AEF A&K Botswana

completed

Summary Of Project Information (SPI)Project Name:Botswana - A& K Botswana t/a Piajio LodgeRegion:Sub-Saharan AfricaSector:Hotels and tourismProject No.:009608Projected BoardDate:June 30, 1999Company Name:Abercrombie and Kent (Botswana) Ltd.Technical Partner and/or Major Shareholders: A & K (Botswana) Ltd is 100% owned by Abercrombie and Kent Luxembourg SA. It is managed by A & K (South Africa) Ltd which is the lead company of the A&K Group in Southern AfricaProject cost including proposed IFC investment: Project Cost is estimated at US$1,650,000. IFC is asked to lend US$817,000.Location of project and description of site: Piajio Lodge is being built on a 3 ha. Site on the West Side of Chiefs Island in the Moremi Game Reserve, which is in the heart of the Okavango delta.Description of company and purpose of project: A&K (Botswana) Ltd is a company which will own and manage the A&K Group’s two lodges in Botswana. In early 1998 A&K Botswana bought the 16-bed Chilwero Lodge at Chobe National park. It has now been granted a 15 year concession on the land at Piajio and has agreed with the Authorities to build a 24-bed lodge there. A&K Botswana is already selling around 15,000 bed nights at other lodges in the Okavango Delta. This project will enable it to offer a product of its own.Environmental category and issues: This is a Category B project according to IFC''s environmental review procedure. Key environmental health and safety issues that were analyzed include site selection criteria and land lease arrangements with Government; distribution and administration of fees, rent, lease payments to tribal and other authorities; compliance with all relevant laws and regulations of the Botswana Department of Wildlife and National Parks; source of water and power including fuel storage, if applicable; recycling and disposal of solid wastes; disposal of liquid wastes including grease, waste oils, and sewage; impacts of construction and operation on the Okavango ecosystem, including access of local wildlife populations to the delta; impacts on the surrounding area of auxiliary activities such as game viewing and other activities; impacts on vegetation and wildlife of infrastructure, including game trails, roads, staff housing, and airstrip if applicable; potential impacts on local communities; public consultation with all interested or affected parties; health and safety issues pertaining to game walks, boating and other recreation activities; use of CFC-free cold storage; employee training, health and safety; and fire protection, life safety, and emergency response measures. As part of process of tendering for the site, A&K was required to submit a detailed project proposal, including an environmental impact summary and management program for the project. These documents included detailed plans for avoiding or mitigating negative environmental impacts, ensuring minimal use of water resources, preventing any unnecessary disruption to or destruction of vegetation, and ensuring compliance with the environmental management requirements of the DWNP. In addition, A&K has commissioned an independent environmental management plan for construction and operation of the lodge. IFC has reviewed the environmental issues summary of A&K’s tender documents, as well as the preliminary environmental management plan for the project. In addition, IFC reviewed the Government’s Guidelines for Tender for the site, and all relevant regulations for tourism ventures established by the DWNP and Land Board. The sponsors have agreed to abide by all Government requirements; to implement all of the recommendations made in the environmental management plan, designed to avoid or mitigate potential negative environmental impacts; and to comply with all relevant World Bank Group policies and guidelines. Details of the proposed operating procedures and mitigation measures are provided in the Environmental Review Summary (ERS) for the project, which will be available from the InfoShop on or about May 24, 1999.The Environmental Review Summary is available from the InfoShop.Host country location of environmental documents:IFC office, Hyde Park, JohannesburgDate SPI sent to InfoShop:“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC''s activities and should not be construed as presuming the outcome of IFC Board consideration”.For additional Information contact: Corporate Relations Unit –Telephone: (202) 473-7711Facsimile: (202) 974-4384(Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).