Identifier
Created
Classification
Origin
06LUSAKA1591
2006-11-17 07:29:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Lusaka
Cable title:
Proposed Development Riles Conservationists
how-toVZCZCXRO1846 RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN DE RUEHLS #1591/01 3210729 ZNR UUUUU ZZH R 170729Z NOV 06 FM AMEMBASSY LUSAKA TO RUEHC/SECSTATE WASHDC 3541 INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY RUEHFR/AMEMBASSY PARIS 0088
UNCLAS SECTION 01 OF 02 LUSAKA 001591
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: SENV EINV ZA
SUBJECT: Proposed Development Riles Conservationists
Ref: A: Gaborone 1453; B: Gaborone 1446
UNCLAS SECTION 01 OF 02 LUSAKA 001591
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: SENV EINV ZA
SUBJECT: Proposed Development Riles Conservationists
Ref: A: Gaborone 1453; B: Gaborone 1446
1. (SBU) Summary: A controversial, recently-published Environmental
Impact Assessment (EIA) recommends approval of plans to develop a
550 acre site in Mosi-Oa-Tunya National Park. The project
developer, Legacy Holdings Zambia Limited (Legacy Holdings, funded
the EIA, which must be approved by the Environmental Council of
Zambia (ECZ). The ECZ is currently soliciting public comments on
the EIA. Local traditional leaders favor the development, but
environmental groups have threatened to seek an injunction against
Legacy should the ECZ approve the plan and allow the project to move
forward. A court challenge would stand as an important test for the
environmental movement and judicial independence in Zambia. End
Summary.
Proposed Development
--------------
2. (SBU) A recently-released Environmental Impact Assessment (EIA)
recommends for approval a proposal by Legacy Holdings (a local joint
venture with the South Africa-based Legacy International Group) to
build a large resort and conference center in Mosi-Oa-Tunya National
Park. The planned USD 200 million "Mosi-Oa-Tunya Hotel and Country
Club Estate Project" will sit on a 550 acre site in the national
park and will include two five-star hotels, an 18-hole golf course,
a conference center and a marina on the Zambezi River above Victoria
Falls. Legacy predicts that the project will attract large numbers
of tourists to Livingstone, resulting in new jobs and economic
growth for the region. The Environmental Council of Zambia is
taking public comments on the EIA, which was funded by Legacy and
prepared in accordance with terms of reference approved by the
Council. The comments will factor into the ECZ decision whether to
approve the EIA, available on the internet at
www.necz.org.zm/news/comments/eis-reports/leg acy.htm
Conservationists Critical
--------------
3. (SBU) The proposed project has drawn criticism from local
environmental and tourism groups. A principal concern is that the
project, which transects the national park, will block an important
elephant migration corridor and will threaten the planned
Kavango-Zambezi (KAZA) transfrontier conservation area (ref A).
Critics also contend that the project will jeopardize the UNESCO
World Heritage status of Victoria Falls, which is also located
within the national park. Zambian media have reported that UNESCO
is concerned that Legacy and the Zambian government are violating
protocols for the management of the world heritage site. UNESCO
reportedly threatened to deregister the site should the project move
forward.
4. (SBU) Several environmental and tourism groups are considering
filing a class action lawsuit to enjoin Legacy Holdings from
pursuing the project, should the ECZ approve the EIA. The groups
claim that the ECZ-approved terms of reference for the EIA violate
Zambian environmental protection laws. Conservationists further
claim that the plans for the project conflict with the Zambian
Wildlife Authority (ZAWA) management plan, which calls for low
density development in the area where Legacy seeks to build. In
meetings with Regional Environmental Hub Officer (REHO) and Poloff
(Ref B),Wildlife and Conservation Society of Zambia President Adam
Pope asserted that Legacy Holdings pressed the Zambian Wildlife
Authority (ZAWA) to bend rules in order to get approval for its
plan. Because ZAWA does not receive sufficient funding in the GRZ
budget, Pope said that the agency has a conflict of interest when it
comes to approving projects that have the potential to provide it
with significant revenue.
Local Chiefs on Board
--------------
5. (SBU) Despite the concerns voiced by conservationists,
traditional leaders in the area say that they are more concerned
about employment opportunities for their subjects than environmental
issues. Commenting on the elephant corridor, Senior Chief Mukuni
was reported to have said he did not want the elephants passing
through his chiefdom, which includes the site for the Legacy
project, because "they are destroying our crops and killing our
people." Another local leader, Chief Musokotwane, said that Legacy
had signed an agreement to employ 1,000 of his subjects.
