Cabo Dorado MIA-R (english version)

EXECUTIVE SUMMARY CABO DORADO: MIA-R

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EXECUTIVE SUMMARY

Cabo Dorado is an investment project in the State of Baja California Sur; particularly in the area known as

“Cabo del Este” (East Cape) in the municipality of Los Cabos. This project aims to promote specialized

tourism, about cultural, educational, scientific, and sports exchanges between Mexico and the Asian continent

as well as to serve as a common ground for fostering business development. Therefore, area of 3770.5

hectares was allocated to the project.

Cabo Dorado is promoted by the company La Rivera Desarrollos BCS S. de R. L. de C.V., a joint venture

between American and Asian investors who are determined to promote a radically different concept from the

one of the project that was intended to be developed in the same location and which was placed at issue at the

time.

1. Objectives.

Cabo Dorado project is proposed as part of the consolidation of the development of the municipality, which is

considered for tourism purposes; therefore, the proposed project is defined by six elements that make up its

objectives:

1. Promote cultural tourism, and stablish it as a space for permanent cultural exchange through constant

exhibitions, events and festivals.

2. Provide health and wellness tourism through the convergence of knowledge on the subject.

3. Encourage technological and trade exchange tourism by creating spaces that facilitate physical activity.

4. Encourage education and research tourism thanks to the creation of a dynamic space dedicated to

education and research in multilateral issues.

5. Promote sports tourism by creating areas dedicated to high performance sports and specialized

knowledge exchange among professionals.

6. Making the best of the beach tourism potential.

As a support the objectives, Cabo Dorado considers the development of 9 hotels, temporary housing for

residents and visitors, and two golf courses. Likewise there will be infrastructure to support tourism and deem

it as high-quality recreation, health, and sports center and shopping area.

Cabo Dorado is a different and innovative project that, by design, regards the environment and the natural

resources as its building blocks. As a result, Cabo Dorado includes environmental elements in its designs, in

as much in its floor plan as in water availability; both elements are already defined and accepted thus allowing

an efficient and sustainable use of the area and the natural resources.


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2. Major works and / or activities.

Cabo Dorado must be understood as a real estate development that includes a set of works and activities

relating to the preparation and construction, operation and maintenance of various elements such as hotels,

condominiums, housing developments, restaurants, commercial facilities, general services and equipment,

golf courses and infrastructure for providing the services necessary for the viability of all of the

aforementioned, such as a work for water supply and wastewater plant, relocating an airstrip and the

consequent change of forest land use resulting from uprooting some of the elements in the project so as to

obtain a tourist land use, consistent with the policies development and land use in effect for the area.

In order to contextualize the elements of the project, it is proposed to assume a scale perspective:

Works of the Project: The Full Project

The proposal of the project is to develop it in 3,770.5 hectares, which includes a right of way of 7.11 hectares

that is necessary for the water supply network.

Works of the Project: Premises

The project proposes to allocate 1219.3 hectares to tourism land use (under the Ecological Zoning Plan of the

municipality of Los Cabos, Baja California Sur, POELMC), which is equivalent to 32.3% of the total area of

the property. The rest of the area of the property (67.7%) will be left as forest land with a preservation use

(under the POELMC); therefore, the current vegetation conditions and land use will be kept.


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Elements of the project

Element Surface

(hectares)

Way 128.5

9 public access to the beach 57

1 airfield 14.3

2 water tanks 0.9

Trade Center 2.2

Cultural and Educational Center 2.2

Technology Museum 1.0

Science and Research Center 1.4

High-Performance Sports Center 15.3

Wellness Center 18.7

Visitants and Transportation Center 4.3

Beach Club 2.2

Beach Club of the Wellness Center 2.1

School Campus 26.0

Wastewater Plant and General Services 8.4

Maintenance / General Services 14.3

Clinic/ General Services 2.5

Supply/General Services 1.6

Tree nursery 13.1

Green area (park) 30.0

Shops/Restaurants/Multi-family Residential Area 36.1

Hotels 168.1

Multi-family Residential Area 173.7

Single-family Residential Area 379.9

Gulf Course 3.9

Gulf Shop (Pro Shop) 0.4

Use for tourism 1,219.3

Preservation 2,551.2

Total area of the property 3,770.5

Figure: Distribution of the elements of the project.

