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MDG Carbon Project Idea Note
MDG
Carbon 304 East 45th Street
New York, 10017 New York
logo 001 212 906 6329 Project Name:_____________
Matt.Spannagle@UNDP.org Project No.:_____________
MDG CARBON PROJECT IDEA NOTE
For office internal use only
Project Name: Okilu Hydro Project China
Project No:__________03________________________________
Part A: Project proponent information and ownership specification
A.1. Project proponent information
A.1.1 Name of project Provide the full legal name of entity. The project proponent is the organization/company
proponent etc. undertaking the application for project registration.
Zhenfu Oyunesh Industry Development Co., Ltd
A.1.2 Relationship to project Describe the project proponent‟s relationship with the project (e.g. owner, broker,
manager, consultant) as well as the type of entity (bank, consultancy etc.)
Zhenfu Oyunesh Industry Development Co., Ltd is responsible for the construction and investment of
the proposed project. This is a civilian-run enterprise in the field of hydroelectric projects development.
A.1.3 Project proponent Provide the full name and contact information (address, telephone, fax, email, &
representative website (as applicable)) of the single contact person for MDG Carbon who is
responsible for providing all documentation and information.
Name: Li Zhen
Address: Zhujo Town in Nijz County, Daodgung Province
A.2. Project stakeholder information
A.2.1 Stakeholder(s) with Identify key stakeholders that are expected to have a legal or financial interest in the
financial or legal interest project. These include project developers/ owners, investors, landholders,
(Person or Entity) governments, municipalities etc. describe their interest in the project (<250 words).
1、 Zhenfu Oyunesh Industry Development Co., Ltd, which is the owner and investor of the
proposed project, hopes that they can get profits from the proposed project and also help local
economy development
2、 Peking Tyangse Rive Internatinal Engineering Consultation Ltd, which is the consultant on CDM
development.
3、 The local governments include Nijz County Water Bureau in Daodgung Province, Development
and Reformation Commission of Nijz County in Daodgung Province,Nijz County Environment
Protection Bureau in Daodgung Province, etc. The local governments hope that the proposed
project can boost the sustainable development of Nijz County of Daodgung Province.
4、 The local residents in the Okilu Village Zhujo Town Nijz County around the proposed project.
They hope the proposed project can give them more working chances and improve their living
conditions, for example they can use the electricity.
A.2.2 Ownership For parties with a legal and/or financial interest in the project, provide a summary on
how project costs and ownership will be apportioned. Describe how clear and
undisputed ownership of any GHG reductions will be demonstrated. Include any other
relevant issues relating to ownership of the project (less than 250 words).
The proposed project is owned by Zhenfu OyuneshIndustry Development Co., Ltd, and the project
costs are paid by the company. The GHG emission reductions are owned by Zhenfu OyuneshIndustry
Development Co., Ltd clearly and undisputedly.
A.2.3 Stakeholder(s) with Identify the main stakeholders with interest in or contribution to the environmental and
environmental or socio- socio-economic benefits provided by the project. List government and/or other
economic interest organizations, institutions or individuals (local, regional, national, international) that will
participate in or contribute to the project‟s environment/development benefits
The local governments such as Nijz County Water Bureau in Daodgung Province, Development and
Reformation Commission of Nijz County in Daodgung Province,Nijz County Environment Protection
Bureau in Daodgung Province, etc, are with interest in the environmental and socio-economic benefits
provided by the proposed project & hope the proposed project can make contribution to these benefits.
PIN Template • Version 1• November 2005 page 1 of 5
MDG Carbon Project Idea Note
MDG
Carbon 304 East 45th Street
New York, 10017 New York
logo 001 212 906 6329 Project Name:_____________
Matt.Spannagle@UNDP.org Project No.:_____________
Part B: Project specification and identification
B.1. Project identification
B.1.1 Title of project Official title of project. This will be the project name used by MDG Carbon.
Okilu Hydroelectric Hinge Project, Nijz County in Daodgung Province
B.1.2 Country location Name of country/countries the project is located in.
