CC:INFO/AIJ: REPORT

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ACTIVITIES IMPLEMENTED JOINTLY (AIJ)

USIJI Uniform Reporting Document:

Activities Implemented Jointly Under the Pilot Phase

A. Description of the AIJ project
1. Title of project: CAPEX, SA Electric Generation Project

2. Host country: Argentina

3. Brief project description:
- The project will install a heat recovery system and a steam turbine to achieve combined cycle operation at a 370 MW gas turbine powerplant in Neuqué®¬ Argentina. The effect will be to raise the capacity to 555 MW with no increase in fuel use or greenhouse gas emissions. The lower per unit cost of generation will increase the utilization of this more efficient plant under the local economic dispatch system that governs its operation, further reducing CO2 emissions systemwide.
4. Participants:

Name of Organization or Individual	Country
CAPEX, SA	Argentina
El Paso Energy International Company	U.S.A.
International Utility Efficiency Partnerships, Inc.	U.S.A.

Item
Organization
Name of organization (original language) or Name of individual if unaffiliated with any organization	CAPEX, SA
Name of organization (English)	CAPEX, SA
Acronym (original language)	CAPSA
Acronym (English)	CAPSA
Department
Function(s) within the AIJ project activities	Project development
Street	Carlos F. Melo 630
City	Vicente Ló°¥º
State	Buenos Aires
Post code	1638
Country	Argentina
Telephone	54-1-791-3359
Fax	54-1-796-6046
E-mail
World Wide Web-URL address
Administrative Officer Responsible for the Project
Surname	G?lt;/P>
First name, middle name	Sr. Enrique
Job title	President
Direct telephone	54-1-791-3359
Direct fax	54-1-796-6046
Direct e-mail
Contact Person for AIJ Activities (if different from the Administrative Officer)
Surname	(Same)
First name, middle name
Job title
Direct telephone
Direct fax
Direct e-mail

Item
Organization
Name of organization (original language) or Name of individual if unaffiliated with any organization	El Paso Energy International Company
Name of organization (English)	(Same)
Acronym (original language)	(None)
Acronym (English)	(None)
Department
Function(s) within the AIJ project activities	Project Development
Street	1001 Louisiana St., Room T1531C
City	Houston
State	Texas
Post code	77002
Country	U.S.A.
Telephone	541-313-1099
Fax	541-313-1165
E-mail
World Wide Web-URL address
Administrative Officer Responsible for the Project
Surname	Pé²¥z
First name, middle name	Robert
Job title	Director
Direct telephone	541-313-1099
Direct fax	541-313-1165
Direct e-mail
Contact Person for AIJ Activities (if different from the Administrative Officer)
Surname	(Same)
First name, middle name
Job title
Direct telephone
Direct fax
Direct e-mail

Item
Organization
Name of organization (original language) or Name of individual if unaffiliated with any organization	International Utility Efficiency Partnerships
Name of organization (English)	International Utility Efficiency Partnerships
Acronym (original language)	IUEP
Acronym (English)	IUEP
Department
Function(s) within the AIJ project activities	Project Development
Street	701 Pennsylvania Ave., NW, Suite 500
City	Washington
State	DC
Post code	20004-2696
Country	U.S.A.
Telephone	202-508-5507
Fax	202-508-5080
E-mail
World Wide Web-URL address
Administrative Officer Responsible for the Project
Surname	Shiflett
First name, middle name	Ronald C
Job title	Executive Director
Direct telephone	202-508-5507
Direct fax	202-508-5080
Direct e-mail
Contact Person for AIJ Activities (if different from the Administrative Officer)
Surname	(Same)
First name, middle name
Job title
Direct telephone
Direct fax
Direct e-mail

5. Description of AIJ project activities

Item
Type of Project
Sector(s)	Energy
Primary activity(ies)	Energy Efficiency
Project Location
Country	Argentina
Exact location (city, state, region)	Plottier, Neuqué® Province
Key Dates and Current Stage of Project
Project starting date (month/year)	November, 1999
Project ending date (month/year)	November, 2029
Project lifetime (years)	30
Current stage of project	Under Construction
General Project Description and Technical Data
The project is a single-cycle to combined-cycle conversion at a natural gas-fueled electric generation facility located in Neuqué®¬ Argentina, that is expected to save over 30 million Tonnes of CO2 emissions over its 30 year lifetime. The current CAPEX, SA powerplant, rated at 370 MW, consists of five Westinghouse 251 B11 gas turbines and one Westinghouse 701 D gas turbine, along with a 132 kV substation and associated transmission lines. As a low-cost generator, it is among the first to be dispatched within the grid and has a high rate of utilization. The project will install a system to recover heat from the exhaust of each of the turbines and raise steam that will power a single 185 MW steam turbine. The result will be to increase the rated power output to 555 MW, with no increase in fuel use, and to lower the cost of operation per kWh, thereby displacing 185 MW of less efficient generation elsewhere on the grid. The developer also has begun reforestation at the site and plans to continue to reforest 100 hectares per year. No greenhouse gas benefits due to reforestation are claimed, however. Future GHG benefits depend on both utility capacity additions and generation dispatch strategy in response to changing loads. If the additional 185 MW displaces electricity from other less efficient plants, the resultant emissions may range between 550,000 to 570,000 tons of CO₂ per year. Therefore, emissions reduced by this combined-cycle plant may range between 550,000 and 1,100,000 tons per year or between 16.5 and 33 million tons over 30 years. Actual annual reductions will be subject to monitoring and verification.