Cabo Dorado is conceived as a space to house 3,770.5 hectares of estate, facilities for the development of

cultural activities such as dance, music, and visual arts, and hotel and residential facilities to support said

activities; beach clubs, golf courses, school campus, medical clinic and services infrastructure. Thus, the

construction of nine (9) hotels with large preservation areas between the units and well below the maximum

allowable occupation limits set in environmental regulation is also part of the project. As a result, only

1,219.3 hectares (32.3% of the total area of the estate) will be used for the development of all the works of the

project and the remaining 2, 551.2 hectares (67.7%) will be used for preservation purposes and will be kept in

natural conditions under a protection scheme proposed by the petitioner company of the project.

3. Area and/or Region Where It Is Located.

The Cabo Dorado project will be located in the municipality of Los Cabos, south of the village of La Ribera

(which is the Municipal Delegation), in an area of 3,770.5 hectares.


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The estate owned by Cabo Dorado is formed by 3 large areas or polygons, within which it is proposed to

implement the project in five phases encompassed as follows:

Polygon 1 (Encompasses Phase I, Phase II and Phase III) with a total area of 1,394.7 hectares, equivalent to

37%% of total area of the estate.

Polygon 2 (Encompasses Phase IV) with a total area of 619 hectares, equivalent to 16% of the estate.

Polygon 3 (Encompasses Phase V) with a total area of 1755.6 hectares, equivalent to 46% of the estate.

For the purposes of the project, the concept of Phases must not be understood in a chronological or temporary

manner, but as chapters of the project’s development. Each Phase is part of the set of elements that make up

the Cabo Dorado project.

The Regional Environmental System (SAR) where the project is located was divided into two main areas, a

land one and a marine one. Hydrological, terrestrial vegetation and land use, and administrative boundaries

(POELMC and Cabo Pulmo ANP) were the criteria used for the delineation of (land) SAR. The criteria used

in defining the marine SAR considered one kilometer offshore area adjacent to the SAR, surf, tide, and the

administrative area of the Cabo Pulmo National Park. Importantly, even when the marine environment was

Location


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taken into account, the project will not have any interference on the marine environment, for all his works will

be developed on land within the limits of federal maritime zone.

Six environmental units were demarcated as a result of the analysis and matching of the thematic detail

mapping and the results from the identification and assessment of environmental processes. It should be noted

that the description and analysis of the "Project Site" was carried out after the SAR; therefore, the

demarcation of Environmental Units (topographies) of the "Project Site" fully matches the environmental

elements that define the Regional Environmental System. In this way the environmental units are clearly

described and identified in geo-referenced site plans.

4. Incidence and/or Consistency with the Main Regulatory Instruments.

The context of legal provisions analyzed to establish the interference and/or legal consistency of the project

are the following:

Of Binding Nature and Applicable To the Project.

Political Constitution of the United Mexican States.

Regional Environmental System


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General Law of Ecological Equilibrium and Environmental Protection and its Regulation on

Environmental Impact Assessment.

National Water Law and its Regulations.

National Property Act and the Regulations for the use and exploitation of the territorial sea, waterways,

beaches, federal maritime zone and land reclamation.

General Law on Sustainable Forestry Development and its Regulation.

General Law for the Prevention and Integral Management of Wastes.

Program for the General Ecological Management of Lands

Plan of Land Use Regulation of the municipality of Los Cabos, Baja California Sur Mexican Official

Standards

Of Binding Nature, Not Applicable to the Project as They Regulate a Different Site From the Proposed

One.

Decree establishing the Protected Area with National Park status, Cabo Pulmo June the 6th

, 1995.

Program Management of the Protected Area with National Park status, Cabo Pulmo November the 13th

,

2009.

