Environmental & Social Review Summary
Project Number
29058
Company Name
CRJE ESTATE LIMITED
Date ESRS Disclosed
Feb 10, 2010
Country
World Region
Region
Global
Last Updated Date
May 24, 2023
Environmental Category
B - Limited
Status
Active
Previous Events
Approved : Apr 21, 2010
Signed : Apr 21, 2010
Invested : Aug 18, 2016
Sector
Construction and Real Estate
Industry
Tourism, Retail and Property
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
The originally disclosed project (or “original project”) consisted of the construction and operation on a Build Operate and Transfer (“BOT”) basis of a twenty-storey Class A commercial complex on a plot of land located in the Gardens Area of Dar es Salaam, Tanzania. The BOT contract is between the Mwalimu Nyerere Foundation (“MNF” or the “Foundation”), owner of the land, and CRJE Estate Limited (“CEL” or the “Company”), a fully owned subsidiary of China Railway Jianchang Engineering Company Limited (“CRJE” or the “Sponsor”), the largest construction company in Tanzania. The original plot of land designated for the Project was neighboring key government offices. Subsequent to IFC’s commitment in April 2010, the government imposed a height restriction on all buildings in the Gardens Area and provided CEL with a building permit allowing construction of a six-storey building only. The original project was then put on hold and following negotiations with government, an alternative plot located in the Central Business District (CBD) of Dar es Salaam was provided to the Foundation. The new plot is larger, located in a prime area of the CBD and is not constrained by height restrictions.
Similar to the arrangement in the original project, the Foundation, a Tanzanian nongovernmental organization, and CRJE have partnered on a BOT basis to undertake the revised project on the new plot. The revised project concept will involve construction of a thirty two-storey twin tower complex, which will comprise a 250 hotel rooms, 60 serviced apartments, 6,600 m2 of office space, 2,000 m2 of commercial retail space and a 386 car parking bay on a 6,559 square meter plot (the “Project”). The Project will require 36 months to complete. Once commissioned, the Project’s retail and commercial space will be managed and operated by Knight Frank, an international property services company. The Project’s hotel will be managed and operated by Rotana Hotels – an Abu Dhabi-based hotelier and an existing IFC client.
Similar to the arrangement in the original project, the Foundation, a Tanzanian nongovernmental organization, and CRJE have partnered on a BOT basis to undertake the revised project on the new plot. The revised project concept will involve construction of a thirty two-storey twin tower complex, which will comprise a 250 hotel rooms, 60 serviced apartments, 6,600 m2 of office space, 2,000 m2 of commercial retail space and a 386 car parking bay on a 6,559 square meter plot (the “Project”). The Project will require 36 months to complete. Once commissioned, the Project’s retail and commercial space will be managed and operated by Knight Frank, an international property services company. The Project’s hotel will be managed and operated by Rotana Hotels – an Abu Dhabi-based hotelier and an existing IFC client.
Overview of IFC's Scope of Review
This review is an update of information related to a project disclosed on IFC’s website in February 2010 and approved by the IFC Board in April 2010. The IFC’s appraisal of this project included the following:
- Review of the Environmental Impact Assessment (EIA) study, the geotechnical investigations of project site, the conceptual design of the commercial complex (including water supply, drainage and fire safety drawing specifications), CRJE’s (the project developer) Safety, Health and Environment (SHE) Plan and Human Resource Governance Policy, Knight Franck’s Human Resource Manual and Emergency Manual Procedures;
- Meeting with the Tanzania’s National Environmental Management Council (NEMC), Dar es Salaam’s Water Supply Company Ltd. (DAWASCO) and Water and Sewerage Authority (DAWASA) and Tanzania’s Electricity Supply Company (TANESCO);
- Meetings with the Sponsor (China Railway Jianchang Engineering Company Limited (CRJE) and its subsidiary CRJE Estate Limited, including the assigned project team (CRJE’s Managing Director, Architect (Arques Africa), Project Manager (Mzenzi Investment Co.) and the Executive Director of Mwalimu Nyere Foundation (MNF);
- Meetings with Knight Frank, the property management company;
- Meeting with World Bank’s Water Supply and Sanitation Officer in Dar es Salaam office; and,
- Site visit to the proposed land plot in the Dar Es Salaam’s Central Business District (CBD).
While there has been no material change in the environmental and social impacts, IFC carried out an additional review of the revised project to update its understanding of the regulatory environment and client capacity to manage the environmental, health, safety and social dimensions of the project. The included: a review of IFC’s supervision of the original project post-commitment; a review of the proposed design of the Project; meetings with the CRJE Director of Projects and the consultants responsible for developing the EIA and Management Plan; site visits to CRJE construction projects currently underway in Dar es Salaam (the Iconic Office Commercial Building, Millennium Tower Phase II and the Kigamboni Bridge. IFC’s earlier supervision included visits to the alternative site proposed for the original project, which is the site of current Project.
- Review of the Environmental Impact Assessment (EIA) study, the geotechnical investigations of project site, the conceptual design of the commercial complex (including water supply, drainage and fire safety drawing specifications), CRJE’s (the project developer) Safety, Health and Environment (SHE) Plan and Human Resource Governance Policy, Knight Franck’s Human Resource Manual and Emergency Manual Procedures;
- Meeting with the Tanzania’s National Environmental Management Council (NEMC), Dar es Salaam’s Water Supply Company Ltd. (DAWASCO) and Water and Sewerage Authority (DAWASA) and Tanzania’s Electricity Supply Company (TANESCO);
- Meetings with the Sponsor (China Railway Jianchang Engineering Company Limited (CRJE) and its subsidiary CRJE Estate Limited, including the assigned project team (CRJE’s Managing Director, Architect (Arques Africa), Project Manager (Mzenzi Investment Co.) and the Executive Director of Mwalimu Nyere Foundation (MNF);
- Meetings with Knight Frank, the property management company;
- Meeting with World Bank’s Water Supply and Sanitation Officer in Dar es Salaam office; and,
- Site visit to the proposed land plot in the Dar Es Salaam’s Central Business District (CBD).
While there has been no material change in the environmental and social impacts, IFC carried out an additional review of the revised project to update its understanding of the regulatory environment and client capacity to manage the environmental, health, safety and social dimensions of the project. The included: a review of IFC’s supervision of the original project post-commitment; a review of the proposed design of the Project; meetings with the CRJE Director of Projects and the consultants responsible for developing the EIA and Management Plan; site visits to CRJE construction projects currently underway in Dar es Salaam (the Iconic Office Commercial Building, Millennium Tower Phase II and the Kigamboni Bridge. IFC’s earlier supervision included visits to the alternative site proposed for the original project, which is the site of current Project.
