01 Mon Iee

Regional Logistics Development Project (RRP MON 41192-01)
Initial Environmental Examination
Project Number: 41192-013

November 2010
MON: Regional Logistics Development Project
Prepared by the Government of Mongolia for the Asian Development Bank (ADB
The initial environmental examination 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.
INITIAL ENVIRONMENTAL EXAMINATION
MONGOLIA: PREPARING THE REGIONAL LOGISTICS

DEVELOPMENT PROJECT
15 November 2010
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CURRENCY EQUIVALENTS
(as of 15 November 2010)
Currency Unit – Tugrug (Tg)

Tg1.00 = US$0.000782
US$1.00 = MNT 1,280
The exchange rate of the Tg is determined under a floating exchange rate system. In this report, the
rate used is the rate prevailing at the above date.
LIST OF ABBREVIATIONS USED

ADB Asian Development Bank
AMa Absolute Maximum
AMi Absolute Minimum
оС Degrees of Celsius
cm Centimeter
EIA Environmental Impact Assessment
FTZ Free Trade Zone
GOM Government of Mongolia
ha Hectare
km Kilometer
km/h Kilometers per hour
m Meter
mg/m3 Milligrams per cubic meter
MLEIA Mongolian Law on Environmental Impact Assessments
MLEP Mongolian Law on Environmental Protection
MNE Ministry of Nature and Environment
MNT Mongolian Tugrug
MOF Ministry of Finance
MRTCUD Ministry of Roads, Transport, Construction and Urban Development
NAMHEM National Agency of Meteorology Hydrology and Environmental Monitoring Agency
NEASPEC North East Asia Subregional Programme for Environment Cooperation
NGO Non-Governmental Organization
NSO National Statistical Office
OH&S Occupational Health and Safety
PIU Project Implementation Unit
PPTA Project Preparatory Technical Assistance
PRC People’s Republic of China
RP Resettlement Plan
SPIA State Professional Inspection Agency
SPS Safeguard Policy Statement
USD US Dollar
UNDP United Nations Development Program
TA Technical Assistance
Tg Mongolian Tugrug
UB Ulaanbaatar
UBTZ Ulaanbaatar Railway Joint Stock Company
In this report, “$” refers to U.S. Dollars

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TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................................. 1
1. INTRODUCTION ................................................................................................................................... 5
1.1. PROJECT BACKGROUND................................................................................................................... 5
1.2. STRUCTURE OF THIS REPORT .......................................................................................................... 5
2. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ................................................................. 7
2.1. ENVIRONMENTAL LEGISLATION ......................................................................................................... 7
2.2. ENVIRONMENTAL ASSESSMENT REQUIREMENTS ............................................................................... 8
2.2.1. Environmental Assessment Requirements of ADB ................................................................ 9
2.2.2. EIA Requirements of Mongolia ............................................................................................. 10
3. DESCRIPTION OF THE PROJECT ................................................................................................... 12
3.1. CATEGORY AND TYPE OF THE PROJECT.......................................................................................... 12
3.2. PROJECT LOCATION....................................................................................................................... 12
3.3. DESCRIPTION OF THE PROPOSED ACTIONS..................................................................................... 12
3.4. EMPLOYMENT OPPORTUNITIES........................................................................................................ 14
3.5. NEED FOR THE PROJECT ................................................................................................................ 23
3.6. IMPLEMENTATION SCHEDULE ......................................................................................................... 23
3.7. SIZE AND MAGNITUDE OF OPERATION ............................................................................................ 24
4. DESCRIPTION OF THE POTENTIALLY AFFECTED ENVIRONMENT ............................................ 27
4.1. DEFINITION OF THE PROJECT AREA ................................................................................................ 28
4.2. PHYSICAL RESOURCES .................................................................................................................. 28
4.2.1. Topography and Soils ........................................................................................................... 28
4.2.2. Climate and Air Quality ......................................................................................................... 33
4.2.3. Hydrology .............................................................................................................................. 37
4.2.4. Natural Disasters .................................................................................................................. 41
4.2.5. Noise, Vibration and Electromagnetic Interference .............................................................. 42
4.2.6. Solid Waste........................................................................................................................... 43
4.3. ECOLOGICAL RESOURCES.............................................................................................................. 43
4.3.1. Ecosystems, Flora and Fauna .............................................................................................. 43
4.3.2. Protected Areas .................................................................................................................... 47
4.4. ECONOMIC DEVELOPMENT ............................................................................................................. 47
4.4.1. Industry ................................................................................................................................. 47
4.4.2. Agriculture............................................................................................................................. 47
4.4.3. Non-transport Infrastructure .................................................................................................. 48
4.4.4. Tourism ................................................................................................................................. 48
4.5. SOCIOECONOMIC SITUATION ........................................................................................................... 48
4.5.1. Population ............................................................................................................................. 48
4.5.2. Economic Base and Poverty Situation .................................................................................. 50
4.5.3. Health and Safety ................................................................................................................. 51
4.6. PALEONTOLOGICAL AND ARCHEOLOGICAL SITES .............................................................................. 51
5. ALTERNATIVES ................................................................................................................................. 52
5.1. NO ACTION ALTERNATIVE .............................................................................................................. 52
5.2. SITE LOCATION ALTERNATIVES ...................................................................................................... 52
6. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION
MEASURES ............................................................................................................................................... 55
6.1. ANTICIPATED ENVIRONMENTAL IMPACTS ........................................................................................ 55
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6.2. DEFINING PROJECT AREA .............................................................................................................. 55

6.3. SCREENING IMPACTS AND SCOPING ............................................................................................... 55
6.4. ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES DURING CONSTRUCTION STAGE ................. 57
6.4.1. Topography and Soils ........................................................................................................... 57
6.4.2. Air Pollution........................................................................................................................... 58
6.4.3. Water .................................................................................................................................... 59
6.4.4. Noise and Vibration Impacts ................................................................................................. 60
6.4.5. Waste.................................................................................................................................... 60
6.4.6. Flora, Fauna, and Protected Areas ....................................................................................... 61
6.4.7. Non-Transport Infrastructure ................................................................................................ 61
6.4.8. Transport Infrastructure ........................................................................................................ 62
6.4.9. Paleontological Sites ............................................................................................................ 62
6.4.10. Health and Safety ................................................................................................................. 62
6.4.11. Socioeconomic Impacts ........................................................................................................ 64
6.5. ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES DURING OPERATION STAGE ....................... 64
6.5.1. Air Quality ............................................................................................................................. 64
6.5.2. Water .................................................................................................................................... 65
6.5.3. Noise and Vibration .............................................................................................................. 66
6.5.4. Waste.................................................................................................................................... 66
6.5.5. Flora and Fauna ................................................................................................................... 66
6.5.6. Health and Safety Issues ...................................................................................................... 67
6.5.7. Transport and non-Transport Infrastructure .......................................................................... 67
6.5.8. Socioeconomic Impacts ........................................................................................................ 67
6.6. CUMULATIVE AND INDUCED IMPACTS .............................................................................................. 68
7. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ..................................... 69
8. GRIEVANCE REDRESS MECHANISM ............................................................................................. 70
9. ECONOMIC ASSESSMENT ............................................................................................................... 72
10. ENVIRONMENTAL MANAGEMENT AND ENVIRONMENTAL MONITORING PLANS ............... 73

10.1. ENVIRONMENTAL MANAGEMENT PLAN ............................................................................................ 73
10.2. IMPLEMENTATION SCHEDULE ......................................................................................................... 73
10.3. INSTITUTIONAL ARRANGEMENTS ..................................................................................................... 73
10.4. CAPACITY BUILDING ....................................................................................................................... 74
10.4.1. Trainings ............................................................................................................................... 74
10.5. ENVIRONMENTAL MONITORING PLAN .............................................................................................. 74
11. FINDINGS AND RECOMMENDATIONS ....................................................................................... 75
12. CONCLUSIONS .............................................................................................................................. 76

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EXECUTIVE SUMMARY
Project Description
1. In the context of the reorientation of the trade flows from the Russian Federation to PRC
lately over 80% of imports enter Mongolia from PRC through the Zamyn Uud border point in the
southeast of Mongolia. The bulk of Mongolia’s exports also travel through Zamyn Uud en route to
Tianjin port, the only port in the PRC available to Mongolia for international trade. As a
consequence, the traffic handled at Zamyn Uud has expanded rapidly in recently. This caused
serious congestion in Zamyn Uud which affects imports, exports, and transit traffic. As no paved
road currently exists between Zamyn Uud and Ulaanbaatar, an overwhelming majority of the
freight traffic coming by road is transported by the railroad. Therefore, there is a need of
developing multimodal facilities that will enable smooth and rapid container shipments, and
reduced shipper costs. This IEE includes the Environment Management Plan (EMP, Appendix
A1) and Environment Monitoring Plan (Appendix A2).
Description of the Environment

2. The Regional Logistics Development Project is located in Zamyn Uud Soum of the
Dornogovi Aimag (Province) in south-east Mongolia. The proposed Project is the construction of
logistics facilities (multimodal terminal and auxiliary facilities including Customs and Quarantine
inspection), and related infrastructure (access railway and road, power lines, water pipelines and
sewerage facilities, and telecommunications).
3. The topography of the project area is predominantly flat with altitudes around 960 meters
from sera level. The project area is located at pediment and undulated, dissected and hillocky
plain. The dominant soils are little stony brown soil of desert steppe and brown soil of desert
steppe. In the Zamyn Uud area all-increasing population and infrastructure building activities put
an additional anthropogenic load to land and cause intensification of soil degradation.
4. The Zamyn Uud area belongs to dry and warm climatic zone. Annual average precipitation
is 123.5 mm and there is no permanent snow cover during winter. Strong winds occur frequently
in the area. The frequency of the dust and sandstorms in the project area is the highest in
Mongolia and amount to 31 per year with the maximum occurrence in April and May, and number
of days with drifting sand is 47.5. A perennial water body – Sevhuuliyn Toyrom is located to the
north-east of the Project Area in the depression behind the border protection net. Groundwater
resources in the Project Area are located in rocks with local, limited groundwater resources. The
water supply for Zamyn Uud is from 8 wells (with depth ranging from 110 to 120 m) located to the
east of Zamyn Uud.
5. The ecosystem near Zamyn Uud (specifically to the west of Zamyn Uud) has undergone
significant change due to anthropogenic activity, however, in the project area the condition of the
ecosystems is assessed as from stable to slightly altered. In general, this region has sparse
vegetation communities of intermediate type between desert and desert steppe. The project area
is largely used by the local communities as pasture land. There are no protected areas of local or
national significance in the impact area or in the proximity to it.
6. Dornogovi Aimag has no large-scale industry. In Zamyn Uud soum, the food industry
dominates due to its animal husbandry. Goats and sheep are prevalent among livestock of Zamyn
Uud soum. Zamyn Uud is the largest border crossing point in Mongolia, however, there are no
substantial tourist resources in the Dornogovi Aimag.
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7. The population of Zamyn Uud was 12,823 in 2009. Statistical data indicate that the
population of the Soum has been growing on average 12% per year during the last three years.
About two thirds of the population is of working age, and about one third are elderly and children.
Like the population, the number of households Zamyn Uud Soum is also increasing with average
rate of 11% per year. No protected cultural, paleontological or archeological sites are known to
exist in the project area. It was reported by the local administration, however, that occasionally
dinosaur fossils have been found during construction works.
Alternatives
8. Failure to build the Logistic Center would result in increasing impediments to transport of
produce and manufactured goods from PRC. Therefore, the “No Action Alternative” is neither a
reasonable nor prudent course of action.
9. Four location alternatives for the multimodal facilities have been proposed and examined.
Three of the four alternatives are located to the west side of Zamyn Uud – Ulaanbaatar railway,
and one – to the left side. Although Site Alternative 2A location for the Logistics Center is the
most remote of all the options, it offers several advantages over other alternatives, specifically, it
does not come into a conflict with development plans of Zamyn Uud (as Site Alternative 3) or with
existing rail infrastructure (as Site Alternative 1), and can be expanded to the north-west (in
contrast to Site Alternative 1, which has no potential for expansion or Site Alternative 2B with
limited potential for development. After close inspection of Alternative 2A by many stakeholders
including local administration it was officially proposed for the Project by the Ministry of Finance.
Therefore, based on engineering, socio-economic, and environmental considerations it has been
concluded that Site Alternative 2A is the most optimal solution.
Anticipated Risk and Environmental Categorization

10. The environmental risk associated with the Project is low if the EMP is implemented
because (i) the Project physical components are relatively small with limited minor environmental
adverse impacts; (ii) there is no surface water near the site and aquifer locates in about 100 m
deep; (iii) the site is planned away from the residential and commercial area; and (iv) future
development around the site is restricted by the Zamyn Uud town master plan. The EMP will be
implemented easily. Detailed design TOR will include the measures in EMP. All stipulated
measures for construction are normal practices for an experienced contractor. The Government
has assured that all measures during the operation be carried out. Also, PIU will hire international
project management specialist to ensure the EMP implementation. Induced and cumulated
impacts risks will be managed by the Zamyn Uud town development master plan. Social risk
associated with the Project is also low. EMP includes measures for anticipated social risks such
as HIV/AIDS and human trafficking. The Project was categorized as environmental category B
because the overall environment risk is low.
Environmental Impacts and Mitigation Measures during Construction

11. Impacts on the area topography will likely occur due to the construction. Sand storms and
drifting sands can have impacts on the Project. The mitigation measures will include fixation of the
sand in areas adjoining the access roads and railway tracks with vegetation, and conservation of
the existing vegetation. Temporary air quality impacts are anticipated due to fugitive dust
generation. They will be mitigated through avoidance and mitigation strategies such as installation
of emission controls, spraying access road surfaces.
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12. The groundwater aquifers are located deep and no water intake points within the proposed
construction area are located in the area of potential impact. After treatment, wastewater formed
at construction site will be used for irrigation of vegetation for windbreaks and sandbreaks that will
be established near the multimodal facilities, and the access road.
13. No adverse impacts to flora and fauna species are likely to occur due to the construction.
Planting drought resistant species of flora in sand- and wind -breaks will be implemented in order
to mitigate impacts to soils and contribute to desertification control in the Zamyn Uud area.
14. There is, however, a significant risk of the spread of the human immunodeficiency virus
(HIV), acquired immunodeficiency syndrome (AIDS), and socially transmitted infections (STI), in
addition to the possible rise in the incidence of human trafficking, a number of which are related to
sex trade. Construction workers coming from Russia and the PRC, places where there are much
higher incidences of the HIV/AIDS, is a concern that requires adequate attention.
Environmental Impacts and Mitigation Measures during Operation

15. Although vehicular emissions is expected to increase to an extent due to more intense
traffic serving multimodal facilities, it is unlikely to contribute considerably to air quality
deterioration. As the frequency of the dust storms in the project area is the highest in Mongolia
and their magnitude can be reasonably high, it is anticipated that dust pollution will be the
determining factor of the air quality. Mitigation measures include re-vegetation and tree planting
into wind and sand-breaks based on wastewater reuse. No significant impacts on surface or
groundwater are anticipated in operation stage.
16. Noise and vibration impacts will occur due to intensive heavy truck traffic to the multimodal
facilities, and railway operation. Alternative of the access road passing through Zamyn Uud have
been avoided. If sensitive receptors are identified near the access road, monitoring of baseline
noise levels will be carried out at the pre-construction stage to be compared with the routine noise
measurements.
17. It is anticipated that the Project will have insignificant direct impacts on the habitats. The
project area is a semi-desert ecosystem with comparatively low biodiversity. Vegetation planting
program will be started during construction phase and continued during the operation stage.
18. The development of the Logistics Center is anticipated to have positive impacts to
international trade relations between Mongolia and People’s Republic of China (PRC) and other
countries. The logistics center will enhance import and export opportunities for industries.
Intensive industrial development of land in Zamyn Uud area and growing population of livestock
grazing on thin vegetation around the town is anticipated. Soil erosion process and desertification
will occur if no mitigation measures will be taken. To avoid and mitigate cumulative impacts
related to the soil erosion international and local organizations participating in new developments
should be consistent with their environmental policies and national environmental legislation of
Mongolia at all stages of the Project: design, construction, and operation.
19. Similarly, following completion of construction and with improved transport facilities, the
spread of diseases, such as the Avian influenza and Swine flu as well as animal diseases, is a
risk that needs to be adequately managed. Vigilance on preventing the spread or increase in the
incidence of HIV/AIDS, STI, including human and drug trafficking, should be maintained. Also,
with more vehicles expected to be on the road within the vicinity of the logistics center, a traffic
safety awareness campaign is needed to avoid any untoward incidents.
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Public consultations
20. A number of consultations with stakeholders were organized in Ulaanbaatar and Zamyn
Uud in March and April 2009, and April 2010 (Appendix A3). They were organized in the format of
formal consultative workshops and informal meetings with general public. Among issues raised
during the public consultation were risks of noise, air pollution, and vehicle accidents in case the
access road passes through Zamyn Uud, and creation of new jobs for local population.
Stakeholder Consultation and Participation Plan, including both environmental and social issues,
is prepared as in Appendix A4.
Environmental Management Plan

21. Appendix A1 of this Report presents the Environmental Management Plan (EMP) that
identifies feasible and cost-effective measures to be taken to reduce potentially significant
adverse impacts to acceptable levels. This EMP is site-specific, and is focused on the Project
components: multimodal and auxiliary facilities, access rail and road, and other components to be
developed in the Project.
Conclusions
22. The Project will have socio-economic benefits. If the prescribed mitigation and
management measures are fully implemented, it is unlikely to have significant adverse
environmental impacts. Environmental Management and Environmental Monitoring Plans have
been prepared and responsibilities for implementation assigned. A full Environmental Impact
Assessment (EIA) is not required.
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1. INTRODUCTION
1.1. Project Background

23. This Initial Environmental Examination (IEE) has been prepared for the Regional Logistics
Project located in Zamyn Uud Soum of Dornogovi Province of south-eastern Mongolia. The PPTA
consultants have prepared it on behalf of the Mongolian Government. The IEE describes the
baseline environmental conditions, including physical, ecological and socio-economic resources
around the proposed facilities, assesses environmental impacts of the proposed facilities, and
provides mitigation measures. The IEE includes an environmental management plan (EMP) with
environmental monitoring plan. It has been prepared following ADB’s Safeguard Policy Statement
(SPS, 2009) and ADB’s Environmental Assessment Guidelines (2003).
24. The general objectives of this IEE are to:

 provide necessary baseline data about the Project;
 provide information on potential impacts of the Project and the characteristic of the
impacts;
 provide information on potential mitigation measures to minimize the impact
including mitigation costs;
 assess Project alternatives; and
 formulate Environmental Management and Monitoring Plans.
1.2. Structure of this Report

25. The IEE report is organized as follows:
■ Executive Summary outlines important facts, major findings, and recommended
actions of the IEE.
■ Introduction. Section 1 provides an identification of the Project and the Project
Proponent, Ministry of Roads, Transport, Construction and Urban Development
(MRTCUD) and an explanation of the purpose of the IEE. It also presents the
organization of the IEE and an explanation of the extent of the IEE study.
■ Policy, Legal and Administrative Framework. Section 2 describes applicable
environmental regulations and institutional framework.
■ Description of the Project. In accordance with the ADB Guidelines Section 3
provides the detailed description of the Project, need for the Project, Project location,
magnitude of operation, environmental category of the Project, and implementation
schedule.
■ Description of the Potentially Affected Environment. Section 4 provides a
description of the potentially affected environment. The description is based on reviews
of available documentation, statistical data, meetings with experts in the field and field
surveys and investigations. The ADB definition of the environment requires
environmental assessments to address four aspects of the environment:
o Physical Resources – topography and soils, air and water characteristics,
and noise;
o Ecological Resources – flora, fauna, and protected areas;
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o Economic Development – industrial and agricultural development, land use,

local transportation network, non-transport infrastructure within the potentially
affected environment; and
o Social and Cultural resources - issues of health, public safety, recreational
resources, cultural resources and aesthetics.
■ Alternatives. Section 5 provides information on the Project’s location and
technological alternatives, as well as “No action” alternative.
■ Potential Impacts and Mitigation. Section 6 provides an assessment of potential
impacts of the proposed development in light of the existing conditions, together with
recommended actions to prevent and/or otherwise mitigate unavoidable impacts
expected to be incorporated as integral parts of the Project.
■ Public Consultation and Disclosure. Information on public participatory workshops
and consultations with stakeholders, including experts and local administration is
presented in Section 7. Additionally, information of public consultations is represented
separately in the Social Analysis.
■ Grievance Redress Mechanism. Information about grievance handling including
purposes, procedure, and levels of grievance intake points is given in Section 8.
■ Economic Assessment. Section 9 makes a preliminary assessment of
environmental costs.
■ Environmental Management and Environmental Monitoring Plans. Section 10
provides an outline of environmental management plan and environmental monitoring
plan, and discusses institutional requirements to environmental management.
■ Findings and Recommendations. Findings and recommendations are stated in
Section 11.
■ Conclusions. Conclusions are provided in Section 12.
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2. Policy, Legal and Administrative Framework
2.1. Environmental Legislation

