: Ulaanbaatar Urban Services and Ger Areas Development Investment Program Project 1

Transcription

1 : Ulaanbaatar Urban Services and Ger Areas Development Investment Program Project 1 Improved Urban Planning and Subcenter Development Consulting Services Package OUTLINE TERMS OF REFERENCE 1. The Government of Mongolia intends to procure the consulting services of an international firm to provide services to provide urban planning and subcenter development services for project 1 of the Ulaanbaatar Urban Services and Ger Areas Development Investment Program (the program). 2. The Municipality of Ulaanbaatar (MUB) is the executive agency for the program and project 1. The MUB s Urban Development and Investment Office will be responsible for managing program implementation. A program management office (PMO) has been established under supervision of the vice mayor in charge of urban development and investment. The program will be implemented from December 2013 to December Implementation of project 1 has started in December 2013 and will be completed by December The services will provide support to the MUB to perform (i) the preparation and adoption of Integrated and Participatory Local Development Plans for two subcenters in Ulaanbaatar; (ii) the preparation and adoption of transparent mechanisms to regulate land redevelopment, and (iii) capacity development of relevant MUB offices and other stakeholders in integrated urban development planning and land redevelopment processes and approaches; and other activities, as appropriate. 4. The international firm should have adequate international expertise and experience in urban development, urban planning, and urban land management and re-developement. Specific experience is required in the areas of redevelopment/upgrading of poor urban areas (preferably in Mongolia). A. Program Rationale and Description 5. The Ulaanbaatar Urban Services and Ger Areas Development Investment Program will support the Ulaanbaatar City master plan in upgrading priority service and economic hubs (subcenters) in ger areas. The investment program will be implemented over 9 years and will comprise three tranches. Combining spatial and sector approaches, it proposes an integrated solution to respond to the growing demand for basic urban services and develop subcenters as catalyst for growth in the ger areas. The program involves financing core urban infrastructure and basic services in priority road sections, investments in socioeconomic facilities based on communities needs, and improvement of service providers operation management. The program will also support (i) community participation, awareness, and empowerment; (ii) urban planning and subcenter development; (iii) extensive on-the-job training in project management and implementation; and (iv) sector reform initiatives necessary to support the program road map and policy framework. 6. In 2012, Ulaanbaatar had a population of 1.3 million. Since the 1990s, it has had limited formal extension of its core, which largely comprises apartment blocks with comprehensive utility services, including dedicated heating, water, and sanitation. However, successive waves of in-migration with ger tents have reshaped the city s geography, with (i) little upgrading or extension of basic urban services; and (ii) government policy, since 2003, to

