The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 12/21/2020 | Report No: ESRSC01778 Dec 21, 2020 Page 1 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Mongolia EAST ASIA AND PACIFIC P174007 Project Name Ulaanbaatar Sustainable Urban Transport Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Transport Investment Project 3/24/2021 6/16/2021 Financing Borrower(s) Implementing Agency(ies) Government of Mongolia Municipality of Ulaabaatar Proposed Development Objective To build a comprehensive framework for Ulaanbaatar City to improve transport mobility for all users, and to demonstrate the congestion reduction, road safety and climate resilience improvement on select transport corridors. Public Disclosure Financing (in USD Million) Amount Total Project Cost 70.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The proposed project will help the City of Ulaanbaatar address the urban transport issues such as traffic congestion, air pollution, road crashes, climate vulnerability, financial sustainability and service provision by setting a comprehensive program called Sustainable Urban Transport for Ulaanbaatar (SUTU). The SUTU Program is designed to improve the policy, institutional, and financing framework governing the provision of urban transport services in UB and includes a multi-year investment program. Component 1 includes strategic studies and capacity building activities in key thematic areas to help MUB build effective institution for transport planning and management. Component 2 includes infrastructure and Intelligent Transport System (ITS) investments on the street network towards a functional road hierarchy, and providing public transport and NMT priority as well as safety and climate Dec 21, 2020 Page 2 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) resilience improvements on selected corridors using a complete street concept. Component 3 includes investments in sustainable and integrated public transport sector. D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] Ulaanbaatar, the capital of Mongolia, accounts for more than 40 percent of the country’s three million inhabitants, with the total administrative area now 30 times larger than the original area it was built on. In recent decades, migrants from the countryside are settling in the ger areas, which have become sprawling, unplanned neighborhoods vulnerable to natural disasters such as flash floods, storms surges and severe winter events like dzuds. These areas are peculiar to UB in so far as they are generally lived in by herder communities who have traditionally moved between UB (where they live in winter) and the grazing areas where they return in Spring and Summer. These areas are generally poorly serviced by urban services and increased efforts are now being made to improve the wellbeing of Ger Area residents; including urban mobility. The proposed Sustainable Urban Transport for Ulaanbaatar (SUTU) Program is built on over 6 years of Technical Assistance (TA) works provided by the World Bank, supporting the city to address its multi-faceted urban transport problems. Accordingly, the project will be delivered by Municipality of Ulaanbaatar (MUB) throughout the city. The rationale is to meet some immediate needs, build client relationships and capacities during these early activities including strong project management, E&S capacity and other necessary skills in the MUB and PIU while simultaneously undertaking needed TAs. Public Disclosure To allow flexibility and adaptation, the proposed project is designed in a way to help MUB to identify, prioritize, sequence, prepare and implement activities regardless of funding sources. A range of phased physical works will be implemented based on needed TA activities, consisting of three components: Component 1 includes strategic studies and capacity building activities in several key thematic areas, filling the gaps identified by previous TAs. Component 2 focuses on specific interventions for the selected priority corridors, including three types: Type 1: Repair of priority road sections and installation of additional traffic engineering facilities; Type 2: Reconfiguration of select street cross sections involving civil works; and Type 3: Reconstruction of corridors to improve network connectivity and serving ger areas. These investments will be made based on the outcomes of necessary TAs. In Year 1 and 2 of project implementation, only minor works with limited E&S impacts (Type 1 and Type 2) will be supported; while the larger investments with greater E&S impacts and opportunities (Type 3) will be informed and guided by a range of analytical studies (Type 3) in a later stage. Additionally, Component 2 will also support the deployment of Intelligent Transport Systems (ITS) and the development and operationalization of a parking management system through equipment upgrading. Component 3 aims to help the MUB transform the Public Transportation sector based on previous TA works . Specific investments will be made on bus fleet upgrading, PT transfer stations/terminals (including charging facilities), Integrated bus management, e-ticketing solutions, and on-demand transit service Dec 21, 2020 Page 3 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) Although the project is restricted to the UB urban areas, there are areas with potentially sensitive environmental and social considerations such as along drainage lines and Tuul River as well as social aspects in the Ger areas. It is understood that a number of nationally known parks and protected areas belong officially to UB, but