Song Giang 2 Hydro Power Project CDM Project Design Document
Transcription
Song Giang 2 Hydro Power Project CDM Project Design Document
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 1 Song Giang 2 Hydro Power Project CDM Project Design Document CDM Project Design Document Version 1.1 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 2 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. General description of project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan SECTION A. General description of project activity PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board A.1 page 3 Title of the project activity: Song Giang 2 Hydro Power Project Version 1.1 November 15, 2006 A.2. Description of the project activity: The Song Giang Hydropower Project involves the construction of a 30 MW power plant consisting of 2 units of 15 MW each on the on downstream of Giang stream which is a branch of Cai river under Khanh Trung commune, Khanh Vinh district, Khanh Hoa province. The estimated annual gross power generation is about 99.3 million kWh and about 98.31 million kWh will be fed to the national grid. The project will result in a small reservoir with area of only 2 ha and so the power density rate of 1500 W/m2, very much higher than the level of 10 W/m2. The objective of the Song Giang 2 Hydropower Project is to generate renewable electricity utilizing hydroelectric resources in the Giang river and sell the generated power to Vietnam General Power Company. The project’s contributions to the sustainable development of local area as well as the host country are as follows: − The project will generate renewable energy based electricity. This hydro power will support partly with increasing electricity demand in Khanh Hoa province and Vietnam. During last 15 years the electricity demand of country is continuously increasing with an annual growth rate about 13-14%. It is obvious that the investment in the power generation sector in Vietnam is a great burden to the state budget which could not be effectively met with. During the summer 2005, the Northern areas were short of about 10GWh per day with frequent blackouts in the cities, thereby causing a big loss to the industry. This problem may occur during 2006 and expected to be recurring. To mobilize the investment resources, the Government encourages all enterprises to invest into power generation and the proposed project is a good response to this need. − Khanh Hoa is fairly developed province in the South of Vietnam with natural area of 5,198.2 km2, population by the end of 2004 of 1,111,300 people and GDP of about 11771.4 billion VND (about 740 million USD) in 2004. When the proposed project comes into operation, average 12.36 billion VND (tax) per year will be added to the local budget, make up 0.105 % of the province’s GDP of 2004. In addition, it will contribute to completion of traffic system in the area by newly constructing or improving roads; create favourable conditions to local people living and production, goods transport, travel and exchange between areas in the territory and reduce the cultural and economic gap between ethnical groups and areas in the region; especially more jobs during the period of construction and operation will be created on-site; demands on food and supplies will promote agricultural goods items and commercial services among local communities; the local economic structure will be growing from rice cultivation to husbandry and aquaculture. These will largely push forward economic development and improve living standard of the province and nearby communes. In addition, the proposed project will supply electricity to nearby communes directly from plant since the project is planned to share a part of PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 4 electricity generated for self use to these communes. Thus the proposed project will contribute the solution of basic needs -roads and electricity - for above mentioned communes. − The project activity will reduce greenhouse gas (GHG) emission by avoiding electricity generation and CO2 emissions from the national electricity grid. Total expected CO2 emission reductions from the proposed project have been estimated to a total of 572,106 tCO2 during the crediting period of 10 years. − The project will stimulate and accelerate the development of renewable energy technologies in order to reduce GHGs emissions, to protect the environment, to conserve the country energy resources while responding to increasing energy demand and energy resource diversification imperatives necessary for national sustainable economic growth. It is congruent with energy policies of Vietnam; therefore it satisfies the sustainable development criteria for CDM project, established by Designated National Authority (DNA) of Vietnam. A.3. Project participants: Participants in the project activity are the following: Name of Party involved ((host) indicates a host Party) Private and/or public entity(ies) project participants (as applicable) Vietnam (Host) Song Giang Hydro Power Joint – Stock Company AND Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) No RCEE Energy and Environment JSC Denmark Ministry of Foreign Affairs Yes The contact for CDM project activity is: RCEE Energy and Environment JSC Address: Lane 62, Nguyen Chi Thanh Street, Hanoi, Vietnam Phone: 84 4 7733686 Fax: 84 4 7734022 Email: [email protected] A.4. Technical description of the project activity: The Song Giang 2 Hydropower Project will be located on downstream side of Giang river which is a branch of Cai river under Khanh Trung commune, Khanh Vinh district, Khanh Hoa province. This project is located a spot 50 km Northwest of Nha Trang city, Vietnam. It is a run PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 5 – off – river plant, grid connected hydro power station of 2 units of 15 MW each with an average annual power output of about 99.3 million kWh and about 98.31 million kWh of power will be fed to the national grid. When Song Giang 1 hydro power plant will be constructed on upstream side then average annual power output of the plant will be increased up to 118.24 million kWh so about 116.46 million kWh of power will be fed to the grid. The project will include a very small reservoir with area of only 2 ha and so power density rate is 1500 W/m2, very much higher than the level of 10 W/m2 The main design parameters of the Song Giang 2 Hydropower plant are shown in the following table: Table 1: Main parameters of the Song Giang 2 Hydropower plant No Description Unit Value I Catchment 1 Catchment area for flood calculation km2 123 2 Mean annual rainfall mm 2,350 3 Mean annual discharge (Q0) m3/s 5.96 4 Total volume of mean annual flow 106 m3 188 II Reservoir 1 Normal water level (MNDBT) m 415 2 Minimum operating level (MOL) m 410 3 Checked flood water level (p = 0.2) m 421.92 4 Storage at MNDBT (Wtb) 103 m3 160.0 5 Area of reservoir surface at MNDBT ha Active storage (Whi) 3 6 III 1 10 m 80.0 m3/s 1,232 (1,462) Discharge through powerhouse Insurance discharge Q (p = 1 %) Q (p = 0.2 %) 2 IV 2 3 Maximum discharge Qmax 1,581 (1,920) 3 m /s 10.93 Head 1 Maximum head (Hmax) m 256.22 2 Minimum head (Hmin) m 310.21 3 Rated head (Htt) m 338.46 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 6 V Energy indicator 1 Insured capacity MW 7.03 2 Installed capacity MW 30 3 Mean annual energy (E0) 6 4 Number of hour uses installed capacity VI 10 kWh 99.3 Hour 4000 Head works Project grade 1 Grade III Concrete Gravity dam Type 2 Crest elevation m 422.7 Crest length m 86.1 Crest width m 5 Height m 24.1 Spillway Type Free Length of spillway sill m Number of spillway sill VII 1 1 Elevation of sill m Flood discharge: 3 P = 1% 1,232 P = 0.2% 1,581 Water passage Intake Elevation of sill/width/height 1 x 3.5 x 3.5 m Dimension of plane valve (nxbxh) 435.0/5.5/18.2 1x2.2x2.5 Headrace tunnel Dimension of tunnel (bxh) m 2.2x2.5 Length of tunnel m 4175 Slope 3 415 m /s Dimension (number of bay x B x H) 2 40 Pressurized well 0.006 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board 4 5 page 7 Inner diameter m 6.0 Elevation of maximum water level m 427.7 Elevation of minimum water level m 400.12 Height m 47.0 Length m 1,124.1 Diameter m 1.6 Thickness mm Penstock 10 - 26 Powerhouse No of unit 02 Installed capacity MW Turbine type 30 Pelton – vertical axis VIII Discharge canal Width of canal bottom m 3.3 Slope of canal bottom 0;0.15 Length m 147.3 Project lay-out is shown as following: 2 ha Giang river 30 MW PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 8 Figure 1: Project lay-out A.4.1. Location of the project activity: A.4.1.1. Host Party(ies): Socialist Republic of Viet Nam A.4.1.2. Region/State/Province etc.: Khanh Hoa province A.4.1.3. City/Town/Community etc: Khanh Vinh district A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): The Song Giang 2 Hydropower Project will be located on downstream side of Giang river which is a branch of Cai river under Khanh Trung commune, Khanh Vinh district, Khanh Hoa province. This project is located a spot 50 km Northwest of Nha Trang city, Vietnam. All of works and reservoir will be located on land of Khanh Trung commune, Khanh Vinh district. The project location is shown below: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 9 Location of the project Picture 1: Khanh Hoa province map PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 10 Location of the project Picture 2: Viet Nam map PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 11 A.4.2. Category(ies) of project activity: The project belongs to the large scale CDM projects category. The project activity belongs to the scope number 1: Energy industries (renewable -/non-renewable sources) as per the sectoral scopes related approved methodologies and DOEs (version 05 May 05|10:09) provided in the UNFCCC CDM website, http://cdm.unfccc.int/DOE/scopes.html#1 A.4.3. Technology to be employed by the project activity: Main equipments used in the Song Giang 2 hydro power plant are shown in the following table: Table 2: Main equipments used in this hydro power plant Main equipments Symbols Units Values 1. Turbine + Type Dipper turbine + Quantity Set 02 D1 m 2.0 Highest Hmax m 356.22 Lowest Hmin m 310.21 Htt m 331.69 Ntb MW 15.46 n rpm 375 + Wheel diameter + Water post (the loss is calculated) Calculation + Required capacity at Htt + Speed 2. Generator + Type synchronized, upright axis – 3 phases % 0.85 MW 15.46 + Required electricity pressure KV 10.5 + Required circle rpm 375 % 97 Set 02 + Capacity value: Cosϕ + Required capacity +Efficiency equivalent additional load, Cosϕ =0.8 + Quantity Nmf to 100% 3. Speeder + Type + Adjustment method Electricity-waterpost with a microprocessor PDI and oil pressure device Automatic, adjusting PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 12 + Oil pressure MPa 6.3 m 1.15 MPa 4.64 4. Turbine valve + Diameter Do + Oil pressure equipment The equipment manufacturers are still not identified because the project sponsor is calling for tender. But the equipment will be imported from leading manufacturers of hydro power plants and well-known supplier with successful similar projects in the world. A.4.4 Estimated amount of emission reductions over the chosen crediting period: Table 3: Emission reduction of the proposed project during the crediting period Year Time 1 2009 (only one month) 2 2010 57,211 3 2011 57,211 4 2012 57,211 5 2013 57,211 6 2014 57,211 7 2015 57,211 8 2016 57,211 9 2017 57,211 10 2018 57,211 11 2019 ( 11 months) 52,443 Annual average emission reduction Total emission reduction during the first crediting period of 10 years A.4.5. Public funding of the project activity: There is no public funding provided for the proposed project. Annual estimation of emission reductions, tCO2 eq 4768 57,211 572,106 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 13 SECTION B.B.Application of of a baseline and monitoring methodology SECTION Application a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity: Baseline Methodology: Baseline Methodology ACM0002 version 06 “Consolidated baseline methodology for gridconnected electricity generation from renewable sources”, which was approved by Executive Board in its 16th meeting and revised in its 24th meeting, is applied to the proposed project. Monitoring Methodology Monitoring Methodology ACM0002 version 06 “Consolidated monitoring methodology for grid-connected electricity generation from renewable sources”, which was approved by CDM Executive Board in its 16th meeting and revised in its 24th meeting, is applied to the proposed project. B.2 Justification of the choice of the methodology and why it is applicable to the project activity: The baseline and monitoring methodology ACM0002 is applied because of following reasons: + The project will generate renewable energy based electricity from a hydropower sources. The project will increase a very small reservoir having power density rate of 1500 W/m2, much higher than the level of 10 W/m2. + The project is not an activity that involves switching from fossil fuels to renewable energy at the site of the project. + The national electricity grid is clear defined and information on the characteristics of the national electricity grid is available. B.3. Description of the sources and gases included in the project boundary As described in the methodology, the project boundary includes: + The physical site of the Song Giang 2 hydropower plant as well as its reservoir area. + The project site and all power plants (in the baseline) connected physical to the national electricity grid. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 14 Giang river Construction of access roads, foundations, substation, transmission lines Song Giang 2 hydro power plant Vietnam National Electricity grid Transmission and distribution of power End user Transport of project equipment materials Construction of project equipment This is a renewable energy project so emission of the project is zero. The main emissions potentially giving rise to leakage in the context of electric sector project are emission arising due to activities such as: + Power plant construction, + Fuel handling (extraction, processing and transport) and + Land inundation. Emission gases in the project boundary include: + Emission gases from decay of vegetation cover in the reservoir area when it is stored water: CH4, CO2, SO2 .etc. + Emission gases from production and transportation of construction materials (as: cement, brick .etc): CO2, SO2, NOx .etc. However, project participants do not need to consider these emission sources as leakage in applying methodology ACM0002. B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: The baseline scenario is that electricity delivered to the national grid by the project would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation mainly based on coal and oil resources. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 15 The selection of the national electricity grid for the baseline is conservative because of the following reasons: if the coal or oil fired power plants will be substituted by the proposed project, the baseline emission factor will be 1177.91 gCO2 per kWh or 800 gCO2 per kWh2 respectively. But the national grid’s emission factor (NGEF) is only 580.61 gCO2 per kWh (see below); hence NGEF is much less than coal or oil emission factors. Calculation of baseline emission factor of the national electricity grid Following the methodology, the baseline emission factor (EF) is calculated as a combined margin (CM), consisting of the combination of operating margin (OM) and build margin (BM) factors according to the following three steps: • Step1: Operating Margin emission factor (EFOM) • Step2: Build Margin emission factor (EFBM) • Step3: Calculate the baseline emission factor EF Step1: Operating Margin emission factor (EFOM) The Simple OM method can be used in the project because of the two following reasons: + Dispatch data is available only in Vietnam Dispatching Center, currently these data is confidential and can not be accessed. So Dispatch Data Analysis based OM method can not be selected. + Low-cost/must run resources in Vietnam constitute less than 50% of total grid generation in average of the five most recent years Table 4: Rate of low cost/must-run sources based on generation3 Year 2001 2002 2003 2004 2005 Average Rate of low cost/must-run sources generation, % 59.43 48.25 47.24 38.53 34.53 45.6 The Simple OM emission factor (EFOM,simple,y) is calculated as the generation-weighted average emissions per electricity unit (tCO2/MWh) of all generating sources serving the system, not including low-operating cost and must-run power plants: EF_OMy = ∑i, j Fi, j,y * COEFi, j ∑ j GEN j,y Where: Fi ,j, y is the amount of fuel i (in a mass or volume unit) consumed by relevant power sources j in year(s) y, 1 Baseline calculation for Vietnam national electricity grid, Vietnam DNA Appendix B of the simplified M&P for small scale CDM project activities (UNFCCC, 2003b) 3 Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 2015 – Electricity Corporation of Viet Nam 2 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 16 j refers to the power sources delivering electricity to the grid, not including lowoperating cost and must-run power plants, and including imports to the grid, COEFi,j y is the CO2 emission coefficient of fuel i (tCO2 / mass or volume unit of the fuel), taking into account the carbon content of the fuels used by relevant power sources j and the percent oxidation of the fuel in year(s) y, and GENj,y is the electricity (MWh) delivered to the grid by source j. The CO2 emission coefficient COEFi is obtained as COEFi = NCVi * EFCO2,i * OXIDi Where: NCVi is the net calorific value (energy content) per mass or volume unit of a fuel i, OXIDi is the oxidation factor of the fuel EFCO2,i is the CO2 emission factor per unit of energy of the fuel i. (Ex-ante) the full generation – weighted average for the most recent 3 years for which data are available at the time of PDD submission is used to calculate the Simple OM emission factor. Table 5 shows electricity outputs and fuel consumptions of thermal power source in 3 years 2003, 2004 and 2005. Table 5: Electricity outputs and fuel consumptions of thermal power sources in 2003 – 20054 Fuel type 2004 2005 Coal (OXID = 0.98 – IPCC) GWh 6,521 6,435 8,408 5 kt 3,541 3,415 4,255 COEF = 26.8 TC/TJ –IPCC kt CO2 7,852 7,573 9,436 Gas (OXID = 0.99 – IPCC) GWh 11,692 21,440 25,291 NCV = 8500 kcal/m3 – Vietnam Million m3 2,618 4,963 5,645 COEF = 15.3 TC/TJ – IPCC kt CO2 5,175 9,809 11,157 Diesel oil (OXID = 0.99 – IPCC) GWh 338 336 235 NCV = 10200 kcal/kg – Vietnam kt 98 98 68 COEF = 20.2 TC/TJ – IPCC kt CO2 307 307 213 Fuel Oil (OXID = 0.99 – IPCC) GWh 1,419 319 1,054 NCV = 9800 kcal/kg – Vietnam kt 375 89 249 EF = 21.1 TC/TJ – IPCC kt CO2 1,191 283 791 Imported electricity GWh 0 0 0 NCV = 5500 kcal/kg-Vietnam 6 4 2003 Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 2015 – Electricity Corporation of Viet Nam 5 Net calorific value 6 Carbon emission factor PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 17 Total CO2 emission from Vietnam grid kt CO2 14,524 17,972 21,597 Total thermal electricity output generated GWh 19,970 28,530 34,988 Thus, the “Operating Margin” emission factor will be 14,524 * 10 9 17,972 * 10 9 21,597 * 10 9 + + 19,970 * 10 6 28,530 * 10 6 34,988 * 10 6 = = 658.17 gCO2 / kWh 3 EFOM Step2: Build Margin emission factor (EFBM) The Build Margin emission factor EFBM,y is given as the generation-weighted average emission factor of a sample of power plants m, as follows: ∑ Fi,m, y * COEFi,m EFBM , y = i ,m ∑ GEN m, y m Where Fi,m,y, COEFi,m and GENm,y are analogous to the variables described for the simple OM method above for plants m. For the proposed project, Option 1 shall be chosen: Calculate the Build Margin emission factor EFBM, y ex-ante based on the most recent information available on plants already built for sample group m at the time of PDD submission. The sample group m consists of either the five power plants that have been built most recently; or the power plant capacity additions in the electricity system that comprise 20% of