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The World Bank Group 10/1/2011 Community Development Carbon Fund CBP Synopsis

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Page 1: Community Development Carbon Fund CBP Synopsis - World Banksiteresources.worldbank.org/.../CDCF_CBP_Synopsis_10-1-11_Final.pdf · Community Development Carbon Fund CBP Synopsis

The World Bank Group

10/1/2011

Community Development Carbon Fund CBP Synopsis

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Table of Contents

CDCF Projects with Indirect Benefits

Introduction ................................................................................................................................................... 3

Argentina: Salta Landfill Gas Capture Project ............................................................................................. 4

Bangladesh: Improving Kiln Efficiency in the Brick Making Industry, Hybrid Hoffman Kiln (HHK) ....... 6

China: Guangrun Hydropower Project ......................................................................................................... 9

China: Animal Manure Management System (AMMS) GHG Mitigation Project , Shandong .................. 11

Guyana: Skeldon Bagasse Cogeneration Project ........................................................................................ 13

Honduras: La Esperanza Hydro .................................................................................................................. 15

India: FaL-G Brick and Block, Micro Industrial Plants .............................................................................. 17

India: Karnataka Municipal Water Pumping Improvements ...................................................................... 19

India: AEL Street Lighting Energy Efficiency Project ............................................................................... 21

Kenya:KenGen Bundle of Projects, Olkaria & Tana .................................................................................. 23

Peru: Santa Rosa Bundled Small Hydro ..................................................................................................... 26

Philippines: Laguna De Bay Community Waste Management Project ...................................................... 28

Philippines: Ethanol Plant Wastewater Biogas Project ............................................................................... 30

Thailand: Livestock Waste Management Project ....................................................................................... 33

Uganda: Municipal Composting Program .................................................................................................. 35

Uganda: Kampala LFG-to-Energy project .................................................................................................. 37

Yemen: Loss Reduction in Electricity Distribution Systems Program ....................................................... 39

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Introduction

Under the Kyoto Protocol more than one hundred and forty countries agree to work together and fight climate change by putting in place policies and measure to collectively reduce 5 percent of their emissions between 2008 and 2012 as measured against 1990 levels. Such measures include steps to promote sustainable energy consumption, use of clean technologies and sustainable land management practices.

To meet this binding commitment, developed nations have the option to reduce part of their emissions domestically. The Protocol also allows industrialized nations to buy emission reduction credits from

developing countries through the Clean Development Mechanism (CDM), or from countries with economies in transition (through Joint Implementation or International Emissions Trading). The credits come from carbon financed projects or programs in the developing world that utilize clean and energy efficient technologies.

The Community Development Carbon Fund (CDCF) pioneers the concept of carbon finance and community development co-benefits through the type of CDM projects it promotes and the poor and isolated geographical locations it targets. One of the objectives of the CDCF is to provide an opportunity to poor countries in the least developing world to access and benefit from CDM projects and programs, with the aim of ensuring that poor communities within the proximity of projects sites benefits from social and economic activities that helps to improve their living conditions and livelihoods. Aside from generating environmental benefits and GHG emission reductions, all CDCF projects provide poor local communities tangible and measurable community benefits that are either inherent to the project or additional. Community benefits are identifiable and quantifiable improvements in the quality of life or the environment of local communities as a result of the Community Benefits Plan (CBPs). Direct co-benefit typically arise through the project itself whereas indirect community benefit activities are developed alongside the CDM project within a CBP. CBP activities are identified and designed in consultation with the Project Developers, beneficiary communities, the World Bank and other stakeholders; then financed by a price premium attached to each emission reduction credit sold to the CDCF. On some occasions, these funds can be provided in advance of the sale of the credit or as a grant. As such, CBP monitoring and yearly reporting is integral to the legal requirements under the Emission Reduction Purchase Agreements with CDCF. As of October 2011, the CDCF portfolio is comprised of 27 active CDM projects, of which 9 generate direct community benefits and 18 provide indirect community benefits. This report reviews in detail the 18 CDM projects that generate indirect community benefits, including a project description, current country context, co-benefits, community benefit plans, CBP monitoring plans, CBP implementation summary and project photos. The remaining 9 CDCF projects that provide direct community benefits are listed below: Bangladesh: Installation of Solar Home Systems in Bangladesh Program (Grameen) Bangladesh: Installation of Solar Home Systems in Bangladesh Program (IDCOL) China: Hubei Ecofarming Biogas Project Moldova: Biomass Heating and Energy Conservation Nepal: Biogas Project Nepal: Micro-hydro Promotion by Alternative Energy Promotion Centre (AEPC) Pakistan: Community Based Hydropower Development Project Rwanda: CFL Energy Efficiency Project Senegal: Lighting Energy Efficiency in Rural Electrification Program

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Argentina: Salta Landfill Gas Capture Project Project Description: The project activity aims to reduce

greenhouse gas (GHG) emissions by capturing and flaring

landfill gas generated at the municipal landfill of the city of Salta,

Argentina. The project aims to displace 72,008 tons of carbon

dioxide equivalent (tCO2e) into the atmosphere during the first 7

year crediting period that runs from 2009 -2015. Revenues

earned through the sale of these CDM compliant certified

emission reductions (CERs) are administered by the

Municipality of Salta to improve landfill operation and overall

waste management for the city, as well as toward the community

benefits plan.

Community Benefits Plan: A community benefits plan (CBP) additional to the main project was prepared at the initiative of the Community Development Carbon Fund (CDCF). The objective of the plan is to improve the infrastructure and working conditions for separating, classifying, storing, and recycling inorganic components of municipal waste before it is taken to the landfill. Enhanced solid waste management will improve the environmental conditions of the areas surrounding the landfill site, where several thousand people live in slums. Beneficiary Community Profile: The main beneficiaries of the CBP are the informal waste recyclers who separate, classify, store and sell recyclable materials, mostly plastic and paper, from the municipal solid waste that is disposed at the landfill site. These men and women are in the range of 20 and 55 years of age and live in the neighborhoods surrounding the landfill site. The population in the area shows a high rate of unsatisfied basic needs and structural poverty related problems. Their average level of education is primary school. Only some have completed the first years of secondary school. The municipality of Salta conducted a socio-economic survey among the waste recycling workers at the landfill site that enabled them to determine the primary needs of this group in terms of improving the overall quality of the working conditions and the commercial returns of their activity. Priority needs were identified by beneficiaries for the development of the CBP.

Table: CBP Activity Summary Deliverables Description

Shelter for workers activities

Steel shelter with corrugated metal roof, masonry walls, and concrete floor will be constructed.

Paper compactor room

Room with masonry walls, corrugated metal roof, and concrete floor will be constructed.

Multiuse room and kitchen

Corrugated metal roof, metal openings, insulated ceiling, and masonry walls with a kitchen with concrete board and sink will be constructed.

Bathrooms and sanitary services

Three washrooms for women, two washrooms for men, cold and hot water supply for four showers, and four lavatories will be constructed.

Yard for waste discharge

A 15 m (front) x 25 m yard with a concrete floor, drain system, and septic chamber will be constructed.

Paper and cardboard collected at the landfill

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CBP Implementation Summary

Type Indirect

Status CDM project not commissioned. CBP activity implementation yet to start and is likely to be revised once clarity on project commissioning is obtained.

Time Frame Project commissioning through to end of ERPA

Budget US $ 40,200

CBP Monitoring Plan : The Community Benefits Plan is an integral part of the Emission Reduction Purchase Agreement (ERPA) with the CDCF. As such CBP activities are to be systematically monitored and reported to the CDCF on a yearly basis. A CBP monitoring template containing key output-based indicators has been shared with the Project developer (PE). The template also provides additional qualitative questions intended to guide the project developer document some of the initial impacts/outcomes from implementing CBPs. The aim of this monitoring template is to help the PE meet its responsibilities by monitoring CBP activities and collecting both quantitative and more qualitative information on CBP status, achievements and lessons learned.