26. Mongolia’s environmental legal framework is similar to international practices and is
structured as shown in Table 1. The acts and regulations which can be applicable to the Project
are listed in Table 2.
Table 1: Basic Structure of Mongolia’s Environmental Law
Constitution #6
Guaranteeing right to a clean and healthy environment
International treaties
CITES, Ramsar, Biological Diversity, Climate Change, Protection of Ozone Layer, Control of
Chemicals Hazardous to the Ozone Layer, Combating Desertification, Transport and
Overall policy
Disposal of Hazardous Chemicals, Protection of the Migratory Routes of Wildlife, Stockholm

Convention on Persistent Organic Pollutants, Cartagena Biosafety Protocol and Kyoto
Protocol of UNFCCC
Law on Environmental Protection
Establishing the main rights and responsibilities, standards and principles for the
management of environmental issues in Mongolia
Law on Environmental Impact Assessment
Applies to specific projects which have potential negative impacts to the environment &
determines specific measures for implementation byond requirements set out by laws below
* - No specific hierarchy within this section
Water Law Forest Law Air Law
Legislation
Prevention of Forest and Steppe Fire Law

Resource
Land law Fauna Law Hunting Law

Specially Protected Area Law
Natural Plants Law Buffer Zone Law
Underground Resources Law
Petroleum Law Mineral Resources Law
* - Fees collected pursuant to laws in this section must comply with requrements of the first
Fee Legislation
law listed (a)

(a) Law on Reinvestment of Natural Resource Use Fees for Conservation and Restoration of
Natural Resources;
Land Use Fees Law
Water Fee Law Hunting Fees Law
Forest Use Fee Law Natural Plants Fee Law
Source: Compendium of Environmental Law and Practice in Mongolia (J.Wingard, P.Odgerel), Ullaanbaatar,
2001.
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Table 2: Acts and Regulations Applicable to the Project
Acts and Regulations Issues covered

The Mongolian Law on Environmental Protection (MLEP) is the umbrella law for all
environmental and natural resource laws in Mongolia. It governs the land and its
subsoil, underground and minerals, water resources, plants, wildlife and air, and
Law on Environmental requires their protection against adverse effects to prevent ecological imbalance. The
Protection law is designed to guarantee the human right to a healthy and safe environment,
ecologically balanced and economic development, and the protection of the
environment for present and future generations, and the proper use of natural
resources.
The purpose of this law is to regulate actions in order to protect air quality,
particularly with regard to issues related to the health of the country’s population and
minimizing greenhouse gas emissions. Article 11 of the Law on Air describes the air
protection requirements during construction. Standards for permissible limits on the
amount of air polluting substances and hazardous impacts shall serve as the basis
Law on Air
for the selection of the site, design and construction, commencement of operations,
and expansion or renovation of equipment and technology for any building for
industrial, service or other purposes. An Environmental Impact Assessment shall be
completed prior to construction of an economic entity or organization engaged in
activities which discharge air polluting substances or cause hazardous impacts.
The main purpose of this law is to prevent water pollution by prohibiting littering and
Law on Water contamination through toxic components near estuaries of water bodies, riverbanks
and protection zones.
The Law on Water and Mineral Water Use Fees is designed to regulate fees for the
use of water and mineral water and incorporate these fees into the state budget.
Mongolian citizens, foreign citizens, persons with no citizenship, economic entities
Law on Water and Mineral and organizations that use water, mineral water and/or riparian zones in Mongolia for
Water Use Fee any purposes, are required to pay the fees.
Fee rates for water use shall be determined by the Cabinet Ministry, based on the
limits set out in Clause 1 of Article 6 of the law or determined by Aimag or Capital
City Citizens Representative Khural based on Clause 2 of Article 6 of this law.
The purpose of this law is to regulate the possession and use of land by citizens,
economic entities and organizations of Mongolia. The law contains a number of
provisions which set substantive and procedural land conservation requirements that
Law on Land
prohibit activities that are harmful to human health, environmental protection or
environmental balance. The law allows local governments to use an “appropriate part”
of land fee revenues for land conservation activities.
Source: Compiled by the Consultant, 2010.
2.2. Environmental Assessment Requirements
27. The Project will be subject to the environmental review and clearance requirements of
both Mongolia and those of the ADB. These requirements are as follows:
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2.2.1. Environmental Assessment Requirements of ADB
28. According to SPS, the objectives of the safeguard requirement of ADB on the environment
are “to ensure the environmental soundness and sustainability of projects, and to support the
integration of environmental considerations into the project decision-making process”.
29. Requirements to environmental assessment specify that:

■ At an early stage of project preparation, the borrower/client will identify potential
direct, indirect, cumulative and induced environmental impacts on and risks to physical,
biological, socioeconomic, and cultural resources and determine their significance and
scope, in consultation with stakeholders, including affected people and concerned
NGOs. If potentially adverse environmental impacts and risks are identified, the
borrower/client will undertake an environmental assessment as early as possible in the
project cycle. For projects with potentially significant adverse impacts that are diverse,
irreversible, or unprecedented, the borrower/client will examine alternatives to the
Project’s location, design, technology, and components that would avoid, and, if
avoidance is not possible, minimize adverse environmental impacts and risks;
■ The assessment process will be based on current information, including an
accurate project description, and appropriate environmental and social baseline data;
■ Impacts and risks will be analyzed in the context of the project’s area of influence;
■ Environmental impacts and risks will be analyzed for all relevant stages of the
project cycle, including preconstruction, construction, operations, decommissioning,
and post-closure activities such as rehabilitation or restoration;
■ The assessment will identify potential trans-boundary effects as well as global
impacts; and
■ Depending on the significance of project impacts and risks, the assessment may
comprise a full-scale environmental impact assessment (EIA) for category A projects,
an initial environmental examination (IEE) or equivalent process for category B
projects, or a desk review.
30. Additionally, among other most important requirements of ADB are:
■ Environmental Management Plan. The borrower/client will prepare an
environmental management plan (EMP) that addresses the potential impacts and risks
identified by the environmental assessment.
■ Consultation and Participation. The borrower/client will carry out meaningful
consultation with affected people and other concerned stakeholders, including civil
society, and facilitate their informed participation.
■ Information disclosure. The borrower/client will submit to ADB the following
documents for disclosure on ADB’s website: (i) a draft full EIA (including the draft EMP)
at least 120 days prior to ADB Board consideration, and/or environmental assessment
and review frameworks before project appraisal, where applicable; (ii) the final EIA/IEE;
(iii) a new or updated EIA/IEE and corrective action plan prepared during project
implementation, if any; and (iv) the environmental monitoring reports.
■ Grievance Redress Mechanism. The borrower/client will establish a mechanism to
receive and facilitate resolution of affected people’s concerns, complaints, and
grievances about the project’s environmental performance.
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■ Monitoring. The borrower/client will monitor and measure the progress of
implementation of the EMP.
2.2.2. EIA Requirements of Mongolia
31. The EIA requirements of Mongolia are regulated by the Law on Environmental Impact
Assessment. The purpose of this law is environmental protection, the prevention of ecological
imbalance, the regulation of natural resource use, the assessment of environmental impacts of
projects and procedures for decision-making regarding the implementation of projects.
32. The terms of the Law apply to all new projects, as well as rehabilitation and expansion of
existing industrial, service or construction activities and projects that use natural resources. Type
and size of the planned activity define responsibility as either Ministry of Nature and Environment
(MNE) or Aimag government. There are two types of EIAs defined in the Law: General EIA and
Detailed EIA.
33. To initiate a General EIA, the project implementer submits to MNE (or Aimag government)
a brief description of the project including feasibility study, technical details, drawings, and other
information. The General EIA may lead to one of four conclusions: (i) no detailed EIA is necessary,
(ii) the project may be completed pursuant to specific conditions, (iii) a Detailed EIA is necessary,
or (iv) project cancellation. The General EIA is free and usually takes up to 12 days.
34. The scope of the Detailed EIA is defined by the General EIA. The Detailed EIA report must
be produced by an authorized Mongolian company which is authorized by the MNE by means of a
special procedure. The developer of the Detailed EIA should submit it to the MNE (or Aimag
government). An expert of the organization who was involved in conducting General EIA should
make a review of the Detailed EIA within 18 days and present it to MNE (or Aimag government).
Based on the conclusion of the expert the MNE (or Aimag government) takes a decision about
approval or disapproval of the project.
35. Figure 1 shows a simplified diagram of the EIA procedure in Mongolia. The Detailed EIA
must contain the following chapters:
■ Environmental baseline data;
■ Project alternatives;
■ Recommendations for minimizing, mitigation and elimination of impacts;
■ Analysis of extent and distribution of adverse impacts and their consequences;
■ Risk assessment;
■ Environmental Protection Plan;
■ Environmental Monitoring Program; and
■ Opinions of residents on whether the project should be implemented.
11
Figure 1: Simplified Diagram of the Environmental Assessment Procedure
MNE or local government official appoint EIA

Prior to implementation, project Implementer expert to conduct a General EIA. The expert
submits the project description, the technical has 12 working days and may issue 1 of 3
and economic feasibility study, the work (possibility 4) decisions:
drawings and other related documents to MNE
or local government
a detailed environmental rejection of the project on the

the project may be the project may be
impact assessment is required ground of non-conformity with
implemented without implemented pursuant to
the relevant legislation, or
conducting a detailed specific conditions
adverse impact of the
environmental impact
equipment and technology on
assessment
the environment absence of
the project in the land
management plan
Authorized company conducts Detailed

Project implementer selects authorized
EIA according to schedule and scope
company to conduct Detailed EIA and
determined by General EIA.
negotiates costs
Detailed EIA report is submitted to the

expert who conducted the General EIA for MNE issues decision whether or not to
review. The expert has 18 days to implement the project based on the
develop a conclusion and submit to the expert’s conclusion.
MNE for a decision.
Source: Adapted from Compendium of Environmental Law & Practice in Mongolia, J.Wingard and P.Odgerel,
Ulaanbaatar, 2001.
12
3. DESCRIPTION OF THE PROJECT
3.1. Category and Type of the Project

36. The proposed Project is a construction of Intermodal Logistics Center in Zamyn Uud. The
Project consists of 96.1 ha of land (78.3 for the terminal, 11.8 ha for Customs and other facilities,
6 ha for truck waiting area) and will be part of the larger Mongolia Railway Authority (MRA) site of
288 ha that is dedicated as the intermodal freight terminal and logistics center. The project site is
2.2 km from the ADB-funded Regional Road, which is the main north-south road connecting
Mongolia with PRC, designated as CAREC Corridor 4-b.
37. This road is treated as the associated facility of the Project. The environmental impacts of
this road have been studied. The Regional Road Project’s physical components were not affected
by proposed project. Also, the existing railway lines bound for Ulaanbaatar and PRC are the
associated facilities of the Project. The railways will not cause any significant environmental
adverse impacts due to the Project facility’s operation.
38. The project site has been carefully selected so that it does not conflict with current and
future land uses in the area, and will be able to meet the future intermodal transport demand as
Zamyn Uud’s and Mongolia’s economies expand. The future development needs is a critical
consideration because Mongolia is entering a period when large minerals deposits will be
developed and the economy will double its current size in 5 years with a subsequent doubling
forecast by 2020. Given that Zamyn Uud is Mongolia’s main land trade gateway to the rest of the
world, the implications in terms of transport and trade are obvious: the selected site must meet
not only current needs but also those resulting from a much larger and higher income economy.
The Project is located in previously undisturbed semi-desert area and in several kilometers
northward from Zamyn Uud town. The Project is currently classified as “B” under the ADB
environmental categorization which means that impacts were assessed as site-specific, and in
most cases mitigation measures can be designed more readily than for category A projects.
3.2. Project Location

39. The Project is located in Zamyn Uud Soum, Dorngovi Aimag of South Mongolia as shown
in Figure 2. Geographically, the Project is localized in eastern part of the Gobi Desert near
Mongolia and PRC border. It will be located approximately 9 km from the border crossing with
PRC, 5.7 km from center of Zamyn Uud town, and 5 km from the existing UBTZ freight Terminals
1 and 2. Figure 3 indicates the multimodal facilities, access roads and railway.
3.3. Description of the Proposed Actions

40. The Logistics Center will include (see Figure 4):
■ connecting rail lines in Standard (1,435 mm used in PRC) and Russian (1,520 mm
used in Mongolia) gauges;
■ cargo transfer platforms adjoining the rail lines;
■ storage areas adjacent to the platforms;
■ an administration building;
■ facilities for Customs, Health, and Quarantine inspections and processing (11.8
ha);
13
■ area for the development of warehouses by private sector shippers and logistics
operators;
■ waiting area for trucks (6 ha);
■ area for the development of light manufacturing plants (23 ha set aside but no
construction or other development is included in the Project);
■ cargo handling equipment (e.g., reach-stackers, gantry cranes); and
■ IT systems and software that enable efficient management of cargoes and
operations.
41. Private sector participation will be focused on two distinct, but complementary activities:
■ Logistics Center Terminal Operator. A contract will be awarded through
International Competitive Bidding (ICB) to manage and operate terminal operations
including to load/unload wagons, perform inter-gauge transfer, manage container yards
and movement between the yard and the rail side, prepare trains for dispatch, operate
entry/exit gate, maintain and operate all public-funded facilities. These will include
utilizing the gantry cranes and reach stackers to load/unload cargoes from the
platforms into/out of the adjoining storage sheds. The contractor will be responsible for
maintaining the Logistics Center, the terminal yard, and equipment.
■ Logistics Companies. Logistics companies will be allowed to build warehouses in
designated areas in the terminal yard according to strict guidelines for development.
These warehouses and associated handling equipment used to handle cargo within the
warehouse and between the warehouse and the Logistics Center’s storage and
handling areas will represent investments by the private sector. The logistics
companies will be tenants of the Logistics Center and as such, pay rent to GOM and
service/maintenance charges to the Terminal Operator.
42. During operation stage the primary operations identified for the multi-modal terminal are
as follows:
■ Transfer of freight from standard gauge cars onto broad gauge cars. This applies
to rail freight from PRC going to Russia or Mongolia. Under international agreement,
transfers from broad to standard gauge primarily are carried out in PRC.
The intermodal transfer of freight from standard gauge to broad gauge is one that can
be done very efficiently either:
o using stack loaders or
o using stack loaders in tandem with gantry cranes.
■ The collection of freight transported by trucks from PRC and assembling it into a
form that can be loaded efficiently onto freight cars. This can be subdivided into two
sections:
o Freight in transit to Russia. This is a significant but steadily declining
proportion of current operations.
o Freight destined for UB and other Mongolian destinations. This is the
largest segment of rail freight handling.
About half of the total freight is ‘truck to rail’ (T-R) while the other half is ‘rail to rail’ (R-
R). To achieve efficiency the estimated 52,500 TEU of uncontainerized cargo will need
to be packed in containers at ZU before shipment.
14
3.4. Employment Opportunities
43. The construction and operation of the logistics terminal will generate employment for the
local population. There will be about 250 construction jobs, of which about 150 are unskilled and
available to local residents. Initially, there will be about 250 new jobs created during the first
phase of operations, which is planned to increase to a total of 1,250 new jobs in the third phase of
operations making this one of the main employers in Zamyn Uud. About 65% of these jobs are
unskilled, and available to local residents including women.
15
Figure 2: Project Location
Note: Map scale 1:100,000, 1 cell = 2km.

Figure 3: General Location of the Zamyn Uud Logistics Center
Source: Mongolia: Preparing the Regional Logistics Development Project. Feasibility Study. 2010.
Figure 4: Schematic Drawing of the Terminal and Auxiliary Facilities
Source: Mongolia: Preparing the Regional Logistics Development Project. Feasibility Study. 2010.
Figure 5: Cross Section for Access Road
Figure 6: Typical Cross Section, Type 1

Figure 7: Typical Cross Section, Type 2
Figure 8: Longitidunal Profile of Bridge

Figure 9: Bridge Cross Section
Figure 10: Cross Section of Platform and Container Yard
Figure 11: Rail Cross Section for Ballasted Track
23
3.5. Need for the Project

44. In the context of the reorientation of the trade flows from the Russian Federation to PRC
lately, over 80% of imports enter Mongolia from PRC through the Zamyn Uud border point in the
southeast of Mongolia. The bulk of Mongolia’s exports also travel through Zamyn Uud en route to
Tianjin port, the only port in the PRC available to Mongolia for international trade. As a
consequence, the traffic handled at Zamyn Uud has expanded rapidly in recent years. This
caused serious congestion in Zamyn Uud which affects imports, exports, and transit traffic. The
major reason for the congestion is inadequate logistics capacity in Mongolia in general and at
Zamyn Uud in particular. As no paved road currently exists between Zamyn Uud and
Ulaanbaatar, an overwhelming majority of the freight traffic coming by road is transported by the
railroad. Due to the limited logistics facilities available at Zamyn Uud, it can sometimes take 50–
60 days to get shipments into Ulaanbaatar, which hinders the Mongolian economy. In addition,
the anticipated development of the mining sector will result in a demand increase for mineral and
equipment transport.
3.6. Implementation Schedule

45. The implementation schedule for the Project is shown below in Table 3 and it is based on
the amount of work, given the following aspects of the project area:
■ The Project will secure the necessary funding and that designs will be available on
time;
■ Concrete and asphalt pavement work is limited to 8 months of the year (March to
November) and earthwork is limited to 9 months of the year (February to November)
because of cold weather; and
■ Stockpiling of aggregates, pre-cast concrete structures and other preparatory
works are conducted throughout the year.
Table 3: Project Implementation Schedule
Timing
Stage Activity Start of Duration
End month 1
Activities 1 (Months)
1 Detailed Design and Tender Documents 0 9 9
2 Prequalification of Contractors 9 3 12
3 Tendering for Civil Works 12 2 14
4 Implementation of Civil Works 14 24 38
5 Defects Liability Period 38 12 50
6 Final Report 50 3 53
Total Months 53
Equivalent in Years 4.4
1
Number of months from the start of the project.
Source: PPTA Consultant, 2010 .
24
3.7. Size and Magnitude of Operation

46. The Project's costs include track, access road, bridge over rail mainline track, utilities,
buildings, and all parts, materials, installation, engineering and construction. The total estimated
cost of the Project is $71.59 million inclusive of base cost ($55.44 million); physical and price
contingencies ($8.70 million); import taxes, duties, and licensing fees ($3.60 million); consulting
services for detailed design and supervision ($2.20 million); and interest during construction
($1.66 million). The Estimated BoQ and Cost for Zamyn Uud Logistics Center and Customs
Center of the Project are shown in Table 4.
Table 4: Estimated BoQ and Cost for Zamyn Uud Logistics Center and Customs Center 25
Table 4: Estimated BoQ and Cost for Zamiin-Uud Logistics Center and Customs Center
Description Unit Quantity Unit Price ($) Total ($) Subtotal ($)
Track Materials
UIC60 Rail 25 m-Platform Tracks MT 306.62 1,100.00 337,284
UIC60 Rail 25 m-Storage Tracks MT 544.37 1,100.00 598,805
UIC60 Rail 25 m-Lead Tracks MT 610.78 1,100.00 671,856
Reinforced concrete sleepers

assembled with Pandrol fasteners Each 20,708 120.00 2,484,960
(1,700/km; 2,700mm)
C40 Concrete slab for base of

M3 1,692.81 186.97 316,504
platform tracks (250mmX2650mm)
C60 Concrete Rail Slab for platform 6,160,880

M3 1,165.16 238.94 278,404
tracks (190mmX2,400mm)
Concrete-emulsified asphalt (CA) for

