШrТsОН aММШrНТЧg tШ sТгО aЧН ЦatОrТaХs usОН. TСО purpШsО ШП tСТs ОбОrМТsО Тs tШ ОstabХТsС СШа ЦuМС Тt аШuХН МШst tШ buТХН tСО saЦО struМturО tШНaв. TСТs aХХШаs МШЦpОЧsatТЧg tСО ХaЧНШаЧОrs ПШr tСО ТЧЯОstЦОЧt tСОв СaЯО ЦaНО ТЧtШ buТХНТЧg ТЦprШЯОЦОЧts. TСТs Тs МaХХОН a FuХХ RОpХaМОЦОЧt ӨШst (FRӨ) apprШaМС aЧН Тs rОguХarХв usОН ТЧ sТЦТХar sТtuatТШЧs. TСТs Сas tШ bО usОН аТtСТЧ rОasШЧ tШ prОЯОЧt spОМuХatШrs ПrШЦ buТХНТЧg ТЦprШЯОЦОЧts quТtО МСОapХв ШЧХв tШ bО МШЦpОЧsatОН ПШr tСОТr НОstruМtТШЧ ШЧМО tСО prШУОМt Тs ШППТМТaХХв uЧНОr аaв. FОЧМОs аСТМС arО ЧШt bОТЧg sСarОН аТtС a tСТrН partв arО МШuЧtОН ТЧ tСОТr ОЧtТrОtв аСТХО tСШsО аСТМС arО sСarОН аТtС ЧОТgСbШurs arО ШЧХв МШuЧtОН at 50% ШП tСОТr FRӨ ЯaХuО, rОgarНХОss ШП аСШ paТН ПШr Тts ОrОМtТШЧ. ӨОrtaТЧ ТtОЦs suМС as sМОptТМ taЧks, pТt ХatrТЧОs aЧН trООs arО МШЦpОЧsatОН at a ПТбОН ratО.

20. CalМulatО fТЧal tШtal faТr valuО amШuЧt - OЧМО aХХ tСО НТstТЧМt ОХОЦОЧts СaЯО bООЧ МaХМuХatОН, tСОв arО aННОН up tШ arrТЯО at a ПaТr ЯaХuО ПШr tСО kСasСaa ТЧ MNT аСТМС Тs tСОЧ traЧsХatОН ТЧtШ a ЦОНТaЧ ЧuЦbОr ШП squarОs ЦОtОrs ТЧtШ aЧ aППШrНabХО rОsТНОЧtТaХ uЧТt at a ratО ШП 450 USө / SqЦ. TСТs ЯaХuО Тs prОsОЧt as a НОtaТХОН aЧН traЧsparОЧt ЯaХuatТШЧ rОpШrt tШ ОaМС kСasСaa at sub-bХШМk МШЦЦuЧТtв ЦООtТЧgs.

21. HШlН aЧ ШpОЧ Нaв аООkОЧН ОvОЧt - OЧМО aХХ ХaЧНХШrНs arО gТЯОЧ tСОТr ТЧНТЯТНuaХ ЯaХuatТШЧ rОpШrt, a аООkОЧН ШpОЧ Нaв ОЯОЧt аТХХ bО СОХН ТЧ tСО ХШМaХ МШЦЦuЧТtв tШ gТЯО ОЯОrвШЧО ТЦpaМtОН bв tСО prШУОМt аТХХ bО gТЯОЧ aЧ ШppШrtuЧТtв tШ НТsМuss tСОТr ЯaХuatТШЧ rОpШrt ТЧ НОtaТХ, МШrrОМt aЧв ОrrШrs tСat Цaв СaЯО takОЧ pХaМО aЧН uЧНОrstaЧН аСat tСОТr МШЦpОЧsatТШЧ ЦОaЧs ТЧ rОaХ ХТПО tОrЦs.

22. SТgЧ MОmШraЧНums Шf UЧНОrstaЧНТЧg аТtС tСО МШmmuЧТtв - OЧМО tСО ЯaХuatТШЧ prШМОss Тs МШЦpХОtОН aЧН aХХ ХaЧНХШrНs, tОЧaЧts aЧН ШММupТОrs СaЯО bООЧ ТЧПШrЦОН, a ЧОа “аТХХТЧgЧОss tШ partТМТpatО” surЯОв аТХХ bО МarrТОН Шut tШ ОstabХТsС аСat pОШpХО’s pШsТtТШЧs arО ЧШа tСat tСОв uЧНОrstaЧН tСО ОstТЦatОН МШЦpОЧsatТШЧ tСОв аТХХ rОМОТЯО. TСШsО ХaЧНХШrНs аСШ arО ТЧtОrОstОН ТЧ МШЧtТЧuТЧg tШ partТМТpatО ТЧ tСО prШУОМt аТХХ bО askОН tШ sТgЧ a ЧШЧ-bТЧНТЧg MШU аСТМС аТХХ СТgСХТgСt tСО ПuturО prШМОss aЧН ask ПШr МШЧtТЧuОН МШ-ШpОratТШЧ ТЧ НОЯОХШpТЧg tСО AHURP tШgОtСОr аТtС aХХ ШtСОr stakОСШХНОrs.

A-7

ATTACHMENT 2 - LAND AND ASSETS VALUATION EXAMPLE AND BOOKLET

The following tables illustrate the valuation mechanisms used to assess the value of the assets and land of one khashaa.

Khashaa No. 9-19 Land size : 587 / Sub-block 1

Assets Price Land 29,957,857 MNT Construction 1 value 25,255,641.50 MNT Construction 2 value 0 MNT Construction 3 value 0 MNT Garage value 15,865,213.7 MNT Fence Value 2,121,000 MNT Gate value 500,000 MNT Other structures value 971,995 MNT Vegetation value 80,000 MNT Business value 2,880,000 MNT Total price 77,631,707 MNT Compensation equivalent in sqm 70 sqm*

* The compensation equivalent is derived from the total value of the khashaa, dividing it by the per square meter price of Affordable Housing Unit (450 US $) times the value of one dollar in MNT(at the time of the valuation) :

Total value of the khashaa / 450*2400 2.2. Explanatory note : The explanatory note refers to the formulas applied in the calculations. - Land Price : The land price was calculated by multiplying the total surface of the khashaa by the corresponding block land price / sqm - Constructions' value : They were calculated with the Full Replacement Cost methodology. Based on images of the drone mapping survey, we established the total area of each construction. Then, in order to simplify the calculation while sticking to reality, and assuming each building was a four sides construction,we divided the total area by four, giving us the length of each side (L) and a generic width (W) for each building (first step). Once the first step completed, we then set the wall total size in with the following operation : (2L + 2W) *2.3 ,2. 3 being the generic height for a building (step 2). The foundation area (FA) is equal to the total surface of the construction, and the foundation m3 is equal to FA * 0.08, 0.08 being the depth of the foundation. To get to the final construction cost of one structure, we then realised the folowing operation :

Total area * Roof material price + Wall area * Wall material price+ FA* Foundation material price

A-8

This formula was used to determine construction prices of the khashaas main structures. It is worth mentionning that concerning garages, some of them do not have any proper foundation, hence the calculation formula is different in that case :

Total area * Roof material price + Wall area * Wall material price - Other structures and Gates : In order to determine the value of structures such as wooden latrine, wooden shed, and so on, GADIP calculation method was used. It is the same concerning the value of gates, divided in 3 rates. - Vegetation : The replacement cost for each piece of vegetation was valued at 10,000 MNT. - Fences : Khashaas share most of the time their fences with their neighbors. Thus, in order to determine the value of one khashaa's fence, the total length of the single use fence (SUF) and shared fences (SF) was calculated. Then, the following formula was applied to determine the value of the total fence for one khashaa (28 000 being the price per sqm of the construction material used to build the fences - poor quality wood) :

((SUF + SF/2 ) * 28,000 - Business: In order to determine one's business value, we were faced with two cases : either the business is officially registered to the authorities, or not. If the business' owner can present a valid registration certificate, then the compensation is equal to one year of net taxable income. If not, the compensation amounts to one year of minimum wage. Here, we must point out the fact that a certain amount of people were reluctant to provide informations concerning there businesses, probably because they were afraid that we would then transfer the information to official authorities. Hence, we can assume that informations collected during the survey may not represent entirely the reality. The business structure compensation was calculated using the same formula as the main structures.

