CDM project activity/programme of activities registration request review form (CDM-REGR-FORM) (Version 03.0)

Reference number of the proposed CDM project activity/programme of activities (PoA) submitted for registration	4722
Title of the proposed CDM project activity/PoA submitted for registration	Recovery and Utilization of Associated Gas to Optimize Power Generation at PETROAMAZONAS Block 15 Facilities
Please indicate, in accordance with paragraphs 37 and 40 of the CDM modalities and procedures, which validation requirement(s) may require review. A list of requirements is provided below. Please provide reasons in support of the request for review. Including any supporting documentation.
The following are requirements derived from paragraph 37 of the CDM modalities and procedures:
The participation requirements as set out in paragraph 28 to 30 of the CDM modalities and procedures are satisfied; Comments by local stakeholders have been invited, a summary of the comments received has been provided, and a report to the designated operational entity (DOE) on how due account was taken of any comments has been received; Project Participants have submitted to the DOE documentation on the analysis of the environmental impacts of the project activity, including transboundary impacts and, if those impacts are considered significant by the project participants or the host Party, have undertaken an environmental impact assessment in accordance with procedures as required by the host Party; The project activity is expected to result in a reduction in anthropogenic emissions by sources of greenhouse gases that are additional to any that would occur in the absence of the proposed project activity, in accordance with paragraphs 43 to 52 of the CDM modalities and procedures; The baseline and monitoring methodologies comply with requirements pertaining to methodologies previously approved by the Executive Board; Provisions for monitoring, verification and reporting are in accordance with decision 17/CP.7, the CDM modalities and procedures and relevant decisions of the COP/MOP; The project activity conforms to all other requirements for CDM project activities in decision 17/CP.7, the CDM modalities and procedures and relevant decisions by the COP/MOP and the Executive Board.
The following are requirements derived from paragraph 40 of the CDM modalities and procedures:
The DOE shall, prior to the submission of the validation report to the Executive Board, have received from the project participants written approval of voluntary participation from the designated national authority of each Party involved, including confirmation by the host Party that the project activity assists it in achieving sustainable development; In accordance with provisions on confidentiality contained in paragraph 27(h) of the CDM modalities and procedures, the DOE shall make publicly available the project design document; The DOE shall receive, within 30 days, comments on the validation requirements from Parties, stakeholders and UNFCCC accredited non-governmental organizations and make them publicly available; After the deadline for receipt of comments, the DOE shall make a determination as to whether, on the basis of the information provided and taking into account the comments received, the project activity should be validated; The DOE shall inform project participants of its determination on the validation of the project activity. Notification to the project participants will include confirmation of validation and the date of submission of the validation report to the Executive Board; The DOE shall submit to the Executive Board, if it determines the proposed project activity to be valid, a request for registration in the form of a validation report including of the project design document, the written approval of the host Party and an explanation of how it has taken due account of comments received.
There are only minor issues which should be addressed by the DOE/project participants prior to the registration of the project.
Additional information
1. The DOE shall further substantiate: (i) the appropriateness of benchmark applied as per paragraph 12 of “Guidelines on the assessment of investment analysis”, version 3.1 given that the identified financial indicator is Project IRR whereas the applied benchmark is equity benchmark (Capital Asset Pricing Model); (ii) correctness of the calculation of the benchmark in line with paragraph 111(d) of VVM v1.2; and (iii) suitability of risk premium and the adjustment factor (beta) of the CAPM in line with paragraph 111 (a) of VVM v1.2. Please also provide the spreadsheet of the benchmark calculation. 2. The DOE shall further substantiate the suitability of: (i) crude oil price given that the cost saving of the crude oil is not included in the project revenue, in particular the market price of crude oil; (ii) the assumed amount of gas available for power generation given that the gas production estimates after 2013 reduced about 50% from the level of the years 2009-2013; and (iii) the investment cost. Please refer to paragraph 111 (a) & (b) of VVM v1.2. 3. The DOE shall further substantiate the validation of identified baseline, in particular, how the DOE has justified the elimination of alternative G4, G7, G8 and P3 as per the AM0009 v4 (page 6) given that these alternatives have not been eliminated based on either prohibitive barriers or investment comparison analyses as required by the methodology and the associated gas has been partially processed to produce diesel in the pre-project scenario. 4. The DOE shall further substantiate that: (i) the project emission from consumption of electricity is in line with AM0009 v4 (page 9) given that the project emission due to the use of electricity for the associated gas recovery and transportation etc are not included; and (ii) the project emission has been calculated correctly in line with paragraph 92 (d) of VVM v1.2 given that an “Approach 1” is introduced by the project participant to calculate the electricity consumption by the gas processing equipment (validation report, page 31 & 32).
Date	02 Jul 11