Environmental & Social Review Summary
Project Number
9396
Company Name
Marasa Holdings Limited
Date ESRS Disclosed
Feb 5, 2010
Country
Zambia
Region
Africa
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Nov 3, 1999
Signed : Nov 3, 2000
Invested : Feb 20, 2001
Sector
City and Business Hotel
Industry
Tourism, Retail and Property
Department
Regional Industry - MAS Africa
Project Description
ENVIRONMENTAL REVIEW SUMMARY
Project Name ZAMBIA: LUSAKA HOTEL INTER-CONTINENTAL
Region Sub-Saharan Africa
Sector Hotels and tourism
Project No. 009396
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1. This project involves rehabilitation and refurbishment of Hotel Inter-Continental in Lusaka. The hotel was acquired by the Madhvani Group from the Zambia Privatization Unit of the Ministry of Finance and Economic Planning. This hotel was supported by IFC in 1984, when it was 80% Government owned; however, rehabilitation and expansion was never fully completed at that time. The current proposed rehabilitation of the hotel will include: complete renovation of three (3) floors of guest rooms and partial renovation of two (2) other floors; redesign of the reception lobby and port cochere area; bar and restaurant renovation; modernization and refurbishment of the conference center; a new health club; upgrading of the retail arcade; modernization of the business center; and improvements to back-of-house facilities.
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:
• sewage and liquid effluents;
• solid waste;
• water and power supply;
• CFCs;
• fire protection;
• employee safety training; and
• emergency response.
3. IFC has reviewed environmental and health and safety information supplied by the management of the Intercontinental, as well as sections of the appraisal report and information provided by the City of Lusaka regarding waste disposal. Key elements of this information are described below.
4. Sewage and liquid effluents: All wastewater from the hotel is discharged to the Lusaka Water and Sewerage’s Manchichi municipal treatment works, one of two large-scale wastewater treatment facilities in Lusaka. The system includes screening filters to remove large solids, a primary sedimentation pond, anaerobic digestion ponds, a trickling (bio-filter) filtration system to facilitate oxidation of residual organic matter, and finally to maturation ponds. The aerated water is tested to ensure it meets discharge standards established by the Environmental Council of Zambia (ECZ) for BOD5, total suspended solids, total dissolved solids, total coliforms and fecal matter prior to discharge to a nearby watercourse. These standards are in general less stringent than IFC’s with the exception of BOD5, for which the same limit is applied. Staff from the University of Zambia’s School of Environmental Science laboratory sample and analyze the effluent on a regular basis to ensure that it meets the ECZ standards. The proposed renovations will not increase the volume of wastewater generated by the hotel.
5. Solid waste: Organic kitchen wastes are bagged and kept in a cold room until they can be collected by the City Health Department for disposal. Waste paper and garden wastes are disposed in large bins behind the hotel and collected on a regular basis by a licensed contractor who transports them to a municipal landfill.
6. Water and power supply: Water for all hotel operations is provided by Lusaka Water and Sewerage, the municipal supplier, which draws primarily from the Kafue river, although some water is also drawn from boreholes. The municipal water authority treats the water prior to distribution to customers using conventional methods, including chlorination. As for effluents, staff from the University of Zambia’s School of Environmental Science laboratory sample and analyze the city supply on a fortnightly basis to ensure that it meets WHO guidelines. Within the hotel, water is stored in two concrete tanks with a total capacity of 1 million liters – enough to operate the hotel for three days in the event of a supply interruption. According to the hotel’s Chief Engineer, water stored in the hotel is treated with chlorine to ensure potability. The hotel regularly tests the water in these storage tanks for pH, chlorine levels, and hardness. In addition, the Intercontinental hotel group requires that the water be analyzed twice a year for bacterial counts, in particular for traces of legionaella. Samples drawn from the hotel’s water supply are sent to a private laboratory in South Africa for analysis. The results are sent to Intercontinental’s regional headquarters in Nairobi to demonstrate compliance with internationally recognized water quality standards. Electricity is drawn from the national grid. Although power interruptions in Lusaka are infrequent, the hotel has a 150 kW diesel stand-by generator located in the basement plant room, capable of powering one guest lift in each tower, one service lift, and emergency lighting for fire exits, in the public areas, and in the kitchens. The generator will be replaced as part of the rehabilitation with a larger unit capable of powering the entire hotel during a power failure. At IFC’s request, the sponsor has agreed to install the new unit within an appropriate secondary containment structure capable of holding the entire contents of the generator and tanks in the event of a spill or breach.
