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JCM Project Design Document Form A. Project description A.1. Title of the JCM project Energy Saving for Air-Conditioning at Shopping Mall with High Efficiency Centrifugal Chiller A.2. General description of project and applied technologies and/or measures The proposed JCM project aims to improve electricity consumption by introducing an advanced and efficient centrifugal chiller system to the shopping mall in Surabaya, the Republic of Indonesia. The project is to replace existing 5 central cooling systems with high efficient centrifugal chiller in the shopping mall as well as to replace existing 8 cooling towers with efficient Japanese models. These existing chillers were replaced with one high-efficiency centrifugal chiller of 569 USRt and four high-efficiency centrifugal chiller of 966 USRt by the project. The key technology is the new type economizer. Improvement of vapor-liquid separation performance and significant downsizing are realized by use of newly developed economizer. A.3. Location of project, including coordinates Country The Republic of Indonesia Region/State/Province etc.: Jawa Timur City/Town/Community etc: Surabaya Latitude, longitude S 7 26'27.4" and E 112 73'95.9" A.4. Name of project participants The Republic of Indonesia PT.PAKUWON JATI Tbk Japan NTT FACILITIES, INC. A.5. Duration Starting date of project operation 01/12/2016 Expected operational lifetime of project 15 years A.6. Contribution from developed countries The proposed JCM Project was partially supported by the Ministry of Environment, Japan 1

through the financing programme for JCM model projects, which provided financial support up to 50% of initial investment for the projects in order to acquire JCM credits. The technology of advanced and efficient centrifugal chiller system is introduced in the proposed project by the Japanese project participant. The Japanese project participant transfers the technology through conducting the training on operation and maintenance of newly installed equipment through trial operation. B. Application of an approved methodology(ies) B.1. Selection of methodology(ies) Selected approved methodology No. Version number JCM_ID_AM002 ver02.0 B.2. Explanation of how the project meets eligibility criteria of the approved methodology Eligibility criteria Criterion 1 Criterion 2 Descriptions specified in the methodology Project chiller is a centrifugal chiller with a capacity of less than 1,250 USRt. * 1 USRt = 3.52 kw COP for project chiller i calculated under the standardizing temperature conditions* (COPPJ,tc,i) is more than 6.0. COPPJ,tc,i is a recalculation of COP of project chiller i (COPPJ,i) adjusting temperature conditions from the project specific condition to the standardizing conditions. COPPJ,i is derived in specifications prepared for the quotation or factory acceptance test data at the time of shipment by manufacturer. [Equation to calculate COPPJ,tc,i] COP PJ,tc,i = COP PJ,i [(T cooling-out,i T chilled-out,i +TD chilled + TD cooling) (37 7 + TD chilled + TD cooling)] COP PJ,tc,i : COP of project chiller i calculated under the standardizing temperature conditions* [-] COP PJ,i : COP of project chiller i under the project specific conditions [-] T cooling-out,i : Output cooling water temperature of project chiller i set under the project specific condition [degree Celsius] T chilled-out,i : Output chilled water temperature of project chiller i set under the project specific condition [degree Celsius] TD cooling : Temperature difference between condensing Project information The capacities of the chillers introduced in the project are 569USRt and 996 USRt. The COP for project chiller (COPPJ,tc,i) which are introduced to the proposed project are 6.14 and 6.11. [Calculation result] <996 USRt > 5.99 x (36.89 6.07 + 1.5 + 1.5) / (37.0 7 + 1.5 + 1.5) = 6.1388 6.14 <569 USRt > 5.98 x (36.85 6.12 + 1.5 + 1.5) / (37.0 7 + 1.5 + 1.5) = 6.1123 6.11 2

