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GOLD STANDARD MONITORING REPORT

Version 2.0, date 14/12/2017

Project: Bac Lieu Province Wind Power Plant

UNFCCC Ref: 7250

GS ID: GS1890

Monitoring period: 01/04/2016 – 30/06/2017 (both days included)

1. General description

This Monitoring Report has been developed for the purpose of the Gold Standard verification

exercise for greenhouse gas emission reductions achieved by the project activity titled “Bac Lieu

Province Wind Power Plant” as per relevant requirements for the period 01/04/2016 – 30/06/2017.

The project activity includes the construction of a near-shore wind power farm on the area of 540ha

along the East Dam (De Dong) of Bac Lieu city, Bac Lieu province, Vietnam with total capacity

of 99.2 MW and gross annual electricity output of 335.2 GWh. The project involves the installation

of 62 wind turbines at capacity of 1.6 MW each in two phases.

In the first phase, 10 wind turbines were installed on 80 ha area. The capacity and net electricity

output of Phase 1 is 16 MW and 55,355 MWh/year, respectively. Phase 2 includes the installation

of the remained 52 turbines with combined capacity of 83.2 MW and annual net output of 272,471

MWh.

Prior to the implementation of the project activity, electricity in Vietnam is generated mainly from

fossil fuel sources and is solely distributed to consumers via the unique national electricity grid.

The baseline scenario of the project activity is the same as the scenario existing prior to the start

of implementation of the project activity.

The project’s purpose is to exploit the wind resources in Bac Lieu province to produce and supply

electricity to the national grid under a Power Purchase Agreement (PPA) signed with Vietnam

Electricity (EVN).

The project reduces the emission of greenhouse gases (GHGs) by replacing electricity generated

from fossil fuel fired power plants with zero emissions electricity from a wind power plant. It is

expected that the power plant, when in full operation, will result in the reduction of 143,761 tCO2

per year and 1,006,328 tCO2 over the first crediting period.

The construction of Bac Lieu Province Wind Power Plant started in 2011. On 20/06/2013, the first

wind turbine of the project activity started to supply electricity to the national grid. By 29/09/2016,

the total of 62 wind turbines have been commissioned.

Bac Lieu Province Wind Power Plant was registered as CDM project on 13/09/2012 with the PDD

version 04 dated 21/08/2012 (http://cdm.unfccc.int/Projects/DB/BVQI1347365592.64). The

registration of the project by the Gold Standard was approved on 13/03/2014 with the project GS

ID 1890.

As the project started operation on 20/06/2013, the first monitoring period is chosen from

20/06/2013 to 31/03/2016 and the start date of the crediting period is changed from 01/01/2013 in

the registered PDD to 20/06/2013.

The second monitoring period has been conducted from 01/04/2016 to 30/06/2017.

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The implementation of the project is listed in Table 1.

Table 1: The list of key events of Bac Lieu Province Wind Power Plant

Date Key events

03/06/2011 Start date of the project activity

13/09/2012 Registration as CDM project

20/06/2013 Start of operation of the first turbine

29/9/2016 Start of operation of the last turbine

13/03/2014 Registration as GS project

20/06/2013 - 31/03/2016 First monitoring period

01/04/2016 - 30/06/2017 Second monitoring period

2. Calculation of emission reductions and GS credits

Monthwise emission reductions are calculated as follows1:

1 Refer to the ER calculation version 1, dated 07/05/2017 in the CDM monitoring report.

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Emission Reductions (Monitoring Period: 01/04/2016- 30/06/2017)

Period

Electricity

exported

(MWh)

Electricity

imported

(MWh)

Net electricity

(MWh)

Emission

Factor

(tCO2e/MWh)

Baseline

Emission

BEy

(tCO2e)

Project

Emission

PEy

(tCO2e)

Leakage

Ly

(tCO2e)

Emission

Reduction ER

(tCO2e)

From To A B C=A-B D E=C*D F G H=E-F-G

01/04/2016 30/04/2016 5,766.4 24.4 5,742.000 0.5751 3,302.220 0.000 0.000 3,302.220

01/05/2016 31/05/2016 5,542.7 44.6 5,498.100 0.5751 3,161.950 0.000 0.000 3,161.950

01/06/2016 30/06/2016 5,390 53.8 5,336.200 0.5751 3,068.840 0.000 0.000 3,068.840

01/07/2016 31/07/2016 7,054.4 55.7 6,998.700 0.5751 4,024.950 0.000 0.000 4,024.950