China
B.1.3 Project address Where available, provide address of project location, district, state etc. Include
latitude/longitude coordinates where appropriate/available.
The proposed project is sited in the Gijondang between Zhouhey City and Heyzhoui City in
Daodgung Province.
B.1.4 Project location Describe project location - e.g. proximity to capital/centre of commerce, region, rural,
urban, coastal, etc. (less than 100 words).
The proposed project is 200m from Okilu Village Zhujo Town Nijz County,and 42.km from Zhouhey
City and 7km from Ulobij County. It is connected to Guangheyj Water Conservancy Hinge Project,
Zhouhey City and Oxiaji hydro power plant.
B.1.5 Pool category State whether the project proponent pursues registration with the voluntary offsets
pool or the MDG Kyoto pool (note that this does not exclude the option of registration
with the other pool). If no preference, leave blank.
B.2. Project description
B.2.1 Project category Give project category based on MDG Carbon categorization, e.g. “renewable energy”
(see Annex note 5).
Renewable Energy Sector
B.2.2 Project description Describe the project including a broad statement of objectives and a brief description
of key actions to be taken to create net GHG emission reductions. Describe any
federal, regional or local legislation or regulations applicable to the project. Briefly
state the expected overall project timeline (less than 500 words).
The objectives for the proposed project are to:
Meet the demand for electric power in NijzCounty, improve the electric power supply structure
and the quality of the electric power especially in low water seasons;
Coordinate with other reservoir to adjust and modify the water level ;
Increase the income of local people and tax;
Boost the sustainable development of Nijz County of Daodgung Province.
2、The total capacity of the proposed project is 32MW,and the annual electricity generation is up
to 154,950,000kWh.The project category is about grid-connected electricity generation from
renewable sources (hydro power) instead of fossil fuel electricity generation. So net GHG emission
reductions will be created.
3、There are many legislation or regulations applicable to the project, such as technology and
economic analysis on small hydro power plant in China.
4、The construction period is estimated to 3 years, and the production period is 30 years in the
Feasibility Study Report .
B.2.3 Applied technology Give a short overview on the type(s) of technologies the project will use and their
applicability to the location (less than 250 words).
The proposed project is a water conservancy hinge project in order to generate electricity power
and use the water resource for several objectives. 4*8000kW (GZ1250A-600WP) bulb generator
sets will be chosen. The total capacity of the proposed project is32 MW, and the annual electricity
generation is up to 154,950,000kWh. The annual operation hours will be 4842h. The proposed
project will be connected to Nijz Grid with 110KV.
PIN Template • Version 1• November 2005 page 2 of 5
MDG Carbon Project Idea Note
MDG
Carbon 304 East 45th Street
New York, 10017 New York
logo 001 212 906 6329 Project Name:_____________
Matt.Spannagle@UNDP.org Project No.:_____________
B.3. Project costs and funding sources
B.3.1 Expected costs of Give overall estimate of the capital cost and annual operating costs of the project.
project
The total investment is about RMB 474.39million yuan, per KW investment is about RMB
14800yuan/kW. The operating cost is around 7.54 million yuan per year .The equity accounts for
25% of the static investment, and the long-term debt takes up 75% of static investment. The
interest rate is 6.12%.
B.3.2 Project funding State relevant sources of funding that have been received or are expected to be
received in the future. Indicate both the amount and timing of funding received or to
be received. State any other sources of financing (e.g. charitable donation). Any
ODA source of funding must be disclosed.
The proposed project needs long-term debt from the bank. Daodgung Bank of China Industrial and
commercial Bank has given the letter of Intent on fixed assets debts to Zhenfu Oyunesh Industry
Development Co., Ltd. The proposed project has no ODA funding.
B.3.3 Other environmental If other environmental attributes or services are planned to be sold, specify types,
finance amounts and purchaser(s). If none leave blank.
There are two revenue sources: from electricity sales and from shipping. The shipping revenues
are about RMB 1 to 2 million yuan per year.
