ULAANBAATAR HEATING SECTOR IMPROVEMENT PROJECT (P170676) DRAFT STAKEHOLDER ENGAGEMENT PLAN December 2019 1. INTRODUCTION This document is the Stakeholder Engagement Plan (SEP) for the proposed Ulaanbaatar Heating Sector Improvement Project (hereafter ‘the project’) drafted in December 2019. The SEP is disclosed on the Ministry of Energy (MoE) website (http://energy.gov.mn/c/1058). The World Bank (hereafter ‘the Bank’) is proposing to provide $41million, an International Development Association credit to the Mongolian Ministry of Finance (the borrower) for the project. The implementing agency for the project is the Mongolian Ministry of Energy (MoE), who will work closely together with the Ulaanbaatar District Heating Company (UBDHC) responsible for heating transmission in the City. The SEP has been prepared through workshops with internal project stakeholders and incorporating inputs from those directly affected, key stakeholders and urban development agencies consulted during early project preparation. The objective of this SEP is to identify project stakeholders, the methods for information distribution and consultation during the life of the project as well as the approach to grievance redress. A “Stakeholder� refers to individuals or groups who: (a) are affected or likely to be affected by the project ( project-affected parties); and (b) may have an interest in the project (other interested parties). 1.1 PROJECT DESCRIPTION The Project Development Objective is to enable access to and improve efficiency of the district heating (DH) network in selected project areas. The project will be located in the capital city Ulaanbaatar. The project has two components as described below. Component 1: Investments in rehabilitation and expansion of District Heating network. This Component will support the preparation and implementation of a priority investment program for the DH system operated by UBDHC, it has three infrastructure related subcomponents as follows. Subcomponent 1.1. Rehabilitation and upgrading of the DH network in selected urban areas. The subcomponent will contain (i) Replacement of existing DN800 pipeline with DN1000 known as “5a� trench; (ii) Replacement of existing 2xDN400+1xDN600 with new DN800 pipeline to north known as “3g�trench; and (iii) Replacement of existing DN250 -350 pipelines of trenches “2a�, “4a� and “4b� with DN400-500; and (iv) Replacement of other pipelines to be identified and justified as priority. A total of 4.2km of pipeline (trench length) will be rehabilitated. Subcomponent 1.2. Expansion of the District Heating network into select ger area. The subcomponent is consequential to the Subcomponent 1.1 by extending the transmission pipelines using modern pre-insulated pipes into a near-urban ger area that are undergoing large-scale redevelopment, to provide better access to services for ger areas residents and to combat high pollution levels. Subcomponent 1.3. Modernization of the District Heating network. This subcomponent will support the modernization of UBDHC’s DH pumping stations, including the replacement of selected pumps with smart pumps and adding booster pump/heat exchanger stations to locations, where the customer buildings are elevated high from the main network level to connect more customers. Component 2: Capacity strengthening and project implementation support (estimated US$1 million). This Subcomponent will finance activities aimed at support policy and institutional reforms in the medium to long term and strengthening UBDHC’ technical, operational, fiduciary, customer orientation and corporate resource management functions, and ensuring effective Project implementation. In terms of infrastructure locations, prior to project appraisal (anticipated in January 2020) only the location of sub- component 1.1 (i) and (ii) have been confirmed. These sub-components will rehabilitate two heating transmission pipelines (5a (2.8km) and 3g (1.4km)) in central Ulaanbaatar, from Central Heating Plan 3 (CHP3) towards the centre of the city, as shown in figure 1. Figure 1 Subcomponent 1.1 DH Transmission Refurbishment Location in Ulaanbaatar (4.2km) Sub-component 1.1 will include burying the transmission line (currently above ground or raised) in many locations (see Figure 2). The transmission line has a 10 meter (5 meter either side) safety Right of Way (ROW), a small number of shop structures have been illegally built in this ROW. The owners are directly affected stakeholders discussed herein, please also refer to the project Social Impact Assessment (SIA) and Resettlement Plan for more details about these structures. The location for sub-component 1.2 will be in a near urban-ger area, however the exact location and alignment is not yet confirmed. Figure 2 Subcomponent 1.1. District Heating Transmission Line For Refurbishment Safety Right of Way DH Transmission Line for Refurbishment Structures in the prohibited right