Total price per khashaa: The total value for one khashaa is equal to the sum of all the

components previously mentioned.

A-9

ATTACHMENT 3 – LIST OF POTENTIAL BENEFICIARY HOUSEHOLDS

List of potential bОЧОfТМТarТОs’ СШusОСШlНs ТЧ SОlbО East

No HH ID Parcel Number Address

Land Tenure Type Street Door No

1 22 18643316542289 Khandgait 30 292 ownership

2 24 18643316501241 Khandgait 31 310a ownership



5 28 18643316439276 Khandgait 31 302b ownership






























A-10












44 150 18643316637029 Khandgait 35 709g ownership



















63 36 18643316479186 Khandgait 33 353 possession


65 79 18643316710177 Khandgait 32 332b possession




69 118 18643316637029 Khandgait 35 709v possession


A-11






74 90 18643316551180 Khandgait 33 359 use

75 148 18643316615047 Khandgait 35 709a use

76 149 18643316615047 Khandgait 35 709a use

77 161 18643316512295 Khandgait 30 291 use

78 163 18643316513222 Khandgait 32 319b use

79 80 18643316637180 Khandgait 32 327 renter,non



82 166 18643316666070 Khandgait 35 606b renter,non


84 83 18643316616227 Khandgait 32 323 renter,rel

85 19 18643316475241 Khandgait 31 309 rel, nopay




89 31 18643316595128 Khandgait 33 363b rel, nopay


















A-12








112 151 18643316637029 Khandgait 35 709g rel, nopay









121 188 18643316585111 Khandgait 33 364a rel, nopay




125 220 18643316698054 Khandgait 34 396a rel, nopay



128 26 18643316533271 Khandgait 31 298 nonrel, nopay

129 154 18643316634145 Khandgait 33 365a nonrel, nopay

LТst Шf pШtОЧtТal bОЧОfТМТarТОs’ СШusОСШlНs ТЧ BaвaЧkШsСuu АОst

No HH ID Parcel Number Address Land Tenure

Type Street Door No

1 1 18636314889908 Bayantsagaan 5 15 ownership









A-13


Type Street Door No












21 70 18636315934004 Bayantsagaan 10 4a ownership


23 73 18636315776011 Bayantsagaan 8 6_6b ownership








31 146 18636315926085 Bayantsagaan 9 49b ownership















A-14


Type Street Door No












57 5 18636314938917 Bayantsagaan 5 19 possession





62 142 18636315910086 Bayantsagaan 9 49a use

63 143 18636315853092 Bayantsagaan 9 31a use

64 11 18636314768979 Bayantsagaan 7 18 renter,non

65 136 18636315824066 Bayantsagaan 9 22b renter,non

66 137 18636315833064 Bayantsagaan 9 22b renter,non

67 52 18636314893948 Bayantsagaan 6 22 renter,rel

68 60 18636314870967 Bayantsagaan 10 1 renter,rel

69 2 18636314765877 Bayantsagaan 5 5 rel, nopay













A-15


Type Street Door No



84 77 18636315896010 Bayantsagaan 8 12a rel, nopay












96 201 18636315807097 Bayantsagaan 9 33a rel, nopay




A-16

ADDITIONAL INFORMTION: INVENTORY OF LAND

land in Selbe East

No HH ID Parcel Number

Address Land Tenure

Type

Land Area

Street Door

No

With

Permission

Without

Permission

1 22 18643316542289 Khandgait 30 292 ownership 886 61

2 24 18643316501241 Khandgait 31 310a ownership 572 10



5 28 18643316439276 Khandgait 31 302b ownership 133 28
































A-17


Address Land Tenure

Type

Land Area

Street Door

No

With

Permission

Without

Permission








44 150 18643316637029 Khandgait 35 709g ownership 321 99







51 171 18643316618075 Khandgait 35 708 ownership 481.1 0












63 36 18643316479186 Khandgait 33 353 possession 664 56


65 79 18643316710177 Khandgait 32 332b possession 256 0




69 118 18643316637029 Khandgait 35 709v possession 201 99





74 90 18643316551180 Khandgait 33 359 use 481 47

75 148 18643316615047 Khandgait 35 709a use 255 101

A-18


Address Land Tenure

Type

Land Area

Street Door

No

With

Permission

Without

Permission

76 149 18643316615047 Khandgait 35 709a use 255 101

77 161 18643316512295 Khandgait 30 291 use 500 82

78 163 18643316513222 Khandgait 32 319b use 126 0

Total 35913.1 2292

land in Bayankoshuu West


Address Land

Tenure

Type

Land Area

Street Door No With

Permission

Without

Permission

1 1 18636314889908 Bayantsagaan 5 15 ownership 700 46







8 15 18636314808930 Bayantsagaan 6 16 ownership 686.8 0













21 70 18636315934004 Bayantsagaan 10 4a ownership 300 57


23 73 18636315776011 Bayantsagaan 8 6_6b ownership 632 0







A-19


Address Land

Tenure

Type

Land Area

Street Door No With

Permission

Without

Permission


31 146 18636315926085 Bayantsagaan 9 49b ownership 503 31


























57 5 18636314938917 Bayantsagaan 5 19 possession 599.5 0

58 76 18636315797008 Bayantsagaan 8 7 possession 582 113




62 142 18636315910086 Bayantsagaan 9 49a use 520 0

63 143 18636315853092 Bayantsagaan 9 31a use 353 0

Total 31908.3 2073

A-20

ATTACHMENT 4 – VULNERABLE HOUSEHOLDS

vulnerable households in Selbe East

No HH ID Elderly headed Woman headed With disabled

member Family size

Land

right Area (m2)

1 19 7 491

2 21 Yes 4 886

3 22 Yes 8 Yes 947

4 25 2 Yes 571

5 32 5 467

6 33 7 467

7 34 5 432

8 37 Yes Yes Yes 6 Yes 592

9 39 Yes 5 Yes 311

10 45 5 484

11 47 5 491

12 48 Yes 1 491

13 79 4 Yes 256

14 81 4 546

15 86 Yes Yes 3 Yes 559

16 87 7 409

17 89 6 Yes 481

18 91 4 Yes 325

19 96 3 495

20 99 Yes 4 428

21 101 Yes 3 Yes 570

22 105 5 Yes 408

23 109 Yes 2 Yes 340

24 113 Yes Yes 3 Yes 743

25 114 4 Yes 289

26 121 5 Yes 980

27 123 Yes 3 481.1

28 124 1 Yes 677

29 126 Yes 3 Yes 530

30 128 Yes 2 Yes 688

31 129 4 747

32 152 1 Yes 582

33 153 6 446

34 159 4 396

35 167 4 Yes 691

36 168 1 500

37 171 Yes Yes Yes 7 Yes 481.1

A-21

No HH ID Elderly headed Woman headed With disabled

member Family size

Land

right Area (m2)

38 172 Yes 4 663

39 188 4 504

40 189 4 Yes 580

41 190 Yes 1 Yes 185

42 192 Yes 3 455

43 195 3 401

Total 43 3 11 9 172 22

vulnerable households in Bayankoshuu West

No HH ID Elderly headed Woman

headed

With disabled

member Family size

Land

right Area (m2)

1 2 Yes 3 653

2 4 Yes 3 637.7

3 5 5 Yes 599.5

4 8 Yes Yes 2 857

5 15 5 Yes 686.8

6 51 Yes 3 900

7 57 5 900

8 61 5 Yes 680

9 62 6 Yes 501

10 68 Yes 2 343

11 71 Yes 3 Yes 254

12 74 3 Yes 777

13 77 5 254

14 132 4 Yes 299

15 133 2 644

16 137 Yes 7 313

17 139 Yes 4 451

18 173 Yes 4 Yes 672

19 201 2 445

20 202 Yes Yes 3 520

21 207 4 Yes 275

22 208 6 Yes 645

23 209 Yes 6 Yes 484

24 210 Yes Yes 1 Yes 585

25 212 Yes 4 Yes 645

26 225 Yes Yes Yes 1 Yes 508

Total 26 6 8 5 98 14

A-22

II. ATTACHMENT 5 – LIST OF COMMUNITY CONSULTATIONS OF PHASE 1

MM No Date Target

Area Participants

Number

of

residents

M F Outcome

Selbe Areas

S 37/17 3/23/2017 Selbe

East

Organizers: UN-

Habitat team,

AHURP team,

Arnaud Heckmann,

ADB; Participated:

Residents of 1st sub-

block in SBD14

28 11 17

The residents agreed to meet again

with the entire sub-block residents

on 3 Apr 2017 and bring to the

meeting the unattended neighbours.