all in the outskirt far away from the urban areas. During project preparation, further survey will be conducted along with the progress of project design to check and confirm if there is any environmentally and socially sensitive receptors within the scope of project areas. D. 2. Borrower’s Institutional Capacity The project is one of the first World Bank IPF operations for the Municipality of Ulaanbaatar (MUB). Its overall capacity is low, and its capacity and systems for the management of E&S risks is similarly constrained. Additionally, because the project includes a wide range of analytical studies which will inform future physical works, the limited capacity with the management of studies including procurement, preparation of Terms of References and the QA/QC systems to ensure adequate outcomes also presents a risk to be further assessed and managed during project preparation. The project will be implemented by the respective implementing agencies of the MUB, i.e. the Road Development Department (RDD), Public Transport Agency (PTA), Transport Police and Traffic Command Center under the supervision and coordination of the Ulaanbaatar Governor’s Office in close cooperation with the relevant government bodies at national and municipal levels. The multitude of the implementation agencies and hence the potential fragmentation and overlap of the roles and responsibilities in the implementation arrangements represent challenges which will need to be carefully considered and managed. Public Disclosure The importance of further assessment of capacity constraints during project design and effective remedies identified is exacerbated by the proposed Framework approach because most of the physical works will be identified during implementation rather than prior to appraisal. Based on recent engagement with the UB urban heating project, overall E&S capacity is considered to be low however a detailed assessment of the implementation capacity of each implementation agency will be conducted during project preparation, and necessary measures will be taken to strengthen the Borrower’s E&S management capacity as needed to support project preparation and implementation. For example, retaining of independent specialists to support the Borrower on the environmental and social assessment for preparing the project; and significant technical capacity strengthening on operation in key areas such as community engagement, livelihood impact assessment and mitigation, driver/pedestrian behavior, community safety considerations, specific environmental management aspects such as construction nuisance and other aspects. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial The Sustainable Urban Transport for Ulaanbaatar (SUTU) program is designed to improve systematic planning, infrastructure investments and management of urban transport system in Ulaanbaatar (UB). The investments are anticipated to bring overall environmental benefits with improved drainage and climate adaption on critical corridors, reduced GHG emission from urban transport and improved safety of urban transport system in the city. Dec 21, 2020 Page 4 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) The environmental risk classification of the Project is proposed to be Substantial at concept stage given the undetermined subproject activities and limited capacity of the Borrower, as elaborated below: a) The project- associated risks and impacts will be largely site-specific and will mainly occur only during construction since works under the project will mainly involve rehabilitation and/or improvements of existing rights of way (ROW) and other small-scaled construction activities (e.g., PT transfer stations/terminals). There will be no new ROW constructed under the project, although there may be upgrading of existing very poor quality (dirt) roads to paved roads. Negative impacts are limited entirely within the existing footprints for type 1&2 investments and largely within existing footprints for type 3 investments (some minor land acquisition may be required for these investments). Nevertheless, road subprojects and their locations are largely undetermined at this point. This will be re-visited and adjusted, where needed, during project preparation as more information becomes available. b) Potential environmental risks and impacts mainly relate to increased erosion from earth works near rivers, felling of trees along the ROW, increased traffic, generation and disposal of waste/spoil, occupational and community health and safety, air pollution and noise emissions from machinery. Sourcing of construction materials will also have risks and impacts from extraction, transport and hauling and site restoration after extraction. These impacts can be managed through implementation of engineering measures and good construction site management. Site-specific risks and impacts of some road improvement works will be screened, assessed and managed in site-specific ESIAs/ESMPs to be prepared during project implementation when the locations of these roads are known and detailed designs are prepared. c) Based on recent engagement of the World Bank with the Municipality of Ulaanbaatar, overall E&S capacity of the borrower is considered to be low. A detailed assessment of the implementation capacity of each implementation agency will be conducted during project preparation, and necessary measures will be taken to strengthen the Borrower’s E&S Public Disclosure management capacity as needed to support project preparation and implementation. Although restricted to the UB urban areas, there