The project will be implemented by the Taimen Conservation Fund (TCF), a Mongolian NGO established by Sweetwater Travel, and Hovsgol Travel. The project will be carried out with significant support from Sweetwater Travel, an American fly fishing company, Hovsgol Travel, its Mongolian partner, World Wildlife Fund, and the Mongolian Business Development Agency (MBDA), a Mongolian NGO with ten years of operating experience in Mongolia.

The total project cost is $1,906,000. Of this amount, $975,000 is being sought from the Global Environment Facility(GEF). The GEF funds will be channeled through IFC in its capacity as GEF Executing Agency.

The Eg-Uur watershed area (EUWA) is located in a remote region of Norther Mongolia where the Eg and Uur rivers meet. The high priority biodiversity conservation zone that is the focus of this project consists of approximately 15,000 Ha within the EUWA. The Eg river is 474 km in length with 40,454 km2 of catchment area, originates from Lake Hovsgol and flows south where it meets with the Uur river. The Uur river is 331 km in length with 12,300 km2 of catchment area, originates from the Kheven-Saluu mountains in NE Hovsgol Province and flows south until it meets the Eg river. The combined Eg-Uur, recognized from this point on as the Eg river, flows for another 200 km until it reaches the Selenge river. The triangular shape watershed area, consisting of the Eg and Uur rivers until the point of confluence with the Selenge river is recognized as the Eg-Uur Watershead Area, a total area of aproximately3.48 million Ha.

This is a Category B project, according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental /social information submitted by the project sponsors and field visits by IFC Environment and Social Development Department staff. The following potential environmental, social, health and safety impacts of the project were analyzed:

· Potential for economic and physical displacement as a result of conservation measures
· Identification of local populations as indigenous peoples
· Collaborative management structure and local consultation
· Resource conservation measures and law enforcement activities
· Regional and cumulative impacts
· Environmental monitoring and evaluation program
Location of environmental documents In locally affected community

The ERS was posted according to the IFC public disclosure guidelines in the Bulgan & Hovsgol provincial center post offices, and the seven districts in the EUWA major’s offices. An announcement was posted in the Bulgan & Hovsgol provincial newspapers.