Completion auditing for economic displacement

“Oyu Tolgoi” LLC (the ‘Company’) would like to invite potential and/or experienced suppliers/individuals to submit their Expression of Interest (EOI) in relation to “Completion Audit for Economic Displacement”.

[An EOI is only a preliminary step to a formal tender process to understand and identify whether there are potential suppliers in the market that are interested in and capable of satisfying the procurement needs]

SCOPE DESCRIPTION:

Full construction of OT mine facilities and associated infrastructure was undertaken in 2011-2013. As a result, 89 herder households were impacted, with winter shelters in proximity to off-site, mine-related infrastructure including Khanbumbat airport, the Gunii khooloi bore field, and water pipeline, and the transport/infrastructure corridor of OT. OT entered into individual compensation agreements with these 89 impacted households. In aggregate, OT required approximately 10,500 hectares of land for the construction and operation of the mine and ancillary facilities.

The 2011 Compensation Agreements for the 89 economically displaced herder households were established on a 5-year timeframe as follows: 69 households in November 2011-2016; 18 households in December 2012-2017; and 1 household in 2013-2019.All Compensation Agreements included employment opportunity, training, sustainable pastureland management support, tertiary scholarship and short-term training. As October 2016, all (100%) of the 89 households identified as economically displaced had received all compensation entitlements identified in the RAP. In line with the 5-year timeframe intended for the compensation agreements and the requirements of the RAP and Compensation Agreement, an external review, or Outcome Evaluation was conducted in 2017.

The Outcome Evaluation was undertaken in late 2017/early 2018 in consultation with the Tripartite Council (TPC). A key finding was that the majority of resettled households (81) had economic livelihoods at a level above their 2011 baseline. The evaluation also found that the livelihoods of seven impoverished households had not been restored, and that an additional four households, while maintaining their livelihood, had only slightly increased their income compared to 2011.

On the basis of above findings it was recommended that compensation agreements be closed out for the households whose livelihoods and water self-sustainability were fully restored. It was also recommended that individual Herder Livelihood Improvement Plans (HLIPs) be established for each of the 11 displaced households whose livelihoods had not improved and for the five households who were still receiving OT water deliveries.

Together, these households and OT developed HLIPs with agreed detailed corrective actions and timeframes required to appropriately restore livelihoods and self-sustaining water supplies, including realistic targets and an agreed exit strategy for OT support. As at end 2020, all of the corrective actions in the HLIPs had been implemented, as agreed with herder households.

OBJECTIVES AND SCOPE:

The objective of the Completion Audit is to determine whether RAP commitments and activities have been appropriately delivered and have resulted in the desired outcomes. That is, primarily whether affected people’s livelihoods have been fully restored based on the indicators detailed in the RAP.

OUTCOME:

• Review of the Compensation Agreement parties’ compliance (delivery) with their respective responsibilities;
• Assessment of stakeholders satisfaction with the delivered commitments;
• General conclusions regarding the Compensation Agreement and recommendations for future considerations.

PURPOSE:

The purpose of the Completion Audit is to determine whether RAP commitments and activities have been appropriately delivered and have resulted in the desired outcomes. That is, primarily whether affected people’s livelihoods have been fully restored based on the indicators detailed in the RAP.

PERSONAL QUALIFICATIONS:

An auditor team of 3-4 appropriately qualified individuals is envisaged. This includes sociological, micro-economic and animal husbandry expertise that will be vetted for qualifications and relevant experience, including in relevant audit and impact evaluation areas. Strong preference will be given to teams with experience working with Mongolian herders and in the mining sector in Mongolia, and with independence from OT (for example, that have not been contracted in any capacity by OT in the past).

It is important that the team has experience conducting assurance and audits on resettlement programs in compliance with international standards on other projects in Mongolia or the region.

SUPPLY TIMETABLE:

The Supply Timetable for the Services and Goods under this SOW will be as follows:

The detailed TORs are attached.

Interested and experienced suppliers are invited to submit their EOI and must include/attach, as a minimum, the following documentations / information:

Mandatory documents:

• State registration certification

Scope specific documents:

• Scope specific experience for each scope of interest
• Any other document and requirement if applicable
• Auditor`s special certificate for audit if applicable

Any interested suppliers who wishes to participate in the EOI, must be registered in “Oyu” supplier database. If you have not registered in “Oyu” database, please register at https://oyu-supplierdatabase.ot.mn/.

EOI documents must be prepared in Mongolian and/or English and must be submitted via “Oyu” Supplier database before 6pm, (Ulaanbaatar time) 17 Nov 2022.

Important notice:

• The Company is only seeking Expression of Interest from potential suppliers and makes no representation or promise in relation to procuring work from a supplier or suppliers.
• The Company reserves the right to refuse any document(s) which is incomplete or submitted after the specified date & time.
• The Company will not accept any EOIs stored in internet storage or in any other webpages and links.
• The Company will not be responsible for any costs associated with preparing and submitting an Expression of Interest to the Company.
• There will be no Questions and Answers provided during the EOI process.

“OYU TOLGOI” LLC

PROCUREMENT DEPARTMENT