PROJECT

Projects

Environmental & Social Review Summary

Project Number

7779

Company Name

Pentire Investments Limited

Date ESRS Disclosed

Feb 5, 2010

Country

Zambia

Region

Africa

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 11, 1997
Signed : Aug 4, 1997
Invested : Dec 8, 1997

Sector

Resort Hotel (Including Lodges)

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Africa

Project Description

ENVIRONMENTAL REVIEW SUMMARY


Project Name AEF/Zambia-Mtendere Farm

Region Sub-Saharan Africa

Sector Hotels and resorts

Project No. 007779 March 17, 1997
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1. This project, which is to be financed through the Africa Enterprise Fund (AEF), involves the construction of a 20 room (40 bed) tourist lodge and conference facility on an 1100 ha private game ranch, Mtendere Farm, located 40 km north of Lusaka off the Ndola road. Total project cost is estimated at US$1.41 million of which AEF has been asked to provide a loan of US$585,000.

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 key environmental, health and safety issues that were analyzed in the context of this project are as follows:

• game stock source;
• game disease control;
• impacts on wildlife and sensitive ecosystems;
• staff accommodation infrastructure;
• liquid and solid waste disposal (including sewage);
• power and water supply source (including fuel storage);
• safety issues associated with the presence of wildlife;
• CFC-free cold storage;
• general safety and employee training; and
• emergency response preparedness and fire protection.

3. To ensure that its game stocks were being appropriately managed, the project sponsor engaged the services of researchers from the Center for Wildlife Management at the University of Pretoria. These researchers recently completed a year in residence at the project site, and are currently finalizing a detailed Game Management Plan for the ranch which is expected to be available in early March 1997. The sponsor has also submitted an Environmental Management Plan to address other issues of concern. Key elements of these two plans are described below.

4. Game stock source: Game was translocated to Mtendere Farm in 1989 and 1990, as part of a government program to ensure the continued survival of certain species that were under threat from poaching at the time. Species present on the ranch and the number of each as of December 1996 are listed in the table below. The ranch is now stocked with a total of +/-580 animals, and the sponsor does not foresee the need to obtain additional stock from government sources. If stock is needed in future, it will be obtained from other private reserves within Zambia. The Pretoria research team has suggested introducing buffalo to breed up to a population of 30, and blue wildebeest to breed up to a population of 13. These two species would improve the spectrum of game for viewing and improve the utilization of coarse grasses, thereby improving grazing for other species. At present coarse grasses on the farm are underutilized and spreading.

Species and Population Counts at Mtendere Farm as of December 1996Species 12/96 count

None of the species present or proposed for introduction are endangered. A 1989 "Southern and South-Central Africa Antelope Survey" conducted by the International Union for the Conservation of Nature (IUCN) classified tsessebe as "vulnerable" in Zambia. The Pretoria team indicated that at present tsessebe are reproducing well in Zambia, and this classification may no longer be warranted. Of the other species, the sitatunga is unusual by virtue of its aquatic habitat, though it is not considered to be either endangered or particularly rare in Zambia. Roan antelope, which are considered endangered in neighboring Zimbabwe, are present in large numbers in Zambia.

As with any game ranch, the biggest game management issue facing the project is overstocking, given the lack of natural predators on the property. Overstocking typically leads to an unnecessarily high level of mortality, usually in sub-adults and breeding females, thereby undermining the viability of the ranch. The overstocking situation resulted in the need for a managed offtake of animals in 1995-96, in which 30-40 animals were captured and sold to other private reserves and approximately 30 were culled. Translocated species included hartebeest, waterbuck, zebra, and puku. Culled species, all of whom were older males and/or weak or sick animals, included most species on the ranch with the exception of roan, oribi, and sitatunga. All capture and culling is done by Game Management Zambia, a professional company specializing in these services and licensed in accordance with the requirements of the Zambian National Parks and Wildlife Service (NPWS). Some of the venison from the culled carcasses was sold through Game Management Zambia''s retail butchery and the remainder was distributed to farm employees.

