Nam Chim Hydro Power Project CDM Project Design Document · PROJECT DESIGN DOCUMENT FORM (CDM PDD)...

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Nam Chim Hydro Power Project CDM Project Design Document

CDM Project Design Document

Version 1.0



CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 02 - in effect as of: 1 July 2004)

CONTENTS

A. General description of the project activity

B. Application of a baseline methodology

C. Duration of the project activity / Crediting period

D. Application of a monitoring methodology and plan

E. Estimation of GHG emissions by sources

F. Environmental impacts

G. 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 A.1. Title of the project activity:

Nam Chim Hydro Power Project

Version 1.0

June 15, 2006

A.2. Description of the project activity:

The Nam Chim Hydropower Project is located on the Chim stream, Xim Vang Commune, Bac Yen District, Son La Province. This project is located a spot 320 km West of Hanoi capital, Vietnam. It is a run-off-river, grid connected hydro power station of 2 units of 8 MW each. The estimated annual gross power generation is about 58.26 million kWh and about 57.09 million kWh of power will be fed to the national grid. The project will have a very small reservoir with area of only 18 ha and a power density rate of 88.90 W/m2, very much higher than the level of 10 W/m2.

Chim stream is the first branch of Da river, which rises from high mountain areas with an elevation of 1900 m in Bac Yen district, Son La province. It flows from the North East direction towards the South West where it meets Da river at an elevation of about 100m in Hoc village, Xim Vang commune, Bac Yen district, Son La province and drains a catchment of 52.20 sq. km.

The objective of the Nam Chim Hydro power project is to utilize hydro power resources in the Chim stream to generate electricity and sell the generated power to the Electricity Corporation of Vietnam (EVN).

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 Son La 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.

− Son La is a poor province in the North West of Vietnam with natural area of 14,055 km2, occupy 4.27% area of whole country, population by the end of 2004 of 974,500 people and GDP of about 2462.9 billion VND in 2004. The Nam Chim hydropower project will plays an important role in meeting the requirements of sustainable development desired by the local government. When the project comes into operation, it will provide a new and a vital force in the economic development of local administration, especially industrial development and building infrastructure to improve living standard of local people. In addition, average 6.7 billion VND (tax) per year will be added to the local budget, make up 0.272 % of the province’s GDP of 2004.



− The majority of the population in Xim Vang commune, Bac Yen district belong to ethnic minority (Mong people). This is one of the poorest communes of province, which has low production standards and poor infrastructure as well. To construct Nam Chim hydro power project, the investor has to construct a road from Chim Ha village, Chim Vang commune to the Nam Chim plant in order to transport and storage building material, equipments. The current road system will be upgraded benefiting travelling, business exchange and developing socio – economic of local populace and government. In addition, more jobs during the period of construction and operation will be created on site and local materials such as stone, sand, etc... will be used for the project. Thus the proposed project will contribute to the solution of basic needs – employment, road and electricity - for above mentioned commune.

− The project activity will reduce greenhouse gas (GHGs) emission by avoiding electricity generation and CO2 emissions from the national electricity grid. Total expected CO2 emission reduction from the proposed project has been estimated to the tune 331,498 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 reserve 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 the 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)

Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No)

Vietnam (Host) Song Lam Construction and Investment Company

Limited No

The contact for CDM project activity is:

Asia Carbon Vietnam

Address: Lane 62, Nguyen Chi Thanh Street, Hanoi, Vietnam

Phone: 84 4 7733686

Fax: 84 4 7734022

Email: [email protected] / [email protected]

A.4. Technical description of the project activity:

The Nam Chim project is a run-off-river hydro power station of 2 units of 8 MW. It is a high head plant of 446m. The water from the reservoir enters through the intake, into the head race, which runs under pressure. Before entering the penstocks, a surge tank is provided between the

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head race tunnel and the penstock. From the surge tank, the water flows under pressure in the penstock and then to the power house.

The main design parameters of the Nam Chim Hydropower plant are shown in below tables:

Table 1: Technical parameters of the Nam Chim Hydroelectricity plant

No. Items Symbols Units Values

I Hydrology

1 Catchment area Flv km2 52.20

2 Long-term average annual rainfall Xo mm 2300

3 Average flow Qo m3/s 2.13

4 Total amount of average annual flow Wo 106 m3 67.17

5 Specific runoff Mo l/s.km2 45

6 Check flood standard and flow (p=0.2%) Q0.2% m3/s 767

7 Design flood standard and flow (p=1%) Q1% m3/s 596

8 Firm flow frequency (p=85%) Q85% m3/s 0.5

9 Diversion standard and flow (p=10%) during construction

Q10% m3/s 9.88

II Hydro energy

1 Area of reservoir surface ha 18

2 Checked flood water level (p= 0.2%) MNLKT m 1,153.8

3 Designed flood water level (p= 1%) MNLTK m 1,153

4 Normal water level MNDBT m 1149

5 Dead water level MNC m 1147

6 Total storage capacity Vh 103m3 305

7 Active storage capacity Vhi 103m3 70

8 Dead storage capacity Vc m3 235

9 Maximum turbine discharge Qtbmax m3/s 4.20

10 Minimum turbine discharge Qtbmin m3/s 0.42

11 Maximum working head Hmax m 470.9

12 Minimum working head Hmin m 439.1



13 Calculated head Htt m 446.1

14 Installed capacity Nlm MW 16.0

15 Firm capacity Ndb MW 1.99

16 Number of unit set 2

17 Output of each unit MW 8.0

18 Long-term average annual generation Eo 106 kWh 58.26

19 Annual maximum load utilization hours hsd h 3641

III Project schedule months 28

Start: October 2006 to Completion: November 2008.

