CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS

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1 page 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 Jul 2006 CONTENTS A. General description of project activit B. Application of a baseline and monitoring methodolog C. Duration of the project activit / crediting period D. Environmental impacts E. Stakeholders comments Annexes Annex 1: Contact information on participants in the project activit Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan

2 page 2 SECTION A. General description of project activit A.1 Title of the project activit: Title of the project activit: Organic Waste Composting Project at Hai Phong Cit, Viet Nam Version number: 0 Date: A.2. Description of the project activit: The objective of the project is to establish a waste treatment facilit with a mechanical segregation process and compositing plant for organic wastes on the site of the existing landfill of Dinh Vu, located 17 km from the centre of Hai Phong Cit. The project activities involves the sorting and recovering of the recclable, reusable and recoverable resources from mixed municipal waste generated in Hai Phong Cit, and aerobic treatment of the organic waste utilizing composting technolog. In Hai Phong Cit, about 770 tonnes of municipal solid waste are generated dail, of which 250 tonnes of waste are disposed of at the Dinh Vu landfill site wherein the landfill gases are not extracted. Through the above-mentioned project activities, this project will realise the reduction of the amount of landfilled wastes, consequentl the reduction of the GHG emission. The proposed waste treatment facilit will have a dail input capacit of 250 tonnes of municipal waste disposed of at Dinh Vu Landfill. Considering the product qualit, the compost produced through the project activities will not be sold to the end-user, but will be transported to the landfill site to be utilised as cover soil. Based on the calculations the project will realise 252,360 tonnes CO 2 equivalents over the 7 ears period from 2009 to The project is being developed b Hai Phong Urban Environmental Compan (hereinafter, Hai Phong URENCO), a compan in charge of collection, transport, treatment and final disposal of municipal solid waste from Hai Phong Cit, Viet Nam. The implementation of the project including operation of the waste treatment facilit will be carried out b the Special Purpose Compan (hereinafter, SPC), which will be formed jointl b the Hai Phong URENCO and Kajima Corporation. Besides climate change mitigation, the project will contribute to the sustainable development of Viet Nam in the following aspects: Environmental well-being The project will promote sanitization of landfill site. The project will reduce current environmental and health impacts deriving from landfill sites in the region of the Project site as the result of reducing the load of MSW, particularl the contained organics disposed of at landfill sites Economic and social well-being The project will extend operational lifetime of the landfill site. The project will improve local econom b providing job opportunit to local people for the operation of the facilit. The project will contribute the development of the sustainable societ in Hai Phong Cit which is suit to the national polic of Viet Nam.

3 page 3 A.3. Project participants: Name of Part involved ((host) indicates a host Part) Viet Nam (host) Japan Private and/or public entit (ies) project participants (as applicable) Hai Phong Urban Environmental Corporation (URENCO), project sponsor Special Purpose Compan (SPC) formed b Hai Phong URENCO and Kajima Kajima Corporation (Private entit), project sponsor Kindl indicate if the part involved wishes to be considered as project participant (Yes/No) A.4. Technical description of the project activit: A.4.1. Location of the project activit: A Host Part(ies): Socialist Republic of Viet Nam A Region/State/Province etc.: A Hai Phong Cit Cit/Town/Communit etc: A Detail of phsical location, including information allowing the unique identification of this project activit (maximum one page): The treatment plant for municipal solid waste will be constructed at the part of landfill site of Dinh Vu, in Dong Hi II ward, Hai An district of Hai Phong Cit. Hai Phong cit is located on the south of the Northern Plain, on the coastal areas of Red river delta, about 100 km from Hanoi Cit. (see maps in figures 1).

4 page 4 Hai Phong Cit Project Site Figure 1: Map of Viet Nam and location of project site in Hai Phong Cit

5 page 5 A.4.2. Categor(ies) of project activit: The project fits into Sectoral Scope 13: Waste handling and disposal. A.4.3. Technolog to be emploed b the project activit: The principal technolog to be applied in this project activit is mechanical segregation of municipal solid waste and composting of organic wastes, followed b a stabilization process. The process starts with the separation of solid waste into recclable materials, organic wastes, and other waste. Organic wastes in this project include organic matters such as food waste, wood, and papers which cannot be reccled. Once separated, the organic fraction enters in the bio-treatment areas, and the biological degradation process starts. During the process, organic waste is decomposed aerobicall under controlled temperature, humidit, and air concentration. After being stabilized with adequate humidit, it is transported to the landfill site, and disposed of, or utilised as cover soil. A schematic diagram of the process is shown in Figure 2. Reception of residential solid waste Mechanical Sorting Recclables Rubbers/ leathers Papers (recclable) Reccle Metals Plastics Organic Waste Organic Matters Papers (not recclable) Biological Treatment (Composting) Residue Others (unusable) Textiles Soil / Sand Final Disposal Landfill Figure 2: Schematic Diagram for the Treatment Process

6 page 6 A.4.4 Estimated amount of emission reductions over the chosen crediting period: Table 1: Estimation of emission reductions Year Annual estimation of emission reductions in tonnes of CO2e , , , , , , ,230 Total estimated reductions (tonnes of CO2e) 252,360 Total number of ears in first crediting period 7 Annual average estimated reductions, first crediting period (tonnes of CO2e) 36,051 A.4.5. Public funding of the project activit: The project will not receive an national or international funding for the development of the proposed project.

