4844 - South West Pacific Inv. Ltd (Le Meridien Port Vila

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Environmental & Social Review Summary

Project Number

4844

Company Name

South West Pacific Investments Limited

Date ESRS Disclosed

Feb 5, 2010

Country

Vanuatu

Region

East Asia and the Pacific

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jan 18, 1996
Signed : Feb 1, 1996
Invested : Feb 22, 1996

Sector

Resort Hotel (Including Lodges)

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Asia & Pac

Project Description

Environmental Review Summary (ERS)

Project Name Vanuatu: Le Meridien Port Vila Resort & Casino

Region South Pacific

Sector Hotels and Tourism

Project No. 004844

1. The project consists of the refurbishment and expansion of the 154 room former Royal Palms Resort & Casino, located midway along the Ekasuvat Lagoon, a short drive from Port Vila, the capital of Vanuatu. Now under the ownership of Hotel Properties Limited (HPL), a Singapore-based hotel and leisure company, the complex will be operated by Le Meridien Asia Pacific. The 35 acre site includes the 15 year old mainland resort complex and adjacent Eronger Island, a nine hole golf course and extensive beach frontage. A staged renovation program will include refurbishment of all guest rooms, installation of a new wastewater treatment works, air conditioning, laundry and kitchen, reconfiguration of the lobby, upgrading of guest facilities and construction of bungalows. Stage 1 is essentially complete and consisted of refurbishment of one wing of 75 guest rooms and the hotel utility systems. Later stages will include the refurbishment of the second wing of guest rooms and public areas and the construction of ten waterfront bungalows on Eronger Island opposite the main complex. Abundant mature vegetation on the property will not be affected by the construction.

2. This is a category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, the technical appraisal and site review completed by IFC’s Technical and Environment Department staff, and a fire and life safety audit undertaken by an independent consultant. The following potential environmental, health and safety impacts of the project were analyzed:

· discharge of liquid effluents;
· disposal of solid wastes and potentially hazardous solvents;
· compatibility with sensitive coastal resources;
· exposure to severe storm conditions; and
· fire and seismic safety.

The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.
3. A new sewage treatment plant has been installed at the resort which has the capacity to handle effluent from both existing and new facilities. This includes the ten new bungalows, for which effluent will be pumped from the island to the treatment plant. The plant consists of an aerated treatment facility, an aerated sludge consolidation tank, and ultraviolet (UV) sterilization. The manufacturer has confirmed in writing that effluent from the plant will meet World Bank guidelines. HPL conducts periodic monitoring of water in Ekasuvat Lagoon and has committed to monitoring of treatment plant effluent on an ongoing basis.

4. Solid wastes generated at the resort are collected and removed by the Municipal Council and disposed of at a landfill. Special wastes, such as kitchen grease trap waste, is removed by a contractor. All solid wastes are disposed of in accordance with local laws and regulations. Dry cleaning services will not be operated by the resort; there will be no solvent requiring disposal.

5. The resort fronts on Ekasuvat Lagoon, at the head of a long arm of the sea.
Eronger Island, on which the bungalows will be built, is an artificial island which was constructed approximately 20 years ago. Some of the bungalows will be overwater units, constructed on a precast concrete flooring system supported on concrete caissons. For stability, the caissons will be constructed through recent coral fill into the old coral reef below. Because of the low tidal range in Vanuatu and the location of the resort on the lagoon, tidal flushing does not provide sufficient sea water to sustain live coral reefs at the resort site, and no live reefs will be affected by the project. All construction will be designed in accordance with local codes for protection from earthquakes and severe storms.

6. Fire and life safety considerations for the refurbished hotel were audited by an independent consultant. Specific attention was paid to such items as heat and smoke detection, compartmentalization, means of egress and number of exits, emergency lighting and signage, and implementation of an emergency response plan. HPL has installed smoke detectors throughout the Stage 1 construction and will install them in the remaining construction stages. HPL has also committed to implement the recommendations of the independent audit, including correction of deficiencies found in recently completed construction.

7. Le Meridien Port Vila Resort and Casino participates in the Le Meridien 1995 Environmental Action Plan initiatives which include energy conservation, waste management, product purchasing, air emissions, noise pollution, hazardous materials, water quality, and herbicide/pesticide control initiatives aimed at protecting the environment. Resort management also participates in the Vanuatu National Water Committee which works to protect public waterways and drinking water.

8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Vanuatu requirements, and World Bank policies, and environmental, health and safety guidelines.

9. IFC will monitor ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.

L:\WPEU\SALLY\VANUATU\MERIDIEN.ERS
December 20, 1995 2:09 PM

Environmental and Social Mitigation Measures

Broad Community Support

**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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