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	4040
Title of the proposed CDM project activity/PoA submitted for registration	Inner Mongolia Wuhai 30MW Waste Gas 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 shall further justify that the type of benchmark applied is suitable for the type of financial indicator presented in line with the para 112 (a) of VVM v1.2 given that the PPs calculated the Project IRR (post tax) to compare with the benchmark (pre-tax). 2.The DOE shall further justify the suitability of the input values to the investment analysis in line with the paragraph 111 (a) of VVM v1.2, in particular: (i) the electricity tariff since it is not clear how same tariff can be applied for the cost saving due to the avoidance of electricity import from the grid and revenue generated due to the export of electricity to the grid given that the selling and buying prices of electricity may vary.; (ii) preferential policies as it is not clear why the project activity is not qualified to get preferential policies such as tax reduction; and (iii) demand/capacity charge, if it has been paid in the baseline scenario by the project participant, has not been considered as cost savings in the investment analysis. 3.The DOE should further substantiate the elimination of following baseline options : (a) waste gas is sold as an energy source ( W3); (b) a portion of the waste gas produced at the facility is captured and used for the captive electricity generation, while the rest of the waste gas produced at the facility is vented/flared ( W5); (c) all the waste gas produced at the industrial facility is captured and used for the export electricity generation( W6); (d) captive electricity generation using waste energy ( if project activity is captive generation using waste energy, this scenario represents captive generation with lower efficiency than the project activity, P7). In doing so, the DOE shall explain that these baseline options either: i) have prohibitive barriers; or ii) are clearly economic unattractive as required by step 3 of identification of baseline scenarios of ACM0012 v3.2. 4.The DOE shall ensure that the PP shall monitor the electricity received at the recipient carbon black plant as per requirement in page 40 of ACM0012 v3.2.
Date	23 May 11