PROJECT

Projects

Environmental & Social Review Summary

Project Number

9617

Company Name

Meru Park Adventure Limited

Date ESRS Disclosed

Feb 5, 2010

Country

Kenya

Region

Africa

Last Updated Date

Jan 2, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 24, 1999
Signed : Aug 18, 1999
Invested : Dec 27, 1999

Sector

Resort Hotel (Including Lodges)

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Africa

Project Description

- 5 - May 20, 1999

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 AEF-KENYA: Leopard Rock Lodge

Region Sub-Saharan Africa

Sector Tourism

Project No. 9617


1. This project involves the rehabilitation and upgrading of Leopard Rock Lodge (LRL) located in Meru National Park (MNP) into a 60 bed 3-4 Star lodge aimed at attracting the medium to upper end of the tourist market. The lodge, which will be located at an existing site along the Murera River, will consist of 15 double room cottages, central facilities, including a lounge, reception, dining hall, kitchen, museum and swimming pool. Staff accommodation and a Park Ranger Station will also be built as part of the project. The project site, which is being leased from the Nyambene County Council (NCC).

MNP experienced a steady decline in tourist arrivals in the 1980s resulting in closing of all lodges in the park (including LRL in 1996). Revenues dropped curtailing the Kenya Wildlife Service’s (KWS) ability to effectively manage the Park. Under the new KWS management, the park has been given top priority as a tourist destination. Park security and infrastructure have now been greatly improved. The LRL will be leased for 25 years to the sponsors, who have undertaken to redevelop it. On completion it will be one of the few lodges in MNP offering high quality accommodation services and is expected to be incorporated in the Kenya Northern Tourist Circuit (which includes Samburu and Aberdare National Parks). It is anticipated that this project will result in significant environmental benefits, enhance KWS’s ability to manage MNP and bring benefits to local communities through social projects funded by revenue earned by the NCC.

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, the EIA consultant and KWS. The following potential environmental, health and safety impacts of the project were analyzed:

· compliance with KWS regulations;
· MNP Management Plan;
· facilities site selection criteria
· land lease arrangements;
· impacts on wildlife and the Murera River;
· local communities;
· public consultation;
· water and power supply;
· solid waste disposal;
· liquid waste disposal;
· staff and guest safety; and
· fire protection.

While this is a category B project, due to the project’s location in a National Park, IFC required completion of an independent focussed EIA. This EIA was completed by the African Biodiversity Institute, Nairobi, Kenya, and included public consultation with key stakeholders (including local communities, NCC, KWS authorities, MNP Warden, and NGOs) and compilation of an Environmental Action Plan (EAP). A concise summary of the key EIA, Public Consultation, and EAP issues is provided below. Additional information provided by the sponsor and KWS has also been included. The sponsor has committed to implement all recommendations made in the EIA and the EAP.

3. KWS Regulations – KWS has completed a site visit and review of LRL’s plans and has approved the project. LRL has committed to follow all KWS requirements as outlined below. KWS has made MNP a top priority for re-development and have recently implemented security and infrastructure improvements in MNP.

4. MNP Management – A specific management plan for MNP does not exist. Rather a number of different regulations and initiatives are governing KWS’s management of the revitalization of the park. These include the following: KWS Policy Framework and Development Programme (1991-1996); Draft Physical Planning and Environmental Guidelines for Facilities Development in Protected Areas; National Tourism Master Plan (1996); infrastructure and security improvements (roads, ranger stations, and aerial patrols); nature trail establishment; staff training in visitor handling; development of the adjacent Kora National Park and Bisanadi and Mwingi National Reserves. The World Bank is also funding roads and park infrastructure improvements (e.g., MNP Headquarters rehabilitation and expansion). Given the decline in MNP, as outlined above, basic improvements need to be made and investment needs to be attracted to the park as a first step otherwise revenues to sustain park management will not be available. A formal Management Plan appropriate for the Park and adjacent buffer areas, while never static, will hopefully be developed over the net few years. For it’s part LRL have committed, as described in the EIA, to assist KWS in a number of areas. A permanent Ranger Station is being built at the site (at LRL’s expense) and LRL have employed a former KWS warden/conservator as a Public Relations Officer and Resident Ecologist. In addition, LRL intend to assist ongoing KWS initiatives, including: local population education; assisting in park regulations enforcement; infrastructure improvements; diversifying game viewing activities (e.g., bird watching, nature walks); and encouraging local employment and handicraft and food supplies for tourism.