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Bangladesh: Improving Kiln Efficiency in the Brick Making Industry, Hybrid Hoffman Kiln (HHK)

Project Description: The project aims to reduce GHG emissions by building 16 new energy efficient Hybrid Hoffman Kilns (HHK), located in Savar, Gazipur, Demra and surrounding areas of Dhaka and Comilla cities. The first of its kind HHK technology reduces the amount of coal used per brick by recycling heat in the brick making progress as well as by mixing pulverized coal into the clay from which the bricks are made. Like traditional Bangladeshi kilns, HHK kilns heat with coal, but because each kiln uses only half as much fuel to operate, the new technology is much cleaner, reducing CO2 by around 50 percent. In total these 16 HHK kilns will reduce GHG emissions by approximately 100,000 tCO2e per annum. The

revenues from the sale of the emission reductions will be shared between the Industrial & Infrastructure Development Finance Company Ltd (IIDFCL) – the bundling agent - and the kiln owners.

Country Context: Brick making in Bangladesh is a highly energy-intensive and carbon-emitting activity. It is one of the most polluting enterprises in the country discharging an estimated 3.0 million tonnes of CO2 annually as well as substantial particulate matter that can be inhaled deeply into the lungs, contributing to respiratory, heart and other ails. The wider dissemination of the HHK technology would result in energy savings and reduced air pollution. The project interventions are also expected to have significant additional impacts from reductions in wood fuel usage. Bangladesh has over 4,000 brick kilns employing several hundred thousand people on a seasonal basis. The brick workers in the traditional brick making industry in Bangladesh are often very poor and

are subjected to extreme working conditions and poor remuneration. Workers are remunerated based on

the completion of tasks. The monsoon season reduces employment to a maximum 150 days per year.

Workers do not have access to on-site toilets or clean drinking water. Furthermore, they face daily

occupational health and safety hazards such as inhalation of smoke from the kilns, heavy lifting and

exposure to heat. They usually do not wear any form of protective clothing. First aid kits are usually

unavailable, and worker health checks are not provided despite the occupational health and safety issues

which workers confront.

Community Benefits: The project will provide both direct environmental benefits and indirect community benefits. The social and environment framework (ESMF) prepared by the project developer and approved by the World Bank, is expected to raise occupational health and safety standards in the sector, reduce the environmental burden of the sector and improve labor practices. Moreover, the new kiln

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technology results in stronger, higher quality and lower-cost bricks.

Direct benefits include reduction in air pollution and associated respiratory ailments, improvements in work environment and employee health, reduced fuel imports and rates of land degradation. All year round employment will be an added benefit during which new skills related to brick making techniques, operation and maintenance of back process machinery, advanced firing techniques and management will be transferred. The community benefits plan will specifically support the provision of ablution facilities, a small multi-purpose facility for providing first aid and regular primary health care and safety gear and appropriate clothing at each kiln.

- CBP Implementation Summary

Type Indirect

Status The implementation has started at 4 operational sites. CBP funding advanced by PE

Time Frame Project commissioning through to end of ERPA (2015)

Budget US $ 189,000

Monitoring Plan: The CDM data and CBP parameters to be monitored are included in the Environmental Management Framework (EMF). Data collection and monitoring will be conducted manually by the plant operators. The plant owners (entrepreneurs) will monitor the data for their respective plants on batch-wise coal consumption, daily brick production and weight of the bricks once a month and record the information in the plant register. Additionally, the calorific value of the coal will be monitored once every six months. Clean Energy Alternatives (CEA) will carry out an audit of 10% of the plants on an annual basis.

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Table: CBP Activity Summary

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China: Guangrun Hydropower Project Project Description: The Guangrun hydroelectric power company aims to construct and operate three small-sized hydropower stations with a total installation capacity of 28 megawatts (MW) in Jianshi County, Hubei Province. This project will supply about 92.66 gigawatt-hours (GWh) of renewable energy annually. This will reduce imports and increase the export of energy to Hubei Provincial Power Grid. It will subsequently displace power generation by coal-fired thermal power plants/units in the wet season and combined cycle and gas units in dry season. The objectives of the project are fourfold: renewable power generation, water supply security for 70,000 people in Jianshi County, flood control capacity, and tourism development. It will also help reduce poverty in the county by creating employment opportunities for about 1,500 local residents. This project will create certified emission reductions of about 485,000 tCO2 over 8 years. Beneficiary Community Profile/ Context: In 2002, Jianshi Country was listed as one of the 492 poorest counties in China. More than 95 percent of its total population of 52,000 lives in the rural mountainous areas with no access to electricity. Many of the rural households depend on battery-operated lighting, which is costly to maintain due to charging fees. Historically, hydro resources development has relied on the county electricity company, which lacks financial resources and has experience with only mini hydro project development. Until 2003, the hydro plants under its management had only a capacity of 43 MW, with the largest hydro with a capacity of 2 MW. This project will supply renewable energy at an affordable cost to the rural poor. Community Benefits To date the project has successfully implemented all the activities identified in the CBP plan below.

Table: CBP Activity Summary

Deliverables Description Location Benefit Time

Improve condition of infrastructure of communities

A local road, water tank, and transport project will benefit 11,042 residents in project-affected areas.

Villages: Dangyangba, Shanmu, Qishuya, Hongtuping, Chayuangou Longmenzi, Jigongling, Qilping, Tianjiatping

Project Construction Period

Promote the development of medical care and education of communities

An elementary school will be renovated and village clinics will be built to provide training on pandemic disease prevention, targeting 14,007 local residents.

Villages: Dangyangba, Shanmu, Qishuya, Hongtuping, Chayuangou Longmenzi, Jigongling, Qilping, Tianjiatping

Project Construction Period

Build up productive skills of community residents

Training to increase agriculture productivity and pig farming will be provided for 3,000

Villages: Dangyangba, Shanmu, Qishuya, Hongtuping, Chayuangou Longmenzi, Jigongling, Qilping, Tianjiatping

Project Construction Period

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community residents in project-affected areas.

Provide short-term employment opportunities for residents

Some 120 community residents will be hired for project construction.

Villages: Dangyangba, Shanmu, Qishuya, Hongtuping, Chayuangou Longmenzi, Jigongling, Qilping, Tianjiatping

Project Construction Period

Expedite development of tourism and catering services

Tourism services will be provided by 2,173 community residents based on the reservoir created by the project.

Villages: Dangyangba, Jigongling, Hongtuping, Chayuangou

Long-term

Expedite the exploration and development of the cultures of local ethnic groups

Funding will be provided for an ethnic culture museum and annual culture festivals for the 509,000 residents of Jianshi County and the minority residents.

All people in Jianshi county

Long-term

CBP Implementation Summary

Type Indirect

Status Completed

Time Frame Project commissioning through to end of ERPA

Budget US $ 388,000

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China: Animal Manure Management System (AMMS) GHG Mitigation Project , Shandong Project Description: This project, developed by The Shandong Minhe Livestock Co. Ltd., aims to mitigate greenhouse gas (GHG) emissions from chicken manure by improving animal manure management systems at chicken farms and utilizing a biogas cogeneration system to supply electricity to the grid that would otherwise be generated from coal-fired power plants. The project is mainly composed of a pre-treatment system, high-efficiency anaerobic digestion system, methane liquid and dregs separation and storage system, methane gas purification and storage system, methane gas power generation and residual heat utilization system. 72,371 tCO2e will be mitigated per year over the course of a 10 year crediting period. Current Context: Animal operations in China are becoming more intensive so as to achieve economies of production and scale. These intensive animal operations result in large amounts of manure and wastewater that significantly pollute the environment, including GHG emissions, odor nuisance, and profound water/land contamination. Confined Animal Feeding Operations (CAFOs) use similar AMMS- uncovered anaerobic lagoons to treat and store animal manure, uncovered anaerobic lagoons emits large amounts of GHGs from the anaerobic decomposition processes. Benefits: The advanced animal manure management system will generate direct benefits namely: help reduce CH4 and N2O emissions from animal wastes; reduce the nuisance of odors and wastewater, benefiting both farmers’ and children’s health; increase local employment for skilled labor during production, installation, operation, and maintenance of equipment and systems; establish a positive model of animal manure management practice for other animal operations. In addition a Community Benefits Plan was designed based on consultations with residents of the nearby villages of (Wujia and Qujiagou and the villages of Hanwang and Miaojiagou). These villages are characterized as having higher rates of poverty and limited infrastructure. Through construction of infrastructure in the four poverty-stricken villages, the CBP is aiming to provide methane fertilizer of high quality and relevant technical training service so as to improve the production and living conditions of local people, propel the overall development of local economy and speed up the poverty relief process in project-affected areas.

