Environmental & Social Review Summary
Project Number
8650
Company Name
Hillview Limited
Date ESRS Disclosed
Feb 5, 2010
Country
Fiji
Region
East Asia and the Pacific
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 30, 1998
Signed : Nov 13, 1998
Invested : Dec 23, 1998
Sector
Resort Hotel (Including Lodges)
Industry
Tourism, Retail and Property
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
- 6 -
Environmental Review Summary (ERS)
Project Name FIJI: Outrigger Reef Resort
Region South Pacific/Asia
Sector Hotels and Resorts
Project No. 008650
April 8, 1998
1. This project involves redevelopment of the existing 68 room Reef Resort at Korotogo, 75 km south of Nadi Airport. The project entails construction of 47 bungalows, 160 standard rooms and refurbishment of 48 waterfront rooms on 378 acres of freehold land. The resulting resort will be an international standard 255 key resort which will include two swimming pools, tennis courts and a par-three golf course. As per the Government’s “Fiji Tourism Development Plan 1998-2005” the Coral Coast , where the Reef is located and the original site of Fiji’s major tourism developments, falls under a Type A Tourism Development Area (TDA). TDA’s are areas which the Government has designated for expansion of tourism for the creation of resort centers. The Tourism Development Plan calls for the selection of a pilot TDA (Korotogo is a possible candidate) to see how it performs and then apply lessons to other parts of the country.
2. At IFC’s request the sponsor completed an independent focused environmental impact study. As part of the environmental impact study, the sponsor also completed an environmental management plan for resort construction. The sponsor has committed to implement all of the key recommendations and mitigation measures identified in the environmental impact study. The sponsor has retained Northern Project Management Pty. (NPM) to manage the construction of the hotel and implementation of environmental mitigation measures during construction.
3. 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 following key environmental health and safety issues were analyzed:
· sewage and liquid waste disposal;
· solid waste disposal;
· construction impacts;
· direct and indirect impacts on coastal resources and habitats;
· chemicals handling and application;
· power and water supply;
· CFC’s;
· employee safety training and emergency response; and
· fire protection measures.
Key mitigation measures contained in the environmental impact study are summarized in the paragraphs that follow.
4. The Reef Resort is located on the Coral Coast about 7 km east of Sigatoka (75 km south of Nadi), between the villages of Korotogo and Malevu, along the main Queen’s Road highway. The coastal margin of the area is several hundred meters wide, behind which are steep hills which extend many kilometers inland. The existing resort is situated within 30 meters of the high water mark, with the golf course extending through the coastal margin up the first line of hills.
5. While the project site was once densely forested, historic burning of the project site and neighboring hills has resulted in the creation of a fire climax grassland. The land is too steep to be suitable for agriculture, and due to burning possesses no significant ecological or wildlife qualities. The only terrestrial habitats of significance are at some distance from the hotel site, e.g., the Sigatoka Sand Dunes National Park (the only national park in Fiji) and mangroves along the Korotogo Creek. Coral reef located 500 meters offshore of the hotel will not be directly impacted by the expansion itself, however recreational activities such as diving and boating will need to take care not to disturb coral with boat anchors and human handling of coral. Due to the slope of the hills in the area erosion during construction will need to be controlled to eliminate sediment runoff into the Tubakula Creek, as sediment may in turn find its way to the fringing reef. This creek only flows seasonally, therefore erosion is only a real concern during the rainy season.
6. The location of the old coastal Queen’s Road adjacent to the existing hotel and within 100 meters of the ocean (at the site) does not make expansion of the hotel feasible without relocation of the road around the proposed expansion site. Accordingly, the sponsor made their willingness to expand and upgrade the hotel conditional upon the Government (i.e., the Public Works Department[PWD]) rerouting the road (called the Korotogo Bypass project). The increase in heavy traffic in the area has lead to many accidents and deaths and increased noise and pollution levels in the neighboring villages of Malevu and Korotogo and is a major contributing factor to constructing the bypass. The Government has had plans to reroute the Queens Road around Malevu and Korotogo since the 1970’s. Consequently, given the economic importance of the Reef’s expansion and road safety issues, the hotel’s expansion has acted as a catalyst for the Korotogo Bypass.
