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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:
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Name of Organization or Individual
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Country
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Center for Sustainable Development in the Americas (CSDA)
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U.S.A.
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Energia Global International (EGI)
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Bermuda based, with offices in U.S., Costa Rica, El Salvador, and Guatemala
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AgroPolochic S.A.
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Guatemala
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Item
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Please Complete If Applicable
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Organization
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Name of organization (original language)or
Name of individual if unaffiliated with any organization
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Center for Sustainable Development in the Americas (CSDA)
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Name of organization (English)
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Acronym (original language)
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Acronym (English)
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CSDA
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Department
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Function(s) within the AIJ project activities
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Project coordination
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Street
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1700 Connecticut Avenue, NW
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City
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Washington
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State
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District of Columbia
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Post code
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20009
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Country
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U.S.A.
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Telephone
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202-588-0155
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Fax
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202-588-0756
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E-mail
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csdainfo@csdanet.org
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World Wide Web-URL address
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Administrative Officer Responsible for the Project
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Surname
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Figueres
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First name, middle name
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Christiana
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Job title
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Corporate Officer
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Direct telephone
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Direct fax
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Direct e-mail
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Contact Person for AIJ Activities (if different from the Administrative Officer)
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Surname
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Figueres
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First name, middle name
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Christiana
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Job title
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Executive Director
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Direct telephone
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202-588-8155
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Direct fax
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202-588-0756
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Direct e-mail
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Item
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Please Complete If Applicable
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Organization
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Name of organization (original language)or
Name of individual if unaffiliated with any organization
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Energia Global International (EGI)
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Name of organization (English)
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Acronym (original language)
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EGI
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Acronym (English)
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Department
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Function(s) within the AIJ project activities
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Lead project developer
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Street
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401 Edgewater Drive
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City
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Wakefield
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State
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Massachusetts
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Post code
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01880
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Country
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U.S.A.
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Telephone
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781-224-1125
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Fax
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781-224-3375
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E-mail
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World Wide Web-URL address
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Administrative Officer Responsible for the Project
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Surname
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Clark
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First name, middle name
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Peter
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Job title
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Officer
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Direct telephone
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781-224-1125
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Direct fax
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Direct e-mail
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Contact Person for AIJ Activities (if different from the Administrative Officer)
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Surname
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First name, middle name
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Job title
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Direct telephone
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Direct fax
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Direct e-mail
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Item
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Please Complete If Applicable
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Organization
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Name of organization (original language)or
Name of individual if unaffiliated with any organization
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AgroPolochic, S.A.
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Name of organization (English)
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Acronym (original language)
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Acronym (English)
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Department
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Function(s) within the AIJ project activities
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Project development
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Street
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Zona 10 Calle Diagonal 6 10-01
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City
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State
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Post code
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Country
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Guatemala
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Telephone
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502-339-3171/5
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Fax
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502-339-3176
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E-mail
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egi@infovia.com.gt
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World Wide Web-URL address
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Administrative Officer Responsible for the Project
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Surname
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Esquivel
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First name, middle name
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Carlos
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Job title
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Direct telephone
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Direct fax
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Direct e-mail
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Contact Person for AIJ Activities (if different from the Administrative Officer)
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Surname
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First name, middle name
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Job title
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Direct telephone
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Direct fax
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Direct e-mail
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5. Description of AIJ project activities
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Item
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Type of Project
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Sector(s)
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Energy
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Primary activity(ies)
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Alternative Energy Generation
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Project Location
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Country
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Guatemala
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Exact location (city, state, region)
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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
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Key Dates and Current Stage of Project
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Project starting date (month/year)
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1999
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Project ending date (month/year)
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2014
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Project lifetime (years)
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15
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Current stage of project
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Being negotiated
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General Project Description and Technical Data
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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.
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6. Cost
(a) Explanation of methodology for calculating cost data
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Methodology for Calculating Cost Data
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The hydroelectric facility is estimated to cost $36,000,000.
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(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
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Item
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Party(ies) that will be monitoring project activities
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AgroPolochic
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Party(ies) that will be externally verifying project results
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Guatemalan JI Office
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Date when the monitoring plan became (or will become) operational (month/year)
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To be determined
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Types of data that will be collected
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To be determined
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Description of Monitoring and Verification Activities and Schedule for Implementation
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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.
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B. Governmental approval
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Item
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Please check one of the following.
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This report is a first report.or
This report is an intermediate report.or
This report is a final report.
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Please check one of the following:
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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.
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Additional comments (if any):
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C. Compatibility with, and supportiveness of, national economic development and socioeconomic and environmental
priorities and strategies
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Compatibility with Economic Development and Socioeconomic and Environmental Priorities
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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.
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D. Environmental, social/cultural, and economic impacts of the AIJ project
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Non-Greenhouse-Gas Environmental Impacts of the Project
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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.
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Social/Cultural Impacts of the Project
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This information is not yet available.
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Economic Impacts of the Project
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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.
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E. Greenhouse gas impacts of the AIJ project
1. Scenario description
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Item
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Site Designation
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Site number (order of presentation in this report)
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1 of 1
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Site name/designation
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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
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Project sector
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Energy
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Reference Scenario
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Primary activity(ies)
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Alternative Energy Generation
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Has the reference scenario changed since the last report? (If yes, explain any changes below.)
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Yes
No
This is the first project report.
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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.
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Predicted Project Scenario
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Primary activity(ies)
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Alternative Energy Generation
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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.
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Actual Project
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Primary activity(ies)
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This information is not yet available.
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Description:
This information is not yet available.
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2. GHG emission/sequestration calculation methodology
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GHG Emission/Sequestration Calculation Methodology
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Site number
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1 of 1
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Project sector
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Energy
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Description of Calculation Methodology for the Reference Scenario
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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.
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Description of Calculation Methodology for the Project Scenario
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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.
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Description of Calculation Methodology for the Actual Project
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This information is not yet available.
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3. GHG emission/sequestration data
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Reporting of GHG emissions/sequestration
(b) Additional information on GHG emissions/sequestration
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Indirect or Secondary GHG Impacts (Positive and Negative)
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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.
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Factors That Could Cause the Future Loss or Reversal of GHG Benefits
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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.
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Strategy for Reducing the Risk of Future Loss or Reversal of GHG Benefits
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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.
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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
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Current or Planned Activities to Obtain Additional Funding
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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.
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G. Contribution to capacity building and technology transfer
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Contribution to Capacity Building and Technology Transfer
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This information is not yet available.
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H. Recent developments, technical difficulties, and obstacles encountered
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Recent Project Developments
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This information is not yet available.
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Technical Difficulties and Other Obstacles Encountered
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This information is not yet available.
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I. Additional information
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Additional Information
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None.
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J. Annex
1. Host country acceptance of the AIJ project
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Country/Project Title
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Name, Title, and Government Agency of the Designated National Authority
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Date of Approval (day/month/year)
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Guatemala/The Santa Teresa Hydroelectric Project
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Director of Energy, Thomas Henry, Guatemala Ministry of Energy and Mines
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23 February 1998
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Letters of approval of this AIJ project report
Letters of support have been provided by:
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