7 page 7 SECTION B. Application of a baseline and monitoring methodolog B.1. Title and reference of the approved baseline and monitoring methodolog applied to the project activit: AM0025 Avoided emissions from organic waste through alternative waste treatment process, Version 10 (EB36) B.2 Justification of the choice of the methodolog and wh it is applicable to the project activit: As stated in the methodolog, the methodolog is applicable to scenarios which involve one or a combination of the following waste treatment options. a) a composting process in aerobic conditions; b) gasification to produce sngas and its use; c) anaerobic digestion with biogas collection and flaring and/or its use; d) mechanical/thermal treatment process to produce refuse-derived fuel (RDF)/stabilized biomass (SB) and its use. The thermal treatment process (dehdration) occurs under controlled conditions (up to 300 degrees Celsius). In case of thermal treatment process, the process shall generate a stabilized biomass that would be used as fuel or raw material in other industrial process. The phsical and chemical properties of the produced RDF/SB shall be homogenous and constant over time; e) incineration of fresh waste for energ generation, electricit and/or heat. The thermal energ generated is either consumed on-site and/or exported to a nearb facilit. Electricit generated is either consumed on-site, exported to the grid or exported to a nearb facilit. The incinerator is rotating fluidized be or hearth or grate tpe. The proposed project activit corresponds to a) a composting process in aerobic conditions. In addition, the proposed project satisfies the following requirements as described in the methodolog. Requirement In case of composting, the produced compost is either used as soil conditioner or disposed of in landfills The proportions and characteristics of different tpes of organic waste processed in the project activit can be determined, in order to appl a multiphase landfill gas generation model to estimate the quantit of landfill gas that would have been generated in the absence of the project activit Waste handling in the baseline scenario shows a continuation of current practice of disposing waste in landfill despite environmental regulation that mandates the treatment of waste, if an, using an of the project activit mentioned above. Project Condition The proposed project aims to dispose all of the compost produced in the landfill. The proportions and characteristics of different tpes of organic waste processed in the project activit can be determined. The baseline scenario shows that the current practice of disposing waste in landfill without an treatment will be continued.

8 page 8 Requirement The compliance rate of the environmental regulation during (part of) the crediting period is below 50%, if monitored compliance with the MSW rules exceeds 50%, the project activit shall receive no further credit, since the assumption that the polic is not enforced is no longer tenable. The project activit does not involve thermal treatment process of neither industrial or hospital waste. This methodolog is not applicable project activities that involve capture and flaring of methane from existing waste in the landfill. This should be treated as a separate project activit due to the difference in waste characteristics of existing and fresh waste, which ma have an implication on the baseline scenario determination. Project Condition There are no regulations that mandate the intermediate treatment of waste before landfill in Viet Nam. Therefore, the compliance rate does not need to be taken into account. The proposed project activit handles household waste and wastes from offices and markets. Therefore, neither industrial nor hospital waste is treated in the project activit. The proposed project does not involve landfill gas capture or flaring. B.3. Description of the sources and gases included in the project boundar As stated in the methodolog, the following are not included in the project boundar. a) facilities for waste collection b) facilities for waste sorting prior to transportation c) facilities for waste transportation The facilities included in the project boundar are the following. d) facilities for mechanical sorting of waste after reception of waste e) facilities for biological treatment of organic waste f) landfill where the compost produced is disposed g) all facilities related to the proposed project activit that uses electricit h) all facilities related to the proposed project activit that uses fossil fuel

9 page 9 Discharge of Waste Collection & Transportation of Waste Mechanical Sorting Organic Others (unusable) Recclables Reccle Biological Treatment Use of Electricit Grid Final Disposal Landfill Use of Fossil Fuel Fossil Fuel Figure 3: Project Boundar Baseline Project Activit Table B.3.1: The greenhouse gases included in or excluded from the project boundar Source Gas Justification / Explanation The major source of emissions in the baseline from the Emissions from CH 4 Included landfill. decomposition N N 2 O Excluded 2 O emissions are small compared to CH 4 emissions of waste at the from landfills. This is conservative. landfill site CO 2 Excluded Not accounted for. There is no electricit consumption at the project site in Emissions from CO 2 Included the absence of the project activit. electricit CH 4 Excluded Excluded for simplification. This is conservative. consumption N 2 O Excluded Excluded for simplification. This is conservative. There is no thermal energ generation at the project site Emissions from CO 2 Included in the absence of the project activit. thermal Energ CH 4 Excluded Excluded for simplification. This is conservative. generation N 2 O Excluded Excluded for simplification. This is conservative. Ma be an important emission source. It includes On-site fossil CO 2 Included vehicles used on-site, etc. fuel Excluded for simplification. This emission source is consumption CH 4 Excluded assumed to be ver small. due to the Excluded for simplification. This emission source is project activit N 2 O Excluded assumed to be ver small. CO 2 Included Ma be an important emission source. Excluded for simplification. This emission source is On-site CH 4 Excluded assumed to be ver small. electricit use Excluded for simplification. This emission source is N 2 O Excluded assumed to be ver small.