Table: CBP Activity Summary

Benefits Activity Description

Better access to roads and drinking water

Infrastructure construction

Road repair from: Wujia to Hangwang village, Hangwang to Pengshui village, and Miaojiagou village. Construction of irrigation and drinking water project in Qujiagou village

Better agricultural production by use of organic fertilizer

Provision of digested solid and liquid fertilizers

Provision of fertilizers to Wujia, Hangwang, Pengshui and Miaojiagou villages

Knowledge and capacity building on use of fertilizer

Provision of class & onsite training, booklets

Provide skill training to households in the use of liquid and solid fertilizers in order to help increase their income generation

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CBP Monitoring Plan : The implementation of the CBP has been systematically monitored and reported to the CDCF as part of annual supervision led by the World Bank team. All CBP project activities have been completed apart from the provision of organic fertilizer, which will continue until the end of the ERPA term (2013).

CBP Implementation Summary

Type Indirect

Status Partially completed

Time Frame Project commissioning through to end of ERPA

Budget US $ 279,000

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Guyana: Skeldon Bagasse Cogeneration Project Project Description: The objective of the project is to use the bagasse by-product of GuySuCo’s new Skeldon sugar factory in an efficient manner and to generate electricity for internal use as well as for sale to the national grid. The project displaces the use of light fuel oil in diesel engine-driven generators operated by GPL, the national utility, in the Berbice region. The cogeneration project will generate surplus electricity at an average of 10 MW, delivering approximately 77 GWh per year to the Berbice regional grid on a firm power, year-round basis. Of the 77 GWh to be exported to the grid annually, about 85 percent will be generated directly from bagasse. While the project has started operation in 2009, technical and operational problems has so far prevented generation of emission reductions. The CDCF expects to purchase emission reductions worth 165,000 tCO2e by 2014. Current Country Context: Guyana is a sparsely populated country with one of the highest rates of poverty in the western hemisphere (35 percent). Most of the rural poor are self-employed in agriculture or work as manual laborers. Sugar is the most important primary product in Guyana’s traditional sector. The sugar industry generates about 30% of Guyana’s agricultural GDP and is the largest net earner of foreign exchange in the country. It also directly employs 25,000 people, or about 10 percent of Guyana’s labor force. It contributes to 16 percent of the country’s total GDP and 23 percent of export earnings. In Guyana there is a critical need for reliable electricity supply at affordable prices so as to increase economic growth. Reliability of electricity supply is low and characterized by frequent and long outages, load discharges, and voltage variations. Companies’ losses attributable to energy outages are estimated to reach up to 4 percent of their total sales on average. Poor reliability has been linked to dependence on old and obsolete equipment for power generation, underinvestment in the distribution grid, and lack of incentives for efficient provision of service. Benefits: Aside from reducing GHG emissions, the project will generate direct benefits that include: More reliable electricity to the Berbice region thanks to an additional 10 MW of electricity supplied to the national grid; Decreased dependency on fossil fuel; Creation of local employment by the project itself, private farmers and cooperative societies (who will cultivate about 4,000 hectares). In addition to the new sugar mill, the new facility will expand its cultivated area at Skeldon from 4,800 to 9,300 hectares; Improved coordination and cooperation between various stakeholders including GuySuCo, local government, unions, and the community thanks to the number of stakeholder mechanisms created during the project development phase. In addition the project will provide indirect community benefits. A revised Community Benefits Plan will be developed in consultation with local poor communities to reflect the need to amend the CER contract volume down. The project is registered and constructed. CBP activities would begin once all ERPA requirements are fulfilled and clarity on CER forecasts is obtained. Tentative CBP activities could include support to the local hospital, improvements to GuySuCo’s community center, as well as the hiring of a grass cutter to undertake urban landscaping in public community areas (schools playgrounds, religious centers, and parks).

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CBP Implementation Summary

Type Indirect

Status Yet to start

Time Frame ERPA term

Budget To be determined once ER generation estimates are clarified

CBP Monitoring Plan : CBP implementation and progress will be systematically monitored and reported to the CDCF on a yearly basis as per ERPA requirements. A monitoring template comprised of quantitative and qualitative indicators will be made available to the PE once the revised CBP is finalized. These indicators are output based. The monitoring template also provides additional qualitative questions intended to guide the project developer document some of the initial impacts/outcomes from implementing CBPs.

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Honduras: La Esperanza Hydro

Project Description: La Esperanza is a 12.7-megawatt run-of-river hydropower plant in a remote and mountainous rural area of Honduras. The old abandoned hydro plant site was recovered, the first stage of the project was contracted, and all of the new generation capacity was in place by the end of 2005. The project was supported by the income from the sale of 54,354 tCO2e emission reductions to the CDCF. Current Country Context : Honduras is one of the poorest countries in Latin America. Most of the poor live in rural areas where the incidence of poverty is almost 75 percent. Only 37 percent of the rural population has access to electricity. The town of La Esperanza has an irregular electrical supply, and towns nearby are entirely without power. The lack of power has stymied economic development and compromised livelihoods. Benefits: A community benefits plan (CBP) additional to the main project was prepared at the initiative of the CDCF. The project developers carried out a series of meetings in the city of La Esperanza and Lepaterique, Santa Anita, and San Carlos, which are areas directly affected by the project. Promoters also met with governmental and nongovernmental agencies. Project information was disseminated and meetings announced through various means, including local radio, which has the greatest reach. To address any possible community concerns, the project developer, CISA, opened an office in La Esperanza in November 2000. The main community benefit has been a reliable and steady supply of electricity to the town of La Esperanza and many of the surrounding communities, totaling 40,000 people. In addition, the project has also provided much-needed employment in La Esperanza and surrounding communities.

Table: CBP Activities Summary

Deliverables Description

Financial Project developer CISA contributed at least $12,000 by December 2007 to an electrification program for 450 people in San Fernando and La Esperanza.

Electricity The project improved electricity services for the town of La Esperanza (10,000 inhabitants) allowing for a reliable and high-quality supply covering the full demand by mid-2004. Until then the use of three phase motors, electric machinery, and so on for small businesses had not been possible. Electrification of the community of Santa Anita (50 households, 290 people) was completed in December 2004, and a $12,000 contribution was made to electrify another community of 450 people.

Employment Some 120 local residents had full-time employment during the project construction phase. At least 20 people have been employed during the operation phase.

Capacity building

Local communities in the Rio Intibuca basin can apply for rural electrification grants or loans from government and other sources.

Afforestation & reforestation

A total of 25,000 seedlings a year covering 22 hectares will be planted between 2004 and 2012. Thus far, the number of seedlings planted has exceeded the target and is likely to continue to exceed it. This will reforest degraded

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watershed areas around the project site. The deforestation has had a profound impact on the life of the local communities, as it threatens their water supply.

CBP Implementation Summary

Type Indirect

Status Fully implemented and completed

Time Frame ERPA term

Budget US $ 275,000

CBP Monitoring Plan : All CBP project benefits have been fully implemented and completed. Testimonial: Mrs. Esla Vasquez is a 38-year-old member of the community of Santa Anita who

can now make a living by selling food to CISA’s employees. With the regular income she has from the food she provides to company workers, and with the money and time she will save when she has electricity in her house, Elsa can now dare to dream of growing her business: “I consider that having electricity in our home will save us lots of money. Right now I spend 80 Lempiras a month buying candles and 360 Lempiras to buy firewood for cooking; also I will benefit because I could start a small business—a grocery store.”

