While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: 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 Resources PS8: Cultural Heritage

This is a Category B project according to IFC’s Environmental and Social Review Procedure due to the site-specific and limited number of environmental and social impacts that may occur and which can be avoided or mitigated by adhering to generally recognized performance standards, procedures, guidelines or design criteria. The ongoing expansion of The Crane is a development that according to Barbadian law does not require an Environmental Impact Assessment. It is ongoing on land owned by the Company for many years, and has low environmental impact. The new development at Whitehaven will be low density and low rise, with single storey residential units and is planned on what is currently animal grazing land that was acquired on a willing buyer, willing seller basis from the previous owner and which will impose only readily mitigable environmental impacts. These impacts will be reviewed by environmental and social impact assessment at an appropriate stage of the project development cycle, and management plans developed accordingly.

The company has presented plans to address the environmental and social impacts to ensure that the project will, upon implementation of the specific agreed mitigation measures, comply with applicable national laws and regulations and, IFC’s Performance Standards on Social and Environmental Sustainability. The information about how these potential impacts will be addressed by the project is summarized in the paragraphs that follow, and in the Environmental and Social Action Plan (“ESAP”) which is disclosed with this review summary. PS1: Social and Environmental Assessment and Management Systems Assessment Project environmental assessment to date has been driven by the Barbadian planning requirements. These have required submission of planning applications to the Environmental Protection Department, which have been approved subject to certain conditions described later in this review summary. Development of the coconut grove area behind Crane Beach, will be in consultation with all relevant local planning authorities and stakeholders including the Coastal Zone Management Unit and Barbados Sea Turtle Project. The proposed future development of the Whitehaven area will only be undertaken after completion of an Environmental and Social Impact Assessment assessing the development’s compliance with local planning requirements and IFC’s Performance Standards, and agreement of a management plan to drive this compliance. Management Program At the present time, The Crane has many operational procedures and some policies which do address social and environmental management, but these have not been consolidated in a formal management system. The Crane will develop a formal quality assurance management system, capable of compliance with ISO 9001, and will use this to drive quality-based management processes related to all aspects of the resort’s operations including but not limited to guest service, environmental management, occupational health and safety, food hygiene procedures, and resort maintenance, and the necessary staff training required to deliver these services. This work will include continuation of the review and consolidation of the existing policies and procedures. PS2: Labor and Working Conditions A formally adopted Crane Human Resources Policy is under development. However the majority of the elements that such a policy typically contains are described within The Crane Resort and Residences Employee Handbook (“the Employee Handbook.”) The working relationship is documented in an individual letter of appointment, and in the Employee Handbook copies of which are provided to each employee upon taking up employment with the Company. The Employee Handbook defines such employment details as the probationary period applicable upon starting employment, working hours, overtime arrangements, and provision for public holidays and annual leave for example. Employee responsibilities are also defined. Union membership is permitted among Crane staff, and around 5 employees (of a total of more than 300 employees) are union members. However the Company is not a party to the collective agreement established for the Barbadian hospitality industry, and aims to pay somewhat higher salaries than required by that agreement so as to attract and retain high quality staff. Staff remuneration also includes the 10% service charge which is shared among all staff according to their position and “service point” reflective of staff performance which are agreed by a committee. Legal requirements for National Insurance payments are observed, as are the employee health insurance benefits adopted throughout the island’s hospitality industry. Meals are provided via a subsidized staff canteen. Crane has a formal equal opportunity policy. Crane will develop a formal employee grievance mechanism, building upon the existing open door policy to staff which is a core element of corporate culture. The youngest employee is a legally employed 16-year old houseman, working in the housekeeping department. Most staff employed in construction, when ongoing, and hotel and resort operations staff are Crane employees rather than contractors, therefore the working conditions described above are essentially uniformly applied, without separate arrangements for contractors. However, the Crane does also employ seasonal staff to accommodate the seasonal demand of the tourism industry which peaks from December to February. Occupational Health and Safety efforts have been directed at the construction activity. The precast concrete construction method adopted contributes to site safety, as do other features such as provision of handrails and checklist-based procedures for checking for example machine safety. Power tools are owned by the company, issued with appropriate personal protective equipment to trained users and returned as required. The majority of accidents have been suffered by hotel staff, and are typically slips and falls on the level, and cuts. Accidents are investigated and lessons learned in an attempt to prevent repetition. PS3: Pollution Prevention and Abatement Air Emissions The resort has no material emissions to air. The largest combustion device is a gas-fired absorption chiller, which is below the size threshold requiring emissions monitoring. Liquid Effluents Emissions to water comprises effluent from kitchens, the laundry, sanitary waste water and swimming pool filter backwash water. At the present time, kitchen, laundry and sanitary waste water is treated in a number of septic tanks around the resort and disposed of by injection into absorption wells adjacent to these septic tanks. Restaurant kitchen effluents pass through grease