are areas with potentially sensitive environmental and social considerations such as along drainage lines and Tuul River as well as social aspects in the Ger areas. The project will produce the subproject-specific assessment reports and management plans identifying the road- and site-specific risks and measures to mitigate them, including, at minimum, risks related to protected areas (habitats and wildlife if any), hydrology, and social context. Budget allocation will be made available through the PMU for these coordinating works, screening, assisting technically, and monitoring of the actual impacts by the Ministry of Environment & Tourism. Additionally, the environmental impact assessment to be conducted for the project will also look at the following environmental risks during preparation: a) technical assistance activities supporting the development of strategies, policies and regulations, which are anticipated to have potential downstream environmental and social implications; b) the need to identify, draw boundaries around and manage associated facilities. Social Risk Rating Substantial Based on the social aspects integrated into the Environmental Risk section above, the social risks are Substantial. In addition to these aspects, there are specific risks associated with land acquisition, business impacts, livelihoods and inclusion/exclusion which contribute to the social risks. Although no land acquisition will be required (or permitted) for Type 1 and Type 2 physical investments, land acquisition and impacts on livelihoods can be expected to be relevant to Type 3 physical investments which are larger in scale. Risks related to personal data and privacy associated with the Intelligent Transport Systems support will be designed out of the project as far as possible and any residual risks assessed and managed using legal provisions and/or the ESMF. Dec 21, 2020 Page 5 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) Notwithstanding that Type 1&2 project activities will not need land acquisition, parts of the road corridor in UB accommodate informal businesses which operate on a permanent or seasonal basis; these and potentially other activities have the potential to be affected by the project and also to be complicated to manage. Type 3 activities are likely to have more significant risks including land acquisition and potential impacts (and benefits) on vulnerable groups. The Substantial risk rating is proposed due to the risks associated with Type 3 activities which will be assessed via the studies proposed during early implementation under Component 1. The project will also (mainly for Type 3 projects) include road improvements in the Ger Areas. These areas are peculiar to UB in so far as they are generally lived in by herder communities who have traditionally moved between UB (where they live in winter) and the grazing areas where they return in Spring and Summer. These areas are generally poorly serviced by urban services and increased efforts are now being made to improve the wellbeing of Ger Area residents; including urban mobility. Works in these areas will be informed by consultation outcomes as well as analytical and assessment works to be undertaken in early implementation under Component 1. The social risk associated with the project are also elevated by the use of the Framework approach and the associated project uncertainties as well as the potentially complicated analytical work which are anticipated to identify, design, assess and justify future - higher impact - investments. This is exacerbated by the limited capacity of MUB. Notwithstanding this, a competent social assessment prepared during project design and included in the ESMF will reduce some of these uncertainties as well as inform ToRs for future analytical work so that critical social risks and opportunities can be managed/optimized. Public Disclosure B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: ESS 1 is relevant. The Environmental and Social (ES) risks fall into three categories: a) those related to analytical work (studies, designs and assessments etc.) under Component 1; b) physical construction/installation works associated with Component 2 & 3. and 3) opportunities to purchase cleaner buses under Component 3 to enhance the project’s environmental benefits through appropriate procurement process. The analytical work under Component 1 aims to help the MUB carry out reforms in the transport infrastructure planning and management, operation, and service provision and will include i) Transport Asset Management Plan (TAMP) and tools for investment prioritization taking into consideration of climate resilience and road safety; ii) Road Traffic Crash Data Platform; iii) Speed Management Plan to identify traffic calming measures; iv) sustainable and resilient urban mobility strategy for Ulaanbaatar (UB); v) policy and institutional framework for private sector participation; vi) Smart integrated Public Transport system towards Mobility-as-a-Service (MaaS). The TA work is far- reaching in terms of scope, sectors and geography and will need to consider (and will have impacts upon) a wide range of related considerations, which will also include further feasibility, design and assessment work for physical investments; some of which will be carried out during the project (Type 2&3 investments in Component 2). The TA work will have the ability to guide and influence transport network investments over a longer term, beyond project closing. The project is designed to create a framework for long term ES consideration. To ensure