Description of the Bundle and the subbundles:

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1 CDM Executive Board Version 2, page 1 CLEAN DEVELOPMENT MECHANISM FORM FOR SUBMISSION OF BUNDLED SMALL SCALE PROJECT ACTIVITIES (SSC-CDM-BUNDLE) SECTION A. General description of the Bundle A.1. Title of the Bundle: Lin Jiang Bundled Small Hydroelectric Project A.2. Version and Date : Version /07/2008 A.3. Description of the Bundle and the subbundles: The Lin Jiang Bundled Small Hydroelectric Project (hereafter referred to as the Project ) developed by Lin Cang Lin Jiang Hydropower Development Co., Ltd and Lin Cang Lin Tian Hydropower Development Co. Ltd (hereafter jointly referred to as the Project Developer ) is a small-scale hydropower project in Yunnan Province of the People's Republic of China (hereafter referred to as the Host Country ). The Project consists of two run-of-river hydropower plants: Linjiang 1st Level Hydro Power Project and Linjiang 2nd Level Hydro Power Project. The total installed capacity of Linjiang 1st Level Hydro Power Project is 5 MW with a predicted total electricity supply to the grid of 19,717 MWh per annum. The total installed capacity of Linjiang 2nd Level Hydro Power Project is 8 MW and with a predicted total electricity supply to the grid of 32,242 MWh per annum. The Project will utilise the hydrological resources of the Nanting River and its tributaries in 2 run-of-river hydro power facilities that will generate low emissions electricity for the South China Power Grid (hereafter referred to as the Grid ). The Project Developer has obtained permission to sell generated electricity to the Yunnan Power Grid which is an integral part of the South China Power Grid. The Grid is a coal-dominated power grid. The electricity currently generated by the grid is relatively carbon intensive, with an operating margin emission factor of tco 2 /MWh and a build margin emission factor of tco 2 /MWh (see section B for further details). The Project is therefore expected to reduce emissions of greenhouse gases (GHG) by an estimated 43,821 tco 2 e per year during the first crediting period. The Project is contributing to sustainable development of the Host Country. Specifically, the Project: Achieves greenhouse gas (GHG) emission reductions by avoiding CO 2 emissions from the business-as-usual scenario electricity generation of fossil fuel-fired power plants connected to the Grid.

2 CDM Executive Board Version 2, page 2 Increases employment opportunities in the area where it is located (approximately 34 1 persons will be permanently employed for the Project operation and in addition the construction of the Project secures jobs in the construction sector) and thereby contributes to poverty alleviation Enhances the local investment environment and therefore improves the local economy Diversifies the sources of electricity generation, which is important for meeting growing energy demands and the transition away from diesel and coal-supplied electricity generation Makes greater use of renewable hydroelectric resources. A.4. Project participants: Name of Party involved (*) ((host) indicates a host Party) People's Republic of China (host) United Kingdom of Great Britain and Northern Ireland Private and/or public entity(ies) project participants (*) (as applicable) Lin Cang Lin Jiang Hydropower Development Co., Ltd EcoSecurities Group plc Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) No No (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required. SECTION B. Technical description of the Bundle: B.1. Location of the Bundle: B.1.1. Host Party(ies): People's Republic of China (P.R. China) B.1.2. Region/State/Province etc.: Yunnan Province B.1.3. City/Town/Community etc: Lincang City B.1.4. Details of physical location, including information allowing the unique identification of this Bundle: The exact location of the project is defined using geographic coordinates obtained with a Global Positioning System (GPS) receiver: E , N for the Linjiang 1st power plant and E , N for the Linjiang 2nd power plant. These geographic coordinates are for the power houses. 1 See the Preliminary Design Report, p13-25

3 CDM Executive Board Version 2, page 3 Figure A.1 The location of Yunnan Province in China Project Site Figure A.2 The location of the two sites of the proposed project (indicated by the yellow markers) B.2. Type(s), category(ies) and technology/(ies)/measure/(s) of the bundle:

4 CDM Executive Board Version 2, page 4 The project falls under UNFCCC sectoral scope 1: Energy industries (renewable - / non-renewable sources). According to Appendix B of the UNFCCC s published simplified procedures for small scale activities, the category of this project activity is: Type I: Renewable Energy Projects Category I.D: Grid Connected Renewable Energy Generation The Project uses well established hydro power generation technology for electricity generation and transmission. The Project consists of two diversion type power stations: the Linjiang 1st and 2nd level power stations. The total installed capacity of the Project is 13 MW (consisting of 5 MW installed capacity for the Linjiang 1st Level power plant and 8 MW installed capacity for the Linjiang 2nd Level power plant). The Linjiang 1st Level Project consists of an intake structure, diversion dam, pressure forebay, steel pressure pipeline, water conveyance system and power house. The water intake structure is located on the upstream portion of the Nanting River and consists of a low diversion dam (2.5 6m) with one sluice gate, which directs part of the river flow into the water conveyance system. The diversion dam has no storage function and only creates a small holding pond. The conveyance system comprises a tunnel (468m), a penstock (307m), a pressure adjustment well and high pressure pipelines. It forms a 29m water head to take advantage of the natural height drop of the river and carries the water to the power house. The water enters, through high pressure pipelines, into two turbines in the power house. After power generation the water is discharged into the Nanting River through a tailrace. A 35kV double circuit transmission line (total distance 2km) from the switchyard to the 110kV Dawen sub-station is used for connecting the station to the power grid. The Linjiang 2nd Level Project also consists of an intake structure, diversion dam, pressure forebay, steel pressure pipeline, water conveyance system and power house. The water intake structure is located on the upstream portion of the Nanting River and consists of a low diversion dam (4 4m) with one sluice gate, which directs part of the river flow into the water conveyance system. The diversion dam has no storage function and only creates a small holding pond. The conveyance system comprises a tunnel (450m), a penstock (1,364m long), a pressure adjustment well and high pressure pipelines. It forms a 42m water head to take advantage of the natural height drop of the river and carries the water to the power house. The water enters, through high pressure pipelines, into two turbines installed in the power house. After power generation the water is discharged into the Nanting River through a tailrace. A 35kV double circuit transmission line (total distance 2km) from the 2 nd Level Project will be connected to Linjiang 1st Level project and will then be connected to the 110kV Dawen sub-station. The substation is used to connect the power station to the power grid. The main technical parameters of the proposed Project are shown in Tables A.4.1 and A.4.2. below. Table A Main technical parameters of Linjiang 1st Level power project Parameter Name Value Source

5 CDM Executive Board Version 2, page 5 Installed capacity (MW) 5 Feasibility Study Report p1-1* Annual Operating time (hour) 4,734 Feasibility Study Report p1-1* Expected annual power supplied to the grid (MWh) 19,717 Feasibility Study Report p13-27* Water head (m) 29 Feasibility Study Report p1-1* Design flow (m 3 /s) Feasibility Study Report p4-12* *The Feasibility Study Reports for the 1 st level Project and 2 nd level Project were made by Lincang Municipal Research Institute of Hydro Power and Exploitation Survey in November and December 2005 respectively, and audited and approved by the local government - Lincang Development and Reform Committee - in January and July 2006 respectively. Feasibility Study Reports (FSR) for hydropower projects developed in China are made by an independent third party, usually a research and design institute. These FSR are then audited and approved by the local government (local Development and Reform Committee - DRC). The results of the audit are usually a document summarizing the findings of the audit process, such as adjusted investment costs and reviewed technical parameters as estimated by the local DRC. Table A Main technical parameters of Linjiang 2nd Level power station Parameter Name Value Source Installed capacity (MW) 8 Feasibility Study Report p10* Annual Operating time (hour) 4,714 Feasibility Study Report p10* Expected annual power supplied to the grid (MWh) 32,242 Feasibility Study Report p13-14* Water head (m) 42 Feasibility Study Report p10* Design flow (m 3 /s) 24.5 Feasibility Study Report p10* *The Feasibility Study Report for the second level project was approved by Lincang Development and Reform Committee in July 2006 The two power stations of the Project started construction in September and October 2007, respectively, after consideration of the CDM (see section B.5 for details) and are scheduled to start operation in August Table A Timeline for the development of the proposed Project Stage Date 1 st Level 2 nd Level Consideration of CDM 25/08/ /09/2007 Start date of the project (construction approval) 02/09/ /10/2007 Expected operation Start 01/08/ /08/2008 The Project will use state-of-the-art but recognised technology in electricity generation and transmission. The essential equipment used in the Project is produced domestically and the Project Developer is experienced in handling and operating this kind of equipment. B.3 Estimated amount of emission reductions over the chosen crediting period: Year Estimation of annual emission reductions in tonnes of CO 2 e 01/03/2009~01/03/ ,821 01/03/2010~01/03/ ,821 01/03/2011~01/03/ ,821

