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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)

List of Projects

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

A. Description of the AIJ project

1. Title of project: The Santa Teresa Hydroelectric Project

2. Host country: Guatemala

3. Brief project description:

The Santa Teresa Hydroelectric project plans to construct a hydroelectric dam, which will generate electricity by a non-greenhouse generating renewable resource, water. Greenhouse emissions will be reduced by displacing the combustion of fossil fuels that are currently used in generating electricity with the hydroelectric power generated. This project will construct a 15MW, medium head hydroelectric dam. This will be constructed on the Rio Polochic and will be constructed within the boundaries of three farms (Fincas San Enrique, El Carmen, and Chentum near Tucura, Alta Verapez) which are owned by AgroPolochic. The average annual production is estimated at 75GWh/year. The resulting greenhouse gas emissions avoided are estimated at 22,566 tons of carbon or 82,742 tons of CO2 annually for 15 years. The life of the project has been estimated at 15 years.

4. Participants:

Name of Organization or Individual

Country

Center for Sustainable Development in the Americas (CSDA)

U.S.A.

Energia Global International (EGI)

Bermuda based, with offices in U.S., Costa Rica, El Salvador, and Guatemala

AgroPolochic S.A.

Guatemala

Item

Please Complete If Applicable

Organization

Name of organization (original language)or

Name of individual if unaffiliated with any organization

Center for Sustainable Development in the Americas (CSDA)

Name of organization (English)

Acronym (original language)

Acronym (English)

CSDA

Department

Function(s) within the AIJ project activities

Project coordination

Street

1700 Connecticut Avenue, NW

City

Washington

State

District of Columbia

Post code

20009

Country

U.S.A.

Telephone

202-588-0155

Fax

202-588-0756

E-mail

csdainfo@csdanet.org

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Figueres

First name, middle name

Christiana

Job title

Corporate Officer

Direct telephone

Direct fax

Direct e-mail

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

Figueres

First name, middle name

Christiana

Job title

Executive Director

Direct telephone

202-588-8155

Direct fax

202-588-0756

Direct e-mail

Item

Please Complete If Applicable

Organization

Name of organization (original language)or

Name of individual if unaffiliated with any organization

Energia Global International (EGI)

Name of organization (English)

Acronym (original language)

EGI

Acronym (English)

Department

Function(s) within the AIJ project activities

Lead project developer

Street

401 Edgewater Drive

City

Wakefield

State

Massachusetts

Post code

01880

Country

U.S.A.

Telephone

781-224-1125

Fax

781-224-3375

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Clark

First name, middle name

Peter

Job title

Officer

Direct telephone

781-224-1125

Direct fax

Direct e-mail

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Please Complete If Applicable

Organization

Name of organization (original language)or

Name of individual if unaffiliated with any organization

AgroPolochic, S.A.

Name of organization (English)

Acronym (original language)

Acronym (English)

Department

Function(s) within the AIJ project activities

Project development

Street

Zona 10 Calle Diagonal 6 10-01

City

State

Post code

Country

Guatemala

Telephone

502-339-3171/5

Fax

502-339-3176

E-mail

egi@infovia.com.gt

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Esquivel

First name, middle name

Carlos

Job title

Direct telephone

Direct fax

Direct e-mail

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

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)

Alternative Energy Generation

Project Location

Country

Guatemala

Exact location (city, state, region)

Project will use waters of Rio Polochic and will be constructed on three farms; the San Enrique, El Carmen and Chintun, near Alta Verapaz (located between 15°16’ to 15°23’ N latitude and 90°09’ to 90°19’W

Key Dates and Current Stage of Project

Project starting date (month/year)

1999

Project ending date (month/year)

2014

Project lifetime (years)

15

Current stage of project

Being negotiated

General Project Description and Technical Data

The project is a 15 MW, medium head hydroelectric project that uses waters from the Rio Polochic and will be constructed on three farms, the San Enrique, El Carmen, and Chintun near Tucuru, Alta Verapaz. The average annual production is estimated at 75 GWh/year. Though various design alternatives are being considered, the hydro resource is the same (a design flow of 9.0m3/s and gross average operating head of 200 meters). The greenhouse benefits of this project will consist of displacing electricity that would have been generated by thermal plants and is estimated at 1,241,130 tons of CO2 over a 15-year project life.

6. Cost

(a) Explanation of methodology for calculating cost data

Methodology for Calculating Cost Data

The hydroelectric facility is estimated to cost $36,000,000.

(b) Cost data–Project development

(c) Cost data–Project implementation

The capital structure for this project is estimated to cost $36,000,000. Grupo EGI will provide $7,200,000 with the remaining $28,800,000 to be funded from institutional lenders. The project is certified under Law 20-86 which grants income tax credits to Guatemalan companies developing renewable energy projects. To maximize this tax credit benefit, AgroPolochic is seeking capital participation from Guatemalan investors through a "Participation Contract" in exchange for tax credits.

7. Monitoring and verification of AIJ project activities and results

Item

Party(ies) that will be monitoring project activities

AgroPolochic

Party(ies) that will be externally verifying project results

Guatemalan JI Office

Date when the monitoring plan became (or will become) operational (month/year)

To be determined

Types of data that will be collected

To be determined

Description of Monitoring and Verification Activities and Schedule for Implementation

Monitoring:

The project will be monitored via a continuous water level metering hydrometric station. The station will be located upstream of the dam and will have two independent water level recorders. One of the recorders will be monitored by AgroPolochic and the other by INDE, the national electric utility. Monitoring will ensure that electricity generation and sales are correctly recorded.