7. CFCs: The air conditioning systems and cold rooms utilize R-22, a non-chlorofluorocarbon (CFC) refrigerants acceptable under the terms of the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer. The minibars in each of the guest rooms utilize R-12, a CFC refrigerant whose use is being phased out worldwide. These units were installed in 1988 and have approximately two years of useful life remaining before they will need to be replaced. The sponsors have agreed to replace them with units that utilize non-CFC refrigerants at that time. The Zambian Ministry of Environment and Natural Resources (MENR) has established an Ozone Office, which is working to establish a recycling program for greenhouse gases, including CFCs. The hotel management has agreed to consult the Ozone Office when it retires these units, to determine whether recycling of the CFCs is possible.
8. Fire protection: The rehabilitation and refurbishment of the hotel will comply with World Bank Guidelines for Hotels. In this instance it is proposed and accepted that the base fire and safety standards to be adopted are contained within the “Code of Practice for the Application of the National Building Regulations” published by the South African Bureau of Standards commonly referred to as SABS 400. World Bank guidelines further require that the building be protected throughout with an automatic sprinkler installation and central smoke/fire detection and alarm systems. It is intended that the building, when renovated, would be a “rational design” that would satisfy any competent South African authority that the regulations have been met. The proposed fire and safety measures for the renovation, contained in the detailed design drawings and specifications, will be reviewed by a qualified authority/consultant retained by the sponsors who will certify that the intended work results in a building that meets the codes. Where it does not, a corrective action plan will be prepared and executed to remedy any deficiencies. This fire and safety authority must also agree and confirm in writing that the work programme, substance, and sequence of the rehabilitation work is conceived so that the safety of guests and employees is secured at all times during the renovation. Any important deviation from the agreed methods and sequence will require notification and prior approval from the said authority. On completion of the works, further certification (by the same fire and safety consultant) will be required that the building is compliant.
9. Employee safety training: All employee training is coordinated by Intercontinental, in accordance with its own internal operating procedures and practices. Basic training for all staff includes standard hotel procedures, personal hygiene, workplace hygiene and housekeeping, as well as specific training relevant to the job for which they are employed. In addition, the Human Resources manager requires all employees to take part in training on fire safety and emergency procedures. This training is conducted by the hotel’s Chief Engineer and Training Manager and includes an introductory half-hour session at the time the employee is hired, and a more detailed two hour session, which all employees must undergo twice each year. In addition, all employees receive specialized fire and safety training relevant to their particular area of work – for example, food and beverage employees receive instruction and drills in how to respond to grease fires in the kitchen. . The training modules include identification of potential fire and other hazards, prevention of fires and accidents, safety roles and regulations, and emergency evacuation procedures. Practical training in the use of fire extinguishers, other fire protection equipment, and emergency exits is also provided.
10. Emergency response: As part of its fire safety and emergency procedures, the hotel has established emergency evacuation routes and procedures. All staff receive instruction in these procedures (see above), including periodic drills in resounding to a fire or other emergency. The hotel has both a nurse and doctor on 24-hour call, should a guest become ill or injured and require immediate emergency care.
11. Other: Ventilation and air extraction in the laundry is inadequate, as has been noted in past IFC supervision reports, resulting in excessive heat and humidity in the laundry. The sponsors are aware of the problem and the designs for the rehabilitation include provisions for improving the mechanical ventilation system and installing additional extraction fans and ducting to endure that workplace air quality meets internationally acceptable standards. A separate extraction and filtration hood will be installed over the drying machinery to remove lint and dust. The hotel has two electric steam boilers, one to supply the kitchen and one to supply the laundry, capable of producing a total of 1.6 tons of steam per hour.
12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed and will be operated to meet pertinent Government of Zambia requirements and all relevant World Bank policies and environmental, health and safety guidelines.
13. IFC will monitor ongoing compliance with World Bank Group policies and guidelines during the life of the project by reviewing and evaluating the Environmental and Social Monitoring Reports (AMRs) to be submitted annually to IFC by the sponsor, and by conducting periodic site visits during project supervision.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
