A. General description of the small-scale project activity. C. Duration of the project activity / Crediting period

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1 CDM Executive Board page 1 CLEAN DEVELOPMENT MECHANISM SIMPLIFIED PROJECT DESIGN DOCUMENT FOR SMALL-SCALE PROJECT ACTIVITIES (SSC-CDM-PDD) Version 02 CONTENTS A. General description of the small-scale project activity B. Baseline methodology C. Duration of the project activity / Crediting period D. Monitoring methodology and plan E. Calculation of GHG emission reductions by sources F. Environmental impacts G. Stakeholders comments Annexes Annex 1: Information on participants in the project activity Annex 2: Information regarding public funding

2 CDM Executive Board page 2 Revision history of this document Version Date Description and reason of revision Number January 2003 Initial adoption 02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <

3 CDM Executive Board page 3 SECTION A. General description of the small-scale project activity A. Title of the small-scale project activity: Pig City confined swine feeding operations methane capture and combustion from improved animal waste management system A.2. Description of the small-scale project activity: Cavite Pig City Inc. owns and manages a highly efficient swine farrow to finish facility. The facility was bought in 1990 at a 4,000 swine population capacity. Since then technological and capacity upgrades have been implemented. The current infrastructure involved is perhaps one of the most advanced in the Philippines. Pig City now operates a total population of 40,000 in a farrow to finish confined facility. The purpose of the project is to expand current facility capacity to 80,000 heads and to improve on the current waste management system. The current waste management system uses seven separate basic anaerobic lagoons into which swine slurry/waste water is transported. The wastewater flows and resides in the seven-stage lagoon for a period of time then flows to the nearest streams with substantial concentrations of organic nutrients in the treated water outflow. The project activity is defined as the upgrading of the current waste water system by building an enclosed anaerobic digester into which the animal waste slurry will flow (hereafter referred to as project activity ). In the process of anaerobic decomposition of swine waste in the digester, biogas is produced. Since the digester is enclosed, the biogas is trapped and collected, to be used as a fuel to generate electricity for use by the facility. A biogas generator will be used to generate electricity to be consumed by the entire facility. Moreover, excess biogas will be used as fuel for cooking within the Pig City staff quarters. While biogas is a mixture of gases, the interest of the project activity is specifically the capture and combustion of methane (CH 4 ) produced. The project participants envision the CDM project to contribute to sustainable development in several ways. Financially, CERs and long-term reduced electricity costs will substantially contribute to the Pig City s balance sheet in terms of better Internal Rate of Return (IRR) and project investment Net Present Value (NPV). Economically, the transferred technology although not entirely new, will probably be one of the largest of its kind in the Philippines. The pilot test of a digester of this size and design will allow other animal feeding operations to clearly see how such technology works and how financial instruments can be used to support such technologies. Environmental sustainability through this project is achieved in several levels. From a standpoint of water pollution the project is able to manage a large volume of hog waste, treat it and dispose of it with a minimum impact to the surrounding environment. The project significantly reduces BOD/COD levels that would otherwise flow into the surrounding water bodies with a real possibility of reaching the water tables and threatening the drinking water of both humans and animals in the area. Without this system, nutrients from manure run-offs can also enter the water table creating a condition for microorganic plantlife such as algae to bloom. This process of eutrophication of natural water passageways can deplete the water of oxygen which may cause fishes to suffocate with the lack of oxygen (anoxia) in the water. This condition of anoxia can permanently damage and kill living waterways. The project activity contributes in mitigating such a condition. On another significant level, the project allows for the control of air pollution caused by ammonia, which is released when the nitrogen from the hog waste mixes with air. As an enclosure, the biogas digester captures all intense air borne pollution caused by the facility with a negligible amount of leakage.

