1. MONGOLIA: Cost Benefit Analysis (CBA) Project selection Team members present at the training: Ms.Tsendsuren Batsuuri, Ministry of Environment and Green Development, Ms.Erdenetsetseg Baasandai, Institute of Meteorology, Hydrology and Environment Ms. Munkhtsetseg Zorigt, Mongolian National University Capacity Building Program on the Economics of Climate change adaptation 2 nd Regional training, Bangkok, Thailand 1 st October 2013

2. Case 1: Overview of Selected Project for Agriculture Project Name: Introducing water-efficient irrigation technology (for farmers who grow seabucktorn and blueberries ) in Kharkhiraa river basin in Uvs province Alternative scenario: (1) continue with current practice

3. Case 1: Current situation Canal irrigation system Current irrigation practice Surface/ flood irrigation is widely used in the target region with water coming from irrigation canals (through a tube, direct divergence from the river with assistance of dam, or through open canals). Problems --No mechanism for allocation of water among different users raising conflict among them (herders, farmers) -Not enough water for everyone especially downstream people during months with peak demand -Payment for water is starting with the new law

4. Case 1: project activity Berry Seabuckthorn Target crop* *Drip irrigation is more suitable for high value crops (because of high capital cost of the system) that are planted in rows. Activities: -Installing drip irrigation system -Digging well (to secure water when no water is coming from canals) -Connecting to electricity source Project time frame: May 2014- September 2014

5. Case 1: Cost and benefits of the project and challenges Costs 1.Capital cost of drip irrigarion system 2.Cost of digging well 3.Cost of building transmission line 4.Operational cost of drip irrigation system and well (electricity and fuel usage etc) Benefits 1.Water saving 2.Increased yield 3.Labor saving

6. Case 2: Overview of Selected Project for Water Project Name: Protection of upstream of Ulz River basin (protection of headwater stream of Ulz river). Alternative scenario: no protection

7. Case 2: project activity Activities: -fencing around the upstream -planting trees around the fence -Making exits, passways for households and animals to get to the water. Project timeframe: May 2014- October 2014

8. Case 2: Cost and benefits of the project and challenges Costs 1.Cost of fence 2.Cost of tree planting 3.Maintenance cost Benefits 1.Conservation of river run-off 2.Clean water 3.Sustainable water supply 4.Support recharging of ground water resources 5.Improved sustainability of ecosystem

9. Overview of (alternative)* Project for Water Project Name: Construction of a dam and 100 MW Hydro Power Plant on Orkhon river to collect flood water, produce electricity that can help regulate demand of the central energy system. Alternative scenario: Not building the proposed HPP by (1) Building coal fired thermal power plant or diesel power plant * Depending on how much more work it requires from us, to be selected simultaneously.

10. Case 2: project activity Activities: -construction of dam, hydro power plant and transmission line Project timeframe: 2014- 2018

11. Case 2: Cost and benefits of the project and challenges Costs 1.Construction of dam 2.O&M cost 3.Accident cost 4.Downstream effect 5.Land inundation loss 6.Fishery loss Benefits 1.Power generation 2.Flood protection 3.CO2 emission reduction 4.Peak demand regulation 5.Economic growth 6.Air pollution reduction