The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.
- Government strategy and commitments to tourism:
Bhutan has pursued a development path that puts environmental and social sustainability at the core of its development goals. Policies and legislation are strongly influenced by these objectives and there is a high level government commitment for development that recognizes and supports Bhutan’s unique environmental and cultural heritage. Bhutan’s 9th 5 year plan recognizes the importance of the private sector as an engine of growth and establishes a framework for a more private sector driven economy. Tourism is seen as a potentially significant sector in this framework because it plays to the country’s natural assets (culture and environment), can generate significant employment, and can be developed in a sustainable manner that ensures the protection of Bhutan’s culture and environment. A national eco-tourism strategy has been prepared by government with assistance from WWF - with a strong emphasis on sustainable tourism development.
Government feeling is that there is now a high level of commitment to environmental/ cultural issues in Bhutan and that careful expansion of the tourism industry can be used to support economic development and encourage /conserve cultural activities. The aim over the 9th 5 yr plan is to increase visitor arrival from the current levels of c7,000 to a minimum of 15,000.
- Company commitments and capacity to deliver sustainable tourism:
The company has demonstrated a commitment to environmental and cultural sustainability (see below) and recognizes that they need to be particularly sensitive to Bhutan’s cultural and environmental heritage, and the role that tourism can play in protecting these assets. They also recognize that uncontrolled tourism could have significant adverse impacts. To ensure that the company is able to operate in a manner that protects and enhances environmental and cultural resources, it will develop a set of principles that will guide its activities. The development and adoption of these principles will be a Condition of Disbursement for IFC investment (see appendix 1). The company also recognizes the need to make guests aware of environmental and cultural issues and will develop briefing material for guests and information for guides.
- Site acquisition and development:
Land for all sites has been acquired through willing buyers willing seller arrangements and there has been no involuntary resettlement. All properties were previously developed / or lie adjacent to land that has been developed, and there will be no significant direct impact on natural habitats/ or biodiversity.
Planning permission has been given to the company at each of its six sites. In the development of these sites the company has taken particular care with siting, architectural detail and access arrangements so that each lodge has the minimum visual, cultural and environmental impact. This is especially important given the environmentally sensitive and highly visible nature of at least two lodges (Gangte and Trongsa).
All lodges (and associated buildings) will be built in a traditional style and with traditional materials. Stone and sand will be obtained from government approved sources. Most wood will also be sourced from local government controlled concessions. Small volumes of non Bhutanese timber will be imported for specialist purposes.
Construction labor will be sourced almost entirely from India and will be housed in adjacent construction camps. Running water and sanitation facilities are provided. These facilities are rudimentary but adequate.
Improvements in construction site occupational health and safety (OHS) will be made as a result of the IFC investment. These will include an initial safety audit (based on IFC requirements) for each lodge site, briefings and discussions on OHS issues with supervisors and contractors, and more regular site audits. Evidence of better OHS practices and implementation of site audits/monitoring will be a Condition of Disbursement for IFC.
- Site operations:
IFC requires that its clients achieve certain levels of environmental and social performance in their operations (eg air emissions, waste water quality, solid waste management). BRCL has designed its sites and operations so that it will be able to operate in compliance with IFC’s requirements. Specifically:
Energy will be obtained from the national grid for five sites and at Gangte, the company will install a permanent independent power supply (diesel generator) for electricity supply. There will also be back up diesel generators at all sites. All generators will be new and modern sets designed to operate with minimal noise and emissions. Oil storage will be in buried underground tanks with secondary containment.
Water supply will be from mains or natural sources (river/springs). There will be no impact on the availability of water to other users and BRCL will treat all incoming water to ensure high levels of water quality.
The company will install waste water treatment plants (WWTP) at each lodge. The plants are new, and will operate to IFC requirements. The WWTP’s will be buried or installed within buildings at each lodge. Treated waste water will be discharged to adjacent watercourses or (in the case of Gangte) will be used for irrigation. Sludge will be removed by local authorities or disposed of on site by the company.
All lodges will have resident engineers qualified to manage and maintain most facilities and a chief engineer will be resident in the country. Regular maintenance contracts will be implemented for the waste water facilities.
Landscaping plans for the lodges will include the retention of existing vegetation /trees wherever possible and any new planting undertaken will reflect local vegetation.
The company will try to obtain food and other goods (eg uniforms and art work) from local suppliers, provided that quality and consistency standards can be met. The company and IFC are considering how best to support the development of “local supply chains” for the lodges and will discuss opportunities and ideas with suppliers over the next few months.
The company anticipates that it will employ approximately 200 staff (including lodge staff, drivers and guides) and is developing a staff manual. The company will recruit Bhutanese nationals wherever possible and is developing a staffing and training program for its employees. The company has made commitments to promote Bhutanese nationals to management and other senior positions when they have developed adequate skills and experience.
Appendix 1 - Bhutan Resorts Company Limited Operating Principles
Bhutan Resorts Company Limited Operating Principles
These principles define how we will work in Bhutan. They will help to build our brand and credibility as we begin operations and will ensure that we provide a quality driven service that respects local culture and environments. Over time they will allow us to enhance performance, increase efficiency and conserve resources.
These principles reflect the first time that a tourism company in Bhutan has committed to specific targets and objectives in relation to quality, environment and cultural issues, as such they set a precedent – both for ourselves and others who follow our lead:
1. Our Guests
We will offer exceptional, efficient, family oriented service to all of our guests
2. Our Staff
We will provide high quality employment that encourages a pleasant, productive environment for our staff
3. The Environment
We will develop and operate our lodges and associated facilities to the highest standards, with full respect to Bhutan’s unique natural heritage and encourage environmental awareness through community based participation exercises
4. Our Neighbors
We will respect our neighbors and showcase Bhutanese tradition and culture in a sensitive and responsible manner, as well as promoting local supply lines/services to further encourage the economic development within our respective destinations.
