25692 - Ocean Leisure Company Ltd

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Environmental & Social Review Summary

Project Number

25692

Company Name

Ocean Leisure Company Ltd

Date ESRS Disclosed

Jan 18, 2007

Country

Tanzania

Region

Africa

Last Updated Date

Sep 14, 2022

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 23, 2007
Signed : May 29, 2008
Invested : Dec 9, 2008

Sector

Resort Hotel (Including Lodges)

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Africa

Project Description

IFA Hotels & Resorts and Kingdom Hotel Investments (‘the sponsors’) recently acquired an existing 60 room resort situated on the north east coast of Zanzibar, some 50 km north east of the commercial centre of Stone Town. The project includes the acquisition, addition of 49 new guest rooms, and refurbishment / upgrading of current facilities at a total cost estimated to be about $20 million. The renovated Resort will be operated by Mövenpick Hotels & Resorts. It will consist of low-rise, single story bungalows and entertainment areas. The site comprises a 10.8 ha plot with 450 m of beach frontage and extends 220 – 280 m inland from the high water mark, in an area zoned for tourism development by Zanzibari authorities. There are no forests or protected areas nearby, and although there are coral reefs roughly 1 km offshore these will not be impacted by operations. Ocean-based activities will be non-motorized. Most staff will live off-site and be bussed to the Resort daily.

Overview of IFC's Scope of Review

The review is based upon a site visit to the project site in Zanzibar and review of an independently prepared Environmental & Social Impact Assessment (ESIA) and Environmental Impact Certificate of approval for the project (the latter issued by the Environment Department, Government of Zanzibar). Meetings were held with various members of the project development team, the Zanzibar Tourism Commission and the Zanzibar Association of Tourism Investors (ZATI).

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

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 IFC environment and social performance standards and 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.

- Environmental and Social Assessment & Management:

An Environmental & Social Impact Assessment (ESIA) was carried out for this project by an independent environmental consultancy, according to a Terms of Reference developed by the Ministry of Agriculture, Livestock and Environment. The ESIA report contains a description of key issues and recommended mitigation measures, along with an Environmental Management Plan (EMP). Key issues identified include proper disposal of solid waste disposal, sourcing and recycling of water, sewage treatment, maintaining sufficient set-back distances from the beach, fire safety, avoiding beach erosion and maintaining good relations with adjacent communities via ongoing liaison and social investment. An EIA certificate of approval was issued by the Revolutionary Government of Zanzibar at the end of February 2006, as a pre-requisite for Resort development.

As the Resort is still under construction, there is no functional management program in place yet. The foundations of such a program are provided in the ESIA report. The sponsors will ensure that environmental and social management is formally integrated into the Resort’s overall management system within six months of start-up in the form of an Environmental Management Program based on the recommendations of the approved ESIA. This will include training of relevant staff members, assignment of responsibilities for implementing mitigation measures and conducting ongoing monitoring and reporting to Resort Management.

- Labor and Working Conditions:

There is no permanent workforce as yet as the project remains under construction. 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. A human resources professional will be appointed to manage HR issues once operations begin, including development and dissemination of understandable employment policies and contracts to all staff, establishment of grievance and retrenchment procedures, etc. The sponsors are committed to providing safe, healthy working conditions for their workers and allowing them the right to collective bargaining and freedom of association, subject to Zanzibari laws.

- Pollution Prevention & Resource Conservation:

Domestic waste is collected from site by a community based contractor operating a fenced landfill site within 2 km of the resort. This contractor provides a similar service to a number of other tourism projects in the area, and has been authorized to do so by the local authorities as part of a new drive to keep the island cleaner. Once operations begin there will be an air-conditioned waste disposal area on site to avoid flies and waste segregation will occur. The Environment Department of Zanzibar is currently deliberating on a proposal for all hotels to have their own incinerators, and this issue is under discussion with the sponsors.

Potable water is sourced from a borehole situated roughly 10 – 15 km from the site and reticulated via a pipeline to villages and hotels in the area. The island has ample water supplies to serve this and other east coast resorts, although the associated infrastructure, i.e. pipeline, pumps etc, have become dilapidated. The sponsors recently supplied a new fenced borehole and guard house to improve the general water supply situation for all parties, including communities near the only existing water pipeline for the area. Although the water has been tested and is of potable quality, it has high hardness and is currently treated for certain end uses. It seems likely that the Mövenpick group will install UV treatment and activated carbon filters to ensure that guests and staff receive safe drinking water at all times. Installation of a demineralization plant will be considered in future.