Ms. Esla Vasquez and family (Photo: CISA)

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India: FaL-G Brick and Block, Micro Industrial Plants Project Description: The project aims to reduce GHG emissions by promoting fly ash bricks as an alternative to burnt clay brick in the construction sector in India. Fly ash, the key ingredient of FaL-G technology, is a waste product from thermal power plants that is abundantly available in India. By recycling fly ash and mixing it with lime and gypsum, bricks are produced without the use of coal or firewood and GHG emissions are avoided. The CDCF will purchase about 450,000 tCO2e from four PDDs combining a bundle of roughly 87 FaL-G mini plants. Together the four project bundels are expected to generate about 130,000 tCO2e per year over the course of a 10 year fixed crediting period.

Current Country Context: The manufacture of traditional clay bricks causes heavy environmental damage. Traditional brick manufacturing requires burning 200 tons of coal for every 1 million bricks. The government of India has already committed to banning clay bricks in urban centers, but economical technological solutions have to be found to achieve this goal. The construction industry in India has been booming in the context of rapid growth and urbanization. As a result the demand for clay bricks, the predominant construction material in India, stands at over 100 billion bricks a year. The suppliers range from industrialized

modern manufacturers to old-fashioned small-scale operators. The workers in these factories are subject to extreme and harsh working conditions and poor remuneration. During working hours, workers seldom have access to toilets or drinking water. Brick workers in India are amongst some of the poorest and most vulnerable groups, often landless and from Scheduled Castes or Tribes. Both male and female members of the family engage in brick making, and are followed by their children. The work force is remunerated based on completion of tasks.

Benefits: The project generates intrinsic environmental and social benefits namely: Conservation of coal and abatement of GHG emissions as

well as air pollution. The Fal-G process does not bake bricks in kilns, thus avoiding air pollution.

Conservation of top soil and preventing the denudation of fertile lands. Unlike the Fal-G process, traditional clay brick manufacture denudes fertile topsoil in the manufacturing process: 3,500 tons is used for every million burnt clay bricks.

Recycling of industrial wastes such as fly ash and gypsum leading to conservation of commensurate mineral resources, and abatement of sub-soil pollution.

Continuous year round operation provides stable year long employment opportunities for brick workers, unlike the seasonal clay brick manufacturing, which stops during the rainy season.

Distribution of bed sheets to Fal-G workers

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Intrinsic benefits of the project are further enhanced by indirect community benefits described in a specific community benefits plan that is implemented under the requirements of the Community Development Carbon Fund (CDCF). CBP benefits include the provision of health and accident insurance coverage to Fal-G workers, improved working and onsite living conditions thanks to the construction of sanitary facilities, the provision of personal safety gear as well as health benefits as a result of AIDs awareness campaigns, the distribution of health and safety publications in English and vernacular languages, mosquito nets, and first aid kits.

Table: CBP Activity Summary

Community Benefit CBP Activity

Provision of health

insurance and accident

cover

Hospitalization insurance as well as accident and death insurance as one package provided

per worker per site

Improved living and

working conditions for

workers

Personal safety gear, namely helmets, shoes, nose masks, gloves, women’s protective

coats as well as basic onsite sanitation facilities (toilet, drinking water, washing)

Year round employment

for workers

Year round employment opportunity, compared to seasonal employment in the traditional

clay brick industry which cannot produce bricks during the rainy season.

Reduced risk of HIV/

AIDS

Aides awareness programs and sensitization materials provided

Improved health status First aid kits distributed from July 2011. Yearly health checkups for workers provided up

to March 2011. Posters, notice boards and booklets describing good health practices

provided on site; Mosquito nets provided; Tarpaulin provided to each site

CBP Implementation Summary

Type Indirect

Status Ongoing

Time Frame ERPA term

Budget US $ 429,000

CBP Monitoring Plan : The operationalization of the CBP is to be systematically monitored and reported to the CDCF on a yearly basis. A monitoring template, comprised of quantitative indicators to be monitored as per the ERPA was provided to the Project developer. Alongside the CDCF contract the project developer signed sub-agreements with the entrepreneurs of each FaL-G brick and block manufacturing unit participating in PDD 1, 2, 3 and 4. Under this sub-agreement each entrepreneur is responsible for the implementation, monitoring and reporting of the CBP activity. Furthermore they maintain and update the list of persons employed, covered by the insurance arrangement and by the health services.

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India: Karnataka Municipal Water Pumping Improvements Project Description: The project aims to reduce GHG emissions by reducing the energy required for water service delivery in six municipalities in the State of Karnataka in Southern India. In most municipalities, the existing bulk water supply pumps are old and inefficient. The project involves the replacement and the retrofit of these systems with more efficient models and correct size pump components in order to reduce the specific energy consumption expressed in kWh per m3 of water pumped by the system. Overall it is expected to save about 23.7 million kWh of electricity per annum. Reduction in electricity consumption will lead to less use of coal and other fossil fuels. Approximately 21,333 tCO2-e will be avoided per year, over a 10 year fixed crediting period. Other noxious gases such as carbon monoxide, SO2, NOx, mercury, and particulates will also be reduced. The CDCF will purchase about 55,000 tCO2e from the project, which is developed by Quality Tonnes, LLC and sponsored by Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC).

Current Country Context: The pressure on water and energy resources in urban India is rising rapidly due to rapid population growth and urbanization. The State of Karnataka, has 208 municipalities that are all facing a huge water and energy crisis. Electricity makes up 40-60% of water supply costs. Thirty to forty percent of water is lost through leakage and unaccounted use during distribution. This project encompasses several water supply systems and raw water treatment plants for each of the six municipalities. These water systems supply treated, potable water to the Municipalities of Mysore, Bellary, Hubli-Dharwad, Mangalore, Belgaum and Gulbarga. The projects are aimed at reducing the energy consumption required to provide municipal water services. It will reduce the fossil fuels required for electricity generation in Karnataka, while maintaining or enhancing the current production and service levels. The electricity in Karnataka is generated largely from coal.

Benefits: This project will improve the access of consumers in the six municipalities to clean water which has a host of health, economic and environmental benefits, including reduction of water-borne diseases like dysentery and trachoma, and reduction of the time households (typically the women in a household) spend trying to collect clean water. As part of its contribution to community development, a Community Benefit Plan was developed under the CDCF for each participating municipality by funding basic social services. The beneficiary communities are urban poor slum dwellers. Their poverty and socio-economic profile characterizes them as very poor because their per capita annual income is less than 23,124 Indian Rupee. Families earn income as day laborers, doing masonry work, fishing and other low wage labor. These communities have limited access to basic

social services and economic infrastructure. The major priorities identified by these communities are lack of access to drinking water, sanitation, electricity, education and health services. In particular, they prioritize improvement to school facilities and the learning environment.

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Key state government bodies, municipal officials, and a key local NGO have all been involved in developing Community Benefit activities. Beneficiary communities are involved in the design of the activities through a network of awareness programs. Public participation at all stages of developmental work is being employed to allow the community to understand the benefits and adequately and properly utilize these local services. The implementation of the CBP will begin upon project registration with the CDM.

Table: CBP Activity Summary

Benefit Actions Beneficiaries Indicators Baseline Provision of water supply to Government primary schools in the vicinity of slums

School children, school teachers (1 school in each ULB)

-number of children accessing safe drinking water - improved health and personal hygiene of children

Government primary school children lack access to safe drinking water facilities

Provision of separate toilet facilities for boys and girls

School children (1 school in each ULB)

- reduced illness of communicable diseases - increase in retention rate - increased sense of privacy and self esteem among children especially girls - avoided open defecation and clean school environment

Government primary school children lack access to toilet facilities. This creates a poor school environment and children often fall sick due to communicable diseases. This affects the performance and learning as well as increases the rate of absentees

Awareness programs for children on conservation of rain water and provision of rain water harvesting facilities

Students and their families

-increased awareness about importance of water conservation and usage

Lack of awareness on rain water conservation and inefficient use of rain water. Scarcity of water in urban areas

CBP Implementation Summary

Type Indirect

Status Yet to start

Time Frame ERPA term

Budget US $ 55,000

CBP Monitoring Plan : The operationalization of the CBP is to be systematically monitored and reported to the CDCF on a yearly basis. A monitoring template is available to be used by the Project developer and it includes all indicators that have to be monitored as per the ERPA. Once the project is operational, the monitoring template will be used as a tool for monitoring and reporting the implementation progress of the CBP.

