Info Report Check
Submission incomplete:
The DOE is requested to describe how it has validated the suitability of the input values used in the financial calculations as per VVS version 2 paragraphs 120 and 123 (a).
1- In the calculation of the NVP of the project scenario, the DOE has validated the total Capex as USD 10,727,496.68. However, the DOE has not provided a validation opinion on the recurring investments of USD 300,000 (every 7 years) and USD 612,453,40 (every 10 years - sum of investment in transport trucks and equipment for land application).

2- In validating the "Savings on operating and maintenance costs lagoon system", it was deemed that the lagoon would be utilized for five months per year (crop period) and that the monthly cost is USD 2,717.70. However, in the NPV calculation, the annual savings on the lagoon O&M cost was calculated based on 5 months for the project scenario and 12 months for the baseline scenario. The DOE is requested to explain this inconsistency.

3- There is no validation/cross check of the components used to calculate the following input values:
a) Transport Costs in the project NVP analysis.
b) Increase in fertilizers application (such as costs of vinasse, potassium and urea application and the area)
c) Cost of fertilizer application in suppliers‟ area (such as area of the suppliers and the cost of vinasse application per area).
d) O&M costs of the project NVP analysis (such as maintenance expenses for the evaporation plant and mixing plant, prices of sodium hydroxide and sulfamic acid, labor costs, electricity costs, equipment costs, price of electricity and specific consumption of electricity in the evaporation process).
e) Savings and Revenues for fertilizer sales (such as price of the fertilizer and the quantity of fertilizer generated).
f) Potassium consumption savings in own area (such as required amount of potassium before the project activity and the price of the potassium)
g) Nitrogen consumption savings in own area (such as the price of nitrogen and the amount of vinasse - 50% applied per year).
h) Savings due to operation of the pipeline for transportation of vinasse (such as the operation cost of the pipeline (mainly electrical costs)
i) Cost savings for irrigation of treated wastewater
j) Savings in transportation costs (such as transportation costs of vinasse and potassium and urea).

4- There is no validation of the investment cost considered in the NVP calculation for the baseline open lagoon system.