7. As part of the Korotogo Bypass project, the PWD required completion of a detailed EIA. This EIA was completed in September 1992 and subsequently approved by the Government. The EIA is an international standard document which proposes several alternative bypass alignments based on ecological and socioeconomic impacts and tradeoffs. Public hearings with local communities were held to discuss impacts and alignment options. Expansion of the Reef Hotel, as stated a catalyst to the bypass, was implicitly a general backdrop to the consultation process, and local communities are fully aware of , and support, the Reef’s proposed plans. Village elders/leaders have been briefed regarding the Reef’s plans. Support is based on the increased employment and indirect economic opportunities the hotel’s expansion will generate. The Government left the final selection of which route is taken to be decided by the locally affected communities. A decision regarding the alignment has been taken and the contract has been put to tender. No resettlement is necessary for the route selected.
8. Most of the existing structures of the hotel will be demolished. The sponsor will complete a survey of the buildings prior to demolishing them in order to identify any materials (e.g., asbestos, PCBs) requiring special handling. These wastes will be separated and appropriately disposed of. In addition, the survey will identify any materials that can be recycled in the new resort. Waste aggregates from demolition may also be supplied to local landholders to be used for erosion control in gullies and creek beds. Other inert aggregates may also be used as fill under new structures.
9. NPM will develop a Construction Management Plan which incorporates the recommendations of the environmental management plan for construction. This plan addresses the following:
· Sewage and stormwater control;
· Contingency plans;
· Monitoring of environmental indicators;
· Removal of hazardous waste (if necessary);
· Vegetation protection;
· Identification of site rules;
· Waste management requirements; and
· Traffic control.
NPM will also require that all contractors submit health and safety plans and provide training to their staff. Permits will also be required prior to commencement of any earthmoving. The sponsor also proposes to maximize the use of precast concrete units to minimize impacts of work on site that may increase the potential for erosion and waste generation. A system of stormwater channels, swales and ponds will be constructed to prevent uncontrolled runoff to the Tubakula Creek, thereby minimizing sedimentation of the beach area. Regular water quality tests will be conducted on the water in the creek, sea and foreshore of the site. These tests will be conducted both during construction, by NPM, and operations, by the sponsor.
10. There is adequate on site treatment of sewage. Accordingly, as part of the expansion the sponsor is proposing to connect the hotel to the Olosara Wastewater Treatment Facility, located about 7 km from the site at Sigatoka. In coordination with the PWD, the pipeline will follow the existing Queen’s Road. No new right of way will be established. The sponsor intends to install a pipeline of sufficient diameter so that the village of Korotogo, neighboring residences, businesses, and other tourism facilities will be able to link up with the sewage pipeline through PWD assistance/projects. Ownership and operation of the pipeline will transfer immediately to the PWD. This will have significant beneficial impacts on the marine environment, a nutrient enrichment and algal blooms, currently evident in the area are attributed to sewage discharge and runoff. Installation and linking with the pipeline should result in a dramatic improvement in marine water quality and coral vitality.
11. Liquid waste from all other point sources (e.g., laundry, kitchens, swimming pools) will pass through filtration and grease trap devices prior to discharge to the sewer system. Where possible, the hotel will use only biodegradable detergents/soaps. Water efficiency measures will be implemented and guests will be encouraged to minimize laundering of towels and sheets. In addition, wastewater from the laundry will pass through a heat sump to recover heat and preheat in-going water.
12. The Reef currently disposes of its solid waste at a dump site on their own property. The sponsor is aware that this site is not properly managed and is inappropriately situated. Accordingly, as part of the project, the sponsor will ensure that all waste is transported to the Sigatoka Landfill. The Government and the EU are currently developing plans for the construction of an international standard landfill at Naboro. This landfill is expected to be operational in the year 2000. The Reef will then discontinue use of the Sigatoka facility and dispose of all solid waste at the Naboro facility. In addition biodegradable waste will be composted at the resort nursery and/or be utilized in the resort piggery (a small scale subsistence piggery may or may not be established – primarily for employee/social function needs). A small scale incinerator will also be installed, however its use will be strictly controlled and no volatile materials will be burned in this unit (paints, treated timber, rubber etc. will not be burned in this unit). If necessary, the sponsor will establish on site waste disposal pits. These pits will be appropriately site, and only disposal of inert materials will be permitted in these pits. The need for these pits yet to be established and the sponsor will prepare guidelines, which will be reviewed by IFC, for the operation of these pits.
13. Power to the site will be from the national grid by the FEA. The sponsor has committed that the fuel storage tank for backup generators will be underground and will be equipped with a secondary containment structure and leak monitoring mechanisms. This tank may be installed by BP and in any case will be to international standards.