Table 2: Scale of the Nam Chim hydroelectricity plant

No Items Units Values

I Headwork

1 Dam (non-over flow)

Type of dam Concrete

Height of dam m 25

Length of dam m 70

Elevation of non-over flow m 1,154.2

2 Spill way

Overflow type Free flow

Clean water way m 36

Elevation of spillway crest m 1,149.0

II Water passage

1 Water intake

Dimension B x H m2 2.6 x 3.2

Elevation of intake threshold m 1142.0

2 Tunnel

Length m 1,239.5

Inner diameter (Do) m 1.8

3 Penstock

Type Steel



Length m 940

Inner diameter (Do) m 1.1

Number of penstock branch set 02

Inner diameter of penstock branch m 0.65

Thickness m 12÷24 mm

4 Hydro power plant

Elevation of erection floor m 677.85

Elevation of turbine floor m 676

Max tailrace water level m 674.68

Min tailrace water level m 673.47

Dimension of plant m2 23.12 x 35.4

5 Tailrace water channel

Profile, rectangle m

Length of channel m 45.85

Width of canal bed m 2.0

Elevation of canal head bed m 672.47

III Outdoor switch yard 35 KV

Elevation yard m 767.00

Dimension m2 17 x 31

IV Transmission line

Voltage kV 35

Number of transformer Set 2

Length m 32

V Access road

Length km 16

Width m 6.5



Project lay-out is shown as following:

Dam Tunnel

Surge tank

Power housePenstock

Tail water

Chim stream

National electricity grid

N=8x2=16MW

L = 1,239.5 m

L =

940

m

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.:

Son La province A.4.1.3. City/Town/Community etc:

Bac Yen district

A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page):

The Nam Chim Hydropower Project will be located on Chim stream, Xim Vang Commune, Bac Yen District, Son La Province. This project is located 320 km West of Hanoi capital, Vietnam. It is a hydro power station of 2 units of 8 MW each with an annual electricity output of about 58.26 million kWh. Chim stream is the first branch of Da river, which rises from high mountain areas with an elevation of 1900 m in Bac Son district, Son La province. It flows from the North East direction towards the South West where it meets Da river at an elevation of about 100m in Hoc village,



Xim Vang commune, Bac Yen district, Son La province and drains a catchment of 52.20 sq. km. The following map shows the exact location of the project. The project location is shown below:

Location of the project

Son La



NAM CHIM HP

A.4.2. Category(ies) of project activity:

The project belongs to the large scale CDM project. The project activity belongs to the scope number 1 and sectoral scope: 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:

A concrete gravity dam will be built for the project with a length of 70 metres which allows for a freefall head of 4.0 m with a rated capacity flow of 596 m³ per second. The structure allows for a dynamic volume of water of 70,000m³, which is preferably used to generate electricity in peak hours. The dam feature is a structure known as an antechamber, where a series of filtering bars have been installed to prevent the entry of garbage from the river. The antechamber connects with the tunnel through which the water flows to the high-pressure shafts.

The intake tunnel is built of reinforced concrete with a length of 1,239.5 metres and an internal diameter of 1.80 metres. A steel door is installed at the end of the tunnel for emergency shutdowns and following this steel door the water flow is divided into two parallel steel penstocks 940 metres long with inner diameters 1.1 metres. These high pressure shafts carry the water to the powerhouse in which two Pelton turbines are installed, through which the water

http://cdm.unfccc.int/DOE/scopes.html#1



flows to generate electricity with a total maximum capacity of 16 MW. The water is then redirected through exit channels back to the Chim stream.

A substation built next to the powerhouse converts the output voltage level from 35 kV, and the electricity is then transmitted 32 km via a transmission line to the Nam Chim substation where it is evacuated to the national grid.

Main equipments used in this hydro power plant are shown in following table:

Table 3: Main equipments used in this hydro power plant

Main equipments Symbols Units Values 1. Turbine + Type Pelton + Diameter of runner D1 cm 126 + Designed head Htt m 446.00 + Number of turbine Z set 02 + Turbine discharge Qtt m3/s 2.10 + Capacity Ntb kW 8,214 + Speed n rpm 750 + Elevation of runner center Zlm m 677.85 2. Generator + Type 3 phases, horizontal + Rated voltage kV 6.3 + Rated capacity Nmf kW 8,000 + Speed n rpm 750 + Efficiency η 97%

3. Governor + Type YT-1000 + Working capacity A kg.f.m 1000 + Oil pressure MPa 4 4. Valve of turbine + Type Globe + Diameter Do mm 650 + Designed head Hmax m 500 + Oil pressure equipment MPa 4 5. Transformer + 3 phases, 2 winds Globe + Dimension B x H m 17 x 31



The hydraulic equipments will be purchased from Vietnamese local factory and the electric-mechanical equipment will be purchased from Indian companies such as TATA company, VATECH company. The tender document is under preparation.

A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gas (GHGs) by sources are to be reduced by the proposed CDM project activity, including why the emission reductions would not occur in the absence of the proposed project activity, taking into account national and/or sectoral policies and circumstances:

How the emissions are reduced

The electricity generated by the proposed project will be supplied to the national electricity grid. It will replace fossil fuel dominated power supplied by power plants to the national grid. The result is that the implementation of the proposed project activity will avoid to the tune of 331,498 tCO2 during the crediting period of 10 years.

Vietnam is a developing country and being in the process of national industrialization and modernization. But its electricity system is not corresponding to its development. It was evident by the fact that Northern areas were short of about 10 GWh per day in the summer of 2005, leading to load shedding. No improvement is expected for this situation in 2006 and ensuing years. In addition, it is forecasted that Vietnam electricity demand will be 96,125 GWh in 2010 and 201,367 GWh in 2020 but the current total capacity of the national electricity system is expected only 11,907 MW or 53,439 GWh by the end of 2005.

To meet country’s rapidly increasing electricity demand, Vietnam government is encouraging any possibility of capacity addition independent on fuel used. Beside the big power plants planed in Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 20151, series of smaller power plants based on BOT, IPP, etc., schemes are constructed or licensed by the Vietnam government. These plants, beside hydropower, are mainly coal and oil fired power plants (because gas-fired plants depend on gas-pipeline). For example, Vietnam Coal Company has already planned to construct 3 coal-fired power plants (of which Na Duong and Cao Ngan power plants have been come into operation in January 2005 and December 2005 respectively), etc... The proposed project will contribute to this scheme and such kind of project (hydro power) will certainly retard the implementation of coal and oil fired power plants. In this case, we believe that the proposed project can substitute certain coal and oil fired power projects, and hence the GHG emission reductions may be high. But process of BOT and IPP project introduction, national wide, is not planned and remains regulated. Hence identifying which project in the baseline, the proposed project will substitute for remains difficult. Thus the national electricity grid has been chosen as baseline for estimating the emission reductions.

