25686 - AEF Hotel des Mille Collines

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Environmental & Social Review Summary

Project Number

25686

Company Name

THE COMPAGNIE RWANDAISE D'HOTELLERIE ET TOURISME

Date ESRS Disclosed

Apr 5, 2007

Country

Rwanda

Region

Africa

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 22, 2007
Signed : Jun 1, 2007
Invested : Jan 30, 2009

Sector

City and Business Hotel

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Africa

Project Description

The project entails partial funding of the purchase of Hotel des Mille Collines (Mille Collines), which was purchased in 2005, and its refurbishment. Mille Collines is a 4-star, 112-room hotel in Kigali, Rwanda. The refurbishment, which is expected to take about one year, will allow Mille Collines to compete effectively with other hotels in Kigali. The client will combine country knowledge, sector expertise, and investment capabilities to take advantage of opportunities in the hotel sector in Rwanda.

Overview of IFC's Scope of Review

IFC conducted a physical inspection of the Mille Collines hotel property and associated operations in Kigali, Rwanda, to evaluate hotel operations and to review data submitted previously by the client. Specific facilities and operations evaluated during the site visit included:

- an evaluation of potable water, storm water, sanitary wastewater and solid waste management activities;
- life and fire safety, energy consumption, utilities, and associated E&S issues.

Using information provided by the client, IFC prepared an analysis of energy consumption and potable water costs that were used to source advisory funds for an energy reduction audit and definition of specific capital projects that will alleviate current high energy and potable water supply costs. When the environmental assessment is complete IFC will review the documentation and proposed mitigation measures. The client will be bound by the investment contract to implement mitigation measures above and beyond those currently incorporated into the environmental action plan.

E & S Project Categorization and Applicable Standard

This Category B project has limited specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, and design criteria. The property was purchased from the government in 1968 and is situated in a highly disturbed urban setting. The first phase of Mille Collines hotel and support facilities was constructed and placed into operation in 1973. In 1987 Mille Collines was expanded to add 66 rooms. Aside from landscaping the property is occupied by buildings and parking areas. The project entails hotel renovation with construction limited to a new entry, renovation of the pool bar and selected renovations in individual rooms. IFC is assisting the client with a clean production and energy audit to reduce the consumption and cost of electric power and potable water.

Environmental and Social Mitigation Measures

The sponsor has presented plans to address identified impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with environmental and social requirements, Rwandan laws and regulations and the World Bank/IFC environment and social performance standards and environmental, health and safety guidelines. Detailed information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. Further information is provided in the attached environmental action plan (EAP).

- Social and Environmental Assessment and Management Systems:

The Rwanda Environment Management Authority (REMA) requires an environmental assessment or an audit and management plan as a condition of generating a land use permit for hotel renovation. The Environmental Impact Assessment Office of REMA will conduct the required study or provide a list of REMA-approved contractors that Mille Collines may select to carry out the study.

Mille Collines’ quality and associated affairs are managed by the general manager and the administrative and finance director principally through biweekly meetings with all hotel line management staff including food and beverage, reservations, recreation, and technical and landscape managers. The management team produces written directives for hotel staff and these meetings and directives constitute the management system for the hotel. The technical affairs line manager is responsible for environmental affairs. As a participant in the biweekly meetings he is able to raise issues and obtain management assistance in resolution.

- Labor and Working Conditions:

Milles Collines former owner and operator, Sabena Airlines, commenced operations in 1973. Sabena’s Règlement Intérieur or Internal Regulations document, which is used by Mille Collines, provides a transparent description of working conditions, rules of work and other employee responsibilities and requirements as a condition of employment at the hotel. Rwanda does not yet have a collective bargaining mechanism, definitive labor levels and mandatory rates of pay. To compensate for this shortcoming, Mille Collines’ general manager conducts a compensation survey for hotel employees in Kigali annually and utilizes collected data to define the need for adjustment of employee salaries and other compensation to maintain employees at par with equivalent positions in Kigali. Employees’ salaries are adjusted in accordance with this annual survey. There are currently eight labor disputes associated with employees dismissed for violations of employment conditions clearly defined in Règlement Intérieur or for violations of Ministry of Health regulations. Half of these are associated with the current ownership and management of the hotel. Each is being adjudicated in compliance with Rwandan law.