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India: AEL Street Lighting Energy Efficiency Project

Project Description: This project aims to reduce electricity consumption and reduce emissions by improving the street lighting network in 8 municipalities in India as a Demand-side Management (DSM) program. Fluorescent (T12) and mercury/sodium vapor fixtures/ lamps, which are widely used in India, will be replaced by more energy efficient technologies like T5 fluorescent tubes with electronic ballast or high pressure sodium lighting systems. This is expected to save around 37.8 Million kWh of electricity per annum and will reduce GHG emissions from the electricity grid by approximately 32,870 tCO2e per year over a 10 year crediting period. The CDCF will purchase about 80,000 tCO2e. Asian Electronic Limited (AEL), a private international company, will implement both the technical and CDM aspects of the project while the Municipalities will act as the project developers and in effect will be AEL’s customers.

Current Country Context: Under business as usual, energy efficient lighting is not a priority as the needed investment competes with more urgent social needs. The common practice involves basic maintenance tasks, consisting of replacement of burnt-out baseline lamps with the same baseline technology, due to low cost and municipal financial constraints.

Benefits: Direct environmental and social benefits generated by the project include: The reduction in electricity consumption leading to a lesser use of coal and other fossil fuels

needed to generate electricity, resulting in less carbon dioxide, carbon monoxide, SO2, NOx, mercury and particulates emitted into the atmosphere.

Training and education of the municipal employees: This will create awareness on the efficient use of electricity and proper energy management’s positive effect on the environment.

The reduction in energy use: The project will encourage a greater investment in municipal street lighting and provide more resources for more efficient lighting in municipalities.

Supporting the overall financial performance of the municipalities themselves, by reducing energy bills.

Supporting employment during the implementation and monitoring phase of the project activity.

Promoting a best practice in street lighting technology and management by using efficient

lighting equipment and reducing lines overloading. In addition, the project will provide indirect community benefits through a Community Benefits Plan designed alongside the CDM project. A premium will be provided per CER sold to the CDCF to fund lighting in identified schools in each of the municipalities and other activities listed in the table below. The beneficiaries will be the urban poor slum students located in primary schools managed by the local Governments in 13 Towns in India namely: Amritsar Mogha, Hissar, Ajmer, Alwar, Indore, Ujjain, Akola, Pimpri Chinchwad, Pune, Solapur, Belgaum, and Hubli Dharwad. Urban slum communities are characterized as very poor because the per capita annual income is less than 23,124 Indian Rupee. Their source of economic livelihood consists of day laborers, masonry, and menial jobs. These communities have limited access to basic social services and economic infrastructure, and the majority of the schools located in the urban slums areas do not have sufficient or necessary machinery for quality learning. For example there are shortages of books, computers, and teachers in many of these schools. It is quite common to see one teacher teaching for extensive period of time and multiple subjects. Due to lack of sufficient infrastructure, a school is often used for both primary and secondary teaching, with primary starting in the morning and secondary students continuing through the evening.

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Table: CBP Activity Summary

Benefit Actions Beneficiaries Indicators Baseline Providing textbooks to children

School children, 7-8 schools in each towns (total # of town 12)

-# of children having continuous access to books -Increase retention rates -Improve learning habits & performance

Government primary school children lack access to text books

Provision of computers-Only in Pune Town

10,000 primary school children in urban slums. Total # of 5 schools will be selected and each school will be supplied with 6-8 computers

-# of students acquiring basic computer skills

Government primary school children do not have sufficient computers supply in their schools, some schools do not have access to computers

Provision of electricity-inverters to primary urban slum schools in 12 towns

7-8 schools per town in the 12 towns, affecting an approx. 24,000 student population

Increased number of attendance and retention Improve performance and learning environment of children

Majority of urban slum primary schools have infrequent access to electricity, while some do not have access at all

CBP Implementation Summary

Type Indirect

Status Yet to start

Time Frame ERPA term

Budget US $ 79,000

Monitoring Plan: AEL will assist municipalities to prepare a community benefits plan, in consultation with identified beneficiaries and to monitor the implementation of CBP activities thereof. The operationalization of the CBP is to be systematically monitored and reported to the CDCF on a yearly basis. A monitoring template is available to be used by the Project developer and it includes all indicators that have to be monitored as per the ERPA. Once the project is operational, the monitoring template will be use as a tool for monitoring and reporting the implementation progress of the CBP.

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Kenya: KenGen Bundle of Projects, Olkaria & Tana

Project Description: Olkaria II Geothermal

Expansion Project: The geothermal site is located in the

Hell’s Gate National Park, approximately 132km

northwest of Nairobi. A third steam turbine will be

added to increase the capacity of the existing Olkaria

Geothermal Power Plant in Olkaria, Kenya, from 70 to

105 MW, with an estimated additional annual generation

of 276 GWh. By using the geothermal resources of

Olkaria to generate electricity, the project will displace

electricity produced by fossil-fuel-powered plants in the

electricity grid equivalent to 149,632 tCO2e per year

over a seven year renewable crediting period. The

CDCF will purchase emission reductions from the

project totaling about 650,000 tCO2e.

Redevelopment of Tana Hydro Power Station Project: The objective of the project is to rehabilitate the

Tana hydro power station with a new power house and utilize water from Tana and Maragua rivers to

generate electricity. The project will result in greenhouse gas (GHG) emission reductions by displacing

fossil fuel-based electricity generation in the Kenyan grid with additional clean hydropower. The Tana

Power Station lies just upstream of the confluence of the Tana and Maragua Rivers at the end of the

Masinga Reservoir, about 120 kilometers north of Nairobi. A new power house generating 130.3 GWh

will supply an additional 71.5 GWh per year of renewable electricity to the Kenyan grid, reducing GHG

emissions by 27,624 tCO2e per year over a 10 year fixed crediting period. Roughly 170,160 tCO2e will

be purchased by the CDCF.

Current Context: Power demand in Kenya has risen considerably owing to the country’s recent

economic growth. Demand is projected to rise at an average of 150 MW per year. Rising demand

combined with lack of investment in new capacity, would entail power rationing during peak hours and

unreliable electricity supply. KenGen (Kenya Electricity Generating Company Ltd.) is the major supplier

of electricity in Kenya, contributing about 85 percent of all power consumed in the country. In the

absence of the Olkaria geothermal and Tana Hydro projects, KenGen would likely install medium-speed

diesel as a source of power, thereby increasing emissions of carbon dioxide and sulfur oxides to the

atmosphere. Kenya has abundant geothermal and hydro resources. However country risk for Kenya has

been considered very high by investors and access to commercial loans for project investments is

extremely difficult. Over the past years, there has been very little investment in geothermal power

projects in the country due to associated huge capital requirements and risks associated with geothermal

exploration. Same is true for run-of-river hydropower generation which faces substantial risks of rain

failure. In recent years, Kenya has experienced severe droughts that have led to low water levels in the

reservoirs affecting power generation negatively. Rainfall uncertainty and the perception that Kenya is a

high-risk country can influence investors’ willingness to invest or extend credit. In addition the fact that

the electricity tariffs charged by KenGen are an ‘administered price’ controlled by the government

through the Energy Regulatory Commission, can also deter investors. CDM funds can lower risks on the

part of investors than would otherwise been the case.

Community Benefits: A community benefits plan additional to the main projects will provide

indirect community benefits. Part of the carbon revenues received from the sale of CERs to the CDCF

will be earmarked for implementing a community benefits plan. The CBP would target the Masai, Luo,

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and Kikuyu communities living in the vicinity of the plants. Currently individuals living in these

communities have to travel over four hours a day for water, and schooling facilities are distant and

inadequate. There is also a need for local health services, currently available only in Naivasha, a city

which has been deeply affected by recent turmoil in Kenya. The influx of refugees have put a severe

strain on already limited services and resources.