2 give each citizen about 700 square meters of land. 1 A vast, low-density, peri-urban area, named ger areas, now extends around the city core characterized by unplanned settlement of low- and medium-income households with land ownership, 2 unserviced plots, unpaved roads, and poor facilities. The ger area population is estimated at 800,000, representing 60% of Ulaanbaatar or 30% of the country population. Despite their size, ger areas have until recently been considered temporary settlements. However, their official integration in the 2013 city master plan provides the necessary provision to plan the redevelopment of a formal periurban area. 7. Living conditions in ger areas are difficult. Poor sanitation households almost exclusively rely on open pit latrines and poor waste collection have created highly unsanitary living conditions. Air pollution is among the most severe in the world, particularly during winter because of inadequate household heating systems 3 and unpaved roads. Access to water, supplied by kiosks operated by the Ulaanbaatar Water Supply and Sewerage Authority (USUG), is limited. 4 In 2011, most of the 40,000 people migrating to Ulaanbaatar settled in ger areas; by 2022, the population is estimated to grow by 400,000 from in-migration and natural growth. Under current situation, the forecasted population increase is a serious threat to the city environment and population s health if the situation is not improved. 8. Lack of long-term planning, infrastructure investment, and land use regulation in ger areas have resulted in haphazard development, limited availability of space for public facilities, poor access to socioeconomic services, reduced livelihood opportunities, and unsecure neighborhoods. The lack of basic urban infrastructure is preventing rational and dynamic urban development, increasing the costs of doing business and accessing services. The city core, where jobs and services are concentrated now, has unprecedented congestion. The service gap between the city core and ger areas means ger residents are poorly integrated in the urban economy; it is one of the most urgent and difficult development challenges. While various government and development partner initiatives have significantly improved living conditions in ger areas, approaches have generally focused on specific sectors, failing to design a sustainable vision and provide integrated solutions for the problems of peri-urban development. 9. Subcenter upgrading. High construction cost, 5 lack of urban planning, and inadequate infrastructure constrain the upgrading of ger areas. These areas are predominantly residential with pockets of activity nodes, called subcenters, providing commercial and administrative services. The influence area of a subcenter varies from 30,000 to 100,000 people. Despite the critical function of subcenters in overall spatial and local development, urban services have not been substantially improved. The lack of basic infrastructure limits economic growth and increases negative environmental impacts. 10. The program approach aims to initiate a redevelopment process in ger areas. Improving infrastructure within the ger area subcenters and connectivity with the city core center is critical for inclusiveness and important to facilitate the movement of people and goods, develop urban corridors, and create clusters of subcenters. Better urban planning combined with a network of infrastructure along priority roads will initiate a structural change of subcenter urban fabric. This will (i) improve residents access to basic urban services, public space, and socioeconomic facilities; (ii) support local economic development; (iii) allow 1 Large-scale in-migration, started in 1991 during the economic transition, has been exacerbated by recent severe winters (dzud). During , the population of ger areas increased by about 400, Most ger residents have two types of land ownership: right of possession or right of use. Rights of possession are gradually converted into rights of ownership subject to an administrative procedure and a small fee. 3 Most households rely on unimproved individual coal stoves. 4 Water consumption in ger areas is low at about 10 liters per capita per day (half the recommended minimum by the World Health Organization in similar context). Residents pay 2 10 times more than non-ger area residents. 5 Partly due to cold climate conditions and outdated construction standards. 2

3 residents and businesses to take advantage of urban economies; and (iv) provide better housing options. 6 The changes in land use and higher urban density will improve water, sanitation, and heating services delivery. 11. Road map. The program s road map is based on the government and Municipality of Ulaanbaatar s (MUB) priorities to redevelop ger areas. This will support the MUB in establishing a network of well-developed subcenters to provide jobs, housing, and economic opportunities with reduced soil and air pollution. It comprises sequenced investments, municipal reforms, and capacity building (policy, planning, and monitoring), with four strategic objectives: (i) expand roads and basic urban services (water, sewerage, and heating) within subcenters and improve connectivity to initiate land use transformation; (ii) increase economic and public services through investments in socioeconomic facilities to meet population needs, increase urban functions, and encourage job creation; (iii) increase service provider efficiency by improving water supply, sewerage, and heating service operations; and (iv) strengthen institutions and capacity by improving urban planning and subcenter development, community awareness, participation and empowerment, service provider operations and management, and program implementation capacity. 12. Strategic context and sector policy. In February 2013, the Parliament approved the Adjustments to the Ulaanbaatar City Urban Development Master Plan 2020 and Development Directions The master plan produced two important outcomes: (i) integration of ger area development into the city master plan, and (ii) acknowledgement of the value and function of ger area subcenters as key elements of future city growth. The MUB is developing the Ger Area Development Program and established a Ger Area Development Agency (GADA), supervised by the vice mayor in charge of urban development and investment. On 30 May 2013, the city council resolution No.10/38 endorsed the program, subcenter locations under project 1, and coordination of the investment program with the city master plan. The MUB proposed a special purpose development vehicle (subcenter redevelopment authority) to facilitate, supervise, and coordinate the redevelopment process of the selected subcenters. In addition, the Ministry of Economic Development s Street Project is to improve road conditions in Ulaanbaatar and includes a ger area component. The National Development Strategy and the New Reconstruction Midterm Program ( ) constitute the national framework for program implementation. The program is consistent with the Asian Development Bank (ADB) country partnership strategy, for Mongolia; 7 ADB s Strategy priorities, including environmental sustainability and private sector development; as well as the core themes of green, competitive, and inclusive cities of ADB s Urban Operational Plan Policy dialogue and capacity development. To supplement the strong policy framework, policy dialogue and capacity development will focus (i) in communities, on community participation, awareness, and empowerment, 10 including design and implementation of the social and gender action plan; and establishment of community development councils and small- and medium-sized enterprise development councils (SDCs); (ii) in subcenters, on subcenter upgrading, including technical guidance for preparing and implementing local development plans, urban zoning regulation and construction standards, and a development framework with a transparent mechanism to regulate land redevelopment ensuring current residents are integrated in the redevelopment plan; and (iii) in the city, on the master plan through ongoing ADB technical assistance to strengthen urban planning 6 Up to 60% of subcenter households may consider exchanging their land for fully serviced apartment units. 7 ADB Country Partnership Strategy: Mongolia, Manila. 8 ADB Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, Manila. 9 ADB Urban Operational Plan, Manila. 10 The consultative and participatory approach to ger area redevelopment, introduced by the United Nations Human Settlements Programme (UN-Habitat) during program preparation, was introduced for the project 1 subcenters. 3