M3 306.62 370.76 113,683
platform tracks (50mmX2,400mm)
Compactible crushed stone for lead
and storage tracks M3 21,081.42 14.45 304,627
(600mmX3,650mm)
Asphalt Concrete (AC) for lead and
M3 2,984.13 259.20 773,486
storage tracks (100mmX3,100mm)
Ballast for storage and lead tracks
M3 10,107.53 9.40 95,011
(350mmX3,000mm)
UIC60 Rail joints with 4 bolts Each 974 7.00 6,818
Misc. track materials (3%) LS 1.00 179,443.11 179,443
Trackwork
Concrete road crossings at grade Each 9 3,500 31,500
Track leveling and labor-Platform
TM 2,555.2 180.00 459,932
tracks
Track leveling and labor-Storage 2,260,021
TM 4,536.4 175.00 793,870
Tracks
Track leveling and labor-Lead Tracks TM 5,089.8 175.00 890,719
Track leveling and labor-Turnouts Each 7 12,000.00 84,000
Pavement
C30 Concrete at Main Gate
M3 445 167.92 74,808
(100mmX116.5mX38.24m)
C30 Concrete at Customs Center
M3 3,581 167.92 601,367
(100mm)
C30 Concrete Roadways
M3 3,799 167.92 637,958
(100mmX10m)
Reinforced C30 Concrete for
M3 18,998 350.00 6,649,217
Container Yard (100mm) 10,534,607
2 12.41 744,600
DBST Truck Entrance Parking Area M 60,000
DBST for Terminal vehicle parking
M2 40,000 12.41 496,400
area
Limestone Aggregate Base 250mm

for maingate, Customs area, M3 92,059 14.45 1,330,256
roadways, and container yard
26
Lighting
High Mast 20 m Poles with 4
Each 90 2,700.00 243,000
direction Luminaries
Halogen lamps 400W each Each 600 6.00 3,600
Power distribution for site lighting
electrical (9,000m) including LM 9,000 18.00 162,000 558,600
trenching, PVC, cable
Emergency Generator for lighting

Each 2 75,000.00 150,000
and security 100KW
Safety and Security

Main Gate Checkpoint Booths (6
M2 72 350.00 25,200
each 2mX6m) and Canopy
Main gate truck weigh scales (150
Each 2 125,000.00 250,000
ton)
Main Gate IT system (driver ID,
computers & printers, weigh scale
LS 1 1,250,000.00 1,250,000
readout, scanners, etc. including
software)
CCTV Surveillance System with 80
cameras, 100 heat/smoke detectors,
LS 1 750,000.00 750,000
50 motion detectors and alarm
system
3,236,660
Central security monitoring and
LS 1 150,000.00 150,000
control room equipment
1 fire truck, 1 ambulance, portable

fire extinguishers, 2 security
vehicles, and accidental spill of LS 1 500,000.00 500,000
hazardous materials recovery
emergency response equipment
Truck Entrance Parking, Terminal
Perimeter and Customs Area
LM 5,800 53.70 311,460
Security Fence (2.5m height with 8-
strand concertina barbed wire)
Buildings
Terminal Administration Building with
HVAC (50mX50m 2 floors, C8 M2 5,000.0 150.00 750,000
concrete floor)
Customs and Quarantine
Administration Building with HVAC
M2 7,500.0 150.00 1,125,000
(50mX75m 2 floors, C8 concrete
floor)
Equipment Maintenance Workshop
3,778,000
with forced air heating/cooling
M2 24,000.0 60.00 1,440,000
(100mX200m 1.2 floors, C8 concrete
floor)
Truck Entrance Parking Area - Driver
Waiting Hall with Canteen and
M2 4,000.0 100.00 400,000
Customs/Logistics Contact Booths
with HVAC (200mX20m)
Customs Booths (15 each 2mX6m) M2 180.0 350.00 63,000
Facilities
Ramp Track Air Station with Duplex

Each 2.0 20,000.00 40,000
Compressor System
Ramp Track Compressed Air Piping

System with Shutoff and Isolation LM 2,555 10.00 25,552
Valves 345,552
Collection & Treatment Facility for
Industrial Waste Water (100 LS 1.0 250,000.00 250,000
CM/day)
Diesel Fuel Storage & Distribution for
LS 1.0 30,000.00 30,000
Lift Equipment and Service Vehicles
27
Sitework, Clearing, and Earth Works
Sitework, Clearing, and Grubbing M2 900,000 0.03 28,800
Earthworks (fill and leveling) M3 900,000 2.20 1,980,000

2,327,654
Drainage LM 9,239 33.80 312,284
Grading for DBST truck parking and
unsealed empty container storage M2 182,500 0.04 6,570
area
Site utilities (electric, water, F/O communication lines)

Site utilities (electric, water, F/O
M2 410,000 3.50 1,435,000 1,435,000
communication lines)
Access Road and Bridge

See Detailed
Cost
Access Road Breakdown 1,429,032
Appendix
4.A 7,178,931
See Detailed
Overpass Bridge over Mainline
Cost 5,749,899
(110m)
Breakdown
Terminal Equipment
Reach Stackers for Container Yard Each 6 350,000 2,100,000
Yard Trucks Each 20 40,000 800,000
Yard Chassis Each 200 12,000 2,400,000
Rubber Tyred Gantry Cranes for
Each 3 1,100,000 3,300,000
Platform
Customs Center Equipment (truck
mounted container scanner, weigh
LS 1 1,500,000 1,500,000
scales, countertop scanners and
testing instruments, forklift)
Shunter (Switch) Engines 800 Hp
Each 2 1,200,000 2,400,000
Diesel Traction
Logistics Center Management 17,110,000
System (LCMS) with Terminal
Operations Control System; Yard
Planning and Control Module; Gate LS 1 4,250,000 4,250,000
Operations Module; Accounting and
Invoicing Module; and Intermodal
Yard Operations Module
Customs and Quarantine Equipment
LS 1 200,000 200,000
and Testing Instruments
Forklifts 6 ton for Empty Container
Each 2 80,000 160,000
Yards
SUBTOTAL 54,925,905
Permits & Licenses (3%) 1,647,777 1,647,777
Detailed Design & Construction Supervision (4%) 2,197,036 2,197,036
Physical Contingencies (6%) 3,295,554 3,295,554
GRAND TOTAL 62,066,272
TM = Track meter; LS = Lump sum; M3 = Cubic meter; M2 = Square meter; LM = Linear meter; m = meter; mm = millimeter; km =
kilometer; MT = Metric ton; Hp = Horsepower; F/O = Fiber Optic; DBST = Double Bitumen Surface Treatment; HVAC = Heat Ventilation
Air Conditioning; IT = Information Technology; ID = Identification; CCTV = Closed Circuit Television; PVC = Polyvinyl Chloride.
Source: Consultant.
4. DESCRIPTION OF THE POTENTIALLY AFFECTED ENVIRONMENT

47. The description of the potentially affected environment is organized under four major
headings as suggested by the ADB SPS (2009) as follows:
28
■ Physical Resources – climate and air quality, topography and soils, noise and
vibration, and hydrology;
■ Biological Resources - flora (plants), fauna (wildlife), nature reserves and unique
habitats;
■ Economical Development – industries and agriculture, infrastructure facilities, land
use, and tourism; and
■ Social and Cultural Resources – population and communities, health and safety,
education facilities, socio-economic conditions, and paleontological/cultural heritage.
4.1. Definition of the Project Area

48. The first level of administrative sub-division in Mongolia is Aimag (province). In total, there
are 21 Aimags in Mongolia. Aimags are subdivided into Soums, which represent the second level
of administrative units. Soums are subdivided into bags. Administratively, the Project is located in
Zamyn Uud Soum (district) of the Dornogovi Aimag (province) of Mongolia. Zamyn Uud is the
southern-most Soum of Dornogovi Aimag located at the Mongolia - PRC border. The distance to
the border town Erlian (Erenhot) in the Inner Mongolia Autonomous Region of the PRC is about
4.5 km. Zamyn Uud was established in 1956, as “Zamyn Uud railway station” in connection with
the construction of Trans-Mongolian Railroad.
49. The potentially affected environment in the project area is defined principally in regard to
two factors:
■ The nature and scale of the proposed action.
■ The sensitivity and circumstances of the environment in which the proposed action
will occur or issues of special concern (such as induced and cumulative impacts, etc.).
50. The nature of the actions proposed within the context of the current Project is largely
construction of a point object (multi-modal terminal) and small-scale linear objects (an access
road and railway tracks). Although the physical and ecological environment in which these actions
will occur can be confined largely to the point and linear objects and immediately adjacent areas,
socio-economic impacts may also occur over wider areas. In addition, indirect and cumulative
impacts could take place over an appreciably larger area and the conceptual limits of the project
area will be expanded in accordance with the circumstances of the particular environmental
attribute under discussion.
4.2. Physical Resources

51. Physical characteristics of the potentially impacted environment are defined to include the
area’s topography and soils, hydrology, climate and air quality characteristics, natural disasters,
and noise and vibration.
4.2.1. Topography and Soils

52. Overview. The project area is located in the eastern part of Gobi Desert, which is
classified as semi-desert. The landscapes of the Eastern Gobi are represented by deserts with
fescue shrubs on semi-desert brown soils (Figure 12 and Appendix A5).
53. The Project Area. Topography. The topography of the Project Area is predominantly flat
with altitudes around 960 meters sea level. The project area is located at pediment and undulated,
dissected and hillocky plain. The landscape of the project area is mostly Fescue – Caragana
desert.
29
Figure 12: The Topography of the Project Area
Source: PPTA Consultant, 2010.
54. Soils. The dominant soils in the project area are little stony brown soil of desert steppe and
brown soil of desert steppe (see Figure 13). Rainwater penetrates in soil at the depth of only 20-
25 cm. Soils in the project area are seasonally frozen with depth of the active layer ranging from 2
to 4.1 m. Average annual soil temperature is 1.6°C warmer compared with air temperature. From
November to March the soil temperature is below 0°C and from April temperature rises from 5–
9°C and it reaches 15-18°C in May as can be seen in Figure 1414.
55. Comprehensive engineering and geological survey of soils in the project area was
conducted. The topsoil thickness is around 0.3 – 0.4 m. The topsoil overlays silt or gravel sand
and clay layers.
30
Figure 13: Soils in Zamyn Uud Soum
Project site
Source: Regional Master Plan for the Prevention and Control of Dust and
Sandstorms in Northeast Asia. Appendix 4. ADB (2005).
31
56. Wind erosion of soil. Wind erosion of soil is a dynamic process of soil degradation in which
the share stress applied on the ground surface by wind exceeds the ability of the soil particles to
resist separation and transportation. The wind erosion depends on the climatic factors, soil
properties, landscape characteristics and availability of vegetation. In Zamyn Uud area all-
increasing population and infrastructure building activities put increasing anthropogenic load to
land and cause intensification of soil degradation. As can be seen from Figure 15, area around
Zamyn Uud town is the subject of the most intense erosion. Project area of logistic terminal
corresponds to moderate erosion category according to current assessment.
57. The National Plan of Action to Combat Desertification in Mongolia (1997) proposed a pilot
project aimed at stabilization of sandy soil grazing land to protect Zamyn Uud border railway
station and town. The long-term (10 years) program has been implemented by the local
administration together with the Geo-Ecological Institute on combating desertification reduction of
sand movement. In the frame of the program, 240 ha of pastures have been fenced off, 66
thousand trees have been planted, and 1 well dug out.
Figure 14: Soil Temperature in Zamyn Uud area
Source: Regional Master Plan for the Prevention and Control of Dust and Sandstorms
in Northeast Asia. Appendix 4. ADB (2005).
32
Figure 15: Soil Erosion in Zamyn Uud Soum
Project site
Source: Regional Master Plan for the Prevention and Control of Dust and Sandstorms in Northeast Asia.
Appendix 4. ADB (2005).
33
4.2.2. Climate and Air Quality

58. Overview. Climate. The climate of Gobi Desert is extremely continental and dry. Winters
are severe, springs are dry and cold, and summers are warm. The annual temperatures vary from
−40°C in mid-winter to +45 °C – in mid-summer. The rainfall is mostly in summer. Depending on
the location, the annual total precipitation ranges from less than 50 mm in the south of the
Mongolian Gobi to more than 200 mm in the north-east. The dominant wind directions are west and
north-west.
59. Air Quality. In general, the air quality is good with the exception of cases when dust is
generated by sandstorms. Air pollution caused by anthropogenic factors is typically low in
magnitude as compared with natural factors and easily dispersed in the atmosphere. Dust may
emit during digging and excavation. Therefore, potential dust concentration, its geographical
distribution in spring time have considered as from area source with 3200x900m geometer size at
project area. The ISCLT3 model is used to integrate concentration of particulate matter (dust) in
the simulation. Seasonal mean meteorological data field of Zamyn Uud entered as major inputs
and actual model is based on Gaussian dispersion equation. According to model output, the dust
could transport to the downstream of dominant wind (north-west) up to 5 km as longest distance
from the source (0.1mg/m3). Concentration reaches 1-3mg/m3 near the source area (Figure 16),
However, concentration value is less than national standard level.
Figure 16: Potential Dust Concentration (mg/m3) and Its Distribution in Spring Time
(Calculated by ISCLT3 model)
2000
1000
-1000
-2000
-3000
-4000
-5000
-2000 -1000 0 1000 2000 3000 4000 5000 6000
34
60. The Project Area. In accordance with the classification of climatic zones for Mongolia the
Zamyn Uud area belongs to dry and warm climatic zone. Annual precipitation is comparatively low
and there is no permanent snow cover during winter. Strong winds occur frequently in the area.
61. The influence of the orography on the climate is rather weak. It is reported that winter’s
average temperatures range from -14.0 to -18.4 C and summer average temperatures - from 20.6
to 23.2C as can be seen in 7 and annual average temperature is 3.9°C. Inter-annual variations of
average temperatures are dependent on the specific year.
Figure 17: Annual Average Temperature in Zamyn Uud
Source: Regional Master Plan for the Prevention and Control of Dust and Sandstorms in
Northeast Asia. Appendix 4. ADB (2005).
62. The average annual precipitation in Zamyn Uud is 123.5 mm. Of this, winter monthly
precipitation varies from 2.3 to 2.6 mm (in total 7.8 mm), which is around 6% of the total
precipitation. In the summer monthly precipitation ranges from 17.3 to 33.9 mm (in total 84.9 mm),
which is about 69% of the total precipitation. Therefore, the summer precipitation is of
comparatively greater intensity than winter, and the evaporation is higher due to hot soil surface as
well (Table 5).
63. The annual average speed of wind is 2.9 m/s; in spring its magnitude reaches up to 4.2 m/s.
Prevailing wind directions are west and northwest with 50% of frequency. Calm conditions can be
observed in 43% of the total wind occurrence during the year (Table 6). The wind rose for Zamyn
Uud area is shown in Figure 188.
64. Dust and Sandstorms (DSS). The frequency of the dust and sandstorms in the project area
is the highest in Mongolia and amount to 31 per year with the maximum in April and May, and days
with drifting sand 47.5. Typically DSS occur in the afternoon, and rarely in the night-time. It is
reported that the duration of the sandstorms in Gobi desert is 1.5 – 6 hours. The DSS substantially
limit visibility, cause air pollution, and pose a problem of drifting sand.
35
Table 5: Average Climate Variability of Zamyn Uud

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Temperature, °C -18.4 -14.0 -4.1 6.5 14.7 20.6 23.2 21.1 14.1 4.8 -6.5 -15.7 3.9
Precipitation, mm 1.6 1.1 1.6 3.9 8.5 17.3 33.9 33.7 12.0 6.0 2.3 1.5 123.5
Wind speed, m/c 2.3 2.6 3.2 4.2 3.9 3.0 2.5 2.3 2.6 2.7 2.7 2.4 2.9
Source: Zamyn Uud Meteorological Station, 1961-2006.
Table 6: Wind Direction Frequency of Zamyn Uud

Wind direction N NE E SE S SW W NW Calm
Frequency, % 7 6 11 6 6 14 23 27 43
Figure 18: Wind Rose for Zamyn Uud
N
30
25
NW NE
20
15
10
5
W 0 E
SW SE
65. In 2005, a Regional Master Plan for the Prevention and Control of Dust and Sandstorms
(DSS) in North-East Asia has been prepared by ADB, UNCDD, UNESCAP, UNEP and NEASPEC
countries (PRC, Japan, Mongolia, and Republic of Korea). It included two components:
establishment of the regional network for monitoring dust and sandstorms, and demonstration
projects for the prevention and control of dust and sandstorms. One of the issues in focus of the
Regional Master Plan in Zamyn Uud Area is “Combating land degradation to prevent and control
DSS”, with a preventive measure proposed “Windbreak, shelterbelt along the road and rail link
from Ulaanbaatar to Zamyn Uud”, as well as rehabilitation measure: “Revegetation and tree
planting”, and development measure: “Wastewater re-use; Model forest planting with waste water
irrigation, and Alternative energy”.
66. In this region, coping with extreme wind is important for any construction phase such as
likely to occur once within five years and ten, fifty etc. For example relevant maximum daily wind
speed at Zamyn Uud is recorded from 16 to 30 m/s according to monitoring of 1961-2009. That
condition occurs in mainly spring time and usually visibility gets bad less than few hundred meters.
A return period of wind speed determined as in Table 7.
Table 7: Annual maximum wind speed at Zamyn Uud during 1961-2009
Maximum wind speed, m/s 16.0 18.0 20.0 24.0 28.0 30.0
Return period, years 1.0 1.5 2.0 3.5 5.6 13.0
Source: Zamyn Uud meteorological station.
67. Air quality. The air quality in the project area depends on both natural and anthropogenic
factors. The natural factors are related mostly to frequent sand storms which raise sand or dust
36
from the ground and pollute the atmosphere. Anthropogenic factors include generation of fugitive
dust by trucks moving on earth tracks or damaged asphalt, vehicular emissions. These factors
combined provide even more intense air pollution.
68. Environmental monitoring data for Zamyn Uud area is available for air quality only (dust
pollution). The meteorological station in Zamyn Uud which is a part of national monitoring network
for dust storms monitors only “dust parameters”: TSP and PM-10. Dust concentrations in Zamyn
Uud are dependent to a considerable degree on natural factors such as dust storms, while
anthropogenic ones cause local pollution. Monitoring of PM-10 has begun since September 2007.
The highest maximum hourly concentration of PM-10 (814 g/m3) has been recorded during the
dust storm in spring 2008. Over the monitoring period the maximum average daily concentration of
PM-10 reached 198 g/m3. Sampling of TSP, PM-10, and PM 2.5 is done hourly. Other pollutant
substance such as CO2, NO2, SO2, is not significant in this region.
69. Ambient air quality standards. National Air Quality Standard of Mongolia is shown in Table
8. For the Project the significant air pollutant is PM-2.5. For this pollutant, Mongolian standard is
higher than other countries such as US and Japan 1 . However, considering the Mongolian dry
weather and geological condition, the Mongolian standard is reasonable.
Table 8: Ambient Air Quality Standards in Mongolia (MNS 4585:2007)
Item Average period of Unit Allowable level
measurement
Chemical parameters
SO2 Sulfur dioxide Average of 10 minutes 500
Average of 20 minutes µg/m3 450
Average of 24 hours 20
Annual average 10
CO Carbon monoxide Average of 30 minutes µg/m3 60000
Average of one hour 30000
NO2 Nitrogen dioxide Average of 20 minutes µg/m3 85
Annual average 30
O3 Ozone Average of 8 hours µg/m3 100
Dust /total suspended particles/ Average of 30 minutes µg/m3 500
Annual average 100
Dust of large size /PM10/* Average of 24 hours µg/m3 100
Annual average 50
Dust of small size /PM2.5/* Average of 24 hours µg/m3 50
Annual average 25
Lead /Pb/* Average of 24 hours µg/m3 1
Annual average 0.5
Benzapyren /C2H12/* Average of 24 hours µg/m3 0.001
Physical parameters
Noise*
Day time /07-23/ Average of 16 hours dBa 60
Night time /23-07/ Average of 8 hours 45
Note: * - will be used as a quality index of indoor air
Source: Mongolian Agency for Standardization and Metrology, 2010.
1
Both US and Japan, PM-2.5 standard of 24 hour average is 35 µg/m3 and yearly average is 15 µg/m3.
37
4.2.3. Hydrology
70. Overview. The resources of surface water in South Gobi are very limited and there is only
a few perennial water bodies in the area located in depressions, which fill with water only during
rainy days. Therefore, the major element of the hydrology is groundwater. Although the extent of
groundwater resources in South Mongolia is not known with any precision2 it seems that it will be
sufficient to support demand growth until at least 2020. However, rapid development of the mining
industry in the South Gobi raises an issue of alternative sources of water. Two projects aimed at
long-distance water transportation from Central Mongolia have been proposed: Herlen – Gobi
Pipeline project (with a branch pipeline to Zamyn Uud) and Orhon – Gobi Project. The cost of the
projects was assessed as $400 million and $500 million, respectively.
Groundwater. The hydrogeology of the South Gobi is characterized by limited recharge to the
upper aquifers and the presence of deeper discontinues (local) aquifers of different depth,
size, lithology and productivity, mainly containing fossil water with frequently water of poor
quality.
71. Wastewater re-use. As mentioned above, one of the demonstration projects to be realized
within the frame of the Regional Master Plan for the Prevention and Control of Dust and
Sandstorms in North-East Asia utilizes wastewater of Zaman-Uud to irrigate the wind- and sand-
breaks. An underground wastewater collection tank and irrigation pump will be installed near the
demonstration plot to provide up to five tons of household water to grow trees of native species.3
72. Water standards. Table 9, Table 10, and Table 11 present Mongolian standards for
ambient water quality, wastewater discharged into water bodies and soil respectively.
Table 9: Ambient Water Quality Standards
Contents Unit Allowable concentration
1 pH 6.5-8.5
2 Dissolved O2 mgO/l Less than 6.4
3 Biochemical oxygen demand mgO/l 3
4 Chemical oxygen demand-Mn mgO/l 10
5 Ammonium NH4 -N mgN/l 0.5
6 Nitrite NO2 -N mgN/l 0.02
7 Nitrate NO3 -N mgN/l 9.0
8 Phosphorus – PO4-P mgP/l 0.1
9 Sulfur oxide SO4 mg/l 100
10 Manganese Mn mg/l 0.1
11 Copper Cu mg/l 0.01
12 Chromium Cr6+ mg/l 0.01
13 Detergent mg/l 0.1
Note: Concentration of dissolved oxygen in water has to be less than 6mgO/l
during the warm season, less than 4 mgO/l - when water is covered with ice.
Source: Environmental Laboratory, NAMHEM.
2
Southern Mongolia Infrastructure Strategy. Discussion Draft April 2009. World Bank.
3
UN Economic and Social Commission for Asia and the Pacific. Fifteenth Senior Officials Meeting. Review of
Programme Planning and Implementation: Implementing the Regional Master Plan for the Prevention and Control of
Dust and Sandstorms in North-East Asia. Note by the Secretariat.
38
Table 10: Industrial Wastewater Quality Standard (to water)