of way The World Bank is proposing to provide financing for the project and as such environmental and social assessments and other planning documentation is needed for the project to meet the requirements of the World Ba nk’s Environmental and Social Framework (ESF) effective October 1, 2018. The various assessments for the project include: o Stakeholder Engagement Plan (SEP, all project components). This document, which has been prepared for the whole project, including components prepared prior to appraisal and those developed after appraisal; given the majority of the stakeholders are similar and to provide a whole of project approach to consultation activities. o Environmental Social Management Plan (ESMP, sub-component 1.1) for the heating pipeline refurbishment , 4.2 km alignment, this plan outlines the mitigation and management measures for this component. o Labor Management Procure (LMP, all project components) this document including a labor grievance redress mechanism, outlines labor requirements for the project. o Social Impact Assessment (SIA, all project components), assess the potential social impacts arising from project activities, as well as social criteria and statistics to inform the selection of the new heating pipeline location. o Resettlement Plan (RP, sub-component 1.1). As mentioned above a small number of shop structures and assets in the refurbishment right of way will be affected by project construction. The RP outlines the process and compensation that will be followed by the project. o Environmental and Social Management Frameworks. (ESMF, sub-component 1.2) the location and alignment for Sub- component 1.2 (heating expansion in near-urban ger area) has not been defined at the time of project appraisal. The ESMF guides environmental and social assessment requirements and development of management and mitigation measures once the alignment has been further confirmed. o Resettlement Policy Framework (RPF, sub-component 1.2). The location and alignment for Sub-component 1.2 (heating expansion in near-urban ger area) has not been defined at the time of project appraisal. Construction of the pipeline in existing road right of way could have permanent or temporary impacts on shops, structures or fixed assets. The RPF guides the assessment and compensation requirements for the project, it is contained as an Annex to the above mentioned ESMF. Table 1. Environmental and Social Documentation for the Project Document SEP ESMP RP LMP SIA ESMF RPF Component 1 Sub-component 1.1 ✓ ✓ Subcomponent 1.2 ✓ ✓ ✓ ✓ ✓ Subcomponent 1.3 Component 2 Mongolian regulatory requirements for consultation and disclosure are also considered herein. The Law on Urban Development (2015, Article 17 and 18) states participatory planning shall be adopted in urban development planning and consultation with citizens shall be conducted in the course of implementation of urban planning. Decisions pertinent to urban development shall be disseminated and disclosed to the public in timely manner. Utility disruptions are required to be disclosed to residents and entities 24 hours prior to disruptions. The World Bank’s ESF, includes Environmental and Social Standard (ESS) 10, “Stakeholder Engagement and Information Disclosure�, which recognizes “the importance of open and transparent engagement between the Borrower and project stakeholders as an essential element of good international practice�. Borrowers are required to develop a Stakeholder Engagement Plan (SEP) proportionate to the nature and scale of the project and its potential risks and impacts (paragraph 13). Stakeholders have to be identified and the SEP has to be disclosed for public review and comment as early as possible, before the project is appraised by the World Bank. ESS10 also requires the development and implementation of a grievance redress mechanism (GRM). The national regulatory requirements as well as those under the ESF are incorporated herein. 2. STAKEHOLDER IDENTIFICATION, ANALYSIS & PROGRAM An initial list of project stakeholders, their interests and the preferred methods to engage with each group was developed by internal project stakeholders in October 2019; inputs from project preparation consultation activities with key informants; as well as meetings with project affected households was also incorporated. A list of stakeholders consulted in the initial project scoping activities is presented in Annex 1. The program for stakeholder engagement throughout the project life for all project components (including those prepared after appraisal) is provided in Table 2. Table 2. STAKEHOLDER ENGAGEMENT PROGRAM Project Project Timing Remarks Responsible Stakeholder/s Interests Communication Methods Component Stage 1.1 1.2 1.3 Pre Con Ops Shopkeepers in right of way Relocation support Regular One-to-one Oct 2019-Dec 2020 Working group, (ROW) meetings with households Social specialist at PMO once