4 CDM Executive Board page 4 A clear environmental impact will be created through this project by using the enclosed digesters as a more efficient form of water treatment. Through this, downstream water bodies will be healthier and cleaner. Moreover the biodigester/waste treatment facility reduces the area s susceptibility to mosquito breeding which may be the cause of local health concerns. The project contributes to the social sustainability of the area in several ways. As the project doubles the swine population level from 40,000 to 80,000, additional employment is needed. In fact, employment is seen to double to 180 employees as the facility expands and reaches its design potential. Most, if not all hired hands will come from the surrounding area. In short, jobs will be created for the direct benefit of the community. Because of the nature of the project design, no stagnant water will be available for bacteria and mosquitoes to breed. As the project is located in the vicinity of three residential developments, this is indeed a health benefit for the current and future residents of the area. On a larger scale, given that the facility is at the leading edge of technology of the swine industry, the farm is in itself a potential for education. Students of animal husbandry, veterinary medicine, and agricultural engineering may benefit from a short site visit to learn of the most advance practices in this field. Overall, these conditions provide an improved well-being for the communities affected by the project and to society as a whole. A.3. Project participants: Project Owner / Developer: Cavite Pig City Inc. Cavite Pig City Inc. is a family owned company dedicated to raising the highest quality swine for the protein needs of the Philippines. CDM Consultant: CaFiS Alan Silayan is the lead Carbon Finance Advisor for Cafis Environmental Consultancy. He is also works as a consultant for the various capacity development programs of the Klima Climate Change Center. A.4. Technical description of the small-scale project activity: The main technology involved in the project activity is a two stage anaerobic waste water treatment facility designed by Bio-Environmental Services and Technologies, Inc (BEST Inc.). A single stage is an enclosed digester of 12,000m 3. Each enclosure is uses HDPE (high Density Polyethylene) liners which provide the anaerobic environment necessary for the biological reactions. The HDPE also acts as a liner which prevents the waste water from leaking into the water table at the same time acts as a gas capture enclosure preventing biogas to escape into the atmosphere. Biogas is produced through the bacterial decomposition of organic waste matter in the absence of air. Animal waste, including swine contain bacteria which thrive in anaerobic conditions and form methane as part of its biological process in the decomposition of organic nutrients. 1 Within this digester, bacteria are allowed to thrive and decompose available organic matter from the swine manure. As a result of this process, biogas is produced. The two stages allow for a total of 20 days hydraulic retention time. The long retention times coupled with the appropriate flow and mixing rates allow for the optimum treatment of water and the optimum production of biogas. 1 Habacon, Nelda A. (1991). Towards Energy Self-Reliance with Biogas from Livestock Waste: The INFARMCO Experience. Energy Spectrum. PNOC, Philippines.

5 CDM Executive Board page 5 The schematic diagram below provides a visual description of the flow of waste water from the facility to the two-stage biodigester. While the design is simple, it is nonetheless very efficient in treating the waste water as well as producing biogas for the generator. A.4. Location of the small-scale project activity: A.4. Host Party(ies): Republic of the Philippines A.4.2. Region/State/Province etc.: Cavite A.4.3. City/Town/Community etc: General Trias / Barangay San Francisco A.4.4. Detail of physical location, including information allowing the unique identification of this small-scale project activity(ies): Like many pig farms in the Philippines, the project lies in the immediate vicinity of Metro Manila to meet the large demand for pork in the metropolis. The project is situated in barangay San Franciso, municipality of General Trias, in the province of Cavite which is an hour and 20mins away by car from Manila. Below is a site map indicating the exact location of the project.