the system generation (in GWh) and that have been built most recently. Sample group that comprises the larger annual generation should be used. The difference between (1) the five power plants that have been built most recently and (2) the power plant capacity additions in the electricity system that comprise 20% of the system generation (in GWh) and that have been built most recently in 2005 is shown in the following tables: Table 6: the difference between (1) and (2) in 2005 7 The five power plants Name Outputs GWh Name Capacity MW Outputs GWh 1. Cao Ngan, coal 100 604.5 1. Cao Ngan, coal 100 604.5 2. Na Duong, coal 110 604.5 2. Na Duong, coal 110 604.5 3. Phu My 2.2&3, gas 1466 9462 3. Phu My 2.2&3, gas 1466 9462 4. Phu My 2.1& 2.1MR &4, gas 1435 7010 4. Phu My 2.1& 2.1MR &4, gas 1435 7010 5. Can Don, hydro 7 Capacity MW 20% of the system generation 78 266 Source: Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 2015 - EVN PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board Total page 18 3189 17,947 3111 17,681 In 2005, total electricity outputs of the Vietnam national electricity system was 53,439 GWh and its 20% was 10,688 GWh. Based on the results in table 6, the five power plants that have been built most recently comprise the larger annual generation, and hence it is used. They are shown in details in the following table: Table 7: Five power plants that have been built most recently at the time of 20058 Plants Capacity MW Outputs GWh 1. Cao Ngan, coal 100 604.5 314.5 kt Coal 2. Na Duong, coal 110 604.5 314.5 kt Coal 3. Phu My 2.2&3, gas 1466 4. Phu My 2.1& 2.1MR &4, gas 9462 1435 7010 5. Can Don, hydro 78 266 Total 3189 17,947 Fuel consumption Emission kt CO2 697 697 3 4862 3 2771 2460 Million m gas 1402 Million m gas - - 0 9028 Thus, the “Build Margin” emission factor will be EFBM = 9,028 * 10 9 17,947.10 6 = 503.04 gCO2/kWh Step3: Calculate the baseline emission factor EF The baseline emission factor EF is calculated as the weighted average of the Operating Margin emission factor (EFOM) and the Build Margin emission factor (EFBM): EF = wOM*EFOM + wBM*EFBM Where the weights wOM and wBM, by default, are 50% So the baseline emission factor will be: EF = 0.5*658.17 + 0.5*503.04 = 580.61 gCO2/kWh B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (assessment and demonstration of additionality): a. Description of emission reductions The CO2 emission reduction will be calculated on basic of the substitution of the mix of power supplied from traditional electricity plants to the national grid. Thus the implementation of the proposed project activity will generate a total emission reduction of 572,106 tCO2 during the crediting period (10 years). 8 Source: Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 2015 - EVN PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 19 b. Demonstration and assessment the additionality of the proposed project. According to the methodology ACM0002 version 06, the additionality of the proposed project will be demonstrated and assessed by using the “Tool for demonstration and assessment of additionality” agreed by the CDM Executive Board. It includes the following steps: Step 0: Preliminary screening based on the starting date of the project activity The crediting period of the project activity will start after the registration of the project activity, so this step does not apply to the project activity. Step 1: Identification of alternatives to the project activity consistent with current laws and regulations Sub-step 1a: Define alternatives to the project activity In absence of the proposed project, there is no any other potential power source expected to develop at the site because of the poor potential of other renewable energy resources (solar, wind, etc). Projects based on coal, gas and diesel will also not be implemented due to difficult transportation of fuels. In addition, the project sponsor also did not propose to develop any other power project alternatives like coal-fired or wind or solar power plant since they have no background and expertise. Hence there is only the following alternative: + Continuation of the current situation: this alternative is most likely to dominate. This means an equivalent amount of power would be supplied by different power plants (dominated by fossil fuel resources) to the national grid and an equivalent amount of emissions would be generated at thermal power plants. This alternative is thus a part of the baseline scenario. Sub-step 1b: Enforcement of applicable laws and regulations All alternatives are in compliance with the laws and regulatory requirements in Vietnam. Step 2: Investment analysis Sub-step 2a: Determine appropriate analysis method The proposed project activity generates financial and economic benefits other than CDM related income and hence the simple cost analysis (Option I) can not be applied. As there is only one alternative scenario among the remaining two options, Option III was chosen. Sub-step 2b – Option III: Apply benchmark analysis The identified financial indicator is Economic Internal Rate of Return (EIRR) The relevant benchmark is the recommendation of the Asia Development Bank9: “The EIRR of independent projects in Vietnam should be at least 12%” and the minimum EIRR criterion of 12% the project participants. Sub-step 2c: Calculation and comparison of financial indicators Revenue of the proposed project comes only from the electricity sale in the case of the absence the revenue from CER credits. Financial analysis by the project participants has concluded that 9 ADB’s Guidelines for the Economic Analysis of Projects PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 20 EIRR of the project is 10.10 % based on very optimistic assumptions. Such assumptions are described as following: + A significant assumption is that average electricity price is 3.8 Cent/kWh. This is the high price among the range of electricity purchase price by Electricity of Vietnam (EVN-Who is responsible for national grid management) who has already committed with project’s sponsor. + The equipment costs is calculated at basic price level + A series of risks of project, country, currency (electricity outputs decrease, country inflation with minimum rate of 5%, oil price growth, etc) are not taken into consideration. Therefore, this EIRR of 10.10 % can be regarded as very optimistic figure. But it is less than the benchmark of 12%, it hence can be concluded that the proposed project is unlikely to be financially attractive. Step 3: Barrier analysis Beside the economic/financial barrier in Step 2, the proposed project has faced the following three barriers which also would prevent it from being carried out if it is not registered as CDM project: 1. Policy barrier Investment cost of the proposed project was calculated in the Feasibility Study based on specific guides in Circulars, Decisions issued by ministries, the government. This Feasibility Study report has been considered and approved related authorities such as ministries, the government, banks, funds and Khanh Hoa People’s Committee. But when the proposed project came into preparation phase, some of these Circulars and Decisions have been changed. This has resulted in the increased investment cost and hence renders the project non-feasible as mentioned Sub-step 2c above. Old and new guidelines and related project investment cost are shown in the following tables: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 21 Table 8: Old and new guides used to calculate investment cost of the proposed project Content Old New 1. Guides on the establishment and management of budget proposed for invested projects. Circulars No 09/2000/TT-BXD dated July 17, 2000; No 06/2003/TT-BXD dated April 14, 2003 and No 07/2003/TT-BXD dated June 17, 2003 by Ministry of Construction. Circular No 04/2005/TTBXD issued by Ministry of Construction on April 01, 2005. 2. Standard and norm on cost estimates of construction and installation works. Decisions No 1242/1998/QD-BXD dated November 25, 1998; No 31/2002/QD-BXD dated November 12, 2002; No 17/2004/QD-BXD dated July 05, 2004 and No 05/2005/QDBXD dated January 24, 2005 by Ministry of Construction. Decision No 24/2005/QDBXD dated July 29, 2005 by Ministry of Construction. 3. Cost breakdown for estimates of machines shift and equipments cost. Decisions No 1260/1998/QD-BXD dated September 18, 1998; No 10/2001/QD-BXD dated June 11, 2001 and No 38/2002/QD-BXD Dated December 27, 2002 by Ministry of Construction. Circular No 06/2005/TTBXD dated April 15, 2005 by Ministry of Construction. 4. Standard and norm on cost estimate of invested construction project management. Decision No 15/2001/QD-BXD dated July 20, 2001 and Circular No 07/2003/TT-BXD dated June 17, 2003 by Ministry of Construction. Decision No 10/2005/QDBXD dated April 15, 2005 by Ministry of Construction. 5. Standard and norm on cost estimate of project design and consulting services. Decisions No 12/2001/QD-BXD Decision No 11/2005/QDdated July 20, 2001 and No 15/2001/ BXD dated April 15, 2005 QD-BXD dated July 20, 2001 by by Ministry of Construction Ministry of Construction. 6. Adjustment in labour cost according to basic salary in budget estimated for invested projects. Circular No 03/2005/TT-BXD dated Circular No 16/2005/TTMarch 04, 2005 by Ministry of BXD dated October 13, Construction. 2005 by Ministry of Construction. (Basic salary is 290,000 VND/month) (Basic salary is 350,000 VND/month) PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 22 Table 9: Old and new investment cost of the project Investment cost Old New 1. Construction and assembly cost, billion VND 183.29 194.79 2. Equipment cost, billion VND 130.34 139.74 3. Other cost, billion VND 28.61 35.89 4. Contingency cost, billion VND 34.22 37.04 376.46 407.46 12.90 11.48 Feasibility (>12%) Unfeasibility (<12%) 5. Total investment cost 6. EIRR, % 7. The proposed project In addition, the project is also facing the policy barrier due to the following three issues: − Lack of Renewable Energy policy (and policy for technologies with less GHG emission) still exists. No incentives are available for renewable energy projects for its category. − Now, there is only one electricity buyer for grid connected plans in Viet Nam is that EVN and especially, in transmission EVN is absolute monopolist. Hence it makes the negotiation of Power Purchase Agreement (PPA) very difficult. − Discrimination between state-own and private enterprises still exists. This makes the access to credit sources difficult for private investors and Song Giang Hydro Power Joint _ Stock Company is not an exception. 