engaged. City Taxi building owner & Structure compensation Regular One-to-one Until start of construction Working Group Tumur Beton guardhouse meetings with owners Rep. business owner in ROW Altai Khothon Apartments - Construction Activities One-to-one meeting with Initial meeting, update 1 month Working Group Car Park owner in ROW owner prior to construction Rep. Playground owner at Refurbishment support One-to-one meetings with Until construction section Task Team, Kindergarten in ROW owners completed Working Group Rep. Local Residents in Khan-Ull Traffic disruption, Construction Notice Board, 2 weeks prior to start of PMO & UBHDC Khooroo & Bayangol pedestrian access, utility letters to residents on utility construction (Letters sent Districts disruption disruption, Through Customer service UBDHC’s Facebook page centers who notify and website, TV, radio, residents directly) newspaper, UB municipal office website (www.ulaanabaatar.mn) 30 manufacturing Any water disruption One-to-one meetings on Project fact meeting; Pre- PMO & CHP3 (as businesses in subcomponent could significantly affect project & utility disruption construction meeting; and prior to they are CHP3 1.1 alignment business operations management, notification utility disruption meeting direct client) letters Khoroo Governors Khan-ul, Project, Traffic disruption, Project Update meetings Initial project fact meeting, then PMO & UBHDC Bayangol for refurbishment pedestrian access, utility Khoroo Governors/staff one month prior to construction/ as area disruption needed UB City (Mayors Office); Urban Planning Regular meetings with key Regularly, prior to and during PMO & UBHDC urban planning and development; drawing staff prior to and during construction (2x). for traffic environment departments sign-off; utility construction disruption disruptions, soil waste disposal Capital city traffic Traffic Management Regular meetings with key Met with in 2017 and signed off on PMO & UBHDC development agency (Under staff for coordination initial plans for refurbishment. UB city municipal office) Additional project update/fact meeting, 2 months pre-cons, then every week during construction Housing & Public Utilities of Distribution to end users Information disbursement; After construction meeting at site; PMO Ulaanbaatar City meeting at site; letters notices/letters as needed (OSNAUG) Project Project Timing Remarks Responsible Stakeholder/s Interests Communication Methods Component Stage 1.1 1.2 1.3 Pre Con Ops Central Heating Plant 3 Technical experts, client Frequently meeting with Initial project meeting (Nov, 2019, PMO (CHP3) utility disruption PMO prior to and during frequently meeting management construction (manufacturing comps.) Mongolian Railways (state Management of pipeline Meetings with key staff for Project update/fact meeting, 2 PMO owned company) Railway crossing (1) coordination months pre-cons, then as needed during construction during construction Ministry of Environment & Permitting, Construction, Regular meetings with key Initial project meeting Nov 2019, as PMO Tourism (MET) environmental staff needed prior to construction assessment and management, asbestos UB Traffic Management Traffic management and Regular meetings with key Initial meeting December 2019 and PMO Department road rehabilitation staff as required during construction General Agency for Asbestos management Project update meetings Consultation on Construction PMO Specialized Inspection and labour hygiene Asbestos Management Plan Water supply authority of Technical approval of Inform of any water Met with in 2017 and signed off on PMO & UBDHC Ulaanbaatar, UBEDN, drawings; Urban planning disruption issues; project key initial drawings for refurbishment. Information Communication priorities for UB city for fact update Project initial fact meeting for Network of Mongolia ger district heating stakeholders; as needed in expansion construction. Governors of Near Urban Ger area district heating Project announcements, During selection of expansion PMO Ger Area Khoroos [i.e. expansion locations and letters, website, media location; during technical drawing Sukhbaatar, Chingeltei] for development. releases, planning meetings approvals; prior to construction and expansion Sukhbaatar and with identified districts during construction. Chingeltei districst as all the pipelines are interconnected and the refurbishment will positively affect the capacity of pipelines. Residents & businesses of Traffic disruption, Public meeting, Construction Public meeting once khoroo PMO & UBDHC, near Urban Ger Area Khoroo pedestrian access, utility Notice Board, letters to location more defined; Notice OSNAAUG identified for expansion disruption residents on utility disruption, boards 2 weeks prior to start of UBDHC’ facebook page, construction, letters to residents at website least; newspaper; Official letters to (http://ubds.energy.mn/), business