The provision of a sovereign loan of up to US$ 20 million for financing the design and construction of 712 low-carbon and climate-resilient housing units and associated infrastructure. It will be provided to eligible residents on rent and rent-to-own terms. The project is located in Ulaanbaatar and is being implemented by the City of Ulaanbaatar (the City) and the Capital City Housing Corporation (the Company).
The Project will address Ulaanbaatar's priority environmental challenges of poor air quality, water quality and climate change impact as identified by the Green City Action Plan (GCAP) approved by the city in December 2019. The Project will receive EDGE certification and will achieve 20 per cent better performance in the area of energy, water and materials compared to the national standards. It will also lead to significant climate resilience benefits through improved public health due to the reduced exposure to climate risks, as well as higher standards of inclusion and gender equality.
ETI score: 70
The Project supports the transition objectives of the Green Cities Framework by focusing on the Green as primary transition quality through improving air quality and reducing CO2 emissions, as well as incorporating climate change adaptation solutions. The Project also contributes to the Well-governed quality by assisting the Company's corporate development and improving contractual arrangements and procedures for implementing affordable housing projects with higher energy standards.
EBRD Finance Summary
A sovereign loan of up to US$ 20 millionn (€16.9 million) to Mongolia co-financed by a capital grant in the amount of up to US$ 5 million (€4.2 million) from the Green Climate Fund (GCF).
Total Project Cost
- Financing Structure: closing the existing funding gap for affordable housing projects where alternative commercial financing is not available.
- Risk mitigation: mitigating carbon transition risk by reducing CO2 emissions by 988 t/CO2 per year.
- Standard-setting, helping projects and clients achieve higher standards: achieving compliance with an internationally recognised green building scheme (EDGE); supporting higher inclusion and gender standards by developing a gender-inclusive affordable housing policy for the Company.
- Knowledge, innovation, and capacity building: providing technical assistance to the Company to improve contractual arrangements and procedures for implementing affordable housing projects with higher energy standards.
Environmental and Social Summary
Category B (2014 ESP). The Project appraisal confirmed that the Project's potential environmental and social impacts are site-specific and readily addressed through effective mitigation measures. Environmental and social due diligence was undertaken by a consultant as part of the feasibility study and included a review of the location and proposed residential development designs, an assessment of the Company's capacity to manage E&S risks and impacts and contractors during construction, and analysis of the social impacts and benefits of affordable rental and rent-to-own housing to ger residents. This included assessing access to key infrastructure and services for future residents. The appraisal considered gender-specific impacts and opportunities in developing mitigation measures and technical assistance to the Company.
The Project will provide access to affordable, energy efficient and climate-resilient housing for specific low-income groups of ger area residents who have no access to basic utilities (connection to water, waste water, heating, solid waste collection). It will not involve any involuntary resettlement of ger residents displaced by other urban development projects currently under way. The development will include a commercial area, a community centre for women and children, common green areas, resident parking and access roads to existing thoroughfares. Over 700 households will directly benefit from improved living standards.
The Project will result in significant benefits, particularly for women, in terms of time previously spent collecting water and fuel for cooking and heating in ger area households. It will provide for better air and water quality in the new housing units. The Project site is conveniently located to public transport, healthcare and grocery stores and provides a community space, which will include the provision of onsite childcare services, developed in parallel by the City of Ulaanbaatar. Separate technical cooperation will support the Company with developing gender-inclusive affordable housing policy and promoting gender equality in its operations. The new housing also provides for 35 units accessible to disabled persons on the ground floor of each residential building. A minimum of 30 per cent of the site area will be used for green areas, recreational activities, walking and cycling lanes, etc.
The main adverse impacts to be mitigated during construction include air quality (generation of dust and gaseous emissions), vehicles and machinery noise, waste disposal, road safety and access restrictions. These will be managed through specific management plans developed with the support of a Project Implementation Unit and support consultant, and implemented by construction contractors and sub-contractors.
The consultant has developed a stakeholder engagement plan, which the Company, PIU and contractors will use to ensure that project affected residents are informed in a timely manner of construction activities, impact mitigation measures, and grievance channels.
An Environmental and Social Action Plan (ESAP) has been developed to detail the objectives, activities schedule and responsibilities to manage the Project's risks and impacts. It sets indicators against which Company, PIU and Contractor performance can be measured. The ESAP sets out the requirement for the Project to have Environmental, Social, Health and Safety Management System and Management Plans in place before construction starts. A General Environmental Impact Assessment (GEIA) still needs to be submitted as per Mongolian regulations; the resulting requirements for an EMP or Detailed EIA (DEIA) will need to be fulfilled. The ESAP has been shared with the Company and the City and will be agreed before Board.
Technical Cooperation and Grant Financing
TC 1: Feasibility study for the Project: up to €315,400, financed by the SSF.
TC 2: Individual Consultant to assist with selection of PIS TC consultants: up to €26,700, to be financed by the SSF.
TC 3: Project Implementation Support (PIS): up to €750,000, to be financed by the GCF.
TC 4: Corporate Development Programme (CDP): up to €350,000, to be financed by an international donor or the SSF.
TC 5: Gender Advisory Services (GAS): up to €35,000, to be financed by the GCF.
Company Contact Information
Ms. Ayasgalan Molor
Governor's Office of the Capital City
Janjin D.Sukhbaatar's Square - 7 Ulaanbaatar - 15160 Mongolia
PSD last updated
29 Mar 2021
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Independent Project Accountability Mechanism (IPAM)
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