4 capacity. 11 Capacity development for water and wastewater utilities will target (i) improving the MUB and USUG management contract, (ii) defining a clearer tariff road map, and (iii) providing technical support to the Water and Sewerage Regulatory Commission. For heating, the focus will be to ensure financial sustainability and capacity of new and existing heating facilities operators in the selected subcenters and to strengthen provisions in management contracts. 14. Financing modality. The financing modality is multitranche financing facility (MFF) to promote a long-term partnership between ADB, the government, and the MUB to facilitate the development of sustainable, inclusive, and livable ger areas. The MFF will support the policy framework for the redevelopment of ger areas, and provide opportunities for constructive dialogue and capacity development on city planning, policy reforms, and physical and nonphysical investments. It will generate critical mass, predictability, and continuity for basic urban services provision in ger areas, and enable ADB to better respond to MUB needs. B. Program Impact and Outcome 15. The impact of the program is improved living conditions in Ulaanbaatar and the outcome is a network of livable, competitive, and inclusive subcenters in Ulaanbaatar s ger areas. 16. The program has four outputs: (i) roads and urban services including water supply, sewerage and district heating are expanded within priority subcenters, and connectivity between them is improved; (ii) economic and public services in targeted areas are improved; (iii) service providers become more efficient; and (iv) institutions and capacity for urban development, program management, and service delivery are strengthened. The program will be implemented over three tranches. 17. Project 1. The first tranche of the MFF will support the city master plan in developing the Selbe and Bayankhoshuu subcenters. 12 The two priority areas are planned to become the main centers in the northern mid-ger area, aiming to deliver urban and socioeconomic services to a current combined population of over 200,000 people. The main components to be financed are: (i) Water supply and sewerage network comprising 18.6 kilometer (km) of water distribution network, two 500 cubic meter reservoirs, bulk flow meters and customer water meters, 20 km of internal sewerage network and extension from the nearest terminals of the existing city sewerage system consisting of: (a) 3.5 km collector main for Bayankhoshuu and 2.6 km for Selbe; (b) sewerage pumping station along with 2 km of sewer pipe extension and 0.9 km of sewer pressure pipe in Selbe; and (c) connection to the public facilities located along the road corridor and within each subcenter. (ii) District heating services consisting of delivery and installation of five heating facilities using most suitable state-of-the-art environmentally friendly technologies; construction of 21 km of distribution pipes and f service pipes; connection to the public facilities located along the road corridor and within each subcenter. (iii) Road and urban services. Combined priority roads of 15 km, sidewalks, bridge (1 km), drainage, flood protection embankments (2 km), culvert (0.8 km), lighting, and urban furniture. 11 ADB Technical Assistance to Mongolia for Ulaanbaatar Urban Planning Capacity Improvement. Manila. Financed by the Japan Fund for Poverty Reduction. 12 Bayankhoshuu subcenter: Songino Khairkan district Khoroo 9; Selbe subcenter: Sukhbaatar district Khoroo 14 and 17. 4