2. Investment barrier Before the change in the policies as described above, the project was feasible and hence met the conditions of the funds, banks and financing sources which will provide the loan to investor. But since the change in the policies has rendered the project non-feasible, it is difficult for convincing the bank to continue with the loan provided for the project. In addition, Vietnam is a developing country and being in the process of national industrialization and modernization, resulting in implementation of large infrastructure projects. The current consumption and the future demand as forecasted necessitate implementation of many new power plants (associated with huge capital investment) to meet the projected electricity demand for the country. Therefore, only power plants having favourable and attractive financial indicators attract the attention from Vietnam investors, banks and financial institutions. 3. Road barrier To carry out the project, investor must construct a new road of 8 km in length. This is a tortuous road. It is constructed based on side of hills from centre of Khanh Trung commune to the project site so construction of the road will meet many difficulties. Estimated cost is about 24 billion VND. Step 4: Common practice analysis Sub-step 4a: Analyze other activities similar to the proposed project activity PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 23 In order to test whether a credible claim can be made that there are real, prohibitive barriers to development of a project such as the Song Giang 2 Hydro Power Project – third level hydro power project10, hence it is necessary to investigate third level hydro power plants which is under operation or construction in Vietnam. Such hydro power plants are shown in the following table: Table 10: Hydro power plants (3 – 30 MW) developed in Vietnam11 No Plant name Capacity Elec. Load Co. Sponsor USD/ EIRR13 12 MW outputs factor time kW GWh % year 0 Song 30 99.3 37.8 2008 850 10.10 Song Giang Giang 2 Hydro Power project Joint – Stock Company 1 Nam Mu 11 46.4 48.2 2004 >12 Song Da Construction Corporation 2 Na Loi 9 39.7 50.4 2005 >12 Song Da Construction Corporation 6 Nam Dong 22 91.6 47.5 2007 755 18.06 Northern Power Development and Investment Company 3 Suoi Sap 11.8 62.8 60.7 2006 868.9 19.94 Truong Thanh Construction Company 4 Suoi Vang 10 41.9 47.8 <2004 >12 Vietnam General Power Company 5 Ry Ninh 9 39.4 50.0 2004 >12 Song Da Construction Corporation 8 H’chan 12 66 62.8 2006 907 19.76 Power Company No3 H’mun 16.2 64.5 45.5 2007 1016 12.31 Lam Son Company under Ministry of Defence 9 Ea Krong 28 112 45.7 2007 1050 12.20 MienTrung Power Rou Development and 10 According to Vietnam standard (209/2004/ND-CP dated December 16, 2004), hydro power plants whose capacity is under the range of 3 – 30 MW are ranked among third level hydro power projects. 11 Draft of Master Plan of Electricity Expansion for period of 2006-2015 with perspective to 2025 - Electricity of Vietnam and interviews to hydropower plants sponsor shown in table above 12 Commissioning time 13 According to our calculation PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board 10 Ban Coc page 24 18 80.6 51.1 2009 937.6 Investment Company 15.48 Hanoi Construction Corporation Sub-step 4b: Discuss any similar options that are occurring Hydro power projects shown in table 10 could overcome the prohibitive barriers that the proposed project faces because of the following two main reasons: + They possess good economic and technical indicator such as low specific investment cost, high plant load factor and especially high EIRR (above 12%). These indicators demonstrate their feasibility. + Especially, most of these projects are invested and constructed by big state-owned companies who have access to huge capital sources. Step 5: Impact of CDM registration If the proposed project will be registered as a CDM project, it can obtain benefits to overcome its barriers as following: + A significant impact is that an additional revenue source from CDM will improve the project’s EIRR indicator from 10.10 % to 12.11% (with CER price of 8.1 USD/tCO2). This increase in EIRR has already made the project feasible and hence convinced the project sponsor. Especially, the project sponsor can convince banks, funds, others financing sources to obtain loans. + The CDM revenues is the only income the Project Developers will receive in Euro – a strong currency and is the only revenue that can be used to offset the foreign exchange risks that are being incurred for the purchase of the plant’s equipments (to the tune of 18.33 % of the equipment cost) + CDM projects has the potential to assist the country in achieving sustainable development by promoting environmentally friendly investment from industrialized country governments and businesses, thus they are encouraged by the government. Incentive policies for CDM projects have been already submitted by CNA (Vietnam DNA) to the government for consideration. + Sale of CER from the proposed project may be possibly lead to access international funds besides the domestic financing sources. So, the impacts of registration can be clearly demonstrated for the proposed project as a CDM activity. The allied benefits and incentives derived from the project activity will alleviate the economic and financial hurdles (as mentioned in Step 2) and other barriers (as mentioned in Step 3) and thus enable the project activity to be undertaken. B.6. Emission reductions: Emission reduction of the project PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 25 The proposed project activity reduces carbon dioxide through substitution of grid electricity generation with fossil fuel fired power plants by renewable-hydro electricity. The emission reduction ERy by the project activity during a given year y is calculated as the difference between baseline emissions (BEy), project emissions (PEy) and emissions due to leakage (Ly), as per the formulae given below: ERy = BEy – PEy – Ly According to the formulae, emission reduction of the project activity is calculated and is shown in below table: Table 11 : Emission reduction of the project activity Year (y) Project Leakage emission emission (Ly) (PEy) tCO2 tCO2 Baseline emission (BEy) tCO2 Emission reduction (ERy), tCO2 2009 (only one month) 0 0 4767.5 4767.5 2010 0 0 57,210.6 57,210.6 2011 0 0 57,210.6 57,210.6 2012 0 0 57,210.6 57,210.6 Up to and including 2012 0 0 176,399.3 176,399.3 2013 0 0 57,210.6 57,210.6 2014 0 0 57,210.6 57,210.6 2015 0 0 57,210.6 57,210.6 2016 0 0 57,210.6 57,210.6 2017 0 0 57,210.6 57,210.6 2018 0 0 57,210.6 57,210.6 2019 (11 months) 0 0 52,442.5 52,442.5 Total emission reduction during the first crediting period of 10 years 0 0 572,106 572,106 *For conservative calculation The emission factor of the national grid is calculated based on gross power generation. It means that the grid’s emission factor is calculated as: EF = total emission/gross power output. This emission factor is less than emission factor calculated by net power output, because net power output is less than gross power output by parasitic use and loss load (about 1% gross output). In contrary, the calculation uses only net electricity output of the project activity that is certainly less than plant gross output. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 26 B.6.1. Explanation of methodological choices: This is a hydro power project with installed capacity is 30 MW. According to the EB regulations for CDM projects then the project belongs to the large scale CDM projects category. So baseline and monitoring methodology ACM0002 is applicable to the project activity. B.6.2. Data and parameters that are available at validation: Data / Parameter: Reservoir area Data unit: M2 Description: Surface area at full reservoir level Source of data used: Feasibility Study Report Value applied: 20000 Justification of the choice of data or description of measurement methods and procedures actually applied : Reservoir area that is necessary to calculate power density rate of the project. According to the EB’ guidelines, then the leakage of the project are estimated base on the value. Reservoir area is calculated by technical consulting Unit of the project. Any comment: Data / Parameter: Emission factor Data unit: gCO2/kWh Description: Emission factor of national grid of Vietnam Source of data used: Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 2015 – EVN and calculation of RCEE Value applied: 580.61 Justification of the choice of data or description of measurement methods and procedures actually applied : The factor is calculated based on the baseline methodology ACM0002 Any comment: B.6.3 Ex-ante calculation of emission reductions: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 27 Baseline emission The baseline emissions (BEy) are the product of the baseline emissions factor (EFy) calculated above, times the electricity supplied by the project activity to the national grid (EGy), as per the formulae given below: BEy = EGy * EFy Where: EFy = 580.61 gCO2/kWh - Baseline emission factor (calculated in B4) EGy - Net electricity outputs supplied to the national grid by the proposed project Project emission The proposed project has power density rate of 1500 W/m2, much higher than the level of 10 W/m2. So the project emission (PEy) is zero. Leakage The main emissions potentially giving rise to leakage in the context of electric sector project are emission arising due to activities such as power plant construction, fuel handling (extraction, processing and transport) and land