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 environmental and social review procedure because specific 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 appraising technical, environmental, and social information submitted by the project sponsor. A physical appraisal of the company’s operations and management systems is currently underway by IFC’s staff. Environmental, social, health and safety issues associated with this project include: management of resort construction and operation waste streams and emissions; management of resort construction and operation impacts on the marine environment, including coral reefs and marine fauna; life and fire safety of resort guests and employees; employee occupational health and safety; and labor relations.

Universal pioneered the development of small island tourism in the Maldives. Since the establishment of the Maldives first resort, Kurumba, in 1972, Universal has evolved into a responsible resort developer/operator with a commitment to controlling and minimizing the environmental impact of its business. The company maintains environmental, occupational, life and fire safety management systems and procedures based on tourism industry best-practice across all its resorts and related operations. These systems and procedures fully comply with Maldivian requirements and are generally consistent with the requirements of IFC’s safeguard policies and guidelines. In addition, the Company has a well developed sense of corporate social and environmental responsibility to the communities that surround its resorts. - Environmental Management – Universal’s resorts and related tourism operations manage their emissions to the environment in accordance with all applicable Maldivian regulations. Potable water quality is monitored on a regular basis. Waste water is treated on site and recycled for irrigation purposes, and sludge from treatment systems is used as fertilizer for ornamental vegetation. Solid waste is segregated and disposed at the government’s solid waste management site at Tilafushi Island. Brine from desalinization plants is discharged to the sea. The management of each resort monitors the health of the surrounding coral reef and marine life to ensure that appropriate measures of protection are in place and effective. Occupational, Life and Fire Safety – Universal’s resorts comply with all Maldivian government fire and safety regulations, which are consistent with IFC’s Life and Fire Safety Guidelines. The company contracts a US National Fire Protection Association (NFPA)-certified contractor to maintain all fire protection and fire fighting equipment. The same contractor provides first aid, emergency management and fire fighting training to the staff of each resort on a regular basis. Kitchen and wait-staff are also provided training in food safety and hygiene. Standard records on lost-time accidents and follow-up remediation are maintained by the management of each resort. Construction Management– Universal has followed all local licensing and permitting requirements, including EHS requirements, for the rehabilitation of the Full Moon Resort. Resort management monitors the environmental and occupational safety performance of its construction contractors. Labor Relations – The company subscribes to all applicable national labor laws, and provides employees with opportunities for training and advancement. Universal management has agreed to comply with all applicable World Bank Group environment, social, health and safety performance requirements as a condition of IFC financing. In addition, the company has indicated its interest in expanding its environmental and safety management procedures for its operations with IFC support.

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 Group environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed management and mitigation measures.

IFC will evaluate Universal's compliance with the applicable environmental and social requirements during the lifetime of the investment by reviewing the annual monitoring reports (AMRs) covering environmental, social, health and safety aspects of the company's operations. Periodic site supervision visits may also be conducted.