Unit Acceptable concentration
o
1 Water temperature C 20
2 pH - 6-9
3 Biochemical oxygen demand (BOD) mgO/l 20
4 Chemical oxygen demand (COD) mgO/l 50
5 Mn-O mgO/l 20
6 Substance could be weighted mg/l 35
7 Dissolved sodium mg/l 800
8 Cyanide mg/l 0.05
9 Phenol mg/l 0.05
10 Mineral Oil mg/l 1
11 Fat mg/l 5
12 Sulphide mg/l 0.2
13 Copper mg/l 0.3
14 Cadmium mg/l 0.03
15 Manganese mg/l 0.5
16 Mercury mg/l 0.001
17 Arcenic mg/l 0.05
18 Nickel mg/l 0.2
19 Selenium mg/l 0.02
20 Iron mg/l 1
21 Plumb mg/l 0.1
22 Total Chromium mg/l 0.3
23 Chromium Cr+6 mg/l 0.05
24 Zinc mg/l 1
25 Ammonium mgN/l 8
26 Total Nitrogen mg/l 20 2.51 21
27 Total phosphor mg/l 1.5 0.31
28 Remained chloride mg/l 1.5
29 3 chlorine ethylene mg/l 0.2
30 4 chlorine ethylene mg/l 0.1
31 Phosphor organic compound mg/l 0.2
Source: National Center of Standardization and Metrology.
39
Table11: Industrial Wastewater Discharge Standards (Water into Soil)

Compositions Unit
o
1 Water temperature C 25
2 Smell - Without unpleasant smell
3 pH 6-9
4 Biochemical oxygen demand mgO/l 50
5 Chemical oxygen demand mgO/l 100
6 Mn-O mgO/l 30
7 Substance could be weighted mg/l 150
8 Dissolved sodium mg/l 1000
9 Cyanide mg/l 0.2
10 Mineral Oil mg/l 3
11 Fat mg/l 10
12 Sulphide mg/l 0.5
13 Copper mg/l 0.5
14 Cadmium mg/l 0.05
15 Manganese mg/l 1
16 Mercury mg/l 0.001
17 Arcenic mg/l 0.1
18 Nickel mg/l 0.5
19 Selenium mg/l 0.02
20 Iron mg/l 2
21 Plumb mg/l 0.5
22 Total Chromium mg/l 0.5
23 Chromium 6 mg/l 0.1
24 Zinc mg/l 2
25 Ammonium mgN/l 15
26 Total Nitrogen mg/l 30
27 Total phosphor mg/l 5
28 Pathogen and other bacteria - Not detected
73. Potable water. Table 12, Table 13, and Table 14 provide standards on potable water,
namely characteristics, and the chemical composition of potable water. These standards are used
to monitor the quality of drinking water in wells and springs, in particular if they can be affected by
construction activities.
Table 12: Characteristics of Potable Water
Characteristics Unit Acceptable level
1 Taste Score 2.0
2 Smell Score 2.0
3 Color Grades 20.0
4 Turbidity Mg/l 1.5
Note: When color and turbidity is less than 1500mg/l and hardness is less than 10mg.eq/l, water could
be used for certain period, based on hygiene and sanitary assessment of authorized organization.
40
Table 13: Chemical Composition of Potable Water
Composition Unit Acceptable concentration

1 Molybdenum (Mo) mg/l 0.07
2 Barium (Ba) mg/l 0.7
3 Boron (B) mg/l 0.5
4 Copper (Cu) mg/l 1.0
5 Calcium ion (Ca2+) mg/l 100.0
6 Magnesium ion (Mg2+) mg/l 30.0
7 Manganese (Mn) mg/l 0.1
8 Sodium (Na) mg/l 200.0
9 Phosphate ion (PO42+) mg/l 3.5
10 Fluorine (F) mg/l 0.7-1.5
11 pH - 6.5-8.5
12 Selenium (Se) mg/l 0.01
13 Strontium (Sr) mg/l 2.0
14 Sulfate oxide ion SO42+ mg/l 500.0
15 Hardness mg.eq/l 7.0
16 Chlorine ion (Cl-) mg/l 350.0
17 Arsenic (As) mg/l 0.01
18 Hydrogen Sulfide (H2S) mg/l 0.1
19 Chromium (Cr) mg/l 0.05
20 Dehydrated remaining mg/l 1000.0
21 Uranium (U) mg/l 0.015
Note: When concentration of Dehydrated remaining is less than 1500mg/l and hardness is less than 10mg.eq/l,
the water could be used for certain period, based on hygiene and sanitary assessment of authorized
organization.
Table 14: Chemical Composition of Potable Water Contaminated by Households and Industries
Compositions Unit Acceptable concentration
Non organic substances
1 Beryllium (Be) mg/l 0.0002
2 Cadmium (Cd) mg/l 0.003
3 Mercury (Hg) mg/l 0.0005
4 Cyanide (CN) mg/l 0.01
Organic substances
5 Benzene C6H6 mg/l 0.01
6 Xylene mg/l 0.5
7 Acetic acid mg/l 0.2
8 Methylene chloride CH2CL2 mg/l 0.02
9 2 - chloride ethane mg/l 0.03
10 3 chloride ethane mg/l 0.07
11 4 chloride ethane mg/l 0.04
12 Phenol derivatives mg/l 0.002
13 Styrene mg/l 0.02
14 Toluene mg/l 0.7
15 Ethyl benzene mg/l 0.3
74. The Project Area. A perennial water body – Sevhuuliyn Toyrom is located to the north-east
of the project area in the depression behind the border protection net. It fills with water only during
rains in summer and remains dry in the rest of the year.
41
75. Groundwater resources in the Project Area are located in rocks with local, limited
groundwater resources. The water supply for Zamyn Uud is from 8 wells (with depth ranging from
110 to 120 m) located to the east of Zamyn Uud. The town’s water consumption currently ranges
from 30,000 to 37,000 m3 per month. The water is delivered to Zamyn Uud through 2 pipelines with
a diameter of 150 mm. Another pipeline with a diameter of 100 mm supply water to the Customs.
Due to high mineralization of water, pipelines are subject to corrosion and clogging. Water is
supplied to the pipeline network without any additional treatment.
4.2.4. Natural Disasters

76. Desertification and Dust and Sandstorm (DSS) Phenomena. In accordance with the UN
Convention to combat desertification the term "desertification" means land degradation in arid,
semi-arid and dry sub-humid areas resulting from various factors, including climatic variations and
human activities. As one of the countries affected by desertification Mongolia ratified the
Convention in September 1996. The desertification have socio-economic and environmental
consequences such as loss of soil productivity, damage of vegetation, dust storms and air pollution,
health problems, ecological refugees, etc. One of the most disastrous consequences of
desertification in the North-East Asia is dust and sandstorm phenomena (DSS) which causes
substantial economic losses and poses health problems for people over the vast region. The DSS
was in the focus of the ADB’s project aimed at development of the Regional Master Plan for the
Prevention and Control of Dust and Sandstorms in Northeast Asia. One of the focus areas of this
project was Erinhot/Zamyn Uud cross border area, which included the whole Zamyn Uud soum.
The issues considered in this project were rangeland/livestock management, afforestation, waste
water reuse, ecotourism, etc.
77. Dzud (or zud). Dzud is a natural winter disaster characteristic of Mongolia which is related
to mass livestock loss due to poor access to pastures in winter. Dzud can be caused by droughts in
the previous vegetation season or harsh winters including ice cover preventing access to pastures,
snow storms, or overgrazing. Dzud affect herder households that depend on the livestock.
78. Extreme rainfall. Annual precipitation in Zamyn Uud region is relative small as 123.5mm.
The selected project area is almost flat plain without any significant depression and hills. There are
no clearly formed beds or channels for surface runoff, only very shallow depressions; however,
these could form water due to high intensity rainfall. Difference elevation between lowest and
highest point of project area is from 959 to 960m (43045.21’8’’ 111052.38’8’’; 43044.55’4’’,
111052.51’9’’). Therefore, a particular interest concerned with design or build flood protection and
water diversion channel, it is needed to know probable maximum precipitation. Its value
corresponding return period is shown in Table 15.
Table 15.Annual daily maximum precipitation at Zamyn Uud during 1961-2009
Maximum daily precipitation, mm 7 14 20 25 27 31 37 89
Return period, years 1 1.5 2.1 2.6 3.5 5 9 45
79. compare to world average Annual temperature of country is increased by 2.10C and there is
no significant change of precipitation. According to climate change scenarios, precipitation will
increase less than 30mm and temperature will increase within 0.5-60 in Zamyn Uud region next 100
years. It is indicating that more dryness is expecting due to high increase of temperature and
evaporation. Also frequency and magnitude of extreme weather will be projected to increase in this
region.
42
4.2.5. Noise, Vibration and Electromagnetic Interference

80. Overview. Observations in regard to noise and vibration and sensitive receivers in the
project area are as follows:
■ The background noise at Zamyn Uud railway station and border facilities area
varies. Noise levels are relatively high during operations of the railway, transportation of
the freight by roads to the existing terminals, and operation of terminals and low during
periods of inactivity.
■ Due to economic crisis the current noise levels are considerably lower than those
recorded in previous years.
■ Vibration can only be an issue in the proximity to the railroad track and there is no
residential areas close to the tracks.
■ There is no electrification to the railroad; therefore no electromagnetic interference
is anticipated.
81. Mongolian noise standards have been established as indicated by Table 16. Excessively
high noise levels are a particular concern for “sensitive receivers”, i.e. hospitals, schools, or
ecologically sensitive areas for example.
Table 16: Standard on Allowable Noise Levels at Domestic and Public Buildings
Noise pressure level (db) at different geometric average
noise equivalent
Noise level and
frequencies
level /dba/
1000
2000
4000
8000
Location and
125
250
500
63
time
1 In rooms of hospital and sanitarium, and surgery rooms

Daytime 53 48 40 34 30 27 25 23 35
Nighttime 55 44 35 29 25 22 20 18 30
2 In consulting room of hospitals
Daytime 63 52 45 39 35 32 30 38 40
3 In the classroom of all type of schools, lecturers’ rooms, library, and conference halls
Daytime 63 52 45 39 35 32 30 28 40
4 In residential area, rest homes, dormitories and kindergartens
Daytime 63 52 45 39 35 32 30 28 40
Nighttime 55 44 35 29 25 22 20 18 30
5 In rooms of hotels, and hostels
Daytime 67 57 49 44 40 37 35 33 45
Nighttime 53 48 40 34 30 25 25 25 35
6 In waiting halls of hotels, hostels and rest homes
Daytime 71 61 54 49 45 42 40 38 50
7 In cafés and restaurants
Daytime 75 66 59 54 50 47 45 43 55
8 In shopping centers, public service rooms, and waiting rooms of railway station
Daytime 79 70 63 58 55 52 50 49 60
Note: If there is air conditioning, humidifier and air heater in a room, Noise pressure level (db) at different geometric
average frequencies must be the noise level less 5db.
Source: Standard UST 3826-85. Allowable Noise Levels in Domestic and Public Buildings.
43
82. The Project Area. The Project Area is located at a distance of 3-4 km of the nearest
populated area (Zamyn Uud) and it is unlikely that there will be a risk of noise effects to people’s
health, except occupational one.
4.2.6. Solid Waste

83. Domestic waste is generally generated by Zamyn Uud town and construction waste – by
new developments in proximity to Zamyn Uud. There is a landfill site located in the vicinity of the
project area. According to the local administration, the landfill area is used for dumping all types of
solid waste including domestic, and construction. When construction finishes, the landfill will be
covered as part of logistic center construction activities in order to help the local government’s
landfill relocation plan.
4.3. Ecological Resources

84. Ecological resources of the potentially impacted environment are defined to include the
area’s flora and fauna, and specially protected areas.
4.3.1. Ecosystems, Flora and Fauna

85. Ecosystems. As can be seen in Figure 19 the ecosystem in the vicinity of Zamyn Uud
(specifically to the west of Zamyn Uud) has undergone significant change due to anthropogenic
activity. To the north and north-west of the town the condition of the ecosystems is assessed from
stable to slightly altered.
Figure 19: Map of Ecosystem’s Condition in Zamyn Uud Soum
Project site
44
86. Flora. In accordance with Mongolian botanical and geographical classification the flora of
Zamyn Uud area belongs to the Eastern Gobi desert steppe region of the North Gobi desert. In
general, this region has sparse vegetation communities of intermediate type between desert and
desert steppe. Flora of the project area belongs mostly to grasses – undershrub deserts. The
prevalent flora species are Anabasis brevifolia, Artemisia xerophytica, Ajania achilloides, Stipa
glareosa, Stipa gobica, Reamurea songorica, Caragana korschiniskii, Caragana brachypoda and
Chenopodium frutescens. Indigenous flora in this region includes Astragalus junatovii and rare
specie - Caragana brachypoda.
Figure 20: Vegetation of the Zamyn Uud Soum
Project site
45
87. As was mentioned above under Climate and Air Quality and Hydrology headings the
demonstration project will be implemented under the Regional Master Plan for the Prevention and
Control of Dust and Sandstorms in North-East Asia. A simple irrigation system will be designed
within the frame of this project to irrigate wind- and sandbreaks. The most drought-resistant
locally available species with potential market values such as Caragana arborescens, Tamarix
ramosissima, Salix pasammophila, Glycyrrhiza glabra, etc are proposed to be planted in the
project.4
88. Fauna. The Project Area is largely used by the local communities as pasture land. The
amount of animals increases with better weather conditions. Desert mammals typically occur in
Zamyn Uud area. The comparative number of mammals in the area is shown in Table 17. Of
them, Salpingotus crassicauda is listed in the Red Book of Mongolia.
Table 17: Mammals inhabiting the Project Area
Mammals Relative number of the species
1 Citellus erythrogenys few
2 Phodopus Campbell few
3 Phodopus roborovskii normal
4 Cricetulus migratorius few
5 Meriones unguicultus normal
6 Allactaga sibirica normal
7 Allactaga bullata normal
8 Dipus sagitta normal
9 Cardiocranius paradoxus normal
10 Salpingotus crassicauda few
Source: Local Administration of Zamyn Uud Soum, 2009.
89. Table 18 shows the dominant bird species occurring in Zamyn Uud area. The bird
Podoces hendersoni (Mongolian Ground Jay) is listed in the Red Book of Mongolia.
Table 18: List of birds dominant in the Project Area
No Specie Occurrence
1. Pyrrhocorax pyrrhocorax normal
2. Corvax corax few
3. Podoces herdersoni normal
4. Acrocephalus bistrigiceps few
5. Silvia nisoria few
6. Silvia nana normal
7. Phylloscopus inornatus normal
8. Oenanthe deserti many
9. Monticola saxatillis normal
10. Panurus biarmicus normal
11. Passer domesticus many
12. Passer ammodentri few
13. Bucanetes mongolicus normal
Source: Local Administration of Zamyn Uud Soum, 2009.
90. The following bird species are included in the Convention for the International Trade of
Endangered Species (CITES) animal protection:
■ Milvus miqrans - Black Kite;
■ Buteo hemilasias - Upland Buzzard;
4
UN Economic and Social Commission for Asia and the Pacific. Prevention and Control of Dust and Sandstorm from
Source Areas in China and Mongolia. Draft Project Document.
46
■ Aquila nipalensis - Steppe Eagle;
■ Gypaetus barbatus - Lammergeyer;
■ Neophron percnopterus - Egyptian Vulture;
■ Aeqypius nomachus - Cinereous Vulture;
■ Falco cherrug - Saker Falcon;
■ Falco pereqrinus - Peregrine Falcon;
■ Falco subutyo - Eurasian Hobby;
■ Falco tinnunculus - Common Kestrel;
■ Anthropoides virgo - Demoiselle Crane;
■ Otis tarda - Great Bustard;
■ Chlamydotis undulate - Houbara Bustard;
■ Bubo bubo - Eurasian Eagle Owl; and
■ Athene noctua - Little Owl.
91. Among reptiles Asian viper (Gloydius halys), steppe ribbon racer (Psammophis lineolatus),
Gobi racerunner (Eremias przewalskii), multi-oscillated racerunner (Eremias multiocellata),
Mongolian racerunner (Eremias argus), and Tuva toad-head agama (Phrynocephalus versicolor)
can be seen. The list of threatened vertebrate in the Southern Gobi region includes in Table 19.
Table 19. List of Threatened Vertebrate Species found in the South Gobi Region
Red List Category
Scientific Name Common Name
National Global
Mammals
Ovis ammon Argali EN NT
Gazella subguttorosa Goitered gazelle VU VU
Procapra gutturosa Mongolian gazelle EN LC
Equus hemionus Asiatic wild ass EN EN
Marmota sibirica Siberian marmot EN EN
Euchoreutes naso Long-eared jerboa VU LC
Spermophilus alashanicus Alshan ground squirrel EN LC
Uncia uncia Snow leopard EN EN
Birds
Falco cherrug Saker falcon NE EN
Chlamydotis undulata Houbara bustard NE VU
Fish
Oreoleuciscus humilis Small osman VU NE
EN=endangered, VU=vulnerable, NT=near threatened, LC=least concern, NE=not yet evaluated.
Source: Southern Gobi Regional Environmental Assessment. Discussion Draft. March 2009.
92. The endangered species inhabit mostly remote areas of the Southern Gobi region as they
are subject of poaching and illegal trade, degradation and fragmentation of habitat, competition
with domestic livestock, and physical disturbance in vicinity of such settlements as Zamyn Uud.
Due to these facts and comparatively small area occupied by the Zamyn Uud Logistics Center,
the possibility of substantial impacts on the endangered species is remote. This fact was
confirmed the consultant’s site survey in August 2010.
47
4.3.2. Protected Areas
93. Overview. The total amount of the protected areas of all levels in Dornogovi Aimag was
95 in December 2007. In total, they occupy 49,870.2 ha of the Aimag territory or 1.7%.5 Of them,
15 protected areas were adopted by Aimag level representative hurals, and 80 by soum level
representative hurals. Protected areas of national significance are located mainly in the east and
east-south part of the Aimag.
94. The Project Area. There are no protected areas of local or national significance in the
project area or in the proximity to it.
4.4. Economic Development

95. Economic development of the project area is defined to include industrial and agricultural
sectors, tourism, land use characteristics, and non-transport infrastructure.
4.4.1. Industry
96. Dornogovi Aimag has no large-scale industry. The major sectors in Aimag are power
industry, food industry, small scale clothing manufacturing, and construction materials. In Zamyn
Uud soum, the major sector is food industry. The total industrial output at the Aimag and soum
level is shown in Table 20.
Table 20: Total Industrial Output in Dornogovi Aimag and Zamyn Uud soum, million tugrug
Total production Sold Products
Year 2005 2006 2007 2005 2006 2007
Zamyn Uud 128,463.6 100,025.7 193,058.5 140,379.8 118,763.1 243,026.9
Dornogovi Aimag - Total 5,848,800.0 5836131.6 7762235.1 4996200.0 9012860.0 6602900.3
Source: Dornogovi Aimag Socio-Economic Statistics Report (2007).
4.4.2. Agriculture
97. The agriculture is dominated by animal husbandry. Goats and sheep are prevalent among
livestock of Zamyn Uud soum. Table 21 shows livestock population in the Project Area. The
statistical data on agriculture show the stable growth of livestock population in Zamyn Uud.
Uncontrollable growth of the livestock and unsustainable livestock farming can result in higher
loads to vegetation cover, and, as a consequence, desertification of the area.
Table 21: Livestock Population in Zamyn Uud soum