According to the research team from the University of Pretoria, the number of animals at present is still above recommended stocking rates. Consequently, one objective of the game management plan under development will be to prevent future overstocking, and reduce the need to sell or cull large numbers of animals in future. The plan likely will recommend a total population of approximately 460 animals. To achieve this optimal number, populations of the following species may have to be reduced in the next year: eland, sable, hartebeest, waterbuck, zebra, lechwe, puku, bushpig, impala, kudu, and bushbuck. According to the sponsor, an attempt is first made to find a purchaser for any animal(s) deemed to be present in excess numbers. For valuable species such as roan, sable, and hartebeest it has usually been possible to find a purchaser. For the other more common and prolific species, periodic culling is likely to be inevitable. The Pretoria research team has designed a monitoring system to identify, on an annual basis, those age and gender categories that have surplus individuals and to determine how these should be removed. The system gives priority to capture and live sale over culling.

The existing Zambian Wildlife Act contains few provisions applicable to private game ranching activities and the NPWS has limited authority over private game reserves. NPWS approval must be obtained to establish a game reserve but, once this approval is received, decisions regarding translocation or culling of animals are left to the ranch owner. NPWS does require an annual declaration of the game numbers present on the reserve, however, including any offtake undertaken during the year. NPWS is also authorized to conduct annual inspections of all private game reserves although, because of a shortage of personnel, vehicles and other resources, inspections are not always done. Transport of game carcasses requires a permit which approved game ranch owners are allowed to issue. Translocation of live game requires a stock movement permit from the Department of Veterinary and Tsetse Control, as well as a capture permit from NPWS. Under Zambian law, the game management plan being drawn up for Mtendere Farm does not need NPWS approval prior to implementation. However, NPWS has expressed an interest in those elements of the plan which might be applicable to other game ranches in Zambia. The sponsor has agreed to compile all of the plan''s recommendations into a separate document, which NPWS will distribute to all current and potential game ranchers. A new Wildlife Act is currently being developed, and the sponsors have agreed to comply with all of its provisions at such time as it is enacted into law.

5. Game disease control: As the ranch is not very large and has no natural predators, disease can be a problem. The University of Pretoria team has developed a program to address this problem in two ways. The first element is to control the spread of ticks, which are responsible for the spread of several diseases. Tick control devices known as Duncan applicators are positioned around the ranch near salt licks. As the animal consume the salt, the applicator releases small quantities of anti-tick agents onto the skin. The tick control agents are non-toxic to the host animals or to birds that may feed on the ticks. This method of tick control does not eradicate the ticks completely but rather attempts to keep the population under control in the months of high build-up. In addition, full veterinary post-mortems are conducted on all culled animals and an extensive external parasite study is conducted. In this way disease prevalence can be monitored and, if necessary, vulnerable animals can be treated.

The second method of disease control is to keep the numbers of animals in balance for the size of habitat available, thereby helping to ensure healthy populations of all species. At present, stocking on the ranch is somewhat above optimal levels, and consequently the food supply is monitored on a regular basis, especially during the dry season. The research team''s game management plan will contain recommendations on both optimal stocking levels for each species and a long-term scheme to ensure the maintenance of food supplies.

6. Impacts on wildlife and sensitive ecosystems: Until recently the project site was used for agricultural and ranching purposes, with the result that much of the land has already been significantly modified. In the seven years that the sponsors have undertaken game ranching on the property, the impacts of these past land uses have begun to be reversed, and indigenous grasses and vegetation are beginning to regenerate. As a result, bird populations have increased and diversified. The sponsors have prohibited the collection of firewood on the property, as well as all cutting of trees and indiscriminate burning of grasses. The recently completed field studies by the University of Pretoria identified over 100 species of grass, 150 species of trees, and well over 200 species of birds on the property. The researchers also found types of flora that are flourishing at the project site -- for example, certain species of ground orchids -- which tend to disappear in areas heavily grazed by cattle. Thus, the site''s current land use as a game ranch had led to significantly greater local biodiversity than would have been the case had the property remained a cattle ranch. The research team also noted that, given the poor state of Zambia''s National Parks and Game Management Areas, game ranching has had a positive impact on maintaining game stocks whose numbers would otherwise be severely depleted by poaching. The game management plan being developed will help ensure that this diverse ecosystem is protected and enhanced.

The plans for the lodge have been developed so as to minimize impacts on the environment. Construction will be largely of local woods and thatch. The sponsor intends to be present on site throughout the construction phase, supervising the contractors to ensure that environmental impacts are minimized. Once the lodge is operational, game viewing and walking safaris will be allowed only on approved trails and roads, accompanied by a licensed and experienced guide.