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 1177.92 gCO2 per kWh or 800 gCO2 per kWh3 respectively. But the national grid’s emission factor (NGEF) is only 580.61 gCO2 per kWh (see B.2); hence NGEF is much less than coal or oil emission factors.

1 Electricity of Vietnam (EVN) 2 Baseline calculation for Vietnam national electricity grid, Vietnam DNA 3 Appendix B of the simplified M&P for small scale CDM project activities (UNFCCC, 2003b)



Why the emission reductions would not occur otherwise

The emission reduction would not occur in the absence of the proposed project activity because of reasons as following:

1. There is no plan of constructing other power plants at this site.

2. Other renewable energy sources such as solar, wind here can not be utilized for electricity generation because of very poor potential and hence very high generation cost.

3. The national grid will be receiving power from different power plants (dominated by fossil fuel resources).

A.4.4.1. Estimated amount of emission reductions over the chosen crediting period:

Table 4: Emission reduction of the proposed project during the crediting period

Year Annual estimation of emission reductions, tCO2 eq

2009 33,149.8

2010 33,149.8

2011 33,149.8

2012 33,149.8

2013 33,149.8

2014 33,149.8

2015 33,149.8

2016 33,149.8

2017 33,149.8

2018 33,149.8

Annual average emission reduction 33,149.8

Total emission reduction during the crediting period of 10 years

331,498

A.4.5. Public funding of the project activity:

There is no public funding provided for the proposed project.



SECTION B. Application of a baseline methodology B.1. Title and reference of the approved baseline methodology applied to the project activity:

Baseline Methodology ACM0002 version 06 “Consolidated baseline methodology for grid-connected 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.

This baseline methodology shall be used in conjunction with the approved monitoring methodology ACM0002 version 06 “Consolidated monitoring methodology for grid-connected electricity generation from renewable sources”

B.1.1. Justification of the choice of the methodology and why it is applicable to the project activity:

The baseline 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 88.9 W/m2, much higher than the level of 4 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.2. Description of how the methodology is applied in the context of the project activity:

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.

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 5: Rate of low cost/must-run sources based on generation4

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 = ∑

∑j yj,

, ji,yj,i,

GEN

EF*Fji CO

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,

j refers to the power sources delivering electricity to the grid, not including low-operating 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.

4 Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 2015 – Electricity Corporation of Viet Nam



Table 6 shows electricity outputs and fuel consumptions of thermal power source5 in 3 years 2003, 2004 and 2005.

Table 6: Electricity outputs and fuel consumptions of thermal power sources in 2003 – 2005

Fuel type 2003 2004 2005

GWh 6,521 6,435 8,408

kt 3,541 3,415 4,255

Coal (OXID = 0.98 – IPCC)

NCV = 5500 kcal/kg-Vietnam

COEF = 26.8 TC/TJ –IPCC kt CO2 7,852 7,573 9,436

GWh 11,692 21,440 25,291

Million m3 2,618 4,963 5,645

Gas (OXID = 0.99 – IPCC)

NCV = 8500 kcal/m3 – Vietnam

COEF = 15.3 TC/TJ – IPCC kt CO2 5,175 9,809 11,157

GWh 338 336 235

kt 98 98 68

DO (OXID = 0.99 – IPCC)

NCV = 10200 kcal/kg – Vietnam

COEF = 20.2 TC/TJ – IPCC kt CO2 307 307 213

GWh 1,419 319 1,054

kt 375 89 249

FO (OXID = 0.99 – IPCC)

NCV = 9800 kcal/kg – Vietnam

EF = 21.1 TC/TJ – IPCC kt CO2 1,191 283 791

Imported electricity GWh 0 0 0

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

kWhgCOEFOM /17.6583

10*988,3410*597,21

10*530,2810*972,17

10*970,1910*524,14

2

6

9

6

9

6

9

=++

=

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:

∑

∑=

mym

mimiymi

yBM GEN

COEFF

EF,

,,,,

,

*

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 7: the difference between (1) and (2) in 2005 6

The five power plants 20% of the system generation

Name Capacity MW

Outputs GWh

Name Capacity MW

Outputs GWh

1. Cao Ngan, coal 100 604.5 1. Cao Ngan, coal 100 604.52. Na Duong, coal 110 604.5 2. Na Duong, coal 110 604.53. Phu My 2.2&3, gas 1466 9462 3. Phu My 2.2&3, gas 1466 94624. 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 78 266 Total 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 7, the five power plants that have been built most recently comprises the larger annual generation, and hence it is used. They are shown in details in the following table:

Table 8: Five power plants that have been built most recently at the time of 20057

Plants Capacity MW

Outputs GWh

Fuel consumption Emission kt CO2

1. Cao Ngan, coal 100 604.5 314.5 Kt Coal 6972. Na Duong, coal 110 604.5 314.5 Kt Coal 6973. Phu My 2.2&3, gas 1466 9462 2460 Million m3 gas 48624. Phu My 2.1& 2.1MR &4, gas 1435 7010 1402 Million m3 gas 27715. Can Don, hydro 78 266 - - 0

Total 3189 17,947 9028

6 Source: Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 2015 - EVN 7 Source: Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 2015 - EVN



Thus, the “Build Margin” emission factor will be

EFBM = 6

9

10.947,1710*028,9 = 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

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

Project emission

The proposed project has power density rate of 88.9 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

For detailed calculation, please see section E.



B.3. 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:

a. Description of emission reductions

As mentioned in A.4.4, the CO2 emission reduction will be calculated on basis 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 331,498 tCO2 during the crediting period (10 years).