traps before entry to the septic tanks. This is a Zone 5 area in terms of Barbadian effluent disposal requirements, and there is no nearby abstraction: this disposal method is customarily adopted here. However, the resort has completed construction of a sewage piping network which will collect kitchen and sanitary waste water from virtually the entire resort, and transport these wastes to one point where a sewage treatment system will be built. Design options for this treatment system are currently under review: the Company expects to complete this review, construction and commissioning by February 2011. Resource Efficiency Liquid effluents from the laundry will be collected, pre-treated and used for irrigation of garden areas within the resort. In accordance with local planning requirements, a water storage system of 622,000 gallons capacity has been developed for storage of rain water falling on building roofs. The primary use of this water will be in the resort laundry, where use of water softening chemicals will as a consequence be reduced. Residential apartments are designed to exploit natural ventilation, reducing air conditioning demand. Air conditioning is available throughout, and for the majority of the resort this is provided by a gas-fired absorption chiller and chilled water circulation system ,with heat rejected by the chiller being used to preheat domestic hot water. One building has a vapor-compression chiller; heat is recovered from this chiller to heat domestic hot water. The further expansion of the resort will require further air conditioning capacity. This will be developed by adding to the existing chilled water system, either an additional gas-fired absorption machine or a gas engine-based co or tri-generation system; design reviews are ongoing. The newly developed residential buildings and those to be completed have solar water heating systems. The resort is part way through a relamping program. Lights within the guest rooms are being converted from incandescent to compact fluorescent luminaires, while LED luminaires have been adopted for lighting of pathways within the resort. An electricity and water monitoring and consumption reporting system will be developed to give a breakdown of utility consumption throughout the resort. Data provided by this system will be used as the basis for future utility management activities in the resort. Annual greenhouse gas emissions from the Project are estimated at 4,900 tonnes CO2 equivalent. Waste Management Glass and plastics are collected and recycled. Sawdust from construction work has been collected and either composted or used as animal litter. Consideration is being given to expansion of composting of food wastes. Other hazardous and non-hazardous wastes are collected and disposed of by a licensed contractor. PS4: Community Health, Safety and Security All buildings have passed inspection by the Barbados Fire Service. However in buildings accessible to the public, such as hotel accommodations and restaurants, IFC requires dual compliance with all local requirements and also with an internationally recognized fire safety standard. An independent fire safety engineer will be engaged to advise a suitable international standard for these heavily-constructed buildings, and then to audit against this standard. If this review reveals the need for additional fire safety measures, then IFC and Crane shall agree an implementation schedule. The Whitehaven development shall be designed for compliance with all local and an internationally recognized fire safety code. The Company shall commission a suitably qualified fire safety specialist to prepare and present a fire safety master plan for the development demonstrating this compliance. Regular disinfection of cooling towers is adopted for legionella control in these machines. All domestic hot water is stored at 60°C to safeguard these systems against legionella and the pumped secondary circulation system delivers hot water quickly when required. Swimming pool water quality is tested daily. Formal food hygiene assurance procedures based upon HACCP and certified compliance with the requirements of ISO 22000 will be developed in all resort catering outlets. Resort clientele has evolved over time, and young children are now included among the guests. Crane will review and revise other public safety provision of the resort, including adding cliff-top barriers, which could be extensions of the existing wall or planting of thorny hedges to form barriers. PS6: Biodiversity Conservation and Sustainable Natural Resource Management Crane Beach can host a small number of hawksbill turtle nests, up to ten annually, most usually in the Ginger Bay area north of the rocky point visible from the resort. Barbados annually has around 2000 reported turtle nests, so Crane Beach is not considered important turtle nesting habitat in the national context. The Crane already liaises with the Barbados Sea Turtle Project to report known turtle activity on the beach. If the resort ever wishes to develop night-time beach activities these will be developed only after liaison with the Barbados Sea Turtle Project so as to avoid harm to possible nest sites. Crane will not permit ground level fires or barbecues within beach or back-beach areas within its control. PS8: Cultural Heritage The Crane Hotel itself dates from 1887 and has been sympathetically incorporated into the design of the resort. The proposed Whitehaven site includes an old, currently abandoned but once attractive mansion. Planning of the development will include consultation with relevant local authorities and appropriate conservation measures meeting the authorities’ requirements will be incorporated into the design of the development.

The Crane’s community engagement upon project environmental matters has substantially been through the public planning process. This has been supplemented by meetings with local residents held by the construction manager to explain the construction process when needed. Also, The Crane is the largest employer in the St. Philip parish of Barbados and many employees live locally, further increasing community knowledge of the Project. The Project is starting to explore opportunities to increase its purchasing, especially of food, from local suppliers. It also participates in an internship program at the local polytechnic, and through this route offers training and AHLA certification opportunities to students.

The ESRS and companion ESAP for this project are available for review at the Sales Department desk at the following locations: The Crane Resort and Residences, St. Philip, Barbados and on The Crane’s website: www.thecrane.com For further information please contact: Tristan Blades The Crane St Philip, BB18079 Barbados, West Indies Telephone number: +1 246 423 6220 Email: Environmental_Info@thecrane.com