The project team agreed to develop

and bring to next meeting a

document which will record the

residents willingness to particpate

in the project.

S 38/17 3/29/2017 Selbe

East

Organizers: UN-

Habitat team,

Z.Tuya, AHURP

Participated:

Residents of 2, 3, 4,

5th Sub-blocks in

SBD14

27 15 12

Particpants agreed to share the

information they have received in

the meeting with unattended

neighbours and have a next meeting

by sub-block as per developed and

agreed schedule and bring the

unattended to the meeting.

S 39/17 3/31/2017 Selbe

West

Organizers:

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

Planner, Z.Tuya,

AHURP

Participated:

Residents of 1, 2 and

3rd sub-blocks of

CHD 18

36 23 13








S 40/17 4/1/2017 Selbe

West

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat SM, Z.Tuya,

AHURP; Residents

of 4th Sub-bock of

CHD 18

17 13 4

The particpants were tasked to

discuss and bring neighbours within

the sub-block to the next meetings.

Agreed to meet again at 14pm on 8

Apr 2017

S 41/17 4/3/2017 Selbe

East

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

Planner, Z.Tuya,

AHURP; Residents

of 1st sub-block of

SBD14

17 6 11

The participated residents

expressed their willingness to

particpate in the project and

confirmed it by signing in the list of

plot owners willing to participate in

the project. Community members

were tasked to inform and bring

neighbours who were not able to

attend the meetings.

S 42/17 4/4/2017 Selbe

East

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

Planner, Z.Tuya,

AHURP; Residents

of 3rd sub-block of

SBD14

11 7 4









A-23

MM No Date Target

Area Participants

Number

of

residents

M F Outcome

attend the meetings and inform back

to the project team when they

require to have next information

session on the project.

S 43/17 4/5/2017 Selbe

East

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

Planner, Z.Tuya,

AHURP; Residents

of 2 and 5th sub-

blocks in SBD14

12 6 6













S 44/17 4/7/2017 Selbe

West

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

Planner, Z.Tuya,

AHURP;Residents of

4th sub-block in

CHD18

8 4 4













S 45/17 4/8/2017 Selbe

West

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

Planner, Z.Tuya,

AHURP;Residents of

2nd sub-block in

CHD18

16 10 6













S 46/17 4/8/2017 Selbe

West

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

Planner, Z.Tuya,

AHURP;Residents of

1st sub-block in

CHD18

3 1 2













S 47/17 4/14/2017 Selbe

West

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

12 8 4





A-24

MM No Date Target

Area Participants

Number

of

residents

M F Outcome

Planner, Z.Tuya,

AHURP;Residents of

1st and 3rd sub-

blocks in CHD18









S 48/17 4/20/2017 Selbe

West

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

Planner, Z.Tuya,

AHURP;Residents of

3rd sub-block in

CHD18

16 7 9













S 49/17 4/21/2017 Selbe

West

N.Zolzaya, UN-

Habitat SM,

N.Naranbat, UN-

Habitat Urban

Planner, Z.Tuya,

AHURP;Residents of

all sub-block in

CHD18

16 5 11






the project.

Bayankhoshuu Areas

B49/17 24-Mar-

17 BE

Organizers: Arnaud-

ADB, AHURP Team:

Marc, Sarnai, Saruul,

Stephane

UN-Habitat team:

Enkhee, Tsogzolmaa,

Munkhuu, Naranbat

Participants:

Residents from all

sub-blocks in BE

54 30 24

UN-Habitat team informed the

people on the subdivision and

coverage of sub-blocks.

Participants discussed and selected

focal points to represent sub-blocks

and call people to the next meetings.

B50/17 30-Mar-

17 BE

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;

Residents of 1st sub-

block of BE

19 9 10








B51/17 1-Apr-17 BE

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;

Residents of 3rd sub-

block

14 9 5








B52/17 1-Apr-17 BE Ts. Tsogzolmaa,UN-

Habitat; 16 6 10



A-25

MM No Date Target

Area Participants

Number

of

residents

M F Outcome

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;

Residents of 4th sub-

block






B53/17 3-Apr-17 BE

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;

Residents of 2nd sub-

block

6 5 1








B54/17 4-Apr-17 BE

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;

Residents of all sub-

blocks

13 7 6








B55/17 4-Apr-17 BE

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

22 10 12













B56/17 5-Apr-17 BE

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

18 6 12













B57/17 6-Apr-17 BE

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

9 1 8













A-26

MM No Date Target

Area Participants

Number

of

residents

M F Outcome

B58/17 7-Apr-17 BW

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

6 2 4













B59/17 11-Apr-17 BW

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

39 22 17













B60/17 12-Apr-17 BW

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

6 2 4













B61/17 13-Apr-17 BW

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

27 10 17













B62/17 14-Apr-17 BW

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

11 10 1









A-27

MM No Date Target

Area Participants

Number

of

residents

M F Outcome





B63/17 15-Apr-17 BE&BW

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

16 5 11













B64/17 17-Apr-17 BE&BW

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

20 13 7













B65/17 25-Apr-17 BE&BW

Ts. Tsogzolmaa,UN-

Habitat;

D.Munkhuu, UN-

Habitat; B.Sarnai,

DTL AHURP;


blocks

15 5 10













Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

,

. ё

. . “

” . Э , , , ,

. ё . .

, .

. .

, .

.

Q&A:

/ 6-Ү0 /: ?

Purpose of the meeting: Introduction of AHURP Concept and Principles and mapping

of community willingness to particpate in the project

Documented by: N.Zolzaya Reviewed by: №: S 40/17

Date: 01.04.2017 Venue: CHD18 Khoroo Office Participant number: 17

Male- 13 Female-4

Organizers: N.Zolzaya, UN-Habitat SM, N.Naranbat, UN-Habitat SM, Z.Tuya, AHURP

Participated: Residents of 4th Sub-bock of CHD 18

Minutes of Meeting

A-29

: ?

. : . : ?

: ?

N.ГШХгaвa: . . , ,

. : ?

N.ГШХгaвa: , . : Photos 4 ?

: ?

: ?

: ( ) 2 ?

. : .

, .

: Э town house- ?

: ( ) ?

: ?

: ?

: (town house) ?

: . ?

Outcome:

The particpants were tasked to discuss and bring neighbours within the sub-block to the next meetings. Agreed to meet again at 14pm on 8 Apr 2017.

A-30

Attendance:

Photos:

A-31

Attendance Map:

A-32

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, .

. Q&A:




Date: 03.04.2017 Venue: SBD14, GADIP Field

Office

Participant number: 17

Male- 11 Female-6

Organizers: N.Zolzaya, UN-Habitat SM, N.Naranbat, UN-Habitat Urban Planner, Z.Tuya,

AHURP

Participated: Residents of 1st sub-block of SBD14

Minutes of Meeting

A-33

: .

. N.ГШХгaвa: .

, . .

: ?

: . ?

: 19Ү . 2 40 .

. : . .

, . : .

. . .

Outcome:

The participated residents expressed their willingness to particpate in the project and confirmed it by signing in the list of plot owners willing to participate in the project. Community members were tasked to inform and bring neighbours who were not able to attend the meetings.

Attendance:

A-34

Photos:

Attendance Map:

A-36

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, .

. Q&A:

/352 /: . . . .

Э /351 /: .





Office


Male- 7 Female-4


AHURP

Participated: Residents of 3rd sub-block of SBD14

Minutes of Meeting

A-37

. : 2019 . Э .

ё . . : Э ? . : ?

: ?

: ?

: . ? Outcome:

The participated residents expressed their willingness to particpate in the project and confirmed it by signing in the list of plot owners willing to participate in the project. Community members were tasked to inform and bring neighbours who were not able to attend the meetings and inform back to the project team when they require to have next information session on the project.

Attendance:

Photos:

A-38

Attendance Map:

A-39

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, .

. Q&A:

: ?

: ё ?





Office


Male- 6 Female-6


AHURP

Participated: Residents of 2 and 5th sub-blocks in SBD14

Minutes of Meeting

A-40

. : . : ?

. : . . , .

: ?

: , . : ?

. : Э 2 . . .

, . : Э ? ?

N.ГШХгaвa: . .

: ?

Outcome:


Attendance:

A-41

Attendance Map:

A-42

Proceeding:

- N.ГШХгaвa , . -

. , . Э

, , , , , . ,

, 3 . Э ,

. ё

. . “ ”

. Э , , , , .

ё . .

, .

. . , .

.

Q&A:

: ?

. : 2019 . : ?

. : - . : PСШtШs ?

. : , . : ?





Male- 4 Female-4


AHURP

Participated: Residents of 2nd sub-block in CHD18

Minutes of Meeting

A-43

: ?

: ?

. : Э , . : ?

N.ГШХгaвa: .

: ?

: ?

: ?

: ?

: ?

. : Э , , Э .

: ?

Outcome:


Attendance:

A-44

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, .

. Q&A:

: 1 ?

: ?




Date: 08.04.2017

14,00

Venue: CHD18 Khoroo Office Participant number: 16

Male- 10 Female-6


AHURP

Participated: Residents of 4th sub-block in CHD18

Minutes of Meeting

A-45

/ -64 /: . ?

/ -63 /: . ?

/ -64 /: . . Э . Outcome:


Attendance:

A-46

Photos:

Attendance Map:

A-47

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, . Э . .

Q&A:

/ -103 /: . ?

/ -104 /: . ?




Date: 08.04.2017

1ү,00


Male- 1 Female-2


AHURP

Participated: Residents of 1st sub-block in CHD18

Minutes of Meeting

A-48

. : . / -6-ү3 /: . Э

?

N.ГШХгaвa: .

. Outcome:


Attendance:

A-49

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, .

. . .

Q&A:

: 3 . .

. . .




Date: 14.04.2017

1ү,00


Male- 8 Female-4


AHURP

Participated: Residents of 1st and 3rd sub-blocks in CHD18

Minutes of Meeting

A-50

: . , . .

/ ү-10/: Э . Э . ?

: ү4 . Э . , .

N.ГШХгaвa: .

Outcome:


Attendance:

A-51

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, .

. , .

, . Q&A:




Date: 20.04.2017

1ү,00


Male- 7 Female-9


AHURP

Participated: Residents of 3rd sub-block in CHD18

Minutes of Meeting

A-52

: 2 160 . . ,

. : ? ?

. : 2 . 40 2019

40 ? 3 .

: .

: 25 . 19 . 2004 . 3,5 5 – . .

. .

. /6Ү /: 2 . Э

. /11ү /: .

. ?

Outcome:

.

. . .

Attendance:

A-54

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, .

. Q&A:

: . 2023 . ?




Date: 21.04.2017

1ү,00

Venue: SBD14, GADIP Field

Office


Male- 5 Female-11


AHURP

Participated: Residents of sub-blocks in CHD18

Minutes of Meeting

A-55

/ 33-3ү9/: . ,

. /32-333 /: .

? / /: 350 - Э . .

3үҮ . 365 . 369, 3үҮ .

: , . . ?

N.ГШХгaвa: . , . 1-

. .

Outcome:

The participated residents expressed their willingness to particpate in the project and confirmed it by signing in the list of plot owners willing to participate in the project.

Attendance:

A-57

Proceeding:

- N.Zolzaya , . -

.Э , -

. , . Э

, , ,

, , . ,

, 3 . Э

, .

ё . “ ” . Э , , , ,

. ё . .

, .

. .

, . 2019

.

. .


of community willingness to participate in the project



Office


Male-11 Female-

17

Organizers: UN-Habitat team, AHURP team, Arnaud Heckmann, ADB

Participated: Residents of 1st sub-block in SBD14

Minutes of Meeting

A-58

Q&A:

. /Х ы 31-294/: 100 ?

. я //: 50- . .

. э /Х ы 315/: . Э 5

. . я //: , ё .

, ё .

э э /Х 410/: - PСШtШs . ? Х э : -

, .

. Outcome:

The residents agreed to meet again with the entiire sub-block residents on 3 Apr 2017 and bring to the meeting the unattended neighbours. The project team agreed to develop and bring to next meeting a document which will record the residents willingness to particpate in the project.

Attendance:

A-59

Photos:

A-60

Attendance Map:

A-61

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, . 2019

. .

.

Q&A:





Office


Male-15 Female-

12

Organizers: UN-Habitat team, Z.Tuya, AHURP

Participated: Residents of 2, 3, 4, 5th Sub-blocks in SBD14

Minutes of Meeting

A-62

э //: , ? ?

э /336/: . э /307/: . Э

?

. я : 2 . э //: 0.0Ү .

. ?

э //: , . Э ?

э /330/: . 0,0Ү ?

. . я : ,

. . . Э . .

. Outcome:

Particpants agreed to share the information they have received in the meeting with unattended neighbours and have a next meeting by sub-block as per developed and agreed schedule in below and bring the unattended to the meeting.

Sub-block Meeting date and time

1. 2 and 5 18pm on 5 Apr

2. 3 18pm on 4 Apr

3. 4 18pm on 6 Apr

Attendance:

A-64

Photos:

Attendance Map:

A-66

Proceeding:

- N.Zolzaya , . -

. , . Э

, , , , ,

. ,

, 3 . Э

, .

ё .

. “ ” . Э , , , ,

. ё . .

, .

. .

, .

. Q&A:

: ?

. : Э 2019 .

Purpose of the meeting: Introduction of AHURP Concept and Principles and

mapping of community willingness to particpate in the project



Male-23 Female-

13


AHURP

Participated: Residents of 1, 2 and 3rd sub-blocks of CHD 18

Minutes of Meeting

A-67

: 2020 ? ?

: ?

: ?

: ?

. : , .

: ?

: ? Э , ?

: ?

: Э ?

N.ГШХгaвa: Э - . : Э ?

: ?

: 100% ?

: ?

: ?

: ?

. : . : town house ?

: ? . : ? , ?

: Э ?

: Э ? , ? ?

Outcome:

Particpants agreed to share the information they have received in the meeting with unattended neighbours and have a next meeting by sub-block as per developed and agreed schedule in below and bring the unattended to the meeting.

Sub-block Meeting date and time

1. 2 18 pm on 7 Apr

2. 3 16 pm on 8 Apr

3. 1 18pm on 8 Apr

Attendance:

A-69

Photos:

Attendance Map:

A-71

ы я : -

, ,

.

,

.

ү0%

.

э

/ ы э э : - э э э ө ө ө : .

э э э э : : B49/17

: 2017.03-24

: 105

ы : 54 Э : 30 Э : 24

: - - - - / , , .................../ - - - .Э - . - . - .