6 CDM Executive Board page 6 Cavite Pig City Philippines

7 CDM Executive Board page 7 A.4.2. Type and category(ies) and technology of the small-scale project activity: Waste Management / Methane Capture Project Type III.D (reference AMS-III.D) Methane recovery The project conforms to project category III.D because the project reduces anthropogenic emissions by sources and directly emits less than 15 kilotonnes of carbon dioxide equivalent annually. All direct anthropogenic greenhouse gases produced and used in the project is carbon neutral since all methane combusted by the project activity comes from the biological decomposition of bioorganic sources. Project emissions are therefore zero, throughout the entire project lifetime. While the technology for capturing methane from swine waste is not entirely new in the Philippines, the use of HDPE is. The material is imported from Thailand and handling it is part of the technological transfer involved in the project. The mixing and water flow design is as well unique since it will be the first time that these concepts will be used with the HDPE material. The material is safe and inert. It will not chemically react with any of the organic/inorganic chemicals that it will come in contact with. Because of its widespread use in other countries as a leachate barrier and waste containment membrane, the material has been proven to be environmentally and physically safe. Besides the material used, the schematic of the biodigester shows an inherent safety feature due to the redundancy and increased reliability of its two-chamber balloon-type design. In the unlikely event of a leak, fissure, tear in the balloon-type design of the digester, the other chamber will still function and waste water will still be treated albeit in a less efficient manner. The redundancy and reliability of the two-stage design minimizes the risk of an environmental hazard and increases the environmental safety of the proposed project activity. A.4.3. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gas (GHGs) by sources are to be reduced by the proposed small-scale project activity, including why the emission reductions would not occur in the absence of the proposed small-scale project activity, taking into account national and/or sectoral policies and circumstances: It has been a previous industry practice especially for small swine farms to simply flush pig pens with the waste water then flowing to the nearest creek. Larger facilities however are bound by national laws to have approval of the environmental impacts of such farms through an environmental compliance certificate (ECC). Nonetheless, these laws are not particular about the type of waste management systems to be implemented. In other words, despite increased environmental regulation on water and air quality, it is unlikely that projects would use technologies to mitigate project greenhouse gas emissions. Nothing is mentioned in local legislation on the capture of methane as a greenhouse gas and its use as a potential source of fuel. In fact, prevalent among larger pig farms is the use of a multi-stage anaerobic lagoon to treat the waste water. Unfortunately the discharged water from these lagoons still contain significant levels of BOD/COD that flows into the nearby water formations. Moreover, through anaerobic lagoons the fugitive emissions of methane continues unabated. This is why emissions reductions would not occur in the absence of the proposed project activity. The project aims to significantly reduce anthropogenic emissions of anthropogenic greenhouse gas (GHGs) by capturing close to 100% of methane produced by the digester and subsequently destroying it through its combustion in a biogas engine. It is unlikely that this project would proceed without the financial incentives provided by the CDM. Emission reduction for the project activity has been estimated at an average of 23,855 tco 2 e per year reaching the facility capacity of 80,000 swine population level.

8 CDM Executive Board page 8 A Estimated amount of emission reductions over the chosen crediting period: The entire facility will run on electricity generated through the combustion of captured methane. All electrical requirements will use this electricity and no electricity will be taken from the grid. Therefore project emissions will be zero since only methane from biogenic substances will be used. Year Emission Factor Population GWP Annual estimation 10-3 CH4/head of emission reductions in tco 2 e 15 Feb Feb , , Feb Feb , , Feb Feb , , Feb Feb , , Feb Feb , , Feb Feb , , Feb Feb , , Total estimated reductions (tco 2 e) 245, Total number of crediting years 7 Annual average over the crediting period of estimated 23,855 reductions (tco 2 e) A.4.4. Public funding of the small-scale project activity: The project owner and developer fund the project entirely. The project has not received and is not seeking public funding. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a larger project activity: The project activity shall apply for validation, registration and eventually CER issuance as a single project and without any other projects attached, combined or bundled to it. SECTION B. Application of a baseline methodology: B. Title and reference of the approved baseline methodology applied to the small-scale project activity: Project activity type III.D (reference AMS-III.D) Methane Recovery B.2 Project category applicable to the small-scale project activity:

9 CDM Executive Board page 9 Project category selected for the project activity is small-scale project activity III.D methane recovery. This project category was chosen for the baseline methodology because the project activity being a methane capture from a manure management system is appropriate for the technology/measure and applicability conditions of the methodology. Technology / measure involved for such a technology is worded in the small scale methodology III.D as follows: This project category comprises methane recovery from coalmines, agro-industries, landfills, wastewater treatment facilities and other sources. Measure shall both reduces anthropogenic emissions by sources and directly emit less than 15 kilotonnes of carbon dioxide equivalent annually. The basic assumption for this baseline methodology is that all methane generated by the facility are direct anthropogenic emissions which can be destroyed through combustion in a generator. This further assumes that all methane produced in the farm is biogenic in nature and is therefore carbon neutral. Corollary to this, all subsequent electricity demands by the project will be supplied internally through the biogas generator and the facility will operate independently of the electricity grid. Thus, while no emission reduction credits are claimed for this component of the project, emissions are reduced by the displacement of electricity from the grid which is powered mainly by conventional energy using fossil fuels. A key parameter to be measured as the baseline is the biogas captured by the technology. This is the baseline scenario because this parameter shows the biogas that would have been emitted to the atmosphere without the project. Subsequently, a percentage of the biogas is the methane that would have been emitted to the atmosphere were it not for the project. B.3. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: The livestock sector in the Philippines has been growing steadily throughout the 1990s at a rate of 4.6% per annum. This constitutes the strongest source of agricultural growth throughout this decade even through the Asian financial crisis. Hog raising among the different livestock industries has been growing at an even faster pace than poultry, or cattle. 2 The growth of these farms has concentrated themselves on the north and south of Metro Manila. This is because of the significant market demand that the most populated and dense area of the Philippines creates. Traditionally, hog waste disposal involves using water to flush waste out of pens. This is then allowed to flow into the nearest creek, carrying waste downstream creating a significant impact on water pollution. Unlike poultry waste which has developed a market as organic fertilizer, swine waste has been a nuisance to hog farmers. 3 The project activity was planned to be implemented as early as However due to changes in the technological design of the digester, the rainy season and more importantly financial constraints, the 2 Delgado, C.L. et.al, (2003). Policy, Technical, and Environmental Determinants and Implications of the Scaling- Up of Livestock Production in Four Fast-Growing Developing Countries: A Synthesis. LEAD, Washington [ 3 Costales et.al (2001) "Livestock to 2020, the Next Food Revolution - Implications to Southeast Asia: The Case of the Philippines". Paper presented at the international workshop on: "Sustainable Animal Production and Food Supply to 2020", School of Veterinary Medicine, Hannover, Federal Republic of Germany, 9-10 August 2000.

