Clean Development Mechanism Projects utilizing Carbon Credits

Africa Carbon Forum, Nairobi, March 2010

Radhika Bharat, Senior Investment Officer, Private Sector Infrastructure Development

The 15MW Sahanivotry Small Hydroelectric Power Project, a catalyst for Power Sector in Madagascar
Madagascar Project Cost EUR 14 mn ADB loan EUR 6 mn ADB roles Project Structuring Long-term Lender Benefits Independent power project (IPP) Expand the supply for electricity Reduce generation cost Long-term socio economic benefits

Project: Sahanivotry Small Hydropower (15 MW) Country : Madagascar Annual Electricity Production Grid Displacement Factor 80,000 MWh 0.496 tCO2e/KWh 39,680 tCO2 9 /tCO2e

Annual CO2Reduction Price of Carbon Number of year to benefit from carbon trade 5 Start of Operation 2008 198,400 Total CO2Reduction tCO2 Estimation Total CER generated 1,785,600 EUR

The 9MW Buseruka Small Hydroelectric Power Project, a catalyst for Power Sector in Uganda
Project costs Project Cost USD 26 mn ADB loan USD 9 mn ADB roles Project Structuring Long-term Lender Benefits Independent power project (IPP) Connection of rural population Reduce generation cost Long-term socio economic benefits

Project: Buseruka Small Hydropower (9 MW) Country : Uganda Annual Electricity Production Grid Displacement Factor Annual CO2Reduction Price of Carbon Number of year to benefit from carbon trade Start of Operation Total CO2Reduction Estimation Total CER generated 47,304 MWh 0.496 tCO2e/K 23,463 tCO2 9 /tCO2e 3 2011 70,388 tCO2 633,495 EUR

CDM ProjectStatus Project Design Document (PDD)

Project

PIN

Validation

CER

Sahanivotry Buseruka

Done Done

underprocessing

2010 2011

Done Underreview willbesubmittedJune

TechnicalAssistance Project AfDB

OtherDonor

Guidancetothesponsor AustriaKomunal Creditprovidedgrant topreparetheCarbon Preparationofrequest Creditdocumentation Sahanivotry fortechnicalassistance DenmarkUNIT EnergyStyrelsen Supporttothesponsor providedgrantto onfollowupsofCarbon preparetheCarbon documentprocessing Creditdocumentation Buseruka

Lake Turkana Wind Farm in Marsabit District, near Lake Turkana in north-western part of Kenya
Project Cost EUR 300 mn ADB loan EUR 100 mn

ADB roles Mandated Lead Arranger for financing from DFIs and Commercial sources Project Structuring Long-term Lender Notable features: Project is 300MW, with a capacity factor of 55% Project will supply up to 20% of Kenyas total installed power Kenyan- Dutch project developer, JDA signed with UK based firm Carbon credits to be shared between the Government and project sponsor.

THANK YOU
h.cheikhrouhou@afdb.org y.arfaoui@afdb.org r.bharat@afdb.org