25605 - AEF Protea Hotel

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Environmental & Social Review Summary

Project Number

25605

Company Name

PROTEA HOTEL ARCADES LIMITED

Date ESRS Disclosed

Mar 19, 2007

Country

Zambia

Region

Africa

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 1, 2007
Signed : May 2, 2007
Invested : May 29, 2007

Sector

City and Business Hotel

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Africa

Project Description

The project consists of the construction and operation of Protea Hotel Arcades (PHA) in Lusaka, Zambia, for an estimated total cost of $4.6 million. PHA will be a four star hotel with 100 rooms and conference facilities. It will be located at the popular Arcades Mall, next to the main road linking the international airport to the central business district of Lusaka. The hotel will be owned by Union Gold Zambia Ltd.

Overview of IFC's Scope of Review

The review is based upon a visit to the project site in Lusaka, discussion of pertinent issues with key Sponsor representatives and examination of the Environmental Management & Monitoring Plan for the Arcades Shopping Centre and Protea Arcades Hotel (DH Engineering Consultants, 2006).

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

The sponsor has presented plans to address potential 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 IFC environment and social performance standards and environmental, health and safety guidelines. The information about how potential impacts will be addressed is summarized in the paragraphs that follow.

- Environmental and Social Assessment & Management:

An Environmental Management & Monitoring Plan (EMMP) was completed for this project by DH Engineering Consultants in May 2006 in order to satisfy the requirements of the Environmental Council of Zambia (ECZ). The EMMP details key construction phase and operational phase mitigation measures associated with the mall and hotel developments. Environmental and social impacts associated with this project are limited and will be managed by the hotel manager and his/her staff as part of normal operating procedures.

- Labor and working conditions:

There is no permanent workforce as yet as the Project remains under construction. Once fully operational, the hotel will employ between fifty and sixty staff members. Union Gold has a centralized human resources function covering its various hotels but each hotel establishes its own conditions of service, which must be approved by the Ministry of Labour (Government of Zambia). There have been no retrenchments over the past seven years at any of the other hotels and turnover has been extremely low (only two persons having left the company). Sponsor employees are remunerated at a level above the minimum wage stipulated for the sector and generally enjoy favorable conditions of service. There is a labour union catering for the sector but members would need to contribute 2 % of their wages as a membership fee and none of the company’s staff have reportedly joined this union to date. The Sponsors do not make use of child labour or forced labour, and do not allow discrimination on the basis of race, gender, cultural background or sexual orientation. Periodic inspections of both the construction site (Protea Arcades Hotel) and operational hotels are undertaken by the Department of Labour in order to ensure that national regulations are being followed.

- Pollution Prevention:

Potable water for the hotel will be sourced from the Lusaka Water and Sewerage Company main distribution line. Sewage and waste water will likewise be discharged into the Lusaka Water and Sewerage Company main discharge line. Solid waste disposal will be undertaken by a private waste management contractor, and disposal will occur at an ECZ licensed dump site. The current waste contractor servicing the Arcades Mall – as stipulated by the Government - is CleanFast Ltd, and it is foreseen that this operator will also service the new hotel. Power supply will be provided by ZESCO, the national provider, via connections developed for the Arcades Mall. In addition, a back-up generator will be maintained on site in case of outages.

- Emergency Response Arrangements:

The basic elements of the life and fire safety design includes two main fire hydrants per floor with hose reels fed by dry risers, fire doors on each floor, fire extinguishers located at strategic points throughout the hotel, fire blankets in the kitchen area, smoke detectors and fire alarms in the rooms and a centralized fire monitoring panel. The Sponsors will provide IFC with an independently verification of life and fire safety design parameters and the adequacy thereof within the Zambian hospitality industry context and in relation to Protea Hotel Group standards.

Stakeholder Engagement

This hotel is situated in an urban area and no communities will be affected. Key stakeholders, including the ECZ, utility companies, Mall management and various Government of Zambia Ministries have been kept informed of this development via the permitting process (e.g. the submission of the Environmental Management & Monitoring Plan).

The following document is attached: Environmental Management & Monitoring Plan for the Arcades Shopping Centre and Protea Arcades Hotel (DH Engineering Consultants, May 2006).

For more information and to view a hard copy of this document please contact:

Mrs. Efi O’Donnell, Finance Director
Union Gold
1633 Malambo Road (Box 51018), Lusaka, Zambia
Telephone: +260 1 242780/2
Fax: +260 1 242 785
E-mail: efi@zamnet.zm

Client Documentation

File Name	Actions
Env Mgt & Monitoring Plan - Protea Hotel (May 06).pdf

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

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