10 CDM Executive Board page 10 project had to be put on hold. Recently however, because of the added financial potential of the CDM, the project developer is able to push through with the final plans and design for the project. As mentioned in section A.4.2, the project is small scale because all methane captured and combusted is produced from the bioorganic decomposition of biogenic material and as such is carbon neutral. Therefore since project activity emissions is zero, this project qualified as a small-scale project activity type (iii) - Specifically category type III.D methane capture. As prescribed in attachment A to Appendix B of the simplified modalities and procedures for small-scale CDM projects, the following is an explanation showing why the project activity would not have occurred without the CDM: Barrier due to prevailing practice: Prior to 1990 and the enforcement of Department Administrative Order No. 35 providing water quality standards for water discharge, common practice has allowed pig farms especially smaller swine feeding facilities to dump the waste to the nearest body of water. This practice is still prevalent in some remote areas due difficulties in enforcing current laws. Today however, several environmental laws are in place that regulate larger projects such as those by Pig City. An example is the clean water act, which has set measurable water discharge standards by which operators must comply with. None of the laws however require that a biodigester be built and the methane from the waste be captured. As such, the least cost option is as well the common practice. Currently, the common practice that would comply with existing laws is an open anaerobic lagoon into which waste is allowed to flow, settle and stabilize before excess water is discharged to the nearest creek, stream or river. With this technology however, methane produced from the anaerobic decomposition of waste is simply allowed to bubble in the lagoon and be released into the atmosphere. It is only recently, through the financial augmentation provided by the CDM, that the project activity can proceed. Technological barrier: Swine farm operators in the Philippines are still hesitant to have enclosed biodigesters installed because there is a lack of awareness regarding its effectivity. Even if it is found to be effective, there is no compelling reason for business owners to invest in a newer more effective technology. The new technology is often perceived as both risky and expensive. It is perceived to be a risk because operators are uncertain about the long-term effects of such technology to their operations. Moreover, there are only a few large enclosed biodigesters installed in the Philippines and that capture the methane thus many farm operators are still hesitant in having one installed. As mentioned, HDPE as a material for the digester is very new to the swine industry in the Philippines. This material is not produced in the Philippines and is imported from Thailand. As such the material itself as a new technology poses specific barriers to its usage since there are only very few people who can handle the material. Moreover, since it is imported, related import costs make it more expensive than other possible materials of lesser quality available in the market.

11 CDM Executive Board page 11 B.4. Description of how the definition of the project boundary related to the baseline methodology selected is applied to the small-scale project activity: The project boundary is the conceptual area in which GHG emission reductions occur. For the project activity, this is as well the physical boundary of the swine facility where methane is captured, destroyed through combustion. This is illustrated in the diagram below. Project Boundary Swine Barns Biogas flow Combustion Flare; Methane Generator Manure effluent loading Enclosed 2-stage Anaerobic Biodigester Effluent Usage or Disposal B.5. Details of the baseline and its development: The baseline is taken from AMS III.D stating: 4. The emission baseline is the amount of methane that would be emitted to the atmosphere during the crediting period in the absence of the project activity. 5. The baseline shall cover only the capture and flaring that would not have happened in the absence of the project activity. While electricity will be generated by the project, the project will not claim emission reductions from this component of the project. The baseline was completed on 01/10/2005 The baseline was developed and completed b y Alan Silayan. asilayan@gmx.net