UBDHC’s Facebook page and website, TV, radio, newspaper, UB municipal office website (www.ulaanabaatar.mn) Project Project Timing Remarks Responsible Stakeholder/s Interests Communication Methods Component Stage 1.1 1.2 1.3 Pre Con Ops Owners of structures (i.e. Relocation support, One-to-one meetings with Regularly once identified Social Specialist shops) in the ger area project construction owners @ PMO expansion right of way timeline (along roads) if any Institute of Archaeology of Construction related Meeting/s to inform and Initial project fact meeting PMO Mongolian Academy of chance finds of update MAS on the project Science (MAS) archaeology items Ministry of Education, Archaeology for ger area Official letter to inform and Initial project fact PMO Culture Science and Sports expansion invite to project initial (MECSS) meeting Energy Development Centre Technical inspections, Official letter to inform and Initial project fact meeting PMO & UBDHC ensuring technical invite to project initial drawings consistent with meeting construction National NGOs Environmental Project announcements, Per table below PMO Management and urban website, media releases, development meetings as needed National Media Project and urban Project announcements, Per table below. PMO development website, media releases Donor and multilateral Project locations and UB Project announcements, Meetings during project PMO & Task agencies urban development website, media releases, preparation, as needed thereafter Team meetings as needed Elected Officials Expansion and Project announcements, Per table PMO refurbishment website, media releases improvements 2.1 Strategy for Vulnerable Vulnerable Groups are persons who may be disproportionately impacted or further disadvantaged by the project(s) as compared with any other groups due to their vulnerable status, and that may require special engagement efforts to ensure their equal representation in the consultation and decision-making process associated with the project(s). Vulnerable status may stem from an individual’s or group’s race, national, ethnic or social origin, color, gender, language, religion, politica l or other opinion, property, age, culture, literacy, sickness, physical or mental disability, poverty or economic disadvantage, and dependence on unique natural resources. Some of the households directly affected by Sub-component 1.1 are defined as vulnerable (per the RP), as such additional support will be provided through the project resettlement plan. The same shall be extended for sub-component 1.2 once the alignment is confirmed and impacted households (if any) are identified. Each of the affected households (shop owners for subcomponent 1.1) have been met with (one-on-one) during the early stages of project preparation (Oct/Nov 2019) and will continue to be engaged in such a manner as provided for in the resettlement plan. Their inputs on preferred methods of support were discussed during these meetings. Table 1, outlines the program for engaging residents for both subcomponents prior to utility, traffic and pedestrian disruptions associated with the construction periods. Residents will benefit equally from the project interventions (improved supply and capacity within the network), project interventions will not in any way exclude beneficiaries. Within the Project Area of Influence, vulnerable groups may include and are not limited to the following: Elderly people (over 55 years); Persons with disabilities and their careers; Low-income families dependent on state support; Women-headed households or single mothers with underage children; the non-titled. For sub-component 1.2, a public consultation meeting will be held once the location is more clearly defined, this will assist in incorporating community views into the design, especially in management of temporary disruptions and any additional measures for vulnerable members of the community that need to be addressed (i.e. access to water wells). The PMO will ensure that there is no prejudice or discrimination toward project-affected individuals or communities, including other interested parties. Particular consideration will continue to be given to the disadvantaged and vulnerable groups during the life of the project, especially where adverse impacts may arise, or development benefits are to be shared. 