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ACTIVITIES IMPLEMENTED JOINTLY (AIJ)
ACTIVITIES IMPLEMENTED JOINTLY UNDER THE PILOT PHASE
A. Description of project
1) Title of project:
Kazlu Ruda Boiler Conversion
Please fill in one table for each participant/actor. For individuals fill in as from item Function within
a) Organization includes: institutions, ministries, companies, non-governmental organizations, etc. involved in the
activity, i.e. research institutes associated with the project, auditors, government agency closely following the
a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation; afforestation; fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker fuels.
b) Circle the appropriate option.
c) Methodological work will be required to define lifetime of activities.
d) Methodological work will be required to determine for each type of activity what the minimum data requirements
4) Cost (to the extent possible):
Describe briefly how costs are determined:
The investment proper is calculated to be 335.000 USD and technical support 65.000 USD.
The lifetime or the project is foreseen to be minimum 10 years (corresponding to the maturity period of the loan).
The reference scenario is a status quo situation, assuming that no invest-ment would have been made for the
replaced technology. The following definitions are used:
Cost for the project in year 0:
Costs for investment (= loan from NUTEK) and technical assistance (= grant from NUTEK) are summarized over the
investment period (up to the time for commissioning) and stated for year 0, being the year of the date for
Cost for the project in consequtive years:
Costs (i e possible costs for investment and costs of AIJ component character) are shown per calender year. Year 1
represents part of the calender year after the date of commissioning.
AIJ component in year 0:
The costs for technical assistance up to commissioning have a clear character of AIJ component. The costs for the
investment can also be maintained to have the an AIJ character, as the loan is a cost for the host country, and as
the loan represents a business risk for the financier, NUTEK.
AIJ component in consequtive years:
Encompasses in this report only one cost item - Costs for follow-up after the date of commissioning (information exchange to secure a high utilisation of the investment + costs for measuring and reporting to FCCC). The cost for follow-up for the years up to and including 1996 is calculated by dividing NUTEKs total costs for follow-up by the total years of operation of all NUTEK-financed projects.
Other cost items, like difference between a market interest rate and the favourable interest rate (STIBOR) which
NUTEK applies and financial risk, may be considered at the next reporting occasion.
US $ per avoided ton of CO2 equivalent equals:
- at year 0 the cost of the project/AIJ component cost divided by the projected decrease in CO2 emission over the 10 year lifetime of the project
- for consequtive years the cost of the project/AIJ component divided by actual figure for decrease of
CO2 emission for each of the years 1 - 10.
5) Mutually agreed assessment procedures:
a) Please ensure that detailed contact information for all organizations mentioned is reported under
section A.2 above.
B. Governmental acceptance, approval or endorsement
Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance, approval
or endorsement by the Governments of the Parties participating in these activities, which shall be shown as
(a) In the case of joint reporting, the report is submitted by the designated national authority of one
participating Party with the concurrence of all other participating Parties as evidenced by attached letters issued
by the relevant national authorities;
(b) In the case of separate reporting, the reports are submitted separately by the designated national authority of
each and every participating Party. Information will only be compiled once reports have been received from all
1) For the activity:
* First report and joint reporting
2) This report is a joint report:
3) General short comment by the government(s) if applicable:
Cf. Annex II, section B
C. Compatibility with and supportiveness of national economic development and socio economic and environment
priorities and strategies
D. Benefits derived from the activities implemented jointly project
Whenever possible, quantitative information should be provided. Failing that, a qualitative description should be
given. If quantitative information becomes available, it could be submitted using the update(s). (If the amount of
quantative information is too large, the source could be indicated.)
E. Calculation of the contribution of activities implemented jointly projects that bring about real, measurable
and long-term environmental benefits related to the mitigation of climate change that would not have occurred in
the absence of such activities
1) Estimated emissions without the activity (project baseline):
Description of the baseline or reference scenario, including methodologies applied:
The reference scenario represents at status quo situation. The decrease in energy consumption that followed after
1990 is assumed to have reached full impact, meaning a stable heat consumption over the life-time of the project.
Loan from NUTEK is so far one of the very few sources to finance this type of investments for municipalities in
Lithuania. As this would imply that an alternative investment would not have taken place, neither the consequence
of another investment, nor the consequence of an alternative technical solutions are considered.î
2) Estimated emissions with the activity:
Description of the scenario, including methodologies applied:
Cf. E.1. above.
Fill in the following tables as applicable:
Summary table: Projected emission reduction s:
a) Includes indirect GHG leakages.
Summary table: Actual emission reductions :
a) Includes indirect GHG leakages.
F. Additionality to financial obligations of Parties included in Annex II to the Convention within the framework
of the financial mechanism as well as to current official development assistance flows
Please indicate all sources of project funding.
1 USD = 7.50 SEK
G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to other
Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. In
this process, the developed country Parties shall support the development and enhancement of endogenous capacities
and technologies of developing country Parties
Endogenous capacity supported or enhanced:
1) Please ensure that detailed contact information for all organizations listed is reported under section A.2 above
H. Additional comments, if any, including any practical experience gained or technical difficulties, effects,
impacts or other obstacles encountered
Fill in as appropriate:
1) Any practical experience gained: KRM have started a co-operation with the Swedish company Hotab, working with boiler reconstruction.
KRM is working with information and development of new technique in the bio fuel area.
2) Technical difficulties:
3) Effects encountered:
4) Impacts encountered:
5) Other obstacles encountered: Some customers have disconnected from the district heating net.
Restrictions from the municipal council to deliver heat ( heat will not be delivered when medium temp is over 10 C
6) Other: There is a possibility to increase the load for the boilerhouse in the future.