A CBP for Olkaria was designed in consultation with local communities, provincial administration

experts on water and education in both Narok and Naivasha and Kengen and include the CBP activities

listed in the table below. Design and work plans are being finalized by KenGen Civil engineers after

which construction of the activities would start.

The CBP for Tana will be revised to reflect the actual ERs generated and the implementation of CBP

activities has yet to start. Tentative CBP activities could include the following:

a boarding school or a mobile clinic that could be used by several communities in the Tana River

catchment area;

provision of medicines in case of a malaria or cholera outbreak, as happened in 2006 after the floods

along the coast; or

accelerate implementation of ongoing KenGen community benefit programs or self-financed

community initiatives.

Table: Olkaria CBP Activity Summary

Benefit Beneficiaries Location Excavation of Olosingáte water pan for livestock

40,000 livestock belonging to indivdiuals

Enoosupukia Location, Mau Division, Nakuru District

Construction and equipping of 3 classrooms at Ngambani Nursery school

250 pupils per year Maiella location, Naivasha Division, Nakuru District

Construction and equipping of 3 classrooms at Oloriwua primary school

200 pupils per year Enoosupukia Location, Mau Division, Narok District

Construction of a waterline from Tank Mpya to Maiella

20,000 people Maiella location, Naivasha Division, Nakuru District

Upgrading of Suswa-Narasha – Hell’s Gate Road by Murraming 10 km

10,000 people Inter-district Narok/ Nakuru

CBP Implementation Summary

Type Indirect

Status Olkaria ongoing; Tana, pending registration

Time Frame ERPA term

Budget Olkaria, USD $225,000; Tana, USD $171,600

CBP Monitoring Plan: KenGen will prepare a quarterly progress report on the implementation of

the community benefits activities and the monitoring template will be completed twice-yearly. The report

will include a detailed description on the status of implementation of activities that create the local

community benefits. A monitoring template was shared with the project developer. The monitoring

template lists the performance requirements as per the final CBP as well as key questions to pose to

beneficiaries and for the project developer to consider. The aim of this monitoring template is to help the

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PE monitor CBP activities to collect both quantitative and more qualitative information on CBP status,

achievements and lessons learned/ improvements.

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Peru: Santa Rosa Bundled Small Hydro Project Description: The 4.1 MW Santa Rosa Hydroelectric Project, which uses the existing irrigation infrastructure as its source of water flow, is a milestone for Peru as it was the first small-scale CDM project to be developed in that country. The project is a bundle of small run-of-river hydropower plants located in the Santa Rosa Irrigation area of Sayán District. The project helps the national grid reduce the use of thermal plants and will displace expensive heavy fuel-diesel, coal, and gas-fired generation. The CDCF will purchase 88,000 tCO2e from the project with an option to purchase an additional 62,000 tons.

Current Country Context: In Peru, the options for hydropower are limited because most of the best locations for hydroelectric plants have been granted to private firms. Thermal plants, meanwhile, offer better investment opportunities because they face fewer restrictions and can be located almost everywhere. Additionally, hydroelectric plants require more than double the investment capital, and the construction period is one or two years more than for a thermal plant. Providing a revenue flow through carbon finance will help level that playing field.

Community Benefits: A community benefits plan additional to the main project was prepared at the initiative of the CDCF. Representatives from the village of La Merced were consulted in determining what would be the most desirable community benefits. A representative of the Peruvian Designated National Authority took part in the meeting. The project developer agreed to share part of the emission reductions income with the community of La Merced and also to provide free electricity to the neighboring orphanage, which is run by an NGO, Asociacion Achalay. To date the following CBP activities have been completed: a) Provision of free electricity to the local orphanage hosting 50 children since 2006. b) Maintenance of local canal Madre de Irrigacion de Santa Rosa. The project developer contracted

a local firm to remove solid waste from the canal. The project developer also provided a weekly cash sum for maintenance to the local authority responsible for water/irrigation issues, the Junta de Regantes Santa Rosa.

c) Building of computer lab and provision of 14 computers in village primary school benefiting 500 students.

d) Construction of two additional new classrooms as well as a community center. e) Local workers hired for local non-specialized maintenance activities including plumbing, road

maintenance, and the reinforcement of the loading dock.

Canal & Spillway at Santa Rosa Hydro

Computer Lab benefiting 500 students

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Table: CBP Activity Summary

Deliverables Description

Electricity The project will deliver electricity to the local orphanage at no cost.

Improvements to school

State-owned and rural schools in Peru lack money to provide a good education to students and for school infrastructure. The project will provide $1 per ton of CO2 emission reductions for school improvement, including construction of a fence, building two new classrooms, and building a computer room with 10 computers.

Job creation About 125 new jobs will be created for workers in the three phases of the project in the field of concrete work, pressure pipe installation, powerhouse, and installation of electromechanical equipment.

Clean irrigation water

Installation of a trash rack cleaner in the irrigation canal will provide cleaner irrigation water for more than 500 families.

Community center

A new community center will be built.

Local infrastructure improvement

Help will be provided in maintenance of the irrigation canal and main road in Santa Rosa for more than 500 families.

CBP Implementation Summary

Type Indirect

Status Partially completed

Time Frame ERPA term

Budget USD $ 88,300

CBP Monitoring Plan : the operationalization of the CBP is to be systematically monitored and reported to the CDCF on a yearly basis. A monitoring template is available to be used by the Project developer and it includes all indicators that have to be monitored as per the ERPA. The project developer provides an annual report on the progress made on CBP implementation to the CDCF. The report includes a detailed description on the status of implementation of activities that create the local community benefits.

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Philippines: Laguna De Bay Community Waste Management Project

Project Description: The project plans to implement a series of small-scale waste

management and watershed rehabilitation subprojects, at the local government level (LGU) in the vicinity of Laguna Lake, that will improve waste management practices and increase forest coverage in stream banks, grasslands, and croplands in the region while reducing the emission of methane. These subprojects will utilize methane avoidance technologies such as composting and aerobic wastewater treatment, as well as methane recovery technologies including landfill gas collection and wastewater biogas systems. The CDCF will purchase 46,000 tCO2e over the course of the ERPA.

Current Country Context: A growing population and weak environmental governance have led to pollution, ecosystem degradation, and depletion of natural resources in the Philippines. Environmental degradation has been particularly acute in the Laguna de Bay watershed area, which houses 13 percent of the country’s population. People use the watershed resources for fisheries and aquaculture, industrial cooling water, hydropower, transport, drinking water, and recreation. The watershed also serves as waste sink for domestic and industrial effluents and agricultural and urban runoff.

Community Benefits: A community benefits plan, additional to the CDM project, was designed to benefit waste pickers residing on the dumpsites. This represents a very poor and vulnerable group, earning between Php 300 to 900 per week from the sale of waste pickings. Wage variance

reflects the number of hours worked, waste composition (household waste has more pickings to sell), where the pickings are sold (on site, at junk shop, at market) and how often these pickings are sold. Moreover waste pickers remain at risk of losing their livelihood with the rehabilitation or closing of the dumpsites due to investments for Material Recovery Facilities (MRFs) and Sanitary Landfill projects to comply with the national law on solid waste management. During the participatory consultation process between Laguna Lake Development Authority (LLDA), LGUs and the waste pickers, the key CBP activity identified is alternative livelihood opportunities (such as cattle or swine raising) accompanied by training. Local government has expressed their willingness to provided assistance pending resource availability from

CDCF.

CBP Implementation Summary

Type Indirect

Status Yet to start

Time Frame ERPA term

Budget USD $ 50,000 grant from CDCF Plus

Laguna Lake in the Philippines

Paper charcoal making

Composting plant at dumpsite

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Table: CBP Activity Summary

Benefit Action Beneficiaries Indicators Baseline

1. Provision of Livelihood opportunities

Waste pickers and their families

Increase in family income

Waste pickers earn Php 100/day. Some earn Php40/day. Their earnings could barely meet their basic need for food

2. Capability Building for Waste pickers

Waste pickers (Officials)

Improved probability of success in the implementation of the livelihood project

Most waste pickers reached only the elementary level. Consequently they have very little knowledge in running a small enterprise, on administrative financial, technical and even marketing matters.