10 page 10 Source Gas Justification / Explanation Direct emissions from the waste treatment process N 2 O CH 4 Included Included Ma be an important emission source for composting activities. The composting process ma not be complete and result in anaerobic deca. B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: Step 1. Identification of alternative scenarios Sub-step 1a: Define alternatives to the project activit: All realistic and credible alternatives to the project activit that can be (part of) the baseline scenario are defined as follows. M1. The project activit not implemented as a CDM project; M2. Disposal of waste at a landfill where landfill gas is captured and flared; M3. Disposal of waste at a landfill without the capture of landfill gas. Sub-step 1b: Consistenc with mandator laws and regulations: All alternatives are in compliance with the mandator laws and regulations that are set b the Government of Viet Nam (Decision No.1555/1999/QD-TTg, Directive No.23/2005/CT-TTG, Decree No.59/2007/ND-CP) Step 2. Identification of fuel for the baseline Step 3. Investment analsis Sub-step 3a: Determine appropriate analsis method The proposed project activit generates financial benefits other than the CDM related income from tipping fee of the waste received, and the sale of recclable material. The financial attractiveness of the proposed project activit will be determined b using Option Ⅲ, the benchmark analsis. Sub-step 3b: Option Ⅲ. Benchmark analsis The economic attractiveness of scenario M1 will be examined b using the benchmark analsis method. The financial indicator is the project IRR and the benchmark is the international bond rate of the government of Viet Nam which is 7.125%. (Issued October, 2005 period of redemption: 10ears) Below are the basic conditions for the calculation of the project IRR. Project Period Waste Amount Item Description 7 ears No change during the project (250t/d)

11 page 11 Amount of Loans None Inflation Rate 6.6% Corporate Tax 28% Depreciation Period 5 ears Tipping Fee 1.00 USD/ton-waste Price of Recclable Waste (Plastics) USD/ton-plastic Unit: USD Expense Initial Investment 1,134,000 O&M Cost 178,000 Expense Total (7 ears) 2,379,000 Income CER Sales 0 Tipping Fee 91,300 Plastic Sales 42,200 Income Total (7 ears) 933,400 Project IRR Negative Value The project IRR is negative. Therefore, it can be stated that the project is economicall unattractive, and shall be excluded from further consideration. In scenario M2, since there are no mandator laws or regulations that specif that the gases from the landfill must be captured and flared, there will be no public funding, mone grants, or an sort of incentive for the installation of gas collection and flaring equipments. There is no income other than the CDM related income. Therefore, it can be stated clearl that scenario M2 is economicall unattractive, and shall also be excluded from further consideration. Through the assessment above, it is determined that the most plausible baseline scenario is M3 which is the disposal of waste at a landfill without the capture of landfill gas. B.5. Description of how the anthropogenic emissions of GHG b sources are reduced below those that would have occurred in the absence of the registered CDM project activit (assessment and demonstration of additionalit): Additionalit of the proposed project activit will be demonstrated and assessed using the Tool for the demonstration and assessment of additionalit. Version 04 (EB36) Step 1. Identification of alternatives to the project activit consistent with current laws and regulations Sub-step 1a. Define alternatives to the project activit: Realistic and credible alternatives available are the following. M1. The project activit not implemented as a CDM project; M2. Disposal of waste at a landfill where landfill gas is captured and flared;

12 page 12 M3. Disposal of waste at a landfill without the capture of landfill gas. Sub-step 1b: Consistenc with mandator laws and regulations: As stated in the previous section for assessment of the baseline scenario, all alternatives are in compliance with the mandator laws and regulations that are set b the Government of Viet Nam (Decision No.1555/1999/QD-TTg, Directive No.23/2005/CT-TTG, Decree No.59/2007/ND-CP) Step 2. Investment Analsis Sub-step 2a. Determine appropriate analsis method: The proposed project activit generates financial benefits other than the CDM related income from tipping fee of the waste received, and the sale of recclable material. The financial attractiveness of the proposed project activit will be determined b using Option Ⅲ, the benchmark analsis. Sub-step 2b. OptionⅢ. Appl benchmark analsis: The economic attractiveness of the proposed project activit (scenario M1) will be examined b using the benchmark analsis method. The financial indicator is the project IRR and the benchmark is the international bond rate of the government of Viet Nam which is 7.125%. (Issued October, 2005 period of redemption: 10ears) Sub-step 2c. Calculation and comparison of financial indicators: The IRR is calculated according to the following basic conditions. Item Description Project Period 7 ears Waste Amount No change during the project (250t/d) Amount of Loans None Inflation Rate 6.6% Corporate Tax 28% Depreciation Period 5 ears Tipping Fee 1.00 USD/ton-waste Price of Recclable Waste (Plastics) USD/ton-plastic Unit: USD Expense Initial Investment 1,134,000 O&M Cost 178,000 Expense Total (7 ears) 2,379,000

13 page 13 Income CER Sales 0 Tipping Fee 91,300 Plastic Sales 42,200 Income Total (7 ears) 933,400 Project IRR Negative Value The project IRR is negative. Therefore, it can be stated clearl that the project is economicall unattractive. In scenario M2, since there are no mandator laws or regulations that specif that the gases from the landfill must be captured and flared, there will be no public funding, mone grants, or an sort of incentive for the installation of gas collection and flaring equipments. There is no income other than the CDM related income. Therefore, it can be stated clearl that scenario M2 is economicall unattractive. In scenario M3, the landfill without the capture of landfill gas is operated b income from the tipping fee, which is a common practice in Viet Nam. Through the assessment above, it is made clear that scenario M1, which is the project activit implemented without the income from CER sales, is economicall unattractive than at least one other alternatives, identified in step 1. Sub-step 2d. Sensitivit analsis: The conclusion regarding the financial attractiveness will be ensured b a sensitivit analsis. The parameters that will be considered for the analsis are the following. Expense Income : Range from 5% to 15% compared to the original condition : Range from +10% to +30% compared to the original condition 9 cases were considered for the sensitivit analsis. Unit: % Expense -15% (2.0 M USD/7 ears) -10% (2.1 M USD/7 ears) -5% (2.2 M USD/7 ears) +10% (1.0 M USD/7 ears) Negative Negative Negative +20% (1.1 M USD/7 ears) Negative Negative Negative +30% (1.2 M USD/7 ears) Negative Negative Negative Income In all cases, the IRR is negative. Step 4. Common practice analsis Sub-step 4a. Analze other activities similar to the proposed activit:

14 page 14 Several similar projects have been implemented in Viet Nam. Composting, as well as its commercial use is under wa. The similarit between the projects is the low income from compost sales compared to the initial and operational costs. The operation of the composting plant in Hanoi is made possible b subsid from the local government. Composting facilities constructed in other areas were forced to shut down because of the high operational cost. Sub-step 4b.Discuss an similar options that are occurring: As discussed in 4a, even with the income from compost sales, implementation of a composting project is difficult due to the high operational cost. The proposed project activit aims to dispose the compost in a landfill, clearl distinguishing the circumstance of the proposed project activit from the composting projects that have alread been implemented. The proposed project activit is economicall unattractive, and it will not be implemented without the incentive provided b the CDM. Therefore, the proposed project activit is additional. B.6. Emission reductions: B.6.1. Explanation of methodological choices: Project Emissions Project emissions are calculated using equation (1) provided in the methodolog. PE a,, PE g,, PE r,, PE i,, PE w,, are excluded from the calculation since the proposed project activit involves onl composting. PE PEelec, + PE fuel, on site, + PEc, = (1) PE PE elec, PE fuel,on-site, PE c, is the project emissions during the ear (tco 2 e/r) is the emissions from electricit consumption due to the project activit during the ear (tco 2 /r) is the emissions due to fuel consumption on-site in ear (tco 2 /r) is the emissions during the composting process in ear (tco 2 e/r) Emissions from electricit use (PE elec, ) The proposed project activit involves consumption of electricit. The emissions from electricit consumption are calculated using equation (2). PE elec, = EGPJ, EF, CEFelec (2) PE elec, is the emissions from electricit consumption due to the project activit during the ear (tco 2 /r)

15 page 15 EG PJ,EF, CEF elec is the amount of electricit generated in an on-site fossil fuel fired power plant or consumed from the grid in the project activit, measured using an electricit meter (MWh/r) CO 2 emission factor for electricit generation in the project activit (tco 2 /MWh) Since electricit will be purchased from the grid, CEF elec will be calculated according to the Tool to calculate the emission factor for an electricit sstem. Emissions from fuel use on-site (PE fuel,on-site, ) The proposed project activit involves on-site fossil fuel consumption. The emissions from fossil fuel consumption on-site are calculated using equation (3). PE = F NCV EF PE fuel,on-site, is the CO 2 emissions due to on-site fuel combustion in ear (tco 2 /r) F cons, is the fuel consumption on site in ear (l) NCV fuel is the net calorific value of the fuel (MJ/l) is the CO 2 emission factor of the fuel (tco 2 /MJ) EF fuel fuel, on site, cons, fuel fuel (3) Emissions from Composting (PE c, ) Project emissions from composting are calculated using equation (4). PE c, PEc, N 2O, + PEc, CH 4, = (4) PE c, PE c,n2o, PE c,ch4, is the emissions during the composting process in ear (tco 2 /r) is the N 2 O emissions during the composting process in ear (tco 2 e/r) is the emissions during the composting process due to methane production through anaerobic conditions in ear (tco 2 e/r) N 2 O emissions The N 2 O emissions during the composting process are calculated using equation (5). PEc, N 2O, M compost, EFc, N 2O GWPN 2O = (5) PE c,n2o, is the N 2 O emissions during the composting process in ear (tco 2 e/r) M compost, is the total quantit of compost produced in ear (tonnes/r) EF c,n2o is the emission factor for N 2 O from the composting process (tn 2 O/t compost) GWP N2O is the Global Warming Potential of nitrous oxide (tco 2 /tn 2 O)

16 page 16 CH 4 emissions The CH 4 emissions during the composting process are calculated using equation (6). PE c, CH 4, M compost, GWPCH 4 Sa, = (6) PE c,ch4, is the project methane emissions due to anaerobic conditions in the composting process in ear (tco 2 e/r) M compost, is the total quantit of compost produced in ear (tonnes/r) GWP CH4 is the Global Warming Potential of methane, (tco 2 /tch 4 ) S a, is the share of the waste that degrades under anaerobic conditions in the composting plant during ear (%) S a, is calculated using equation (7) S a SOD, Stotal,, = (7) S a, S OD, S total, is the share of the waste that degrades under anaerobic conditions in the composting plant during ear (%) is the number of samples per ear with an oxgen deficienc (i.e. oxgen content below 10%) is the total number of samples taken per ear, where S total, should be chosen in a manner that ensures the estimation of S a, with 20% uncertaint at a 95% confidence level. Baseline Emissions Baseline emissions are calculated using equation (17) provided in the methodolog. BE MB MDreg, + BEEN, = (8) BE MB reg, MD reg, BE EN, is the baseline emissions in ear (tco 2 e/r) is the methane produced in the landfill in the absence of the project activit in ear (tco 2 e/r) is the methane that would be destroed in the absence of the project activit in ear (tco 2 e/r) Baseline emissions from generation of energ displaced b the project activit in ear (tco 2 /r) Adjustment Factor (AF)