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. 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 Bank8: “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 EIRR of the project is 10.73 % based on very optimistic assumptions. Such assumptions are described as following:

+ A significant assumption is that average electricity price is 4 Cent/kWh ((2.0 Cent/kWh in rainy season and 4.5 Cent/kWh in dry season). This is the maximum price among the range of electricity purchase price by Electricity Corporation 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 10.73 % 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 two barriers which also would prevent it from being carried out if it is not registered as CDM project:

1. Investment barrier

According to document No 02/NHNoSL issued in January 03, 2005 by Son La Bank Branch for Agriculture and Rural Development, if the project sponsor fully meet the credit terms and conditions and the current regulations of Viet Nam Bank of State and Viet Nam Agriculture and Rural Development Bank, they can get loan of 70 % of total project investment cost from the Son La Bank Branch for Agriculture and Rural Development. One of conditions is that the Nam Chim hydropower project must be feasible. But the project is not feasible as mentioned in Step 2 and hence can not obtain the loan. The project sponsor is negotiating with the bank since then which had delayed the project for a long time.

In addition, it also is very difficult for the project to obtain loan from other banks, funding organizations or investors in Vietnam because of that Vietnam is a developing country and being in the process of national industrialization and modernization, resulting in implementation of lager 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.

2. Policy barrier

The project is also facing the policy barrier due to the following three issues:

8 Guidelines for the Economic Analysis of Project, Asia Development Bank



− 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.

− EVN is still monopolistic in generation (now is reducing) and in transmission (is absolute monopolist). So it always remains as the buyer of electricity generated. 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 Lam Investment and Construction Company Ltd is not an exception. Step 4: Common practice analysis

Sub-step 4a: Analyze other activities similar to the proposed project activity

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 Nam Chim Hydro Power Project – third level hydro power project9, 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 9: Hydro power plants (3 – 30 MW) developed in Vietnam10

No Plant name Capacity MW

Elec. outputs GWh

Load factor

%

Co. time11 year

USD/kW

EIRR12

Sponsor

0 The project

16 58.26 41.6 2008 993 10.73 Song Lam Investment and Construction Company Ltd

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 Electricity

9 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. 10 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 11 Commissioning time 12 According to our calculation



Corporation of Vietnam

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 Rou

28 112 45.7 2007 1050 12.20 MienTrung Power Development and Investment Company

10 Ban Coc 18 80.6 51.1 2009 937.6 15.48 Hanoi Construction Corporation

Sub-step 4b: Discuss any similar options that are occurring

Hydro power projects shown in table 9 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 10.73 % to 12.22 % (with CER price of 8 USD/tCO2). This increase in EIRR has already made the project feasible and hence convinced the project sponsor. Especially, the project sponsor can convince the Son La Bank Branch for Agriculture and Rural Development to get loan.

+ The CDM revenues are the only income the Project Developers receive in US Dollar – 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 21% of the Project 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 funding from Agriculture and Rural Development Bank – Son La branch.

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.4. Description of how the definition of the project boundary related to the baseline methodology selected is applied to the project activity:

As described in the methodology, the project boundary includes:

+ The physical site of the Za Hung 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.

Nam Chim river

Nam Chim hydro power

plant

Construction of access roads, foundations, substation,

transmission lines

Vietnam National Electricity grid

Transmission and distribution

of power End user

Transport of project equipment

materials

Construction of project equipment

B.5. Details of baseline information, including the date of completion of the baseline study and the name of person (s)/entity (ies) determining the baseline:

B.5.1. Date of completion of the final draft of this baseline section (DD/MM/YYYY):

June 15, 2006

B.5.2. Name of person/entity determining the baseline

Asia Carbon Vietnam

The individuals developing the baseline are:

Mr. Tran Minh Tuyen – [email protected]



M.E. Le Quoc Hung – [email protected]

N.Yuvaraj Dinesh Babu – [email protected]





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 October 2006

− Starting date of operation: 01 November 2008

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:

Not applicable

C.2.1.2. Length of the first crediting period:

Not applicable

C.2.2. Fixed crediting period: C.2.2.1. Starting date:

01 January 2009

C.2.2.2. Length:

10 years



SECTION D. Application of a monitoring methodology and plan D.1. Name and reference of approved monitoring methodology applied to the project activity:

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.

D.2. Justification of the choice of the methodology and why it is applicable to the project activity:

This monitoring methodology is used in conjunction with the Baseline Methodology ACM0002 version 06 “Consolidated baseline methodology for grid-connected electricity generation from renewable sources”. And this monitoring methodology ACM0002 is applied because of following reasons:

+ The project will generate renewable energy based electricity from a hydropower sources. The project will have a very small reservoir having power density rate of 88.9 W/m2, much higher than the level of 4 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.

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.


D.2.1. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario D.2.1.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:

ID number (Please use numbers to ease cross-referencing to D.3)

Data variable

Source of data

Data unit

Measured (m), calculated (c) or estimated (e)

Recording frequency

Proportion of data to be monitored

How will the data be archived? (electronic/ paper)

Comment

1. Surface area at full reservoir level

Feasibility Study Report

m2 Measured At start of the project

100% Electronic. Archived data kept during the crediting period and two years after

Double check by documents approved by local authorities

D.2.1.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2equ)

Because the proposed project has power density of above 10 W/m2, so the project emission from the reservoir is zero. D.2.1.3. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHGs within the project boundary and how such data will be collected and archived :

ID number (Please use

numbers to ease cross-referencing

to table D.3)

Data variable Source of data

Data unit

Measured (m),

calculated (c),

estimated (e)

Recording frequency

Proportion of data to

be monitored

How will the data be archived?