3. Improvement of environmental condition

Waste pickers and community in general

Reduced incidents of sickness

Environment related illnesses such as gastroenteritis, dengue among others are recorded in barangay/municipal health offices

CBP Monitoring Plan: The operationalization of the CBP is to be systematically monitored and reported to the CDCF on a yearly basis. A monitoring template is available to be used by the Project developer and it includes all indicators that have to be monitored as per the ERPA. This project will adopt the Laguna de Bay Institutional Strengthening and Community Participation Project performance-based monitoring and evaluation system, which involves data collection by subproject proponents and quality checking, aggregating, and reporting by the Laguna Lake Development Authority. LLDA will implement the monitoring of the community benefits.

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Philippines: Ethanol Plant Wastewater Biogas Project

Project Description: The Roxol Wastewater Treatment and Methane Gas Recovery Project aims to mitigate greenhouse gas (GHG) emissions through the adoption of a cleaner and more efficient technology for the treatment of the ethanol plant’s wastewater. Instead of releasing the methane into the atmosphere, it is captured and used to power the ethanol plant’s boiler, thereby displacing the conventional bunker fuel. The project is forecasted to generate over 156,000 Certified Emission Reductions per year. The CDCF will purchase 200,000 CO2 through December 2013. The project is owned and operated by Roxol Bioenergy Corporation, a newly organized, fully-owned subsidiary of Roxas Holdings Inc. (RHI) and a member of the Central Azucarera de Don Pedro Group (CADPG) of companies. The Roxol plant, located in La Carlota City, Negros Occidental, will utilize molasses, a by-product of nearby existing sugar mills, as feedstock and produce anhydrous or fuel grade alcohol and potable alcohol for the domestic market.

Current Country Context: Most ethanol distilleries in the Philippines allow untreated wastewater to flow into open, anaerobic lagoons which emit methane into the atmosphere, which not only gives off a noxious smell but is also a potent greenhouse gas. Furthermore, the steam boilers in distilleries typically use bunker fuel oil, which is readily available but very bad for the environment.

Community Benefits: A community benefits plan (CBP) provides for activities that benefit four communities surrounding the plant site, living in three Barangay (villages). These rural communities were selected to be the CBP beneficiaries because they are considered to be the poorest with more than 40% of the 832 families earning an income of less than PhP 3,000 per month (equivalent to less than $2.00 a day). In addition, these communities experience difficulties in accessing basic social services and economic infrastructure which are either very limited or lacking in the area. Their main

sources of economic activity are agriculture, i.e., as workers in the sugar plantation and milling plant, which is seasonal, work in nature. The table below provides a summary of the benefit activities identified through community consultations. The PE advanced its own resources to start implementing some CBP activities. This achieved to date include: Skills and development training for 35 out of 45 community leaders A total of 26 out-of-school youth (boys) received training on Shielded Metal Arc Welding

(August 2010). This included 15-day skills training, one-day hands-on computer literacy training and a 15-day on-the-job experience (October 2010)

Rehabilitation of two pre-school classrooms - one in Carmen Elementary School (25 children in morning and 25 children in afternoon), and the other in Hacienda Najalin (13 girls and 19 boys)

Provision of health check-ups to 1,199 patients A total of 56 individuals are currently benefiting from the micro-lending activities of the project

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Benefit Activity Beneficiaries Baseline 1

. C

om

mu

nit

y

Org

an

izin

g a

nd

D

ev

elo

pm

en

t

Formation and/or strengthening of community members into Peoples’ Organizations (POs) and/or cooperatives

Sub-sector of community with representation from men, women and youth

- No formal structure exists in the community

Capacity building of community organization to engage in participatory planning for project identification and implementation

Leaders and members of the would-be organized POs/cooperatives

- No organizational capacity at the community level exists to implement the CBP activities.

2. E

du

cati

on

a. Provision of vocational skills training to drop-outs or out of school youths (OSYs)

56 out of work high school graduates.

- 56 high school graduates are out of work and do not have an access to economic activity due to lack of skills

b. Provision of scholarship grants for High School Students

20 poor students will benefit from the scholarship grant (or a total of 60 students for a 3 year period)

- Poor students dropped out from high school due to poverty reasons - Inability of parents to pay for the cost of education

c. Rehabilitation of existing pre-school/day care center

50% of 784 children ages 0-6 years old

- Some of the children cannot attend the pre-school because of the limited slots

d. Implementation of the Reading Program (in partnership with Department of Education’s Basic Education Information System Module)

Three (3) Public Elementary school children in four communities

- Currently the reading is very low according to the result of NAT books for elementary students

3.

He

alt

h a

nd

Nu

trit

ion

a. Implementation of Nutrition Education and Feeding Program in partnership with the Department of Health

Malnourished children ages 0 to 6 years of age

- Prevalence of malnutrition in the communities

b. Provision of community medical service through annual medical mission

Residents from the three (3) communities

- Prevalence of common sickness - No regular check-up for health maintenance

c. Provision of community health insurance

330 poor community residents that need community health insurance

- No access to health insurance

4.

Liv

eli

ho

od

a. Implementation of micro-lending program for various livelihood activities such as animal dispersal, agricultural production, vending/trading

Community residents (ages 21 to 60 years old) who are and willing to engage in livelihood projects

- Existence of idle man and woman due to lack of job opportunities - Limited and low income

CBP Implementation Summary

Type Indirect

Status Ongoing

Time Frame ERPA term

Budget USD $ 200,000

CBP Monitoring Plan : The operationalization of the CBP is to be systematically monitored and reported to the CDCF on a yearly basis. A monitoring template setting out all indicators that have to

Table: CBP Activity Summary

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be monitored in accordance with the CDCF ERPA, has been shared with the Project developer. The PE has incorporated the monitoring template into their overall monitoring systems and will be providing yearly reports on CBP implementation progress to the CDCF.

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Thailand: Livestock Waste Management Project Project Description : The Thailand AEP Livestock Waste Management Project aims to reduce greenhouse gas emissions from swine manure by converting open anaerobic lagoons to continuous flow closed anaerobic treatment digesters with biogas capture and power generation at 10 farms in the Ratchaburi and Chonburi provinces of Thailand. The participating farms are considered as medium high (1) and large farms (9) with livestock unit ranging from (874-5,021), according to the United Nations Food and Agricultural Organization (FAO) standard. The Project is developed by the Advance Energy Plus Co., Ltd (AEP) in cooperation with the Department of Livestock (DLD), Ministry of Agriculture and Cooperative, the Royal Thai Government and is expected to reduce 59,781 tCO2e of greenhouse gas annually.

Current Context: The treatment of swine manure by way of anaerobic digester processes leads to the production of a biogas consisting of 65% methane (CH4). Currently all farms employ normal scraping and hose-down cleaning of the animal waste with a series of open anaerobic lagoons within the farms premises. This waste material is left to decay in the individual facility's open anaerobic lagoon system, producing significant amounts of methane that is emitted directly to the atmosphere. This current livestock waste management practices contributes to significant air (odor) and water pollution in the areas close to the farms. The project will apply anaerobic digesters which will capture the biogas and use it to generate electricity which will replace electricity from the Thailand power grid, 70 percent of which is based on natural gas. The total installed capacity for electricity generation is 1.405 MW, which expect to generate 9,631 MWh of electricity annually. Community Benefits : In addition to improving the local environment quality, the project will also deliver local community benefits related to the creation of new jobs during the construction, operation and maintenance stages of the livestock wastewater management system and to the utilization of methane gas (CH4) as renewable energy resource for the farms. The project activities can also be replicated in other farms around the country which will lead to environmental awareness related to livestock waste management, renewable energy, and climate change. In addition, a Community Benefits Plan has been designed (as per the table below) under the CDCF ERPA, financed by a price premium associated to each CER sold to the Fund. Based on local community consultations Moo 10 in Koh Chan District of Chonburi province was identified as the priority community to receive support under the CBP. The Moo 10 community is agriculture-based, and falls below the Thai poverty threshold of 10,000 baht per year. This communities development potential and opportunities were identified as limited given the lack of essential economic infrastructure and social services such as schools, health centers, and convenient access to markets. CBP Monitoring Plan: The operationalization of the CBP is to be systematically monitored and reported to the CDCF on a yearly basis. A monitoring template is available to be used by the Project developer and it includes all indicators that have to be monitored as per the ERPA.