this opportunity is Dec 21, 2020 Page 6 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) realized, the ESMF will include the outline for Terms of References (ToRs) for the analytical work which define – based on the assessments completed during design – the key ES areas of risk and opportunity to consider in that work to promote strategic thinking and systematic and comprehensive analysis of alternatives, for example, for future development of sustainable and resilient urban mobility strategy for UB. Both Component 2 & 3 will involve civil works, but mainly under Component 2 in relation to corridor-specific infrastructure investments being divided into three types: 1) Repair, 2) Reconfiguration, and 3) reconstruction. For implementation, initial physical works will be limited to repair and reconfiguration works with limited E&S impacts; while analytical studies under Component 1 will inform longer term larger investments which are expected to have greater E&S impacts and opportunities. The project is structured so that lower impact activities can commence early in the project while essential preparatory works are undertaken for larger subsequent physical investments. Type 1 and 2 activities will not require any adjustments to the width of the corridor and are unlikely to require changes within the corridor cross-section. Instead, this work is largely “deferred maintenance” in nature with new pavement, line-marking, traffic signals and guardrails. Type 1 and 2 activities are expected to have minor environmental and social risks and impacts which are largely manageable, reversible and largely occur during construction. Importantly, Type 1 and 2 activities will be completely within the existing cross-section/footprint and will not require any acquisition of land. Potential impacts may include: (i) cutting of trees along the ROW; (ii) occupational and community health & safety within the corridor and along the transport routes of construction supplies, materials and equipment; (iii) exposure of Public Disclosure population along the ROW and transport routes to noise, vibration and air pollution; (iv) siltation and sedimentation of waterways close to the physical works; (v) potential impacts on informal businesses and shops which may be set up informally within the road corridor; (vi) a range of broader social issues such as exclusion of vulnerable people in the project prioritization and decision making process and potential increased risk of GBV due to labor influx. It is noted however that due to the nature of project, the labor-force will be small and all activities are located in the UB city areas so no construction camps etc. will be required, thus risks deriving from labor influx are expected to be moderate. During the operation & maintenance phase, impacts to the economy and societal well-being from improved roads and connectivity and road safety are expected to be significantly positive. Some TA studies proposed under the project will also provide supports to the sustainable operation of improved corridors. It is proposed that an ESMF and RPF be prepared by the client prior to appraisal to address the overall project activities (physical and analytical) against requirements of the ESF and the ESSs. This ESMF and RPF will include social and environmental assessments at a framework level for Type 1 or Type 2 projects which are anticipated to be commenced in Year 1 or 2 of the project including sub-project criteria and exclusions (e.g. No land acquisition) for these early works. The instruments will establish specific E&S management approaches for each type of physical investment over the medium to long term as well as document critical matters for consideration in the range of analytical work under Component 1. In addition, a generic ESMP will be developed as part of the ESMF to provide guidance on E&S mitigation strategies for road repair, maintenance and reconstruction works proposed under the project. If work sites are identified prior to appraisal, these will be integrated into the generic ESMP. Criteria established during project design will be documented in the ESMF and RPF and used to identify which sub- projects can be funded by the project. Importantly, they will also establish criteria for when sub-projects may be Dec 21, 2020 Page 7 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) considered to be “Associated Facilities” such as road sections or other investments which would not be viable in the absence of the Bank supported project. Approaches and requirements for management of E&S risks of Associated Facilities will established. For chosen sites/corridors, subsequent ESIAs/ESMPs will be prepared, disclosed, reviewed by the Bank and incorporated into bidding documentation for these activities. At the PCN stage, the GBV risk has been screened. According to the screening, the GBV risk of the project is “moderate”. A GBV action plan will be developed accordingly. The project will ensure early, continuous and inclusive stakeholder engagement. The Bank task team also did an initial screening to assess if there will be potential associated facilities based on the criteria of an associated facility defined in the ESF. Although no associated facilities have been identified, criteria (including specific provisions specifying that the ESF will apply to all project activities and associated facilities, regardless of funding sources) will be included in the project ESMF to specifically guide the client and the Bank in identification of future sub-projects. This will be further confirmed during the project preparation and continuously assessed during implementation. Areas where “Use of Borrower Framework” is being considered: As part of the Bank’s due diligence, the instruments will examine the national legislation and will, throughout the project preparation and implementation, support the Client in improving ES practice and compliance with the ESSs. At this stage, the Bank and the Borrower, however, do not consider the use of the borrower environmental and social framework as defined in ESF for the purpose of the project. ESS10 Stakeholder Engagement and Information Disclosure This project is ambitious and seeks to provide a long-term strategy while also addressing some immediate physical Public Disclosure investment requirements. Community and stakeholder engagement addressing aspects directly relevant to the project within a broader engagement strategy developed by MUB (outside the scope of this project) will be key during project design and implementation. Meaningful stakeholder engagement is vital to ensure inclusive participation of those who may be adversely impacted, promote stakeholder buy-in, manage public expectations and navigate political-economy situations. Such engagement will need to address key stakeholders across the project areas of influence to understand various perspectives of impacts and benefits, and how adverse impacts will be experienced and how they may be mitigated and similarly, how benefits can be enhanced. Stakeholder engagement will need to start as early as feasible during project preparation to enable a coherent strategy for environmental and social management. This includes relevant engagements for the ESMF process, and will need to evolve during implementation, be adaptable to changes and emerging risks and involve project affected parties including business owners, workers, communities, non-Government organizations (NGOs), media, the wider public and business associations, etc. Prior to appraisal a Stakeholder Engagement Plan (SEP) will be prepared, guiding necessary engagement and consultation activities in line with ESS10 relating specifically to activities to be supported by this project. The SEP will include consultations on potential cumulative impact of other projects or investments in the project area to ensure the project activities can be understood within the broader urban context. Particular attention will be paid to vulnerable groups (Ger residents, transient residents and businesses, elderly, disabled and ethnic minority groups) and those who can easily be excluded from engagement processes (identified during the social assessment and stakeholder identification process) to ensure they play a meaningful role in the Dec 21, 2020 Page 8 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) project. Adequate grievance mechanisms to address concerns during project phases will be also designed as part of SEP. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions To ensure the health and safety of workers during the construction and maintenance of project roads, the contractors will be required to prepare and implement Occupational Health & Safety Plan (OHSP) following the World Bank Group Environment, Health and Safety (EHS) Guidelines and the project Environmental and Social Management Framework (ESMF). The OHSP will also include procedures on incident investigation and reporting, recording and reporting of non-compliance, emergency preparedness and response procedures, and continuous worker training/awareness. The OHSPs prepared by contractors will cleared, approved and monitored by the PMU’s Environmental and Social (E&S) specialist in coordination with the PIUs and WB E&S Specialists. Given the urban nature of all activities (and therefore the relatively small labor force, high level of observation and public nature of the worksites and likely accommodation arrangements of workers in an urban context), other risks such as those related to discrimination, contractual arrangements and child labor are considered to be lower than in other contexts. Notwithstanding this, the Labor Management Procedure (LMP) including a separate grievance redress mechanism (GRM) to be prepared prior to appraisal will establish minimum requirements to manage these risks during project delivery. Public Disclosure ESS3 Resource Efficiency and Pollution Prevention and Management ESS3 is relevant. Green design, including efficient reource use and effective waste management, is an integral part of the project and will be assessed and reviewed during the development of relevant studies and ESMF, necessary mitigation strategies will be proposed in the ESMF to secure and enhance the project’s performance on resource efficiency improvement and pollution prevention and management. Upon information availability, more detailed analysis will become available at the later stages of project preparation and by appraisal. Targeting the improvements of climate resilience in Ulaanbaatar’s transport system, the project was designed based on an in-depth climate and disaster risk screening to identify the major climate risks affecting the project, namely urban flooding, storm surges and severe winter events (dzuds). The project design will consider climate adaptation and resilience throughout its life cycle, including planning, engineering, operations, contingency planning, and overall capacity building, as emphasized by the recent Transport Global Practice (GP) World Bank Guidance Note. The infrastructure investments on critical corridors (Component 2.1) will be selected by applying prioritization tools