5 (iv) (v) (vi) Social and economic facilities. Two kindergartens, 8 9 hectares of green areas and small squares, and two business incubator centers associated with two vocational training centers. Multi-interventions in the Ulaanbaatar Water Supply and Sewerage Authority to improve the performance of the central wastewater treatment plant and the monitoring of drinking water supply network, through: (a) enhanced local control of flow, pressure and central operational control systems (SCADA); (b) improved energy saving water pumping system; (c) implementing a domestic and industrial water metering program; and (d) installation of remote controlled flow-meters for nonrevenue water management. Institutional strengthening and capacity development for (a) detailed design and construction supervision for the water supply and wastewater collection systems, municipal infrastructure, and heating services; (b) community participation, awareness, and empowerment, and small- and medium-sized enterprise development; (c) capacity building and institutional strengthening for urban planning and subcenter development; (d) PMO to strengthen program implementation capacities; and (e) service provider institutional and regulatory reforms. 18. Projects 2 and 3. The projects will (i) expand coverage of similar investments in project 1 subcenters, and in other subcenters in the northern and eastern ger areas; and (ii) improve road connections between targeted subcenters. Khaniin Material and Market Area subcenters are tentatively targeted for project 2, and Ulyastai and Amgalan subcenters for project 3. Other subcenters may be considered. Heating solutions developed under tranches 2 and 3 will prioritize gas-fired, state-of-the-art, and environmentally friendly technology subject to satisfactory due diligence. C. Outline Terms of Reference 19. The present call for expression of interest refers to improved subcenter planning and development services to be provided for the implementation of tranche 1/project 1 of the program. It will focus on the two subcenter areas where the project 1 infrastructure will be implemented. This represents a total population of around 20,000 persons. 1. Scope of Work 20. Based on the work carried out under ADB TA 7970-MON, the scope of work of the consulting services comprises three inter-related broad blocks of work: (i) support for the preparation and adoption of Integrated and Participatory Local Development Plans for the two subcenters; (ii) support for the preparation and adoption of (an) appropriate subcenter redevelopment mechanism(s) and projects; and (iii) support for capacity development of GADA/MUB and other stakeholders in integrated urban development planning and land redevelopment processes and approaches. 21. These tasks will be undertaken in a highly participatory manner in coordination with community engagement package, with consultants predominantly playing a professional and analytical role, essentially to facilitate the development process driven by the stakeholders. The specific scope elements of each block are described below: a) Integrated and Participatory Local Development Plans 22. Under this role, the consultants will 5

6 (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) review the outline development plans for the two subcenters prepared under TA 7970-MON. More specifically, review subcenter development priorities, needs, strategic objectives and vision of a multisectoral development planning approach covering all socioeconomic aspects including requirements of/demand for public services, education, health care, physical planning, transportation, infrastructure, housing, business and entrepreneurship, natural resources, and environmental protection; develop appropriate urban planning, land use and design guidelines and regulations for the subcenter development plans in consonance with the broader urban planning legal and regulatory framework; refine earlier estimates of impacts on demographic trends, employment, consumption levels, skills and educational levels, informal economic activities, housing, community social fabric, public health and mobility; assess residents willingness to be involved in the redevelopment process and participate in the process of exchanging their land for housing, and preliminary interest of private developers and/or individuals to support this and be involved in medium-rise housing development in support of densification, changes in land use and spatial organisation of the subcenters; on the basis of the above, support the actual formulation of the detailed local development plans in both subcenters, leading to an agreement on the subcenter redevelopment concept and plan through a participatory planning process, involving the resident communities, the private sector, GADA/MUB and other involved government agencies and other stakeholders as applicable; define all stakeholders roles and responsibilities in the planning process; facilitate the community and private development and financing entities consultations and discussions for this purpose; the plans should minimally include: definition of development zones and their urban function development (in terms of housing, enterprise development, commercial use, public facilities) over time; zone-by-zone envisaged land use, density targets, and infrastructure and housing requirements and related land acquisition requirements; estimated capital costs and multi-stakeholders resource requirements for plan implementation; assessment of internal and external risks and obstacles, and risk mitigation measures; with additional inputs from the consultants team contracted for the parallel assignment on community engagement and small- and medium enterprise (SME) development as may be required, ensure that the local development plans identify and conceptualize concrete and location-specific options for at least two priority pilot ger area redevelopment projects in each subcenter, with locational priority i.e. based on proximity to the trunk infrastructure developed under project 1, as well as on willingness of area residents to work together and engage in voluntary land pooling/re-adjustment, and exchanging land for housing; identify and review any potential legal or regulatory conflicts, and propose ways and means (including possible additional regulations or modifications to the existing legal framework) to resolve those; assist GADA/MUB in the development of a comprehensive multimedia communication program in support of the planning process; assist GADA/MUB to take the draft local development plans through the proper steps in the formal planning approval process; if expedient, assist in developing special planning rules and regulations as needed for GADA/MUB to obtain government priority status and expeditious approval for the development plans and their area development projects; closely monitor the planning and re-development process to ensure the full and meaningful participation of the current residents into the subcenter redevelopment plans; and 6