B.3.4 Financial Describe how the project will be financially sustainable in the longer term (i.e. without
sustainability of project carbon financing). If possible, state when the project is expected to become viable
without carbon financing (less than 250 words).
If the Bank can give the long-term debt with lower interest rate, and the electricity price can reach
higher, especially when the above other benefit can be achieved, the proposed project will be
financially sustainable in the longer term, with IRR 8.1%(after tax) .The project is expected to
become viable without carbon financing in 13.1years.
B.4. Project quantification, monitoring and reporting
B 4.1 General Describe or reference any GHG accounting standards, guidelines or approaches
used for the project (e.g. ISO14064-2, CDM methodology NM0072, etc). Where the
project has a precedent, or is a replication of an earlier project, provide references
(less than 100 words).
The proposed project is grid-connected electricity generation from renewable sources, and the total
installed capacity is 32MW,so Approved consolidated baseline methodology ACM0002
“Consolidated baseline methodology for grid-connected electricity generation from renewable
sources” is used.
B.4.2 Baseline selection If a pre-approved methodology is applied, state name and source as well as how it
will be used. If a new methodology is developed, please describe briefly.
Describe briefly how baselines are identified, and procedures for selecting the
baseline scenario. Describe methods planned or undertaken for the identification of
sources, sinks and reservoirs for the baseline. State how the baseline scenario is
1
functionally equivalent to the project (less than 500 words).
Approved consolidated baseline methodology ACM0002
“Consolidated baseline methodology for grid-connected electricity generation from renewable
sources” is applied. About this methodology, please refer to
http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html.
About how baselines are identified, and procedures for selecting the baseline scenario, please refer
to the latest version of this methodology.
1
Functional equivalence refers to providing the same function or service in the project as in the baseline.
PIN Template • Version 1• November 2005 page 3 of 5
MDG Carbon Project Idea Note
MDG
Carbon 304 East 45th Street
New York, 10017 New York
logo 001 212 906 6329 Project Name:_____________
Matt.Spannagle@UNDP.org Project No.:_____________
B.4.3 Quantification, Describe the methodologies used to quantify emissions from the baseline scenario
monitoring and reporting and the project (e.g. direct measurement, input-output models, fuel input and
emission factors etc). Describe how relevant data and information is selected for
monitoring and monitoring methods to be used. Describe how the project will be
documented, including planned reporting content and frequency. Provide references
as applicable (less than 500 words).
In ACM0002 “Consolidated baseline methodology for grid-connected electricity generation from
renewable sources”, there are the information about calculation of emission reductions, monitoring
and reporting.
B.4.4 Verification Describe how the planned monitoring, documentation and reporting procedures will
facilitate verification. If a recognized verification approach has been planned, or there
has been a successful verification of a precedent project, describe (less than 250
words).
A monitoring plan is needed in the project design document in order to facilitate verification.
B.5. Project emission reduction estimates
B.5.1 Expected emission Estimate annual emission reductions in tCO2-equivalent and % contribution of
reductions individual gases (CO2, CH4, N2O, HFCs, PCFs, SF6). Where reductions are expected
to change over time, provide first year estimates and annual increase or decrease. If
known, describe variability in annual reductions. State expected emission reductions
within the first 7 years and within lifetime of the project (maximum lifetime 100 years)
(see also B.6.2).
In ACM0002 “Consolidated baseline methodology for grid-connected electricity generation from
renewable sources”, there are the calculation about emission reductions. For the proposed project,
the annual electricity generation is estimated to be154,950,000kWh, which is connected into
Daodgung Grid. The emission factor of Daodgung Grid is estimated to be 0.6714 kg CO2e/kWh
So the emission reductions can be calculated to be104033tCO2e. Expected emission reductions
within the first 7 years are 728234 tCO2e. If within lifetime of the project 30 years, expected
emission reductions are 3121003 tCO2e.
B.5.2 Expected price per Selling price (or price range) per tonne CO2e sought.
tonne in US$
6-10 Euro/ tCO2e
B.6. Project schedule
2
B.6.1 Expected project Give estimated year and month of project start date and project implementation
3
commencement date .