:

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A-72

. 2

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.

.

э

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.

.

э

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,

. 2

. 12- , ,

,

.

A-73

.

э

?

я

.

. Э

2 .

Хэ

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, ё .

ү ү :

,

.

1- 9667-4299 / /

2- 8873-0416

3- 9914-6479

4- 9521-4602

Х :

A-74

:

A-76

ы я : - -

, , . -

. .

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. .

ү5-90% . э

50- , ?

Х

50 , , . 1-

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. э

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/ ы э э

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э э э ө ө ө : .

э э э э : : B5017

: 2017.03-30

:

GMG

3

ы : 19

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PHASE 2: MEETING MINUTES

Meeting proceedings:

Ms.N.Zolzaya, Social Worker, UN-HABITAT opened the meeting and introduced to the residents the purpose of the meeting and the participants. It was followed by the introduction by Arnaud Heckmann, Senior Urban Development Specialist, ADB, on the AHURP project progress. He provided the following information.

Under the proposed project low-rise buildings will be built. The solar PV system to be installed on the building roofs will supply certain portion of the heating for the buildings. The private sector participation is being sought. The required land area for the project shall be at least 1 ha, if this requirement is not met then the other locations will be looked for. The land owners will not be pushed, they shall participate in the project on a voluntary basis. The community will be engaged in the project planning phase, and their comments will be incorporated. The preliminary valuation of land and properties are completed and the final valuation will be done when the project is implemented.

After his introduction, relevant experts explained about the certificate for the project participation and the valuation approach.

Anya: Land and properties will be swapped for an apartment. Based on the property valuation, the certificate will be awarded to the land owners. The certificate will be subjected to the project perimeter. Four types of apartments are being proposed, including townhouses, apartments, rental apartments and rental apartments for ownership. If the households owning small squire meter of land want to get apartment with bigger squire meter, they may do so by getting a loan. The preliminary valuation will be discussed with the residents, if an agreement will be reached,

Workshop/Meeting Topic: Meeting to share results of the preliminary valuation under AHURP

Block 1

Minutes taken by:

Reviewed by: Reference #: S1

Date: 30.06.2017 Venue: GADIP Field Office,

Khoroo 14, Sukhbaatar District

Number of participants:

Total - 13

Male - 5 Female -8

Organizers: AHURP Project Team: Arnaud Heckmann, Anya, Chris, Saruul, Zaya, Marc,

Stephane, Sarnai, Tuya, Chinzorig, Enkhtsetseg, Zolzaya, Naranbat

Participants: Residents of Block 1, Khoroo 14, Sukhbaatar District

Purpose of the Workshop/Meeting: To introduce property valuation to AHURP khashaa

owners

Workshop/Meeting Minutes

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then the property registration will need to be validated. This process will require significant amount of time, therefore, needs to be initiated from now on.

Chris: Every household has an opportunity to get an apartment. In the property valuation, the existing structures and houses have been measured by the perimeter of their external walls. In case if owners run businesses in their khashaas, the reimbursement will be paid based on the evidence of the tax payment. The land area shall be defined based on the cadastral mapping. Trees and bushes will be incorporated in the valuation, but not the saplings. For the time being the valuations are done for the owners, which will serve as a basic value. Depending on the valuation, the square meter of apartments will be defined for swapping. For example, assuming that your property pays off 40 m2 apartment, but you want to get 50 m2 apartment, then you can pay the difference in concessional terms and conditions.

Following this presentation, the valuation sheets were distributed to the participants. They were encouraged to review it and were invited to raise any questions they had.

Question and answer

Resident of khashaa #308: We need to know the market price of apartments and the lowest price available at the market, in order to make sure that swapping takes place without a loss at our end. What you have said sounds like threatening, if one or several households do not participate in the project, then the project will not be implemented.

Chris: The valuation presented today is not being imposed to you. By collaborating with us you will facilitate the incorporation of your omitted properties, if any, in the valuation.

Arnaud: We do not intend to threaten you. The project cannot be implemented at the area less than 1 ha. If there are households which object the project, then the residents are encouraged to discuss it thoroughly among themselves.

Resident of Khashaa #298: My property was valued at MNT60 million, and said to be sufficient to swap for 56m2 apartment. Would it still remain valid in two years?

Chris: Obviously the market price will change. At the moment we cannot say exactly. However, we will try not to change the price and calculated square meters. We have tried to value your properties using the highest market rate.

Resident of khashaa #298: We rent our khashaa. Is it possible to consider it as a business in the valuation?

Chris: If your khashaa is rented for the residential purpose, then it will not be regarded as a business.

Resident of khashaa #302 : How about the khashaas affected by the road construction. Shall the khashaa owners choose either of the two projects?

Arnaud: The Project 1 will reimburse in cash. You can participate in the AHURP project with the major portion of your land, which remains unaffected.

Resident of khashaa #310 : Some of our properties are not incorporated in the valuation. Will the price for the project apartment without interior finishing be cheaper?

Chris: Please contact our staff member Saruul to incorporate your omitted properties in the valuation.

Resident of khashaa #308: Price for the square meter of the apartment where I currently leave is MNT130,000, whereas the 1m2 price for apartment being proposed by the project is MNT1,100,000. This difference seems to be too big.

Arnaud: The project apartment is priced at MNT1,100,000 per 1m2, which is higher than the current market rate, the reason being the project apartments are to be provided with the full range of utility services, roads and public areas.

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Resident of khashaa #308: The project is said to involve no resettlement. How will the safety of our living environment be ensured during the project implementation?

Arnaud: We are planning to minimize the time to be spent for the construction, and complete the construction of the low-raise buildings during the warm months. All necessary safeguard measures will be undertaken in order to ensure safety and minimize impacts to the residents throughout the construction phase.

Decision:

The households will contact MAD team, if there is any mismatch in the preliminary valuation. The next meeting will be convened on 20th July.

Attentance:

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Ms.N.Zolzaya, Social Worker, UN-HABITAT kicked off the meeting and provided the detailed information on the project and valuation approach.

Following the presentation on the project and valuation methods, N.Naranbat, Social Worker, UN-HABITAT and Ms.Ariunzaya, AHURP Project Officer distributed to each participant the valuation sheets, which were prepared and printed out by MAD staff.

Those residents, who had no objection to the valuation method and calculated value of their properties, signed the valuation sheet confirming that he/she agrees with the valuation.

The meeting was attended by twelve khashaa owners of Block 1, some of whom raised the following questions.

Resident of khashaa #31-300:

According to the valuation results received on June 30, our khashaa was valued at MNT85mln, which is now reduced to MNT84mln in this updated version.


Square meter of khashaa plot is indicated incorrectly in the valuation. It is necessary to come to our khashaa with the valuation records and verify the squire meter on the site.


Valuation results of our adjacent khashaa #321 have not been provided yet. When will it be ready?

Resident of khashaa #31-308: Proposed value of our garage is too low. If one builds now a garage using blocks, it would never be valued at MNT400,000. I do not understand why such unrealistic valuation has been done, and why it has been changed two three times.

After the project presentation, the participants were exchanging their views among themselves and were expressing their expectations that if the project would be completed within its deadline,


Block 1

Minutes taken by:


Date: 31.08.2017 Venue: Site Office, Khoroo 14,

Sukhbaatar District


Total 12

Male - 6 Female -6

Organizers: AHURP Project Team: Ariunzaya, Zolzaya, Naranbat and Emily

Participants: Residents of Block 1Khoroo 14, Sukhbaatar District


owners


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their living environment will be transformed significantly. Several participants declared that some of their properties are not included in the valuation, whereas, some mentioned that the squire meter of their houses are indicated incorrectly. They asked how this issue shall be addressed.

Outcome:

The project team requested the residents, who received the valuation report, to thoroughly review the square meters of their khashaa and houses indicated in the valuation report. The residents were advised to sign the valuation sheet and return it to the project team, if they agree with the valuation approach and results.