2005 2006 2007 2008 2009
Goat 5,476 4,064 5,555 7,001 9,583
Sheep 2,908 2,650 3,554 4,817 6,234
Cow 522 398 473 615 841
Horse 1,145 832 970 1,135 1,447
Camel 321 305 380 432 559
Total: 10,372 8,249 10,932 16,008 20,673
Source: Dornogovi
Source: Dornogovi Aimag
Aimag Socio-Economic
Socio-Economic Statistics
Statistics Report (2009)
Report (2009).
5
Agency on Land Affairs, Geodesy and Cartography. WWF Mongolia Programme Office. Report on Integration of Data
on Local Protected Areas into Geographic Information System. Ulaanbaatar. 2008.
48
4.4.3. Non-transport Infrastructure
98. Non-transport infrastructure comprises water supply, wastewater systems, power lines,
and communications.
99. Water supply systems. Due to lack of surface water resources, the only source of drinking
water for Zamyn Uud is groundwater. Groundwater is fed into the water supply system meets
directly from wells without any treatment. Despite water is hard and causes corrosion and
clogging of piping system, its physical and chemical, and bacteriological characteristics meet the
requirements to drinking water.
100. Power lines. Zamyn Uud is linked with the national grid by a 10-megawatt transformer
substation. The capacity of the power supply can be assessed as adequate.
101. Communications. It is reported that twelve-channel fiber optic cable currently serves
Zamyn Uud needs. Its capacities will be sufficient to cover needs of Zamyn Uud and Free-Trade
Zone.
4.4.4. Tourism
102. Overview. Tourism is one of the priority sectors of the economy of Mongolia. In 2008, it
generated about 10% of the national GDP. In Eastern Gobi ecotourism plays an important role.
Eco-tourism involves traveling to relatively undisturbed natural areas with the specific object of
studying, admiring, and enjoying the scenery and its wild plants and animals, as well as any
existing cultural aspects found in these areas, without spoiling the environment.
103. The Project Area. There are no substantial tourist resources in the Dornogovi Aimag.
Among tourist attractions Khamaryn and Dashchoilon Khural Monasteries, and several museums
of local significance can be mentioned. However, there is a good potential for eco-tourism. Zamyn
Uud is the largest border crossing point in Mongolia. The dynamics of the number of inbound and
outbound passengers through Zamyn Uud border post is shown in Table 22.
Table 22: Number of Inbound and Outbound Passengers in Zamyn Uud
2004 2005 2006 2007 2008
Outbound 465,518 552,662 624,707 766,219 809,551
Inbound 474,786 551,838 567,693 750,175 809,121
Source: Mongolian Statistical Yearbook (2008).
4.5. Socioeconomic Situation
4.5.1. Population
104. The population of Zamyn Uud in 2009 was 12,823, including 6,422 men and 6,401 women.
The dynamic of the population growth in Zamyn Uud is shown is shown in Table 23. Available
data indicate that the population of the Soum is growing by an average of 12% per year. Like the
population, the number of households in Zamyn Uud Soum, classified as urban area, is also
increasing at an average rate of 13% per year. However, the number of households living in rural
areas for the whole province seems to be increasing also, especially during the year 2008, by as
much as 59.2% from 2006 to 2009. See Table 25. About two thirds of the population in Zamyn
Uud is within the labor age, and about one third are children. Pensioners aged 60 years and
above make up only 2.1% of the population of the district as can be seen in Table 24.
49
Table 23: Dynamics of Population Growth in Dornogovi Aimag and Zamyn Uud Soum
2004 2005 2006 2007 2008 2009
Dornogovi Aimag 51682 51582 54023 53584 55638 57733
Zamyn Uud 7763 8353 9665 9808 11527 12823
Source: Dornogovi Aimag Socio‐Economic Statistics Report (2009).
Table 24: Age Distribution in Dornogovi Aimag and Zamyn Uud Soum
Children, age of 0-15 Labor age, 16-59 Pension age 60< of which over age 85
Total males females Total males females Total males females Total males females
Dornogovi 17827 8953 8874 37144 18351 18793 2762 1131 1631 142 33 116
Aimag
Zamyn 4058 2065 1993 8498 4247 4251 267 110 157 5 1 4
Uud
Table 25: Number of the Households in Dornogovi Aimag and Zamyn Uud Soum in 2006-
2009
2006 2007 2008 2009
total Rural area total Rural area total Rural area total Rural area
Dornogovi 14786 3773 15229 3891 16108 5842 17170 6008

Aimag
Zamyn Uud 2656 0 2910 0 3314 0 3864 0
105. Table 26 demonstrates some social indicators of households in Dornogovi Aimag and
Zamyn Uud Soum. It is interesting to note that the number of female-headed households for the
entire province is almost double compared to that of the district, 14.1% and 7.2% of the total
number of the households, respectively. Similarly, the number of single male headed households
for the entire province is 18 times more than that of Zamyn Uud, 7.2% and 0.4% of the total
number of the households, respectively. Also, the percentage of households with elderly
members is more than 5 times than that of the Zamyn Uud.
106. It can be deduced that the reason behind the relatively higher number of female headed
and single male headed households in the province compared to Zamyn Uud is economics. A
landlocked country, with extremely cold and dry climate and a geography that is dominated by the
Gobi Desert and steppes, rural livelihoods in Mongolia depend either on livestock herding or
employment in small regional centers like Zamyn Uud. Those who cannot find work in urban
centers go to neighboring countries, such as PRC and Russia. The statistics on the demography
of the population in Dornogovi Aimag and Zamyn Uud Soum is given in Table 27.
50
Table 26: Some Social Indicators of Households in Dornogovi Aimag and Zamyn Uud
Soum
Households with 8 Households with 4 Elderly and single Single male
Female headed
members and and more children member headed
households
more aged below 16 households households
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Dornogovi Aimag 215 177 427 370 521 528 2190 2415 984 1228
Zamyn Uud Soum 55 10 136 138 38 16 219 277 17 16
Table 27: Demographic Statistics of Dornogovi Aimag and Zamyn Uud Soum
Population Marriage Divorce Births (2009) Deaths (2009)
2008 2009 2008 2009 2008 2009 Total males females Total males females
Dornogovi Aimag 55638 57733 625 653 31 51 1438 744 694 289 164 127
Zamyn Uud Soum 11527 12823 151 180 5 13 307 157 150 37 21 16
4.5.2. Economic Base and Poverty Situation

107. Mongolia is a country where agriculture, particularly livestock herding, is the most
important source of employment. With a population of about 2.6 million, the livestock herd totals
roughly 40.3 million, or 15.5 head per person. By contrast, Zamyn Uud has only 1.1 head of
livestock per person. Thus, Zamyn Uud is an urban area whose economy is based on
government administration and trade, as in table 28. Being the country’s primary border crossing,
the people of the district are involved in the trans-shipment of goods, trading, small scale
production of food items and clothing, hotels, and small businesses. However, unlike many other
areas in Mongolia, Zamyn Uud soum does not have mineral resources or tourism sites. A
socioeconomic survey conducted in early 2010 by the TA consultants on a sample of 450
households (about 11.6% of the 2009 district household count), revealed that 227 households
(50.4% of the sample) had income below the 2007 government-set minimum monthly per capita
subsistence income level of 56,700 tugrugs. See table 29.
Table 28: Livestock population in Zamyn Uud

Animal Year 2000 Year 2004 Year 2005 Years 2006 Year 2007
Goat 4,115 3,795 5,476 4,064 5,555
Sheep 3,488 1,870 2,908 2,650 3,554
Cow 1,273 397 522 398 473
Horse 1,366 707 1,145 832 970
Camel 136 198 321 305 380
Total 10,378 6,967 10,372 8,249 10,932
Table 29: Per Capita Net Income

Per Capita Monthly Income
Responses 25,000~ 50,001~ 75,001~ 150,001~
<25,000 >200,000 Total
50,000 75,000 150,000 200,000
Count 123 104 72 93 33 25 450
% 27.3 23.1 16.0 20.7 7.3 5.6 100.0
51
108. Notwithstanding the aforementioned, only 53 households (11.8% of the sample) consider
themselves to have low income. 206 households (45.8%) consider themselves as “lower-middle
income” earning, while 9 households (2.0%) consider themselves as “middle income” earning.
There were 171 households (38.0%) that rank themselves as “upper-middle income” earning,
while 4 households (0.9%) rank themselves as “high income” earning. See table 30.
Table 30: Household Perception on Income

Income Bracket
Responses Lower Upper No
Low Middle High Total
Middle Middle Response
Count 53 206 9 171 4 7 450
% 11.8 45.8 2.0 38.0 0.9 1.6 100.1
4.5.3. Health and Safety

109. Hospital beds and Infant Mortality. The dynamics of the number of hospital beds at Aimag
level and Zamyn Uud level is shown in Table 31. There is one hospital with 35 beds, and a clinic
and a pharmacy. There are 9 physicians. With 252 live births in 2007 and 7 infant deaths. Infant
mortality rate was 27.8 per 1,000 births.
Table 31: Number of Hospital Beds in Dornogovi Aimag and Zamyn Uud Soum
2005 2006 2007 2008 2009
Dornogovi Aimag 396 396 359 363 356
Zamyn Uud Soum 35 35 45 45 55
110. Traffic accidents. There are 1,805 vehicles registered in Zamin-Uud Soum in 2009. A total
of 54 traffic accidents occurred in 2009 with 9 deaths and 63 injured. Twelve accidents were due
to drank driving and 6 are due to speeding. For traffic safety, there is a need of driver education to
prevent the traffic accidents.
4.6. Paleontological and Archeological Sites

111. No protected paleontological or archeological sites are known to exist in the project area.
It was reported by the local administration, however, that occasionally dinosaur fossils have been
found during construction works. One of these occurrences was to the south of Alternative 2 at
the depth of about 10-15 m. The local administration has contacted the paleontological institute,
but according to environmental specialist of the local administration there are no plans to protect
this area.
52
5. ALTERNATIVES
5.1. No Action Alternative

112. The “No Action Alternative” addresses the likely consequences of not undertaking the
proposed Project. In this instance, failure to build the Logistic Center would result in increasing
impediments to transport produce and manufactured goods from PRC. Therefore, it would impede
economic development and add to the obstacles to economic stability and growth in Mongolia. In
addition, it will present a substantial constraint to future improvements in the economy of local
communities. Accordingly, the “No Action Alternative” is neither a reasonable nor prudent course
of action.
5.2. Site Location Alternatives

113. Four location alternatives for the multimodal facilities have been proposed and examined
as shown in Figure 21. Three of four alternatives are located to the right side of Zamyn Uud –
Ulaanbaatar railway. The Site Alternative 1 is located between UBTZ’s Terminal 1 and Terminal 2,
the Site Alternative 2 is localized between Terminal 2 and border protection net, and Site
Alternative 2A is located at a distance of about 4 km to the north-west of Zamyn Uud. Site
Alternative 3 is located to the left side of railway in about 3 km of Zamyn Uud town to the north-
west.
Figure 21: Proposed Alternative Locations for Multimodal Facilities
Source: PPTA Consultant (based on Google Earth Image), 2010.

53
114. Comparison of the location alternatives is given in Table 29. The Site Alternative 1 has
advantages in that a lot of the existing infrastructure can be incorporated into the terminal,
considerably reducing the capital expenditure required. It also makes optimum use of the existing
structure, and provides for a seamless transition from the existing operation to the expanded one.
Its proximity to Terminal 1 provides for separate further development of this asset, which will add
to the overall benefit of the proposed facility. However, major disadvantage of this alternative is
the limited space available for the development of the multimodal facilities; besides, the
alternative can conflict with existing water supply pipeline to Zamyn Uud.
115. Site Alternative 2 is lacking those advantages of Site Alternative 1 related to the possibility
to incorporate it into existing terminal infrastructure. However, from the point of spatial
requirements the Site Alternative 2 is more beneficial because there is more room for the
expansion, although it is also not so spacious as Site Alternatives 3 or Site Alternative 2a.
116. Although Site Alternative 3 has potential for expansion to the north-west, it is missing in
the standard gauge rail access, which is a significant drawback. Besides, it will limit the
development of Zamyn Uud from south.
117. Although Site Alternative 2A location for the Logistics Center is the most remote of all the
options, it offers several advantages over other alternatives, specifically, it does conflict with
development plans of Zamyn Uud (as Site Alternative 3) or with non-transport infrastructure (as
Site Alternative 1), and can be expanded to the north-west (in contrast to Site Alternative 1, which
has no potential for expansion or Site Alternative 2 with limited potential for development. Also it
is not adjacent to the residential area as is the case with Alternatives 1 and 2. Therefore, there is
no air and noise impacts on the residential area. As for impacts on water, all sites have same
effects. Through stakeholders and public consultations the Alternative 2A was officially proposed
for the Project by the Ministry of Finance.
54
Table 32: Comparative Analysis of Multimodal Facilities Location Alternatives
Parameter Alternative 1 Alternative 2 Alternative 2a Alternative 3
Nearest site to border
The most remote This site is about 8 km
crossing (5 km). It also
Not as convenient as location of the site (10 from the border and on
is adjacent to the
Alternative 1, but can km) on the opposite side the same side as the
existing Terminal 1,
Distance from the use same access that as Zamyn-Uud. It will be town. It will be
which will allow that
border bypasses the town. accessible from the accessible from the
Terminal to be
Distance from the Regional Road that will Regional Road that will
redeveloped to take
border is 6 km connect Zamyn Uud with connect Zamyn Uud with
advantage of the new
Ulaanbaatar. Ulaanbaatar.
facilities.
potential conflict with
Non-transport
water supply pipeline for No conflict No conflict No conflict
Infrastructure
Zamyn Uud
Development of can limit development of
No conflict No conflict No conflict
Zamyn Uud town Zamyn Uud town
This site would not
require an overbridge,
but would need a feeded
The site will require
There are marshalling road leading from the
overbridge from the
yards for both track proposed Regional road.
The same road access regional road. Standard
gauges beside this site. The major restraint is
will be possible, but not gauge rail access will be
Truck and train It can also be accessed the absence of standard
as convenient. The use extended from fuel
access directly from the border gauge rail access. The
of the existing tracks will depot. Wide gauge rail
crossing via a bridge standard gauge would
also be possible. access will be extended
proposed to cross over need to cross the main
from Zamyn-Uud station
the main rainway track tracks, creating a
2.
potentially dangerous
and difficult intersection
to be controlled.
Currently this traffic cuts
This site is on the same
through the town and
side as the town. It is
across a railway
accessible from the
crossing. It is possible
border by driving
to provide alternative
Truck traffic will be through the main street
access via an
The same result is directed through an of Zamyn Uud. A
Truck traffic overbridge that leads
applicable to Alternative overbridge linking the bypass route via the
through from the intersection of
2. Regional Road and Regional road and a
the Regional road and
Alternative 2a spur road feeding the
the border crossing
site will be practical, but
road. This will take all
may not avoid having
truck traffic (other than
truck traffid in the town
local goods) off the
unless strcitly policed.
suburban streets.
Several short ramp
There are adequate
This site can access the tracks have been
shunting and storage
same facilities as constructed at this site.
tracks available in both Currently there are no
Existing Alternative 1, but is less They are broad gauge
gauges at this site. existing infrastructure on
infrastructure practical as it is only, and provision of
Additionally there are the site
bisected by the standard standard gauge access
existing services
gauge yard. would be expensive even
available.
if it is practical.
This site is constrained
by existing rail tracks on
all sides. However there
is sufficient room to
The site is very
establish a facility that
constrained by existing From engineering point Alternative 3 has the
will serve in the medium
tracks. It is also cut into there is no limits for great advantage of
Capacity for term. A second facility
segments by the tracks. expansion. Expansion is being a large green field
expansion would need to be
Design of an efficiently only limited by land site. There is scope for
planned for to cater for
operating facitiy would ownership. unlimited expansion.
possible further growth.
be difficult.
The site allows for the
incorporation of the
existing Terminal 2
facilities
Geotechnical All sites have similar favorable characteristics

Alternative 2a will be Alternative 3 site will be
less disadvantaged once less disadvantaged once
Currently the population
the satellite town is the satellite town is
Servicing and and service industries This site has similar
established. However established. However
staffing are situated closest to access to local services.
this will be not be this will be not be
this option.
developed in the short developed in the short
term. term.
Noise Medium/High impact Medium/High impact Low impact Medium Impact
Air quality Medium impact Medium impact Low impact Medium Impact
55
6. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION

MEASURES
118. The potential impacts in this environmental assessment are assessed from a number of
points described below. There will be no land acquisition or resettlement, because the selected
site is government-owned land without any prior development.
6.1. Anticipated Environmental Impacts

119. The potential impacts are grouped under three general categories – physical, ecological
and socio-economic. Construction and operational stage impacts are considered separately. The
following categories of impacts were assessed: direct impacts - those directly due to the project
activities themselves; indirect impacts - those resulting from activities arising from the Project, but
not directly attributable to it; and cumulative and induced impacts - impacts which in combination
exert an additive influence. Positive and negative effects of the Project have been distinguished
along with magnitude of impacts. Also, both impacts of the Project to the environment and
influence of environmental factors to the Project (for instance, Drifting Sand and Sandstorms)
have been considered.
6.2. Defining Project Area

120. The impacts and risk were considered in the context of the project area of influence. It
included (i) the major project site and associated facilities such as multi-modal terminal, access
railroads, power lines, water supply, sewage system; (ii) associated facilities that are not financed
by the Project, but vital for the Project; (iii) areas and communities affected by cumulative impacts
such as cumulative impact from other logistic centers, free economic zones that can result in
unsustainable development of Zamyn Uud or cumulative positive impact of wind- and sand-
breaks establishment; (iv). As the Project locates near the Mongolia and PRC border trans-
boundary impacts have been also considered along with global impacts such as drifting sand and
sandstorms.
6.3. Screening Impacts and Scoping

121. A focus of this environmental assessment report is on the identified sensitive issues and
impacts including those revealed during a series of consultations with local administrations, NGOs
and the general public. To clarify the picture, a screening matrix for the construction and
operational phases was prepared as shown in Table 30.
122. The screening exercise showed that during construction (C) and operational (O) phases
the sensitive issues and major negative environmental impacts are associated with:
■ Physical resources: the Project can contribute to desertification processes in

Eastern Gobi (and Zamyn Uud area) by affecting soil.
■ Social impacts: increased risks of STD/HIV/AIDS, other communicable

diseases (C, O), and human and drug trafficking (O).
123. On the other hand, positive impacts are anticipated with regards to:
■ Socio-Economic resources: contribution to reducing unemployment (C, O),

and economic development of region (C, O).
56
Table 33: Screening Project’s Environmental Impacts
Environmental Impacts*
Attribute Construction stage Operation stage
Impacts Feature Impacts Feature
Dust and sandsto ‐‐/‐‐‐, EP, Glo Dust and sandstorms ‐‐/‐‐‐, EP, Glo
Locomotive and
Construction vehicle emissions,
Air Quality
dust, vehicle ‐/‐‐, PE, Loc,D dust from ‐/‐‐, PE, Loc,D
emissions load/unload
operations
Water Water pollution ‐, PE, Loc,D Water pollution ‐, PE, Loc,D
Physical
Removal of
Topography/Soil topsoil, soil ‐,PE,Loc,D ‐ ‐
erosion
Geology Seismic 0, EP Seismic 0, EO
Community 0 Community 0
Noise/Vibration Construction
‐/‐‐,D Personel ‐/‐‐,PE,D
workers
Construction Operation waste,
Waste waste, used oil ‐/‐‐,PE,D used oil and ‐/‐‐,PE,D
and lubricants lubricants
Vegetation
Flora ‐/‐‐, ‐ ‐
Ecological
cover damage
Fauna Poaching ‐ Illegal trade ‐/‐‐, PE, Nat
Protected areas Critical habitats 0 Critical habitats 0
Local trade Improved flow of ++/+++, PE,