inundation. Project participants do not need to consider these emission sources as leakage in applying this methodology. Project activities using this baseline methodology shall not claim any credit for the project on account of reducing these emissions below the level of the baseline scenario. So emissions due to leakage also are zero. Emission reduction The proposed project activity reduces carbon dioxide through substitution of grid electricity generation with fossil fuel fired power plants by renewable-hydro electricity. The emission reduction ERy by the project activity during a given year y is calculated as the difference between baseline emissions (BEy), project emissions (PEy) and emissions due to leakage (Ly), as per the formulae given below: ERy = BEy – PEy - Ly B.6.4 Summary of the ex-ante estimation of emission reductions: Summary of the above calculations is shown in below table: Table 12: Summary of the calculated parameters Parameters Unit Value 1. Capacity addition MW 30 2. Annual net electricity generation GWh 98.31 3. Baseline carbon emission − The “approximate operating margin” gCO2/kWh 658.17 − The “build margin” gCO2/kWh 503.04 − Baseline emission factor gCO2/kWh 580.61 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board − page 28 tCO2 57,210.6 4. Total project carbon emission per year tCO2/year 0 5. Total leakage carbon emission per year tCO2/year 0 6. Total CO2 emissions reductions per year tCO2/year 57,210.6 7. Total CO2 emission reductions during the crediting period of 10 years tCO2 572,106 Total baseline carbon emission per year The above calculation is based on the average annual flow in the Giang River. The flow and thus the production of the Song Giang 2 Hydro power plant can vary +/- 25%. This means that the maximum expected generation of CER in a single year will be 71,500 t CER/year and the lowest will be 42,900 t CER/year. The actual emission reductions in each year will be established expost by multiplying the electricity production with the baseline emission factor. B.7 Application of the monitoring methodology and description of the monitoring plan: The methodology requires monitoring of the following: • Electricity generation from the proposed project activity which is supplied to the national grid. • Data needed to recalculate the Operating Margin emission factor, based on the Simple operating margin method chosen consistent with ACM0002 baseline methodology. • Data needed to recalculate the Build Margin emission factor consistent with ACM0002 baseline methodology. • The surface area of reservoir at the full reservoir level. B.7.1 Data and parameters monitored: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to Electricity quantity GWh Electricity will supply to the national grid by the project Hydro power plan and electricity bill 98.31 Directly measured by electronics equipments QA/QC procedures for this are planned. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board be applied: page 29 These data will be directly used for calculation of emission reductions. Sales record to the grid and other records are used to ensure the consistency. The value used in the calculation is based on the average flow in the Giang River. The actual production can vary with +/- 25% Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Surface area of reservoir M2 Surface area of reservoir at the full reservoir level Feasibility Report Study 20,000 It is calculated by technical consulting unit of the project QA/QC procedures for this are planned. These data will be directly used for calculation of power density rate Any comment: B.7.2 Description of the monitoring plan: + No monitoring for leakage. + For emission reduction: The generated electricity from the project is sold to the National electricity utility (EVN), for the complete project lifespan, for which the promoter has entered into a long term power purchase agreement (PPA) with the national power utility. Thus throughout the project cycle (crediting period) and beyond, the electricity generated from the project will be monitored by both the project proponent and the third party (EVN). The generated electricity, before entering into the grid, at the grid interconnection point will be measured by digital, kilowatt hour (kWh) meter on monthly basis and will be documented both on paper as well as in electronic form. The generation records will be signed by the officials from project proponent and third party (EVN). This generation record will form the basis of payment by EVN to the project proponent. Such records will be maintained and would be made available on demand throughout the crediting period of the project. To address all O&M issue, the project proponent will appoint the RCEE Energy and Environment JSC to monitor required parameter(s) after commissioning. RCEE will station a person in charge at the project site and will be a participant for monitoring the generation of PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 30 electricity. All the data collected will be recorded and preserved throughout the crediting period of the project. No additional CDM related training is required at any level as the monitoring data required for the verification are taken from the regular digital meters and cross checked with the log books and receipt of sale of electricity. Project Proponent / Management Song Giang HP JSC Project Manager In Charge Figure 3: Reporting structure B.8 Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies) Date of completion of the application of the baseline study and monitoring methodology June 15, 2006 Name of person/entity determining the baseline RCEE Energy & Environment Joint – Stock Company (Website: www.rcee.org.vn) The individuals developing the baseline are: Mr. Nguyen Ba Hai – [email protected] Dr. Nguyen Van Hanh – [email protected] PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 31 SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity: C.1.1. Starting date of the project activity: Starting date of construction: 01 December 2006 Starting date of operation: 01 December 2009 C.1.2. Expected operational lifetime of the project activity: 30 years C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period Not Applicable C.2.1.1. Starting date of the first crediting period: C.2.1.2. Length of the first crediting period: Not applicable Not applicable C.2.2. Fixed crediting period: 10 years C.2.2.1. Starting date: C.2.2.2. Length: 01/12/2009 10 years PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 32 SECTION D. Environmental impacts D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: D.1.1. Environmental impacts The area being occupied by the project is only natural forest land (it is mainly poor forest, brushwood, treeless hill and pebble areas). There are neither households nor places of cultural and historical interest in the project area. The project comprises a diversion powerhouse including dam, penstocks and powerhouse buildings, all of them are located on land of Khanh Trung commune, Khanh Vinh district, Khanh Hoa province. Mean annual discharge arriving to dam site is 5.96m3/s corresponding to a total annual flow of 188x106 m3. Due to sloping and narrow topographical conditions, the reservoir will be small compared with total flow discharge therefore it can not regulate the flow between seasons but only on a day-to-day basis. With such a small regulated storage, the powerhouse will generate power from the natural flow arriving at the dam site. During the dry season when average daily flow is smaller than designed discharge, the powerhouse will operate on daily regulation mode to generate power in several hours. During flood season when the average daily discharge is larger than designed discharge, the powerhouse will operate at its maximum capacity (installed capacity), redundant discharge will be allowed to pass by spillway. Due to the fact that the Song Giang project will make use of difference in natural head water to generate power, headwork components comprises the dam which will divert the flow to intake structure then to the tunnel 4175m long to fore-bay and to penstock before entering turbines housed situated inside the powerhouse. Since the storage created by the reservoir is small, the reservoir will be similar to a large river section of 500m in length; therefore it will not cause submergence of land, nor any infrastructure or vegetation of forest land areas. Table 13: Summary of land occupation of the project No. 14 Description Unit Amount 1 Compensated water level m 422 2 Total area of reservoir (compensated by water-level)14 ha 3.52 1- Forestry land (natural forest) ha 2.68 This is the maximum area of the reservoir during the wet season. The 2 ha mentioned earlier is the size of the reservoir under normal hydrological situation PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 33 - Poor forest ha 1.36 - Sapling forest ha 1.32 2- River, stream, pebble areas ha 0.84 3 Heading area (poor forest) ha 1.0 4 Power lines ha 41.1 1- Forestry land (natural forest) ha 39.0 - Poor forest ha 26.5 - Mixed forest ha 10 - Unused land ha 2.5 2- River, stream, pebble areas ha 0 3- Farm land ( occupied forest land) ha 2.1 - Cashew trees ha 1.6 - Crops ha 0.5 Powerhouse ha 2.0 - Mixed forest ha 2.0 Total ha 47.62 5 6 (Source: Survey results in Junuary/2005- Electricity Construction & Consultancy Company No.4) a. Construction period Impacts on water environment The construction of a dam will create only a small reservoir, area 2 ha, land occupied mainly river, streams and pebble areas. Since it can only regulate between days, Giang river will not be affected in quality and quantity, content of dissolved oxygen as well as other chemical content as pH, turbidity, etc... will not be changed. Water environment will be the least affected by the project construction. Impacts on air environment Dusts and noise will be generated in the period, but populated areas are so far from the project site that it will not impact on the life of the inhabitants. The project will use water to generate power therefore it will not impact on air environment. Impacts on biological system: As the data on the above table shows, the total occupied area of the project is 47.62 ha (in which comprises of forest land, farm land, river, stream and pebble area), however those are mainly poor forest areas and unused land so impacts of biological system are insignificant. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 34 For fauna, construction and activities of workers will impact on animal system in the area. But when the plant comes into operation, water reservoir makes climate conditions in the area are better than before so biological system will grow faster and better then animals will return. b. Operation period Impacts on water and air environment Since the reservoir can only regulate between days, Giang river will not be affected in quality and quantity, content of dissolved oxygen as well as other chemical content as pH, turbidity, etc... will not be changed. Impacts on natural resources and biological systems When the project is available during dry season, discharge on the river is small, most of the inflow will flow through dam to tunnel, penstock down to powerhouse, this river section is almost dried, and the flow will be formed by streams from two banks. However, the area from dam site to powerhouse is found with no population or any cultivated land area of local resident. Therefore bad impacts on economic and production activities will be minimal. D.1.2. Social and economic impacts + Negative impacts: The main negative impact is land occupation of 47.62 ha. Those are mainly poor forest area and unused land so impacts of biological system are insignificant. + Positive impacts: Khanh Hoa is fairly developing province in the South of Vietnam with natural area of − 5,198.2 km2, population by the end of 2004 of 1,111,300 people and GDP of about 11771.4 billion VND (about 740 million USD) in 2004. When the proposed project comes into operation, average 12.36 billion VND (tax) per year will be added to the local budget, make up 0.105 % of the province’s GDP of 2004. In addition, it will contribute to completion of traffic system in the area by newly constructing or improving roads and bridges; create favourable conditions to local people living and production, goods transport, travel and exchange between areas in the territory and reduce the cultural and economic gap between ethnics and areas in the region; especially more jobs during the period of construction and operation will be created on-site; demands on food and supplies will promote agricultural goods items and commercial services among local communities; the local economic structure will be growing from rice cultivation to husbandry and aquaculture. These will largely push forward economic development and improve living standard of the province and nearby communes. In addition, the proposed project will supply electricity to nearby communes directly from plant since the project is planned to share a part of electricity generated for self use to these communes. Thus the proposed project will contribute the solution of basic needs -road and electricity - for above mentioned communes. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 35 D.1.3. Environment and social impact assessment and comparison As regards the environment and social assessment, the project sponsor, in the feasibility study document, has given the following impact assessment table: Table 14: Environment and social impact assessment and comparison No Activities which may impact on environment Project duration Construction period Operation period Positive Negative Positive Negative I Natural environment 1 Water Environment O - ++ - 2 Air Environment O - + - 3 Vegetation cover O - ++ O 4 Animal systems O -- + O 5 Land O -- O - II Economic – social environment 1 Economic activity ++ O ++ O 2 Agriculture O O O O 3 Transportation O - ++ O 4 Trade and service ++ O + O 5 Life level of inhabitants O O + O 6 Culture O - ++ O Note: - : Minimal or temporary adverse impacts -- : Strong or long – term adverse impacts + : Minimal or temporary profitable impacts ++ : Strong or long – term profitable impacts O : None D.1.4. Mitigation solutions a. Construction period Waste collection system: The wastes generated during the construction period will be handled in a most hygienic way and shall be disposed in a planned manner. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 36 After construction of headwork, intake, powerhouse and access road, the areas will be cleaned, including replantation of tree and create supporting slopes to prevent sliding and erosion. Dump of solid waste materials will be levelled to grow trees. Waste water treatment system: quantity of waste water is limited, mainly caused by sand/soil washing and hence no impacts to environment are forecasted. Water quality of Giang River will not be changed when the Song Giang 2 plant is constructed. However to ensure water quality of Giang River, local residents shall be adequately informed on how to keep the water source clean including its importance. Minimising noise and dust: During the construction, water will be sprayed in and around construction areas. The cultivated land area to be occupied for reservoir component shall be compensated satisfyingly. Reservoir area shall be cleaned before it is stored water Capacity building to workers on protection of forest and wild beasts Capacity building to workers on safety at work and it supplies workers with equipments at work. Medicine and health equipments are stored to meet demands of workers on common epidemic diseases as: malaria, fever, digestion disease…etc b. Operation period Protection methods: Instrumentation observing permeability, dam deformation will be provided together with fire fighting devices. Environmental observation station will be constructed in downstream of powerhouse to observe climate patterns, water quality in project area when the reservoir is available. Forecasting impacts on environment and proposing mitigation methods will be continuous efforts applied by the project activity to mitigate impacts to the environment. D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: Director of Khanh Hoa province Department of Natural Resources and Environment confirmed that Song Giang Hydro Power Joint – Stock Company (Project sponsor) submitted the registration document on environmental standard conformation of the Song Giang Hydropower Project on Giang river, Khanh Vinh district, Khanh Hoa province on May 6th, 2005. Project sponsor has the responsibility to strictly implement all the contents stated in this registration document on environmental standard conformation. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 37 The registration document on environment standard conformation is the basic for the State Environmental Management Authorities to inspect the environmental protection of the project. After completing all project’s articles on environment, the project sponsor has to report in written on environmental monitoring results to Department of Natural Resources and Environment for management and inspecting. SECTION E. Stakeholders’ comments E.1. Brief description how comments by local stakeholders have been invited and compiled: According to the regulation of International Cooperation Department of Ministry of Natural Resources and Environment, which was designated as a Clean Development Mechanism National Authority (CNA) in Vietnam, the following organizations are the stakeholders of the proposed project, whose comments should be involved: − Song Giang Hydro Power Joint Stock Company − The People’ committee of Khanh Hoa province (local authorities) − Department of Natural Resources and Environment of Khanh Hoa province All documents related to the project were sent to the organizations mentioned above to receive their comments. Beside these comments, following the international CDM modalities, the comments of commune’s representatives were colleted. These comments were received by project sponsor during meetings with the communes’ representatives. The proposed project is solely located in Khanh Trung commune. Communes’ representatives at these meetings were: Chairman of Commune’s Council. The members of Council are elected by commune people voting. So the Council really represents the people’s opinion. Chairman of Commune’s People Committee (CPC). CPC is lowest administration level in the Vietnamese administrative hierarchy. The Chairman of CPC is elected by the Council so he well represents the commune’s interest. Local side: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board − Chairman of Commune’s People Committee. − Deputy Chairman of Commune’s People Committee − Party secretary of communes − Deputy Party secretary of communes page 38 Project sponsor side: - Mr. Dinh Xuan Hai Sang – General Director - Mr. Tran Van Nghia –Manager of Finance department - Ms. Tran Thi Thanh Hai – Manager of general co-ordinator office E.2. Summary of the comments received: All organizations understood that the project contributes to sustainable development and environment protection of Vietnam, especially increase in local budget and reduction of poverty; hence they fully support the project and respond with their comments promptly. The comments of the Communes representative are summarized as follow: − The proposed hydropower project is a clean industrial project in this mountainous and remote area and will contribute to socio-economic development of commune and region. − The good impacts are expected from infrastructure improvement such as road, electricity access, irrigation, also from better contact and exchange possibilities. (These will improve people knowledge (including Vietnamese language efficiency) and market access). − Forest conservation, environment protection. − Project sponsor is requested to coordinate with local authorities to: Plan, re-allocate cultivation land to farmers, and create favourable condition for affected peoples exploiting virgin land into new cultivating land, all with preferential policy. Construct new public welfare works such as primary school, small clinic, potable water system... viewing peoples life stability and improvement. E.3. Report on how due account was taken of any comments received: The organization’s comments are carefully reviewed. All of them are positive comments. The project sponsor is committed to create jobs for commune people. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 39 Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Song Giang Hydro Power Joint – Stock Company Street/P.O.Box: Number 7 Nguyen Chanh street, Loc Tho ward, Nha Trang city, Khanh Hoa province Building: City: Nha Trang city State/Region: South area Postfix/ZIP: Country: Viet Nam Telephone: + 84 – 058 - 524814 FAX: + 84 – 058 – 524814 E-Mail: URL: Represented by: Title: Managing director Salutation: Mr Full Name: Dinh Xuan Hai Sang Department: Mobile: Direct FAX: + 84 – 058 – 524814 Direct tel: + 84 – 058 - 524814 Personal E-Mail: [email protected] PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board Organization: RCEE Energy and Environment Joint – Stock Company Street/P.O.Box: Land 62, Nguyen Chi Thanh street, Ha Noi, Viet Nam Building: City: Ha Noi State/Region: Northern area Postfix/ZIP: Country: Viet Nam Telephone: + 84 – 4 – 7733686 FAX: + 84 – 4 – 7734022 E-Mail: [email protected] URL: http://www.rcee.org.vn Represented by: Title: Project coordinator Salutation: Ms. Full Name: Le Thi Bao Ngoc Department: Mobile: + 84 – 914309414 Direct FAX: + 84 – 4 – 7734022 Direct tel: + 84 – 4 – 7733686 Personal E-Mail: [email protected] page 40 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board Organization: Danish Ministry of Foreign Affairs Street/P.O.Box: Asiatisk Plads 2 Building: City: Copenhagen State/Region: Postfix/ZIP: DK- 1448 Country: Denmark Telephone: +45 33 92 00 00 FAX: +45 32 54 05 33 E-Mail: [email protected] URL: www.um.dk Represented by: Title: Head of Department Salutation: Mr. Full Name: Geert Aagaard Andersen Department: Environmental Secretariat Mobile: Direct FAX: + 45 33 92 19 97 Direct tel: +45 33 92 01 56 Personal E-Mail: [email protected] page 41 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 42 Annex 2 INFORMATION REGARDING PUBLIC FUNDING Not applicable PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 43 Annex 3 BASELINE INFORMATION VIETNAM ELECTRICITY GRID DATA Table 15: Electricity output of the Vietnam grid during 2001 – 2010 No Source Cap. Co. time15 Electricity output, GWh MW Year 2001 2002 2003 2004 2005 2006 2007 I Hydropower 1 Da Nhim 160 1964 1096 915 1005 1005 1005 1005 1005 2 Thac Ba 108 1973 401 364 414 414 414 414 414 3 Tri An 400 1989 2179 1675 1658 1658 1658 1658 1658 4 Hoa Binh 1920 1994 8447 8010 8067 8067 8067 8067 8067 5 Thac Mo 150 1995 926 665 882 882 882 882 882 6 Vinh Son 66 2000 215 240 201 201 201 201 201 7 Song Hinh 70 2000 441 320 350 350 350 350 350 9 Ham Thuan 300 2001 923 910 907 907 907 907 907 10 Da Mi 175 2001 401 540 575 575 575 575 575 8 Yaly 360 2000-2001 2975 3200 3558 3558 3558 3558 3558 11 Can Don 78 2003 266 266 266 266 266 12 Se San 3 260 2005-2006 568 1137 1137 13 Bac Binh 35 2006 44 144 14 Se San 3A 100 2006 141 441 15 Srok Phu Mieng 54 2006 72 243 16 Tuyen Quang 342 2006-2007 225 1296 17 Dai Ninh 300 2007-2008 272 18 A Vuong 1 170 2007 115 19 Quang Tri (Rao Quan) 70 2007 71 20 Ban La 300 2008 21 Srepok 3 180 2008 15 Commissioning time 2008 1005 414 1658 8067 882 201 350 907 575 3558 266 1137 144 441 243 1296 1143 715 271 328 198 2009 1005 414 1658 8067 882 201 350 907 575 3558 266 1137 144 441 243 1296 1143 715 271 1055 598 2010 1005 414 1658 8067 882 201 350 907 575 3558 266 1137 144 441 243 1296 1143 715 271 1055 598 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board 22 23 24 25 26 27 28 29 30 31 32 33 Plei Krong Cua Đat Buon Kuop An Khe + Ka Nak Dong Nai 4 Dong Nai 3 Ban Chac Ha Song Ba Se San 4 Thuong Kon tum Con river 216 Tranh river 2 Total hydropower II Coal power II.1 Coal 1 Uong Bi 2 Ninh Binh 3 Pha Lại 1 4 Pha Lai 2 5 Na Duong 6 Cao Ngan 7 Cam Pha 8 Uong Bi 1&2 9 Hai Phong 10 Quang Ninh 11 Expansion Ninh Binh 12 Nghi Son Total coal power II.2 Gas power 16 page 44 110 97 280 163 270 240 200 250 330 220 70 120 2008 2008 2009-2010 2009 2009-2010 2009-2010 2010 2010-2011 2010-2011 2010-2011 2010 2010 175 165 575 405 432 175 135 120 18,004 16,839 17,883 17,883 18,451 19,502 21,602 24,139 26,768 100 1976 105 1977 440 1986 600 2002 110 2004 100 2005 300 2005 600 2005-2009 300 2006 1200 2007,2008 300 2008 600 2009,2010 Option 1: But it have already replaced by the proposed project 999 2219 950 2130 2430 1007 1887 3627 838 1365 3627 605 734 1024 3627 604,5 604,5 1000 814 3,218 5,510 6,521 6,435 8,408 225 337 3551 500 500 1300 1855 545 419 390 3472 500 500 1800 2006 2275 330 424 373 3512 500 500 1800 2125 3512 1878 334 386 331 3196 500 500 1800 2095 3343 2811 1681 1405 8,813 11,692 14,958 18,048 575 405 1348 695 906 794 748 544 473 414 112 239 32,179 387 332 3203 500 500 1800 3424 3203 3369 1684 3369 21,771 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board 1 2 3 4 5 6 7 8 9 10 Ba Ria 378 Phu My 1 1090 Phu My 2-1 930,4 Phu My 4 450 Phu My 2.2 720 Phu My 3 720 Ca Mau 720 Nhon Trach 1200 O Mon 1 600 O Mon 2 750 Total gas power II.3 FO power 1 Hiep Phuoc 375 2 Thu Đuc 165 3 Can Tho 33 4 O Mon 1 600 Total FO power II.4 DO power 1 Turbine gas Thu Duc 70 2 Turbine gas Can Tho 140 Total DO power Total thermal power III Imported TOTAL Baseline emissions factor data Year OM BM Emission factors page 45 1999 2001,2002 2003,2005 End 2004 9/2004 1/2004 2005 2007-2009 2005-2006 2009-2010 2001 1972 1999 2005,2006 1992 1999 1644 1074 2375 2210 4160 2314 1205 5926 4561 992 6475 6538 935 6623 7010 1305 6450 7669 1277 6308 7500 1291 6381 7586 1175 5807 6904 1178 5819 6919 7435 9462 9262 9222 9335 9444 9462 1261 4494 4395 1736 4446 3512 3343 5,093 4046 4795 3043 1533 8,684 11,692 21,440 25,291 29,180 30,438 35,894 36,747 4055 6406 3049 4598 41,486 2122 881 236 2100 950 210 1100 97 222 97 222 91 25 1,419 319 99 27 3305 3,431 91 25 3,260 101 27 2156 2,284 100 27 3,239 98 123 833 1,054 127 116 116 276 325 45 45 45 48 47 47 43 465 280 293 291 190 107 105 106 97 741 605 338 336 235 155 152 153 140 12,291 18,059 19,970 28,530 34,988 40,432 45,713 51,132 55,051 434 434 30,295 34,898 37,853 46,413 53,439 59,934 67,315 75,705 82,253 43 97 140 63,513 434 96,126 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 885 102 780 569 727.3 483 631 516 617.3 503.0 585 606 613 197 613 109 633 267 641 282 493.56 674.65 605.2 573.5 560.2 595.79 404.74 361.25 449.56 461.17 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 46 Table 16: Fuel consumptions for electricity generation during 2001 – 2010 No Source I Hydropower II Thermal power Cap. Com. time MW Year Fuel consumption 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 II.1 Coal power, kt 1 Uong Bi 100 1976 427 406 430 358 314 96 179 181 165 165 2 Ninh Binh 105 1977 413 393 416 347 304 93 173 175 160 160 3 Pha Lại 1 440 1986 1272 1220 1081 782 587 193 223 214 190 190 4 Pha Lai 2 600 2002 1081 1614 1614 1614 1580 1545 1563 1422 1425 5 Na Duong 100 2004 314 314,5 260 260 260 260 260 6 Cao Ngan 100 2005 314,5 260 260 260 260 260 7 Cam Pha 300 2005 445,0 578,5 801,0 801,0 801,0 801,0 8 Uong Bi 1&2 600 2005,2009 362,2 825,5 892,7 945,6 932,3 1523,7 9 Hai Phong 300 2006 10 Quang Ninh 1200 2007-2008 11 Expansion Ninh Binh 300 2008 12 Nghi Son 600 2009, 2010 Total coal II.2 Gas power, Mm 1 Ba Ria 242,5 1012,4 1562,8 1487,6 1425,3 146,8 835,7 1250,9 1499,2 148,6 748,0 749,4 625,2 1499,2 2,112 3,100 3,541 3,415 4,255 4,128 5,493 6,947 8,302 9,958 281 284 259 259 3 340 1999 431 486 265 218 206 287 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 47 2 Phu My 1 1090 2001, 2002 3 Phu My 2-1 930,4 2003, 2005 4 Phu My 4 450 End 2004 5 Phu My 2.2 715 9/2004 718,5 1/2004 7 Ca Mau 720 2005 8 Nhon Trach 300 2007-2009 9 O Mon 1 600 2005, 2006 10 O Mon 2 750 2009, 2010 6 Phu My 3 Total gas 301 832 1185 1295 1325 1290 1262 1276 1161 1164 665 648 1168 1517 1402 1534 1500 1517 1381 1384 1933 2460 2408 2398 2427 2455 2460 252 899 879 889 809 811 347 702 959 1281 839 1148 1920 6,667 7,934 8,172 9,279 1,397 1,966 2,618 4,963 5,645 6,418 II.3 FO power, kt 1 Hiep Phuoc 375 2001 552 546 286 2 Thu Đuc 165 1972 246 266 27 27 27 29 28 28 25 25 3 Can Tho 33 1999 66 59 62 62 34 8 7 8 7 7 4 O Mon 1 600 2005, 2006 188 487 747 Total FO II.4 864 871 375 89 249 524 782 36 32 32 DO power, kt 1 Turbine gas Thu Duc 70 1992 80 95 13 13 13 14 14 14 13 13 2 Turbine gas Can Tho 140 1999 136 82 85 85 55 31 31 31 28 28 216 177 98 98 68 45 45 45 41 41 Total DO PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 48 Annex 4 MONITORING INFORMATION PLEASE REFER TO SECTION B7 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 49 Annex 5 STAKEHODERS’S COMMENT SOCIALIST REPUBLIC OF VIET NAM KHANH HOA PROVINCE Independence - Freedom - Happiness PEOPLE’S COMMITEE ------------------------------------------------------------No: 6879/UBND Ref. Assistance to Song Giang Nha Trang, November 10, 2006 Hydropower JSC for CDM project implementation To: International Cooperation Department – Ministry of Natural Resources and Environment (Viet Nam’s Clean Development Mechanism Designated National Authority) As proposed by Song Giang Hydropower Joint Stock Company in Note No. 235/CVCTCPSG dated October 30, 2006 on CDM approval for Song Giang 2 Hydropower Project, following are comments from Khanh Hoa Province People's Committee (Khanh Hoa PPC): Song Giang 1 & 2 Hydropower Project located in Khanh Vinh district, Khanh Hoa province is within the national general plan for small and medium hydropower plants approved by the Ministry of Industry (MoI); at the same time, the Province People's Committee and the Ministry of Industry have agreed to permit Song Giang Hydropower Joint Stock Company to be the project investor. This hydropower project meets local socio-economic requirements with high feasibility. At present, Song Giang Hydropower Joint Stock Company is carrying out the construction of Song Giang 2 hydropower plant. Khanh Hoa PPC proposes the Department of International Cooperation – Ministry of Natural Resources and