7 (xi) provide inputs on further subcenter development in formulating the project two feasibility study. b) Subcenter Redevelopment Mechanism(s) and Area Redevelopment Project Preparation 23. The consultants will (i) based on the options for this already developed under ADB TA 7970-MON (and with additional inputs from the consultants team contracted for the parallel assignment on community engagement and SME development as may be required), fine-tune and agree specific policy approaches, tools, and methods to facilitate formulation of and communication about the ger areas redevelopment projects; (ii) as the core approach, agree with area stakeholders (including the resident community, interested private developers, and GADA) for the above identified specific areas in the subcenters, the specifics of the most appropriate land re development mechanisms, involving the principles of self-financing, land readjustment, enhancing land values and land use through smart plot re blocking, redevelopment and rehousing, based on community consensus, private sector interest, and ensuring shared benefits for all property holders; (iii) in that context, identify and review any potential legal or regulatory conflicts, and propose ways and means (including possible additional regulations or modifications to the existing legal framework) to resolve those; (iv) support stakeholders in the selected areas in formulating their ger area redevelopment project to a level of detail, which identifies: a) specific assigned land-uses; b) additional area infrastructure requirements and rights of way (beyond trunk infrastructure development already supported separately under project 1); c) envisaged land and property value increments and ownership rights of the re-blocked land and/or new apartments; d) details of land swap processes and compensations enshrining the principle that all people will benefit (i.e. that no community member will be worse off than before the project); e) detailed project capital- and operational costs; f) project revenue streams and financing plan; g) project viability estimates in terms of financial and economic internal rate of return specific agreements for the exchange of a land plot for a served housing unit between resident community members and housing developers, and a monitoring arrangement for compliance; h) proposed implementation responsibilities/arrangements, including those for procurement of civil works, goods and services, and a project implementation schedule; (v) support GADA/MUB in the process of obtaining government approval of the formulated redevelopment project, preferably on the basis of approval criteria for a government priority status activity (as indicated in Block a), para (ix) above); (vi) support GADA/MUB, the local community and other stakeholders in piloting the implementation of at least one ger area redevelopment project prepared along the above lines in each sub-center; and (vii) document the lessons learnt in the formulation and implementation of the ger area redevelopment projects, and provide inputs on additional ger area redevelopment projects in formulating the project 2 feasibility study. 7

8 c) Capacity Development in Urban Planning and Land Redevelopment 24. Technical support for capacity development will be targeted at GADA and other stakeholders in the sub-center redevelopment process. This includes community processes and mechanisms which strengthen the sub-center planning and implementation itself. At the same time, this consultancy assignment will also assist in strengthening the institutional arrangements within GADA to assist it to play its assigned role fully as time goes by. The consultants will engage with, facilitate and prepare GADA and other agencies to readily take up their new roles. 25. Initial capacity-building of individuals will take place through hand-holding of assigned GADA and other stakeholders staff in learning-by-doing in the planning and project development activities identified in the above work blocks a) and b). As experience with these approaches grows and evolves, the scope for more formal, but case study practice-based training will increase. 26. More specifically, the consultants will (i) provide on-the-job training through the above-noted stakeholders staff in learning-by-doing in the processes and activities identified in the above work blocks a) and b); (ii) support the MUB in the establishment, orientation and training of the staff involved in the subcenter planning and area redevelopment processes, particularly, but not exclusively the GADA staff involved; (iii) design and conduct short operational workshops and training courses for stakeholders staff, including GADA and PMO staff on selected operational elements of urban planning, land redevelopment and management; priorities for such training courses will be set in close consultation with GADA; it is anticipated that a short course on land pooling and redevelopment will have high priority; (iv) with additional inputs from the consultants team contracted for the parallel assignment on community engagement and SME development as may be required, support the local community in the zones in which apartment buildings as part of ger area redevelopment projects are planned and implemented in the formation of viable homeowners associations; (v) dialogue with GADA/MUB to review GADA s evolving institutional role and help enhance its institutional capability to carry out this role; and (vi) provide inputs on additional capacity development requirements in formulating the project 2 feasibility study. 27. Another ADB capacity development technical assistance (CDTA) called Ulaanbaatar Urban Planning Improvement is under implementation. 13 Coordination with this CDTA is important. While the CDTA will focus on the overall urban planning policies and processes in the city, the present consultancy assignment will focus on the relationship and linkages of overall improvements in the urban planning system and processes introduced by the CDTA as they impact on ger areas. The consultants should also work closely with consultants hired under project 1 to strengthen the PMO and (as noted above) those for Community engagement and SME development. 2. Finance 13 ADB, 2013: Technical Assistance to Mongolia for Ulaanbaatar Urban Planning Improvement, TA 8467-MON; consultants recruited under this TA commenced services from late March 2014 for a two-year period. 8

