Flamenco Bavaro

completed

- 3 - February 17, 1998International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name DOMINICAN REPUBLIC: Flamenco BavaroRegion Latin America and CaribbeanSector TourismProject No. 008766 February 17, 1998 1. This project involves the development of a 854 room resort on Playa Bavaro near Punta Cana on the east coast of the country. The plans include 18 low rise (3 floors) guest units, 7 restaurants, several bars, a village shopping area, swimming pools, tennis courts, and a dormitory to house a portion of the 700 employees.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, and the technical appraisal and site review completed by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed:· past and present land use;· sewage treatment and disposal;· liquid and solid waste disposal;· construction impacts;· direct and indirect impacts on coastal resources and habitats;· sustainable water supply;· power supply;· CFCs;· employee safety training and emergency response; and· fire protection measures.The information provided by Flamenco Bavaro about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow. As part of the environmental analysis for this project the sponsor completed a focussed environmental impact study.3. The project site is located in the tourist unit of Bavaro of the area of Macao Bavaro-Punta Cana. The site location has access to the beach and a mangrove area. The access road to the project site was built over a decade ago by the previous landowners. There are culverts and pipes under the road which maintain a flow regime that to date has not adversely affected mangroves on either side of the road. The sponsor will examine these pipes and replace them if necessary and monitor their condition throughout the life of the project.4. Sewage and wastewater (from laundry, kitchen and employee housing) will be treated in an on site wastewater treatment plant. The proposed wastewater treatment plant will consist of sand traps, anaerobic reactor, oxidation chamber, settlement tanks, sludge dewatering and chlorination. The dry sludge will be collected for final disposal at the sanitary landfill.5. Flamenco Bavaro is performing in conjunction with the Hotels Association of the area a study to identify a possible location for a sanitary landfill. It is expected that the landfill site will be located in an isolated area and away from residential areas. Solid waste from all point sources will be collected by independent contractors and disposed of at the landfill. The landfill will be managed and controlled by the Hotels Association. Waste such as bottles, paper and carton will be recycled. Construction of the proposed hotel will not commence until the location of the sanitary landfill has been identified and presented to IFC. The sponsor has also committed to disposed of all solid waste generated during construction and operation of the hotel at this landfill.6. During the construction phase the sponsor will minimize the generation of solid waste. The soil generated during excavation will be used to fill adjacent plots without affecting the ecosystem of the area. Due to the nature of the area for the proposed project erosion is not expected to occur. Construction materials such as timber will be imported and stone will be obtained from local existing private quarries. During the process of construction the sponsor will provide its employees with sleeping accommodations, and restaurants.7. There is no evidence that the proposed project site or the area surrounding it, is a turtle nesting area or possesses any other sensitive species/habitats. As mentioned, mangroves remain untouched and protected. 8. Hotels in the area currently obtain fresh water from the same aquifer, with a production capacity between 200 to 500 GPM. Flamenco Bavaro will drill two additional boreholes for a total of three with a capacity of no more than 100 GPM for each one. Flamenco Bavaro and the Hotel Association will jointly perform an evaluation of the aquifer that supplies water to the area. This evaluation should quantify the following information: surface catchment area of the property, average annual rainfall of the area, total withdrawals from all sources, current depth of the aquifer, completion of pump tests and identification of aquifer recovery rate to stable groundwater level. 9. Power supply for most of the hotel services will be obtained by stand-by generators, however, the sponsor will also obtain some of its power supply from CEPM. The fuel supply for the boilers and generators is provided by Shell (gas-oil and LPG). The fuel storage tanks comply with all the safety norms. The sponsor has committed to provide secondary containment for the storage tank in the area of the project. 10. The sponsor has committed that all cold storage and central cooling systems will be CFC-free.11. All employees will be provided with the necessary safety training and work procedures. The training programs will include first aid, fire safety and prevention, and proper management and handling of food. The training programs will be coordinated with the Dominican Republic Red Cross and the fire department. An independent fire safety audit was conducted and the sponsor has committed to implement all recommended mitigation measures. The facilities will be designed to meet National Fire Protection Association (NFPA) standards including: sprinkler systems, fire fighting equipment, smoke detectors, an integrated alarm system, and emergency lighting.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Flamenco Bavaro proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.13. 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 Flamenco Bavaro and by conducting periodic supervision.L:\WPEU\LB\DOMREP\FLAMENCO.ERSFebruary 20, 1998 4:22 PM