Musokotwane added that Legacy had signed similar agreements with
Chief Mukuni and Chief Sekute, another local chief.
Legacy Response
--------------
6. (SBU) J.J. Sikazwe, the Chairman of Legacy Holdings Zambia,
confirmed to Poloff that Legacy Holdings agreed to pay ZAWA USD 9
million as part of a Tourism Concession Agreement (TCA) to develop
the site. Legacy will pay the money to ZAWA in installments after
construction begins, Sikazwe said, emphasizing that ZAWA has not
LUSAKA 00001591 002 OF 002
received any payments to date. In addition, Legacy will pay ZAWA as
much as two million USD a year in concession fees once the project
is operational.
7. (SBU) In a meeting with REHO and Poloff, Sikwaze denied that ZAWA
had been influenced by the Legacy money, noting that the area where
the company seeks to build was already earmarked for development.
There are currently several projects under construction, as well as
several completed hotels and resorts in the 66-square kilometer
park, Sikazwe added. Responding to concerns that the Legacy project
will jeopardize the status of Victoria Falls as a World Heritage
Site, Sikazwe noted that the resort will be several kilometers
upstream from the Falls. In contrast, Sikazwe pointed out that the
Sun International Hotel is located virtually at the edge of the
Victoria Falls. The National Heritage Conservation Commission
(NHCC) of Zambia has issued a statement in support of the Legacy
project, Sikazwe said, arguing that the development is necessary if
Livingstone is to become a global tourist destination.
Comment
--------------
8. (SBU) Beyond its environmental implications, the Legacy project
promises to challenge Zambian institutions charged with
environmental protection. Legacy Holdings Chairman Sikazwe's
assertion that money did not play a role in the ZAWA decision to
grant Legacy a tourism concession agreement does not seem plausible.
While there is no evidence that ZAWA contravened Zambian
environmental law, it is likely that the notoriously under-funded
agency was influenced by the revenue that will come with the
project's development. As a government agency and a stakeholder in
the project, ZAWA will exercise considerable influence over the ECZ
decision whether to approve the EIA and allow the project to move
forward. Also, the GRZ seems to support the project: former Vice
President Lupando Mwape laid a foundation stone in a ceremony at the
project site earlier this year. If environmental groups go to court
to block the Legacy project, should it be approved, and assuming the
case has merit, it will be an important test of judicial
independence in Zambia.
MARTINEZ
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: SENV EINV ZA
SUBJECT: Proposed Development Riles Conservationists
Ref: A: Gaborone 1453; B: Gaborone 1446
1. (SBU) Summary: A controversial, recently-published Environmental
Impact Assessment (EIA) recommends approval of plans to develop a
550 acre site in Mosi-Oa-Tunya National Park. The project
developer, Legacy Holdings Zambia Limited (Legacy Holdings, funded
the EIA, which must be approved by the Environmental Council of
Zambia (ECZ). The ECZ is currently soliciting public comments on
the EIA. Local traditional leaders favor the development, but
environmental groups have threatened to seek an injunction against
Legacy should the ECZ approve the plan and allow the project to move
forward. A court challenge would stand as an important test for the
environmental movement and judicial independence in Zambia. End
Summary.
Proposed Development
--------------
2. (SBU) A recently-released Environmental Impact Assessment (EIA)
recommends for approval a proposal by Legacy Holdings (a local joint
venture with the South Africa-based Legacy International Group) to
build a large resort and conference center in Mosi-Oa-Tunya National
Park. The planned USD 200 million "Mosi-Oa-Tunya Hotel and Country
Club Estate Project" will sit on a 550 acre site in the national
park and will include two five-star hotels, an 18-hole golf course,
a conference center and a marina on the Zambezi River above Victoria
Falls. Legacy predicts that the project will attract large numbers
of tourists to Livingstone, resulting in new jobs and economic
growth for the region. The Environmental Council of Zambia is
taking public comments on the EIA, which was funded by Legacy and
prepared in accordance with terms of reference approved by the
Council. The comments will factor into the ECZ decision whether to
approve the EIA, available on the internet at
www.necz.org.zm/news/comments/eis-reports/leg acy.htm
Conservationists Critical
--------------
3. (SBU) The proposed project has drawn criticism from local
environmental and tourism groups. A principal concern is that the
project, which transects the national park, will block an important
elephant migration corridor and will threaten the planned
Kavango-Zambezi (KAZA) transfrontier conservation area (ref A).