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Table: CBP Activity Summary

CBP Implementation Summary

Type Indirect

Status Awaiting CDM registration. CBP activity implementation yet to start upon first CER payment.

Time Frame Project commissioning through to end of ERPA

Budget USD $ 69,860

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Uganda: Municipal Composting Program

Project Description: The Uganda Municipal Waste Compost CDM Program of Activities (POA) aims to reduce GHG emissions by recovering the organic matter from municipal solid waste as compost for soil conditioning and plant growth. The composting projects are to be implemented by 9 Municipalities participating in the program (Lira, Soroti, Mbale, Mukono, Jinja, Fort Portal, Kasese, Mbarara and Kabale). Composting facilities will sustain themselves on the revenues generated from the sale of compost and of CERs generated. The 9 CPA projects are expected to trap the equivalent of 750,000 tons of carbon dioxide (CO2e) over the next 10 years. The CDCF expects to purchase about 200,000 tCO2e. This POA is the first registered in Africa and is important, not only because of its GHG mitigation potential, but also because it serves as an example for many other African countries to design and implement large scale mitigation activities.

Current Context: Uganda is a land locked African country that suffers from rapid urbanization. With the urban population increasing at over 3.8 % per annum. Solid waste management is increasingly becoming a major environmental concern across all the urban local authorities. Currently, waste material is subject to an anaerobic composting process that generates large quantities of methane and other noxious gases, as well as leachate, a chemical that contaminates ground and surface waters near landfill sites. The common practice is to dispose of waste in dumpsites with no specific requirements for capturing and flaring the gas emitted from these landfills.

Community Benefits : A Community Benefits Plan, financed by a price premium attributed to each CER sold to the CDCF targets poor communities located around each individual plant. An individual CBP was designed for each participating Municipality and includes activities such as the Construction of a schools, latrine pits, health centers and roads; Provision of scholastic materials, energy saving stoves for households to reduce inhaled smoke

and number of trees cut and energy loss; Establishment of training and education centers for agriculture, water and energy saving

practices; Improvement of water sources through the construction of wells, water storage tanks or rain

water harvesting jars.

Monitoring Plan : The implementation progress of CBP activities will be monitored and reported to the CDCF on a yearly basis. The relevant parameters included in the monitoring plan will be monitored and recorded for each of the CPAs independently. Monitoring reports will also be prepared separately for each of the CPAs1. The project sponsor, the National Environment Management Authority of Uganda, will be responsible for organizing and supervising all of the

1 CDM Programme Activity

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monitoring activities required for accurate and timely verification and reporting of the CERs generated.

CBP Implementation Summary

Type Indirect

Status CBP activity implementation yet to start upon first CER payment

Time Frame ERPA term

Budget USD $209,185

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Uganda: Kampala LFG-to-Energy project Project Description: This small scale project aims to mitigate GHG emissions by extracting and flaring landfill gas at the Mpererwe landfill that currently has no form of landfill gas management in place. It involves the introduction of measures to capture and combust methane from a landfill used for disposal of residues from human activity, predominantly municipal solid waste. The project represents an opportunity to introduce basic but proven landfill gas technology into Uganda and will provide environmental benefits in the immediate vicinity of the site. An estimated 24,227 tCO2e aim to be reduced per year over the course of a 10 year crediting period. The CDCF will purchase 74,144 CERs.

Country context: Uganda has no regulatory requirements to control landfill gas and there are no landfill gas control measures currently in place at the Mperewe site. Thus in the business as usual case, raw methane gas generated by deposited wastes would continue to be emitted into the atmosphere in an uncontrolled manner. Methane is a green house gas that is 21 times more potent than carbon dioxide and typically makes up 50% of the landfill gas mixture.

Community Benefits: Aside from reducing GHG emissions, the project brings additional direct benefits include the introduction of new landfill gas management technology to Uganda; restoration of the site to a beneficial after use; training of local staff to become experts in the monitoring and control of landfill gas; provision of a number of employment opportunities relating to the operation and maintenance of equipment.

Furthermore, a Community Benefits Plan (CBP) was developed alongside the CDM project to provide indirect benefits to poor communities in the vicinity of the project location. Community benefit activities, identified through community consultations and financed by an additional price premium associated to each CER purchased by the CDCF, are listed in the table below.

Monitoring: A monitoring template is available to be used by the Project developer and it includes all indicators that have to be monitored as per the ERPA. Kampala City Council will be responsible for implementing the CBP activities which are to be systematically monitored and progress reported to the CDCF on a yearly basis.

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Table: CBP Activity Summary

CBP Implementation Summary

Type Indirect

Status Awaiting CDM registration. CBP activity implementation yet to start upon first CER payment.

Time Frame Project commissioning through to end of ERPA term

Budget USD $ 77,144

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Yemen: Loss Reduction in Electricity Distribution Systems Program Project Description: This Program of Activities (POA) aims to reduce GHG emissions by improving the quality of supply and technical efficiency of the electricity grid of Yemen. All activities aim to diminish technical losses in the power grid by upgrading distribution lines, redesigning the set-up of the distribution network including the construction of new lines and intermediate power substations. The PoA also includes the installation of metering equipment to improve the management system. Activities will be pursued through 7 or 8 CDM Program Activities (CPAs) across 18 regions of Yemen and implemented by electricity substations, stations operators and local/regional control centers over a period that runs from 2007-2016. The Public Electricity Corporation of Yemen (PEC) is the exclusive operator of the electricity grid in Yemen and is state owned. The POA is a blended carbon finance operation with the Yemen Power Sector Project, and a government initiative financed by an IDA loan. The POA would generate an estimated 75,000 tCO2e per year. The CDCF will purchase a total of 125,000 tons of CO2 equivalent by 2013.

Current Context: The Yemenite power sector is characterized by its total reliance on fossil fuel for power generation (around 49% diesel and 51% fuel oil) and; the lowest access to electricity in the region, with only 53% of the total population having access to (including self-generation) electricity. The electricity transmission and distribution network in Yemen is overstretched, resulting in high losses and frequent outages/interruptions in electricity supply with an average load shedding over 20% of the peak demand. In 2008, the Loss Reduction Department of PEC estimated the distribution losses to be 24.65% of the power produced, which includes technical and non-technical losses.

Community Benefits: The proposed PoA provides will lead to a more efficient utilization of fossil fuels reducing the energy lost during the electricity distribution process. This would entail

Net reductions in carbon dioxide as well as carbon monoxide, SO2, NOx and particulates;

Cost savings for the Utility;

A more reliable electricity distribution network and supply to end users;

Knowledge transfer and Improved technical expertise of PEC, namely in grid monitoring, reactive power compensation, transformers system optimizations and feeders sizing to maximize efficiency;

It is hoped that the program will introduce higher standards for the Yemeni electricity sector at large. In addition, Community Benefits Plans are to be developed for each individual CPA so as to provide local poor communities with improvements in living standards or environmental benefits. The CBP is an intrinsic component of the Emission Reduction Purchase Agreement with the CDCF, that will finance an additional price premium for each CER purchased to finance the Community Benefit Activities. The activities will be designed in consultation with beneficiary communities surrounding each CPA. These would be finalized once the political situation in Yemen improves.

CBP Monitoring: The Community benefit activities will be implemented by the POA Coordinating and Managing Entity (CME) throughout the term of the ERPA and will provide annual progress reports on the Benefit activity implementation. The CME will ensure that each CPA is in compliance with the CBP.

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CBP Implementation Summary

Type Indirect Status CBP activities yet to be designed and started, due to political situation in Yemen. Time Frame ERPA term Budget USD $ 125,000