PROJECT

Projects

Environmental & Social Review Summary

Project Number

9118

Company Name

Pandu Ondangwa Properties (Pty) Limited

Date ESRS Disclosed

Feb 5, 2010

Country

Namibia

Region

Africa

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Nov 11, 1998
Signed : Jun 11, 1999
Invested : Dec 15, 1999

Sector

City and Business Hotel

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Africa

Project Description

ENVIRONMENTAL REVIEW SUMMARY


Project Name AEF-NAMIBIA: BEST WESTERN PANDU ONDANGWA
HOTEL

Region Sub-Saharan Africa

Sector Hotels and resorts

Project No. 009118
________________________________________________________________________

1. This project involves establishment of a 120-room Best Western hotel and conference center in Ondangwa, an emerging business center in northern Namibia. The 3-star hotel will be managed by Cresta Hospitality, a division of TA Holdings which is a publicly listed company on the Zimbabwe Stock Exchange. Cresta operates 18 other hotels in Botswana, South Africa and Zimbabwe and is the Best Western master franchise holder for southern Africa. Following Namibian independence in 1990 and the recent restoration of peace in Angola, economic development of northern Namibia has become a key Government priority. The goal is to develop the northern region as an alternative business and commercial center to Windhoek, which suffers from excessive urbanization and has very little room for natural expansion. Given its relatively well developed road and air service infrastructure, the town of Ondangwa is being promoted as the "capital" of the north and the "gateway" to Angola and Zambia. The Namibia Department of Trade recently announced the establishment of an Export Processing Zone in the neighboring town of Oshikango on the Angolan border which is expected to further stimulate business activity in the region. Construction also has begun of a large industrial park in Ondangwa, which will be targeted toward small and medium sized enterprises. Regional supply of hotel accommodation is limited with only 130 rooms available in the targeted market. None of the existing hotels conform to international accommodation standards, yet occupancy rates are high and premium room rates are realized. The supply shortage is expected to increase with the growth in regional economic activity.

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 are as follows:

• site history and past contamination;
• source of water and power supply including fuel storage if applicable;
• disposal of liquid and solid wastes including sewage;
• air emissions from boilers and laundries;
• CFC-free cold storage and air conditioning;
• employee hygiene and health and safety training; and
• fire protection and emergency response.

IFC has reviewed information provided by the project sponsor regarding environmental management and occupational health and safety issues associated with the proposed project. Key elements of this information are described below.

3. Site history and past contamination: The sponsor has acquired a 60 hectare (ha) plot of land on the outskirts of Ondangwa town, in an area designated by the national and local governments for development. Approximately 1.5 ha will be used for the hotel project; the remaining land is designated for other developments such as shopping centers and office space. The property is presently undeveloped and there is no history of development of the site or of land use that would have resulted in contamination. The area surrounding the site comprises both undeveloped plots and developments including a supermarket and commercial warehouse. The project is supported by local officials and community representatives.

4. Source of water and power supply including fuel storage if applicable: The hotel will obtain its water from the municipal water supply. Electricity will be obtained from the national grid which draws from South Africa''s system as well as a hydropower plant in northern Namibia and a gas-fired facility in the south of the country. Although power supply in Namibia is quite reliable, the hotel is considering installing a small diesel generator for use in the event of a power interruption. If this is done, the sponsor has agreed that fuel for the generator will be stored on site in tank(s) equipped with a secondary containment structure capable of holding the entire contents of the tank(s) in the event of a spill or breach.

5. Disposal of liquid and solid wastes including sewage: Solid wastes will be collected on a regular basis by the Ondangwa municipal authority and disposed of in a sanitary landfill located on the outskirts of the city. Sewage from the hotel will be discharged to Ondangwa’s municipal sewerage system. According to the Ondangwa Town Council, the town’s two sewage treatment facilities are currently operating at approximately 50% capacity and thus can easily handle the volumes of wastewater generated by the hotel. In accordance with Government regulations, solids are collected in septic tanks and wastewater is pumped to the municipality’s oxidation pond facility on the outskirts of the town. The wastewater flows through a series of oxidation ponds into a maturation pond, from which it is allowed to evaporate; this water is not used for irrigation or any other purposes. Septic tanks are pumped out as needed and the solids disposed of in the municipality’s drying beds. The appraisal consultant for the project recommended that grey water from hotel operations be recycled and used to irrigate the grounds and gardens and the sponsors have agreed to implement this recommendation.

6. Air emissions from boilers and laundries: The hotel will not have a boiler. Laundering equipment likely will include washing machines, dryers and a dry cleaning unit. All of these units will be sourced new and will meet international emissions standards.

7. CFC-free cold storage and air conditioning: The sponsors have agreed to install only cold storage and air conditioning equipment that utilizes non-CFC refrigerants, in accordance with the provisions of the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer.

8. Employee hygiene and health and safety training: The hotel design incorporates ablution facilities and change rooms for hotel staff, in accordance with all national and municipal requirements. As the hotel will be operated as a Best Western franchise, it will be required to implement and adhere to Best Western policies and procedures with respect to quality assurance, inspections, hygiene and safety, and employee training. As the master franchise holder for Best Western in southern Africa, Cresta Hospitality provides training materials and other assistance to its franchisees in each of these areas to ensure the maintenance of its standards throughout the franchise. Employee training in hygiene and safety will conform to standards established by the International Standards Organization (ISO), Government of Namibia, and recognized regional bodies (South African Bureau of Standards).

9. Fire protection and emergency response: The proposed hotel design is for a two story (ground floor plus one) structure. The sponsors have agreed to comply with all World Bank guidelines regarding fire protection and life safety, as well as all relevant requirements of the Government of Namibia and municipal authorities. The sponsors have also agreed to implement a fire and emergency response plan for the hotel and to train hotel staff in these procedures. A desk review of the detailed hotel design will be conducted by a fire safety expert prior to the disbursement of IFC funds to ensure that the facility conforms to World Bank guidelines.

10. Based on its review of the sponsor’s environmental, health and safety practices and proposed mitigation measures, IFC concludes that the proposed project is being designed and will be operated to meet Government of Namibia requirements and all relevant World Bank policies and environmental, health and safety guidelines, and environmental clearance is given for this project. 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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July 28, 1998 10:57 AM

Environmental and Social Mitigation Measures

Broad Community Support