12 CDM Executive Board page 12 SECTION C. Duration of the project activity / Crediting period: C. Duration of the small-scale project activity: 21 years C. Starting date of the small-scale project activity: 15 February 2006 C.2. Expected operational lifetime of the small-scale project activity: 25 years C.2. Choice of crediting period and related information: C.2. Renewable crediting period: C.2. Starting date of the first crediting period: 15 February 2006 C.2.2. Length of the first crediting period: Seven year (7) crediting period renewable twice for a total of 21 years C.2.2. Fixed crediting period: C.2.2. Starting date: C Length:

13 CDM Executive Board page 13 SECTION D. Application of a monitoring methodology and plan: D. Name and reference of approved monitoring methodology applied to the small-scale project activity: The approved monitoring methodology is taken from the Indicative Simplified Baseline and Monitoring Methodologies for Selected Small-Scale CDM Project Activity Categories, version 05: 25 February 2005, the approved monitoring methodology is from III.D. Methane recovery: (8) The amount of methane recovered and used as fuel or combusted shall be monitored, using flow meters and analyzing the methane content of the combusted gases; (9) The flare efficiency, defined as the fraction of time in which the gas is combusted in the flare, multiplied by the efficiency of the flaring process, shall be monitored; (10) Flow meters, sampling devices and gas analyzers shall be subject to regular maintenance, testing and calibration to ensure accuracy. D.2. Justification of the choice of the methodology and why it is applicable to the small-scale project activity: As indicated under the technology/measure of small scale project type III.D, the chosen methodology is appropriate, as the project activity comprises methane recovery from a swine waste treatment facility. Moreover, the project activity will not directly emit more than 15 kilotonnes of CO2e annually. Since all methane produced is from biogenic sources, project emissions are zero.

14 CDM Executive Board page 14 D.3 Data to be monitored: ID number Data type Data variable 1 Electricity Consumed by the Project Activity E 2 Biogas recovered M and used as fuel or flared 3 Flare efficiency F ef 4 Methane content of biogas MC Data unit Measured (m) calculated (c) or estimated (e) Recording Frequency Proportion of data to be monitored How will the data be archived (electronic / paper) KWh M Continuous 100% Electronic and paper M 3 /day M Continuous 100% Electronic and paper % C Quarterly 100% Electronic and paper % M Quarterly sampled Electronic and paper For how long is archived data to be kept Crediting period plus 2 years Crediting period plus 2 years Crediting period plus 2 years Crediting period plus 2 years Comment A standard electricity meter will be installed at the facility Standard gas flow meters will be used Rated efficiency calculated based on manufacturer s rating. Biogas samples will be taken to the Department of Science and Technology for analysis

15 CDM Executive Board page 15 D.4. Qualitative explanation of how quality control (QC) and quality assurance (QA) procedures are undertaken: To ensure the quality of data to be measured, two flow meters will be installed giving reliability and redundancy to the primary data gathering system. A third party will be contracted to ensure that all instruments are calibrated to standards and methane content of gas is measured. While the specific institution to do the inspecting has not yet been finalized, it must be noted that calibration and testing will be done with ISO standards by ISO accredited companies. Instrument inspection and calibration will be done on an annual basis. Methane content of biogas will be tested by the Department of Science and Technology through samples collected on a quarterly basis. The third party testing of this parameter ensures accuracy of testing. These measures will ensure the control and assurance of the quality of data to be gathered. Other QC and QA procedures to be undertaken are internal audits, performance reviews, and corrective action within the project. Moreover procedures will be identified for the calibration of monitoring equipment, the maintenance of monitoring equipment and installation, and the possible monitoring adjustments and uncertainties. These procedures will be compiled into a quality manual for the project. D.5. Please describe briefly the operational and management structure that the project participant(s) will implement in order to monitor emission reductions and any leakage effects generated by the project activity: The general manager who is also the pollution control officer, is directly responsible for the implementation of the project activity. The general manager is tasked with ensuring that the project activity is implemented according to plan and that all monitoring activities are carried out on a timely basis, making certain of the integrity and quality of data. A project data monitoring staff will be assigned to monitor the data on a daily basis. The project monitoring staff is also responsible for archiving the data in an orderly manner. Data archived will be inspected and verified by the DOE on a regular basis. A third party will be designated to calibrate equipment if and when necessary. Moreover, a regular performance review will be conducted by the consultant, ensuring the quality of data collected and the optimum performance of the project activity. DOE verification General Manager Third party designated for equipment calibration Data archiving Project data monitoring staff Data gathering / monitoring Performance Review by consultant

