10295 - AEF VG LIMITED

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Environmental Review Summary

Project Number

10295

Company Name

Michelangelo Executive Lodge Limited

Date ERS Disclosed

Oct 13, 2000

Country

Zambia

Region

Africa

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 12, 2001
Signed : Aug 3, 2001
Invested : Nov 30, 2001

Sector

Resort Hotel (Including Lodges)

Industry

other

Department

Regional Industry - MAS Africa

Project Description

This project involves the establishment of a 15-guest rooms (30 beds) lodge in Ndola, Zambia. The sponsors, utilizing their own resources, have bought two plots, with existing structures that they have renovated and converted into a restaurant, bar, coffee shop and offices. They have also built and equipped the first five guest rooms. These facilities are already in use, and work has started on the remaining 10 suites. All suites will be self-contained with air conditioning, satellite television, radio, and mini-bar. The lodge is located about 2km from downtown Ndola in a quiet residential suburb. The lodge, which operates under the name Michelangelo Lodge, is being established to take advantage of the increase in demand for quality hotel accommodation following the recent sale of the copper mines. The Copperbelt has already started to experience a steady increase in the number of business visitors. The area has only one average quality hotel, which does not meet the demand for a higher quality hotel. The sponsors expect the lodge''s business to come mostly from businesspersons in the following proportions: international 40%, local 30%, and regional 30%. The lodge will provide businesspersons with a quality product, conveniently located in the largest town in the Copperbelt and only 2.5km from the only airport in this part of the country.

Environmental and Social

The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures agreed, comply with applicable Government of Zambia laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.

1. Site history and past contamination: As noted above, the sponsors purchased two plots in an existing residential neighborhood. There is no industry in the immediate vicinity, and no evidence of past contamination of any sort on the properties.

2. Potential social issues involving land occupation, land tenure, land use and physical or economic displacement: As discussed, the land to be used for the project is located in a middle class residential suburb of Ndola. The stands were purchased from the previous residential owner. The sponsors have confirmed that no one other than the seller was living on the property at the time the sponsors purchased the plots.

3. Impact of construction on existing vegetation: Much of the construction to date has utilised existing structures, which have been refurbished and modified slightly. The sponsors have begun constructing the new suites, but this has been done with little or no impact on the existing vegetation. The sponsors consider the garden to be an important feature of the hotel, and have taken care to site all new structures so as to have minimal impact on the existing vegetation.

4. Disposal of liquid and solid wastes, including sewage: Liquid wastes, which consist of kitchen wastewater and sewage, are discharged directly to the Ndola municipal sewerage works. The Ndola City Council has confirmed in writing that it has a sewage treatment plant that produces fertilizer from treated sewage and is capable of handling the wastes generated by the hotel. Solid waste is disposed in large industrial rubbish bins on the hotel property. The waste is collected daily by a private contractor and disposed of at an Ndola municipal landfill. The Ndola City Council has confirmed in writing that the disposed wastes are treated to meet international standards.

5. Source of water and power supply including fuel storage if applicable: Water is sourced from both a borehole on the property and the municipal system. Because supply from the municipal system is irregular, the sponsors utilize the borehole routinely. The borehole water has been tested by the municipal Water Board to ensure that it meets municipal standards, and the sponsors have installed a water filtration and chlorination system to ensure potability. Bottled water is also available for guests who prefer not to drink the local water.

Power is sourced from the national grid. Supply interruptions are common and the sponsors are considering installing a back-up generator. At IFC’s request they have agreed that, if a generator is required, it will be housed in a secondary containment structure capable of holding the entire contents of the fuel tank(s) in the event of a spill or leak. Some of the cookers utilize butane gas. The appraisal report indicated that the storage of gas needs to be improved to insure that it complies with IFC guidelines and relevant local occupational health and fire safety standards. The sponsors have agreed to store the canisters in a locked and covered area that is located away from fire hazards or any structures. The storage area must be posted with appropriate hazard signs in both English and Bemba, the local language.

6. Staff accommodation infrastructure if applicable: Because of its location in a residential area, it will not be necessary to house staff on site.

7. CFC-free cold storage and air conditioning equipment: The sponsors have confirmed that the hotel utilizes non-CFC refrigerants in its cold storage and air conditioning equipment, in accordance with the provisions of the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer.

8. Employee health and safety and training during construction and operation: The sponsors are supervising the construction activities themselves. They have reviewed IFC’s General Health and Safety Guidelines and confirmed that they are complying with all of the provisions of these Guidelines, as well as with all relevant Government of Zambia environmental and occupational health and safety requirements.

9. Fire safety and emergency response preparedness: All of the hotel buildings are single storey structures, and all have more than one means of egress. The construction of all buildings is of brick and plaster, with roofs of corrugated asbestos or metal. The most significant fire risk is from the kitchen. The appraisal report recommends the installation of smoke and heat detectors in the kitchen, as well as additional hand-held fire extinguishers. The report also recommends the installation of a new extraction hood and duct over the cookers. The sponsors have agreed to all of these recommendations.

10. Disclosure of the availability of the ERS for public review will be by an advertisement in the Times of Zambia scheduled to be published daily from 16 October through 20 October 2000. The ERS will be available for review at the Michelangelo Hotel, Plot 126 Broadway Avenue, Ndola; telephone 260-2-620326.

Conclusion & Monitoring

IFC will evaluate the project''s compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering: (i) the status of implementation of any mitigation measures and (ii) ongoing performance of project-specific environmental, health and safety and social activities. Periodic site supervision visits will also be conducted.

This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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