Criterion 3 Criterion 4 Criterion 5 temperature of refrigerant and output cooling water temperature 1.5 degree Celsius set as a default value [degree Celsius] TD chilled : Temperature difference between evaporating temperature of refrigerant and output chilled water temperature, 1.5 degree Celsius set as a default value [degree Celsius] *The standardizing temperature conditions to calculate COP PJ,tc,i Chilled water: output 7 degree Celsius input 12 degree Celsius Cooling water: output 37 degree Celsius input 32 degree Celsius Periodical check is planned more than four (4) times annually. Ozone Depletion Potential (ODP) of the refrigerant used for project chiller is zero. Plan for not releasing refrigerant used for project chiller is prepared. In the case of replacing the existing chiller with the project chiller, refrigerant used for the existing chiller is not released to the air. Periodical check is planned four times annually. Letter of consent on the conductance of periodical check four times annually for the project chiller was prepared by participants from both sides. As for the existing chiller, R123 of the HCFC is used for a refrigerant. Refrigerant for the project chiller is HFC R134a, whose ODP is zero. Letter of consent on not releasing refrigerant used for project chiller and existing chillers were prepared by participants from both sides. C. Calculation of emission reductions C.1. All emission sources and their associated greenhouse gases relevant to the JCM project Reference emissions Emission sources GHG type Power consumption by reference chiller CO2 Project emissions Emission sources GHG type Power consumption by project chiller CO2 C.2. Figure of all emission sources and monitoring points relevant to the JCM project 3

C.3. Estimated emissions reductions in each year Year Estimated Reference Estimated Project Estimated Emission emissions (tco 2e) Emissions (tco 2e) Reductions (tco 2e) 2016 955.0 921.8 33 2017 11,460.1 11,062.0 398 2018 11,460.1 11,062.0 398 2019 11,460.1 11,062.0 398 2020 11,460.1 11,062.0 398 Total (tco 2e) 46,795.4 45,169.8 1,625 D. Environmental impact assessment Legal requirement of environmental impact assessment for the proposed project No E. Local stakeholder consultation E.1. Solicitation of comments from local stakeholders 4

The project participant identified the following stakeholders, accommodating the suggestions from Indonesian JCM Secretariat. [Direct stakeholders] Staff member of PT Pakuwon Jati Tbk [Indirect stakeholders] Officer of Institute Technology of 10 November and Surabaya city government (BPLH) The project participant conducted a face-to-face interview with Indonesia JCM Secretariat and local stakeholder consultation with identified stakeholders (see table below). Comments received from the participants of the local stakeholder consultation are summarized in the following section E.2. below. The project received no negative comments from the participants of the local stakeholder consultation, and, also, it was confirmed that none of the received comments requires further mitigation action from the project side. # date Venue Method Attendance 1 October 31, 2016 10:00 ~ 10:25 2 November 8, 2016 11:00 ~ 12:00 Meeting Room of Indonesia JCM Secretariat (GKKBP 4th Floor) Meeting Room in Tunjungan Plaza- 3 7th Floor, Sappire Face-to-face interview Local stakeholder consultation Indonesia JCM Secretariat Shopping mall director Indonesia JCM Secretariat Local institution Local government E.2. Summary of comments received and their consideration Stakeholders Comments received Consideration of comments received Shopping mall director He would like to compare electricity consumption between BPLH s data and NTTF s data after the installation of new Chillers is finished. The data will be sent by the project participants to the shopping mall director. Local government She appreciates and is thankful, No action is necessary. (Surabaya government) and she does not make any official particular comment on this project. Local institution official He appreciates that how this kind of project contributes to the He was informed that: 1) the project will be monitored by creation of low carbon NTTF; 2) the possibility to communities. He asks about: 1) the project after apply for a JCM project depends on the condition of 5

installation of chillers is finished ; 2) whether it is possible for a university/institution to apply for a JCM project to implement an energy saving HVAC system; and 3) how their activity to be informed to the public. each potential case; and 3) the shopping mall director will coordinate with Surabaya government. F. References Reference lists to support descriptions in the PDD, if any. Annex Revision history of PDD Version Date Contents revised 01.0 14/03/2017 First edition 6