01/08/2016 31/08/2016 18,547.398 17.21 18,530.188 0.5751 10,656.710 0.000 0.000 10,656.710

01/09/2016 30/09/2016 12,840.75 18.689 12,822.061 0.5751 7,373.960 0.000 0.000 7,373.960

01/10/2016 31/10/2016 10,196.829 42.559 10,154.270 0.5751 5,839.720 0.000 0.000 5,839.720

01/11/2016 30/11/2016 12,781.603 53.189 12,728.414 0.5751 7,320.110 0.000 0.000 7,320.110

01/12/2016 31/12/2016 18,466.421 42.071 18,424.350 0.5751 10,595.840 0.000 0.000 10,595.840

Sub-total Year 2016

(01/04/2016-31/12/2016) 96,586.50 351.92 96,234.28 0.5751

55,344.30

0.000 0.000 55,344.30

01/01/2017 31/01/2017 35,376.656 27.473 35,349.183 0.5751 20,329.310 0.000 0.000 20,329.310

01/02/2017 28/02/2017 24,668.139 21.926 24,646.213 0.5751 14,174.030 0.000 0.000 14,174.030

01/03/2017 31/03/2017 21,130.887 33.26 21,097.627 0.5751 12,133.240 0.000 0.000 12,133.240

01/04/2017 30/04/2017 13,895.057 50.684 13,844.373 0.5751 7,961.890 0.000 0.000 7,961.890

1/05/2017 31/05/2017 4,944.888 99.076 4,845.812 0.5751 2,786.820 0.000 0.000 2,786.820

01/06/2017 30/06/2017 11,142.459

29.452

11,113.007

0.5751 6,391.090

0.000 0.000 6,391.090

Sub-total Year 2017

(01/01/2017 to 30/06/2017) 111,158.09 261.87 110,896.22 0.5751

63,776.38

0.000 0.000 63,776.38

TOTAL 207,744.587 614.089 207,130.498 0.5751 119,120.680 0.000 0.000 119,120

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The calculation of GS credits is provided below:

UNFCCC Serial No (from 01/04/2016 - 30/06/2017)

From To

CERs

issued

(CERs)

Adaption

fund (2%)

(CERs)

Net (CERs)

CDM Serial Range 21,240,620 21,359,739 119,120 2,382.40 116,737

CERs to be GS labelled

From To Net - Issued

(CERs)

01/04/2016 30/06/2017 116,737

Serial number for GS labelling

From To

Net

(CERs)

GS Serial Range 21,243,003 21,359,739 116,737

Serial No breakdown for vintage for monitoring period

Issued

(CERs)

Adaptation

fund (2%)

(CERs)

Net

(CERs) From To

Year 2016

(01/04/2016 to 31/12/2016) 55,344 1,107 54,237 21,243,003 21,297,239

Year 2017

(01/01/2017 to 31/12/2017) 63,776 1,276 62,500 21,297,240 21,359,739

119,120 116,737

3. Parameters monitored according to the monitoring plan

According to the requirements of the Gold Standard, the project activity must be assessed against

a matrix of sustainable development indicators. The contribution of the proposed project activity

to the sustainable development of the country is based on indicators of local/global environmental

sustainability, social sustainability & development and economic & technological development.

The following indicators have been monitored according to the monitoring plan.

a. Monitoring procedures for “Air quality”

Indicator No. 1 Air quality

Monitored parameter: Dust and pollutant gases in accordance to QCVN 19:2009

column B and QCVN 26:2010

Description: The air pollution mainly comes from the construction;

however, proper mitigation measures are employed to

mitigate the potential impacts. During the project

operation, air examinations have been conducted to

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ensure that the air quality is up to the relevant host country

standard.

Source of data to be used: Air quality examination results

Measurement procedures (if any): The air quality examination is conducted yearly in form

of the environmental sampling.

Monitoring frequency: Yearly

QA/QC procedures to be applied: Cross-checking with the environmental reports

Any comment: N/A

Result:

During the monitoring period (01/04/2016 – 30/06/2017) the project owner has cooperated with

the Environment Monitoring Centre of Bac Lieu provincial Department of Natural Resources and

Environment to perform the periodic air quality examinations at the project site.

The results reveal that the air quality during the monitoring period is up to the relevant standard.