Convention on Wetlands of International Importance RAMSAR Site, Natural Protected Area Cabo

Pulmo.

Marine Ecological Program of the Gulf of California POEMGC (published in the Official Gazette of the

Federation on Friday, December the 15th

, 2006).

Regionalization Instruments, Non-Binding, Lacking Regulatory Nature.

Relevant Area for the Preservation of Birds-AICA

(CONABIO) Priority Hydrological Regions CONABIO

Priority Terrestrial Regions

CONABIO Priority Marine Regions

Mexico's National Commission for the Knowledge and Use of Biodiversity (CONABIO)

Analysis of gaps and omissions in the preservation of terrestrial biodiversity in Mexico: spaces and

species (The National Commission on Natural Protected Areas ) CONANP-CONABIO

Regarding the authorization for changing the Land Use of Forest Lands (CUSTF), with respect to the

conditions of use, development, change in land use from forest lands to tourism lands, impacts to the

biodiversity, the vegetation cover, the soil and the environmental services, all these elements were assessed in

due course and authorized by SEMARNAT through its Federal Delegation in the State of Baja California Sur,

under the provisions of the General Law of Sustainable Forestry Development, as set in the CUSTF. The

aforesaid conditions have been cleared and executed according to the procedure set in the LGDFS and its


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Regulations; therefore, these rights are valid and applicable to the estate in question and to any and all

projects submitted which are located in the authorized area. In view thereof, the project proposed to EIA

complies with the authorization of CUSTF and with the use from which the aforementioned authorization

arises. Therefore, CUSTF’s authorization is valid and enforceable and supports the rights acquired. Such

rights are legally protected by the provisions of the Constitution, as stated herein above.

Regarding the use and exploitation of water: the authorization issued by the National Water Commission,

which sets the volume for the exploitation and use of water found in the estate where the tourism project is

being developed, is valid by operation of law. Therefore, the authorization holds the rights protected by the

Constitution and is not subjected to interpretation or correction as the environmental and legal conditions that

gave rise to it remain unchanged to this date and that and the project to develop in this estate meets and does

not modify the conditions set in the authorization.

It is important to highlight that the use of water granted under concession to the owner does not threaten

the ecological balance of ecosystems or the access of other stakeholders to water, this based on the NOM-

011-CONAGUA-2000 and in the Update on Mean Annual Availability of Groundwater in Santiago Aquifer

(0320) State of Baja California Sur, as published in the Official Gazette of the Federation on August the 28th

,

2009 in what follows that the Aquifer from which the project will be supplied of water has no deficit, shows

availability for 4.15 million m3, considers concessions for use for 15.7 million m

3, and the Natural Dedicated

Discharge is guaranteed by a volume of 4.6 million m3. Since the concessions were granted to the owner in

1994 and 1996 and have been considered in the Update on Mean Annual Availability of Groundwater in

Santiago Aquifer (0320) State of Baja California Sur, as published in the Official Gazette of the Federation

on August the 28th

, 2009 in compliance with NOM-011-CONAGUA-2000.

The analysis done on linking planning instruments and applicable laws and regulations showed that the SAR

is in a context regulated and planned by said instruments, with “touristic” and “preservation” uses; therefore,

the development of the area was planned having this two basic criteria as guideposts. Moreover, in this

analysis it was determined that the project is compatible, as it conforms to the tourism and preservation land

use and as it complies with the occupancy limits set out in POELMC.

Regarding the Ecological Zoning Plan of the municipality of Los Cabos, Baja California Sur (POELMC)

published in the Official Gazette of the State of Baja California Sur on August the 31st, 1995, the proposed

project has an area of 3,770.5 hectares regulated by the POELMC, which classifies the territory of the

municipality into Environmental Management Units and grants an Environmental Policy and Land Use

Zoning to each one of them.

