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	3744
Title of the proposed CDM project activity/PoA submitted for registration	Guangxi Liuzhou Iron and Steel (Group) Company Blast Furnace Gas Utilization for Power Generation Project
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 should further substantiate how the DOE has validated the suitability of the input values to the investment analysis to be in line with paragraph 111 of VVM version 01, in particular: (a) the 9% electricity consumed per year as auxiliary consumption given the scale of the project, 62,300 MWh/year of auxiliary consumption is a considerable amount of energy; and (b) the incorporation of the stand-by fee as part of the project cost. While providing the response for (b), the DOE shall substantiate: (i) whether the stand-by fee is solely a result of the implementation of the proposed project activity; (ii) whether a similar fee or an equivalent one was being paid when the project was importing electricity from the grid in the baseline scenario; (c) due to the fact that the stand-by fee is based on the transformers capacity the DOE is requested to indicate if these equipment was installed solely as a consequence of the implementation of the proposed project activity or whether it was already installed in the baseline scenario; (d) whether similar projects in the region apply the so called stand-by fee; (e) whether this stand-by fee has to be paid for the entire operational lifetime of the project activity; and (f) the conservativeness of the method used to incorporate the stand-by fee into the investment analysis by reducing the tariff instead of including it as part of the cost without modification of the tariff. 2. The DOE shall further substantiate the existence of investment barrier as it is not clear whether the low financial return indicated as an investment barrier reflects the real financial status of the proposed project activity, in accordance with the Sub-step 3a of Tool for the demonstration and assessment of additionality, v05.2.
Date	08 Mar 11