5. Facilities Site Selection – The LRL site is located on the site of an existing old lodge which is being dismantled. The site was also the location of one of Joy and George Adamson early camps. The site, which is a 40 acre plot owned by the NCC, has therefore had a human presence for about 40 years. It is thus preferable to use an existing sight, one which wildlife has likely already somewhat adapted around. The site is therefore deemed acceptable, and lodge development is as per KWS management objectives. KWS is promoting the development of other lodges and tented camps in MNP so as to offer the right mix and balance of tourism facilities.

LRL submitted drawings of the lodge layout and architectural design to KWS. Based on review of these plans KWS has determined that the location of cottages, central facilities, staff housing, soakaways, swimming pool, and car park are in compliance with setback requirements from the river, height requirements, and material use requirements. No structures will be built on the Murera and setback distances will be met as follows: building s (cottages/staff housing/offices etc.) 20 meters; swimming pool 35 meters; soak pits 30 meters; and septic tanks 30 meters. In addition, no structures are less than 15 meters apart so that wildlife movement and vegetation are not restricted. KWS also maintains strict requirements with respect to density of developments and car park size.

6. Wildlife and Murera River Impacts – Parallel with a decline in visitors to the MNP and the decline in the quality of facilities, wildlife numbers in the park have declined significantly over the last 5 years. As recently as 1996 16 elephant were poached in the park. While game numbers are low, diversity of game is high due to the park’s abundant water resources. The project, as mentioned, will result in a net benefit to wildlife as poaching and encroachment will reduce/be eliminated with KWS led, and LRL, as well as other private sector, supported, monitoring. Wildlife movements will not be manipulated through establishment of water holes, salt licks, or baiting. Any trails or roads created will be done as per, and with, KWS requirements and approval. Off road driving will not occur and guests and staff will be made aware of park driving regulations. LRL also do not intend to establish or assist in establishing balloon trips, as these encourage off road driving which is detrimental to soils and vegetation. No construction (temporary/permanent) will take place within 20 meters of the Murera River nor will any waste or other liquids be discharged to the river. Animals will be free to access the river, although due to the presence of humans, clearly some animals may not choose to visit the stretch of river (200-300 meters) which passes through the lodge area. However evaluation of historic wildlife presence in the area indicates that game movement patterns in the project vicinity have remained stable, even when the old lodge was in operation.

7. Land Lease Arrangements – The Leopard Rock site is owned by the NCC and has been leased to LRL for a period of 25 years. As established by NCC, LRL will pay NCC a monthly fixed rent as well as a levy based on lodge occupancy. The revenue that LRL will contribute to the NCC is substantial, forming approximately 15-20% of the NCC’s annual income. Based on consultation held with the NCC, they primarily intend to utilize revenue generated for education, school, and road projects for the districts in their county. Communities consulted in the two districts of NCC which border MNP stated they are confident that NCC will satisfactorily manage the County’s income and spend it on appropriate projects. Furthermore, while LRL, as tenants of NCC, have no leverage over NCC initiatives, LRL have committed to stay informed of community projects initiated by NCC and liaise with NCC and local communities to ensure projects which the community wants are given priority.

8. Local Communities – The key benefits to the local communities will be through provision of employment, a market for handicrafts and produce, and social projects developed by the NCC through revenue earned from LRL lease payments. It is the population bordering the MNP which need to realize a majority of these benefits as it is these communities who suffer most of the economic losses caused by wildlife. Compensation for these losses are set and made by KWS, a process entirely regulated by the Government. LRL will hire most of the construction and operations workforce from the neighboring Nyambene and Isiolo Counties. This will in turn bring a greater demand for goods and services in the local community that will indirectly stimulate other sectors such as retail services (e.g., restaurants, shops, handicrafts, vegetable supplies etc.). There is also, as the EIA points out, the potential for negative impacts resulting from increased employment and cash in the local economy. This relates to sexually transmitted diseases and associated prostitution, and substance abuse (e.g., alcohol). LRL have therefore committed to specifically devote resources towards providing employees and the local population with free condoms and to establish a public health education program. The focus area of this service will be the MNP Murera Gate area where there is growing retail development. The public health education programme will be managed by LRL in co-ordination with KWS and the Ministry of Health.