As stated hereinabove, the property covers an area of 3,770.5 hectares, of which 2,741.96 hectares (72.7% of

the total area) are located within the UGA T-13; 336.7 hectares (8.9% of the total area) are located within the

UGA T-14; and 691.8 hectares (18.3% of the total area) are located within the UGA T-19. POELMC sets

the following policies, land use and ecological criteria for UGA T-13, UGA T-14 and UGA T19:


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UGA Policy Land Use Zoning

T-13 Preservation Suitable for tourism with a gross density up to 10 rooms/hectare

and low-density and low environmental demand preservation

use.

T-14 Preservation Suitable for tourism with a gross density up to 10 room/hectare

and low-density and low environmental demand preservation

use.

T-19 Preservation Suitable for preservation and low density and low environmental

demand productive activities for Nature preservation and forest

use.

Moreover, it defines that the following ecological criteria will apply to each UGA:

Ecological criteria applicable to UGA T-13: A 1, B 1 to 5, C 1 to 4, D 1 to 2, K 18, E 1 to 4, F 1 to 4, F

6 and 8, I 1 to 22, J 1 to 6.

Ecological criteria applicable to UGA T-14: A 1, B 1 to 5, E 1 to 4, F 1 to 4, F 6 and 8, H 1, H 3 to 6,

I 1 to 22, J 1 to 6, K 19 to 23.

Ecological criteria applicable to UGA T-19: D 1 and D 2

In the portion of land located within the UGA T-13, the project includes the construction and operation of

infrastructure for tourism, with a total area of occupancy of 1,130.7 hectares (41.3% of the area of the state

located within the UGA T-13). Therefore the land use will change from forest land to tourism land under

UGA T-13, thus meeting the “tourism suitability” of the land use.

UGA Policy Land Use Suitability Applicable Ecological

Criteria

T-13 Preservation

Suitable for tourism with a gross density up to

10 rooms/hectare and low-density and low

environmental demand preservation use.

A-1

B 1-5

C 1-4

D 1-2

K18


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The tourist devoted area will have an installed capacity of 4,020 hotel rooms distributed in 8 hotels and 6,061

households (equivalent to 18,183 hotel rooms); which amounts to a gross density of 8.1 rooms/hectare. It is

important to mention that, given the area of 2,741.96 hectares of land spread over the UGA T-13, that portion

of the estate has a maximum installation potential of up to 27,419 hotel rooms; therefore, the project

complies with the gross density allowed "up to 10 rooms per hectare" for that UGA T-13 and shows a

lower density limit than the one set in POELMC.

In the fraction of land located within the UGA T-13, the project allocated 1,611.24 hectares (58.76% of the

area of land located within the UGA T-13) as Reserve with preservation purposes; thus, complying with the

land use foreseen for UGT T-13 regarding the “low density and low environmental demand

preservationist use."

The project is located in a property with a total area of 3,770.5 hectares, of which 336.7 hectares (8.9% of the

total area) are located within the UGA T-14. The following policy, land use zoning, and ecological criteria

correspond to UGA T-14:


Criteria

T-14 Preservation

Suitable for tourism with a gross density up to

10 rooms/hectare and low-density and low

environmental demand preservation use.

A-1

B 1-5

E 1-4

F 1-4, 6 and 8

I 1-22

J 1-6

K 19-23

Of the total land; 336.7 hectares are located within the UGA T-14 (8.9% of the total area of the property). In

the fraction of land located within the UGA T-14, the project includes the construction and operation of

infrastructure for tourism, with a total occupancy area of 88.6 hectares (26.3% of the area of land located

within the UGA T-14) in which the change in land use from forest land to tourism according to UGA T-14

zoning will be carried out; therefore, the project meets the land use purposes regarded as “suitable for

tourism”.

The tourist devoted area will have an installed capacity of 60 hotel rooms distributed in 1 hotel and 80

households (equivalent to 240 hotel rooms); which amounts to a gross density of 9 rooms/hectare. It is

important to mention that, given the area of 336.7 hectares of land spread over the UGA T-14, that portion of

the estate has a maximum facilities potential of up to 3,367 hotel rooms; therefore, the project complies


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with the gross density allowed "up to 10 rooms per hectare" for that UGA T-14 and shows a lower density

limit than the one set in POELMC.