17 page 17 Since regulator or contractual requirements do not specif MD reg, in the proposed project activit, Adjustment Factor (AF) will be used to determine the methane that would be destroed in the absence of the project activit. MD, = MB AF (9) reg AF is Adjustment Factor for MB (%) Rate of Compliance There are no laws or regulations that mandate the use of the treatment process of the proposed project activit in Viet Nam. Therefore, method for adjusting the baseline emissions b rate of compliance does not appl. Methane generation from the landfill in the absence of the project activit (MB ) The amount of methane that is generated each ear (MB ) is calculated as per the Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site, considering the following equation: MB = BE CH 4, SWDS, (10) BE 16 kj ( x) kj ( 1 f ) ( 1 OX ) F DOC f MCF Wj, x DOC j e ( e ) CH 4, SWDS, = ϕ 1 12 x= 1 j (11) MB is BE CH4,SWDS, (tco 2 e/r) BE CH4,SWDS, is the methane emissions avoided during the ear from preventing waste disposal at the solid waste disposal site (SWDS) during the period from the start of the project activit to the end of the ear (tco 2 e/r) φ is the model correction factor to account for model uncertainties (0.9) f is the fraction of methane captured at the SWDS and flared, combusted or used in another manner GWP CH4 is the Global Warming Potential (GWP) of methane, valid for the relevant commitment period OX is the oxidation factor (reflecting the amount of methane from SWDS that is oxidised in the soil or other material covering the waste) F is the fraction of methane in the SWDS gas (volume fraction) (0.5) DOC f is the fraction of degradable organic carbon (DOC) that can decompose MCF is the methane correction factor W j,x is the amount of organic waste tpe j prevented from disposal in the SWDS in the ear x (tonnes) DOC j is the fraction of degradable organic carbon (b weight) in the waste tpe j is the deca rate for the waste tpe j k j

18 page 18 j x is the waste tpe categor (index) is the ear during the crediting period: x runs from the first ear of the first crediting period (x=1) to ear for which avoided emissions are calculated (x=) is the ear for which methane emissions are calculated z Pn, j, x n= 1 W j, x = Wx z (12) W j,x W x P n,j,x z is the amount of organic waste tpe j prevented from disposal in the SWDS in the ear x (tonnes) is the total amount of organic waste prevented from disposal in ear x (tonnes) is the weight fraction of the waste tpe j in the sample n collected during the ear x is the number of samples collected during the ear x Baseline emissions from generation of electricit displaced b the project activit This section is not applicable since the proposed project activit does not involve an electricit generation. Baseline emissions from electricit and heat cogeneration that is displaced b the project activit This section is not applicable since the proposed project activit does not involve cogeneration b electricit or heat. Leakage The leakage emissions of the proposed project activit are estimated using the following equation: L Lt, + Lr, + Ls, = (13) L is the leakage emissions during the ear (tco 2 e/r) L t, is the leakage emissions from increased transport in ear (tco 2 e/r) L r, is the leakage emissions from the residual waste from the anaerobic digester, the gasifier, the processing/combustion of RDF/stabilized biomass, or compost in case it is disposed of in landfills in ear (tco 2 /r) L s, is the leakage emissions from end use of stabilized biomass in ear (tco 2 e/r) There is no increase of transportation related to the proposed project activit or use of stabilized biomass. Therefore, the onl leakage emission from the proposed project activit is the leakage emission from compost which will be disposed in a landfill. Emissions from compost

19 page 19 Since the compost produced from the facilit will be disposed in the SWDS, leakage emissions are estimated through equation (11). Emission Reduction The emission reductions are calculated b appling the following equation. ER = BE PE L (14) ER is the emissions reductions in ear (tco 2 e) BE is the emissions in the baseline scenario in ear (tco 2 e) PE is the emissions in the project scenario in ear (tco 2 e) L is the leakage in ear (tco 2 e) B.6.2. Data and parameters that are available at validation: CEF elec Data / Parameter: Data unit: tco 2 /MWh The emission factor for electricit generation corresponding to electricit used in the project activit. Source of data used: Value applied: Justification of the Determined using the Tool to calculate the emission factor for an electricit choice of data or sstem description of and procedures actuall applied : An comment: NCV fuel Data / Parameter: Data unit: MJ/l Net calorific value of fuel Source of data used: IPCC Value applied: 36.3 Justification of the Adjusted b multipling (densit of diesel) to the NCV value (43.0 choice of data or TJ/Gg) provided for Gas/Diesel in the IPCC guideline. description of and procedures actuall applied :

20 page 20 An comment: EF fuel Data / Parameter: Data unit: tco 2 /MJ Emission factor for the fuel Source of data used: IPCC Value applied: Justification of the choice of data or description of and procedures actuall applied : An comment: EF C,N2O Data / Parameter: Data unit: tn 2 O/t compost Emission factor for N 2 O from the composting process Source of data used: AM0025 Value applied: Justification of the Default value given in the approved methodolog AM0025, based on Schenk et choice of data or al., 1997 description of and procedures actuall applied : An comment: GWP N2O Data / Parameter: Data unit: - Global Warming Potential of nitrous oxide Source of data used: Koto Protocol Value applied: 310 Justification of the Valid for the First Commitment Period choice of data or description of and procedures actuall applied : An comment: GWP CH4 Data / Parameter: Data unit: - Global Warming Potential of methane Source of data used: Koto Protocol Value applied: 21 Justification of the Valid for the First Commitment Period