6. Cost
- (a) Explanation of methodology for calculating cost data

Methodology for Calculating Cost Data

(None presented; probably engineering estimates)

(b) Cost data?Project development

This information is not available.

(c) Cost data?Project implementation

Information on the total project implementation costs is not available. The proposal does indicate that project construction is expected to cost US$200 million.

Itemized Project Implementation Costs

7. Monitoring and verification of AIJ project activities and results

Item
Party(ies) that will be monitoring project activities	(not yet identified)
Party(ies) that will be externally verifying project results	This information is not yet available.
Date when the monitoring plan became (or will become) operational (month/year)	This information is not yet available.
Types of data that will be collected	Plant fuel consumption Plant electric output CO2 in stack gas emissions
Description of Monitoring and Verification Activities and Schedule for Implementation
The developer will verify that the projections made are established by the actual measured and recorded emissions. All monitoring will be in accordance with the rules, regulations and procedures promulgated by the USIJI, Argentine JI, Clean development mechanism regional authority, and the UNFCCC.

B. Governmental approval

Item
Please check one of the following.	This report is a first report. or This report is an intermediate report. or This report is a final report.
Please check one of the following:	This report is a joint report. Letter(s) of approval of this report from the designated national authority of the other Party(ies) involved in the activity is(are) attached in Section J, Annex. or This report is a separate report.
Additional comments (if any):

C. Compatibility with, and supportiveness of, national economic development and socioeconomic and environmental priorities and strategies

Compatibility with Economic Development and Socioeconomic and Environmental Priorities

The project will generate 50% more power at lower cost to the Argentine economy and will postpone the need to invest in new generating capacity. It will also add momentum to clean independent power development in Argentina.

D. Environmental, social/cultural, and economic impacts of the AIJ project

Non-Greenhouse-Gas Environmental Impacts of the Project

Water injection will significantly reduce Nox emissions from the turbines, and CAPEX, SA is planning to reforest 3,000 hectares adjacent to the combined cycle plant over the project life.

Social/Cultural Impacts of the Project

None, since the project will merely improve the efficiency, emissions and output performance of an existing powerplant.

Economic Impacts of the Project

The project will provide power at reduced cost to the Argentine utility grid.

E. Greenhouse gas impacts of the AIJ project
1. Scenario description

Item
Site Designation
Site number (order of presentation in this report)	1 of 1
Site name/designation	Plottier, Neuqué® Province
Project sector	Energy Efficiency
Reference Scenario
Primary activity(ies)	Addition of combined cycle capability to a gas turbine powerplant.
Has the reference scenario changed since the last report? (If yes, explain any changes below.)	Yes No This is the first project report.
Description: The powerplant is assumed not to be modified for combined cycle operation, and it continues to operate at full 370 MW capacity with annual emissions of 2,161,984 Tonnes per year CO2 and 3,003 Tonnes per year NOx.
Predicted Project Scenario
Primary activity(ies)	Alternative energy generation (solar)
Description: The powerplant will be equipped with a steam turbine for combined cycle operation, thus raising its output capacity by 50% with no increase in fuel consumption or CO2 emissions. Assuming that the power displaced by the new capacity is generated with technology similar to the reference powerplant, the reduction in emissions will be 50%, and the comparable levels will be 1,080,992 Tonnes/yr CO2 and 1,501 Tonnes/yr NOx.
Actual Project
Primary activity(ies)	This information is not yet available.
Description: This information is not yet available.

2. GHG emission/sequestration calculation methodology

GHG Emission/Sequestration Calculation Methodology
Site number	1 of 1
Project sector	Energy Efficiency
Description of Calculation Methodology for the Reference Scenario
CO2 estimates are based on fuel chemistry and actual rates of consumption in two existing gas turbine models. NOx is estimated based on performance parameters of the existing gas turbines.
Description of Calculation Methodology for the Project Scenario
Levels estimated in the reference scenario are divided by 2, corresponding to the 50% increase in power output.
Description of Calculation Methodology for the Actual Project
This information is not yet available.

3. GHG emission/sequestration data
- (a) Reporting of GHG emissions/sequestration

Projected Net Greenhouse Gas Benefits: All Project Sites (Tonnes, Full Molecular Weight Basis)
Sector(s): Energy Efficiency
Project Activity(ies): Combined Cycle Generation
Please specify: Year 1 = 2000
	Reference Scenario Emissions			Project Scenario Emissions			Net GHG Benefits (Reference Scenario - Project Scenario)				Cumulative GHG Benefits (Reference Scenario - +L20Project Scenario)
Year	CO₂	CH₄	N₂O	CO₂	CH₄	N₂O	CO₂	CH₄	N₂O	CO₂- Equivalent	CO₂	CH₄	N₂O	CO₂- Equivalent
1	2,161,984			1,080,992			1,080,992			1,080,992	1,080,992			1,080,992
2	2,161,984			1,080,992			1,080,992			1,080,992	2,161,984			2,161,984
3	2,161,984			1,080,992			1,080,992			1,080,992	3,242,976			3,242,976
4	2,161,984			1,080,992			1,080,992			1,080,992	4,323,968			4,323,968
5	2,161,984			1,080,992			1,080,992			1,080,992	5,404,960			5,404,960
6	2,161,984			1,080,992			1,080,992			1,080,992	6,485,952			6,485,952
7	2,161,984			1,080,992			1,080,992			1,080,992	7,566,944			7,566,944
8	2,161,984			1,080,992			1,080,992			1,080,992	8,647,936			8,647,936
9	2,161,984			1,080,992			1,080,992			1,080,992	9,728,928			9,728,928
10	2,161,984			1,080,992			1,080,992			1,080,992	10,809,920			10,809,920
11	2,161,984			1,080,992			1,080,992			1,080,992	11,890,912			11,890,912
12	2,161,984			1,080,992			1,080,992			1,080,992	12,971,904			12,971,904
13	2,161,984			1,080,992			1,080,992			1,080,992	14,052,896			14,052,896
14	2,161,984			1,080,992			1,080,992			1,080,992	15,133,888			15,133,888
15	2,161,984			1,080,992			1,080,992			1,080,992	16,214,880			16,214,880
16	2,161,984			1,080,992			1,080,992			1,080,992	17,295,872			17,295,872
17	2,161,984			1,080,992			1,080,992			1,080,992	18,376,864			18,376,864
18	2,161,984			1,080,992			1,080,992			1,080,992	19,457,856			19,457,856
19	2,161,984			1,080,992			1,080,992			1,080,992	20,538,848			20,538,848
20	2,161,984			1,080,992			1,080,992			1,080,992	21,619,840			21,619,840

Projected Net Greenhouse Gas Benefits: All Project Sites (Continued) (Tonnes, Full Molecular Weight Basis)
Sector(s): Energy Efficiency
Project Activity(ies): Combined Cycle Generation
Please specify: Year 1 = 2000
	Reference Scenario Emissions			Project Scenario Emissions			Net GHG Benefits (Reference Scenario - Project Scenario)				Cumulative GHG Benefits (Reference Scenario - Project Scenario)
Year	CO₂	CH₄	N₂O	CO₂	CH₄	N₂O	CO₂	CH₄	N₂O	CO₂- Equivalent	CO₂	CH₄	N₂O	CO₂- Equivalent
21	2,161,984			1,080,992			1,080,992			1,080,992	22,700,832			22,700,832
22	2,161,984			1,080,992			1,080,992			1,080,992	23,781,824			23,781,824
23	2,161,984			1,080,992			1,080,992			1,080,992	24,862,816			24,862,816
24	2,161,984			1,080,992			1,080,992			1,080,992	25,943,808			25,943,808
25	2,161,984			1,080,992			1,080,992			1,080,992	27,024,800			27,024,800
26	2,161,984			1,080,992			1,080,992			1,080,992	28,105,792			28,105,792
27	2,161,984			1,080,992			1,080,992			1,080,992	29,186,784			29,186,784
28	2,161,984			1,080,992			1,080,992			1,080,992	30,267,776			30,267,776
29	2,161,984			1,080,992			1,080,992			1,080,992	31,348,768			31,348,768
30	2,161,984			1,080,992			1,080,992			1,080,992	32,429,760			32,429,760
Total	64,859,520			32,429,760			32,429,760			32,429,760	32,429,760			32,429,760

(b) Additional information on GHG emissions/sequestration

Indirect or Secondary GHG Impacts (Positive and Negative)

This information is not yet available.

Factors That Could Cause the Future Loss or Reversal of GHG Benefits

Failure of the combined cycle facility to operate for 30 years.
Failure of the Argentine utility system to purchase the power.

Strategy for Reducing the Risk of Future Loss or Reversal of GHG Benefits

None proposed.

F. Funding of the AIJ project

1. Identification of funding sources
- Public debt and private equity through El Paso Energy International Company.
  Host country investment by CAPEX, SA
2. Assessment of additional funding needs

Current or Planned Activities to Obtain Additional Funding

None proposed.

G. Contribution to capacity building and technology transfer

Contribution to Capacity Building and Technology Transfer

The project will add momentum to the trend toward more fuel-efficient, lower emitting power generation in Argentina.

H. Recent developments, technical difficulties, and obstacles encountered

Recent Project Developments

This information is not yet available.

Technical Difficulties and Other Obstacles Encountered

This information is not yet available.

I. Additional information

Additional Information

None.

J. Annex
1. Host country acceptance of the AIJ project

Country/Project Title	Name, Title, and Government Agency of the Designated National Authority	Date of Approval(day/month/year)
Argentina/CAPEX, SA Electric Generation Project	Marí¡ Julia Alsagaray, Secretary of Natural Resources and Sustainable Development	23 October 1998

2. Letters of approval of this AIJ project report
- See attached letter of concurrence.