IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

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 which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of site visits and appraising technical and environmental /social information submitted by the project sponsor. The following potential environment, health and safety and social impacts of the projects were analyzed. - Project land acquisition and planning processes; - Cultural property; - Life and fire safety; - Environmental and Occupational Health and Safety Management; - Water and waste water treatment and disposal; - Emissions to air; - Resource consumption; and - Solid waste disposal.

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. - Project land acquisition and planning processes: The hotel is to be built at the edge of the square on which St. Sophia cathedral also stands. The hotel site was formerly occupied by old apartment buildings. These were demolished in 1997 to facilitate construction of the hotel building. Since then, the project has been taken forward by a number of developers, until the site and partially completed hotel were acquired on a willing buyer willing seller basis by the current project sponsors in 2004. The hotel façade is formed of reflective glass, in which an image of the cathedral may be observed. This architectural style while very different from the other nearby buildings was a requirement of the Kiev planning authorities and was chosen to ensure that a visually obtrusive building did not detract from the appearance of the cathedral. An environmental impact study was commissioned for the proposed hotel. This study was reviewed and approved by the Environment Department of the Kiev city administration, and its recommendations have been adopted during building design and construction. - Cultural property: When excavation started for construction of the hotel’s foundations, a number of human skeletons and some historical artifacts were uncovered. Construction was stopped and the site was investigated by the National Ukrainian Academy of Sciences Institute of Archaeology. A total of 56 skeletons were recovered which are believed to date from a 17th or 18th century graveyard. The skeletons were removed to the Institute for further archaeological analysis, and the state of the site as found was documented. Following completion of the Institute’s enquiries, a permit was issued stating that archaeological research work was completed and granting permission for excavation to continue. In the light of this chance discovery, the Institute was later asked to investigate the area immediately in front of the hotel building, facing the cathedral before excavation for the underground car park started. These investigations showed that the area intended for the car park did not contain any matters of archaeological or cultural significance and so permission for construction to proceed was granted. Life and fire safety: The project developers have specified that life and fire safety provision in the hotel must meet Ukrainian requirements and European Union norms if in any respect these are more demanding. Fire safety and control devices include alarms, compartmentation systems, emergency lighting and dedicated emergency egress routes, sprinklers and hydrants, and smoke extraction systems from public areas of the hotel. An independent life and fire safety consultant has been commissioned to review fire safety design of the building and assess compliance with IFC’s Life and Fire Safety Guidelines. Any corrective actions recommended by the consultant will be implemented, and the consultant will make a post-construction check to ensure that necessary actions have been completed satisfactorily. In addition, the Ukrainian authorities will require that fire safety precautions meet their requirements as a condition for allowing the hotel to operate. - Environmental and Occupational Health and Safety Management: Environmental and Occupational Health and Safety management will be the responsibility of the hotel management company expected to be Hyatt International. This company’s existing management systems, will be used in Kiev and appropriately trained personnel will be responsible for day to day implementation. These management systems will meet IFC’s requirements. - Water and waste water treatment and disposal: The quality of water supplied by the city water system to the project has been analyzed and the water has been found to meet Ukrainian and IFC requirements for drinking water. Nevertheless, water supplied to the hotel will be passed through sand filters and then subject to ultraviolet treatment to ensure that it continues to meet drinking water standards. Drains from the hotel kitchens shall be equipped with grease traps and those in the parking garage will be equipped with oil separators, both of which shall be serviced regularly. The remaining (pre-treated) liquid effluent will be discharged to the municipal sewer for treatment by the municipal waste water treatment plant. - Emissions to air: The hotel will use natural gas-fired boilers for space and domestic hot water heating. These will be equipped with burners meeting IFC and local NOx emission requirements. Discharges of sulfur oxides and particulate matters are not expected. Air conditioning systems will use an HFC refrigerant. The hotel’s dry cleaning systems will be specified to meet the requirements of Hyatt International and IFC. - Resource consumption: The hotel’s services will be designed to achieve high levels of energy efficiency, for example air handling units will recover heat through air: air heat exchangers or run around coils and variable speed fans and pumps will be adopted. Low water consumption fittings and appliances will be specified. System design has been reviewed by the State Energy Savings Inspectorate, which has confirmed that the design meets local energy-saving requirements. - Solid waste disposal: Solid wastes will be sorted and materials such as glass, metals and paper/card will be sold for recycling. Other solid wastes will be disposed to designated landfill by an authorized contractor.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.

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: ongoing performance of project-specific environmental, health and safety activities [as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted.