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: Taquesi River Hydroelectric Power Project

2. Host country: Bolivia

Brief project description:
- The project is a run-of-river hydroelectric project, approximately 85 MW in the aggregate, along the Taquesi and Unduavi Rivers in the Republic of Bolivia, South America. The proposed project involves reduction of emissions of carbon dioxide through the displacement of electrical energy produced by single-cycle combustion turbines in the reference case. The project will supply electrical energy to the La Paz area from run-of-river hydropower facilities and thereby reduce emissions of carbon dioxide from the alternate electrical energy source.

4. Participants:

Name of Organization or Individual	Country
Hidroeléctrica Boliviana, S.A.	Bolivia
Tenaska International LLC.	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	Hidroeléctrica Boliviana, S.A.
Name of organization (English)	Hidroelectrica Boliviana, S.A.
Acronym (original language)	HB
Acronym (English)	HB
Department
Function(s) within the AIJ project activities	Project Development
Street	22, Fuerza Naval Avenue, Calacoto
City	La Paz
State
Post code
Country	Bolivia
Telephone	(591-2) 770765
Fax	(591-2) 770933
E-mail	Hibsa@datacom-bo.net
World Wide Web-URL address
Administrative Officer Responsible for the Project
Surname	Zannier
First name, middle name	Angel
Job title	General Manager
Direct telephone	011/5912/ 770765
Direct fax	011/5912/ 770933
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	Tenaska International, LLC.
Name of organization (English)	(same)
Acronym (original language)	(none)
Acronym (English)	(none)
Department
Function(s) within the AIJ project activities	Project Development
Street	1044 N, 115 Street, Suite 400
City	Omaha
State	Nebraska
Post code	68154-4446
Country	U.S.A.
Telephone	(402) 691-9500
Fax	(402) 691-9550
E-mail
World Wide Web-URL address	www.tenaska.com
Administrative Officer Responsible for the Project
Surname	Petersen
First name, middle name	Marc
Job title	Vice President
Direct telephone	(402) 691 9712
Direct fax	(402) 691-9719
Direct e-mail	mpetersen@tenaska.com
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, Inc.
Name of organization (English)	International Utility Efficiency Partnerships, Inc.
Acronym (original language)	IUEP
Acronym (English)	IUEP
Department
Function(s) within the AIJ project activities	Project Development
Street	701 Pennsylvania Avenue NW, Suite 500
City	Washington, D.C.
State
Post code	20004-2696
Country	U.S.A.
Telephone	(202) 508-5507
Fax	(202) 508-5080
E-mail
World Wide Web-URL address	www.ji.org
Administrative Officer Responsible for the Project
Surname	Shiflett
First name, middle name	Ronald, C. Jr.
Job title	Executive Director
Direct telephone	(202) 508-5507
Direct fax	(202) 508-5080
Direct e-mail	ronalsee@eei.org
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	Bolivia
Exact location (city, state, region)	La Paz, South Yungas area
Key Dates and Current Stage of Project
Project starting date (month/year)	February 2002
Project ending date (month/year)	February 2037
Project lifetime (years)	35
Current stage of project	In progress (Under Construction)
General Project Description and Technical Data
Hidroeléctrica Boliviana S.A. ("HB" the "Project Company") is proposing to finance, construct, own, and operate two new run-of-river hydroelectric projects, approximately 85 MW in the aggregate, along the Taquesi and Unduavi Rivers in the Republic of Bolivia, South America. The project expects to displace more than 10 million metric tons of greenhouse emission credits over plant life. These projects are near the small communities of La Chojlla and Yanacachi, located approximately 40 kilometers east from La Paz, in South Yungas area of Bolivia. The project is being developed as a result of deregulation of the Bolivian market. Private electric developments are now permitted, with payment based on either spot market prices for firm capacity and energy or negotiated power purchase agreements. The second and main phase of the project will commence operation in February 2002. The project’s net electrical output will be sold under the terms of Bolivia’s Electricity Law, which regulates electric power production on the basis of economic dispatch and lowest marginal cost of production. The Bolivian model resembles closely the models found in Argentina, United Kingdom, Chile, and Peru. Under the Electricity Law, the Project will receive a fixed capacity payment and energy payments for all delivered energy. A 115-kV transmission line will connect the Project with the Pichu Substation located near Yanacachi. From the Pichu substation, the power will be transmitted on an existing 115-kV transmission line to the Kenko substation near the northern portion of La Paz, Bolivia’s major load center.

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

Methodology for Calculating Cost Data

None presented; engineering estimates.

(b) Cost data–Project development

Itemized Project Development Costs

Year(s)	Type of Cost Incurred	Amount (US$)
2000/2002	General development expenses	7,100,000.0
	Total	7,100,000.0

(c) Cost data–Project implementation

Itemized Project Implementation Costs

Year(s)	Item	Projected Amount (US$)	Actual Amount (US$)
	Project Costs
2000/2002	Engineering, Procurement and Construction (EPC) contract costs & taxes	68,800,000.0	Not Available (NA)
2000/2002	Development Expenses	7,100,000.0	NA
2000/2002	Pre-Commercial Operation Date Operation and maintenance expenses	4,800,000.0	NA
2000/2002	Net Interests during construction	7,600,000.0	NA
2000/2002	Financing expenses	900,000.0	NA
2000/2002	Miscellaneous and Contingencies	8,300,000.0	NA
	Subtotal	97,500,000.0	NA
	Project Revenues
	Not available for being the project not yet in operation
	Subtotal	NA
Net Project Cost (Project Costs-Project Revenues)		NA

AIJ Project Implementation Costs: Annual Basis
Please specify: Year 1 = feb/2002-feb/2003
	AIJ Project Cost in US$		US$ per Avoided Tonne of CO₂-Equivalent
Year	Projected	Actual	Projected	Actual
1	NA	NA	NA	NA
2	NA	NA	NA	NA
3	NA	NA	NA	NA
4	NA	NA	NA	NA
5	NA	NA	NA	NA
6	NA	NA	NA	NA
7	NA	NA	NA	NA
8	NA	NA	NA	NA
9	NA	NA	NA	NA
10	NA	NA	NA	NA
11	NA	NA	NA	NA
12	NA	NA	NA	NA
13	NA	NA	NA	NA
14	NA	NA	NA	NA
15	NA	NA	NA	NA
16	NA	NA	NA	NA
17	NA	NA	NA	NA
18	NA	NA	NA	NA
19	NA	NA	NA	NA
20	NA	NA	NA	NA
21	NA	NA	NA	NA
22	NA	NA	NA	NA
23	NA	NA	NA	NA
24	NA	NA	NA	NA
25	NA	NA	NA	NA
26	NA	NA	NA	NA
27	NA	NA	NA	NA
28	NA	NA	NA	NA
29	NA	NA	NA	NA
30	NA	NA	NA	NA
31	NA	NA	NA	NA
32	NA	NA	NA	NA
33	NA	NA	NA	NA
34	NA	NA	NA	NA
35	NA	NA	NA	NA
Total	NA	NA	NA	NA

7. Monitoring and verification of AIJ project activities and results

Item	Please Complete
Party(ies) that will be monitoring project activities	In process of definition
Party(ies) that will be externally verifying project results	In process of definition
Date when the monitoring plan became (or will become) operational (month/year)	In process of definition
Types of data that will be collected	Project electric production (GWh) CO2 estimated 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, Bolivian Ministry of Sustainable Development and Planning, and the UNFCCC.

B. Governmental approval

Item	Please Complete
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

This project will positively impact economic development of the region. This project will produce significantly cheaper electricity for Bolivia by utilizing existing site, substation and transmission facilities, reducing project costs per MW and minimizing construction impact. Both temporary and permanent jobs will be created during the construction and operation of the plant. Technology Transfer – Capacity. This project will add momentum to developing clean independent power in Bolivia.

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

Non-Greenhouse-Gas Environmental Impacts of the Project

1. The project requires no flooding, contemplates no resident re location, and is situated in an area historically used for mining and hydroelectric power generation.

2. Due to the small footprint of the project facilities, impact to soil and forest resources will be insignificant. Hidroeléctrica Boliviana, S.A. is planning to maintain the forests adjacent to the generation plants to sustain hydrologic conditions, reduce soil erosion, and preserve biodiversity.

3. Due to the nature of the project, human health will not be impacted. Project medical facilities will contribute to local medical infrastructure.

4. The plant will not threaten Biodiversity.

5. Access to the site is available by public and private roads. Most equipment, construction materials and construction equipment will be heavy hauled or trucked to the site. Major equipment will be delivered by ocean freight to Arica, Chile, or rail to the nearest available siding and heavy hauled or trucked to the site.

Social/Cultural Impacts of the Project

Hidroeléctrica Boliviana has established a Foundation (Fundacion Taquesi) with the following objectives:

1. The conservation of cultural, historical, and archaeological resources found near the project site.
2. Assistance in efforts to conserve environmental quality within the areas of influence of the project and adjacent areas.

3. Improve living conditions of the communities situated adjacent to the project site.

There will be a strong participation from experts in all the areas of work that the foundation will focus. Such areas are health, education, environment, economic, and archeological.

Economic Impacts of the Project

The project will provide power at reduced cost to the Bolivian national grid, thus allowing the growth of all other economic sectors.