Sewage and waste water from the entire resort will be treated in a new waste water treatment plant situated at the back of the property away from the beach. Kitchen effluent will be passed through a grease trap before treatment. This treatment plant has been installed and commissioned recently and represents a substantial upgrade from the previous system of using septic tanks and leach fields for effluent disposal, which are inherently unsuited to the coral reef environment with its low permeability. The wastewater management system has been sized to accommodate future Resort expansion. Treated sanitary effluent will be utilized for irrigation in the resort gardens to reduce the demand for clean water. As per industry practice, the operators will provide notices in guestrooms that linens and towels will only be changed on a daily basis on request, in an effort to reduce water, energy and detergent use.

- Emergency Response Arrangements:

The existing life and fire safety design includes fire extinguishers at each bungalow and at strategic public areas, pressure pumped fire hoses at all gathering places and smoke detectors in each room. The external security provider will double as a fire team. Fire water will be sourced from the main reservoirs, and instructions on how to react in the event of a fire will be placed in each room, as per good industry practice. Training will be provided to all operational phase staff on life and fire safety equipment and procedures. The sponsors have agreed to commission an independent review of Life and Fire Safety facilities, installations and planning measures in accordance with IFC’s Life and Fire Safety Guideline. All indicated corrective measures will be fully implemented by the client.

- Land Acquisition:

There has been some land acquisition over the past two years associated with the expanded resort footprint. The land acquired has poor agricultural potential, comprising almost entirely of ‘coral rag’, i.e. outcropping stones and sharp rock-like ancient coral formations overlain in places by shallow topsoil. In general, this type of substrate cannot sustain cropping activities for any length of time due to very low fertility and water retention. However, as population pressure has grown subsistence farmers have begun to clear and plant certain resistant crops in coral rag areas. Roughly $100,000 in crop compensation was paid out to an estimated 200 households during the land acquisition process for the expanded resort. The sponsors’ representatives followed a negotiated crop compensation process involving identification of affected farmers, negotiation of compensation rates, payment in cash for affected crops and signature of receipts and presentation of signed receipts to the Lands Department. There have been no compensation related complaints to date. A land tribunal exists on Zanzibar should there be future disputes in this regard. All negotiations involved affected farmers, their village and local government leaders and the sponsors’ representatives.

Land, excluding crops and improvements, belongs to the Government. The sponsor pays an annual rental fee for the use of this land on a per acre basis. Seaweed farming, conducted by local women, and artisanal fishing, conducted by local men, will not be curtailed by the expansion of the pre-existing resort. The resort is in fact likely to provide an additional cash market for fish and crabs caught by local fishermen. If any disruption to local livelihood activities is deemed necessary in future, the sponsors will notify the IFC and ensure that the process is conducted on a negotiated basis, that affected households are fully compensated and that IFC requirements in this regard are followed.

Stakeholder Engagement

Continuity of relations with nearby communities, mainly the village of Matemwe, has been assured through the retention of the previous resort managers as an advisor to the Project. Ongoing discussions have been held with Matemwe leaders both in relation to the expansion project and in relation to compensation issues for additional land acquired for the project. Several meetings were also held with the population and leaders of Matemwe Village during the preparation of the ESIA, the result of which is described in the ESIA as ‘development of a mutual rapport and declared support for the project.’ The sponsors have assisted the village with expansion of its school and construction of a mosque, have employed a number of villagers and have invested in a new pump for the main water line to the area, enabling communities to gain access to a greater and more consistent volume of potable water. Rice has also been donated to local schools to feed needy schoolchildren. Ongoing efforts will be made to ensure that harmonious relations are maintained with local villagers, particularly with respect to resort security and access control issues (excluding the beach, which is a public thoroughfare).

Client contact:
Mark Coppin
Movenpick Beach and Spa Resort, Zanzibar
Matemwe, North Region
Zanzibar

Tel: +255774422850
E-mail: Mark2@ifahotelsresorts.com

Client Documentation

File Name	Actions
EIA approval.pdf
ESIA Report _Feb 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).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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