Critics also contend that the project will jeopardize the UNESCO
World Heritage status of Victoria Falls, which is also located
within the national park. Zambian media have reported that UNESCO
is concerned that Legacy and the Zambian government are violating
protocols for the management of the world heritage site. UNESCO
reportedly threatened to deregister the site should the project move
forward.
4. (SBU) Several environmental and tourism groups are considering
filing a class action lawsuit to enjoin Legacy Holdings from
pursuing the project, should the ECZ approve the EIA. The groups
claim that the ECZ-approved terms of reference for the EIA violate
Zambian environmental protection laws. Conservationists further
claim that the plans for the project conflict with the Zambian
Wildlife Authority (ZAWA) management plan, which calls for low
density development in the area where Legacy seeks to build. In
meetings with Regional Environmental Hub Officer (REHO) and Poloff
(Ref B),Wildlife and Conservation Society of Zambia President Adam
Pope asserted that Legacy Holdings pressed the Zambian Wildlife
Authority (ZAWA) to bend rules in order to get approval for its
plan. Because ZAWA does not receive sufficient funding in the GRZ
budget, Pope said that the agency has a conflict of interest when it
comes to approving projects that have the potential to provide it
with significant revenue.
Local Chiefs on Board
--------------
5. (SBU) Despite the concerns voiced by conservationists,
traditional leaders in the area say that they are more concerned
about employment opportunities for their subjects than environmental
issues. Commenting on the elephant corridor, Senior Chief Mukuni
was reported to have said he did not want the elephants passing
through his chiefdom, which includes the site for the Legacy
project, because "they are destroying our crops and killing our
people." Another local leader, Chief Musokotwane, said that Legacy
had signed an agreement to employ 1,000 of his subjects.
Musokotwane added that Legacy had signed similar agreements with
Chief Mukuni and Chief Sekute, another local chief.
Legacy Response
--------------
6. (SBU) J.J. Sikazwe, the Chairman of Legacy Holdings Zambia,
confirmed to Poloff that Legacy Holdings agreed to pay ZAWA USD 9
million as part of a Tourism Concession Agreement (TCA) to develop
the site. Legacy will pay the money to ZAWA in installments after
construction begins, Sikazwe said, emphasizing that ZAWA has not
LUSAKA 00001591 002 OF 002
received any payments to date. In addition, Legacy will pay ZAWA as
much as two million USD a year in concession fees once the project
is operational.
7. (SBU) In a meeting with REHO and Poloff, Sikwaze denied that ZAWA
had been influenced by the Legacy money, noting that the area where
the company seeks to build was already earmarked for development.
There are currently several projects under construction, as well as
several completed hotels and resorts in the 66-square kilometer
park, Sikazwe added. Responding to concerns that the Legacy project
will jeopardize the status of Victoria Falls as a World Heritage
Site, Sikazwe noted that the resort will be several kilometers
upstream from the Falls. In contrast, Sikazwe pointed out that the
Sun International Hotel is located virtually at the edge of the
Victoria Falls. The National Heritage Conservation Commission
(NHCC) of Zambia has issued a statement in support of the Legacy
project, Sikazwe said, arguing that the development is necessary if
Livingstone is to become a global tourist destination.
Comment
--------------
8. (SBU) Beyond its environmental implications, the Legacy project
promises to challenge Zambian institutions charged with
environmental protection. Legacy Holdings Chairman Sikazwe's
assertion that money did not play a role in the ZAWA decision to
grant Legacy a tourism concession agreement does not seem plausible.
While there is no evidence that ZAWA contravened Zambian
environmental law, it is likely that the notoriously under-funded
agency was influenced by the revenue that will come with the
project's development. As a government agency and a stakeholder in
the project, ZAWA will exercise considerable influence over the ECZ
decision whether to approve the EIA and allow the project to move
forward. Also, the GRZ seems to support the project: former Vice
President Lupando Mwape laid a foundation stone in a ceremony at the
project site earlier this year. If environmental groups go to court
to block the Legacy project, should it be approved, and assuming the
case has merit, it will be an important test of judicial
independence in Zambia.
MARTINEZ