6 CDM Executive Board Version 2, page 6 01/03/2012~01/03/ ,821 01/03/2013~01/03/ ,821 01/03/2014~01/03/ ,821 01/03/2015~01/03/ ,821 Total estimated reductions (tonnes of CO 2 e) 306,747 Total number of crediting years 7 Annual average of the estimated reductions over the crediting period (tco 2 e) 43,821 Refer to section B.6.3 for further details on the quantification of greenhouse gas emission reductions associated with the Project. SECTION C. Duration of the project activity / Crediting period: C.1. Duration of the Bundle C.1.1. Starting date of the Bundle: 02/09/2007 (construction approval of the 1 st level Linjiang Hydro Power Project) 2. 05/10/ (construction approval of the 2 nd level Linjiang Hydro Power Project ) C.1.2. Expected operational lifetime of the project activity: 20 years C.2. Choice of crediting period and related information: C.2.1. Renewable crediting period: C Starting date of the first crediting period: The crediting period will start on 01/03/2009, or on the date of registration of the CDM project activity, whichever is later. B Length of the first crediting period: 7 years C.2.2. Fixed crediting period: 2 See construction approval issued by Nanning Hehai Engineering & Supervision Company 3 See construction approval issued by Nanning Hehai Engineering & Supervision Company

7 CDM Executive Board Version 2, page 7 C Starting date: Not applicable C Length: Not applicable SECTION D. Application of a monitoring methodology: Due to all project activities in the bundle belong to the same type, same category and technology/measure, so a common monitoring plan was utilized for the bundle with the submission of one monitoring report as follows: This section details the steps taken to monitor the GHG emissions reductions on a regular basis from the Project. The Monitoring set up for this project has been developed to ensure that from the start, the project is well organised in terms of the collection and archiving of complete and reliable data. 1. Monitoring Organisation Roles and responsibilities will be defined for the relevant staff involved in CDM monitoring, and a CDM Manager will be appointed. The CDM Manager will have the overall responsibility for the monitoring system on this project. The CDM Manager will manage the process of training new staff, ensuring trained staff perform the monitoring duties and that where trained monitoring staff are absent, the integrity of the monitoring system is maintained by other trained staff. Monitoring staff involved in the CDM project will receive some relevant training from either EcoSecurities, a contracted consultant, or the relevant Chinese authority (further details of the training procedures are provided in Annex 4). Records of trained monitoring staff will be retained by the Project Developer. A formal set of monitoring procedures will be identified prior to the start of the crediting period. A description of these procedures is provided in Annex 4. They include issues such as training, data quality assurance and control, and relevant back-up procedures. It is worth noting that in most cases, those procedures identified will be based on existing on-site practises. 2. Monitoring equipment and installation Given that the emission factor is calculated ex-ante, and referring to the Monitoring Methodology AMS.I.D, the only data to be monitored is net electricity supplied to the grid by the Project (detailed in B.7.1). Electricity meter(s) will be used to obtain the amount of electricity effectively supplied to the grid by both power plants. The meter(s), used to obtain what is known as an Electricity Transaction Note (or similar

8 CDM Executive Board Version 2, page 8 statement defining power supplied to the grid), will be the meter(s) of primary concern for this hydropower project. In the event of erroneous meter readings (where there are either data gaps, or data outliers present), data can be cross-checked against other invoices, bills, power generation statements, or other meters. Records of the meter(s) (type, make, model and calibration documentation) will be retained in the quality control system. Electricity meter(s) should meet the relevant standards at the time of installation. Records of the meter(s) (type, make, model and calibration documentation) will be retained in the quality control system. 3. Data recording procedure, management and archiving In accordance with Chinese practise, the Project Developer and the grid company will take a meter reading on a monthly basis. This number is confirmed in the form of an Electricity Transaction Note (ETN); whereby both parties sign a statement indicating that they agree with the recorded value. This ETN will be checked with against the power generation at the site. At the end of each month the monitoring data will be filed electronically. The electronic files will have print-out and electronic back-up. The Project Developer will keep electricity sale and purchase invoices. All written documentation such as maps, drawings, the Environmental Impact Assessment (EIA) and the Feasibility Study Report should be stored and should be available to the verifier so that the reliability of the information may be checked. All the data shall be kept until two years after the end of the crediting period, or the last issuance of CERs, whichever occurs later. For details of the operational and management structure used for the monitoring of the project activity, please see Annex Quality Assurance and Quality Control The quality of data generated by this Project will be maintained through the development of an overarching monitoring system. This system may include procedures used to double check data, for staff training, meter calibration, accreditation of the facility completing calibration, and the adherence to the relevant standards. Some other complementary procedures are further outlined in Annex 4.