Verification:

The Guatemalan Joint Implementation office will conduct third party verification activities and is currently establishing a verification policy. A schedule will also be developed.

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 require an estimated 200 workers. Most of these workers will be employed from the local surrounding areas. Several support industries may benefit (restaurants, businesses, etc.) due to the fact that the work force will be forced to migrate to the city. This construction will cause a local economic boom. It is hoped that the inflow of capital will foster other economic actives in the region and provide a steady economy upon construction completion.

After construction, a workforce of permanent employees will be required for reforestation, road maintenance, and plant operations.

It is estimated that 9% of the inhabitants’ homes surrounding the project site are electrified. The local government has set a goal of electrifying 35% by the year 2000.

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

Non-Greenhouse-Gas Environmental Impacts of the Project

No important ecosystem will be affected by the project. The length of the rivers from the diversion point and the dam to the point where the water is returned to the river after generators will be impacted.

Social/Cultural Impacts of the Project

This information is not yet available.

Economic Impacts of the Project

The construction and operation of the project will require an estimated 200 workers. It is hoped that the inflow of capital into the area will help foster other economic actives in the region and provide a steady income upon construction completion.

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

Project will use waters of Rio Polochic and will be constructed on three farms; the San Enrique, El Carmen and Chintun, near Alta Verapaz (located between 15°16’ to 15°23’ N latitude and 90°09’ to 90°19’W

Project sector

Energy

Reference Scenario

Primary activity(ies)

Alternative Energy Generation

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 Rio Polochic is a major river, which flows into Lake Izabal. The project location is in a rural area that consists primarily of pastureland with some secondary forests.

Predicted Project Scenario

Primary activity(ies)

Alternative Energy Generation

Description:

This project is being developed by a single purpose corporation, AgroPolochic, S.A. The annual electricity production is estimated at 75 GWh per year. The project design includes a diversion dam on the Rio Polochic. A storage reservoir will be located behind the dam. The hydro resource will consist of a design flow of 9.0m3/s and gross average operating head of 200 meters. Several design alternatives are being considered: 1) an out of river storage reservoir, 2) a tunnel to reduce the length of the low-pressure penstock, 3) a low dam further upstream, or 4) installation of two turbine/generator sets to double the peaking capacity.

There are three options for the sale of electricity from this project: 1) sales to specific industrial customers through wheeling and swap agreements with INDE, the national utility and the Empresa Electrica de Guatemala (EESGA), the second largest utility in Guatemala. The wheeling charges or swap fees would be paid to transport the energy over the SNI, which is the interconnection system owned by INDE and EESGA; 2) sale through the wholesale market as a merchant plant; and 3) sale to EEGSA as a peaking plant.

The outcome for the project has been estimated to be a reduction of 82,742 annual CO2 emissions over a 15-year project life.

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

The baseline and total avoided emissions of CO2 from burning bunker fuel and diesel for this project have been developed using the ProForm methodology developed by Lawrence Berkeley Laboratory and the International Institute for Energy Conservation.

Description of Calculation Methodology for the Project Scenario

Annual tons of carbon emissions avoided are estimated at 22,566 tons. This equates to 82,742 tons of CO2 emissions avoided annually or 1,1241,130 CO2 over a 15-year project life.

Description of Calculation Methodology for the Actual Project

This information is not yet available.

3. GHG emission/sequestration data

  1. Reporting of GHG emissions/sequestration

Image

(b) Additional information on GHG emissions/sequestration

Indirect or Secondary GHG Impacts (Positive and Negative)

It is estimated that the project will have a positive socioeconomic effect on in the area by providing 200 jobs during the construction phase and boosting other economic developments as a result.

Impacts on flora and fauna, soil quality and vegetation may be negative. The developers do not see this as a major impact.

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

The loss or reversal of project benefits is not a significant issue. Each kWh of power generated by the wind facility and dispatched to the grid or mine will produce a permanent benefit in the form of avoided emissions from the fossil fuel combustion.

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

The project developers are fully insured for project failure due to equipment failure, a natural disaster, or financial failure. This insurance provides a safeguard by providing money to replace/repair equipment. In the case of a natural disaster (such as a drought), the insurance would not make up for lost GHG reductions as the project would be inoperable.

F. Funding of the AIJ project

1. Identification of funding sources

(a) Funding sources for project development

(b) Funding sources for project implementation

Approximately $7,200,000 in equity will be provided by EGI. It is estimated that the project costs will be $36,000,000, therefore $28,800,000 is being sought in long term financing from institutional lenders.

2. Assessment of additional funding needs

Current or Planned Activities to Obtain Additional Funding

AgroPolochic is seeking capital participation from Guatemalan investors through "Participation Contracts" in exchange for tax credits under Guatemalan Law 20-86. This law grants income tax credits to Guatemalan companies developing renewable energy projects.

G. Contribution to capacity building and technology transfer

Contribution to Capacity Building and Technology Transfer

This information is not yet available.

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)

Guatemala/The Santa Teresa Hydroelectric Project

Director of Energy, Thomas Henry, Guatemala Ministry of Energy and Mines

23 February 1998

  1. Letters of approval of this AIJ project report

Letters of support have been provided by: