PROJECT

Projects

Environmental & Social Review Summary

Project Number

8620

Company Name

Multiplaza de Tegucigalpa

Date ESRS Disclosed

Feb 5, 2010

Country

Honduras

Region

Latin America and the Caribbean

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 30, 1998
Signed : Feb 18, 1999
Invested : Jun 25, 1999

Sector

City and Business Hotel

Industry

Tourism, Retail and Property

Department

Regional Industry MAS LAC & EUR

Project Description

- 2 - May 5, 1998
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)

Project Name HONDURAS: Camino Real

Region Latin America and Caribbean

Sector Tourism

Project No. 008620


1. This project involves the construction of a 150 room hotel and a shopping center on the same site in Tegucigalpa. The shopping center will include restaurants, movie theaters, and shops. The hotel will be the first 5 star hotel in the city. Total project cost is estimated at US$35.7 million.

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 the project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal completed by IFC’s staff. The following potential environmental, health and safety impacts of the project were analyzed:

· past and present land use;
· sewage treatment and disposal;
· liquid and solid waste disposal;
· construction impacts;
· direct and indirect impacts on coastal resources and habitats;
· sustainable water supply;
· power supply;
· CFCs;
· employee safety training and emergency response; and
· fire protection measures.

The information provided by Camino Real about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.

3. The project site, an about 6.4 hectares, is located in Tegucigalpa. The site has being barren for the last five years and the project will not include relocation nor will affect natural habitats.

4. The hotel’s kitchen and laundry wastewater will pass through grease traps to retain oil and grease prior to being discharged. It is currently proposed that the sewage and wastewater from both the hotel and the shopping center will be discharged to the municipal system which currently disposes the untreated effluents into the Rio Choluteca. However with financing from the Inter-American Development Bank, the local government is currently developing a Master Plan for the city which includes wastewater treatment alternatives. Accordingly, the sponsor has committed to install an onsite wastewater treatment plant if prior project completion, which is schedule for December 1999, the municipal system is not treating the project wastewater. The sponsor will make space allocation provisions as well as budgetary commitments ensuring that, if needed, the wastewater plant treatment can be built.

5. Solid waste from the hotel and the shopping center will be collected by the municipal trucks and properly disposed in the municipal landfill. The sponsor has also committed to disposed of all solid waste generated during construction in the area assigned by the local authorities.

6. Drinking water for the project use will be provided by the local authorities. The sponsor will obtain underground water for the additional water uses. Prior to first disbursement, the sponsor will provide IFC with an evaluation of the number and water capacities of the boreholes to be drilled. This evaluation, which must be cleared by IFC, will quantify the following information: surface catchment, average annual rainfall, total withdrawals from other points, current depth of aquifer, completion of pump tests and identification of aquifer recovery rate to stable groundwater level.

7. Power supply for the project will be obtained from the national power network. In addition, the project will have two small capacity boilers as back-up power systems. The boilers will comply with World Bank guidelines. The fuel storage tanks will comply with all the safety norms and will be provided with secondary containment.

8. The sponsor has committed that all cold storage and central cooling systems will be CFC-free.

9. All employees will be provided with the necessary safety training and work procedures. The training programs will include first aid, fire safety and prevention, and proper management and handling of food. An independent fire and safety audit is being conducted. The first disbursement will be contingent upon the sponsor’s commitment to implement the fire and safety audit’s recommended mitigation measures. The facilities will be designed to meet National Fire Protection Association (NFPA) standards including: sprinkler systems, fire fighting equipment, smoke detectors, an integrated alarm system, and emergency lighting.

10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Camino Real proposed project will meet World Bank environmental, health and safety policies and guidelines and Honduras requirements.

11. 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 Camino Real and by conducting periodic supervision.



L:\wpeu\JOSEFINA\HONDURAS\camino.ERS.doc
May 13, 1998 11:28 AM

Environmental and Social Mitigation Measures

Broad Community Support