10526 - Chingaola Hotel

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Environmental Review Summary

Project Number

10526

Company Name

Chingola Hotel

Date ERS Disclosed

Apr 6, 2001

Country

Zambia

Region

Africa

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 24, 2001
Signed : Aug 16, 2001
Invested : Oct 24, 2001

Sector

City and Business Hotel

Industry

other

Department

Regional Industry - MAS Africa

Project Description

This project involves the establishment of a three star 40-room (70 bed) business hotel in Chingola, Zambia. In addition to providing accommodation, the hotel will have fully equipped conference facilities to cater for up to 100 people. Chingola is a small mining town in the northern part of Zambia''s Copperbelt about 460km north of Lusaka. The town, like most of the Copperbelt has increased in economic importance following the recent privatization of the copper mines and resumption of mining activity throughout the Copperbelt. To add to its importance, Anglo American Corporation''s Conceal Copper Mines (KCM) has decided to locate its headquarters in Chingola. KCM, in which IFC has recently made a major investment, accounts for 68% of Zambia''s copper mining activities and is expected to attract a significant number of business visitors to Chingola and the rest of the Copperbelt. Chingola Hotel will be the first and only hotel in Chingola of a standard that caters to business travelers.

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 host country laws and regulations and World Bank/IFC requirements. IFC reviewed the project appraisal report, which contains information on all of the key environmental issues of the project. 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: The sponsor acquired the site from the state. The site is a sub-division of a previously demarcated plot within the Chingola municipality and originally designated for office and administrative purposes. There has been no commercial or other activity on the property, and there is no known past or current history of contamination.

2. Potential social issues involving land occupation, land tenure, land use and physical or economic displacement: The site is not known to have served as settlement for people and nobody will be displaced as a result of the project. At the time it was acquired by the project sponsor, there was no income-generating activity, formal or informal, taking place on the property.

3. Impact of construction on existing vegetation: According to the appraisal report, the site is not exceptional in its vegetation, with a number of trees of endemic and exotic species and other vegetation consisting of grasses, shrubs and weeds. Buildings have been sited so that a majority of mature trees will be retained. Landscaping will introduce lawn and tropical exotic garden species appropriate to an urban area.

4. Disposal of liquid and solid wastes, including sewage: There is no municipal sewer near the site. Domestic liquid wastes will be discharged to a series of septic tanks, soak pits and drains. These have been designed and located by the project architect and engineering consultant to ensure that they will function properly and in accordance with local regulations, and will not impact the borehole water supply. The kitchen will be equipped with a grease traps to prevent grease and fats from entering the septic tanks system. Biodegradable wastes will be collected on site and composted. Non-biodegradable solid wastes will be collected in industrial sized bins and collected regularly by licensed private contractors for disposal at a municipal dump site.

5. Source of power and water supply including fuel storage if applicable: The site is linked to the national power grid, but there will be a need for a backup diesel generator, for use in the event of a supply interruption. The sponsors have confirmed that the generator will be installed in a cement containment structure capable of holding the entire contents of the generator in the event of a spill or breach to the unit. Water will be sourced from a borehole to be drilled on site.

6. Staff accommodation infrastructure if applicable: Except for the two managers, no staff are to be accommodated on the premises. Construction staff who are not local residents will be expected to find their own accommodation from existing housing stock in the Chingola area.

7. CFC-free cold storage and air conditioning: The sponsor has confirmed that all cold storage and air-conditioning units will be CFC-free.

8. Employee health and safety and training during construction and operation: The project is expected to create approximately 150 jobs in construction and about 100 permanent positions. The sponsor intends to fill these largely with local residents. Given high unemployment rates in the Copperbelt, it is expected that there will be no shortage of people to fill these positions. The sponsor has reviewed IFC’s policy on harmful child labor and confirmed that the project will be in full compliance with this policy. All employees will be trained in the specific tasks required of their position, as well as in general hygiene and health and safety principles. The hotel design includes provisions for staff lockers, showers and other ablution facilities. Budgets have been designated for staff training in safety and security, before and after the hotel’s opening. The sponsor will comply with staff health regulations in Zambia, which require annual medical check-ups for all employees. Under Zambian regulations, construction contractors are under obligation to follow all local standards regarding health and safety of their workers.

9. Fire safety and emergency response preparedness: The architect’s report stipulates the following: (i) means of escape distances for all rooms will be less than the required minimum; (ii) covered links to rooms will be naturally ventilated with continuous smoke vents at high level; (iii) construction specification generally is inherently fire resistant, using materials of low combustibility/ high fire resistance and low surface spread of flame; (iv) hose reels to be located to provide coverage to all areas; (v) reels to be supplied via dedicated pressurized fire main operating from a reserve tank with booster pumps; (vi) all areas to be supplied by appropriate extinguishers, smoke/heat detectors and fire blankets in kitchen, and specialist design; and (vii) fire alarms to be installed with call at all points of egress from buildings and sounders located to be audible from all areas. The control panel and monitor to be located at the reception under 24-hour observation. The report further agrees to strict adherence to an acceptable fire safety standard (either NFPA 101, SABS 400 or UK codes). A qualified fire expert will undertake an audit of the fire protection and life safety systems and will certify compliance with the chosen fire protection standard. Completion of the fire safety audit to IFC''s satisfaction will be condition of disbursement in the investment agreement.

10. Local disclosure: An advertisement will be published in the Times of Zambia on or about 4 April 2001 announcing the availability of the ERS for public review in Chingola.

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 the status of implementation of any measures contained in this ERS, and 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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