26081 - Tourism Promotion Services Rwanda Limited

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Environmental & Social Review Summary

Project Number

26081

Company Name

TOURISM PROMOTION SERVICES RWANDA LIMITED

Date ESRS Disclosed

Jul 20, 2007

Country

Rwanda

Region

Africa

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Sep 24, 2007
Signed : Oct 2, 2007
Invested : Apr 10, 2008

Sector

City and Business Hotel

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Africa

Project Description

On January 9, 2007, Tourism Promotion Services (Rwanda) Limited (TPS(R) or the company) signed a renewable, 30-year lease agreement with the Government of Rwanda (GoR) to manage and operate the Kigali Serena Hotel (Kigali Serena) in Kigali (formerly the Inter-Continental Hotel) and the Lake Kivu Serena Hotel (Kivu Serena) in Gisenyi (formerly the Kivu Sun Hotel). TPS(R) is a newly created subsidiary of the Aga Khan Fund for Economic Development (AKFED), an international development agency based in Switzerland dedicated to promoting entrepreneurship and building economically sound enterprises in the developing world. AKFED is involved in tourism through its multiple subsidiaries, generically referred to as Tourism Promotion Services (TPS). The project involves the acquisition and rehabilitation of both hotels as well as the expansion of the Kigali Serena. As part of the project TPS(R) may also acquire or develop a new lodge in Ruhengeri which will be used as a base for gorilla trekking.

Overview of IFC's Scope of Review

IFC’s review consisted of :

- a site visit to TPS(R)’s properties in Kigali and Lake Kivu.
- technical meetings held with TPS(R)’s Group Chief Engineer and Managing Director, both of whom are responsible for the environmental and life and fire safety management systems for all TPS(R) properties;
- detailed discussions with TPS(R)’s Chief Engineer and Managing Director regarding the acquisition and potential development of or acquisition of additional properties;
- detailed discussions with the Municipal Authority of Kigali regarding waste management;
- detailed discussions with the Director of the International Gorilla Conservation Program (IGCP), the Chief Warden, Parc National des Volcans (PNV), Director of Conservation, Office Rwandais Du Tourisme Et Des Parcs Nationaux (ORTPN), and the Regional Representative of the World Wide Fund for Nature (WWF) regarding national park management and tourism development.

E & S Project Categorization and Applicable Standard

This project is being reviewed as a Direct Investment according to IFC’s Social and Environmental Sustainability Policy. The preliminary review of project information expected the following Performance Standards to be applicable:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS6: Biodiversity Conservation and Sustainable Natural Resource Management

The findings of the physical appraisal indicate that PS 5, 7 and 8 are not applicable to this project.

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 and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. No sponsor activity will occur in the national park, all entry into the PNV and gorilla trekking will be done under the supervision of the PNV as per established international guidelines established in coordination with IGCP. If new lodge construction occurs, TPS(R) will coordinate site selection with ORTPN and PNV. Based on discussions with the stakeholders listed above, adequate carrying capacity exists in the Ruhengeri area to accommodate the addition of another lodge.

Environmental and Social Mitigation Measures

Social and Environmental Management Systems:

TPS possesses detailed environmental and safety management systems which it will be implementing for TPS(R)’s operations. Corporate responsibility for specific EHS issues will be assigned to designated management and staff.

Labor and Working Conditions:

TPS possesses detailed HR Policies allowing freedom of association and setting standards for minimum wages, age and benefits. These standards exceed national requirements and fully meet IFC standards. All TPS(R) employees have been or will be provided a copy of this policy or given access.

Pollution Prevention and Abatement:

Both Kigali Serena and Kivu Serena have mechanical and biological wastewater treatment systems. With the expansion of the Kigali Serena, the sewage holding tank capacity may be inadequate. TPS(R) will explore this based on anticipated flow rates and expand holding tank capacity as necessary. Laundry effluent at Kivu Serena needs to be routed to the Sewage Treatment Plant; it is currently going direct to the lake untreated, costs associated with this are minimal. All solid waste at the two properties is disposed of via locally authorized contractors at designated municipal sites. TPS(R) is experiencing very high energy costs in its properties; as part of resource audits TPS is conducting in Kenya with IFC assistance, it intends to roll out energy efficiency measures in Rwanda related to power consumption, steam generation and lighting.

Community Health Safety and Security:

TPS(R) will complete an independent fire safety audit and desk review of the properties to South African fire safety standards. Based on the site visit conducted to the Kigali Serena and Kivu Serena properties, it is evident these properties are designed to a high standard consistent with international best practice. If other properties are acquired or built these will require completion of independent fire safety audits.

Lake Kivu is a known source of methane gas emissions. Given the potential danger associated with swimming in the lake and sudden methane release, guests (and staff) using the beach, swimming in the Lake and engaging in watersports, will be warned about these unpredictable dangers and advised to participate in these activities at their own risk.

TPS has established corporate HIV/AIDS programs and intends to expand this into its Rwanda properties and introduce free voluntary testing and counseling and free ARV treatment for staff. TPS(R) has requested IFC assistance in delivering and designing this program; IFC Against AIDS is already partnering with TPS(R) to devise a program.

Biodiversity Conservation and Sustainable Natural Resource Management:

The respective park authorities of the DRC, Rwanda and Uganda have a partnership with IGCP and joint management plans and agreements governing PNV management and revenue sharing. There are several existing and planned regional, national and PNV related tourism development plans. None however yet set limits on tourist lodge development related to beds, location, design, or carrying capacity. IGCP and ORTPN have indicated that capacity for more lodges in Ruhengeri and the PNV area exists. No carrying capacity or park impact issues related to TPS(R) taking over an existing lodge or constructing a new one. If TPS(R) develops a new lodge at a greenfield site in the Ruhengeri area or other National Park location, an ESIA (Environmental and Social Impact Assessment) would be required under REMA (Rwandese Environmental Management Authority) and IFC standards. Given the density of population and agriculture, site selection will be important and will be reviewed in detail by REMA and IFC prior to TPS(R) construction. IFC has also in principle discussed and agreed, with TPS(R), ORTPN and IGCP, on potential partnering on community development and wildlife protection related projects. These would most likely relate to one or any combination of the following: diversifying tourism in the Ruhengeri area away from gorillas, assisting communities in diversifying their economic base (e.g., developing cultural tourism products), and supporting PNV and IGCP in park management related issues.

Stakeholder Engagement

As part of hotel renovation, expansion, and acquisition/construction, TPS(R) will be coordinating with the Rwandese Environmental Management Authority (REMA), ORTPN and PNV. REMA requires an environmental assessment or an audit and management plan as a condition to be prepared for permitting the renovation, expansion or construction of a hotel. This process also requires full disclosure of the ESIA 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, Gisenyi and other locations (based on property location).

Client contact details:

Mr. Mugo W. Maringa
Country Manager
TPS (Rwanda) Limited
Rue de la Revolution, PO Box 7469, Kigali, Rwanda
Tel: 250 597 100
Fax: 250 597 101

Location of Environmental Documents can be found at:

Kigali Serena Hotel
Rue de la Revolution, Kigali, Rwanda

**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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Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

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