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Ms.N.Zolzaya, Social Worker, UN-HABITAT opened the meeting and provided the detailed information on the project and valuation approach.

Following the presentation on the project and valuation methods, N.Naranbat, Social Worker, UN-HABITAT and Ms.Ariunzaya, AHURP Project Officer distributed to participants the valuation report, which were prepared and printed out by MAD staff.

Those residents, who agreed with the valuation approach and calculated value of their properties, signed the valuation sheet. The residents, who revealed some mismatch in the valuation, were asked to write down their comments in the space under the section for signature of the report.

Twenty five khashaa owners of Blocks 1 and 2 attended the meeting and received their property valuation reports. The project team answered to the questions raised by the residents regarding breakdown of the square meter calculation of their properties and price of apartments.

After receiving information about the project progress and valuation results, several participants expressed their intention to make their decision after having reviewed and discussed it with their family members. Few participants declared that some of their properties are omitted in the valuation and there are mismatches in the square meter of their khashaa and houses. They asked how to address this issue.

Questions that were raised:

Resident of khashaa #32-315: In the proposed valuation, my house is valued with 75m2. In fact, this is the house with 148m2 floor area and we hold the Immovable Property Registration Certificate. The current market price of similar houses, which are built using Canadian technology, is in the range of MNT680,000-1,200,000, whereas my house is valued at MNT273,415, which is way too low. I do not agree with the valuation results.


Blocks 1 and 2

Minutes taken by:


Date: 22.09.2017

Time: 19.00

Venue: Site Office, Khoroo 14,

Sukhbaatar District


Total 25

Male - 8 Female - 17

Organizers: AHURP Project Team: Ariunzaya, Zolzaya and Naranbat

Participants: Residents of Blocks 1 and 2, Khoroo 14, Sukhbaatar District


owners


A-118

Resident of khashaa #31-333 : Our family is growing bigger with new members. Hence, we are planning to build a new house in our khashaa. I requested to incorporate the value of our new house which is yet to be built in the valuation during the project implementation.

Resident of khashaa #32-336: I would propose MNT200,000-250,000 per 1m2 of my khashaa. The rate proposed in the valuation by the project is too low.

Resident of khashaa #31-301: Our house is equipped with a low-pressure boiler. We have also invested in the respective heating system, appliances and fittings. I would like to know how it has been considered in the valuation.

Resident of khashaa #31-309: According to the valuation results, our property can be swapped for a three-room apartment. We want to swap it for two separate apartments.

After the project presentation, the participants were exchanging their views among themselves and were expressing their expectations that if the project would be completed within its deadline, their living environment will be transformed significantly.

Outcome:

It was agreed, that the residents will collaborate with the valuation team to rectify property omissions and mismatch in square meters of their khashaas and houses. An agreement was also reached that the residents will contact the project team to provide their feedback after having consulted with their family members.

Attendance:

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Following the presentation on the project and valuation methods, N.Naranbat, Social Worker, UN-HABITAT and Ms.Ariunzaya, AHURP Project Officer distributed to participants the valuation report, which were prepared and printed out by MAD staff.

Those residents, who agree with the valuation approach and calculated value of their properties, signed the valuation sheet. The residents, who revealed some mismatch in the valuation, were asked to write down their comments in the space under the section for signature of the report.

Fourteen khashaa owners of Blocks 3 and 4 attended the meeting and received their property valuation reports. The project team answered to the questions raised by the residents regarding breakdown of the square meter calculation of their properties and price of apartments.

After receiving information about the project progress and valuation results, several participants expressed their intention to make their decision after having reviewed and discussed it with their family members. Few participants declared that some of their properties are omitted in the valuation and there are mismatches in the square meter of their khashaa and houses. They asked how to address this issue.

Questions asked:

Resident of khashaa #32-390: I have reviewed the preliminary valuation results. The valuation and project approach sound rather advantageous, because it proposes an extra 12m2 that can be provided in form of a garage or to be added to the square meter of an apartment to be swapped.

Resident of khashaa #32-319: There were some inaccuracies in the figures shared during the previous meeting. They are now corrected in this updated version of the report. I do support the


Blocks 1, 2,3 and 4

Minutes taken by:


Date: 22.09.2017

Time: 20.00

Venue: Site Office, Khoroo 14,

Sukhbaatar District


Total - 14

Male - 7 Female - 7

Organizers: AHURP Project Team: Ariunzaya, Zolzaya and Naranbat

Participants: Residents of Blocks 1, 2, 3 and 4 of Khoroo 14, Sukhbaatar District, who did not

attend the previous meetings


owners


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project. I just wish that all the participating households could reach an agreement and the project be implemented as soon as possible.

Resident of khashaa #34-391: May I take the preliminary valuation reports for my khashaa and that for my МСТХНrОЧ’s kСasСaa, and provide our feedback later on?

Resident of khashaa #34-359: I have reviewed the preliminary valuation report and will provide feedback after having discussed it with my family.

Outcome:

It was agreed, that the residents will collaborate with the valuation team to rectify property omissions and mismatch in square meters of their khashaas and houses. An agreement was also reached that the residents will contact the project team to provide their feedback after having consulted with their family members.

Attendance:

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Following the presentation on the project and valuation methods, N.Naranbat, Social Worker, UN-HABITAT and Ms.Ariunzaya, AHURP Project Officer distributed to each participant the valuation sheets, which were prepared and printed out by MAD staff.

Seven khashaa owners participated in the meeting, who received preliminary valuation report of their properties. The meeting was attended by the new comers also those who participated in the previous meeting but had not made their decision then.

Question & answer:


I did not live here for a while and am recently arrived from abroad, where I lived for some time. I did not attend the previous meetings, hence, wish to have detailed information about the project.

Project team:

The project team made the presentation on the project information, which was presented prior to the AHURP project valuation.

Resident of khashaa #31-295: I have attended several meetings. Former mayor Bat-Uul recently held a meeting with our community, where he said that valuation proposed for the land acquisition under the ongoing project has been set quite low. Likewise, under this project, properties are valued at low rate, hence it is challenging for me to make a decision. I have a big family. According to the proposed valuation our properties can be swapped for one room apartment, which is not sufficient to accommodate my family.

Project team:

The ongoing project is also proposing its valuation results to the affected households. Just recently 27 khashaas have been resettled to acquire land for the construction of the thermal power plant, which was planned in August. The amount of proposed reimbursement according to the


Minutes taken by:


Date: 12.10.2017 (Time: 19.00) Venue: Site Office, Khoroo 14,

Sukhbaatar District


Total - 7

Male - 2 Female -5

Organizers: AHURP Project Team: Ariunzaya, Zolzaya, Naranbat, Enkhtsetseg and Sarnai

Participants: Residents of Blocks 1, 2, 3 and 4, Khoroo 14, Sukhbaatar District


owners


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valuation was acceptable to the affected households. Accordingly, the land was acquired after having reached an agreement between the residents and tСО ЦuЧТМТpaХТtв. TСus, tСО AHURP’s valuation approach shall not be politicized.

Resident of khashaa #33-361: I do not agree with the valuation results. I want to have the valuation results verified one more time. The rate used in the valuation approach seems to be low.

The team informed that they are almost completing the stage of sharing the valuation results with the households, which are residing at the project site. Since the next steps of the project are pОЧНТЧg, tСО ЧОа МШЦОrs ТЧ tШНaв’s ЦООtТЧg аОrО rОquОstОН tШ ОбpОНТtО tСОТr НОМТsТШЧ ЦakТЧg and provide their feedback soonest possible. Also those, who want to take the valuation reports with them to consult with their families, were requested to contact the project team back and provide their feedback.