2.2 Information Disclosure The Ulaanbaatar District Heating Company (UBDHC) website, is to have a special project page http://ubds.energy.mn/ dedicated to disclosing project documents, including those on environmental and social safeguards. This will begin with disclosure of this draft SEP early in the project preparation. The draft ESMP, ESMF (with RPF annex); Social Impact Assessment, Resettlement Plan and Labor Management Procedure will also be disclosed on this site. Any feedback on the draft documents will be incorporated and updated documents re-disclosed. Besides the draft disclosure documents (and the final documents in future), project brochures and updates will also be posted. In addition, the site will provide details about the Grievance Redress Mechanism and contact details for the PMO. The PMO will update and maintain the website regularly, at least quarterly. Distribution of the disclosure materials by making them available at venues and locations frequented by the community and places to which public have unhindered access. Free printed copies of the SEP, ESMF, ESMP, LMP and RP in Mongolian are being made accessible for the general public at the UBDHC Office, Ministry of Energy Office. An initial stakeholder fact meeting will be held after loan approval (per Table 2), as well as press releases will be undertaken. Construction Notice Board, letters to residents, website updates, newspaper advertisement on disruptions will be undertaken during project implementation as outlined in Table 2. 3. MONITORING AND REPORTING The safeguards specialist appointed to the PMO will be responsible for monitoring and reporting on stakeholder engagement activities. Stakeholder engagement activities will be displayed on the UB District Heating Company website, with a special project page http://ubds.energy.mn/ dedicated to disclosing project documents and reporting stakeholder consultation activities. In addition see Annex 1, for a list of consultation activities undertaken during project preparation prior to appraisal. The PMO will continue to conduct stake holder engagement in accordance with this SEP, and will build upon the channels of communication and engagement already established with stakeholders . In particular, the PMO will seek feedback from stakeholders on the environmental and social performance of the project, and the implementation of the mitigation measures in the Environmental and Social Commitment Plan. Consultation and disclosure activities will also be summarised and reported in semi-annual project reports to the world bank. A number of Key Performance Indicators (KPIs) will also be monitored by the PMO on a regular basis, including the following parameters: o Number of consultation meetings and other public discussions/forums conducted within a reporting period (e.g. monthly, quarterly, or annually); o Frequency of public engagement activities; o -Number of public grievances received within a reporting period (e.g. monthly, quarterly, or annually) and number of those resolved within the prescribed timeline; o -Type of public grievances received; and o Number of press materials published/broadcasted in the national media. 4. RESOURCES & RESPONSIBILITIES FOR STAKEHOLDER ACTIVITIES The Project Management Office (PMO) will be established within the Ministry of Energy (MOE) headed by a Project Director. The MOE will provide ministerial oversight for project activities including project preparation, supervision, and M&E. The PMO will be responsible for the procurement of the goods, works, and services; undertaking of FM including disbursement processing and project audit; public relations; consolidation of environmental and social safeguards measures in compliance with the World Bank’s requirements; and preparation of periodical reports and their submission to the World Bank. The PMO will liaise with UBDHC, and make sure that UBDHC actively participate in the project implementation stages, particularly by providing technical inputs. Under the PMO’s oversight, UBDHC will participate, among others, in the definition of technical specifications, tender evaluations, and construction supervision. UBDHC will assign, and if necessary hire, a technical support team that will ensure implementation of the investment activities in their respective areas. Funds for implementing stakeholder engagement activities have been allocated under the project. The PMO will include safeguards specialists who will be responsible for implementing the activities of this stakeholder engagement plan. At this stage of project preparation questions can be directed to the Ministry of Energy, Entuya Y. Senior Specialist for District Heating. Phone: 70043479, quires can also be directed to info@energy.gov.mn The MoE will arrange necessary training associated with the implementation of this SEP that will be provided to the members of staff who, due to their professional duties, may be involved in interactions with the external public, as well as to the senior management. Specialized training will also be provided to the staff appointed to deal with stakeholder grievances as per the project GRM. Project workers will also receive necessary instructions for the labour GRM under the Labour Management Procedure. 