ADB TA-9679 Mongolia: Preparing Regional Cooperation and Integration Cross Border Economic Zone Project

The Zamyn-Uud free zone (ZUFZ) in Mongolia is designed to expand to capitalize on synergies with facilities in Erenhot free zone in neighboring People’s Republic of China (PRC) by establishment of a cross-border economic zone (CBEZ) accelerated by development of Zamyn-Uud–Erenhot CBEZ allocating 900 hectares of land from each side potentially yielding increase in gross domestic product return for Mongolia. The environmental assessment (Initial Environmental Examination##) and environmental management plan (EMP) covering future economic free zone and border crossing investments needed to ensure all project components were compliant with ADB's environmental safeguard policy by screening of impacts for categorization determining the spatial and temporal scope and key issues for Environment Assessment and Health Impact Assessment. Vulnerable groups for disclosure and domestic consultation were identified, in conjunction with the social safeguards team recommending suitable consultation approaches through stakeholder discussions, interviews and questionnaires. The environmental management plan (EMP) was prepared with project specific mitigation measures and implementation arrangements and methodologies for environmental monitoring and reporting included performance indicators. Proposed approaches for green facilities, water supply and waste management facilities were included. Environmental safeguard inputs were provided to the RRP and other requisite loan processing documents. The environmental management plan covered both construction and operational mitigation measure but was complicated by lack of knowledge in advance of which type of facilities would operate in the ZUFZ. Measures for the construction contractors for the operational project structures could be fairly easily envisaged but the operational investors and processes were not known. Construction contractors were required to compile a Contractors Environmental Management Plan (CEMP) prior to starting construction. Later in the operational stages the investor - operators were required to compile an Operators Environmental Management System (OEMS). CEMP and OEMS were to be endorsed by ADB prior to starting construction and operation and thus the key issues ZUFZ facilities and operational factories were covered, as far as practicable. The CEMP/OEMSs were to be implemented by the contractors and operators and monitored and supervised by the Government’s Project Implementation Unit (PIU). The requirements of Government monitoring of all potential operational industries was included. The General Agency for Specialized Inspection (GASI) and all their recommendations and typical checklists for the range of industries likely to invest were presented in the IEE in tandem with the EMP to ensure advance notice to investors and as comprehensive an approach, to mitigation and monitoring, as possible. The impacts from operationalization of key supporting infrastructure located outside the ZUFZ such as the water supply treatment, thermal plant and waste water (sewage) treatment plant and waste disposal facilities and their key environmental issues were compiled previously and the environmental assessments for those facilities were required to be updated by approved EIA consultants according to amended Law on Environmental Assessment requirements. Government monitoring of operational facilities by the GASI was an EMP requirement. ## = https://www.adb.org/sites/default/files/project-documents/51410/51410-001-iee-en_1.pdf