A BAD AIR DAY: ULAANBAATAR STRUGGLES TO BREATHE AS AIR

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000262

SIPDIS

STATE FOR EAP/CM, EAP/EX, MED, and OES
STATE PASS USTR FOR WINELAND

E.O. 12958: N/A
TAGS: SENV PREL EAID PGOV MG
SUBJECT: A BAD AIR DAY: ULAANBAATAR STRUGGLES TO BREATHE AS AIR
POLLUTION WORSENS

REF: 07 ULAANBAATAR 704


1. SUMMARY: Residents of Ulaanbaatar suffer from air pollution that
is among the world's worst - comparable in airborne particulate
matter to Beijing or Cairo. Much of the problem stems from
garbage-burning and dust from coal-burning stoves at the city's
rapidly growing ger districts. Heating and electrical power plants
as well as motor vehicles also foul the air. On April 10, the
Government of Mongolia (GOM) and donor organizations met to discuss
progress in combating Ulaanbaatar's worsening pollution crisis. The
problem is not merely environmental; in 2006, the social and
financial costs of pollution totaled over US$171.3 million -- 6% of
GDP). Donor and GOM programs have focused on getting ger (yurt in
Russian) residents to use low-pollutant fuels; encouraging apartment
and ger dwellers to embrace more efficient insulation methods; and
replacing antiquated heaters with more efficient heating appliances.
Other programs have focused on paving more roads and maintaining
them better; increasing green spaces with the city; and encouraging
better private-sector energy performance. It is too early to say
whether such programs will prove successful in the long run. END
SUMMARY.


2. The World Bank and Mongolia's Ministry of Fuel and Energy held an
Air Pollution Management workshop in Ulaanbaatar, April 10, to
coordinate central and UB City Government initiatives and policies
on air quality improvement. The participants also discussed options
and issues to ensure sustainable-policy outcomes, shared views and
experiences, and heard an update on donor-supported programs.

UB'S AIR AS POLLUTED AS BEIJING'S AND CAIRO'S
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3. On average, the fine particulate matter (PM10) concentration in
Ulaanbaatar's air is 150, making the Mongolian capital one of the
world's most polluted cities. UB's PM10 is equivalent to levels
found in Beijing and Cairo, three times higher than Mumbai, and five
times higher than New York or Washington DC. Ulaanbaatar's PM10 is
estimated to be between two times higher in summer and 12 times
higher in winter than the minimum acceptable standards. (Note: In
winter, lingering smoke generated by ger districts shrouds parts of
UB, including the neighborhood surrounding the Embassy. Visibility
is often reduced to a 20-50 meters End Note.) The primary sources
of air pollution in UB are the mushrooming ger districts, where dust
from ubiquitous coal-burning stoves, garbage burning and other
activities make up about 50% of the city's pollution. Power plants,
motor vehicles and other sources account for the rest. Today, UB is
home to ten times as many cars as in 1980; few of these cars have
emission control systems. Making air-quality worse are dust storms,
a booming construction market, a dearth of green areas and a
shortage of paved roads.

RESPIRATORY DISTRESS RIFE
--------------


4. According to the World Bank, the financial and social costs of
air pollution are very high, reportedly totaling over US$171.3
million (6% of GDP) in 2006. Social costs include mortality (US$57
million); chronic bronchitis (US$58 million); respiratory hospital
admissions (US$354,900); asthma attacks (US$575,065); emergency room
visits (US$ 207,623); restricted activity days (US$14, 932,750);
lower respiratory illness in children (US$156,156); and other
respiratory ailments (US$ 39 million). The Ministry of Health
reports that respiratory diseases have ranked first amongdiseases
over the past 4-5 years, indicating the effect of air pollution on
people's health.

DIVERSE VIEWS ON REMEDIES
--------------


5. Technical experts, politicians and government officials, among
others, often have differing views on sustainable approaches to the
air pollution problem. The World Bank has funded studies and
research that suggest the best options include better housing;
switching to low-pollutant fuels; more efficient insulation for
apartments and gers; more efficient heating appliances; more and
better maintained roads; increased green areas in the city; and
better private-sector performance (solid waste, district heating).

GREATER DONOR INTEREST
--------------


6. Donor interest has increased since 2007 (see reftel),and new
programs to reduce air pollution are under development. The World
Bank has mobilized about $1 million in technical assistance (TA) to
address air pollution; about $350,000 was spent this year, 43
percent of which was executed by the GOM. There are also several
other donor projects already underway or in development. The Asian
Development Bank is involved in a US$2 million Ger Insulation Fund.
The German Government is funding the thermo-insulation of pre-cast
Soviet-style apartment blocks; the installation of energy meters;
the development of solar-heating systems for schools and hospitals;
and work to make power plants more energy-efficient. JICA intends
to build highway bridges over some roads to reduce
vehicle-exhaust-based air pollution. The World Health Organization
(WHO) is studying the health effects of pollution within households.



7. Three GOM resolutions allocate more than 50 billion Tugriks
(roughly $43 million)to the state budget between 2007 and 2010 for
improving the legal environment to combat air pollution, expanding
infrastructure, building a new thermal power plant and other
measures. (The latter includes introducing electric heaters,
building new energy-efficient apartment complexes to house
ger-district families, and developing semi-coke briquette
production. Others include improving fuel quality, paving roads
that link the central city and ger districts, building capacity of
air quality offices, encouraging the insulation of gers, and
implementing these projects.) (Note: The ruling Mongolian People's
Revolutionary Party sacked the previous UB mayor for ostensibly for
failing to make progress on the city's pollution problem. End
Note.)

ARE SMOKELESS FUELS THE ANSWER?
--------------


8. The GOM is promoting the production and supply of environmentally
friendly smokeless fuel, such as semi-coke briquette and gas, to
counter ground-level air pollution emitted from household stoves and
heat-only boilers. Government Resolution #14 intensifies
experiments to produce semi-coke briquettes and to establish a
semi-coke briquette plant built at the state-owned combined heating
and power plant (CHP) Number II. The resolution also encourages
private-sector participation in developing a briquette industry
through tax breaks. Plans include establishing a sales network for
delivering semi-coke briquettes to consumers, and educating
consumers on the benefits of using semi-coke briquettes. The price
for one ton of semi-coke briquettes is expected to reach
30,000-40,000 Tugriks ($25-$34),compared to one ton of raw coal
which costs between 40,000 and 80,000 Tugriks depending on the
market.


9. A recent World Bank survey indicated that almost 60% of
respondents would buy briquettes only if the costs are similar to
raw coal; over 40% said they would buy briquettes in the future
because they are less polluting; and 95% indicated that they think
the ultimate solution to fighting pollution from ger districts is to
move ger residents into apartment housing.

Minton