Attendance:

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Ms.Togzolmaa, Social Worker, UN-HABITAT opened the meeting and briefed the participants about the purpose of the meeting to introduce and discuss the outcome of the preliminary land valuation conducted under the Socio-Economic Studies of AHURP. Following the briefing, Arnaud Heckmann, ADB explained in detail how land can be swapped for an apartment. He highlighted that it is just an initial proposal, which will be further improved based on the discussions with the residents. It was further explained that land and property valuation is to be based on market principles. This step will identify the amount of fund to be required for the implementation of this project. Very big team is working in this project to develop housing area using an integrated urban re-development approach. He finally mentioned that the project is pursuing a policy to ensure apartment ownership by each of the land owners.

Anya /Affordable housing specialist/

Land and properties can be used for: • Swapping for and apartment in Townhouse or Low-rise apartment building; • Down payment for housing; • Renting of rental apartment for an ownership; and • Renting of rental apartment.

Mark (MAD) introduced how khashaa plot and properties of residents is being valued and what is being considered in the valuation. He explained in particular the issues taken into account,

Workshop/Meeting Topic: Meeting to share results of the preliminary land valuation under AHURP

Minutes taken by:

D.Munkhuu

Reviewed by: Reference #: B1

Date:

29.06.2017

Time:

16.00

Venue:

Bayankhoshuu Jantsan intersection

GMG Commercial Center

3rd Floor


Total 16

Male - 6 Female -11

Organisers: - Sarnai Battulga, Expert, MAD - Christopher de Gruben, Expert, MAD - Emily, Expert, MAD - Arnaud Heckmann, ADB - Enkhtsetseg Shagdarsuren, UN-HABITAT - Ts.Tsogzolmaa, Social Worker - D.Munkhoo, Social Worker

Participants:

Residents of Block 1 of AHURP Site in Khoroo 8, Songinokhairkhan District

Purpose of the Workshop/Meeting:

To introduce and discuss preliminary land valuation under AHURP Project


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including information on land owner, plot size, existence of built properties, consideration of registered and unregistered businesses, age and status of trees, and wells on the plot and others, which are to be calculated for reimbursement.

After that the preliminary valuation sheets were distributed to the participants and the questions were answered.

Resident:

When and at which point the road construction will commence?

AHURP Team:

PХОasО НШ ЧШt ЦТб tСО tаШ prШУОМts. RШaН aЧН utТХТtТОs arО bОТЧg buТХt uЧНОr AөB’s aЧШtСОr ongoing project. The road construction is planned to commence in August and consult tive meetings with the affected households are being held.

However, our project now being discussed with you will commence in 2019. This project is at its stage of getting comments from the you.

Otgonkhuu, Khashaa #9-31:

Does it mean that the smallest plot can be swapped for at least 35 2 apartment?

Arnaud Heckmann AHURP:

If the land owner is living at his plot his land can be swapped for a 35 2 apartment, even if the actual size his/her land is smaller than 35 2. Most importantly this opportunity can be realized thanks to your collaboration for shared development.

Khashaa #9-20

My father is the land owner. What can I get?

AHURP:

• 1st option: you may live with your father. Your family may get apartment with bigger square meter and pay the difference yourself.

• 2nd option: if you have a property title on your name, you may use it for a down payment and buy an apartment with concessional terms.

• 3rd option: you may consider rent apartment. (There are two types of rent apartment.)

Bayarsaikhan, Khashaa # 12-1:

I am planning to leave with my family for the USA to stay there quite long time. We are interested in swapping our land plot and business with a premise for business. However, we have some concern that we may be left with nothing when we come back. How shall we proceed?

AHURP

If you are going to leave for a long time, it is may be better to delegate this issue to your close relatives. Such a case is difficult to be handled by the project.

Outcome:

• The preliminary land valuation was shared with the residents of the selected area and their comments were received.

• The results of the initial efforts have been seen and the indicative picture of an attitude by the community has been observed.

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Ms.Togzolmaa, Social Worker, UN-HABITAT kicked off the meeting and presented in detail the project related information and valuation methods to the participants. She also briefed the

participants that the project is currently at the stage of the Feasibility Studies and informed that the

valuation sheets of each khashaa will be distributed to them. In addition, she asked the participants to

review the preliminary valuation results of each their property and encouraged them to address their

questions to the MAD Experts, if any. She then explained about the valuation methods.

Following the presentation by Tsogzolmaa on project introductions and valuation methods, Ms.D.Munkhoo, Social Worker, UN-HABITAT and Ms.Ariunzaya, AHURP Project Officer distributed to each participant the color sheet of valuation of his/her khashaa, which were prepared and printed out by MAD staff.

Those participants, who were happy with the valuation method and size of apartment being proposed by the project, signed the valuation sheet confirming that he/she has reviewed and agreed with the valuation method.

The meeting was attended by twelve khashaa owners of Block 1, some of whom raised the following questions.

Khashaa #9-31 Is it possible to get area for business activities in addition to the apartment swapped for khashaa? Because we have been running business in our khashaa.

Ariunzaya, AHURP Project Officer:

Yes, it is possible. However, it is too early to directly discuss this issue now. It will be possible when real swap takes place. I encourage you at this stage to provide your comments whether you agree or not with the valuation method. We have one extra black-white cope of the valuation sheet, and if you agree with the proposed valuation method, please sign on this copy and leave it with us.

Workshop/Meeting Topic: Meeting to share preliminary valuation under AHURP for Block 1 Minutes taken by:


Date: 31.08.2017

Time: 14.00

Venue:

Khoroo 8, Bayankhoshuu


Total 15

Male-7 Female-5

Organizers: - Ts.Tsogzolmaa, Social Worker - D.Munkhoo, Social Worker - Ariunzaya, MAD - Emily, MAD

Participants:



Introduce and discuss preliminary results of the valuation under AHURP Project


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Khashaa # 9-31:

Our one garage with 40 2 area is not included in the valuation. I raised this issue during the previous meeting, and it remains as it was. In addition, the proposed value of our trees is too low. These trees yield fruits and berries. Current market price of such trees, especially if they yield berries, is very high. Please study and to consider it.

Khashaa #9-31 :

Our khashaa is located along the existing road. Hence, I want to get higher value for my plot. We also run business in our khashaa.

Khashaa #9-32 :

I pay taxes individually. Therefore, I expect to get a bit different valuation. Our sewerage septic tank is not included in the valuation.

Khashaa #9-32 :

We sell in our khashaa spare parts of Japan cars. This business is not included in the valuation.

While answering to several such questions, the project team explained that this is the preliminary valuation, and if the project would continue, then such valuation method will be used, indeed some of the owners may swap their land for business area. It was also explained that the agreement is being sought not for the valuation itself, if the owners agree with the method of the valuation, they can sign the sheet. It was also admitted, that the further valuation will incorporate the omitted properties.

Outcome:

After the presentation on the project, the participants were exchanging their view amongst each other and were expressing their expectations that if the project would be completed within its deadline, their living environment will be transformed. Several participants said that some of their properties are not included in the valuation and some mentioned that the squire meter of their houses are indicated wrongly, hence they were inquiring how this issue shall be addressed.

The participants were encouraged to write down on the document to be kept by the project implementing agency their comments regarding their disagreement with the valuation method being proposed by the project, as well as comments on omissions of some of their properties in valuation, and mismatch of squire meters of their khashaa, house and other properties.

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Ms.Togzolmaa, Social Worker, UN-HABITAT kicked off the meeting and presented in detail about the

project and valuation methods to the participants. She also briefed the participants that the project is currently

at the stage of the Feasibility Studies and informed that the valuation sheets of each khashaa will be distributed to

them. In addition, she asked the participants to review the preliminary valuation results of each their khashaa and

encouraged them to address their questions to the MAD Experts, if any. She then explained about the valuation

methods.

Following the presentation by Ms.Tsogzolmaa on project introductions and valuation methods,

Ms.D.Munkhoo, Social Worker, UN-HABITAT and Ms.Ariunzaya, AHURP Project Officer distributed to each

participant the color sheet of valuation of his/her khashaa, which were prepared and printed out by MAD

staff.

