PROJECT

Projects

Environmental & Social Review Summary

Project Number

8674

Company Name

Idarat Investment Corporation, S.A.L.

Date ESRS Disclosed

Feb 5, 2010

Country

Lebanon

Region

Middle East

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 30, 1998
Signed : Oct 20, 1998
Invested : Sep 28, 1999

Sector

Resort Hotel (Including Lodges)

Industry

Tourism, Retail and Property

Department

Regional Industry MAS MCT

Project Description

- 3 - May 28, 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 LEBANON: Idarat, SAL

Region Middle East

Sector Tourism

Project No. 008674


1. This project involves provision of support to Idarat, a holding company which has equity interests in 3 existing hotels and 11 restaurants. IFC funds will be used to develop 3 new hotels and 4 restaurants as well as to restructure the company’s balance sheet. The three new hotels to be developed involve the renovation of existing buildings in Beirut. All hotels and restaurants are located in Beirut, with the exception of the Beverly Beach Hotel in Maameltein, near Jounieh. All hotels are small, with an average capacity of 60 rooms.

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 and site review completed by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed:

· sewage and effluent disposal;
· solid waste disposal;
· water and power supply;
· hygiene and housekeeping;
· CFCs;
· employee safety training; and
· fire protection measures.

The information provided by Idarat and their consultants 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. Sewage and wastewater: there are currently no operating municipal treatment plants in Beirut, however there is a municipal sewer system. This system is connected to the city’s two outfalls which discharge untreated wastewater directly to the sea. The World Bank and the EIB currently have ongoing projects to upgrade Beirut’s sewerage facilities. The first step, which will be completed within the next 2 years, involves installation of coastal interceptors to ensure that all sewers in the Greater Beirut area are connected to the two outfalls. To verify whether the existing sea outfalls are adequate, coastal water quality studies will be undertaken to identify mitigative measures (whether treatment plants or upgraded sea outfalls would be required). The entire reconstruction effort is expected to be complete within the next 6 years. With the exception of the Beverly Beach, which is linked to a sewer system in Maameltein, where there is an existing World Bank sewerage project, all of Idarat’s hotels and restaurants are connected to Beirut’s sewer system. Given that these are existing urban structures, installation of onsite package treatment plants is not feasible, nor cost effective as the units would then be discharging treated effluent to a polluted waste stream/sewer. Accordingly, as there is no feasible alternative, the sponsor will continue to discharge to the municipal system, but will be required to install screens and grease separators to minimize pollution (i.e., discharge of floating matters, grease and oils). No dry cleaning solvents will be discharged to the sewers. In addition, the sponsor will cooperate fully with the Government, EIB, World Bank or other donors in the implementation of initiatives to upgrade Beirut’s sewerage facilities.

4. Solid Waste Disposal: all solid waste, including grease and solids screened/separated in effluent, from the hotels and restaurants will be disposed of at the municipal landfill located south of Beirut. This disposal service will be provided by Sukleen Co.

5. Water and Power Supply: are provided by the local network/grid. The sponsor maintains on site diesel fired generators for backup power supply. Fuel storage tanks associated with these units, and all fuel storage tanks associated with boilers, will be provided with secondary containment structures.

6. CFCs: The sponsor has committed that all cold storage and central cooling systems will be CFC-free. Existing CFC based equipment will be phased out as per local/national requirements. In addition no PCB based equipment is to be installed.

7. Employee Safety and Hygiene: in coordination with their technical consultants Idarat will develop an employee safety training program and a corporate hygiene program. Submission of these plans, acceptable to IFC, will be a condition of first disbursement.

8. Fire Safety: as a condition of first disbursement of IFC’s loan, the sponsor must complete an independent Fire Safety Audit (including site visit) of each existing hotel’s and restaurant’s fire safety installations. This audit will produce a Corrective Action Plan (CAP) and Timetable of Implementation, acceptable to IFC, for each structure, which the sponsor must implement as per individual hotel/restaurant renovation/expansion schedules. Based on the findings of the independent Audit existing hotels/restaurants may be required to immediately implement specific priority upgrades to structural design/fire safety systems. Any new hotels not substantially completed are required to comply immediately with World Bank fire safety guidelines and must also undergo, as a condition of disbursement, an independent Fire Safety Audit.

9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, and based on the upgrading of Beirut’s sewerage facilities and the sponsors commitment to implement all Fire Safety Audit CAP recommendations, IFC concludes that the proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.

10. 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 Idarat and by conducting periodic supervision.

lb/lebanon/idarat ers.doc

P:\cteeu\idarat ers.doc
May 29, 1998 2:07 PM

Environmental and Social Mitigation Measures

Broad Community Support