(electronic/ paper)

Comment

2. EGy Electricity supplied to the national grid by

the project

Hydro power plan and

electricity bill

kWh Directly measured

Hourly measurement and monthly

recording

100% Electronic. Archived data kept during the crediting

period and two years after

Electricity supplied by the project activity to the

grid. Double check by receipt of sales



3. EFy CO2 emission factor of the grid

tCO2 / kWh

Calculated Yearly 100% Electronic. Archived data kept during the crediting


Calculated as a weighted sum of emission factors of Operating Margin and

Build Margin

4. EFOM,y CO2 Operating Margin emission factor of the grid

tCO2 / kWh



Calculated as indicated in the relevant OM baseline

method above

5. EFBM,y CO2 Build Margin emission factor of the grid

tCO2 / kWh



Calculated as [Σi Fi,y*COEFi] /

[ΣmGENm,y] over recently built power

plants defined in the baseline methodology

6. Fi,y Amount of each fossil fuel

consumed by each power plant

Mater plan of Electricity

Expansion

Mass of

volume

Measured Yearly 100% Electronic. Archived data kept during the crediting


Obtained from Mater plan of Electricity

Expansion for period of 2001 – 2010 with

perspective to 2015, EVN

7. COEFi CO2 emission coefficient of

each fuel i

IPCC default values are

applied

tCO2eq/(physical unit of the fuel i)



IPCC default values are applied



8. GENj Electricity generation of

each power plant j


Expansion

kWh/ year






9. Plant name Identification of power plant for

the OM


Expansion

Text Estimated Yearly 100% Electronic. Archived data kept during the crediting


Identification of plants to calculate Operating Margin emission factor

10. Plant name Identification of power plant for

the MM


Expansion

Text Estimated Yearly 100% Electronic. Archived data kept during the crediting


Identification of plants to calculate Operating Build emission factor

11. GENimp Electricity imports to the

national electricity grid


Expansion

kWh/ year






12. COEFimp CO2 emission coefficient of fuels used in connected

Electricity grid

IPCC default values are

applied

tCO2eq/(physical unit of the fuel i)



IPCC default values are applied


PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 30 D.2.1.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ)

Baseline emissions are calculated by the following formula:

“(The net electricity amount generated by the proposed project will be delivered to the national grid) time (the CO2 emission factor of the estimated baseline)”

The estimated annual gross power generation is 58.26 million kWh

The parasitic and loss load is estimated to be 2%.

The estimated annual net power generation is 57.09 million kWh

The baseline emission factor is 580.61 gCO2 / kWh (see B.2)

Total emission reduction during the crediting period of 10 years is estimated to be 331,498 tCO2

D. 2.2. Option 2: Direct monitoring of emission reductions from the project activity (values should be consistent with those in section E).

Not appropriate

D.2.2.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived: ID number (Please use

numbers to ease cross-referencing

to table D.3)

Data variable

Source of data

Data unit

Measured (m),

calculated (c) or estimated

(e)

Recording frequency

Proportion of data to

be monitored

How will the data be

archived? (electronic/

paper)

Comment

D.2.2.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.):

Not applicable


PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 31 D.2.3. Treatment of leakage in the monitoring plan

D.2.3.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project activity

ID number (Please use numbers to ease cross-referencing to table D.3)

Data variable

Source of data

Data unit

Measured (m), calculated (c) or estimated (e)

Recording frequency

Proportion of data to be monitored

How will the data be archived? (electronic/ paper)

Comment

D.2.3.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

As mentioned in the methodology ACM0002, the project participants do not need to consider emission sources as leakage. Therefore this section is not applicable. D.2.4. Description of formulae used to estimate emission reductions for the project activity (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

The emission reductions ERy generated by the project activity during a given year y is calculated as follows:

ERy = BEy – PEy – Ly

Where

ER: Emission reduction of the project activity

BE: Baseline emission

PE: Project emissions

L: emissions due to leakage

y: refers to a given year




D.3. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored

Data (Indicate table and ID number e.g. 3.-1.; 3.2.)

Uncertainty level of data

(High/Medium/Low)

Explain QA/QC procedures planned for these data, or why such procedures are not necessary.

2 Low QA/QC procedures for this are planned.

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.

6, 7, 8, 9, 10, 11, 12 Low QA/QC procedures for this are planned.

Data is acquired from published source from Electricity Corporation of Vietnam (Master Plan of Electricity Expansion for period of 2001-2010 with perspective to 2015.

Other Low QA/QC procedures for this are planned.

Data calculations will be kept as part of the company QA system and checked by a third party verifier prior to issuance of CERs.



D.4. Please describe the operational and management structure that the project operator will implement in order to monitor emission reductions and any leakage effects, generated by the project activity

+ No monitoring for leakage.

+ For emission reduction:

The generated electricity from the project is sold to the National electricity utility, Electricity Corporation of Vietnam (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 Research Center for Energy and Environment (RCEE) to monitor required parameter(s) after commissioning. RCEE will station a project in charge at the project site and will be responsible for monitoring the generation of 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.

Figure 3: Reporting structure D.5. Name of person/entity determining the monitoring methodology:

Research Center for Energy & Environment is the project consultant listed in Annex 1 of this document.

The inviduals developing the monitoring are

Mr. Tran Minh Tuyen – [email protected]

M.E. Le Quoc Hung – [email protected]

N.Yuvaraj Dinesh Babu – [email protected]

Project In Charge

RCEE

Project Proponent / Management




SECTION E. Estimation of GHG emissions by sources E.1. Estimate of GHG emissions by sources:

Since the proposed project has power density of above 10 W/m2, the project emission from the reservoir is not considered as per the approved and revised methodology (ACM0002) of the CDM Executive Board. E.2. Estimated leakage:

As mentioned in the methodology ACM0002, the project participants do not need to consider emission sources as leakage. So emissions due to leakage are zero. E.3. The sum of E.1 and E.2 representing the project activity emissions:

The project activity emissions are zero. E.4. Estimated anthropogenic emissions by sources of greenhouse gases of the baseline:

The baseline emissions are calculated as following:

BE = EG * EF

where:

EF = 580.61 gCO2/kWh - Baseline emission factor (calculated in B3)

EG - Net electricity outputs supplied to the national grid by the proposed project

Annual emission amount from the baseline is shown in below table 10: E.5. Difference between E.4 and E.3 representing the emission reductions of the project activity:

The difference between E.4 and E.3 which is the emission reductions of the project activity are shown in below table 10.