Economic +/++, PE, Loc
opportunities freight Nat/Int
Employment Employment
Social ++, PE, Loc/Nat ++, PE, Loc/Nat
opportunities opportunities
OH&S in the
OH&S in intermodal
construction ‐/‐‐, PE, Loc ‐/‐‐, PE, Loc
container handling
Health and industry
Safety potential of
Socio‐Economic
STD/HIV/AIDS ‐/‐‐,PE, Loc ‐ ‐
transmission
Conflicts with Development of
Transport
transport ‐‐,EP,Loc transport +/++,PE,Loc
infrastructure
infrastructure infrastructure
Conflicts with Development of non‐
Non‐transport
non‐transport 0 transport +/++, PE, Loc
Infrastructure
infrastructure infrastructure
Cultural and
Paleontological
archeological ‐,PE,Loc,D ‐ ‐
sites
issues
* ‐ provided that no mitigation measures are taken .
Magnitude: ‐‐‐ = high negative, ‐‐ = medium negative, ‐ = low negative, 0 = No impact, +++ = high
positive, ++ = medium positive, + = low positive; Direction of impact: PE = project to environment, EP =
environmental factors to project; Significance: Loc = Local, Nat = National, Glo = Global; Type: D =
direct, I = Indirect, C = Cumulative.
57
124. It has been recognized that the most efficient and cost-effective way to ensure that
construction works are environmentally sound is to include these requirements in the construction
contract provisions. The Project will follow the standard specifications and General Conditions of
Contract for construction contract purposes, as will be decided in the detailed design stage of the
Project. Provisions for the environment protection, occupational health and safety, HIV/AIDS, and
human and drug trafficking are included in the EMP, which specifies mitigation measures and
good management practices.
6.4. Environmental Impacts and Mitigation Measures during Construction Stage
6.4.1. Topography and Soils

125. Impacts. Impacts on the area topography will likely occur due to construction of
multimodal facilities and access railways. On the other hand, environmental factors (drifting sand)
can also have a potential impact on the multimodal facilities and access roads. The construction
activities that can impact the topography include:
■ Cut and Fill Operations. Cut and fill activities will occur during construction of the
access road and the railway tracks and multimodal facilities. They will have negative
impacts on the topography, but due to flat terrain and comparatively small area to be
affected the magnitude of these impacts is anticipated to be low or medium. Soil
erosion is the major consequence of cut and fill.
■ Quarry Operations. Crushed stone and lime stone will be required for construction
purposes. In this respect changes of the topography could result from quarry
operations. However, no quarries are available in the vicinity of Zamyn Uud. The
quarries (and associated impacts on the topography) are likely to be located at a quite
a distance from the construction site. In fact, the cost estimates for these materials
included in Table 4 assume the source as PRC with imports through Erlian.
126. The impacts assessed for the project such as impacts from development of multimodal
terminal and access roads and railroads on soils included loss of productive soil, soil erosion, and
contamination of soil. The discussion on each of the issues under correspondent headings is
given below:
■ Loss of Productive Soil. No permanent loss of productive agricultural land is
anticipated in this Project. The Project is located in a semi-desert area with some
significance as a pasture, and no importance as a crop field. Similarly, although
temporary losses of land can occur due to construction camp, storage places, detours,
no significant impacts on soils are expected.
■ Soil Erosion. Construction of the multimodal facilities and associated activities will
likely contribute to the wind erosion process through the exposure of cleared areas
(around 0.75 km2 for multimodal terminal) during cut and fill operations, excavations,
and construction of project-related structures, etc. to winds.
■ Contamination of Soil. Contamination of soil can occur as spills and leaks of diesel
and petrol, used motor oil, transmission oil, hydraulic liquids during filling operations
and maintenance, accidental spillages of petroleum products and hazardous materials,
and illegal disposal of used oils. Also used oil is sometimes used to avoid sticking of
concrete rings to concrete bed in casting yards, to oil tower of pile drivers, and even as
dust suppressant. Used engine and transmission oils pose higher risks to people health
and ecosystems as compared with fresh oils and lubricants as they contain much
higher concentrations of polyaromatic hydrocarbons (PAHs) with carcinogenic
58
properties, chlorinated hydrocarbons, and heavy metals. It is anticipated, however, that
there will likely be no considerable contamination of soils during construction due to i)
poor penetration of oils into soils, and ii) small amounts of potential spills. Provided that
precautionary and mitigation measures discussed below are implemented no
substantial contamination of soil is anticipated in the case of this Project.
127. In its turn, sand storms and drifting sands can have impacts to the Project. The project
area is a subject of intensive wind erosion processes and drifting sand can potentially affect the
multimodal facilities and access rail-roads by gradually covering it. An example of this process is
existing facilities and tracks sometimes substantially covered with sand by prevailing NW winds.
128. Mitigation. Drifting sand. The mitigation measures will include fixation of the sand in areas
adjoining the access roads/tracks with vegetation, and conservation of the existing vegetation.
129. Contamination of soil. Fuel and lubricant storage, maintenance shop and vehicle cleaning
areas should be stationed at least 300 m away from the groundwater protection area.
Construction machinery servicing should be carried out in designated locations only and such
locations should be restored. All industrial wastewater would be directed into an oil interceptor
prior to discharge. The civil works contracts will include these provisions.
130. Soil Erosion. The following preventive and mitigation measures are recommended for
incorporation in the detailed design process, bid documents and construction contracts:
o Minimizing the area of soil clearance;
o Wind- and sandbreaks will be planted during construction phase and maintained
during operation stage. Seeding will be a fast growing drought resistant native
species and seed; and
o Separation of topsoil (according to the geotechnical data the topsoil layer is around
0.3 m) from subsoil during the excavation works; reuse of topsoil as a superficial
layer.
6.4.2. Air Pollution
131. Impacts. Temporary air quality impacts are anticipated due to fugitive dust generation in
and around the construction site and access roads and due to related activities. Minor increases
in the level of carbon monoxide and nitrogen oxides (NOx) from construction equipment are
expected. Air quality impacts during construction are likely to result from the following sources:
■ Emissions from construction equipment and machines, movement of delivery
trucks;
■ Fugitive dust from earthmoving operations;
■ Increased traffic congestion in construction areas;
■ Dust generation would occur during borrowing and drilling; and
■ During the haulage of construction materials.
132. Mitigation. Potential air quality impacts due to the generation of dust and related activities
will be mitigated through avoidance and mitigation strategies combined with construction and
monitoring. The bid and contract documents will include the contractors’ environmental protection
plan preparation provisions. When the construction supervision consultant (CSC) review the plan,
CSC ensure the following measures:
59
■ Operators will be required to install emission controls;

■ Contractors will be required to spray access road surfaces, excavation and
construction sites to keep them moist for dust control;
■ Trucks carrying earth, sand or stone will be covered with tarps to avoid spilling;
■ Potential significant adverse impacts to adjacent residents or site employees
during construction will be mitigated by either discontinuing until favorable conditions
are restored, or, if warranted, sites may be watered to prevent dust generation;
■ Machinery and equipment will be fitted with pollution control devices, which will be
checked at regular intervals to ensure that they are in working order. The best available
pollution control technologies will be required;
■ Open burning will be prohibited and requirements for spraying and related dust
control measures and the proper use of solvents and volatile materials will be in
incorporated in the contract provisions; and
■ Pre-construction monitoring of existing ambient air quality will be undertaken to
provide a baseline for the measurement of air quality impacts during the construction
period.
6.4.3. Water
133. Impacts. Surface water. Small intermittent water body Sevhuuliyn Torgol is located in
about 2 km to north-west of project area, however, no impacts on surface water resources are
anticipated. No obstruction of natural flow patters of the drainage basins during construction and,
respectively, no rising or falling water, flooding, loss of drinking water sources, and inhibition of
flora growth is anticipated.
134. Groundwater. The groundwater aquifers are located deep (more than 100 m) and no water
intake points within the proposed construction zones are located in the area of potential impact. It
is unlikely that accidental spillages of fuel, oil and lubricants, and chemical substances can
contaminate groundwater due to small amounts of pollutants and deep location of aquifers.
135. Technological water. The groundwater resources in Zamyn Uud area are limited and water
quality may be unsuitable for concrete production. Water will be transported in by rail from
Sainshand.
136. Wastewater. This Project will use treated wastewater being formed at sanitary facilities at
construction site for irrigation of vegetation in wind- and sandbreaks that will be established in
vicinity to the multimodal facilities, and access roads.
137. Mitigation. Wastewater. This Project will use treated wastewater being formed at sanitary
facilities at construction site for irrigation of vegetation in wind- and sandbreaks that will be
established in vicinity to the multimodal facilities, and access roads.
138. Concrete works occupy a prominent place in construction of the Logistics Center.
Exposure of workers to high temperatures and dust in summer, especially cement dust, will
require adequate amounts of water for drinking purposes and hygiene. The re-use of the domestic
wastewater will have positive environmental impact on both stabilizing soil erosion, and
preventing shifting sand to cross the access railroads/roads by means of planting drought-
resistant species. Simple low-cost irrigation system including underground wastewater collection
tank and pump, similar to the one proposed in demonstration project will be established, and
60
young plants from tree nurseries in Zamyn Uud and Erinhot planted. Modular pre-assembled
wastewater biological treatment plant will be used to purify water prior to using for irrigation. The
system will be designed during detailed design stage.
6.4.4. Noise and Vibration Impacts

139. Impacts. The sources of likely noise pollution are construction equipment and vehicles
hauling construction materials to the construction sites and the noise generating activities at the
site itself. Concrete mixing and material movements are the primary noise generating activities
and will be uniformly distributed over the entire construction period. Construction activities are
expected to produce noise levels in the range of 80-95 dB(A). The noise produced during
construction will however not have significant impacts on the people’s health, if proper mitigation
measures described below will be followed.
140. Mitigation. It is recommended that Project bid and contract documents specify that noise
impacts during the construction phase will be mitigated by means of:
■ Source Controls. Requirements that all exhaust systems will be maintained in good
working order; proper shields, shrouds, and intake and exhaust mufflers will be
employed, operation will be at minimum power, and regular equipment maintenance
will be undertaken.
■ Construction Site Controls. Requirements that stationary machinery will be placed
as far from sensitive receptors as practical.
■ Time and Activity Constraints. Operations will be scheduled to correspond with
periods when local population would least likely be affected. Construction activities will
be strictly prohibited between 10 PM and 6 AM in the vicinity of residential area.
■ Community Awareness. Public notification of construction operations will
incorporate noise considerations; methods to handle complaints will be specified.
Disposal sites and haul routes will be coordinated with local officials.
■ Baseline and Routine Noise Monitoring as part of construction supervision. Pre-
construction monitoring of existing noise will be undertaken to provide a baseline for the
measurement of impacts during the construction period. Routine monitoring will also be
required in areas of high potential impact as specified in EMP during the life of the
Project.
6.4.5. Waste
141. Impacts. Solid waste. Among impacts solid waste have on the environment are:
■ Degradation of the aesthetic quality of the environment. Provided strong NW and
W winds in the Project Area it is expected that domestic and construction waste can be
scattered over the border area and to the territory of PRC;
■ Useless land use;
■ Formation toxic by-product as a result of solid waste decay;
■ Potential risk of injury for human being; and
■ Organic waste can support disease vectors.
142. Used oil. Used oil is formed from fresh oil during engine and transmission operation due to
heating, oxidation, nitration, cracking of polymers and other processes. It contains a number of
toxic components including polyaromatic hydrocarbons (PAH) such as benzo[a]pyrene,
61
benz[a]anthracene, pyrene, chlorinated hydrocarbons such as trichloroethanes, trichloroethylenes,
perchloroethylene, and metals (Cr, Al, Zn, Pb, Ba) that can affect human health and natural
environment. Hydraulic fluids that include brake fluids and also tractor/bulldozer/excavator
hydraulic fluids are frequently based on mineral oils.
143. Mitigation. Solid waste. Project contract documents will contain provisions requiring:
■ Construction of temporary points for collection and disposal of waste and garbage
that exclude a risk of waste dispersal;
■ Fencing the construction area; and
■ Reinstatement of lands after a completion of construction works.
144. Used oil and lubricants. An action plan to recycle used oil including engine and
transmission oil, and hydraulic liquids (Used Oil Management Plan) will be prepared. Used oils
will be collected and analyzed to identify the options for utilization. Recycling options are direct
burning in industrial furnaces or boilers, re-refining, or other chemical/physical processing of used
oil.
6.4.6. Flora, Fauna, and Protected Areas

145. Impacts. Consultations with local environmental specialist and field investigations of
consultants enable to conclude that there are no threatened or endangered flora and fauna
species, or protected areas in vicinity of the project area. Therefore, no adverse impacts to such
species are likely to occur due to construction activities.
146. Plant species located in vicinity of the construction sites are native species, which are
tolerant of grazing, compaction, and other physical disturbances. Proper location of a construction
camp and other ancillary features will contribute to minimization of impacts on flora.
147. Mitigation. Planting drought resistant species of flora in sand- and windbreaks will be
implemented in order to mitigate impacts to soils and contribute to desertification control in Zamyn
Uud area. The selection of species, location and period of planting, nurseries for seedlings will be
identified during detailed design. Purified domestic wastewater from construction site will be used
for watering during construction stage.
6.4.7. Non-Transport Infrastructure

148. Impacts and Mitigation. During construction stage potential impacts to non-transport
infrastructure will include:
■ Water Supply Systems. It was reported that JICA conducted studies of water
resources in Zaman-Uud area in 2003. According to the local administration of Zamyn
Uud water supply to Zamyn Uud from an area of perennial water body Sevhuuliyn
Toirom have been studied. One of the water sources examined was able to provide
around 17 liters per second which, in combination with other sources of water, could
satisfy needs of Zamyn Uud as well as other planned and existing facilities located
around it including Free Economic Zone and the Logistic Center. As the Logistic Center
is located on the way of the pipeline from Sevhuuliyn Toirom to Zamyn Uud it can
benefit from using pre-planned pipeline that otherwise should be designed and built.
From the point of resource and infrastructure location the Project will not have any
considerable adverse impacts to non-transport infrastructure.
62
■ Sewerage System. During construction the Project will use its own sewerage
system with biological treatment unit, therefore, provided that capacities for treatment of
sewerage are enough, it is expected no impact to the environment.
■ Energy and Communication Systems. It is unlikely that the Project will have
impacts on power and communication lines during construction. The coordination with
local authorities will be required at the detailed design stage in areas where
construction works can affect power and communication lines. None mitigation
measures required other than coordination with authorized agencies and other
concerned officials.
6.4.8. Transport Infrastructure

149. Impacts. During construction stage the Project can have negative impacts to existing
transport infrastructure. Negative impacts to road and railroad transport will occur due to
construction of road and railway track crossings, detours and traffic inconveniences.
150. Mitigation. It is recommended that contracts specify that care must be taken during the
construction period to ensure that traffic disruptions to road/railway transport are minimized.
Traffic Management Plans will be prepared.
6.4.9. Paleontological Sites

151. Impacts. Potential impacts on paleontological resources may occur due to:
■ excavation works during construction of terminals and access roads and railway
tracks and related activities; and
■ unregulated access to paleontological fossils encountered during earthworks.
152. Mitigation. If paleontological fossils are encountered during construction, all activities will
halt and an established action plan will be implemented (notification of local administration and
Department of Paleontology). Works will recommence only after appropriate measures have been
taken as requested by the appropriate authority, and confirmation has been received from them
that works may resume.
6.4.10. Health and Safety

153. Occupational Health and Safety. Impacts and mitigation. Due to its nature the
construction industry is considered to be one of the most hazardous industries where a number of
potentially hazardous operations and materials are used. Intensive use of heavy construction
machinery (trucks, scrapers, bulldozers, graders, cranes, compressors, etc.), tools (saws, drills,
sanders, welding sets, etc), and materials (rock materials, cement, pipes, insulation, electric
wiring, glass, oil products) poses risk of physical hazards such as noise and vibration, dust,
handling heavy materials and equipment, falling objects, work at height and on slippery surfaces,
fire hazards, electric hazards, chemical hazards such as toxic fumes and vapors and so on.
154. The civil works contractors will implement adequate precautions to protect the health and
safety of construction workers. The occupational health and safety risks will be managed by
applying measures in the following order of preference: avoiding, controlling, minimizing hazards,
and providing adequate protective equipment. The contractors will undertake the following
activities:
■ Environmental, Health and Safety Unit. Environmental, Health and Safety Unit
(EHSU) will be established and Environmental and Safety Officer (ESO) will be hired
63
along with other relevant personnel to implement Environmental, Health, and Safety
Management Plan.
■ Health and Safety Management Plan (HSMP). Each contractor will prepare a
Health and Safety Management for the construction workers on the basis of the EMP. It
will be submitted to the CSC for approval. The detailed EHSM Plan will include the
following provisions:
o Clean water. Provide a clean and sufficient supply of fresh water, for construction
and for all houses, camps, offices, laboratories and workshops.
o Sewage and wastewater. Provide an adequate number of latrines and other
sanitary arrangements at the site and work areas, and ensure that they are
cleaned and maintained in a hygienic state. After proper treatment sanitary
wastewater will be used for watering vegetation.
o Solid waste. Strong winds in the area can blow away such waste as paper, plastic
if they are not securely contained and litter the territory. Septic tanks and garbage
receptacles at construction site and camps, which will be periodically cleared to
prevent outbreak of diseases will be setup.
o Protect staff and labor employed on the site from insect nuisance, rats and other
pests and reduce dangers to health caused by them. Comply with regulations in
respect of spraying approved insecticide in all buildings erected on the site.
o Provide adequate lighting wherever work is to be carried out at night.
o SITs/HIV/AIDS and other communicable diseases awareness and prevention
program to target the local community and construction workers.
■ Emergency Preparedness and Response. An emergency response plan to take
actions on accidents and emergencies, including environmental and public health
emergencies associated with hazardous material spills and similar events will be
prepared, and submitted to the CSC for approval. Emergency phone link with hospital
in Zamyn Uud will be established. A fully equipped first-aid base in each construction
camp will be organized.
■ Records Management. A Records Management System that will store and
maintain easily retrievable records protected against loss or damage should be
established. It will include documenting and reporting occupational accidents, diseases,
and incidents. The records will be reviewed during compliance monitoring and audits.
■ Accident reporting. Report accidents to relevant local authorities and notify the
Engineer immediately of any dangerous occurrences or accidents which result in death,
or serious bodily harm or incapacity for more than three days.
■ Safety communication. Ensure that safety, rescue and industrial health matters are
given a high degree of publicity to all persons regularly or occasionally on the Site.
Posters in Mongolian and Chinese drawing attention to site safety, rescue and
industrial health regulations will be made or obtained from the appropriate sources and
will be displayed prominently in relevant areas of the site.
■ Training, awareness and competence. Train all construction workers in basic
sanitation and health care issues, general health and safety matters, and on the
specific hazards of their work.
■ Personal protection. Provide personal protection equipment, such as safety boots,
helmets, gloves, protective clothing, goggles, and ear protection, in accordance with
relevant health and safety regulations, for workers.
64
155. As large amounts of concrete will be required during construction, acute and chronic
effects related to cement should be considered more in a detail. Inhalation of cement dust causes
irritation of throat, eye, and nose, and with time may result in chronic lung disease. Contact of wet
cement with skin causes dermatitis, or even severe chemical burns of skin in case of prolonged
exposure. Mitigation measures include providing workers (concreters and loaders) with adequate
facilities for washing, changing, eating and drinking, protective clothes, respirators, gloves, and
goggles.
156. Community Health and Safety. Impacts and Mitigation. Due to the fact that the
construction site is located at a distance of approximately 4 km from the nearest settlement
Zamyn Uud, it is unlikely that there will be any direct physical impact (noise, vibrations, air quality
deterioration) or chemical impacts (spills), on public health and safety.
157. On the other hand, all necessary precautions to prevent unauthorized entry to the site of
people and livestock should be undertaken. Adequate protection to the general public, including
safety barriers and marking of hazardous areas in accordance with relevant safety regulations
should be provided.
158. During construction, there will be an increased risk of work crews spreading sexually
transmitted infections (STI) such as HIV/AIDS in Zamyn Uud. Therefore, the contractors will
organize an STI/HIV/AIDS awareness and prevention plan. When the contractors prepare the
plan, they will be guided by HIV/AIDS specialists hired by TA7175-MON: HIV/AIDS Prevention in
ADB Infrastructure Project and Mining Sector. Training material will be provided by the TA.
Training instructors and material distribution cost will be covered by the civil works contracts’ Site
Management cost specified in the General Provision of the Technical Specifications. The CSC will
coordinate and supervise the contractors’ activities. A parallel STI/HIV/AIDS awareness and
prevention program will be launched through the local government of Zamyn Uud to target the
local community in general and commercial sex workers in particular.
159. Proper treatment facilities will be provided to safely dispose sewerage and wastewater.
Solid waste should be regularly collected and disposed to dedicated municipal disposal sites.
Construction camps should be kept clean and hygienic.
6.4.11. Socioeconomic Impacts

160. The construction budgets and expenditures will have a major positive impact on the
Project Area’s income and employment characteristics. Following construction, the improvements
in logistics may also contribute to the development potential of some areas, including increases in
income and employment. Service sector employment will be enhanced as a result of the
proposed Project as a result of expenditures and demands for services during the construction
period and the facilitation of service sector activities (catering establishments, repair shops, etc)
once the construction activities are completed. During the operation period, permanent
employment opportunities will be created for the Logistic Center. The Project will result to an
increase not only of freight movement, but also in peoples’ movement crossing the border. Risk of
human and drug trafficking will likewise increase.
6.5. Environmental Impacts and Mitigation Measures during Operation Stage
6.5.1. Air Quality