21 page 21 choice of data or description of and procedures actuall applied : An comment: Data / Parameter: φ Data unit: - Model correction factor to account for model uncertainties of the Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site Source of data used: Tool to determine the methane emissions avoided from dumping waste at a solid waste disposal site Value applied: 0.9 Justification of the choice of data or description of and procedures actuall applied : An comment: Data / Parameter: f Data unit: - Fraction of methane captured at the SWDS and flared, combusted or used in another manner Source of data used: AM0025 Value applied: 0 Justification of the Alread accounted for as AF (Adjustment Factor) choice of data or description of and procedures actuall applied : An comment: Data / Parameter: OX Data unit: - Oxidation Factor (reflecting the amount of methane from SWDS that is oxidized in the soil or other material covering the waste) Source of data used: Assessed according to site visit and the Tool to determine the methane emissions avoided from dumping waste at a solid waste disposal site Value applied: 0 Justification of the The site for the proposed project activit is an unmanaged solid waste disposal choice of data or site that is not covered with soil. description of

22 page 22 and procedures actuall applied : An comment: Data / Parameter: F Data unit: - Fraction of methane in the SWDS gas (volume fraction) Source of data used: Tool to determine the methane emissions avoided from dumping waste at a solid waste disposal site Value applied: 0.5 Justification of the A default value recommended b the IPCC. choice of data or description of and procedures actuall applied : An comment: Data / Parameter: DOC f Data unit: - Fraction of degradable organic carbon (DOC) that can decompose Source of data used: Tool to determine the methane emissions avoided from dumping waste at a solid waste disposal site Value applied: 0.5 Justification of the choice of data or description of and procedures actuall applied : An comment: Data / Parameter: MCF Data unit: - Methane correction factor Source of data used: Tool to determine the methane emissions avoided from dumping waste at a solid waste disposal site Value applied: 0.8 Justification of the Value applied for unmanaged solid waste disposal site deep and/or with choice of data or high water table stated in the Tool to determine methane emissions avoided description of from dumping waste at a solid waste disposal site. Assessed according to site visit. and procedures actuall applied : An comment:

23 page 23 Data / Parameter: DOC j Data unit: - Fraction of degradable organic carbon (b weight) in the waste tpe j Source of data used: Tool to determine the methane emissions avoided from dumping waste at a solid waste disposal site Value applied: Following values are applied for each waste tpe j according to the values provided in the Tool to determine the methane emissions avoided from dumping waste at a solid waste disposal site. Waste Tpe j DOC j DOC j (% wet waste) (% dr waste) Food Garden Wood and Straw Paper Textiles Disposable nappies Justification of the choice of data or description of and procedures actuall applied : An comment: k j Data / Parameter: Data unit: - Deca rate for the waste tpe j Source of data used: Tool to determine the methane emissions avoided from dumping waste at a solid waste disposal site

24 page 24 Value applied: Justification of the choice of data or description of and procedures actuall applied : An comment: Following values are applied for each waste tpe j according to the values provided in the Tool to determine the methane emissions avoided from dumping waste at a solid waste disposal site. The conditions for the project site is tropical (MAT>20 ) and wet (MAP>1000mm), and the decomposition of waste is ver fast (Rapidl degrading). Waste Tpe j Tropical (MAT>20 ) Wet (MAP>1000mm) Food 0.4 Garden 0.17 Wood and Straw Paper 0.07 Textiles 0.07 Disposable nappies 0.17 B.6.3 Ex-ante calculation of emission reductions: Project Emissions PE PEelec, + PE fuel, on site, + PEc, = (1) PE PE elec, PE fuel,on-site, PE c, is the project emissions during the ear (tco 2 e/r) is the emissions from electricit consumption due to the project activit during the ear (tco 2 /r) is the emissions on-site due to fuel consumption on-site in ear (tco 2 /r) is the emissions during the composting process in ear (tco 2 e/r) PE PE elec, PE fuel,on-site, PE c, tco 2 e/r tco 2 /r tco 2 /r tco 2 e/r Emissions from electricit use (PE elec, ) PE elec, = EGPJ, EF, CEFelec (2)

25 page 25 PE elec, EG PJ,EF, CEF elec is the emissions from electricit consumption due to the project activit during the ear (tco 2 /r) is the amount of electricit generated in an on-site fossil fuel fired power plant or consumed from the grid in the project activit, measured using an electricit meter (MWh) CO 2 emission factor for electricit generation in the project activit (tco 2 /MWh) PE elec, EG PJ,EF, CEF elec tco 2 /r MWh tco 2 /MWh Emissions from fuel use on-site (PE fuel,on-site, ) PE = F NCV EF fuel, on site, cons, fuel fuel (3) PE fuel,on-site, F cons, NCV fuel EF fuel is the CO 2 emissions due to on-site fuel combustion in ear (tco 2 /r) is the fuel consumption on site in ear (l) is the net calorific value of the fuel (MJ/l) is the CO 2 emission factor of the fuel (tco 2 /MJ) PE fuel,on-site, F cons, NCV fuel EF fuel tco 2 /r l MJ/l tco 2 /MJ , Emissions from Composting (PE c, ) PE c, PEc, N 2O, + PEc, CH 4, = (4) PE c, PE c,n2o, PE c,ch4, is the emissions during the composting process in ear (tco 2 e/r) is the N 2 O emissions during the composting process in ear (tco 2 e/r) is the emissions during the composting process due to methane production through anaerobic conditions in ear (tco 2 e/r) PE c, PE c,n2o, PE c,ch4, tco 2 e/r tco 2 e/r tco 2 e/r N 2 O emissions PEc, N 2O, M compost, EFc, N 2O GWPN 2O = (5)