In the fraction of land located within the UGA T-14, the project allocated 248.1 hectares (73.7% of the area of

land located within the UGA T-14) as Reserve with preservation purposes; thus, complying with the land

use foreseen for UGT T-14 regarding the “low density and low environmental demand preservationist

use."

The project is located in a property with a total area of 3,770.5 hectares, of which 691.8 hectares (18.3% of

the total area) are located within the UGA T-19. The following policy, land use zoning, and ecological criteria

correspond to UGA T-19:


Criteria

T-14 Preservation

Suitable for preservation and low density and

low environmental demand productive

activities for Nature preservation and forest

use.

D 1

D 2

In the fraction of land located within the UGA T-19, the project will allocate 691.8 hectares as Reserve

with free infrastructure preservation use, which fulfills land purposes for UGA T-19 regarding states

that are "Suitable for conservation and productive activities of low density and low demand on

environmental protection and forestry use."

In the fraction of land located within the UGA T-19 there is no real estate density.

After an analysis of all the binding and non-binding regulatory instruments mentioned hereinabove, it can be

said that the project complies with the applicable legal provisions.

5. Major environmental impacts.

The assessment of environmental impacts was conducted at "multi-scale" level with a focus on three scales;

each is focused on assessing in a context according to the different levels of complexity of the project. Thus,

the environmental impacts were identified and assessed considering interactions "Project at SAR scale",

"Environmental Components Project" and "Elements of the project-Environmental Components". Out of the

analysis carried out, adverse impacts were identified, in all three scales, but none significant. Beneficial

impacts were found in “Project at SAR scale" and "Environmental Components Project", which contributes to

the consolidation of the use of the land for tourism and preservation purposes as set in POELMC. Only in

"Project at SAR scale" were found accumulative beneficial and adverse impacts. In the current state of SAR,


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none of the identified impacts caused significant changes in the ecosystems and natural resources or in the

health, which could jeopardize the existence and development of man and other living beings and the

continuity of natural processes.

The adverse environmental impacts identified at "Project at SAR scale" are: a) Decrease in the width of

environments present in the SAR, caused by the use of the land for tourism purposes; b) Pressure on the

Administration of Natural Resources and Services due to the change of land use in the SAR, according to the

foreseen development policies; and c) Pressure on the Administration of Natural Resources and Services due

population growth (temporary and permanent residents) in the SAR according to the foreseen development

policies. The benefits resulting from the project development are: i) Consolidation of tourism and preservation

purposes under the PELMC for the UGS T-13 and T-14 and the preservation purpose of the UGA T-19; and

ii) Contribution to the consolidation of the development model provided by the government of Baja California

Sur.

The water used in the economic activities of the project will be treated and reused from the beginning of the

project, without discharges of wastewaters to the environment. This will be implemented through a

comprehensive strategy for the efficient use of water throughout its cycle, from the extraction and

transportation from the wells to the project site to the facilities were it will be used and up to its treatment and

reuse for watering and maintenance of the golf course and the green areas in the project; thus favoring

infiltration and improvement of micro climatic conditions in the project site. All this is shown in a water

availability program and a comprehensive hydrology and costal processes program where the strategies, lines

of actions and efficiency and efficacy measurement mechanisms are defined.

Aware of the magnitude of the project, besides a sustainable planning and design regarding water

consumption, power consumption is also a key element in the design; therefore, the use of solar power for

lighting all public areas and for supplying basic services in hotel, residential, and services facilities was also

part of the project, thereby obtaining less energy from the power supply network and reducing the ecological

footprint. The Asian investment group is leader in the development, use and implementation of clean energy

generation technologies, particularly solar power; therefore this element is project’s strength and ensures the

application of state-of-the-art technology and an efficient use of energy.