Table 10: Emission reduction of the project activity

Baseline Year Project emission,

tCO2

Leakage emission,

tCO2Net electricity

GWh Emission, tCO2

Emission reduction

tCO2

2009 0 0 57.09 33,149.8 33,149.8 2010 0 0 57.09 33,149.8 33,149.8 2011 0 0 57.09 33,149.8 33,149.8


35

2012 0 0 57.09 33,149.8 33,149.8 2013 0 0 57.09 33,149.8 33,149.8 2014 0 0 57.09 33,149.8 33,149.8 2015 0 0 57.09 33,149.8 33,149.8 2016 0 0 57.09 33,149.8 33,149.8 2017 0 0 57.09 33,149.8 33,149.8 2018 0 0 57.09 33,149.8 33,149.8 Total 0 0 570.9 331,498 331,498

*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 2% gross output). In contrary, the calculation of E.4 uses only net electricity output of the project activity that is certainly less than plant gross output. E.6. Table providing values obtained when applying formulae above:

Summary of the above calculations is shown in below table

Parameters Unit Value 1. Capacity addition MW 16 2. Annual net electricity generation GWh 57.09 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

− Total baseline carbon emission during the crediting period of 10 years tCO2 331,498

4. Total project carbon emission during the crediting period of 10 years tCO2/year 0

5. Total leakage carbon emission during the crediting period of 10 years tCO2/year 0

6. Total CO2 emissions reductions during the crediting period of 10 years tCO2/year 331,498


36

SECTION F. Environmental impacts F.1. Documentation on the analysis of the environmental impacts, including transboundary impacts:

F.1.1. Environmental impacts

The project will initiate impacts on the environment the following:

(1) Land occupation. Total land occupied area will be 100 ha.

(2) Impact on water, air environment.

(3) Impact on fauna and flora system.

1. Land occupation:

During construction of work as road, transmission line, the plant which will occupy an area of 100 ha comprising of:

+ Farming land (maize, cassava, upland rice) : 20 ha

+ Hill and mountain land (plants, rocky mountain, land unused) : 80 ha

2. Impact on water environment

+ The plant type is run-off-river hydro power plant. Hence impacts on water environment are only during the construction period. When the plant comes into operation, everything will be gradually backed to normal.

+ Water environment here will be polluted by machines and workers activities, but the pollution will be reduced by cleaning, collecting and treating waste types carefully.

3. Impact on air environment

There is an influence of the construction period when the infrastructure is established, on the air environment. It includes ground levelling, material transportation, etc that generate dust, emissions, etc.,.

Noise caused by mine explosions, motorized hammer and machines

Nevertheless, when the project construction is completed, these activities and their impacts are stopped.

4. Impact on fauna and flora system

The proposed project will result in the loss around 100 ha of forest, the decrease of forest cover, and emigration of some wild animal species.

After the project comes into operation, forest area which is occupied will be reforested, combining with perennial and fruit-tree growing. This will increase vegetational cover, hence recover wild and rare animal species. Beside, dam construction and reservoirs increase will have positive impact on local climate. The steam evaporated from the reservoirs will reduce heat and sultriness in summer season and dryness and coldness in winter. This fine weather not only benefits people’s health but also have positive impact on nearby flora system.

F.1.2. Social and economic impacts


37

a) Negative impact:

- Economic damage: The project will occupy the land area of 100 ha so that life of households will be changed.

- Social impacts: Many worker and emigrant find the job with many kinds of people, lifestyle and various education as well. These can make a lot of negative impact on social such as changing the component of inhabitants, increasing the population, etc… These people can make contradiction between local people and new inhabitants, burn off for tilling hilly land, social evil, epidemic diseases, etc… These potential impacts largely depend on management of local administration, social organisations and sense of each person.

- The stream area between dam and plant: According to document design, the water of Chim stream is passed from reservoir to plant through tunnel then return back to Chim stream. The length of this stream is 2 km. The over-flow discharge of Nam Chim project system is less during dry season so water volume in river after dam at present mainly come from some branch and catchment area of dam and plant. This stream has some branch with small discharge. However, the water leakage of the stream after dam is less because of no karst. The volume of supplement water of some tributaries after dam is sufficient to maintain capacity at minimum volume in dry season. During rainy season, the water discharge in the stream is high so the stream become normal condition. The environmental impact on this stream is evaluated in normal.

- Community health impact: During construction and plant operation as well, the increase in population and their actions may create some health impact.

b) Positive impact:

- Infrastructure improvement:

To construct Nam Chim hydro power project, the investor has to open a road from Chim Ha village, Chim Vang commune to Hydro plant in order to transport and storage building material, equipments. The road system is upgraded that will make advantage condition for travelling, business exchange and developing socio – economic of local government.

Beside, getting in touch with engineers, workers having high academic standard and modern machines will help people here improve their knowledge and mind. Old and unsound customs and social evils such as drinking and gambling will be rejected. Especially, the shifting cultivation and deforestation to till the fields will be changed into the settled cultivation.

F.1.3. Environment and social impact assessment and comparison

For resume of environment and social assessment, the project sponsor, in feasible study document, has given the following impact assessment table:

Table 11: Environment and social impact assessment and comparison

Impact element No Environment parameter Plant construction Dam creation and

plant operation

I Natural environment

1 Land


38

Area - - o

Loss break, deposit strengthen - -

Fertility o o

2 Water

Water quality - o

Underground water o +

3 Fauna and Flora - ++

4 Local climate - + +

II Economic – social environment

1 Economics

Agriculture o o

Forestry - +

Aquatic - + +

Transportation - + +

Trade, tourism o ++

2 Culture - Society

Living level - + +

Mind culture o + +

Public health o +

Note: - : Small or temporary negative impact

- - : Big and long negative impact

+ : Small or temporary positive impact

+ + : Big and long positive impact

o : Insignificant impact

F.1.4. Repair measures of negative impacts

• Following the decree No 22/1998/ND – CP of the government dated 24 April 1998 on damage compensation when the government revokes the land to use for purposes of national defence, security and interest or public interest, the land used for Nam Chim construction (including plant, reservoirs, electricity line, executing road, etc.) belongs to the land type which used for national and public interest. So compensations to land and property on land, support and resettlement policies will be carried out as per the regulations specified in the decree.