161. Impacts. The project will involve planting of trees to minimize the spread of dust; the
project will also provide paved areas. Overall, it is found that dust conditions and air quality will
65
not deteriorate. Potential negative air quality impacts during the operational phase are related to
the following factors:
■ Dust storms. As the frequency of the dust storms in the project area is the highest
in Mongolia and their magnitude can be reasonably high it is anticipated that dust
pollution will be the determining factor of air quality.
■ Vehicular emissions. Although vehicular emissions is expected to increase to an
extent due to more intense traffic serving multimodal facilities, it is unlikely to contribute
considerably to air quality deterioration. Besides, the ambient air dispersion in this rural
area is superior, there is no inversion, and prevalent NW and W winds will disperse
pollutants outside of populated areas – all these factors are expected to minimize the
hazard to public health.
■ Locomotive emissions. Similarly, it is not probable that potential impacts on air
quality (soot as well as NO2 from the diesel engines) related to diesel locomotives will
be substantial.
162. Mitigation. Dust alleviation measures include re-vegetation and tree planting into wind
and sand-breaks based on wastewater reuse. These measures are in line with the National Plan
of Action to Combat Desertification. Planting of trees along windward side of the facilities will be
considered based on the amount of wastewater generated by the Logistic center to support the
growth of trees, and using drought-resistant species. Tree planting is also effective measures
against the on going soil erosion due to the sand storm in this area.
6.5.2. Water
163. Impacts. Surface and Groundwater. No significant impacts on surface or groundwater are
anticipated in operation stage. Surface water body is distant of the project area, and ground water
table is very deep. Water protection area for Zamyn Uud is around 2 km from the project area. On
condition that there will be adequate treatment of wastewater before using it for irrigation
purposes, there are no risks of soil or groundwater pollution. It is anticipated that deep location of
the aquifer and low risk of large-scale accidental spills will minimize adverse impacts on
groundwater.
164. Water for Irrigation. In order to make the Project more environmentally friendly and
resource efficient, purified wastewater and storm water will be used for planting vegetation in
vicinity of the multimodal facilities as discussed above under the heading “Impacts on Hydrology
during Construction Stage”.
165. Mitigation. As was discussed above (Impacts on Hydrology during Construction Stage)
purified wastewater generated by the Logistics Center during its operations will be used to irrigate
wind- and sandbreaks. The treatment of sanitary wastewater will be conducted with a pre-
assembled biological system that was used for water purification during construction stage.
166. Sanitary wastewater will be reused after treatment. Storm water collected from the
multimodal facilities will be used for irrigation purposes. Provided average yearly 123.5 mm of
precipitation and facilities area of 1.5 x 0.5 = 0.75 km2, theoretically, on average 92,625 m3 of
storm water can be collected yearly. In practice, however, this amount expected to be much less
due to losses and evaporation. Still, even smaller amount of accumulated water can contribute to
the total water balance used for irrigation. A separate from sewage wastewater collection system
will be used for storm water. After accumulation in a separate tank, water will be used for irrigation
purposes.
66
6.5.3. Noise and Vibration
167. Impacts. It is anticipated that noise and vibration will be associated with the operation of
the multimodal facilities, access roads, and tracks. Noise and vibration impacts will occur due to
intensive heavy truck traffic to multimodal facilities, and railway operation. The access road will
not pass through Zamyn Uud, as discussed under “Alternatives” heading, no significant adverse
noise and vibration impacts warranting mitigating actions in the operational phase are anticipated.
The project site is a desert, there is practically no inhabitant there, and that there will be no noise
impacts.
168. Mitigation. Alternative of the access road passing through Zamyn Uud have been avoided.
In case if sensitive receptors will be identified near access road, monitoring of baseline noise
levels should be carried out at the pre-construction stage to be compared with the routine noise
measurements.
6.5.4. Waste
169. Impacts. Solid waste. During operation stage the multimodal facilities will generate inert
solid waste from packaging, domestic garbage from administrative buildings and canteens. Strong
W and NW winds prevailing in the project area can scatter paper, plastic bags, and other waste to
the border zone. Potential impacts on the environment are similar to those during construction
stage, specifically: degradation of the aesthetic quality of the environment, useless land use,
formation toxic by-product as a result of solid waste decay, potential risk of injury for human being,
and organic waste can support disease vectors.
170. Used oil and lubricants. As was mentioned above, used oil and lubricants contain toxic
components that can pose a risk to the environment and human health. Heavy trucks,
locomotives and other machinery will produce used oil that can harm the environment, if not
properly managed.
171. Mitigation. Solid waste. Points for collection and disposal of waste and garbage that
exclude a risk of waste scattering should be established. Landfill sites should be identified during
detailed design stage.
172. Used oil. Used oils should be collected and analyzed to identify the options for utilization.
Among different recycling options are direct burning in industrial furnaces or boilers, re-refining, or
other chemical/physical processing of used oil. Of those, the simplest technology that deserves
consideration is direct burning of the used oil in an industrial furnace.
6.5.5. Flora and Fauna

173. Impacts. The following potential impacts were considered in regard with flora and fauna:
■ Habitat loss. It is anticipated that the Project will have insignificant direct impacts
on the habitats. The project area is a semi-desert ecosystem with comparatively low
biodiversity. The land to be acquired for the Project does not overlap with any protected
areas. It is located in vicinity of Zamyn Uud and currently is a subject of anthropogenic
load from livestock grazing, landfilling, and earth road tracks.
■ Illegal wildlife trade. Illegal wildlife trade, including fur trade, medicinal trade, and
game meat trade is a serious issue for Mongolia6. Zamyn Uud is one of two (of total 21
6
Mongolia. Silent steppe: The illegal wildlife trade crisis. World Bank. WCS. 2006.
67
official) border crossings in Mongolia that have limited capacity to control illegal wildlife
trade. It is unlikely, however, that the Project will facilitate illegal wildlife trade.
174. Mitigation
■ Habitat loss. Vegetation planting program will be started during construction phase
and continued during the operation stage.
■ Illegal wildlife trade. The capacity of customs at Mongolian and PRC border should
be strengthened not to allow poachers and illegal traders to smuggle Saiga horns, skins
of rare animals, and other animal products. The training course for customs and border
officers will include such issues as revealing illegal traders and creating awareness.
6.5.6. Health and Safety Issues

175. Occupational Health and Safety. Impacts and mitigation. Operation of the Logistic center
will comprise hazards related to cargo handling operations, movements of heavy trucks,
locomotives and trains, specifically: noise impacts, risk of free falls of materials, road and railroad
accidents. Mitigation of these impacts will be regulated by occupational health and safety
legislation and regulations of Mongolia. Construction workers are vulnerable against sexually
transmitted infections (STI) such as HIV/AIDS and they may increase the infection risk to the
people in Zamyn Uud. The civil works contract will include the HIV/AIDS prevention clause in the
technical specifications, and an HIV/AIDS prevention program will be prepared for the
construction workers guided by the CSC.
176. Community Health and Safety. Impacts and mitigation. It is anticipated that during
operation the multimodal facilities will have no direct impact to community’s health and safety with
the exception of the Zamyn Uud workers employed by the operation company. Impacts on those
have been discussed above under Occupational Health and Safety heading. Community’s risk for
HIV/AIDS exposure will be increased during the construction. The risk will be mitigated the civil
works contractors’ HIV/AIDS prevention program.
6.5.7. Transport and non-Transport Infrastructure

177. Impacts. During operation stage the Project will generally have positive impacts on the
existing transport infrastructure. The primary transport impact of the Project is to improve the
performance of the transport logistics and greatly facilitate the flow of traffic and goods.
6.5.8. Socioeconomic Impacts

178. Economics. Impacts and Mitigation. Potential impacts to the main sectors of the economy
in the project area are foreseen as follows:
■ Trade. Better connectivity to global markets that is a key characteristic of
Mongolia’s capacity to compete, grow, attract investment, create jobs, and reduce
poverty. The development of the Logistics Center is anticipated to have positive
impacts to international trade relations between Mongolia and PRC and other countries
by decreasing the transportation costs and travel time. In order to maximize benefits of
the Project, it should be complemented with a component on cross-border facilities and
procedures.
■ Industry. The Logistics Center will enhance import and export opportunities for
industries and reduce delays.
68
■ Logistic Services. The Logistic Center can become a model facility in Mongolia
demonstrating efficient, competitive, reliable, and environmentally sustainable logistics
operations.
179. Population and Communities. Impacts and Mitigation. No direct adverse impacts are
anticipated on the population and communities during operation stage. Opportunities for
complementary actions to strengthen the community aspects of the project area are addressed by
the social assessment. Operation of the Logistics Center will have a major beneficial impact on
the project area’s income and employment characteristics.
180. To mitigate the human trafficking risk described in Para 160, training for local police will be
provided by the CSC, supported by Gender Specialists hired by the TA7175.
6.6. Cumulative and Induced Impacts

181. Impacts. Intensive industrial development of land in Zamyn Uud area and growing
population of livestock grazing on thin vegetation around the town is anticipated to have a
cumulative impact on soils and intensify soil erosion process and desertification if no mitigation
measures will be taken. Desertification in Eastern Gobi in general, and Zamyn Uud area, in
particular, has already been recognized as a serious problem, and planned new developments
such as Free Economic Zone, Regional Road, may cause further complications. In addition,
economic activities induced by the logistic center may induce nuisance to the town residences
such as noise and traffic congestion due to the increased economic activities.
182. Mitigation. To avoid and mitigate cumulative impacts related to the soil erosion
international and local organizations participating in new developments should be consistent with
their environmental policies and national environmental legislation of Mongolia at all stages of the
project: design, construction, and operation. Zamyn Uud town has its development plan for 2030.
The planned population in 67,000. It include land use plan, utility development plan, and waste
management plan. According to the plan, cumulative and induced adverse impacts will be
adequately managed. As the logistics center will be a high security area, truckers will be given
smart cards at the border and will park and wait for their turn to be processed in the center at their
designated time. Therefore, induced adverse impacts associated with road traffic will be managed.
Experiences in relation to the environment, specifically cumulative and induced impacts of the
previous projects will be taken into account while developing new ones. For this purpose it is
important to provide disclosure of the environmental assessments completed in the frame of the
projects.
69
7. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

183. A number of consultations with stakeholders were organized in Ulaanbaatar and Zamyn
Uud in March and April 2009, and April 2010. They were organized in the format of formal
consultative workshops and informal meetings with general public. The stakeholders included
local administration, environmental agencies, NGOs, international organizations, and other
concerned individuals.
184. The most recent stakeholder’s workshop took place in Zamyn Uud in April 2010. Fourteen
local participants (Appendix A3) were informed about goals of the Project, alternatives and
expressed their opinion about the Project. The major comments and proposals of the consultative
meeting are as follows:
■ Engineering. In order to avoid damage of goods and equipment the facilities should
be covered with a roof. Entry and Exit gates should be designed wide enough to enable
heavy trucks traffic.
■ Environmental. The access roads should be kept off Zamyn Uud as there are
impacts related to noise, air pollution and risks of accidents.
■ Social. The Logistics Center should create new jobs for local population,
specifically for small transportation businesses. There is a risk of losing jobs for local
population in case if bigger companies will be involved in transportation. Also, the risk
of human trafficking will be increased as the goods and people’s movement across the
border increases.
185. Stackeholder’s workshop in Ulaanbaatar (March 27, 2009). The first consultative
workshop was organized in Ulaanbataar. About 30 experts took place in the discussion (List of
the participants is provided in Appendix A3). The attendants were informed about goals, current
status of the Project, as well as Component 1 (national logistics strategy) and Component 2
(Multimodal Facility). Three location alternatives for multimodal facility were presented for
discussion. The major comments and proposals of the consultative meeting are as follows:
■ The Project. Zamyn Uud Logistics Project is in the line with the “Transit Mongolia”
Program Implementation. The Project is timely and urgent. There is an urgent need in
multimodal facilities in Zamyn Uud despite the current economic crisis. After the crisis
(in 2-3 years) the capacities of the Zamyn Uud will have to be increased by 2-3 times to
meet transshipment demand. The existing capacities of terminals from Mongolian and
PRC side are misbalanced (PRC transshipment capacities are much larger), therefore
the Project is timely and justified.
■ Alternatives. All the alternatives: 1, 2, and 3 found support and justification. Wider
discussion will be needed to identify the best alternative. It was also proposed to
expand and improve the existing terminals 1, 2, and 3 instead of building new terminal,
and build a new terminal in Ulaanbaatar. Terminal should consider complete integration
of rail to rail and rail to vehicle options.
■ Other issues: There is no need in bulk terminal in Zamyn Uud. Investments are
needed for double tracking of the main railway. Investments should involve private
sector. Land acquisition should be paid special attention due to complexity of the issue.
PPP is of great importance and should be considered from the organizational and
economic perspectives. Preparation of National Logistics Strategy is an important
component of this Project that should not be underestimated.
186. Stakeholder’s workshop in Zamyn Uud (April 6, 2009). The second consultative workshop
was organized in Zamyn Uud. About 30 people took place in the discussion (List of the
70
participants is provided in Appendix A4). The meeting brought together people from local
administration, private sector, NGO, and concerned individuals. The major comments and
proposals of the consultative meeting are as follows:
■ Alternatives. There were numerous comments about the optimal alternative.
Alternative 1 is not suitable, because it’s highly probable that the traffic congestion
occurs. Alternative site 2 is potentially possible, but the best option would be the last
one. Alternative site 1 has limited possibilities for expansion, although it is
advantageous in intersections of roads and railway. Regarding other alternative sites,
they are not suitable because trucks will have to pass through the town. Millennium
Roads Development expands in the north. Thus, the alternative site 3 is suitable.
■ Environmental Issues. Environmental issues were discussed in a detail. It was
noted that the major problem is related to the trucks passing through the Ger bag of
Zamyn Uud. It was mentioned that the number of trucks depends on season, but
typically ranges from 200 to 300 in each direction per day, and sometimes reaches
700-800. The traffic peak hours are from 8 am to 8 pm. The trucks pose a problem of
road safety, noise, and air pollution. There were many road accidents associated with
trucks. Trucks are frequently overloaded and destroy roads. It was proposed to
consider alternatives in order to divert trucks from Zamyn Uud.
■ Other issues. It is recommended to coordinate activities of the Project with another
ADB-funded project on Urban Development.
187. Consultation in Zamyn Uud (April 7, 2009). Informal public consultations were conducted
in Ger bag of Zamyn Uud, the bag severely affected by truck traffic. The major comments were
made about environmental impacts of the truck traffic as follows:
 The major problems related to truck traffic passing through Zamyn Uud are road
safety, noise, and air quality; besides, trucks are typically heavily overloaded and
damage road surface.
 Health problems among children are of concern in the kindergarten, which is

located not far from the road.
188. Consultation and Disclosure Plan. Future consultation and participation plan was prepared
covering both environmental issue and social issue as in Appendix A4.
8. GRIEVANCE REDRESS MECHANISM

189. The purpose of the grievance redress mechanism7 is to receive and address grievances,
and assist people in their appropriate resolution. Grievances include complains, concerns,
comments, suggestions, queries about poor-performance of the project, poor quality of work,
allegations of violations of safety regulations, conflicts among beneficiaries, etc. It will address
affected people's concerns and complaints promptly, using an understandable and transparent
process that is gender responsive, culturally appropriate, and readily accessible to all segments of
the affected people at no costs and without retribution.
190. Grievance Redress Mechanism. In Zamyn Uud, a grievance redress committee will be
established comprising PIU, CSC, the Aimag government, Soum Government, and selected
community people. All complaints will be informed to the Focal Point, which is the Secretariat of
the committee. CSC will act as the Focal Point. Complaint forms will be distributed to the heads of
local administration. The Focal Point’s contact information such as phone and fax number, and e-
7
The GRM is different from the ADB Accountability Mechanism.
71
mail address will be desalinated to local governments and community people through bill board
and the future public consultations. Affected people may visit, call or send a letter or fax to any of
the Grievance Focal Points to register their comments or complaints related to environmental
issues or other aspects of the Project. The local government will be requested to report all project-
related grievances to the Focal Point. The Focal Points will receive, clearly identify affected
people, help resolve, report or forward complaints received from the affected people. The Focal
Point will coordinate the contractors, local government agencies, and the community people to
resolve the problems. The Focal Point will keep a good record of the consultations, e.g. the
names of those who attended; their concerns; and agreements reached.
191. The committee will hold meeting every month. The Focal Point will maintain a record-book
to register the complaints, keep track of their status and report to the PIU. The PIU will supervise
CSC and if any issue that the CSC fails to resolve occur, PIU will provide adequate support and
guidance. The complaints resolution process will be disseminated through information brochures
and posted to the offices of the contractor, construction supervision consultant, and local
administration. PIU person who will handle GRM will be provided the proper training to ensure
that the system can be effective.
Figure 22: Grievance Redress Committee System
Affected
People
Grievances
Grievances Contact Information
Grievance Redress Committee

Report
PIU representative
Local On Site Project Management Consultant PIU
Government Aimag Government representative
Supervision
Coordination Soum Government representative
Corrective
Measures Construction
Instruction Information
Grievances
Contractors
72
9. ECONOMIC ASSESSMENT
192. The economic internal rate of return is 19.8%, indicating a viable and sustainable Project.
Estimate of economic cost of the environmental component of the Project is shown in Table 31.
The base mitigation costs amount to $515,392 (MNT 713.4 million) or 0.72 % of the total Project
costs. The benefits of the mitigation costs include seedlings planted to control desertification and
reduce sand and dust storms. These will be watered through the wastewater treatment and
associated irrigation systems.
Table 34: Estimate of Project's environmental costs
Item Unit Quantity Unit cost Unit cost Cost Cost

MNT ($US) MNT ($US)
A. Design
Designing wind and sandbreaks lump sum 20,761,650 $15,000
Preparation of detailed EIA lump sum 20,761,650 $15,000

Sub-total 41,523,300 $30,000
B. Mitigation
1. Air Quality
Dust suppresants days 200 415,233 $300 83,046,600 $60,000

Sub-total 83,046,600 $60,000
2. Water
Biological wastewater treatment
lump sum 415,233,000 $300,000
system
Wastewater irrigation system lump sum 27,682,200 20,000
Sub-total 442,915,200 320,000
3. Ecology
Procurement of seedlings pieces 3000 10,000 $7.22 30,000,000 $21,675
Sub-total 30,000,000 $21,675
4. Waste
Used oil storage tank pieces TBD 4,152,330 $3,000
Analytical equipment for used oil lump sum 9,688,770 $7,000
Sub-total 13,841,100 $10,000
C. Environmental Monitoring
Flora survivability 13,841,100 $10,000
Noise 13,841,100 $10,000
Sub-total: 27,682,200 $20,000
D. Capacity Building
Training in environmental management lump sum 27,682,200 $20,000
Sub-total: 27,682,200 $20,000
Contingencies 7% 46,668,342 $33,717
Total: 713,358,942 $515,392
Note: Exchange rate 1 $US = 1,384.11 MNT as of June 4, 2010.
73
10. ENVIRONMENTAL MANAGEMENT AND ENVIRONMENTAL MONITORING PLANS
10.1. Environmental Management Plan

193. Appendix A1 presents the Environmental Management Plan (EMP) that identifies feasible
and cost-effective measures to be taken to reduce potentially significant adverse impacts to
acceptable levels. This EMP is site-specific, and is focused on the Project components:
multimodal and auxiliary facilities, access rail and road. The contractors will be responsible for
preparing more construction environmental management plan based on the EMP. Before the
construction, contractors will prepare and submit proposals and method statements consistent
with the EMP to the PIU through CSC for review and approval.
10.2. Implementation Schedule

194. The implementation schedule for the Project is provided for two aspects: mitigation and
monitoring as illustrated in Table 32
Table 35: Implementation Schedule
Phase Issue Schedule
 Designing wind- and sand-break system with
irrigation by the treated wastewater from the
multimodal facilities;
Detailed design 1 time
 Detailed Environmental Examination in
accordance with the local legislation (if will be
required)
PIU to review and approve Contractor’s method
During the
statements and forward them to the Construction 1 time
mobilization phase
Supervision Consultants
During see EMP
Impact mitigation and monitoring
construction and EMoP
Reporting:
monthly
During  Contractor to PIU
monthly
construction  Contractor to MRTCUD
semi-
 PIU to ADB (through MRTCUD) annually
Regularly
according
During Operation Monitoring air and water quality, and noise to
monitoring
program
Source: Compiled by Consultant, 2010.
10.3. Institutional Arrangements