7. Staff accommodation infrastructure: The lodge expects to employ approximately 40 people in addition to the 10 people currently employed on the farm. All staff other than the manager will live away from the main lodge complex. The sponsors have designated an area located about 3 km from the lodge for staff housing. The compound will be fenced and will be supplied with electricity, water, and ablution facilities. The sponsors intend to provide transport for employees from the staff village to the main lodge complex.

8. Liquid and solid waste disposal: Sewage from both the lodge complex and staff village will be piped to sealed septic tanks, from which it will be collected at regular intervals and disposed at an approved municipal disposal site. Solid waste will be collected in bins and transported to a municipal landfill. Waste oil will be collected and transported to a petrol station or other enterprise where it can be drummed and properly disposed of.

9. Power and water supply source: Electricity will be drawn from Zambia''s government-owned power grid, all of which is generated from hydroelectric sources (Kafue and Kariba dams). A stand-by diesel generator will be used in the event of a power failure, a common occurrence throughout Zambia. The generator will be housed in a separate building with a cement floor designed to contain the full contents of the fuel storage tank in the event of a breach or spill. Water will be obtained from boreholes located on the project site. The first of these boreholes has recently been drilled. Water was struck at 32 meters with drilling to a depth of 40 meters. The sustainable yield from the borehole is approximately 8 liters per second (7,600 gallons per hour). The water has been tested and found to comply with all relevant WHO drinking water standards. A second borehole site has been selected but drilling will not be undertaken until construction commences.

10. Safety issues associated with the presence of wildlife: As there are no predators on the ranch, the likelihood of a dangerous incident is significantly reduced. Other types of wildlife such as buffalo (which have been proposed for introduction to the farm) can present a danger, however, particularly if they are provoked. To minimize this risk, the sponsors have established strict rules relating to game viewing. Guests will be allowed to view game either from the lodge''s safari vehicles or on foot, accompanied by a trained and experienced armed guide. Guests will not be permitted to drive around the ranch in personal vehicles.

11. CFC-free cold storage: Refrigeration equipment for the project has not yet been selected or purchased. The sponsor has agreed to purchase only equipment that utilizes non-CFC refrigerants, however, in accordance with the provisions of the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer.

12. General safety and employee training: All employees will be given training specific to the jobs they are required to perform. Key hotel staff will be recruited from a hotel management training school in Lusaka, which is donor-funded and has a proven performance record. Staff will be given additional on-the-job training specific to the requirements of the lodge owners and management team, and selected staff will receive emergency first aid training.

13. Emergency response preparedness and fire protection: As noted above, key staff members will be given emergency first aid training, and the lodge will arrange to have a qualified doctor on call at all times in the event of a more serious medical emergency involving a guest or employee. Medical rescue services will also be contracted to handle acute emergencies for which medical treatment outside of Lusaka is needed. Fire prevention and response are to be addressed in several ways. All thatched roofs (on the main reception building, conference center, and guest rooms) will be treated with a fire retardant to minimize the risk of fire. Each guest unit has been designed with two means of egress, and each will be equipped with a smoke detector and fire extinguisher. The reception and conference center will be equipped with smoke detectors and fire extinguishers as well, and will conform to South African building codes in regard to means of egress, fire doors, and emergency signage. Roofs in the kitchen and stores will be of iron sheets, rather than thatch. These facilities will be equipped with smoke detectors and fire extinguishers. Grass within 100 meters of the main lodge complex will be cut short to further reduce the likelihood of fires starting and to facilitate control of a fire should one start. Brush fire are common on the ranch, especially during the dry season, as are forest fires in the national forest adjacent to the ranch. For this reason, the sponsors have already trained their on-site staff in basic fire-fighting techniques. All newly-hired staff will be given similar training.

14. Based on its review of Mtendere’s Environmental Management Plan and key elements of the draft Game Management Plan, IFC concludes that the proposed project is being designed and will be operated to meet Government of Zambia requirements as well as all relevant World Bank policies and environmental, health and safety guidelines. 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.

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March 17, 1997 11:06 AM

Environmental and Social Mitigation Measures

Broad Community Support