AEF Blue Bay Tours Limited

completed

Environmental Review Summary (ERS)Project Name AEF-TANZANIA: Bluebay Co. Ltd. Region Sub-Saharan Africa Sector Hotels and ResortsProject No. 008394 November 6, 19971. This project involves the construction of a 125 room four star beach resort on the east coast of Zanzibar at Kiwengwa. The sponsors will purchase and substantially upgrade an incomplete hotel structure. Expansion and construction plans entail the addition of a reception, lounge, restaurants, kitchens, stores, and staff housing. Total project cost is estimated at US$5.5 million of which AEF has been approached to provide a loan of US$1.5 million.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 this project consisted of the appraisal of technical and environmental information submitted by the project sponsor and completed by IFC’s Environment Department staff. The key environmental, health and safety issues considered in this project include:· sewage treatment and disposal;· liquid and solid waste disposal;· power and water supply;· construction materials supply;· CFCs;· fire safety measures; and· employee training and general safety.The sponsor has presented information 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. The project site is located along a beach zoned for tourism development by Zanzibari authorities. There are hotels on both sides of the site and, as stated, the project involves renovation and expansion of an existing, non-operational, hotel. There are no other economic activities or land uses currently on site. There is a public right of way passing through the site that runs parallel to the beach, passing through other neighboring hotels, which is linked to neighboring villages. In consultation with the local communities, local authorities, and other hotels, this route will be relocated to link with the existing main road at the rear of the project site. This would not result in any loss of access or result in negative impacts as the existing road at the rear, links the same hotels and villages, and is majority a tarmac road thus reducing erosion near the beach.4. There are coral reefs about 1 km offshore however these will not be directly impacted by operations. Setback laws require no construction onshore within 30 m of the high water mark, the nearest structures the project entails are 35 m back. Sewage and liquid waste which poses the biggest risk to the marine environment will be treated by an onsite bio-digestor. This will be located away from the beach area to the rear of the property and will treat waste from all point sources, with kitchen effluent passing through a grease trap. The equipment will treat sewage and effluent to a quality of BOD < 20 mg/l and TSS < 30 mg /l. Inn order to conserve water, treated effluent will be used for irrigation. The bio-digestor uses use a Managed Flow system which is efficient at reducing hydro carbon based cleaning and pharmaceutical agents. In efforts to reduce water, energy, and detergent consumption the sponsors will also provide notices in guestrooms that linens will only be changed on a daily basis upon request.5. All solid waste is non-hazardous, requiring no special handling, and will be disposed of at the nearest approved municipal landfill, about 12 km from the site. Power will be supplied by onsite generators supplied by a Dutch supplier. Generators will meet EC emission standards and will be housed to control ambient noise levels. Diesel storage tanks , which will likely be installed by Agip Ltd., will be provided with secondary containment structures, located in a fenced area, several hundred meters from the beach. LPG will be used in the kitchens, however as it is not available in bulk, only small 20-40 l tanks will be used.6. Water for the project will be sourced from a spring in a nearby cave. The Water Department indicated that sufficient reserves, based on Hydrological studies, exist and that rainwater replenishes the aquifer. Despite Zanzibari water authorities dedicating the spring (in the cave) adjacent to the site for the sole use of hotels at Kiwengwa; the sponsor has committed to assist local communities, as appropriate and in coordination with the Water Department, in sourcing water if future shortages affect communities in the neighboring villages. Water quality testing will be completed by an independent laboratory in Kenya, and appropriate treatment systems will b implemented in order to ensure a safe potable supply.7. Project construction materials will be sourced from commercial suppliers in Zanzibar Town. Aggregates will be obtained from Government operated quarries. The transportation of construction workers to the site on a daily basis, and the priority that the sponsor have committed to give to hiring of casual labor from local communities will eliminate the need for a construction camp. Once staff housing is completed a limited number of construction staff will live in these quarters on site until construction is complete, these structures will be connected to the hotel infrastructure (e.g., bio-digestor, power, water supply etc.). The sponsor also commits to assist operations staff and construction staff, as necessary, in avoiding the use of fuelwood for non-duty cooking by making alternative fuels available on site (e.g., such as kerosene).8. With regard to fire safety the sponsors are having design plans reviewed by independent experts in order to ensure that the project will be designed to comply with the applicable World Bank fire safety guidelines. Written certification from the project architects that the hotel is being appropriately design to ensure compliance will be a condition of disbursement of IFC’s loan. 9. The sponsors will also implement comprehensive safety training for all staff. This training will include general safety, fire safety, emergency response procedures, and safety and environmental issues associated with marine activities. All cold storage and ac equipment will be CFC-free10. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Blue Bay and by conducting periodic supervisions.11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Tanzania requirements, and World Bank policies, and environmental, health and safety guidelines.L:\WPEU\LB\AEF\TANZANIA\BLUEBAY.ERSNovember 6, 1997 10:53 AM