195. The roles of entities involved in environmental management will be as follows:
a. The Ministry of Roads, Transport, Construction and Urban Development
(MRTCUD) will be the Executing Agency for the Project;
b. The Project Implementation Unit (PIU) will reside within the MRTCUD. The PIU will
be responsible for overall contract administration and day-to-day project
supervision including environmental management. The PIU will be responsible for
supervising contractors by way of the Environmental Specifications and Special
Environmental Provisions contained in the civil works contract. An Environmental
and Social Officer and an Environmental Safety Officer will be appointed within the
74
PIU to be responsible for ensuring the Environmental Management Plan, including
monitoring requirements, are implemented effectively;
c. Construction Supervision Consultants (CSC) will assist PIU in its responsibilities,
including instrumental environmental monitoring of the Project; and
d. CSC will prepare quarterly progress report including environment chapter and
semi-annual environment report. All reports will be submitted to EA through PIU
and the EA will submit them to ADB.
196. Bidding documents and detailed design contracts will be prepared and managed by the
MRTCUD. Contractors will carry out construction works. The contractors will be responsible for
implementing the mitigation and monitoring measures defined in the EMP.
10.4. Capacity Building

197. It was found that the capacity of the MRTCUD to undertake responsibilities for carrying
environmental management and monitoring is limited. There is not enough experience in the
implementation and management of EMPs. Thus, it will be necessary to embody a program of
institutional strengthening and training through the provision of technical assistance to the PIU.
10.4.1. Training
198. One of the training programs is to provide guidance on the goals, methods and
procedures for social and environmental management appropriate for the multimodal facility
development activities. This will cover aspects of environmental monitoring. Training is
recommended for the PIU staff and selected contractor personnel. In-country on-the job training
by an international expert is preferred to external training to ensure that the Mongolia situation is
fully taken into account, including both its physical and administrative circumstances.
10.5. Environmental Monitoring Plan

199. The environmental monitoring framework for the Project is summarized Appendix A2.
Monitoring activities include site supervision, verification of permits, monitoring environmental
impacts such as noise, air and water pollution, and survivability of planted vegetation.
Construction contracts require that instrumented air quality, water quality and noise monitoring
take place prior to the initiation of construction to establish baselines against which impacts can
be measured. The locations for baseline monitoring may be determined advisable to CSC. The
monitoring data will be used as the environmental performance indicators. CSC will prepare
environmental performance monitoring plan.
75
11. FINDINGS AND RECOMMENDATIONS

200. The major findings of the IEE are as follows:
■ Construction activities under the Project will be limited by the comparatively small
area and no significant impacts to the environment are anticipated.
■ Anticipated positive environmental impacts of the Project can be summarized as
follows:
o smooth and rapid container shipment times,
o reduced vehicle operating costs,
o new employment opportunities for local community,
o poverty reducing in the Project Area, and
o contribution to mitigation of soil erosion in Zamyn Uud area by re-use of
wastewater to irrigate vegetation in wind- and sandbreaks.
■ Negative environmental impacts are likely during construction and operation
stages of the Project. However, these impacts are manageable and can be mitigated
through proper engineering design and realization of proposed mitigation measures.
The summary of the potential negative impacts during construction (C) and operation
(O) stages is as follows:
o potential soil erosion (C);
o contamination of soil with oil and lubricants (C,O);
o noise and vibration (C,O), specifically if access road passing via Zamyn
Uud will be selected;
o spreading STDs/HIV/AIDS and other communicable diseases (C); and
o increase of human and drug trafficking (O).
201. The following recommendations are proposed based on the findings of the IEE:
(i) Environmental Provisions in Contract. Specific environmental provisions are
recommended for inclusion in contract documents including provisions related but
not limited to:
■ erosion control, air and water quality, and noise control:
(a) location of quarries (even though located at a distance of the project area),
construction camp and other facilities (not in environmentally sensitive
areas or close to settlements),
(b) labor safety and health provisions,
(c) priority employment for local people for construction and operation jobs,
(d) baseline and routine monitoring of noise levels in Project Area, and
monitoring of vegetation survivability and, and
(e) local communities relations and grievance redress mechanism.
(ii) Capacity Building for Environmental Management. A training program for selected
staff and addressed to the goals and techniques of environmental management
activities in road projects is recommended.
76
12. CONCLUSIONS
202. The Regional Logistics Development Project is located in Zamyn Uud Soum of the
Dorngovi Province of Mongolia. The proposed Project activities will have both positive and
negative impacts to the environment. The IEE findings clearly show that Project will have socio-
economic benefits and, if the prescribed mitigation and management measures are fully
implemented, it is unlikely to have significant adverse environmental impacts. An environmental
management and environmental monitoring plans have been prepared and responsibilities for
implementation assigned. A full Environmental Impact Assessment (EIA) under ADB's SPP (2009)
is not required.
77
Appendix A1
Environmental Management Plan
Environmental Estimated Cost, Responsibility

Issue Mitigation Measures $US Location Time Frame Implementation Supervision
I. Detailed Design Phase
1. Designing Wind- and Sand- breaks
 Drifting sand  Select locations for wind- and sand- 15,000 in the Proposed locations Detailed design Organization PIU
detailed design include windward site responsible for
 Soil degradation breaks
budget of multimodal detailed design
 Wastewater re-  Design of an irrigation system to collect
terminal, and access will hire a
use and distribute sanitary wastewater and
railways consultancy with
storm water of the Logistic Center for
 Planting wind- tree watering
experience in
sandbreaks planting trees in
 Select drought resistant species of arid areas
trees and identify tree nurseries
 Prepare “Wind- and Sand- break plan”
with detailed description of locations
for wind- and sandbreaks, species to
be planted (if introduced species are
proposed correspondent assessment
should be made), period of planting,
irrigation equipment and scheme.
II. Construction Phase
1. Soil and topography
Soil erosion  The areas of soil clearance should be Included in the Multimodal terminal Construction Contractor PIU / CSC
minimized; main civil works and access roads Period
cost
 Separation of topsoil from subsoil
during the excavation works; reuse of
topsoil as a superficial layer (where
possible);
 Stabilization of embankment slopes
and road cuts by re-vegetation with
grazing resistant plant species
Soil contamination  Contractor should develop and PIU / CSC,
implement a Spill Management Plan local
environmental
authorities (oil
spill
management)
2. Air Quality
Generation of dust  All earthwork vehicles shall be covered 60,000 Construction sites Construction Contractor PIU
to avoid spillage phase
78

 Material storage site should be 300 m
away from residential areas
 Water will be sprayed on the
construction sites and major feeder
roads twice a day during dry season
Emissions from  All vehicles, equipment, and -° Construction sites Construction Contractor PIU
Construction machinery used for construction shall phase
Vehicles, be regularly maintained and correctly
Equipment, and operated (including the use of dust
Machinery filters or hoods) throughout the project
corridor.
3. Hydrology
Wastewater  Establishment of irrigation system for 20,000 Construction sites Construction Contractor PIU
wind- and sand-breaks phase
 Wastewater treatment system 250,000 Main construction Construction
site phase
4. Flora
Drifting sand  Procurement of seedlings and planting 20,243 North and west side Construction Contractor is CSC
Soil erosion them in sand- and windbreaks of the multimodal and operation recommended to PIU
facilities, certain period hire sub-
locations along the contractor that
access roads have experience
in planting trees in
arid areas
5. Noise and Vibration
Noise from  Plants and equipment used in Included in the Construction Sites Construction Contractor PIU
construction construction shall strictly conform to main civil works period
equipment, and local noise standards. cost
trucks
 Within 200 m of the nearest habitation,
construction works such as crushing,
concrete mixing and batching,
mechanical compaction, etc., will be
stopped between 22:00 and 06:00
hours
6. Paleontological and Archaeological Resources
Encountered during  If paleontological or archaeological - Project Area Construction Contractor Local
Construction findings are encountered during stage administration,
construction, in the Project Area, all and police,
activities will halt (notification of local Institute of
administration, Institute of Paleontology
Paleontology and local police). Works
79

will recommence only after appropriate
measures have been taken as
requested by the appropriate authority,
and confirmation has been received
from them that works may resume.
7. Construction Camp
 Proper construction camp Included in the Construction camp Construction Contractor CSC
 Contamination management in compliance with main civil works stage PIU
related to Construction Camp Management Plan cost
lubricants, fuel that will include management of waste
storage and and spills
fuelling
operations
 Sewerage
related
contamination
 Waste
management
8. Waste Management
 Used oil and  Recycling of used oil 10,000 Construction site Construction Contractor PIU / CSC
lubricants and operation
9. Health and Safety
Occupational Health  Occupational health and safety in the Included in Construction site Construction, Contractor, PIU / CSC
and Safety construction industry construction and and Operation
health budget stages
 Emergency response plan will be
safety provisional
prepared.
sum
HIV/AIDS  Training for workers Included in Construction site and Construction, Contractor and PIU / CSC
construction and local community and Operation Local Government
 Awareness campaign in Zamyn Uud health budget stages with support from
 Brochure distribution safety provisional TA 7175-MON
sum
10. Social Impacts
Local People  About 75% of required unskilled labor --- Construction site Construction, Contractor, PIU / CSC
Employment comes from Zamyn Uud; hiring of women and Operation
will be encouraged. stages
11 Reporting
Reporting to EA and  Quarterly Progress Report will include Project area Construction, CSC EA
ADB a chapter for environmental protection and Operation PIU
measures taken and any adverse impacts stages
80

found.
 Semi-annual environment report will be
prepared and submitted to the EA and
ADB
Operation Phase
1. Desertification and Drifting Sand
 Dust and Operation budget Along windward side Operation stage Logistic Center
sandstorm control  Support of vegetation in wind- and of the Logistic of access roads and operator
sandbreaks (watering with sanitary Center multimodal facilities
wastewater and stormwater, and re-
planting)
 Regular and sufficient irrigation of
vegetation
 Control of survivability of trees and
replanting
2. Health and Safety
 Occupational  Occupational health and safety Included in Logistics’ center Design, and Logistic Center PIU
Health and Safety occupational health Operation operator
safety budget of stages
Logistics Center
Administration
Entity
3. Social Issues
 Local People’s  At least 75% of new jobs, from Zamyn -- Logistics’ center Operation Logistic Center PIU
Employment Uud, Hiring women will be encouraged. stages operator
 Human and drug  Local Police will be trained. 2,000 Zamin Uud End of CSC PIU
Trafficking Contraction
Stages
List of proposals / method statements to be required from the Contractor for approval through PIU:
■ Construction Camp Management Plan;
■ Wind- and Sand- break Management Plan
■ Traffic Management Plans
■ HIV/AIDS Prevention Plan
81
Appendix A2
Environmental Monitoring Plan
Monitoring Location and Frequency of Parameter
Location Time Frame Responsibility
Parameters Measurement
A. Construction Phase
Monitoring parameter: TSP
Monitoring frequency: 1 time/day
Construction phase –
Monitoring points: Construction sites and
Contractor CSC;
transportation roads Construction sites,
Construction and
1. Air Quality B. Operation Phase settlements
operation Operation phase –
Monitoring parameter: TSP, CO, NOx, SO2 Operation: Zamyn town
Logistic Center Operator
Monitoring frequency: 3 times/day
Monitoring points: Bag No.2
C. Monitoring Standard
Standard:
Construction:
A. Monitoring Frequency
Contractor (Sub-
Construction Phase: 2 times/year
Contractor responsible
2. Flora: Operation Phase: 2 times / year
Wind/Sandbreaks near Construction and for planting and
survivability B. Monitoring Points
Logistic Center operation supporting trees)
Construction phase: Wind/Sandbreaks
Operation: Logistic
Operation phase: Wind/Sandbreaks
Center Operator
82
Appendix A3
CONSULTATIVE WORKSHOP
06 APRIL 2009, ZAMYN UUD SOUM, DORNOGOBI AIMAG, MONGOLIA 2:00 pm – 4:00 pm
LIST OF PARTICIPANTS
1. B.Batdulam Head, The Soum Governor’s Office

2. B.Lkhamsuren Officer, Trade, Industry and Service, Governor’s Office
3. G.Bayarbold Officer, Construction and Urban Development and Land
affairs, Governor’s Office
4. J.Budsuren Officer, Environment and Tourism, Governor’s Office,
5. Yu.Batsetseg Branch of Liberal Women’s Intelligence Fund, Consulting
Coordinator
6. S.Jargal unemployed
7. S.Byambatuya unemployed
8. Ch.Otgonbayar Teacher, Secondary School
9. Ts.Ganchimeg Teacher, Secondary School
10. V.Narantuya Academy of Mongolian Women
11. Z.Chuluunchimeg Information Officer, Bag 1, Governor’s Office
12. G.Buyannemeh Governor, Bag 1
13. Ch.Amarbayar Governor, Bag 2
14. B.Saranchimeg Bag 2
15. M.Doljintuul Bag 2
16. S.Yadamsuren Bag 2
17. I. Gan-Erdene Bag 2
18. Ts.Myangansuvd Bag 2
19. S.Eson-Erdene Bag 2
20. B.Doljin Bag 2
21. Ch.Bolortsetseg Private sector
22. S.Enkhtsetseg Private sector
23. T.Enkhbayar Director of ZU Meteorological Center
24. S.Adiyasuren Employee, Meteorological Center
25. B.Boldbayar Owner, ‘’Elephant’’ Restaurant
CONSULTATIVE WORKSHOP
22 April 2010, ZAMYN UUD SOUM, DORNOGOBI AIMAG, MONGOLIA WITH ZAMYN UUD
LOCAL RESIDENTS 15:00 pm - 15:45 pm
LIST OF PARTICIPANTS
1. B.Jargalsaikhan
2. Ch.Oyun
3. G.Mart
4. G.Yadamdorj
5. L.Ragchaasuren
6. Ye.Dulamsuren
7. S.Nandinchimeg
8. B.Tuya
9. O.Odgerel
10. A.Yumrenjid
11. N.Erdenechuluun
12. Z.Enkhmurun
13. A.Enkhtuya
14. Kh.Myadagsuren
83
Appendix A4
Table: Stakeholder Consultation and Participation Plan

Responsible
Concerns/Tasks Activities Timeframe Targets Constraints/Issues
Groups
1. Hiring of local labor:
a. Project construction a.1 Public meetings Local labor During a.1.1 Number of local unskilled a.1.1 Low turnout of participants
with Zamyn Uud office, IA, and mobilization of and skilled local labor from the community
residents to civil works civil works determined, including because of poor
discuss needs for contractors contractors process for recruitment dissemination of notice
local labor and and conditions of about the meetings
process for employment a.1.2 A liaison officer at the local
recruitment a.1.2 About 75% of required labor office needs to be
unskilled labor comes from designated to facilitate
Zamyn Uud. Hiring women efficient coordination of
will be encouraged. between the local
government, IA, and the
contractors on labor
concerns.
a.2 Training of local Local labor During terminal a.2.1 At least 75% of new jobs a.2.1 A training program with
unskilled labor on office, IA construction (skilled) during first phase budget is required.
specific tasks of project implementation
related to the come from Zamyn Uud,
operation of the would be included in
logistics terminal training.
b. Project b.1 Public meetings Local labor During first to b.1.1 Local labor office needs to
implementation with Zamyn Uud office, IA, third phase of b.1 At least 75% of new jobs, monitor this. If needed,
residents to freight and project from Zamyn Uud, Hiring additional training activities
discuss job transport implementation women will be encouraged. will be conducted for the
opportunities and operators local residents.
process for b..1.2 Local labor office to
recruitment monitor compliance with
core labor laws
2. Environment during CSC will organize IA and CSC After the 2.1 No complaints from the Low turnout of participants from
Construction meetings to explain Detailed residents the community because of
environmental Design and poor dissemination of
protection measures before the notice about the meetings
and monitoring plan construction
to the local people.
3. Use of local materials Meeting with Zamyn Local During All materials and equipment Clear specifications of the
for construction Uud residents in the government, mobilization of locally available sourced locally requirements of the contractors
construction and IA, and civil civil works required.
84
Responsible
Concerns/Tasks Activities Timeframe Targets Constraints/Issues
Groups
related business to works contractors
discuss requirements contractors and during
for materials and terminal
equipment during construction
construction
4. HIV/AIDS/STI and 4.1. Regular public to IA, local Shortly before 4.1.1 Zero incidence of 4.1.1. Requires concerted effort
human trafficking discuss project’s government, start of civil HIV/AIDS/STI among of the government, IA,
prevention program program on contractors works and construction workers. project stakeholders, and
HIV/AIDS/STI (during onward 4.1.2 No increase in the the general public.
and human terminal incidence of AID/HIV/STI 4.1.2. Use of multi-media for
trafficking during construction and human trafficking in public information is
construction and and Zamyn Uud during imperative.
during project operation) construction and operation
operation of the logistics terminal
4.2 Set-up help-desks IA, local Shortly before 4.2.1 Local residents (and 4.2.1. Commitment from IA and
for receiving government, start of civil workers during local government is
requests for works and construction) are fully indispensable.
assistance and onward informed about the program
information on and their concerns are
HIV/AIDS/STI promptly addressed.
and human
trafficking
5. Community protection 5.1 Meeting with Local Shortly before 5.1 No complaints from the
and safety residents to government, start of civil residents
discuss civil IA, and civil works
works to be works
carried out during contractors
construction of
the terminal and
measures to be
undertaken to
minimize
environmental
and social
inconveniences
to the local
population.
5.2 Traffic safety IA, local During terminal 5.2 Zero incidence of vehicular 5.2 Use of multi-media for public
awareness government operation accident within and near the information is needed.
campaign during of Zamyn Uud logistics center.
terminal operation
85
Appendix A5
General vegetation and soil type of project area
29 September 2010, ZAMYN UUD SOUM, DORNOGOBI AIMAG, MONGOLIA
86
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Regional Logistics Development Project (RRP MON 41192-01)

Initial Environmental Examination

Project Number: 41192-013

MON: Regional Logistics Development Project

MONGOLIA: PREPARING THE REGIONAL LOGISTICS

Currency Unit – Tugrug (Tg)

LIST OF ABBREVIATIONS USED

In this report, “$” refers to U.S. Dollars

6.2. DEFINING PROJECT AREA .............................................................................................................. 55

8. GRIEVANCE REDRESS MECHANISM ............................................................................................. 70

9. ECONOMIC ASSESSMENT ............................................................................................................... 72

10. ENVIRONMENTAL MANAGEMENT AND ENVIRONMENTAL MONITORING PLANS ............... 73

12. CONCLUSIONS .............................................................................................................................. 76

Description of the Environment

Anticipated Risk and Environmental Categorization

Environmental Impacts and Mitigation Measures during Construction

Environmental Impacts and Mitigation Measures during Operation

Environmental Management Plan

1.1. Project Background

24. The general objectives of this IEE are to:

1.2. Structure of this Report

o Economic Development – industrial and agricultural development, land use,

2. Policy, Legal and Administrative Framework

2.1. Environmental Legislation

Disposal of Hazardous Chemicals, Protection of the Migratory Routes of Wildlife, Stockholm

Prevention of Forest and Steppe Fire Law

Land law Fauna Law Hunting Law

law listed (a)

Acts and Regulations Issues covered

2.2. Environmental Assessment Requirements

29. Requirements to environmental assessment specify that:

2.2.2. EIA Requirements of Mongolia

Figure 1: Simplified Diagram of the Environmental Assessment Procedure

MNE or local government official appoint EIA

a detailed environmental rejection of the project on the

Authorized company conducts Detailed

Detailed EIA report is submitted to the

3. DESCRIPTION OF THE PROJECT

3.1. Category and Type of the Project

3.2. Project Location

3.3. Description of the Proposed Actions

Note: Map scale 1:100,000, 1 cell = 2km.

Figure 6: Typical Cross Section, Type 1

Figure 8: Longitidunal Profile of Bridge

3.5. Need for the Project

3.6. Implementation Schedule

3.7. Size and Magnitude of Operation

UIC60 Rail 25 m-Platform Tracks MT 306.62 1,100.00 337,284

UIC60 Rail 25 m-Storage Tracks MT 544.37 1,100.00 598,805

UIC60 Rail 25 m-Lead Tracks MT 610.78 1,100.00 671,856

Reinforced concrete sleepers

C40 Concrete slab for base of

C60 Concrete Rail Slab for platform 6,160,880

Concrete-emulsified asphalt (CA) for

Limestone Aggregate Base 250mm

Emergency Generator for lighting

Safety and Security

1 fire truck, 1 ambulance, portable

Ramp Track Air Station with Duplex

Ramp Track Compressed Air Piping

Sitework, Clearing, and Grubbing M2 900,000 0.03 28,800

Earthworks (fill and leveling) M3 900,000 2.20 1,980,000