26 page 26 PE c,n2o, is the N 2 O emissions during the composting process in ear (tco 2 e/r) M compost, is the total quantit of compost produced in ear (tonnes/r) EF c,n2o is the emission factor for N 2 O from the composting process (tn 2 O/t compost) GWP N2O is the Global Warming Potential of nitrous oxide, (tco 2 /tn 2 O) PE c,n2o, M compost, EF c,n2o GWP N2O tco 2 e/r tonnes/r tn 2 O/t compost tco 2 /tn 2 O , CH 4 emissions PE c, CH 4, M compost, GWPN 2O Sa, = (6) PE c,ch4, is the project methane emissions due to anaerobic conditions in the composting process in ear (tco 2 e) M compost, is the total quantit of compost produced in ear (tonnes/r) GWP CH4 is the Global Warming Potential of methane, (tco 2 /tch 4 ) S a, is the share of the waste that degrades under anaerobic conditions in the composting plant during ear (%) PE c,ch4, M compost, GWP CH4 S a, tco 2 e/r tonnes/r tco 2 /tch 4 % 0 27, S a SOD, Stotal,, = (7) S a, S OD, S total, is the share of the waste that degrades under anaerobic conditions in the composting plant during ear (%) is the number of samples per ear with an oxgen deficienc (i.e. oxgen content below 10%) is the total number of samples taken per ear, where S total, should be chosen in a manner that ensures the estimation of S a, with 20% uncertaint at a 95% confidence level. S a, S OD, S total, % ,000 Baseline Emissions BE MB MDreg, + BEEN, = (8)

27 page 27 BE is the baseline emissions in ear (tco 2 /r) MB reg, is the methane produced in the landfill in the absence of the project activit in ear (tco 2 e/r) MD reg, is the methane that would be destroed in the absence of the project activit in ear (tco 2 e/r) BE EN, Baseline emissions from generation of energ displaced b the project activit in ear (tco 2 /r) Year BE MB MD reg, BE EN, tco 2 /r tco 2 e/r tco 2 e/r tco 2 /r ,400 15, ,370 26, ,280 34, ,060 40, ,340 44, ,570 47, ,040 50,040 Adjustment Factor (AF) MD, = MB AF (9) reg AF is the Adjustment Factor for MB (%) MD reg, MB AF tco 2 e/r tco 2 e/r % 0 See table above 0 Methane generation from the landfill in the absence of the project activit (MB ) MB = BE CH 4, SWDS, (10) BE 16 kj ( x) kj ( 1 f ) ( 1 OX ) F DOC f MCF Wj, x DOC j e ( e ) CH 4, SWDS, = ϕ 1 12 x= 1 j MB is BE CH4,SWDS, (tco 2 e/r) (11)

28 page 28 BE CH4,SWDS, is the methane emissions avoided during the ear from preventing waste disposal at the solid waste disposal site (SWDS) during the period from the start of the project activit to the end of the ear (tco 2 e/r) φ is the model correction factor to account for model uncertainties (0.9) f is the fraction of methane captured at the SWDS and flared, combusted or used in another manner GWP CH4 is the Global Warming Potential (GWP) of methane, valid for the relevant commitment period OX is the oxidation factor (reflecting the amount of methane from SWDS that is oxidised in the soil or other material covering the waste) F is the fraction of methane in the SWDS gas (volume fraction) (0.5) DOC f is the fraction of degradable organic carbon (DOC) that can decompose MCF is the methane correction factor W j,x is the amount of organic waste tpe j prevented from disposal in the SWDS in the ear x (tonnes) DOC j is the fraction of degradable organic carbon (b weight) in the waste tpe j k j is the deca rate for the waste tpe j j is the waste tpe categor (index) x is the ear during the crediting period: x runs from the first ear of the first crediting period (x=1) to ear for which avoided emissions are calculated (x=) is the ear for which methane emissions are calculated z Pn, j, x n= 1 W j, x = Wx z (12) W j,x W x P n,j,x z is the amount of organic waste tpe j prevented from disposal in the SWDS in the ear x (tonnes) is the total amount of organic waste prevented from disposal in ear x (tonnes) is the weight fraction of the waste tpe j in the sample n collected during the ear x is the number of samples collected during the ear x BE CH4,SWDS, Year MB tco 2 e/r tco 2 e/r ,400 15, ,370 26, ,280 34, ,060 40, ,340 44, ,570 47, ,040 50,040