taking into consideration of climate risks, and the improvements of public transport, traffic and parking management (including the choice of low-emission vehicle/fleet under Component 3) is expected to reduce GHG emissions from urban transport. Following ESS3 requirements, the project’s gross GHG emission will be estimated based on the available information by project appraisal. In addition, the approach to climate change adaption will also be developed in the generic ESMP to inform efficient storm-water and wastewater management during design and construction. Dec 21, 2020 Page 9 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) ESS4 Community Health and Safety ESS4 is relevant. The project will include strategic studies with road safety considerations to design or implement targeted project interventions. Appropriate risk assessment and mitigation measures will be incorporated into the design and ESMF requirements, including: (i) street layout that fosters safer vehicle speeds and pedestrian movement; (ii) traffic calming measures that reduce vehicle speeds or allow safer crossings; (iii) safe pedestrian and cyclist facilities and access to public spaces; and (v) safe access to transport corridors, stations, and stops. This work will be undertaken in close consultation with key stakeholders. Because the Transport Police are responsible for attending any traffic or safety incidences which occur and they have substantial data and experience which will help improve project outcomes, they will be an important stakeholder. The project areas are considered a low security context, security risks are similarly considered to be low. Basic security such as fencing, sign-posting, lighting, basic security awareness training, and a security guard may be all that is needed to manage security risks at project locations. In the unlikely event that the context changes, external security experts will be engaged to prepare more comprehensive and detailed risk assessments and management plans. The construction activities under the project (including repair, upgrading and reconstruction of selected corridors) may pose potential safety concerns for the inhabitants within the vicinity of works given the densely populated nature of UB and the generation of higher volumes of traffic during construction. The traffic management plan will be developed by the client following the ESS4 requirements to identify and implement all legal and best practice in Public Disclosure respect of traffic management associated with project construction, as part of the ESIAs/ESMPs developed for respective specific infrastructure investment. Changes in baseline environmental conditions may be experienced by the local communities in terms of increased nuisance levels from emission of dust, contamination of surface water or ground water from soil erosion and runoff, and noise from construction activities. The potential for labor influx is considered low, as is the likely risk of gender based violence (GBV) given the generally small scale works and the urban setting and lack of construction camps in remote areas etc, however this will be further assessed during project design. If found necessary, a Labor Influx Management plan and or GBV Action Plan will be prepared by the client and incorporated into the ESIAs/ESMPs developed for respective specific infrastructure investment subproject as needed when they are determined during project implementation. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement To assess land and livelihood related risks, a resettlement policy framework (RPF) will be prepared in accordance with ESS5 prior to appraisal which sets out the criteria for future assessments for each type of proposed investment and which also sets key inclusions and criteria for future analytical works under Component 1 with potential downstream impacts. No land acquisition will be required (or permitted) for Type 1 and Type 2 physical investments however land acquisition and impacts on livelihoods can be expected to be relevant to Type 3 physical investments which are larger in scale. Land tenure and use as well as the likely extent of any future acquisition will be integrated into the studies being completed under Component 1. Accordingly, a proportional approach is proposed which starts with small physical works with no land impacts and only proceeding to larger projects as adequate assessments have been Dec 21, 2020 Page 10 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) undertaken and integrated into the design and delivery systems for the project over time. Notwithstanding that Type 1 projects will not need land acquisition, parts of the road corridor in UB accommodate informal businesses which operate on a permanent or seasonal basis; these and potentially other activities whether formal or informal will be incorporated into the social assessment and RPF. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This standard is deemed relevant considering the uncertainties around the selection of infrastructure investments. Although restricted to the UB urban areas, there are areas with potentially sensitive environmental considerations such as along drainage lines and Tuul River. The project’s potential impacts on local natural habitats and ecosystem services will assessed during the preparation of project ESMF with necessary mitigation measures proposed. The screening criteria will be established to avoid any negative impacts on critical/ecologically important habitats in the project-affected areas in the selection of corridors to be invested by the project. Also, the project will produce subproject-specific assessment reports and management plans identifying the road- and site-specific risks and measures to mitigate them, including, at minimum, risks related to protected areas (habitats and wildlife if any). Budget allocation will be made available through the PMU for these coordinating works, screening, assisting technically, and monitoring of the actual impacts by the Ministry of Environment & Tourism. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities ESS7 is relevant considering that Ethnic Minority communities do live in the Ger Areas however these communities Public Disclosure do not undertake their traditional livelihoods (herding) in the urban context and are largely mainstreamed into the urban economy. Application of ESS7 will be further checked based on screening of project areas of influence during project preparation. Notwithstanding this, Ethnic Minority communities will be a central focus of during the preparation of the social assessment to be included in the ESMF as well as the community consultation process to ensure their particular development needs (and those of other vulnerable groups) are designed into the project. Though considered unlikely, if these groups are present and/or will be affected by project activities, there may be a need to prepare an Ethnic Minority Development Plan (EMDP) during implementation which would define adequate engagement measures, including consultation and engagement activities as guided by the SEP and securing Free, Prior and Informed Consent (FPIC) in the unlikely event of adverse impacts requiring FPIC as contemplated in the ESS7. If required, such an EMDP would be a standalone instrument and/or part of subsequent ESMPs, depending on the nature and scale of potential impacts. Acknowledging that some of the activities, including improved and new roads in Ger areas will only be determined during project implementation, a framework approach (Ethnic Minorities Planning Framework) may be warranted, depending on the findings of the social assessment undertaken during design. ESS8 Cultural Heritage ESS8 is relevant due to civil works associated with project activities. A chance-find-procedure will be established as part of the project’s ESMP. Relevant analyses whether there are potential impacts on intangible cultural heritage will be incorporated as part of the ESMF. Dec 21, 2020 Page 11 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) ESS9 Financial Intermediaries ESS9 is considered not relevant as the project does not involve any financial intermediation activities. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners As part of the Bank’s due diligence, the instruments will examine the national legislation and will, throughout the project preparation and implementation, support the Client in improving ES practice and compliance with the ESSs. At this stage, the Bank and the Borrower, however, do not consider the use of the borrower environmental and social framework as defined in ESF for the purpose of the project. Public Disclosure B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: The Borrower to develop and agree with the World Bank an ESCP; The Borrower to develop an Environmental and Social Management Framework (ESMF) consistent with the ESF, including a timebound E&S capacity building plan and a generic Environmental and Social Management Plan; The Borrower to develop a Resettlement Policy Framework (RPF) consistent with the ESS 5; The Borrower to develop a Stakeholder Engagement Plan (SEP) consistent with the ESS10; The Borrower to disclose the ESCP, ESMF, RPF and SEP as early as possible and before Appraisal. Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): The Borrower to implement E&S capacity building plan; The Borrower to carry out E&S risk screening for potential subprojects following the ESMF requirements; The subproject PIUs to develop and implement needed E&S assessment documents following the ESMF requirements; The Borrower and subproject PIUs to implement RPF; The Borrower and subproject PIUs to implement SEP and GRMs; The Borrower to report to the World Bank and agree on measures and actions if a subproject risk profiles increase significantly at any stage during the lifecycle of the project; The Borrower to submit semi-annual Environmental and Social Monitoring Reports. Dec 21, 2020 Page 12 of 13 The World Bank Ulaanbaatar Sustainable Urban Transport Project (P174007) The preparation of TORs, Feasibility Studies, Detailed Engineering Design (DED), Environmental and Social Impact Assessment (ESIA) including land use due diligence, Resettlement Action Plan (RAP) and other documents with environmental and social implications under the project to be reviewed by the Bank to meet ESF requirements. C. Timing Tentative target date for preparing the Appraisal Stage ESRS 10-Feb-2021 IV. CONTACT POINTS World Bank Contact: Yang Chen Title: Senior Transport Specialist Telephone No: +1-202-458-8618 Email: ychen3@worldbank.org Contact: Jin Wang Title: Transport Specialist Telephone No: 5788+7734 / 86-10-5861 7734 Email: jwang22@worldbank.org Borrower/Client/Recipient Borrower: Government of Mongolia Public Disclosure Implementing Agency(ies) Implementing Agency: Municipality of Ulaabaatar V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Yang Chen, Jin Wang Practice Manager (ENR/Social) Susan S. Shen Recommended on 18-Dec-2020 at 07:56:21 GMT-05:00 Safeguards Advisor ESSA Nina Chee (SAESSA) Cleared on 21-Dec-2020 at 12:35:40 GMT-05:00 Dec 21, 2020 Page 13 of 13