Like in any development project, the assessment of direct and indirect environmental impacts had allowed to

design a preventive, mitigation and compensation strategy that ensures the sustainability of the project’s site

without compromising the ecological balance of the area. In this sense, the removal of the vegetation cover,

as set in the authorization of the change of land use of forest lands, besides providing economic compensation

resources to the Mexican Forest Fund (under the General Law for the Development of Sustainable Forests),

implies the creation of a Germplasm Bank. Said bank will favor actions of reforestation and restoration of the

vegetal cover with endemic species of the site and will contribute to the federal, state and municipality

governments’ programs. Thus, the governments rest assured that they will have access to the endemic genetic


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material, through the Germplasm bank, which contributes to preserve the flora diversity of the area.

Regarding fauna: 67.7% of the total surface of the state was allocated to preservation purposes. Within that

area, a rescue and relocation program for wild animals will be in place so as to guarantee, by its

implementation and results assessment, the continuance of evolutionary processes of endemic fauna.

Another characteristic of the development of society is waste generation; therefore, the wastes management

and final disposal of residues is an inherent element of the project; thus, the design, construction and

operation of facilities for urban solid wastes management will be a joint commitment with the municipality, as

nowadays the service does not exist in the Cabo del Este area. In this way, not only Cabo Dorado will enjoy

the service, but also all the nearby towns, such as La Riviera and Cabo Pulmo, where wastes are either buried

or burned nowadays, with the corresponding negative impact on the environment.

In line with the climate change mitigation and adaptation commitments, Cabo Dorado has included in the

development a series of elements coherent with such mechanisms so as to reduce the carbon footprint. Firstly,

the buildings located in front of the coastal line, besides protecting and preserving the active coastal dune of

the beach (with a height of -2 meters above sea level), have set a construction height limit of +6 meters above

sea level for buildings with beach front. In order to do it, the models on the sea level increase in the next 50

years were taken into account, as well as the tidal waves in extreme cases. This measure allows the

preservation of ecological balance in the beach and in the sea front, as well as protects the population and

serves and climate change adaptation mechanism. Regarding air emissions: the project pretends to limit the

use of automobiles in the area by implementing an internal transportation system so as to reduce the use of

vehicles and favors the decrease of greenhouse gases. On this regard, the Asian investment group is a leader

in the development of public transportation projects and equipment, which facilitates access to state-of-the-art

technology and its use in the project.

The implementation of an exchange and training mechanism on development and research issues is an

strength of Cabo Dorado, who will be the means through which the youth population will have elements for

participating in educational and professional programs that are expected to be part of the project. This entails

the strengthening of business activities and increasing the quality of life of the population in the region. The

creation of the Investigation Center of the Gulf of California, as a mechanism for exchanging and developing

human resources is intended to strengthen the protection and preservation activities of the National Maritime

Park of Cabo Pulmo with environmental promotion and educative actions, development of investigation lines

and knowledge generation regarding this ecosystem and the numerous and valuable natural resources of the

Gulf of California and its islands.

6. Mitigation, Compensation or Restoration Measures.

The management of strategies for preventing and mitigating environmental impacts, through the proposed

Comprehensive Environmental Management System (SIGA), has two scopes. The first is as the planning area


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which is made up by three sub-systems providing information for “environmental strategies”, “environmental

actions” and “environmental indexes”. The second scope is the operation, which includes a “general

environmental compliance program” and 11 specific programs. The implementation of SIGA will prevent and

mitigate environmental impacts in the project while allow the planning, implementation, review, and

measurement of the activities carried out during the development of the project.


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7. Justification for Choosing the Site over Other Alternatives.

The project is located in an area that was assessed and defined under democratic and participative processes

for defining the development alternatives, as the State Development Plan, the POELMC and the set of

authorizations granted to the holder within the powers of other related authorities delimit the alternatives for

complying with the environmental policies of the POELMC and the tourist and preservation purposes for the

estate. Therefore, the site was the only alternative for developing the project.

Cabo Dorado is a project conceived as means to amalgamate the best of the cultures in the Pacific Rim, within

a sustainably planned and developed area, with a broad participation of local and regional population so as to

contribute to the sustainable development of Baja California Sur and Mexico, in an innovative development

scheme in harmony with the environment and the local population.

Documents

Cabo Dorado MIA-R (english version)