16 CDM Executive Board page 16 D.6. Name of person/entity determining the monitoring methodology: CDM Consltant: CaFiS - Alan Silayan Alan Silayan is the lead Carbon Finance Advisor for Cafis Environmental Consultancy. He is also works as a consultant for the various capacity development programs of the Klima Climate Change Center. SECTION E.: Estimation of GHG emissions by sources: E. Formulae used: The basic formula used to calculate emission reduction through the capture and combustion of methane is the following: ER = [CH 4 Emissions (mm) * GWP CH4 ] PE Where ER = total emissions reductions in tco 2 e CH 4 Emissions (mm) = CH4 emissions from manure management, for a defined population GWP CH4 = Global Warming Potential of Methane (IPCC default = 21) PE = project emissions (zero) E.1 Selected formulae as provided in appendix B: The approved small scale methodology for methane recovery, III.D, does not provide a specific formula for calculating the baseline. Paragraph four states: The emission baseline is the amount of methane that would be emitted to the atmosphere during the crediting period in the absence of the project activity. E.2 Description of formulae when not provided in appendix B: To calculate for the amount of methane that would have been emitted to the atmosphere as part of the baseline the following basic formula was used, adopted from equation 4.15 of the IPCC Good Practice Guidelines and Uncertainty Management in National Greenhouse Gas Inventories 2000: CH 4 Emissions (mm) = EF CH4 * Population / (10 3 kg/tonne) where: CH 4 Emissions (mm) = CH 4 emissions from manure management, for a defined population EF CH4 = Emission factor for the defined livestock population i, kg/head/year Population = the number of head in the defined livestock population

17 CDM Executive Board page 17 The methane emission factor above was calculated using the following formula, taken from equation 4.17 of the IPCC Good Practice Guidelines and Uncertainty Management in National Greenhouse Gas Inventories 2000: EF CH4 = VS site * 365 days/year * B oi * D CH4 * Σ (jk) MCF jk * MS ijk where: EF CH4 = annual emission factor for defined livestock population i, in kgch 4 VS site = daily volatile solids excreted for an animal within the PigCity population, in kg BO i = maximum CH 4 producing capacity for manure produced by an animal within defined population i, m 3 /kg of VS D CH4 = density of methane at STP. (0.67 kg/m 3 ) MCF jk = CH 4 conversion factors for each manure management system j by climate region k (30% - IPCC, 2000 table 4-1) MS ijk = fraction of animal species/category i s manure handled using manure system j in climate region k. (100% since the project activity is focused on a single facility) Default data for volatile solids is corrected in the following way: (equation taken from eq. (2) of AM0006) VS site = (W site / W default ) * VS default where: VS site = adjusted volatile solid excretion per day on a dry-matter basis for the PigCity project site in kg-dm/head/day W site = average animal weight of the PigCity Population (60kg) W default = default average animal weight for developing countries according to the IPCC Reference Manual 1996, Table B-1, (28kg) VS default = default value (IPCC) for the volatile solid excretion per day on a dry-matter basis for a livestock population of developing countries in kg-dm/head/day (0.34 kg/head/day) E.2.1 Describe the formulae used to estimate anthropogenic emissions by sources of GHGs due to the project activity within the project boundary: Given the carbon neutrality of the biogas captured from biogenic origins, the direct anthropogenic emissions of the project activity is zero. Moreover, there are no CO 2 emissions from the combustion of non-biogenic methane. All electricity used by the project activity will come from power generated from the combustion of biogenic methane. E.2.2 Describe the formulae used to estimate leakage due to the project activity, where required, for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities As stated in III.D (methane recovery) of Appendix B of the simplified modalities and procedures for small-scale CDM project activities, no leakage calculation is required for the project activity. E.2.3 The sum of E.2.1 and E.2.2 represents the small-scale project activity emissions:

18 CDM Executive Board page 18 Project activity emissions are therefore zero (0). E.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of GHGs in the baseline using the baseline methodology for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities: where BE = CH 4 Emissions (mm) * GWP CH4 BE = Project baseline emissions in tco 2 e CH 4 Emissions (mm) = CH4 emissions from manure management, for a defined population E.2.5 Difference between E.2.4 and E.2.3 represents the emission reductions due to the project activity during a given period: ER = BE PE ER = 26,092.7 tco2e 0 ER = 26,092.7 tco2e / year E.2 Table providing values obtained when applying formulae above: Baseline emissions calculation Project Emissions Emissions Reduction Parameter Value Unit Source VS default 0.34 kg/head/day IPCC, 1996 (table B-2) W default 28 kg IPCC, 1996 (table B-2) W site 60 kg Conservative site est. VS site 0.73 kg/head/day calculated Days per year 365 days established BO i 0.29 m 3 CH 4 /kg VS IPCC, 1996 (table B-6) Methane density 0.67 kg/m 3 established MCF jk 30 % IPCC, 2000 (table 4-11) MS 100 % Complete site manure utilization EF CH kgch 4 /year Calculated Population 80,000 heads Site average CH4 Emissions 1, tch 4 /year calculated GWP 21 IPCC BE 26,092.7 tco 2 e/year calculated PE 0 tco 2 e/year Assumed from given methodology III.D ER 26,092.7 tco 2 e/year calculated

19 CDM Executive Board page 19 SECTION F.: Environmental impacts: F. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: The host country does not require a detailed, independent environmental impact assessment for such a project. On the basis of the project design and the application procedure for a Permit to Operate, an environmental compliance certificate (ECC) has been issued to PigCity for the proposed project. This indicates that the project is in compliance with existing environmental regulations of the host party. It must be noted that the project will have a positive impact on the environment in three significant areas. First swine manure as a solid waste pollution externality will be addressed through the project activity by processing all volatile solids that are generated by the facility. The result is a neutralized substance very suitable for soil enhancement and nutrition. Secondly, the project activity directly addresses the potential for air pollution by containing liquid waste slurry in an enclosed digester. The enclosure ensures the capture of biogas and minimizes the leakage of ammonia as a form of air pollution caused by the facility. The impact is a direct benefit to the local community living around the area who will smell nothing but clean air in the area. The third and perhaps the most significant impact is the eradication of water pollution through the two-stage biodigester and water treatment facility. The two stages ensures the minimization of BOD / COD contents of the waste water by at least 85%. The treated water will not flow directly into surrounding waterways but instead will be re-used in the farm as waste flush-water and fish pond water. This closed system design further ensures the minimization of environmental impacts to the local area. The standards for environmental quality will be further cross-checked by the Department of Natural Resources and Environment, Environmental Management Bureau (DENR-EMB) through a quarterly self monitoring report (SMR) to be submitted as a requirement of the Environmental Compliance Certificate by the Pollution Control Officer (PCO) of Cavite Pig City Inc. SECTION G. Stakeholders comments: G. Brief description of how comments by local stakeholders have been invited and compiled: As required by law for environmental compliance, a local stakeholder discussion was initiated by PigCity among the key barangay(village) officials informing them of the intentions of the project. This was conducted as early as June G.2. Summary of the comments received: In summary, the local stakeholders are pleased with the continued efforts of Pig City to minimize the environmental impacts of their operations. The local leaders fully support any effort to reduce foul odors normally emitted by such facilities. In full recognition of this support, local officials have signed a stakeholder approval document stating that the local stakeholders, represented by the barangay council, have no objection to the project. G.3. Report on how due account was taken of any comments received:

20 CDM Executive Board page 20 The local leaders of Barangay San Francisco have documented the expression of approval and noobjection in a signed manifesto. Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Cavite PigCity Inc. Street/P.O. Box: 632 Elcano St. Binondo Manila Building: City: Manila State/Region: National Capital Region (NCR) Postfix/ZIP: 1006 Country: Philippines Telephone: (+632) / FAX: (+632) jackiengo@broline.com URL: Represented by: Joven Ngo Title: Operations Manager Salutation: Engr. Last Name: Ngo Middle Name: Lo First Name: Joven Department: Operations Mobile: Direct FAX: Direct tel: Personal Organization: CaFiS Environmental Consultancy Street/P.O. Box: Building: Manila Observatory, Ateneo de Manila City: Loyola Heights, Quezon City State/Region: National Capital Region (NCR) Postfix/ZIP: Country: Philippines Telephone: FAX: alan@observatory.ph URL:

21 CDM Executive Board page 21 Represented by: Alan Silayan Title: Consultant Salutation: Last Name: Silayan Middle Name: Singson First Name: Alan Department: Climate Change Center Mobile: Direct FAX: Direct tel: Personal Annex 2 INFORMATION REGARDING PUBLIC FUNDING