Those participants, who were happy with the valuation method and size of apartment being proposed by

the project, signed the valuation sheet confirming that he/she has reviewed and agreed with the valuation

method. Whereas, some of the participants said, they will still need to discuss it with their family members.

(Total number of households who signed the confirmation document is 13)

Issues that were raised:

Several residents complained that their properties are not fully incorporated in the valuation, about

which the notes have been taken by project social specialists, who have also explained that this

was not the final valuation hence, the further valuation works will be conducted.

Workshop/Meeting Topic : Meeting to share the results of the valuations under AHURP Minutes taken by:

D.Munkhoo


Date:

07.09.2017

Time:

17.00

Venue:



Total 19. Out of which: Male-11

Female-8

Organizers : - Ts.Tsogzolmaa, Social Worker - D.Munkhoo, Social Worker - Ariunzaya, MAD - Emily, MAD

Participants:



To share results of the preliminary valuation under AHURP Project and get their

comments


A-130


Ms.Togzolmaa, Social Worker, UN-HABITAT kicked off the meeting and presented in detail about

the project and valuation methods to the participants. She also briefed the participants that the project

is currently at the stage of the Feasibility Studies and informed that the valuation sheets of each khashaa

will be distributed to them. In addition, she asked the participants to review the preliminary valuation

results of their khashaa and encouraged them to address their questions to the MAD Experts, if any. She

then explained about the valuation methods.


Ms.D.Munkhoo, Social Worker, UN-HABITAT and Ms.Ariunzaya, AHURP Project Officer

distributed to each participant the color sheet of valuation of their khashaa, which were prepared

and printed out by MAD staff.

It was also informed that the participants were invited again to this meeting due to some small

modifications made to the valuation in Block 1. Those who expressed their disagreement with the

valuation and those who were seeking some inquiries have been reminded by tСО prШУОМt’s sШМТaХ specialists that the presented valuation is not final.

Issues that were raised as per the valuation:

• Houses of some families were over-valued. • Some existing assets were not valued, etc.

Outcome:


D.Munkhoo


Date:

19.09.2017

Time:

17.00

Venue:




Female-7

Organizers : - Ts.Tsogzolmaa, Social Worker - D.Munkhoo, Social Worker - Ariunzaya, MAD

Participants:

Residents of Blocks 1 & 2 of AHURP Site in Khoroo 8, Songinokhairkhan District were re-invited


To share results of the preliminary valuation under AHURP Project and get their

comments


A-131

• It was agreed to review once more the valuation of properties of each household. • Some khashaas of Block 3 are affected by planned road, hence, it was decided to call the

Block 3 residents after resolving this issue.

Those participants, who were happy with the valuation method and size of apartment being

proposed by the project, signed the sheet of agreement confirming that he/she has reviewed and

agreed with the valuation method.

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Ms.Togzolmaa, Social Worker, UN-HABITAT kicked off the meeting and presented in detail to the

participants about the project and its valuation methods. She also briefed the participants that the

project is currently at the stage of the Feasibility Studies and informed that the preliminary valuation

sheets of each khashaa prepared by MAD company will be distributed to them. In addition, she asked the

participants to review the preliminary valuation results of each their property and encouraged them to

address their questions to the MAD Experts, if any. She then explained about the valuation method.


Ms.D.Munkhoo, Social Worker, UN-HABITAT and Ms.Ariunzaya, AHURP Project Officer

distributed to each participant the color sheet of valuation of his/her khashaa, which were

prepared and printed out by MAD staff.

After the meeting two activist community members commented on the valuation of their properties

and got clarifications on some issues they had. During this process MAD expert explained the

valuation method slightly differently than we did before, it was decided to clarify this issue.

Outcomes:

Many issues have been raised regarding the valuation, hence it has been decided to convene

another meeting involving two teams to clarify the open issues.

The participants were encouraged to write down on the document to be kept by the project

implementation agency their comments on omissions of some of their properties in valuation, and

mismatch of squire meters of their khashaa, house and other properties.


D.Munkhoo


Date:

21.09.2017

Time:

17.00

Venue:




Female-5

Organizers : - Ts.Tsogzolmaa, Social Worker - D.Munkhoo, Social Worker - Ariunzaya, MAD

Participants:

Residents of Blocks 3 & 4 of AHURP Site in Khoroo 8, Songinokhairkhan District


To share results of the preliminary valuation under AHURP Project and get their comments


A-133


Ms.Togzolmaa, Social Worker, UN-HABITAT kicked off the meeting and presented in detail about

the project and its valuation methods to the participants. She also briefed the participants that the

project is currently at the stage of the Feasibility Studies and informed that the preliminary valuation

sheets of each khashaa prepared by MAD company will be distributed to them. In addition, she asked the

participants to review the preliminary valuation results of each their khashaa and encouraged them to

address their questions to the MAD Experts, if any. She then explained about the valuation method.

Following the presentation on the project details, the preliminary valuation sheets were distributed

by each household. The participants were advised to write down on the black-white printed

valuation sheet that they agree with the valuation method and sign, if he/she is happy with the

proposed valuation method. Whereas, some of the participants said, they will still reach an

agreement with their family members.

Question & Answer:

Resident: When it will be confirmed that the project will be implemented. How long shall we wait

pending any development in our khashaas?


D.Munkhoo


Date:

11.10.2017

Time:

19.00

Venue:




Female-5

Organizers : - Sh.Enkhtsetseg, UN-HABITAT - Ts.Tsogzolmaa, UN-HABITAT - D.Munkhoo, UN-HABITAT - Arnaud Heckmann, ADB - B.Sarnai, MAD - Ariunzaya, MAD - Emil, MAD

Participants:

Residents of Blocks 1,2,3 & 4 of AHURP Site in Khoroo 8, Songinokhairkhan District, who did not attend the introductory meeting of the valuation


To share results of the preliminary valuation under AHURP Project and get their comments


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Arnoud: The project decision will likely be made in February 2018. We do not expect that any

development will take place till then.

Khashaa #9-21: Initially our properties were valued at 76 million. It was expected that after

incorporation of some omitted properties the value shall be increased, however in contrast it is

now reduced to 74 million. What is reason of that?

Khashaas #9-30 and # 9-30 : We want to get separately itemized valuation, instead of integrated

one.

Outcome:

Several participants expressed that some of their properties are not incorporated in the

valuation and some commented on the mistakes and mismatch in the squire meter of their land

and houses. They were inquiring into this issue.

The participants left on the document to be kept by the project implementer their written

comments on their properties omitted in the valuation and mismatch of squire meter of their

khashaas and houses.

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A SAMPLE OF ASSETS VALUATION REPORT DISTRIBUTED TO PLOT OWNERS

A-143

ATTACHMENT 6 - GRIEVANCE ACTION FORM (SAMPLE)

The Project welcomes complaints, suggestions, queries and comments regarding project implementation. We encourage persons with grievance to provide their name and contact information to enable us to get in touch with you for clarification and feedback. Should you choose to include your personal details but want that information to remain confidential, please inform us by checking box requesting CONFIDENTIALITY, below. Thank you. Request for Confidentiality CATEGORY OF GRIEVANCE Legal Administrative Social Financial Technical Environment Other

Date Place of registration Project site: Name (if not confidential) Home address District/Khoroo Phone number/email: Description of grievance/comment or suggestion:

If includes attachment/note/letter, please tick here: □

FOR OFFICIAL USE ONLY

Registered by: (Name and signature of officer registering grievance)

Mode of communication: Note/Letter E-mail Verbal/Telephonic Reviewed by: (Names/Positions of Official(s) reviewing grievance) Action Taken:

Whether Action Taken Disclosed: □ Yes □ No

Means of Disclosure:

Voluntary Land Swapping Plan · Voluntary Land Swapping Plan June 2018 Mongolia: Ulaanbaatar Green...

Documents

Transcript of Voluntary Land Swapping Plan · Voluntary Land Swapping Plan June 2018 Mongolia: Ulaanbaatar Green...