14. Water will primarily be supplied by the PWD who source water for the region from the Sigatoka River. The resort will construct its own reservoir and will, in emergency situations, utilize on site boreholes. PWD has indicated that in case of water shortages on site borehole supply may be diverted for local/emergency needs. Based on PWD’s plans to increase reservoir capacity at Sigatoka, water consumption at the hotel is not expected to have an impact on local supply.
15. Staff housing for a limited number of employees will be provided on site. These structures will be built with the same infrastructure services as the guest units (i.e., water and power supply, waste facilities etc.). These quarters will be much larger than present facilities, and they will be designed around a village concept with a central green.
16. As is standard for all IFC hotel investments, the sponsor will complete an independent desk review of project design proposals by a fire safety expert to ensure compliance with World Bank guidelines for fire prevention and life safety. This audit will be a condition of first disbursement of IFC’s loan. The sponsor is committed to designing the hotel to meet international fire safety standards and will immediately implement all audit recommendations. Based on preliminary project designs it is not anticipated that guest units will require sprinklers as they all exit to grade, however certain public and kitchen areas may require sprinklers.
17. The sponsor has committed not to install any equipment containing CFC’s or PCBs.
18. The Fijian Occupational Health and Safety Act requires appropriate training and safety equipment be provided to employees. The sponsor will ensure that all staff are receive induction training (including emergency response procedures), training in health related issues, and be provided with refresher courses on a regular basis. As mentioned above, contractors will be required to submit Health and Safety Plans prior to commencing work.
19. The sponsors have already begun to establish a nursery and will revegetate the site and landscape the resort with indigenous flora. A Nursery Management Plan will be developed and Manager will be appointed for the Nursery.
20. There are several archaeological sites (remains of villages) on the Reef property, however none of these areas will be disturbed as they are outside of the expansion area on a separate line of hills. However if Reef develops new areas on their property, they are aware of the need to avoid these areas
21. It is clear, based on the IFC meetings held with the Government, Coral Coast (Fiji) Ltd. staff, and with several citizens of Korotogo, that the project sponsor is well respected and committed to responsible and environmentally sound development. The sponsors desire to link the villages to the Olosara treatment facility and the emphasis on hiring locals is evidence of this.
22. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, subject to completion of a the agreed Fire Safety Audit and based on the sponsor’s commitment to immediately implement audit recommendations, the proposed project is being designed to meet Government of Fiji requirements, and World Bank policies, and environmental, health and safety guidelines.
23. 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.
Environmental Review Summary (ERS)
Project Name FIJI: Outrigger Reef Resort
Region South Pacific/Asia
Sector Hotels and Resorts
Project No. 008650
April 8, 1998
1. This project involves redevelopment of the existing 68 room Reef Resort at Korotogo, 75 km south of Nadi Airport. The project entails construction of 47 bungalows, 160 standard rooms and refurbishment of 48 waterfront rooms on 378 acres of freehold land. The resulting resort will be an international standard 255 key resort which will include two swimming pools, tennis courts and a par-three golf course. As per the Government’s “Fiji Tourism Development Plan 1998-2005” the Coral Coast , where the Reef is located and the original site of Fiji’s major tourism developments, falls under a Type A Tourism Development Area (TDA). TDA’s are areas which the Government has designated for expansion of tourism for the creation of resort centers. The Tourism Development Plan calls for the selection of a pilot TDA (Korotogo is a possible candidate) to see how it performs and then apply lessons to other parts of the country.
2. At IFC’s request the sponsor completed an independent focused environmental impact study. As part of the environmental impact study, the sponsor also completed an environmental management plan for resort construction. The sponsor has committed to implement all of the key recommendations and mitigation measures identified in the environmental impact study. The sponsor has retained Northern Project Management Pty. (NPM) to manage the construction of the hotel and implementation of environmental mitigation measures during construction.
3. 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 following key environmental health and safety issues were analyzed:
· sewage and liquid waste disposal;
· solid waste disposal;
· construction impacts;
· direct and indirect impacts on coastal resources and habitats;
· chemicals handling and application;
· power and water supply;
· CFC’s;
· employee safety training and emergency response; and
· fire protection measures.
Key mitigation measures contained in the environmental impact study are summarized in the paragraphs that follow.
4. The Reef Resort is located on the Coral Coast about 7 km east of Sigatoka (75 km south of Nadi), between the villages of Korotogo and Malevu, along the main Queen’s Road highway. The coastal margin of the area is several hundred meters wide, behind which are steep hills which extend many kilometers inland. The existing resort is situated within 30 meters of the high water mark, with the golf course extending through the coastal margin up the first line of hills.
5. While the project site was once densely forested, historic burning of the project site and neighboring hills has resulted in the creation of a fire climax grassland. The land is too steep to be suitable for agriculture, and due to burning possesses no significant ecological or wildlife qualities. The only terrestrial habitats of significance are at some distance from the hotel site, e.g., the Sigatoka Sand Dunes National Park (the only national park in Fiji) and mangroves along the Korotogo Creek. Coral reef located 500 meters offshore of the hotel will not be directly impacted by the expansion itself, however recreational activities such as diving and boating will need to take care not to disturb coral with boat anchors and human handling of coral. Due to the slope of the hills in the area erosion during construction will need to be controlled to eliminate sediment runoff into the Tubakula Creek, as sediment may in turn find its way to the fringing reef. This creek only flows seasonally, therefore erosion is only a real concern during the rainy season.
6. The location of the old coastal Queen’s Road adjacent to the existing hotel and within 100 meters of the ocean (at the site) does not make expansion of the hotel feasible without relocation of the road around the proposed expansion site. Accordingly, the sponsor made their willingness to expand and upgrade the hotel conditional upon the Government (i.e., the Public Works Department[PWD]) rerouting the road (called the Korotogo Bypass project). The increase in heavy traffic in the area has lead to many accidents and deaths and increased noise and pollution levels in the neighboring villages of Malevu and Korotogo and is a major contributing factor to constructing the bypass. The Government has had plans to reroute the Queens Road around Malevu and Korotogo since the 1970’s. Consequently, given the economic importance of the Reef’s expansion and road safety issues, the hotel’s expansion has acted as a catalyst for the Korotogo Bypass.
7. As part of the Korotogo Bypass project, the PWD required completion of a detailed EIA. This EIA was completed in September 1992 and subsequently approved by the Government. The EIA is an international standard document which proposes several alternative bypass alignments based on ecological and socioeconomic impacts and tradeoffs. Public hearings with local communities were held to discuss impacts and alignment options. Expansion of the Reef Hotel, as stated a catalyst to the bypass, was implicitly a general backdrop to the consultation process, and local communities are fully aware of , and support, the Reef’s proposed plans. Village elders/leaders have been briefed regarding the Reef’s plans. Support is based on the increased employment and indirect economic opportunities the hotel’s expansion will generate. The Government left the final selection of which route is taken to be decided by the locally affected communities. A decision regarding the alignment has been taken and the contract has been put to tender. No resettlement is necessary for the route selected.
8. Most of the existing structures of the hotel will be demolished. The sponsor will complete a survey of the buildings prior to demolishing them in order to identify any materials (e.g., asbestos, PCBs) requiring special handling. These wastes will be separated and appropriately disposed of. In addition, the survey will identify any materials that can be recycled in the new resort. Waste aggregates from demolition may also be supplied to local landholders to be used for erosion control in gullies and creek beds. Other inert aggregates may also be used as fill under new structures.
9. NPM will develop a Construction Management Plan which incorporates the recommendations of the environmental management plan for construction. This plan addresses the following:
· Sewage and stormwater control;
· Contingency plans;
· Monitoring of environmental indicators;
· Removal of hazardous waste (if necessary);
· Vegetation protection;
· Identification of site rules;
· Waste management requirements; and
· Traffic control.
NPM will also require that all contractors submit health and safety plans and provide training to their staff. Permits will also be required prior to commencement of any earthmoving. The sponsor also proposes to maximize the use of precast concrete units to minimize impacts of work on site that may increase the potential for erosion and waste generation. A system of stormwater channels, swales and ponds will be constructed to prevent uncontrolled runoff to the Tubakula Creek, thereby minimizing sedimentation of the beach area. Regular water quality tests will be conducted on the water in the creek, sea and foreshore of the site. These tests will be conducted both during construction, by NPM, and operations, by the sponsor.
10. There is adequate on site treatment of sewage. Accordingly, as part of the expansion the sponsor is proposing to connect the hotel to the Olosara Wastewater Treatment Facility, located about 7 km from the site at Sigatoka. In coordination with the PWD, the pipeline will follow the existing Queen’s Road. No new right of way will be established. The sponsor intends to install a pipeline of sufficient diameter so that the village of Korotogo, neighboring residences, businesses, and other tourism facilities will be able to link up with the sewage pipeline through PWD assistance/projects. Ownership and operation of the pipeline will transfer immediately to the PWD. This will have significant beneficial impacts on the marine environment, a nutrient enrichment and algal blooms, currently evident in the area are attributed to sewage discharge and runoff. Installation and linking with the pipeline should result in a dramatic improvement in marine water quality and coral vitality.
