Environmental & Social Review Summary
Project Number
7790
Company Name
Orascom Projects and Touristic Development SAE
Date ESRS Disclosed
Feb 5, 2010
Country
Egypt, Arab Republic of
Region
Africa
Last Updated Date
Sep 30, 2022
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Feb 25, 1997
Signed : Mar 17, 1997
Invested : Apr 15, 1997
Sector
Resort Hotel (Including Lodges)
Industry
Tourism, Retail and Property
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
Environmental Review Summary (ERS)
Project Name Egypt-Orascom Touristic Establishments
Region Central Asia, Middle East and North Africa
Sector Tourism
Project No. 007790 December 9, 1996
1. The project consists of the expansion of an integrated tourism development in El Gouna, 21 km north of Hurghada on the Red Sea Coast. IFC’s proposed investment will consist of US$20 million in loans and US$5 million in equity. The borrower is Orascom Projects and Touristic Development (OPTD), mainly owned by the Sawiris family. OPTD has been developing an integrated tourism project in El Gouna since 1989. The development in El Gouna already includes two international premium quality hotels, a 232-room Sonesta and a 302-room Movenpick, three smaller hotels of 25, 66 and 120 rooms, a town center with around 250 apartments, commercial center, bars and restaurants, 100 villas and the basic infrastructure facilities required for such a development including power, water, sewage treatment facilities, a water bottling facility, a small marina and a small airstrip.
2. Over the next twelve years, 1997-2008, the planned expansion in El Gouna will comprise five new 300-room international hotels along with three smaller hotels of 50, 70 and 120 rooms. Two more touristic villages, and around 1,250 villas and 1,690 apartments will be added. This expansion will be built around a new golf course, marina, commercial and retail facilities, and will include a medical facility and all other utilities (including power, water, sewage treatment) necessary for the overall development. OPTD has committed to ensuring that all new developments will comply with World Bank guidelines and policies. IFC will be informed of any changes to the Master Plan and OPTD will submit to IFC for approval environmental management plans to demonstrate how these changes will comply with World Bank guidelines and policies.
3. This is a category B project according to IFC''s environmental review procedure because the El Gouna resort is already very well developed. The principal impacts that will arise can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. There are no resettlement issues and the terrestrial ecological value of the site is limited. The site does, however, include important marine habitats which are and will continue to be protected. The review of this project consisted of a site visit by the Environment Division, appraising the fire and safety audit, the Environmental Assessment (1994) of the northern part of the site and other technical and environmental information submitted by the project sponsor and the technical appraisal and site review completed by IFC’s Technical staff. The following potential environmental, health and safety impacts of the project were analyzed:
· modification of land use;
· marine impacts;
· liquid effluent treatment and disposal;
· water supply;
· solid and clinical waste disposal;
· recovery of dry cleaning solvents;
· use of refrigerants;
· socio-economics, and
· fire safety and emergency response.
Modification of Land Use
4. The area occupied by El Gouna was uninhabited desert as were the surrounding areas. As part of the original environmental assessment, field surveys were undertaken to determine the terrestrial ecological value of the site. The site is devoid of vegetation with a few sparsely scattered shrubs. No rare or endangered species are present. There are no resident mammals or nesting turtles in the area. No archaeological artifacts or sites of historical importance have been recorded on site. The affects of existing and future development on terrestrial ecology are insignificant.
Marine impacts
5. There are coral reefs approximately 500m from the shoreline and small areas of mangrove in El Gouna. The reef although not particularly diverse or attractive to snorklers or divers, is considered to be healthy and therefore of conservation value. In the sublittoral zone there are also seagrass channels. An environmental impact assessment was commissioned in 1994 by the Sponsor to assess the marine environment and potential impacts arising from the development, specifically the marina and lagoon system. In addition long term quantitative modeling has been ongoing using the Mike 11 Model to ensure that the design and construction of the lagoon system does not adversely impact marine ecology, inhibit good circulation and that it prevents the dispersion of pollutants. The entrances of the lagoons have been located to avoid disturbance to reef areas and enhance circulation. No irrigation water will be used near the lagoons to avoid eutrophication. Screens are also being used to control the dispersion of any dredged material on reef structures. The artificial lagoons may in time become of value to a range of marine fauna and flora. The marina itself and the entrance to the marina will be located away from coral areas. Any offshore dredging will be undertaken using a suction dredger to minimize dispersion of sediments and the sludge disposed off in settling tanks.
6. As stated above there are small isolated pockets of mangroves on the site. Aside from performing an important biological function, the mangrove Avicennia marina is a rare species in Egypt and is protected by law. All mangrove areas are fenced off and channels to the sea are maintained to ensure periodic inundation. The mangroves have not been affected by the existing development. The sponsor has cooperated and sponsored the Hurghada Environmental Protection Agency (HEPCA) to install a large number of fixed buoys in the surrounding offshore areas to ensure that boats are given an easy alternate to anchorage. All diving and snorkeling excursions are conducted under the supervision of trained instructors who ensure the environmental codes are observed. In coordination with HEPCA advisory promotional material outlining all environmental requirements/codes are distributed to resort guests.
Effluent Treatment Systems
7. There are four waste water treatment plants on site all of which are activated sludge wastewater treatment systems. The effluent complies with the Tourism Development Authority regulations, which conform to (are more stringent than) World Bank guidelines. All new hotels, apartments and villas will be equipped with treatment systems and /or septic tanks. The resulting solids are collected and incinerated. The effluent is reused for irrigation purposes (landscaping), no fruits or vegetables are planted for human consumption. The effluent complies with the World Bank guideline for total coliforms. The discharge of untreated or treated sewage to the sea is prohibited. All kitchens have a grease interceptor . Treated effluent will comply with World Bank guidelines.
Water Supply
8. Water supply for the resort is derived from ground water (slightly brackish) abstracted from a private local aquifer. The Desert Research Center investigated the capacity/yield of the aquifer and determined what the resort could safely abstract. The water is desalinated in a desalination plant located 5 km from the site. Brine from the desalination plants are stored in ponds to reduce the temperature before being discharged into a lagoon. These lagoons are approximately 3 km from the closest coral reefs.
Solid Waste
9. Solid wastes generated at the hotels are collected and disposed of at a nearby landfill. Special wastes, such as kitchen grease trap waste, is removed by a contractor. Dry cleaning services will not be operated by the resort. CFC’s will not be used for central cooling systems. Clinical waste from the medical facility will be incinerated.
Socio-economic impacts
10. No resettlement was or will be required and the project will create approximately 4,000 jobs. The integrated nature of the project will help create a planned community providing residential and commercial facilities supported by a medical center, school and other infrastructure required for such a community.
Power Generation
11. There two diesel plants on site, both Volvo Penta models (TAD 1211G) and TAD1631G). They comply with the German emission standards.
Medical Facility
12. The facility will include -3 operating rooms, 1 decompression chamber, 6 out patient exam. rooms, 18 beds, a pharmacy, manager’s room, doctors’ rooms, nursing rooms, etc. Expected clinical waste from the medical facility is expected to be in the region of 50 kg/day and will be incinerated.
Brewery
13. The effluent discharge is treated by one of the treatment plants and the solid waste is used as food for sheep.
Golf Course
14. The design of the golf course will include the creation of a number of habitats including wetland areas. Native planting will be used. The course will be sited over a kilometer from any marine environment and numerous field drains will ensure that run-off is disposed off to pits installed with gravel filters, approximately three kilometers inland.
Fire and Safety
15. Fire and life safety provisions for the El Gouna resort are comprehensive and have been subject to an audit. The hotel systems currently in operation are largely in compliance with World Bank guidelines. A number of minor deficiencies relating largely to property protection rather than life safety issues were noted by the auditor and these will be corrected by the Sponsor to ensure complete compliance. Smoke detectors will be incorporated throughout the hotel. Detectors are connected to the central control alarm panel and the alarm signal will be audible throughout the building. The hotels are provided with emergency lighting systems and extinguishes. Air-conditioning systems are equipped with duct smoke detectors. Fire suppression systems are in place in all cooking hoods. Ducts are equipped with fire dampers Emergency response programs are in place including evacuation procedures, employee training, inspection and coordination with local authorities. All new hotels will be in compliance with World Bank guidelines. The apartments, staff housing, villas, and medical center will be fitted with heat detectors.
Summary
16. 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 Egypt requirements, and World Bank policies, and environmental, health and safety guidelines.
17. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by OPTD and by conducting periodic supervision.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