5. GRIEVANCE REDRESS MECHANISM UBDHC have well-established grievance redress mechanism (GRM) for the public. Grievances are received through direct communication, registered via a 24/7 hot-line, email and website and discussed at the Companies' meetings. They are in the process of making their mechanism ISO compliant. The mechanism seeks to resolve technical issues soon as possible depending on the volume of the issue from the receipt of notification for UBDHC. For the project, complaints may arise, especially during the construction period, as residents and businesses experience traffic, pedestrian and utility disruptions. As such, the existing UBDHC GRM will be adapted for project related complaints to ensure they are addressed quickly. This is describes as follows and displayed in figure 3. Level 1: Two phone numbers, the PMO and the 24/7 call centres will be advertised for project related complaints (through construction notice board, GRM brochure, letters to residents and facebook). Complainant’s can also give complaints in writing and in person as per UBDHC’s existing mechanism. Complaints from the call center will be issued directly to the PMO. If received out of working hours, the complaint will be issued to the PMO the next day. The PMO will then work with internal departments and /or the construction contractor to resolve the issue quickly, but in no less than 7 days will either resolve the issue or inform the complainant that their complaint has been forwarded to the 2nd level of the GRM. Level 2 If the PMO cannot resolve the issue within 7 days, then it will be forwarded to the Ministry of Energy, Director General of Policy Coordination Department, who will review the complainant, such that it can be resolved within 15 days. If mediation is unsuccessful, or, at any time affected parties can file written or verbal grievances through the Mongolian Court system, in accordance with Mongolian laws and procedures. Figure 3 Project Grievance Redress Mechanism LEVEL 1 (7 Days) LEVEL 2 (15 Days) CONTRACTOR INTERNAL DEPTs MoE DIRECTOR If unresolved in 7 days GENERAL POLICY PMO COORDINATION DEPT. COMPLAINANT 24/7 UBDHC hotline 7004-7005 The PMO will maintain a grievance log of project related grievances, a grievance log is provided below which will be used and adapted as necessary for the project by the PMO. Grievance Log Template PMO Grievance Log # Open Date Person/s Grievance in 1st level Resolution & 2nd level Assigned or Received Summary Date closed resolution & date PMO Staff Closed closed 1 Open 2 Closed 3 Closed At any time, if the project grievance redress mechanism is considered inadequate for addressing concerns then the World Bank Grievance Redress Service and the World Bank’s Inspection Panel are avenues for appeal. Information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), can be found at http://www.worldbank.org/GRS. Information on how to submit complaints to the World Bank Inspection Panel, can be found at www.inspectionpanel.org. Annex 1 Scoping Consultations Given the mostly temporary impacts associated with the project, consultation during project preparation focussed on engaging key stakeholders with regards to the project design, inputs on urban development priorities, disseminating information on the project and carefully meeting with directly affected households (shop keepers). Information on the project was presented and these meetings were used to determine stakeholders’ levels of interest and also their opinions on the project and the safeguard documentation processes. These activities are listed below in the table. Stakeholder Topics When Directly affected shops and One -one meetings on project impacts and October 03, 11; November playground owner in refurbishment support needed; including census and 13 2019. right of way inventory of losses Asian Development Bank (ADB) Urban development projects in Ulaanbaatar 10 October 2019; and project coordination November 11 2019 European Bank for Reconstruction Urban development projects in Ulaanbaatar Jan 2018; Feb 20 2019; 19 and development (EBRD) and project coordination September 2019 Head of Project Management and Urban development projects in Ulaanbaatar, 9 September 2019; Regulation Department (UB City) heating expansion priority areas and project November 13 2019 coordination Deputy Head of Department of Urban development projects in Ulaanbaatar, 9 September 2019; Housing Infrastructure (UB City) heating expansion priority areas and project November 13 2019 coordination Coal Heating Plan (CHP) 3 Project coordination; manufacturing client November 13, 2019 utility disruption management in refurbishment area UB City Vice Mayor Project development November 14, 2019 Kindergarten (Khan-ull District) Project information, project construction November 13, 2019 Director during summer when kindergarten closed, advised on safety of outdoor playground (not recommended for children). UB Traffic Management Department Traffic Management Plan and cost for road December 4, 2019 rehabilitation after construction General Agency for Specialized Asbestos Management Plan and labour December 5, 2019 Inspection hygiene