29 page 29 φ f GWP CH4 OX F DOC f MCF Waste tpe j W j,x DOC j k j tons/r % 1/r Food 47, Garden 19, Wood and Straw 2, Paper Textiles 1, Disposable nappies W x P n,j,x Year tons/r Waste Tpe % ,250 Food 52.4% ,250 Garden 21.2% ,250 Paper 3.3% ,250 Wood 0.4% ,250 Textile 2.0% ,250 Nappies 0.0% ,250 Plastics, other inert 20.8% Baseline emissions from generation of electricit displaced b the project activit This section is not applicable since the proposed project activit does not involve an electricit generation. Baseline emissions from electricit and heat cogeneration that is displaced b the project activit This section is not applicable since the proposed project activit does not involve electricit or heat cogeneration. Leakage L Lt, + Lr, + Ls, = (13) L L t, L r, L s, is the leakage emissions during the ear (tco 2 e/r) is the leakage emissions from increased transport in ear (tco 2 e/r) is the leakage emissions from the residual waste from the anaerobic digester, the gasifier, the processing/combustion of RDF/stabilized biomass, or compost in case it is disposed of in landfills in ear (tco 2 e/r) is the leakage emissions from end use of compost in ear (tco 2 e/r)

30 page 30 L L t, L r, L s, tco 2 e/r tco 2 e/r tco 2 e/r tco 2 /r 0 0 N/A 0 Since the degradable organic carbon and the deca rate of the compost disposed in the landfill is ver small, the leakage emissions from compost is assumed to be negligible. The DOC and k value will be monitored in the project activit. Emission Reduction ER = BE PE L (14) ER is the emissions reductions in ear (tco 2 e) BE is the emissions in the baseline scenario in ear (tco 2 e) PE is the emissions in the project scenario in ear (tco 2 e) L is the leakage in ear (tco 2 e) B.6.4 Summar of the ex-ante estimation of emission reductions: The ex-ante emission reductions throughout the crediting period are estimated as below: Year ER BE PE L tco 2 e/r tco 2 e/r tco 2 e/r tco 2 e/r ,590 15, ,560 26, ,460 34, ,240 40, ,530 44, ,750 47, ,230 50, B.7 Application of the monitoring methodolog and description of the monitoring plan: B.7.1 Data and parameters monitored: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected EG PJ,EF, MWh/ear The amount of electricit consumed from the grid in the project activit. Measurements at the composting facilit and metering data from the electric compan. 82 MWh

31 page 31 emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: An comment: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: An comment: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of Electricit consumption will be measure b an electric meter of the composting facilit. The electric meter will be checked periodicall to test the accurac of its measurement. The data will be double checked with the electric compan. F cons, l/ear The diesel fuel consumption b vehicles. Fuel purchase invoice and/or metering l Original invoices for fuel purchases would be kept b paper as well as electronic data b the SPC. Consistenc between the original invoice and the accumulated electronic data will be checked periodicall. M compost, tonnes / r Quantit of compost produced. Record of compost facilit M compost, Year tonnes/r , , , , , , ,594 Measured b truck scale. Data will be stored b paper as well as electronic data.

32 page 32 and procedures to be applied: QA/QC procedures to be applied: An comment: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: An comment: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: An comment: Data / Parameter: Data unit: Source of data to be Periodical calibration of the truck scale. S OD, Dimensionless The number of samples taken per ear with an oxgen deficienc (i.e. oxgen content below 10%) On-site measurement 0 (For ex-ante estimation, it is assumed that no samples will have oxgen deficienc in the composting process.) Oxgen concentration will be measured using a portable oxgen analzer. Calibration of oxgen analzer will be done periodicall. S total, Dimensionless The total number of samples taken per ear. On-site measurement 5,000 (number of samples taken will be decided after commencement of the project taking into account the result of the first measurement) Frequenc of measurement and the number of samples taken will be decided so as to compl with the statistical requirements. W x Tonnes/ear Total amount of organic waste prevented from disposal during the ear x On-site measurements

33 page 33 used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: An comment: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: An comment: Data / Parameter: Data unit: W x Year tons/r , , , , , , ,250 The amount of organic waste prevented from disposal is the amount of organic waste processed at the composting facilit. This amount will be measured at the truck scale which will be located at the entrance of the facilit. Periodical calibration of the truck scale. P n,j,x % b weight of waste Weight fraction of the waste tpe j in the sample n collected during the ear x Sample on-site measurements Waste Tpe P n,j,x % Food 52.4% Garden 21.2% Paper 3.3% Wood 0.4% Textile 2.0% Nappies 0.0% Plastics, other inert 20.8% Sampling of waste will be conducted at least four times a ear. Volume of waste to be sampled, and the frequenc of sampling will be adjusted in the project activit to meet the statistical requirements. z Dimensionless

34 page 34 Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: An comment: Number of samples taken per ear, for determination of waste composition, P n,j,x On-site measurement N/A Number of samples taken for analsis will be recorded on paper and electronic format. All data will be converted and stored b electronic format and cross checked with the original data. The data and calculation result will be managed b the SPC that will be established for project implementation. The various data and calculation results will be verified b a DOE earl for the issuance of CER s. Items Responsible Organization Description 1 Monitoring Planning SPC Training will be done for the O/M team for the good understanding of the monitoring plan and the actual monitoring methods. 2 Monitoring SPC or outsourced All data will be stored b paper and electronic files. 3 Monitoring of Regulation SPC or outsourced Periodical reports will be made 4 Calibration of Monitoring Calibration record will be kept b Authorized entit Equipments the SPC B.8 Date of completion of the application of the baseline stud and monitoring methodolog and the name of the responsible person(s)/entit(ies) Date of completion of the application of the methodolog to the project activit: 01/10/2008 Hideki FUJII Kajima Corporation 5-11, Akasaka 6-Chome Minato-ku Toko Japan Telephone: