1. Recommendations of the Initial Environmental Assessment (IEE) According to the SIEE, the project is identified as a category of B under the ADB environmental assessment requirements, and stated that full EIA is not required. According the ADB Environmental Assessment Guideline (2003), if EIA is not needed the IEE is regarded as the final environmental assessment report. (para. 131) Based on the IEE and its EMP and the countrys environmental legislations, the flowcharts was developed by the project.

2. Assessment of Compliance with conditions & requirements by Aimag ETD End Survey result evaluation by Project Environmental Team Start implementation GOM Category I & ADB Category C No need of EIA GOM Category II Set conditions & requirements by Aimag ETD ADB requires Report of (IEE) GOM Category III & ADB Category A Needs EIA by licensed firms Approval of Environment Management and Monitoring Plans by MNET Inspection by LGUs Yes No EIA Flowchart Pasture & water field surveys by Project Environmental Team Acceptance by Soum Government Unit End Review on proposed locations by AAC Investment proposal by Project Environmental Team (IA/EA) GOM Environmental Categorization by Aimag ETD Review of EIA Report by MNET Yes Approval by ADB Yes No Yes No Yes No End Approval (no- objection base) by MOFALI Monitoring by PMU/PIU ADB Category B Report of Initial Environmental Examination (IEE) ADB Environmental Categorization by Project Environmental Team Yes No Yes No

3. Notes of Steps STEP 1: Pasture & water field surveys – Project experts expect to conduct field surveys for pasture and hydrology assessments at herder groups. – The field surveys are to be conducted with participation of those herders who will use and be responsible for maintenance of future water points. – Social facts are also to be collected during identification processes of project target herder groups. STEP 2: Survey result evaluation – Summary tables on findings of the field surveys will be prepared and evaluated. It will be included in project reports. – The project will check if proposed locations meet to the project requirements. STEP3: Soum governors acceptance – Survey findings will be introduced to Soum Government Units and Environmental Inspector, which results in decisions on acceptance of proposed water point sites and herder groups. STEP4: Investment Proposal or Sub-Project – The term investment proposal is applied in the project documents, meanwhile, the term sub- project is applied in ADB Environmental Guideline. In this document, an investment proposal is used. – The project will prepare an investment proposal that should be submitted to the Environmental and Tourism Department of Ovorkhangai Aimag together with environmental assessment checklists (EAC). – The investment proposal contains descriptions, technical justifications, drawings and maps. STEP5: Environmental Categorization – The project will prepare categorize the selected water point and extension centre sites according to ADB environmental requirements, and submit Environmental Assessment Checklist (EAC) to the Environmental and Tourism Department of Ovorkhangai Aimag for its review and approval. – The environmental assessment checklist will be prepared for each water point and submitted together with the investment proposal. STEP4: AAC review of locations – The Aimag Advisory Committee (AAC) of the project will review proposed locations where water points will be established or rehabilitated. STEP7: Aimag Environmental Inspection – An environmental inspector, who are a head of the Environmental and Tourism Department of Ovorkhangai Aimag, reviews and makes one of following four conclusions: (i) implement the investment proposal without detailed EIA, (ii) implement the proposal if the project meets set conditions and requirements ; (iii) conduct EIA prior implementing; or (iv) reject the proposal according to conditions stipulated in the environmental guideline.