Environment to consider and approve Song Giang Hydropower Joint Stock Company to develop CDM project for Song Giang 2 Hydropower Project in accordance with the state’s current regulations. With best regards, Attn: - As above MONRE MoI Province People's Committee DOI, DONRE Song Giang Hydropower JSC (No. 7, Nguyen Chanh, Nha Trang) - Archive: VP – HB. Dienluc 235 (SONGGIANGCDM) ON BEHALF OF THE PEOPLE'S COMMITTEE SIGN ON BEHALF OF THE PRESIDENT VICE-PRESIDENT (Signed & sealed) Nguyen Trong Hoa PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 50 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board SONG GIANG HYDROPOWER JOINT STOCK COMPANY -------------------------------No: 212/CV - CTCPSG page 51 SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ------------------------------ Nha Trang, July 17, 2006 Ref. CDM application for Song Giang 1 & 2 Hydropower Project To: International Cooperation Department – Ministry of Natural Resources and Environment (Viet Nam’s Clean Development Mechanism Designated National Authority) Song Giang Hydropower Joint Stock Company in co-operation with RCEE Energy and Environment Joint Stock Company has developed the CDM Project Design Document (PDD) of Song Giang 1 & 2 Hydropower Project. We with pleasure submit the Project Idea Note/ PDD of this project for your consideration. If this the project document meets all of your requirements, we hope to get your Approval Letter for this Project so that Song Giang Hydropower Joint Stock Company can be able to carry out the next steps. With best regards, List of attached documents: 1. Project Idea Note - English 2. Project Idea Note - Vietnamese 3. Company’s letter sent to International Cooperation Department 4. Company’s letter sent to the Province People’s Committee 5. Province People’s Committee letter submitted to the International Cooperation Department. Attn: − As above − RCEE Energy and Environment JSC. − Company Office (copy) SONG GIANG HYDROPOWER JOINT STOCK COMPANY Director Dinh Xuan Hai Sang PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 52 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 53 SONG GIANG HYDROPOWER JOINT STOCK COMPANY -------------------------------No: 213/CV - CTCPSG SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ------------------------------ Nha Trang, July 17, 2006 Ref. CDM application for Song Giang II Hydropower Project To: Khanh Hoa People’s Committee Song Giang Hydropower Joint Stock Company in co-operation with RCEE Energy and Environment Joint Stock Company has developed CDM Project for Song Giang II Hydropower Project. We with pleasure submit the CDM project development study document for your consideration. If the project document meets all of your environmental requirements in accordance with the local development, we hope to get your Approval Document so that Song Giang Hydropower Joint Stock Company can be able to carry out the next steps. With best regards, SONG GIANG HYDROPOWER JOINT STOCK COMPANY Attn: Director − As above − Company Office (copy) Dinh Xuan Hai Sang PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 54 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 55 KHÁNH HOÀ PEOPLE’S COMMITTEE THE SOCIALIST REPUBLIC OF VIETNAM SERVICES OF RESOURCES AND ENVIRONMENT Independence – Freedom – Happiness No. 662/TMMT ----------o0o--------- Nha Trang, May 10, 2005 CERTIFICATION OF DOCUMENTATION REGISTERED FOR MEETING ENVIRONMENTAL STANDARDS Sông Giang 2 Hydro-power Project Khánh Trung commune, Khánh Vĩnh district, Khánh Hòa province THE DIRECTOR OF THE SERVICES OF RESOURCES AND ENVIRONMENT OF KHÁNH HÒA PROVINCE CERTIFIES Article 1: Mr. Đinh Xuân Hải Sang, Vice-Director of Sông Giang Hydropower Joint-Stock Company (Liaison address: 05 Nguyễn Chánh, Lộc Thọ, Nha Trang, Khánh Hoà), submitted a documentation registering the meeting of environmental standdards on May 06, 2005. This is the Sông Giang 2 Hydro-power Project at Khánh Trung commune, Khánh Vĩnh district, Khánh Hoà province. Article 2: The Investor shall be responsible for carrying out correctly all the following contents and requirements stated in the documentation registered for meeting environment standards: Carrying out the plan for supervising the environmental quality of the whole project area during construction and operation of the plant according to the contents in the Documentation registered for meeting environmental standards. Article 3: The documentation registered for meeting environmental standards shall serve as basis for State environmental protection agencies to double-check the Investor’s performance in environmental protection. Article 4: In case of alterations or needed supplements of alternatives and equipment, the Investor must report in writing to State environmental protection agencies for inspection. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 56 p.p. SERVICES OF RESOURCES AND ENVIRONMENT OF KHÁNH HOÀ Mai Đức Chính Director (signed and stamped) c.c. − Sông Giang Hydropower Joint-Stock Company − Services of Planning and Investment − Filing system PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 57 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 58 SOCIALIST REPUBLIC OF VIETNAM Independence, Freedom, Happiness MINUTES OF REFERING OPINION OF PEOPLE’ MEETING (Attn: the influences on economy – society and environment of Song Giang hydropower project No.2) The meeting takes place on October 25, 2006 at Khanh Trung district, Khanh Vinh commune, Khanh Hoa province, between representative of the Investor of Soâng Giang Hydropower project No.2 and representative of Khanh Trung commune’s people, referring to the socioeconomic and environmental influences of Soâng Giang hydropower works No.2 with capacity of 30MW. I. Representative of Khanh Trung commune’s people and administration 1. Mr. Cao Xuan Quang - President of commune 2. Mr. Nguyan Ngọc Huong – Vice - president of commune 3. Mr. Cao Ty Den – Secretary of commnue 4. Mr. Cao Xuan Thuy – Deputy secretary of commune II. Sông Giang Hydropower Joint-Stock Company 1. Mr. Đinh Xuân Hải Sang – Director 2. Mr. Traàn Vaên Nghóa – Manager of Finance – Accounting Department 3. Ms. Traàn Thò Thanh Haûi – Manager of General Department Mr. Đinh Xuân Hải Sang – representative of Investor – Sông Giang hydropower joint – stock company stated at the meeting with feasible points and influences on economy – society and environment of the project. After discussing and questioning, the meeting approved of the proposal as follows: 1. Socioeconomic influences a. Positive points - As there are no residential areas in this project scope, the project has no influence to residents. And there is no influence on potentiality of economic development in Khanh Trung commune. - The cultural life in Khanh Trung commune will be gradually improved, education quality will be developed, hence intellectual standards of the people will also be improved. - Creating jobs for people in area. - Creating premise for building infrastructure. Industrialization and modernization will become to shorten. b. Limited points Crowding around construction area and the long lasting execution time (about 3 years) can lead to negative actions such as hunting the wild animals, stealing and social evils if there is no good measure of management. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 59 2. Environmental influences a. Positive points - There are influences on the climate in area. However, these are inconsiderable. - After hoaring water, hydrogeological system of reservoir is stable, humidity in small area is improved and stable. Botanical systems that like humidity will improve and creat conditions for animals, birds living near the reservoir ( especially the species that like water). - This project can make biology system near the reservoir gradually plentiful, creat the good landscape for developing green tourism. This is appropriate to the direction of developing tourist in Khaùnh Hoaø province . b. Limited points - When the works is constructed, there are waste water arising such as domestic waste water, waste water drained from construction and cleaning machines… - Water quality may have changed (based on the DO contain in water). - There are influences of exhaust emmisions, smokes, dusts, noises in the period of construction in project scope. However, these effects will just happen in the period of construction. 3. Effects on the actual state of land utilization This project will make 2.68 ha of forest land be sunk and the purpose of land utilization be changed. Conclusions: 1. All the reprentatives of Commune supported the policy of works construction with the contents presented in the Report of the Investor. 2. Suggestion: the project should be quickly carried out and put into effect so that the living standards of people will be soon improved. On behalf of Sông Giang Hydropower Joint-Stock Company Director Đinh Xuân Hải Sang (sign and stamp) On behalf of Khanh Trung commune’s people Vice president Nguyễn Ngọc Hường ( sign and stamp) PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 60 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 61 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 62 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 63 Annex 6 LIST OF DOCUMENTS No Documents 1 Document No 6879/UBND dated 10/11/2006 from the People’s Committee of Khanh Hoa Province sent to Department of International Cooperation - Ministry of Natural Resources and Environment. 2 Request No.212/CV-CTCPSG dated 17/7/2006 from Song Giang Hydro Power Joint Stock Company send to Department of International Cooperation - Ministry of Natural Resources and Environment. 3 Document No 213/CV-CTCPSG dated 17/7/2006 from Song Giang Hydro Power Joint Stock Company send to Khanh Hoa People Committee on CDM application for Song Giang 2 hydro power project. 4 Document 662/ TNMT dated 10/5/2005 of Department of Natural Resources and Environment - Khanh Hoa province confirmed on registration for environment standard and satisfaction of Song Giang 2 hydro power project 5 Working minute with people committee – Stake holder comment.