11. Liquid waste from all other point sources (e.g., laundry, kitchens, swimming pools) will pass through filtration and grease trap devices prior to discharge to the sewer system. Where possible, the hotel will use only biodegradable detergents/soaps. Water efficiency measures will be implemented and guests will be encouraged to minimize laundering of towels and sheets. In addition, wastewater from the laundry will pass through a heat sump to recover heat and preheat in-going water.
12. The Reef currently disposes of its solid waste at a dump site on their own property. The sponsor is aware that this site is not properly managed and is inappropriately situated. Accordingly, as part of the project, the sponsor will ensure that all waste is transported to the Sigatoka Landfill. The Government and the EU are currently developing plans for the construction of an international standard landfill at Naboro. This landfill is expected to be operational in the year 2000. The Reef will then discontinue use of the Sigatoka facility and dispose of all solid waste at the Naboro facility. In addition biodegradable waste will be composted at the resort nursery and/or be utilized in the resort piggery (a small scale subsistence piggery may or may not be established – primarily for employee/social function needs). A small scale incinerator will also be installed, however its use will be strictly controlled and no volatile materials will be burned in this unit (paints, treated timber, rubber etc. will not be burned in this unit). If necessary, the sponsor will establish on site waste disposal pits. These pits will be appropriately site, and only disposal of inert materials will be permitted in these pits. The need for these pits yet to be established and the sponsor will prepare guidelines, which will be reviewed by IFC, for the operation of these pits.
13. Power to the site will be from the national grid by the FEA. The sponsor has committed that the fuel storage tank for backup generators will be underground and will be equipped with a secondary containment structure and leak monitoring mechanisms. This tank may be installed by BP and in any case will be to international standards.
14. Water will primarily be supplied by the PWD who source water for the region from the Sigatoka River. The resort will construct its own reservoir and will, in emergency situations, utilize on site boreholes. PWD has indicated that in case of water shortages on site borehole supply may be diverted for local/emergency needs. Based on PWD’s plans to increase reservoir capacity at Sigatoka, water consumption at the hotel is not expected to have an impact on local supply.
15. Staff housing for a limited number of employees will be provided on site. These structures will be built with the same infrastructure services as the guest units (i.e., water and power supply, waste facilities etc.). These quarters will be much larger than present facilities, and they will be designed around a village concept with a central green.
16. As is standard for all IFC hotel investments, the sponsor will complete an independent desk review of project design proposals by a fire safety expert to ensure compliance with World Bank guidelines for fire prevention and life safety. This audit will be a condition of first disbursement of IFC’s loan. The sponsor is committed to designing the hotel to meet international fire safety standards and will immediately implement all audit recommendations. Based on preliminary project designs it is not anticipated that guest units will require sprinklers as they all exit to grade, however certain public and kitchen areas may require sprinklers.
17. The sponsor has committed not to install any equipment containing CFC’s or PCBs.
18. The Fijian Occupational Health and Safety Act requires appropriate training and safety equipment be provided to employees. The sponsor will ensure that all staff are receive induction training (including emergency response procedures), training in health related issues, and be provided with refresher courses on a regular basis. As mentioned above, contractors will be required to submit Health and Safety Plans prior to commencing work.
19. The sponsors have already begun to establish a nursery and will revegetate the site and landscape the resort with indigenous flora. A Nursery Management Plan will be developed and Manager will be appointed for the Nursery.
20. There are several archaeological sites (remains of villages) on the Reef property, however none of these areas will be disturbed as they are outside of the expansion area on a separate line of hills. However if Reef develops new areas on their property, they are aware of the need to avoid these areas
21. It is clear, based on the IFC meetings held with the Government, Coral Coast (Fiji) Ltd. staff, and with several citizens of Korotogo, that the project sponsor is well respected and committed to responsible and environmentally sound development. The sponsors desire to link the villages to the Olosara treatment facility and the emphasis on hiring locals is evidence of this.
22. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, subject to completion of a the agreed Fire Safety Audit and based on the sponsor’s commitment to immediately implement audit recommendations, the proposed project is being designed to meet Government of Fiji requirements, and World Bank policies, and environmental, health and safety guidelines.
23. 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.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