4. Notes of Steps (cont.) STEP8.1: GOM Category I – If impacts of the proposal are below than the levels stipulated by standards, norms, normative, procedure, guidelines, and legislations, start implementing the proposal without detailed EIA after ADB approval. – This category of GOM is similar to ADB Category C. ADB Environment Specialist advised to submit very brief paper with attachment of environmental monitoring plan STEP8.2: ADB Category B – As required by project document report of initial environmental examination is to be delivered. STEP8.3: GOM Category II – Set conditions and requirements. When meets set conditions and requirements, implement the proposal (after ADB approval), if not reject the proposal. – The environmental inspector at the Environmental and Tourism Department of Ovorkhangai Aimag will identify a deadline for meeting such requirements and instruct additional measures on mitigating or minimizing those impacts that should be brought down to appropriate levels in accordance with standards, norms, normative, and legislations. STEP8.4: GOM Category III – For those proposals, which are needs EIA, the environmental inspector at the Environmental and Tourism Department of Ovorkhangai Aimag submits the proposal together with a reference letter to central environmental authority, which is MNET. – After reviewing the aimag inspectors conclusion, as it is shown in STEP12, EIA is conducted by licensed firms. – STEP12: MNET makes a review on EIA report through the Independent Experts Committee. – Based on recommendations made by the committee, MNET approves on implementing the project as well as approves the Environmental Management Plan, Monitoring Plan and their budgets. – This category of GOM is similar to ADB category of A. STEP9: Approval by MOFALI – Soum refer its proposal to the Agriculture Land Relations Division (former Pasture and Crop Division) of MOFALI for initial assessment and verification that proposed water point complies with Government requirements, in parallel with preparation of the detailed proposal. STEP10: Detailed environmental assessment/ Initial Environmental Examination – This step is a continuation of the STEP2. STEP11: MOFALI Approval – After reviewing official letter by ETD, MOFALI issues and submits appropriate letter to ADB together with Report of IEE to ADB. STEP12: ADB Approval – ADB reviews and approves the environmental checklists and or IEE report.

5. Notes of Steps (cont.) STEP15: Implement Environmental Management and Monitoring Plans – Monitoring is to be conducted by the Specialized Inspection Agency and Local Government Unit during implementation period. STEP16: Start Implementation – Pasture use agreements and plans at each herder group – Construction of water points by the selected contractor(s). – Capacity of herders on pasture and water use management. STEP17: Inspection by the LGUs – Construction works will be Inspected by LGU and the Project.

6. EIA Flowchart Review and verification of location of water points START Pasture & water field surveys 1.Pasture assessment survey data 2.Hydrological survey data Any one decision: 1.Acceptance without detailed environmental impact assessment OR 1.Acceptance if meeting certain conditions & requirements OR 1.Conduct detailed environmental impact assessment OR 1.Reject investment proposal 1.Pasture assessment survey results 2.Hydrological survey results Data evaluation of pasture & water surveys Project pasture and water experts with participation of herders and responsible officer of LGUs Review of surveys results 1.Soum Environmental Officer Conclusion 2.Soum Governors Acceptance Letter Soum Governor 1.List of project location of water points (herder groups) by AAC Decision alternatives Project Advisory Committee Environmental assessment 1.Environmental assessment checklist 2.Investment proposal (content is the same as IEE report) Project Environmental Officer Aimag Environmental Department Submission 1.MOFALI Approval (no-objection base) 2.IEE report 3.ADB Approval MOFALI and ADB Responsible Officials Processes DocumentsResponsibility Monitoring LGUs, Project Environmental Team

7. Preparatory Stage Identification of Target Soums through Inception Workshop Nomination of Target Soums by Aimag Advisory Committee (AAC) Advised Target Soum Names by AAC MOU between MOFALI, Ovorkhangai Aimag Government and VSO Invitation to Herders & Herder Groups (HG) in Target Soums Invitation letter through Agriculture Tomorrow Newspaper; Soum Governments HG Identification Participatory Workshops in Target Soums Preliminary Identification of Target HGs Conduct Field Surveys Pasture Study through Participatory Monitoring Workshops pasture type; season of use; edificatory species; coverage; phytomass; general conditions By Project Environmental Team Hydrogeology Study Ensuring Participation by Herders and LGUs assessment on water needs; identification of conditions in terms of geology, hydrogeology, geomorphology, and geo- botany features; geophysical survey selected points; study recharge potential By Project Environmental Team Social Survey: HG formation; share of poor families; herder numbers; livestock number; previous experience; interest of cooperation By Project Environmental Team Establishment of Tripartite cooperation agreement between LGU, MOFALI and Project End of Preparation Stage Compliance with the Project Final Identification of HG by the Project (areas of cooperation with HG: pasture or pasture & water) Pasture Use Planning and Agreement by LGU and HG selected Cooperate with selected HGs in pasture management Cooperate with selected HGs in pasture & water management Yes No Approval By LGU & AAC Yes No