9 28. The total investment requirement for project 1 is estimated at $ million. ADB will finance $53.7 million of which $27.5 million will be financed from OCR, $22.5 million from ADF, and $3.7 million as a grant from the Urban Environmental Infrastructure Fund under the Urban Financing Partnership Facility. The European Investment Bank will provide parallel financing for water supply and sanitation up to $28.38 million. The MUB will provide counterpart funding for $22.4 of the project 1 cost to finance taxes and duties, land acquisition, resettlement, and other miscellaneous costs. 3. Project Implementation Arrangements 29. The MUB will be the executing agency of the program. The MUB s Urban Development and Investment Office will be responsible for coordinating program implementation. A PMO has been established under the vice mayor in charge of urban development and investment. A program steering committee, chaired by the mayor of Ulaanbaatar and comprising government officials, has been established to provide strategic and policy guidance. The program will be implemented from December 2013 to December Project 1 implementation will start in December 2013 and be completed by December The PMO will be staffed with (i) a program director; (ii) chief engineer, (iii) procurement expert, (iv) environmental/safeguards expert, (v) program accountant/financial expert, (vi) four design and construction supervisors specialized in the fields of water supply and sewerage, district heating, and urban infrastructure development, (vii) office manager, and (viii) translator. The PMO will be in charge of the overall implementation of the project and will be supported by consultants. 4. Consulting Services 31. An international consulting firm will be recruited by the PMO in accordance with the ADB Guidelines on the Use of Consultants by the Asian development Bank and its Borrowers (2013 as amended from time to time) using the quality and cost-based selection (QCBS, 90:10) method and based on full technical proposal. 32. A consultants team will be fielded to implement the assistance. It is estimated some 70 person months of consultants 20 person-months of international, 50 person-months of national consultants, and advisers will be required. The consultants will have expertise in urban development planning and finance, poor urban areas redevelopment/upgrading, land pooling/land redevelopment, community and private sector partnership for housing development. The total cost of the consulting services package is estimated at $0.8 million over a 2.5-year period from 2014 to The requirements in person-months are detailed hereafter. International Positions Person-months National Positions Person-months Team leader/urban 8.0 Deputy team leader/architectplanner 20.0 development finance specialist Urban planner/architect 4.0 Urban land management specialist 13.0 Land management 4.0 Legal specialist 5.0 specialist Real estate market 2.0 Financial analyst/accountant 3.0 analyst Community participation specialist 2.0 Urban economist 3.0 Housing finance specialist 3.0 Civil/structural engineer 3.0 Monitoring analyst 2.0 Total Person-Months 20.0 Total Person-Months

10 34. The consulting firm will work under the PMO in cooperation and coordination with all the related agencies and departments from the Municipality and the government. Under the supervision and the leadership of the PMO, the consulting firm will also work closely and coordinate with the following loan consulting service packages to support the preparation of local development plans, land redevelopment mechanisms and regulations and area redevelopment projects: (i) detailed design and supervision; (ii) program implementation management support; (iii) community engagement and SME development; and (iv) improved operation and management of service providers. Especially tight communication and cooperation will have to be establish taking into consideration the community participation and the local development plans D. Contacts and Links Responsible ADB Officer: Arnaud Heckmann Responsible ADB Department: East Asia Regional Department Responsible ADB Division: Urban and Social Sectors Division (EASS) Executing Agency: Municipality of Ulaanbaatar Queries: Bayarsaikhan Tsend