Makedonija Turist A.D. Grand Hotel

completed

Environmental Review Summary (ERS)Project Name FYR MACEDONIA: Grand HotelRegion EuropeSector Hotels and Resorts Project No. 007782 May 14, 19971. This project involves substantial refurbishment of the 169 room Grand Hotel located in Skopje. The hotel will, after renovation of all 169 rooms, the restaurants and casino, be an international standard three star hotel. The hotel has an excellent location in the city center along the Vardar River and is easily accessible by car.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 following key environmental health and safety issues were analyzed:· liquid effluent treatment and disposal;· solid waste disposal;· power and water supply;· CFCs;· employee safety training and emergency response; and· fire protection measures.The sponsor (Makedonija Turist AD) has submitted information outlining how the key issues listed above will be addressed. This information is summarized in the paragraphs that follow.3. Currently all of the hotel’s sewage and liquid wastes are discharged to the Skopje municipal sewage system. However this system is not functioning adequately and is not capable of handling/treating the hotel’s waste. Several multi-and bi-lateral aid agencies are proposing to support the upgrading of this system, however these are long term plans which are yet to be finalized and may take several years to implement. Accordingly the sponsor has confirmed that they will immediately install, as part of the current refurbishment activities, an in -house sewage and liquid waste treatment facility. This system will comply with World Bank guidelines, and will probably be a submerged aerated facility. This facility will treat waste from all point sources within the hotel; including sewage, grey water from kitchens and laundry, and dry cleaning waste.4. Solid waste from all point sources will be collected and disposed of by the municipality at designated sites. Waste such as bottles, cans and paper will be recycled.5. Water for the hotel operation will be supplied by the local water authority and will comply with drinking water WHO standards. Power will be supplied by the national grid. Fuel storage tanks associated with backup power supply will be provided with secondary containment structures.6. The sponsor has committed that all cold storage and central cooling systems will be CFC-free.7. All employees will be provided with the necessary safety training in proper work procedures and equipment handling methods. Training will include emergency response preparedness.8. The sponsors have committed to ensure that the hotel will be retrofitted to comply with all applicable World Bank fire safety guidelines. However, given the age of the building and the potential lack of structural compliance (in terms of number of exits, stair cases, means of egress etc.), the sponsor has committed to conduct, as a condition of disbursement of IFC’s loan, an independent fire safety audit of the structure and proposed renovation plans. This audit will identify necessary corrective action which the sponsor will fully implement.9. 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 FYR Macedonia requirements, and World Bank environmental, health and safety guidelines.10. IFC will monitor the fire safety audit process and Grand Hotel’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating annual environmental performance reports submitted by the sponsor along with the financial report to IFC and by conducting periodic site reviews during project supervision.L:\WPEU\LB\MACEDON\GRAND.ERS