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 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 and environmental [/social] information submitted by the project sponsor. The following potential environment, health and safety impacts of the projects were analyzed: - sewage treatment/disposal; - solid waste disposal; - power and water supply; - employee occupational health and safety; - tenant operations;and - fire protection and life safety.

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.  Sewage Treatment/Disposal: the Main source of wastewater is domestic sewage and kitchen waste water, anticipated volumes are 43 cubic meters per day. Discharge of sewage and kitchen waste is to the Nairobi City Council (NCC) sewer. The sewer connection to NCC mains sewer line has been approved and NCC have confirmed their ability to handle and treat the quality and quantity of waste generated by Panari. The only other source of liquid waste is storm water run-off from the site onto the roadside drains of Mombasa Road, oil seprators have been installed in car parks to control oil runoff. Gray water from the kitchen and laundry is also used for irrigating gardens, this water will be tested to ensure it is within acceptable means. Solid waste disposal: Solid waste generated during the construction period included excavations for laying of the foundation about 5m deep. Wood, stones, rocks and other materials were generated. During construction, all excavated material apart from the top vegetable soil was used to backfill excavations and pavement areas as appropriate. Broken concrete debris was also used to backfill as hardcore.Wastepaper, pieces of wood and any such waste was collected and dumped to the Nairobi City Council Dandora dumping site.During operation, solid waste generated include human and kitchen waste matter, waste paper and packaging, e.g. plastic paper bags, bottles and containers. Solid waste is collected and disposed of by a private Solid Waste Management company in collaboration with the NCC. Bio-degradables and non- degradables waste are separated to enable recycling off site.Waste minimization measures incorporated into the project include: - Collection of solid food wastes to be sold for composting to piggeries and farms as manure. - Collection of plastic paper bags at strategic points for recycling. - Recycling of plastic containers, e.g. juice bottles and other liquid containers. Power and water supply: all power and water is supplied by the national grid. No new right of way was established to enable connection as there are existing power and water lines on the boundary of the property. A separate service building has been erected on the site which houses all backup power generators and boilers. It is a solid and louvered concrete two- storey structure, housing 2 boilers of 1035lb/h each with service oil storage tank, 2 Calorifiers, 2 compressors and condenser units (CFC-free), 2 circulation pumps, 11000KVA standby diesel generator, 1 500KVA standby diesel generator, and 2 (PCB-free) transformers. Given the relatively small size of the units air emissions are minimal and will comply with IFC requirements on a mass emissions basis. All fuel storage tanks are equipped with secondary containment structures. The main water supply is from the Nairobi Water Company in collaboration with the Nairobi City Council. In addition, there is a borehole sunk up to approximately 200m to supplement the NCC water supply, extraction from the borehole is based on permit limits. The following water efficiency measures have also been put in place: The use of press taps instead of turn- knob taps to regulate water flow from taps and eliminate free- flow. Installation of a moderate pressure system in all water outlets.Installation of low flush toilets.Re- use of “gray waters” for landscape irrigation and outdoor cleaning purposes.Employee Occupational Health and Safety: All employees are thoroughly trained in the operation of all fire fighting equipment. Emergency response and evacuation procedure is also part of staff training. Staff undergo a minimum of two fire drills every year. Staff are well trained in the importance of proper sanitation, and adequate facilities are provided to ensure this. All food handlers as a matter of routine are required to undertake vaccinations against typhoid, cholera and hepatitis B. In addition, all staff are aware of the importance of water conservation and recycling of waste materials.The staff training is carried out at department level, where certain team leaders are assigned the duty of conducting the training. This is mainly on issues of conservation and the environment. On issues of fire safety and emergency response, a section of the security team has specifically been assigned this duty, and they carry out routine training sessions with the various departments, and organize periodic fire drills.Training on health issues is currently being carried out by the Heads of Department in conjunction with the HR Department, but with effect from the 1st of May, 2006, this responsibility will be transferred to an in-house doctor, who will also be responsible for carrying out routine medical check-ups of all staff.Tenant Operations: No industrial/manufacturing operations are permitted on the premises. No business handling hazardous materials/chemicals will be allowed, including dry cleaning operations. Tenants are specifically required to maintain safety standards applicable to their operations. Tenant operations will also be evaluated as part of the fire safety audit as mentioned below.Fire protection and life safety: as per IFC requirements an independent Fire and Life Safety Audit will be completed by the sponsor of the existing structures. All aspects of fire safety (including passive and active systems: e.g., egress, alarms, detection, training, signage etc.) will be upgraded, if necessary, to ensure compliance with IFC requirements. The building includes the following safety design features and equipment: - Water- Total storage capacity is 300cubic m, of which 60cubic m is specifically dedicated to fire fighting. This is stored in a separate storage tank in the water pump room in the basement for this purpose. Swimming pool water may also be used for fire fighting. - Fire pumps- There are 4no. electric motor- driven fire pumps, with one of 26cubic m /h flow rate at a pressure of 50Mh and the other at a flow rate of 14cubic m/ h and a pressure of 60Mh. - Risers- Dry riser connects all floors with inlet breeching located at the front end of the ground floor. - Hose reels- There are 4no. hose reels in each public area, and 3no. hose reels on each bedroom floor. - Portable extinguishers- These are distributed throughout the building in the following manner: 69 x 9kg dry powder, 2 x 9lt water, 0 x 4.5kg carbon dioxide 3 x 9lt foam, 7 fire blankets. - Detectors- 300no. smoke detectors and 98no. heat detectors, including 84 dual heat/ smoke detectors are installed in the entire building. - Sprinkler system- This is installed on all floors and in the hotel bedrooms and is powered by the two fire pumps previously mentioned. - Fire escape staircases- These are on each end of the building and are externalized on the hotel bedroom floors, before turning inwards to become internal on the shopping mall floors. - Fire alarm- 44no. break glass fire alarm call points, with 19no. local sounders are installed. - Fire team- A section of the internal security team is trained and dedicated to fire emergency response and evacuation. - Public Fire Brigade- Nairobi City Council Fire Brigade is readily accessible from 3 different stations, with main support from the JKIA Fire Brigade, located less than 5mins away.This ERS will be made available at the Panari Center premises and the Nairobi City Council offices. Availability of the ERS at these locations has been advertised in a national newspaper.

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 environmental and social performance reports (AESPRs) prepared for the project covering: - the status of implementation of any measures contained in the ERS and - ongoing performance of project-specific environmental, health and safety and social activities as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted.