While all Performance Standards are applicable to this investment, IFCs 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. If IFCs investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

PS 1 – Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and working conditions
PS 3 - Resource Efficiency and Pollution Prevention
PS 4 – Community Health, Safety and Security
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

The proposed investment is expected to have limited environmental and social impacts. Further, the impacts can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in the following sections. This is therefore a Category B project in accordance with IFC’s Environmental and Social Sustainability Policy.

Key E&S issues applicable for this investment are: (i) operational licenses; (ii) environmental, health and safety (EHS) management system and related procedures; (iii) adherence to labor law, working conditions, standards and OHS risk prevention and management; (iv) Life and Fire Safety (L&FS) provisions and emergency preparedness and response; (v) use of public utilities (water supply and energy), optimization of water and energy use through project design; solid waste disposal; potable water quality, treatment and monitoring; management and control of pests, and (vi) food safety, and social performance.

Impacts related to PS5: Land Acquisition and Involuntary Resettlement, PS6: Biodiversity Conservation and Sustainable Natural Resources Management, PS7: Indigenous Peoples and PS8: Cultural Heritage are not expected with this investment for the following reasons: the lease was acquired from the government. A government-owned business, ETFRUIT (a fruit distributor) was relocated prior to the transaction with the Sponsor; the project is located within an existing mixed-use area and no conversion of natural/critical habitats has taken place; there is no presence of Indigenous Peoples or known cultural artifacts.

IFC's appraisal considered the environmental and social management planning process and documentation for the project and gaps, if any, between these and IFCs requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through the implementation of these measures, the project is expected to be designed and operated in accordance with Performance Standards objectives.

Environmental and Social Risk and Impact Assessment The new Crowne Plaza hotel is being constructed on a site zoned for mixed use on the main road alongside the Balcha Hospital, in the Lower West portion of Addis Ababa, Ethiopia. In accordance with the Ethiopian Environmental Protection Agency (EPA) directive No 1/2008, hotel projects are not required to undergo an Environmental Impact Assessment Report unless implemented inside or near designated protected areas. Tsemex has employed a qualified Environment, Health and Safety (EHS) person to oversee EHS during the hotel construction phase as well as to design and implement an ESMS as required by IHG guidelines and standards. The EHS specialist reports directly to the Sponsor.



Management Programs. Tsemex has implemented social and environmental management during the construction phase in accordance with the IHG Group guidelines, which are monitored closely by representatives of IHG. There is no written environmental management policy or procedures in place at present. Tsemex has agreed to develop and implement an Environmental, OHS and food safety management system (ESMS), including policies, plans, manuals and procedures for operational phase of the hotel. The ESMS will be in compliance with IFC’s PS1 requirements, and will be operational by the time of hotel commissioning which is scheduled for early 2016.

The Project has all planning and construction approvals in place, and will apply for routine licenses required for hotel operations in Ethiopia. This includes labour (social service bureau), restaurant, fire, health and safety, business and liquor licenses as well as compliance with the specifications and conditions of the government departments that govern planning, road infrastructure (including storm water management) and traffic, as well as effluent, health, hygiene and tourism.

Occupational Health and Safety. The building contractors (Raycon Construction) have ensured that they are in compliance with labor laws; payment of workers’ legal benefits; timely payment of wages; OHS regulations, including Personal Protective Equipment (PPE), roles and responsibilities, reporting, monitoring and training. The contractor has implemented the Ethiopian statutory requirements as well as measures outlined in a detailed OHS practice handbook. A full-time Health and Safety Officer and Site Health Assistant are present on site during construction are responsible for the implementation and report directly to the Sponsor and architect. The Ethiopian authorities inspect the site regularly (weekly).



Monitoring and reporting. The Company is in the process of implementing the IHG/Crowne Plaza design requirements, which specifies that water; energy; waste and wastewater monitoring must take place (and is properly recorded and reported). As set out in the ESAP, the hotel will monitor the following EHS parameters during construction and operation: a) Safety – Number of injuries, Lost Time due to Injur
ies b) Water Usage (kilolitres/guest nights), Energy Usage (/guest nights), wastewater effluent monitoring; c) Staff - Retention and training days. In addition, and as outlined in the ESAP, the hotel will develop an integrated EHS report format based on critical EHS key performance indicators (e.g. compliance with legal and regulatory requirements, EHS management system progress report and certification, including food safety management, energy and water consumption and efficiency; solid waste management and disposal, effluent discharges, compliance with national OHS and labour requirements, including accidents/incidents; customer complaints, and community engagement activities), and will report annually to IFC as part of the Annual Monitoring Report (AMR



Emergency Preparedness and Response. During construction, the emergency phone numbers of Raycon, Tsemex, Police, fire brigade, hospital/health center and ambulance is posted at each work area. The commissioned hotel will have emergency preparedness and response policies, procedures and plans in place, in case of accidents, fire, breach of security, and weather-related emergencies such as flooding. An emergency team will be established with emergency phone numbers displayed in common staff areas and rooms, with fire assembly points and directional signage. A security control room will monitor all public areas of the site via CCTV on a continuous basis.

Human Resources (HR) Policy and Management. Tsemex has employed 150-200 workers (30% women) during the construction phase (depending on each stage of the project), 25 of which will become permanent once the hotel is operational. A further 350 employees will be required once the hotel has been commissioned. The policies and practices that guide the Company’s approach to the management of human resources will be articulated in a HR Manual, and will comply with IFC’s Performance Standard 2 requirements.



Tsemex and IHG are committed to equal opportunities, gender equality, and are against sexual harassment and discrimination. There will be annual employee medical monitoring (medicals), particularly for food handlers and a requirement for employees to have a medical fitness certificate, and there will be no discrimination against anyone who is HIV positive. Ethiopian labour law is very strict with regard to the above as well as employment of youth (18 is the legal age for employment), working conditions, benefits, as well as disciplinary procedures and suspension or legal action.

The Company considers normal working hours to be no more than forty eight (48) hours per week, spread over different shifts. Sanitary facilities and water are provided for employees (male/female toilets and showers) during construction and operational phases. The Company also provides medical assistance (an arrangement has been made for the treatment of injuries or illnesses at the hospital adjacent to the site), a Provident Fund contribution of 7.5% (employee contribution is 5%), bonuses, annual salary increments as well as workman’s compensation insurance. Meals and transport will be offered to permanent employees of the hotel.



Freedom of Association. Freedom of association is entrenched in Ethiopian labour law. Employees belong to the Tourism and Service Industry Sector Union. Employee representatives meet regularly with management to discuss working conditions.



Grievance Mechanism. IHG has an established grievance mechanism procedure which meets IFC’s PS2 requirements and which is found in the Human Resources Manual. This procedure includes steps to be taken for workers to raise concerns, discuss solutions, and provide feedback. Awareness-raising on grievance mechanism procedures take place during the induction training. The grievance mechanism also applies to contract workers.



Training. The IHG policy is to encourage continuous competency development through regular training, on the job experience and mentoring. Job rotation will be established to ensure that skills are shared, and to facilitate business continuity. A dedicated training room has been built into the design of the hotel. The company is committed to providing opportunities for staff to develop on the job and to prepare for possible advancement. Succession planning will be taken into account at each level. This is achieved through a performance management process that focuses employees on b
oth what they do (through development of objectives) and how they do it (through selection of company-defined competencies) and encourages interaction between supervisors and employees through frequent discussions and written documentation. Compulsory safety training is provided to all employees during their induction.



Occupational Health and Safety. The Ethiopian law, particularly Labor Proclamation No. 377/2003, amended by Proclamation No. 494/2006 S7 on Occupational Safety, Health and Working Environment provides for a series of measures to be taken to avoid incidents and accidents in work place. The Contractor undertaking the building works conducts assessments and analyzes the risks to health and safety at work; identifies collective safety measures (first aid and emergency medical care, fire prevention, emergency management, etc) in order to avoid or reduce risks; provides adequate information, before the starting of the activities, all the personnel present on site about the risks to which they can be exposed; organizes training programs and trains personnel on site on the safer ways of carrying out activities; displays safe health and traffic signs that help to avoid or reduce risks by taking preventive measures, ensures personal protective equipment (helmets; safety belts; ear muffs; goggles to protect the eyes; safety footwear; etc.) is worn by workers to avoid or reduce risks; conducts Health & Safety audits on site and reviews the safety plan implementation for further improvement measures; evaluates actions to avoid recurrences of accidents; and organizes Health and Safety review meetings on regular basis with the Project Manager, Site Manager, Company Safety Manager, Health and Safety Manager, Medical Team, Employer and Sub-Contractor Representative. Prior to any works, the Safety Manager or Site Manager delivers safety induction training, and an induction form is signed. All sub-contractors are also subject to the obligations described in the site General Health and Safety Plan. Warnings about hazards and hygiene are clear and are posted onto walls or equipment in order to avoid incidents.



First aid kits are available in the nurse’s office. The Company is obliged to report all incidents and accidents to the Department of Labour. Visitors to the site during construction receive safety information and PPE. As the site is adjacent to the Hospital, any person seriously injured in an incident is taken immediately to the hospital. Any person who does not adhere to the rules and regulations of the safety and health plan is subject to disciplinary measures.

Life and Fire Safety. Specific training on first aid will be conducted every six months, and emergency fire drills will be conducted quarterly, in cooperation with the security personnel and the local fire brigade. Prior to performing work at the hotel, once operational, all employees and contract workers will be required to attend a formal orientat
ion on applicable Environmental, Health and Safety policies and procedures, with annual refresher courses.

Potential pollution issues identified are those typically associated with construction and operations include, amongst others, dust, diesel storage and use, storm water runoff, diesel and oil spills, litter and construction waste management. The Environment Health and Safety (EHS) manager will be responsible for ensuring that the IHG and Company standards and policies are implemented.



Resource management. At the time of the appraisal, 7 floors of the 8-floor hotel were completed. The building has access to reticulated (municipal) sewerage treatment, a water supply and electricity. The entire development area receives its electricity from the municipal grid (hydropower), and usage will primarily be associated with heating/cooling, cooking, refrigeration and lighting. The physical infrastructure is well developed, with access roads, storm water drainage and street lighting. Sewage discharges to the city treatment plant.



Energy use. Electricity consumption is unknown at this stage, however the average IHG hotel''s carbon footprint is 30kg per occupied room (global reported figure). The orientation of the building (north-facing) is optimised for energy efficiency. Energy will be conserved through the use of passive cooling, natural light, solar water heating, energy efficient lighting, and the use of insulation. Two diesel generators delivering 250 kVA will be on standby at the site, in a secure area outside of the hotel building. Diesel for the generator will be stored on site in an aboveground tank with bunding and restricted entry. Gas will not be used on site during construction or operation.



Management of solid and hazardous waste. Licensed Ethiopian waste contractors collect waste on a weekly basis. The hotel project, during the early construction phase, generated over 22,000 m3 of spoil which was collected and all but 5% was used as back-fill. A waste management plan for the hotel, as required in the attached ESAP, will give details of how waste is to be minimized, separated and disposed during the operational phase. Storm water drainage has been designed in accordance with the local authority’s specifications. IHG encourages their hotels to introduce waste reduction in their procurement processes and contracts with suppliers. Procurement plays a large part in reducing waste, for example, packaging waste. Through Green Solutions in IHG Green Engage, IHG provides access to a ‘Sustainability Purchasing Policy’, which contains green standards for hotels in the group to incorporate into their purchasing decisions.



Water use. IHG Green Engage provides their hotels with a comprehensive guide to water-saving technologies and processes. Low flow fixtures, such as taps and showerheads, are some of the measures applied to save water. The water consumption has not been accurately estimated, but it is expected that the Project will consume 120 m3 of water per day (36,000 – 40,000 m3 per annum or 0.57 m3 per guest per night, at 80% occupancy,
which is low when compared with other hotels located in the tropics), provided from municipal water, which will be pre-treated with UV sterilization on site. The municipal water in Ethiopia is not compliant with WBG drinking water parameters (total coliforms is reported to be higher than allowable limits) therefore water treatment must be included in the design of the new hotel to comply with WBG General EHS Guidelines, as articulated in the ESAP. Groundwater may be used to supplement the municipal water, however drilling and testing has not yet taken place. Rainwater will be captured for use in gardens and the cleaning of the grounds. Municipal and ground water monitoring will be undertaken and the results submitted to IFC via the Annual Monitoring Report (AMR) to confirm compliance with the WBG EHS Guidelines. Wastewater generated by laundry, toilets and kitchens will be discharged to the municipal sewer and further treated at the Addis Ababa sewage works. A grease trap has been installed at the effluent discharge point, which will be cleaned daily.



Pest management and control. Fumigation for insects and other pests will be outsourced. As defined in the ESAP, Tsemex is required to compile and implement a pest control and management procedure that is consistent with the WBG General EHS Guidelines

Food Safety. Tsemex will apply the HACCP (Hazard Analysis, Critical Control Points) system, in the hotel kitchen, as required by IHG, as well as comply with the Ethiopian food safety statutes. A permit from the Health authorities in accordance with the Food Safety and Food Handling regulations is required, and the relevant government departments (Health and Labour) in Ethiopia undertake regular inspections to check food handling procedures, certification of food handlers and check if product quality meets the legal requirements. Reports must be submitted to the health authorities every 6 months. Employees working directly with food are trained in food safety issues and follow established procedures for hand washing, working attire (clothes, shoes, gloves and hair coverage), and how to handle injuries and diseases. Hygienic practices are enforced. Ethiopian Department of Health also enforces strict hygiene practices in accordance with its ‘Standards and Guidelines for Hygiene and Sanitation of Toilet Facilities in Restaurants, Hotels and Public Places’.



Life and Fire Safety. The Company is committed to implementing best practice measures, and agrees to compile a comprehensive Fire and Life safety plan in accordance with an internationally recognized standard, with appropriate procedures for both construction and operation phases, and carry out a verification of the adherence to the chosen standard before commissioning. These requirements are included in the attached ESAP. The Project will comply with the policies and procedures Life and Fire Safety design and Plan outlined by the IHG. The local city council undertakes regular inspections of fire safety and fire equipment, building codes, fuel storage handling. In accordance with the Life and Fire Safety Policies, fire exits will be marked, unlocked, and unobstructed. Fire hydrants, the siren, fire extinguishers and smoke detectors will be installed, and checked monthly (with 6 monthly maintenance). Clear signage indicating either warnings, fire hazard or fire evacuation, wherever it is appropriate will be installed. Other safety elements in place include: an intercom; firewalls; and a fire escape. All fire hazards would be reported immediately to the maintenance supervisor or relevant technician for action. Fire drills and lock-down procedures are to be held quarterly, once the hotel is commissioned. Fire detection equipment will be stored and maintained in public areas with clear instructions for use.



Security. Tsemex employs a third-party company to provide security staff, whose role is to control access, patrol, identify hazards and coordinate fire safety. In the event of an emergency, the local police are on call. Hotel employees will be trained to be able to take immediate and appropriate actions in the case of emergency situations (such as armed robbery, evacuation, etc), in accordance with IHG guidelines and standards.



Vehicle safety. The site will have a dual access, with traffic
and access control into the parking (basement, 55 cars). The hotel does not operate any of its own vehicles. The basement parking is reinforced and will have sensor lights, signage and parking for disabled and emergency vehicles.



Community Grievance Mechanism. Community members may raise grievances directly with the architect and HSE Manager on site, as well as Tsemex management. A banner on the construction site displays a telephone number and website address for this purpose. Tsemex will adopt a formal Stakeholder Engagement Plan for the operational phase, incorporating a Community Grievance Mechanism, as articulated in the attached ESAP.

Tsemex will adopt a formal Stakeholder Engagement Plan incorporating a Community Grievance Mechanism as part of its Environmental, Health and Safety Management System.

The ESRS and the attached ESAP will be made available via the World Bank Group’s InfoShop. The Company will also be requested to place an advertisement in a local newspaper to inform the public that results from IFC’s environmental and social review (ESRS) and ESAP is available at public sites, such as municipality offices and the Tsemex Head Office:

Managing Director
Tsemex Global Enterprise plc
Addis Ababa Head Office
Bole Brass Hospital Next Yod Abbisinya Cultural Restaurant
Tel +251-116631275
Email: mailto:tsemexglobal@gamil.com

Broad Community Support is not applicable for this project

Title	Anticipated completion Date
Tsemex will adopt Key Performance Indicators (KPIs) to mainstream EHS parameters, which will form part of it ESMS including: a) Safety – Injury Frequency Rate (Number of injuries per days hours worked) – during construction and Number of incidents per month during operation); b) Water Usage (L/guest/month) and Efficiency – Consumed/guest; Energy Usage (kWh/guest/month) ; Wastewater monitoring; Gas and Diesel consumption/guest/month; c) Waste volumes/month and waste recycled (t/month) d) Staff - Retention and e) Staff Training days.	06/30/2015
Tsemex will develop and implement Human Resources Policies and Procedures appropriate for its workforce that sets out the approach to managing workers consistent with the requirements of Performance Standard 2, IHG guidelines and Ethiopian Labor Law.	09/30/2015
Tsemex will compile a waste management plan, which will give details of how waste is to be minimized, separated and disposed during the operational phase	01/30/2016
Tsemex will compile and implement a pest control and management procedure that is consistent with the WBG General EHS Guidelines.	01/30/2016
Tsemex will implement water treatment and municipal as well as ground water monitoring, to comply with WBG General EHS Guidelines for drinking water.	01/30/2016
Tsemex will apply the HACCP (Hazard Analysis, Critical Control Points) system, or equivalent, in the hotel kitchen, and implement food safety training, monitoring and hygiene practices.	01/30/2016
Tsemex will compile a comprehensive Fire and Life safety plan in accordance with an internationally recognized standard, with appropriate procedures for both construction and operation phases, and carry out a verification of the adherence to the chosen standard by a qualified specialist before commissioning	01/30/2016
Tsemex will adopt a formal Stakeholder Engagement Plan incorporating a Community Grievance Mechanism as part of its ESMS (see PS1 above).	01/30/2016