The Feasibility Study Report has been finished in October 2004.The agreement on the Feasibility
Study Report and Environmental Impacts has finished by the related local governments. The
agreements among the project owner and the local power supply bureau and Bank have finished.
The construction period is estimated from 2005 to 2007 in the Feasibility Study Report. The project
implementation date will start after the project construction about in 2008.
4
B.6.2 Project lifetime Provide the design life or duration of actions as applicable.
The project production period is estimated 30 years
B.6.3 Permanence Describe any loss of permanence of emission reductions (eg rebound effects). For
sequestration projects, describe how permanence of removals will be ensured
NA
2
Start date = start of project construction not including design phase (i.e. „shovel in the ground‟).
3
Implementation date = date when first GHG emission reductions are achieved
4
Design life/duration of activities - typically infrastructure has a specified design life (or engineering life) which covers
the technical lifetime of major components. For example a wind turbine may have a design life of 25 to 30 years. Some
projects relate to changes in practice to which „design life‟ is not applicable, such as projects to assist farmers change
manure management techniques where once established, the new technique will continue. In such cases, duration of
actions leading to emission reductions should be listed as „ongoing‟.
PIN Template • Version 1• November 2005 page 4 of 5
MDG Carbon Project Idea Note
MDG
Carbon 304 East 45th Street
New York, 10017 New York
logo 001 212 906 6329 Project Name:_____________
Matt.Spannagle@UNDP.org Project No.:_____________
Part C: Contribution to the Millennium Development Goals and other environmental benefits
C.1.1 Environmental Identify and describe the area and communities that will benefit from the project. Identify
benefits and describe the benefits (in addition to greenhouse gas reductions). Describe how
benefits will be measured and verified. Reference guidelines and standards as applicable
Nijz County of Daodgung Province around the proposed project and the local residents will benefit
from the project.
These benefits are mainly from electric power generation, shipping, water supply and irrigation, etc.
So construction of the proposed project is to make good use of water resource in a complete and
integrated way.
The electric generation benefit will be measured and verified by the local Bureau of the power
supply. Other benefits may be measured and verified by the comsumers.
The design of the proposed project accords with many guidelines and standards in several aspects,
such as Development Plan for Gijondang by Daodgung government。
C.1.2 socio-economic Identify and describe socio-economic benefits from this project. Provide brief details
benefits on the communities that will benefit from the project and explain how the project
contributes to their socio-economic development. Describe how benefits will be
measured and verified. Also identify MDG goal(s) relevant to the project‟s benefits.
The benefits from the proposed project are to:
Meet the demand for electric power in Nijz County, improve the electric power supply structure
and the quality of the electric power;
Coordinate with other reservoir to adjust and modify the water level ;
Supply the water for industrial or residential use, meet the shipping and beautify the city
environment ;
Increase the income of local people and tax;
Boost the sustainable development of Nijz County of Daodgung Province.
MDG Carbon will help the proposed project overcome the barriers & bring socio-economic benefits.
C.1.3 Duration of benefits Describe how environment/development benefits will be maintained and sustained
after project completion (less than 250 words)
The proposed project will run and operate in 30 years after construction. The
environment/development benefits will be maintained and sustained in the operation period.
Part D: CDM specific information (not required for voluntary offsets)
D.1. Host country information
D.1.1 Status of host country State whether the host country has signed/ratified/approved the Kyoto Protocol.
with Kyoto Protocol
Peoples’ Republic of China (PRC) has signed/ratified/approved the Kyoto Protocol.
D.1.2 Current status of host Status of host country approval, letter of acceptance, etc. if initiated.
country project approval
Host country approval, letter of acceptance is under discussion.
Part E: Remarks/other (optional)
Optional - include relevant remarks or other information not covered above. Assessment priority is given to information in
Parts A-D, and this section should only be filled in where relevant (less than 500 words).
Signature
I am the authorized representative of the project proponent. The submitted information is true, accurate and
complete to the best of my knowledge.
Name:
Date:
Signature:
PIN Template • Version 1• November 2005 page 5 of 5