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

Item	Please Complete for Each Site
Site Designation
Site number (order of presentation in this report)	1 of 1
Site name/designation	South Yungas, La Paz (Taquesi River)
Project sector	Energy
Reference Scenario
Primary activity(ies)	Generation of electricity by run-of-river (Taquesi River)
Has the reference scenario changed since the last report? (If yes, explain any changes below.)	Yes No This is the first project report.
Description: There are no greenhouse gas sources at the project site included in the emissions baseline/reference case. Sources affected by the project include single-cycle combustion turbines located in the Santa Cruz region of Bolivia, that would produce fossil fuel-based electricity to inject through the Bolivian Interconnected Grid if the Taquesi project do not became operative. Those combustion turbines are sources of carbon dioxide in the baseline case.
Predicted Project Scenario
Primary activity(ies)
Description: The project involves reduction of emissions of carbon dioxide through the displacement of electrical energy produced by single cycle combustion turbines in the reference case. The project will supply electrical energy to the La Paz area from run-of-river hydropower facilities and thereby reduce emissions of carbon dioxide from the alternate electrical energy source.
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
Description of Calculation Methodology for the Reference Scenario
General Electric’s Cycle Deck Analysis program was used to calculate the exhaust analysis from an appropriately sized single-cycle gas turbine—the GE Frame 6 machine. The proposed site elevation near Santa Cruz, Bolivia, is 1,365 feet above sea level and the weather data collected at the Santa Cruz Airport indicates an average yearly temperature of 77 degrees F. These values were used as the specific input for calculation of outputs and exhaust flow analyses. Approximately 98 MWs of generation is required in Santa Cruz to displace approximately 84 MWs at Yungas. Weather data sources: National Hydrology and Meteorology Service (SENAMHI) and Meteorology Unit of Viru Viru International Airport. Natural gas characteristics: Andina SRL Company (gas projects developer)
Description of Calculation Methodology for the Project Scenario
The project scenario entails the concept of ZERO emissions.
Description of Calculation Methodology for the Actual Project
In process of definition.

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
Project Activity(ies): ENERGY EFFICIENCY
Please specify: HYDROELECTRIC POWER PROJECT
	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
24	286,298			0			286,298			286,298				6,871,153
25	286,298			0			286,298			286,298				7,157,451
26	286,298			0			286,298			286,298				7,443,749
27	286,298			0			286,298			286,298				7,730,048
28	286,298			0			286,298			286,298				8,016,346
29	286,298			0			286,298			286,298				8,302,644
30	286,298			0			286,298			286,298				8,588,942
31	286,298			0			286,298			286,298				8,875,240
32	286,298			0			286,298			286,298				9,161,538
33	286,298			0			286,298			286,298				9,447,836
34	286,298			0			286,298			286,298				9,734,134
35	286,298			0			286,298			286,298				10,020,432
Total	10,020,432			0			10,020,432			10,020,432				10,020,432

(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

Events that could cause future loss or removal of GHG benefits and with a reasonably likelihood of occurrence have not been identified.

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
- (a) Funding sources for project development

Funding Source	Country of Funding Source	Amount ($US)	Percent of Total Funding (%)
Equity contribution	U.S.A.	NA	NA
Total

(b) Funding sources for project implementation

Funding Source	Country of Funding Source	Amount ($US)	Percent of Total Funding (%)	Is This Funding Assured? (Y/N)
Equity Contribution	U.S.A.	NA	NA	Y
Equity Contribution	Bolivia	NA	NA	Y
Others	NA	NA	NA	NA
Total		97,500,000	100

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

This project will add momentum to the trend toward more efficient, lower emitting power generation in Bolivia.

H. Recent developments, technical difficulties, and obstacles encountered

Recent Project Developments

Notice to Proceed has been given to main contractors and project is under intensive construction activity.

Technical Difficulties and Other Obstacles Encountered

None.

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)

Taquesi River Hydroelectric Power Project

Host country letter - Erick Reyes Villa, Minister of Sustainable Development and Planning

Ministerial Decree No. 153/99 – Erick Reyes Villa, Minister of Sustainable Development and Planning and Neisa Roca Hurtado, Vice Minister of Sustainable Development and Planning

7 June 1999

18 August 1999

2. Letters of approval of this AIJ project report:
- See attached letter of concurrence.
K. Addendum for USIJI Secretariat Only

1. Lead contact for project reporting

Item	Please Complete If Applicable
Organization
Name
Organization (English)
Telephone
Fax
E-mail

2. Milestones

Milestone	Date Initiated (if applicable) (month/year)	Date Completed (if applicable) (month/year)
Substantive discussions regarding project
Pre-feasibility study
Feasibility study
Project development (including construction and/or setting up on-site offices, purchase of lands, etc.)
Project operations (including starting management practices, distributing information, training, purchase of operating equipment, etc.)
Sequestration or reduction of GHG emissions
Project financing obtained
Other (please specify)

3. Assignment of GHG emission reductions
- (a) Methodology for allocating GHG emission reductions.

Methodology for Allocating GHG Emission Reductions

(b) Final assignment of GHG emission reductions

Participant	Percentage of the Total Emission Reduction Assigned to This Participant
Not yet defined
Total	100

4. Baseline GHG emission scenario (prior 12 months)

Period		Baseline Emissions (metric tonnes)
From (month/year)	To (month/year)	CO₂	CH₄	N₂O	Other (Specify)	CO₂-Equivalent
Methodology for Calculating Baseline Emission/Sequestration Estimates