Green Cities: Ulaanbaatar Green Affordable Housing

Location:

Mongolia

Project number:

50702

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

23 Feb 2022

Status:

Passed Final Review, Pending Approval

PSD disclosed:

29 Mar 2021

Project Description

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.

Project Objectives

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.

Transition Impact

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 resilience solutions. The Project also contributes to the Well-governed quality by improving contractual arrangements and procedures for implementing affordable housing projects with higher energy standards in the City.

Client Information

MONGOLIA SOVEREIGN

EBRD Finance Summary

USD 20,000,000.00

A sovereign loan of up to US$ 20 million (€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

USD 25,000,000.00

Additionality

  • 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 City.
  • Knowledge, innovation, and capacity building: providing technical assistance to the City 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 City'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 City.

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 City 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 City, 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 City, 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 City and will be agreed before Board.

Technical Cooperation and Grant Financing

Pre-signing:
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.
Post-signing: 
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
ayasgalanm@gmail.com
976-11-327190
Governor's Office of the Capital City
Janjin D.Sukhbaatar's Square - 7 Ulaanbaatar - 15160 Mongolia

PSD last updated

11 Oct 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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