9. Public Consultation – As part of the EIA public consultation, meetings were held with KWS, local communities bordering the park, the NCC, Isiolo District Tourism Board, Boran Cultural Center, and the East African Wildlife Society. These meetings indicate broad-based support for the project. In conducting the consultation with local communities, NCC and KWS, impacts and mitigation measures were discussed and people’s opinion incorporated into the EIA. In summary, no stakeholders are opposed to the project or any aspect of the project. All see the project as bringing benefits. Clearly there are benefits which the communities are anticipating, and which LRL has committed to meet. This primarily relates to provision of employment to communities who live immediately adjacent to the park (Kina and Kiutine communities) through the life of the project, through jobs such as waiters, security guards etc., and support to initiatives such as establishment of cultural centers to attract tourists. IFC will require that LRL prioritize hiring members of communities who live immediately adjacent to the park, and provide training to individuals from these communities so they are equipped to work in the lodge in various capacities.

10. Water and Power Supply – Power to the lodge, for guests and staff, will be provided through a combination of solar, LPG gas, and diesel generator. Hot water will be provided by solar based units. Electric lighting will be powered by a 60kva generator that will be housed to reduce noise levels, and fuel storage associated with this generator will be provided with secondary containment. LPG gas cookers will be used for all cooking, this will eliminate the use of firewood, particularly in the staff quarters.

Water supply for the lodge will be, as approved by KWS, from the Murera River. One of the key features of MNP is its abundant year round water supply. MNP has 15 permanent rivers and streams as well as several swamps, all of which maintain year round flows. Water will be pumped from the Murera using a silent water propelled pump (Bleake Hydrum Pump), treated through a system of de silting and chlorination and gravity fed to the lodge. Drinking water for staff will be filtered and boiled, and for guests bottled water will be used. Due to the small size of the lodge impacts on wildlife and aquatic life as a result of extraction are negligible. In addition downstream human users will not be affected as the Murera is one of many tributaries which feed the main rivers in the MNP which in turn feed the Tana River.

11. Solid Waste – Handling of solid waste will follow a comprehensive system involving separating organic and inorganic waste and providing information to guests and staff on waste disposal at the lodge and on game drives. Inorganic waste will be collected and securely stored and periodically disposed of at the Kiambene Council dumpsite. Organics will be incinerated on site. Incinerators and ash disposal pits will be designed and located as per KWS requirements. These requirements are designed to prevent scavenger animals, such as baboon and hyena, from eating/disturbing the waste, which poses unsafe and unhealthy conditions for wildlife and humans.

12. Liquid Waste – Liquid waste from all point sources will be disposed of via septic tanks and soak pits. As mentioned above, these will be located a minimum of 30 meters from the Murera River. Grease traps will be installed at the kitchen, these will be emptied regularly and disposed of at the Kiambene dumpsite. Due to the size of the lodge and septic tanks, it is not expected that the septic tanks will require solids removal for 10-15 years. However LRL will closely monitor septic tank levels and have arranged that the Meru Municipal Council will dispose of the septic solids at the Gakoromine Sewage Works.

13. Staff and Guest Safety – Construction and operations staff will be sensitized to the risks associated with the presence of wildlife and how risks can be minimized. Walking after dark outside the lodge area will be prohibited. During game drives LRL will follow all KWS requirements with respect to vehicle approach distance, speed, and game encirclement range. Tourists will always be accompanied by an experienced guide, and at times by an armed ranger. First aid services will be available on site.

14. Fire Protection – The sponsors engaged the services of an engineering firm and a fire equipment supply firm to advise on necessary installations to meet local, and IFC fire safety requirements for the proposed project structures. Installations will include portable dry powder, water and CO2 extinguishers, smoke detectors, and a hose reel system connected to a water tank (and capable of being connected to the swimming pool and the river).

15. This ERS will be translated into Kiswahili and made available to local people through the NCC and respective local Chiefs/Leaders. In addition a copy of the EIA and EAP will be provided to the NCC and KWS.

16. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that LRL proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.

17. 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 LRL and by conducting periodic supervision.

Environmental and Social Mitigation Measures

Broad Community Support