Environmental & Social Review Summary
Project Number
9444
Company Name
Reval Hotel Group JSC
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 14, 1999
Signed : Dec 20, 1999
Invested : Jan 31, 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: REVAL HOTEL GROUP
Region: Central and Southern Europe
Sector: Hotels and Tourism
Project No: 009444
1. The project is the first phase of expansion, strategic development, and financial restructuring of Reval Hotel Group, an Estonian hotel management company. Reval is a leading hotel operator in Tallinn, Estonia with three hotels under management (a total of 754 rooms). The first phase focuses on strengthening Reval’s position in the Tallinn hotel market by widening its range of products and consolidating the ownership of the main hotels currently under Reval’s management into the Group''s corporate structure. A planned second phase would focus on a regional expansion of Reval’s operations.
2. Reval has been involved in the Tallinn hotels since the early 1990’s, and has renovated and modernized the three properties currently under management. Hotel Olumpia (a 405 room full service business hotel) is 100% owned by the Group (real estate is leased from the Government but is to be privatized as a part of the proposed project), while Central Hotel (a 229 room full service mid-scale hotel) is 20% owned. The Park Hotel and Casino (a 120 room full service mid-scale hotel) is operated under a management contract with no Reval ownership. The proposed project includes the construction of Express Hotel (a 166 room limited service budget hotel close to the passenger terminal in the port of Tallinn). At project completion, the building and land of Hotel Olumpia will have been privatized by Reval.
3. 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;
· 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.
4. Reval management will ensure that the Group’s construction and operating practices comply with industry norms, local requirements, and World Bank policies and guidelines. The Group’s director of Acquisitions and Development will, in conjunction with other duties, be responsible for developing and overseeing Reval’s environmental management program and its implementation in each hotel. The land of existing hotels and underground buildings have been researched to disclose impairments such as past site contamination; no problems were found. Reval will undertake appropriate environmental reviews, such as environmental audits, for any new land acquisition.
5. The company’s hotels will be connected to city water supply and sewerage systems. IFC requires that for projects discharging to a municipal sewage system, the treatment plant must have sufficient capacity to take effluent flow from the project, and the treated effluent from the municipal plant must meet local regulations. Reval has contacted the municipal sanitation authorities in Tallinn and confirmed that local standards are met by the municipal system. The company will conduct a similar evaluation for future projects.
6. 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 are and will be CFC-free where ever possible. The municipality provides electric power and natural gas, and heating is by a central thermal system.
7. Reval has commissioned an independent audit of the as-built/operating condition of the Hotel Olumpia, Central Hotel, and Park Hotel and project designs for the Express Hotel to assess compliance with World Bank guidelines for fire protection and life safety. The company 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. For the managed property (Park Hotel), Reval will use its best commercial efforts to secure the needed funding from the property owner in order to install the recommended fire protection and life safety improvements. IFC will require that Reval give due regard to fire protection and life safety aspects of properties when negotiating hotel and resort management contracts in the future.
8. Employee training in fire safety and health and safety practices is conducted for all new employees in the first days of employment. Employees’ health and safety skills are evaluated as part of a performance appraisal at the end of the four month probation period. Departmental fire safety and security training is provided every six months and first aid training is provided for all staff once a year. These programs will be updated to incorporate the findings of the fire protection and life safety audit, and will be extended to any new hotels.
9. 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.
10. IFC will monitor Reval''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
Related SII