Mille Collines line mangers conduct employee training and development programs. There is no formal occupational health and safety training program. In accordance with the attached EAP Mille Collines will expand its training activities to include occupational health and safety training for hotel staff. Professional level training in hotel management issues is planned for staff in the offing. A select number of employees will be sent to the Cape Town Hotel School and one employee will be sent to a European Hotel School. One employee recently attended the Rwandan Customer Care Training program.

- Pollution Prevention and Abatement:

Treated sanitary effluent from the wastewater treatment plant serving hotel operations and a flight kitchen is monitored on a regular basis. Analytical results show periodic exceedances of allowable concentrations of principal quality parameters (e.g. BOD5 and suspended solids). The hotel has two wings the first of which was completed in 1973; the expansion including installation of the wastewater treatment plant took place in 1986. Storm drainage from the roof of the original construction is connected to the sanitary sewer and thereby to the wastewater treatment plant. High volume flows from rainfall events produces a hydraulic shock in the treatment works leading to discharge of poorly treated effluent. In accordance with the attached environmental action plan (EAP) storm water from all buildings will be rerouted to storm water drains as part of hotel renovation. Treated, disinfected effluent is discharged to an open storm drain adjacent to the city street below the hotel. The City Council directed Mille Collines to revise treated effluent disposal practices; however Kigali does not have sanitary sewers and only provides open storm drains. In accordance with the attached EAP Mille Collines will resolve final disposal of treated sanitary effluent through an evaluation of the issue in the audit or ESIA required by REMA for the hotel renovation permit.

Potable water trucked to the site and received from the City is filtered prior to use in hotel operations. Solid waste is collected in a steel container, removed by the City, and transported to a sanitary landfill operated by the City of Kigali. Energy and potable water requirements exceed available supplies from Kigali necessitating transport of supplemental potable water by truck and local generation of electric power. IFC is assisting the client with a clean production and energy audit to reduce the consumption and cost of electric power and potable water. The audit report will identify recommended ameliorative measures, projected benefits, and an estimated payback period for capital expenditures based upon savings to be realized.

- Community Health, Safety and Security:

Mille Collines does not have a formal community engagement program outside of interactions such as those described above with the City Council. Mille Collines will utilize this communication channel to communicate the environmental assessment and mitigation measures in the environmental assessment required by REMA, this document and the energy audit in order to familiarize City representatives with positive actions that Mille Collines will take to ensure sustainability of hotel operations.

As part of original construction there were functional smoke detectors in the rooms connected to a central enunciator at the front desk. In the event of smoke detection the front desk would be notified of a fire alarm on a specific floor and then would be investigated. The system is inoperative. In accordance with the attached EAP Mille Collines will employ a life and fire safety engineering firm for design of a life and fire safety system required to comply with IFC’s life and fire safety guideline. Required modifications will be included in building and facilities renovation.

The hotel employs four staff responsible for security at the hotel; none is armed. In the event of a serious security situation Mille Collines security staff is responsible for telephoning a security response contractor. This company’s employees are armed and respond when called. Mille Collines will prepare a contract specification for external security services defining the responsibilities actions of the external security contractor to ensure appropriateness of future responses and compliance with PS4.

Stakeholder Engagement

The Rwanda Environment Management Authority (REMA) requires an environmental assessment or an audit and management plan as a condition to be prepared for permitting the renovation. This process also requires full disclosure of the EA or audit to local authorities including the City Council. Assessment documents along with this disclosure document and the environmental action plan will also be made available to local authorities in Kigali.

Client contact details:

Jean de Dieu Mbarushimana
P.O. BOX 1322, Kigali, Rwanda
Telephone:+250 576530
Fax:+250 577059
E-mail: jmbarushimana@millecollines.net

The environmental documents will be accessible to locally affected communities at the:

- World Bank Group InfoShop at 701 18th Street N.W., Washington, D.C, USA;
- Public Information Center, The World Bank Country Office, SORAS Building; Boulevard de la Revolution, Kigali, Rwanda; and
- IFC’s website at www.ifc.org.

Client Documentation

File Name	Actions
EAP_for_.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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