PROJECT

Projects

Environmental & Social Review Summary

Project Number

9419

Company Name

A.S. Schlossle Hotel Group

Date ESRS Disclosed

Feb 5, 2010

Country

Estonia

Region

Europe

Last Updated Date

Jan 2, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 28, 1999
Signed : Oct 15, 1999
Invested : Feb 17, 2000

Sector

City and Business Hotel

Industry

Tourism, Retail and Property

Department

Regional Industry MAS LAC & EUR

Project Description

Environmental Review Summary (ERS)


Project Name: ESTONIA: BALTIC HOTELS

Region: Central and Southern Europe

Sector: Hotels and Tourism

Project No: 009419

1. Tallinn-based AS Schlossle Hotel Group Ltd. (the “Company”) is developing a chain of small 4-5 star hotels in Baltic capital cities, with an emphasis on cultural heritage and historic preservation. All hotels will be marketed and managed by an experienced management company, Consul International Hotels Limited, under its Park Consul banner. The first phase of development, the proposed project, will consist of three hotels. The company currently owns the 23 room Park Consul Schlossle Hotel in Tallinn, Estonia, which is located in the historic center of the city and opened in the Spring of 1998. Now restored by the Company, the property was originally a merchant''s house dating back to the 15th century. The Company now has two other properties, which it proposes to treat in similar manner. The renamed Hotel de St Petersburg (also in Tallinn) with 28 rooms was acquired in mid-1998 and will be restored to its former art deco and eclectic style. In Riga (Latvia) the company has acquired a building in the historic part of the central old town that will be converted into the 55 room Grand Palace Hotel, in a turn-of-the-century "belle époque" style.

2. This is a category B project according to IFC’s environmental and social 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 this project consisted of appraising technical, environmental, and social information submitted by the project sponsor, including a fire safety audit, and the technical appraisal and site review completed by IFC’s staff. The following potential environmental, health and safety impacts of the project were analyzed:

· implementation of an environmental management program;
· project design and historical preservation;
· liquid effluent disposal;
· waste disposal;
· use of CFCs in air conditioning and refrigeration equipment;
· fire protection and life safety; and
· employee training, health and safety programs.

The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

3. Environmental Management Program AS Schlossle and Consul management will ensure that ensure that the chain’s construction and operating practices comply with industry norms, local requirements, and World Bank policies and guidelines. In each city, the hotel General Manager will, in conjunction with other duties, be responsible for implementing the company’s environment, fire and life safety programs.

4. The Company will undertake appropriate environmental reviews, such as environmental audits of properties to be refurbished, to disclose impairments such as past site contamination or asbestos-containing materials. The company has followed guidelines acceptable to IFC and has taken actions and surveys to ensure that each building is free of contamination or asbestos containing materials. The Company will develop its properties with due regard for their historic character and take necessary measures to comply with local historic preservation requirements and World Bank policy on cultural property.

5. In order for building permission to be granted by local authorities, the Company has had to comply with all historic preservation committees and from the municipality where required. Copies of such documents from the State Heritage Department for projects are in hand and available from the Company for projects completed and will be forthcoming as the other two projects come on line.

6. For all projects, the Company has assigned a project leader together with the operator to ensure that fire and life safety programs and employee training are consistent with IFC requests during with during and after the construction period. Ober-Haus has provided for a project environmental coordinator to oversee and to manage the future implementation of the environmental management program.

7. Water Supply and Sewage Disposal The Company’s hotels will be connected to city water supply and sewerage systems. For individual hotels, the company has and will evaluate the quality of the water supplied and install any necessary measures, including in-house treatment, for compliance with established standards for potable water. The Company has tested and has certification from the municipality that the city water can be suitable as potable water.

8. The company ensures that for projects discharging to a municipal sewage system, the treatment plant has sufficient capacity to take effluent flow from the project, and the treated effluent from the municipal plant meets local regulations. The company will conduct a similar evaluation for future projects and will provide letters from municipal authorities as projects are completed that there is sufficient capacity to take effluent flow from the property and be treated.

9. Waste Disposal, CFCs, Backup Power Solid waste will be collected by private companies and disposed of by the municipalities at designated landfills. Recyclable material will be separated to the extent that local markets are available. None of the hotels will have onsite dry cleaning facilities. The company has committed that all cold storage and central cooling systems will be CFC-free where ever possible. The municipalities will provide electric power and natural gas; there will be no onsite generators or fuel supplies.

10. Fire and Life Safety The Company has commissioned an independent audit of the as-built/operating condition of the Schlossle Hotel and project designs for the Hotel de St Petersburg and Grand Palace Hotel to assess compliance with World Bank guidelines for fire protection and life safety. The company has accepted the recommendations from the independent fire audit and is implementing the consultant’s recommendations for strengthening of fire safety roles and responsibilities and training programs, and specific findings in the areas of fire prevention, compartmentation, detection and alarm, egress, and fire extinguishment. A Corrective Action Plan (CAP) and timetable have been agreed with IFC. The company will conduct a similar audit process on any new hotels.

11. Training To date, employee training, health and safety programs have been conducted for the Schlossle Hotel by the operator. These have included an initial fire protection and fire fighting training session for all employees, which was conducted by the local fire department, and follow-up departmental training in emergency preparedness including active drills. These programs have now been updated to incorporate the findings of the fire protection and life safety audit, and have been extended to the company’s other hotel plans.

12. Based on its review of available information regarding potential environmental and social impacts and proposed mitigation measures, IFC concludes that, with implementation of the CAP for fire protection and life safety, the proposed project is being designed to meet Government requirements, and World Bank policies, and environmental, social, health and safety guidelines.

13. IFC will monitor the Company’s progress of implementing the CAP as well as ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC and by conducting periodic site reviews during project supervision.

Environmental and Social Mitigation Measures

Broad Community Support