• Subsidy households that are moved and loss cultivation land on 12 months of food (15 kg rice per people per month) at the local market price at the compensation time.

• Communes belonged to project area (Xim Vang, Hang Chu) Bac Yen district will re-plan and re-allocate the land to the households and exempt them from land tax.


39

• For the households lacking of the land for crops, the aid will be given for switching to cattle breeding..

• Protective and landscape forest, perennials and fruit trees will be grown to keep water for the reservoirs and make a further revenue source for local people.

• The bottom of the reservoirs must be cleaned before flooding to avoid the pollution and facilitate the aquaculture. Water storage process in early years will make an increase in rapidly humus and organic waste substances resulting in polluted water. Therefore, it is necessary to breed some fish varieties, which have high economic value and adapt to natural environment, into the reservoirs from the start. These fishes can clean water in the reservoirs by feeding water-plants, ephemeral organisms, water grass, humus and organic waste substances. After that fish will be able to be bred in cages on the reservoirs according to identified technology processes.

F.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 Lao Cai Department of Natural Resources and Environment confirmed that

Nam Chim Hydro Power Project – Xim Vang commune – Bac Yen District, Son La city owned by Song Lam Construction and Investment Company LTD submitted the registration document on environmental standard conformation in 18 January, 2006.

Project owner has the responsibility to strictly implement all the commitments stated in this registration document on environment standard conformation and also requirements as follows:

+ Raw materials used in the construction period must be regrouped, preserved and used as expected; Wastes must be collected and treated so that do not impact on the environment.

+ Monitoring of biological and physical environmental indicators must be frequently carried out during the operation period with frequency of every 3 months during first year and every 6 months during next years. These indicators are flow; water quality; flooding situation, erosion and sedimentation during the rainy season; degradation in biological diversification.

+ Specific cost categories for environmental monitoring activities during construction and operation periods must be planned.

The registration document on environment standard conformation and requirements of the project is the basic for the State Environmental Management Authorities to inspect the project’s implementation of the Environmental Protection Law.

The project owner should to report in written on environmental monitoring results to Department of Natural Resources and Environment for management.


40

SECTION G. Stakeholders’ comments G.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 taken into account

− Song Lam Construction and Investment Company Limited.

− The People’ committee of Son La province (local authorities)

− Department of Natural Resources and Environment of Son La 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 are also here presented. These comments were received by project sponsor in the meeting with communes’ representatives. The proposed project is solely located in Xim Vang and Hang Chu communes directly concerned. Communes’ representatives at these meeting were:

1. Chairman of Commune’s Council. The members of Council are elected by commune people voting. So the opinion of the Council really represents the people’s opinion.

2. Chairman of Commune’s People Committee (CPC). CPC is at lowest administration level in Vietnam administrative hierarchy. Chairman of CPC is elected by Council so he as well represents the commune’s interest.

3. Heads of villages.

4. Chairman of Commune Woman Association

5. Chairman of Commune Farmer Association.

6. Secretary of Youth Union.

G.2. Summary of the comments received:

All organizations understood that the project contributes to sustainable development and environment protection of Vietnam, especially increase local budget and reduce poverty so they fully support the project and respond with their comments promptly.

The special interest is in Communes representative comments, summarised 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).


41

+ Forest conservation, environment protection.

+ Project sponsor is requested to create jobs for local people during plant construction and operation by training people.

The comments are shown in details in Annex 5.

G.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 without any concerns.

The project sponsor committed to create jobs for commune people.


42

Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Song Lam Construction and Investment Company Limmited

Street/P.O.Box: 26/8 road, Son La City

Building:

City: Son La province

State/Region: North West area

Postfix/ZIP:

Country: Viet Nam

Telephone: + 84 510 944176 / + 84 510 843334

FAX: + 84 510 944176

E-Mail:

URL:

Represented by:

Title: Director

Salutation: Mr

Full Name: Nguyen Nhu Hung


Department:

Mobile: + 84 913252378

Direct FAX: + 84 510 944176

Direct tel: + 84 510 944176 / + 84 510 843334

Personal E-Mail:

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

Not applicable


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his template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

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Annex 3 – Baseline Information

VIETNAM ELECTRICITY GRID DATA Table 13: Electricity output of the Vietnam grid during 2001 – 2010

No Source Cap. Co. time13 Electricity output, GWh MW Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 I Hydropower 1 Da Nhim 160 1964 1096 915 1005 1005 1005 1005 1005 1005 1005 1005 2 Thac Ba 108 1973 401 364 414 414 414 414 414 414 414 414 3 Tri An 400 1989 2179 1675 1658 1658 1658 1658 1658 1658 1658 1658 4 Hoa Binh 1920 1994 8447 8010 8067 8067 8067 8067 8067 8067 8067 8067 5 Thac Mo 150 1995 926 665 882 882 882 882 882 882 882 882 6 Vinh Son 66 2000 215 240 201 201 201 201 201 201 201 201 7 Song Hinh 70 2000 441 320 350 350 350 350 350 350 350 350 9 Ham Thuan 300 2001 923 910 907 907 907 907 907 907 907 907 10 Da Mi 175 2001 401 540 575 575 575 575 575 575 575 575 8 Yaly 360 2000-2001 2975 3200 3558 3558 3558 3558 3558 3558 3558 3558 11 Can Don 78 2003 266 266 266 266 266 266 266 266 12 Se San 3 260 2005-2006 568 1137 1137 1137 1137 1137 13 Bac Binh 35 2006 44 144 144 144 144 14 Se San 3A 100 2006 141 441 441 441 441 15 Srok Phu Mieng 54 2006 72 243 243 243 243 16 Tuyen Quang 342 2006-2007 225 1296 1296 1296 1296 17 Dai Ninh 300 2007-2008 272 1143 1143 1143 18 A Vuong 1 170 2007 115 715 715 715 19 Quang Tri (Rao Quan) 70 2007 71 271 271 271 20 Ban La 300 2008 328 1055 1055 21 Srepok 3 180 2008 198 598 598 22 Plei Krong 110 2008 175 575 575 23 Cua Đat 97 2008 165 405 405

T

13 Commissioning time

his template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

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24 Buon Kuop 280 2009-2010 432 1348 25 An Khe + Ka Nak 163 2009 175 695 26 Dong Nai 4 270 2009-2010 135 906 27 Dong Nai 3 240 2009-2010 120 794 28 Ban Chac 200 2010 748 29 Ha Song Ba 250 2010-2011 544 30 Se San 4 330 2010-2011 473 31 Thuong Kon tum 220 2010-2011 414 32 Con river 214 70 2010 112 33 Tranh river 2 120 2010 239

Total hydropower 18,004 16,839 17,883 17,883 18,451 19,502 21,602 24,139 26,768 32,179 II Coal power

II.1 Coal 1 Uong Bi 100 1976 2 Ninh Binh 105 1977 999 950 1007 838 734 225 419 424 386 387 3 Pha Lại 1 440 1986 2219 2130 1887 1365 1024 337 390 373 331 332 4 Pha Lai 2 600 2002 2430 3627 3627 3627 3551 3472 3512 3196 3203 5 Na Duong 110 2004 605 604,5 500 500 500 500 500 6 Cao Ngan 100 2005 604,5 500 500 500 500 500 7 Cam Pha 300 2005 1000 1300 1800 1800 1800 1800 8 Uong Bi 1&2 600 2005-2009 814 1855 2006 2125 2095 3424 9 Hai Phong 300 2006 545 2275 3512 3343 3203 10 Quang Ninh 1200 2007,2008 330 1878 2811 3369 11 Expansion Ninh Binh 300 2008 334 1681 1684 12 Nghi Son 600 2009,2010 1405 3369

Total coal power 3,218 5,510 6,521 6,435 8,408 8,813 11,692 14,958 18,048 21,771 II.2 Gas power

1 Ba Ria 378 1999 1644 2210 1205 992 935 1305 1277 1291 1175 1178 2 Phu My 1 1090 2001,2002 1074 4160 5926 6475 6623 6450 6308 6381 5807 5819 3 Phu My 2-1 930,4 2003,2005 2375 2314 4561 6538 7010 7669 7500 7586 6904 6919

T

14 Option 1: But it have already replaced by the proposed project

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4 Phu My 4 450 End 2004 5 Phu My 2.2 720 9/2004 7435 9462 9262 9222 9335 9444 9462 6 Phu My 3 720 1/2004 7 Ca Mau 720 2005 1261 4494 4395 4446 4046 4055 8 Nhon Trach 1200 2007-2009 1736 3512 4795 6406 9 O Mon 1 600 2005-2006 3343 3043 3049 10 O Mon 2 750 2009-2010 1533 4598

Total gas power 5,093 8,684 11,692 21,440 25,291 29,180 30,438 35,894 36,747 41,486 II.3 FO power

1 Hiep Phuoc 375 2001 2122 2100 1100 2 Thu Đuc 165 1972 881 950 97 97 98 101 99 100 91 91 3 Can Tho 33 1999 236 210 222 222 123 27 27 27 25 25 4 O Mon 1 600 2005,2006 833 2156 3305

Total FO power 3,239 3,260 1,419 319 1,054 2,284 3,431 127 116 116 II wer.4 DO po

1 Turbine gas Thu Duc 70 1992 276 325 45 45 45 48 47 47 43 43 2 Turbine gas Can Tho 140 1999 465 280 293 291 190 107 105 106 97 97

Total DO power 741 605 338 336 235 155 152 153 140 140 Total thermal power 12,291 18,059 19,970 28,530 34,988 40,432 45,713 51,132 55,051 63,513

III Imported 434 434 434 TOTAL 30,295 34,898 37,853 46,413 53,439 59,934 67,315 75,705 82,253 96,126

Baseline emissions factor data Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 OM 885 780 704 631 658 585 613 613 633 641 885 780 BM 102 569 483 601 503 606 197 109 267 282 102 569 Emission factors 493.56 674.65 593.60 615.85 580.61 595.79 404.74 361.25 449.56 461.17 493.56 674.65


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Table 14: Fuel consumptions for electricity generation during 2001 – 2010

No Source Cap. Com. time Fuel consumption

MW Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 I Hydropower II Thermal power

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 242,5 1012,4 1562,8 1487,6 1425,3

10 Quang Ninh 1200 2007-2008 146,8 835,7 1250,9 1499,2

11 Expansion Ninh Binh 300 2008 148,6 748,0 749,4

12 Nghi Son 600 2009, 2010 625,2 1499,2 Total coal 2,112 3,100 3,541 3,415 4,255 4,128 5,493 6,947 8,302 9,958

II.2 Gas power, Mm3

1 Ba Ria 340 1999 431 486 265 218 206 287 281 284 259 259

2 Phu My 1 1090 2001, 2002 301 832 1185 1295 1325 1290 1262 1276 1161 1164 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.


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3 Phu My 2-1 930,4 2003, 2005

4 Phu My 4 450 End 2004 665 648 1168 1517 1402 1534 1500 1517 1381 1384

5 Phu My 2.2 715 9/2004

6 Phu My 3 718,5 1/2004 1933 2460 2408 2398 2427 2455 2460

7 Ca Mau 720 2005 252 899 879 889 809 811

8 Nhon Trach 300 2007-2009 347 702 959 1281

9 O Mon 1 600 2005, 2006 839 1148 1920

10 O Mon 2 750 2009, 2010 Total gas 1,397 1,966 2,618 4,963 5,645 6,418 6,667 7,934 8,172 9,279

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 864 871 375 89 249 524 782 36 32 32

II.4 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 Total DO 216 177 98 98 68 45 45 45 41 41



Annex 4

MONITORING PLAN

Please refer to Section D

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