Table 2: Air examination results for 2016

Date of monitoring: 09/09/2016

Location: Transformer station

No. Indicator Results Vietnam Standards

1 Total Suspended Dust (TSP) (mg/m3) 03 Not regulated

2 CO (mg/m3) 10 40

3 NO2 (mg/m3) Not detected 10

4 SO2 (mg/m3) Not detected 10

5 HCl (mg/m3) Not detected 7.5

6 Noise (dBA) 55 70 (*)

* Applying Vietnam Standards QCVN 26:2010/BTNMT for normal areas.

Conclusion:

The air quality at the project site is within the limit as per QCVN 19:2009 column B and QCVN

26:2010, even several times lower. This shows that air environment in the project area is good and

not polluted thanks to application of relevant mitigation measures proposed in the project’s

Environmental Impact Assessment (EIA) Report.

b, Monitoring procedures for “Water quality”

Indicator No. 2 Water quality

Monitored parameter: Water quality parameters in accordance to QCVN

14:2008/BTNMT

Description: The water quality is chiefly affected during the

construction of the project; however, appropriate

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mitigation measures have been applied. During the

monitoring period, examinations have been conducted to

ensure that the water quality is up to relevant standards.

Source of data to be used: Water quality examination results and site observation

Measurement procedures (if any): The water quality examination is conducted yearly in

form of the environmental sampling

Monitoring frequency: Yearly

QA/QC procedures to be applied: Cross-checking with the environmental reports and site

observation

Any comment: N/A

Result:

To minimize the impacts during the operation period, proper mitigation measures are employed

including:

• Waste water from daily life of the workers and solid waste and waste liquid from the

construction and operation of the plant is collected and treated to meet environmental

standards so as not to pollute the water;

• Waste is collected, construction material is strictly managed, and modern equipment shall

be used to avoid disturbing the water.

According to the examination conducted by the Environment Monitoring Centre of Bac Lieu

provincial Department of Natural Resources and Environment contracted by the Project Owner,

the water quality during the monitoring period is up to standard.

Table 5: Water examination results for 2016

Date of monitoring: 09-16/09/2016

Location: Daily wastewater pit

No. Indicator Results Vietnam Standards

1 pH 7.17 5-9

2 Total suspended substances (TSS)

(mg/l)

08 100

3 BOD5 (mg/l) 21.0 50

4 Nitrate (mg/l) 1.49 50

5 Phosphate (in P) (mg/l) 2.89 10

6 Ammonia (in N) (mg/l) 2.01 10

7 Sulfur (in H2S) (mg/l) 0.004 4.0

8 Total surface active agent (mg/l) 0.05 10

9 Total dissolved solids (mg/l) 926 1000

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10 Total sterols content (mg/l) 0.4 20

11 Total Coliforms (MPN/100ml) 3.1x102 5000

Conclusion:

The water quality at the project site is within Vietnam standard QCVN 14:2008/BTNMT and there

is no contamination of public resources found during the monitoring period.

c. Monitoring procedures for “Biodiversity”

Indicator No. 3 Biodiversity

Monitored parameter: Cultivation of plants

Description: The project owner plants trees to restore the green cover,

create nice scenery and improve the ecosystem

Source of data to be used: Documentation and on-site observation

Measurement procedures (if any): The documentation and on-site observation shall reflect

landscaping activities which have been done by the

project owner.

Monitoring frequency: Once per monitoring period

QA/QC procedures to be applied: Documentation, interview, on-site observation

Any comment: N/A

Result:

In order to restore the green cover and the landscape of the land that was temporarily occupied by

the project items during construction phase, in the first monitoring period, the project owner has

contracted local Forest Protection Department of Bac Lieu province for afforestation of 6.2 ha of

land in Vinh Lac hamlet, Vinh Thinh commune, Hoa Binh district, Bac Lieu province with

Rhizophora mucronata trees at the density of 4,000 trees/ha. A total budget of 92,683,800 VNDs

has been allocated for this activity2.

In the second monitoring period, the green cover and the landscape of the project continues to be

maintained. The picture below describes the project scenery.

2 Contract No. 36/HDUT/CCKL-CL for implementation of afforestation for Bac Lieu province wind power plant

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Figure 1: Project scenery

Conclusion:

The project proponent has cultivated plants to maintain the biodiversity within the project site.

d. Monitoring procedures for “Quality of employment”

Indicator No. 4 Quality of employment

Monitored parameter: Training records; functions of jobs created, labor

conditions of the project activity, occupation health

management, in-place safeguards and living standards of

the plant staff.

Description: - The staffs are trained on technical aspects relating to the

operation of the plant. They receive professional

certificates.

- Jobs help local people improve their living standard by

receiving the payment made by the project owner and

reduce social evils in the region.

- Labour condition of the project activity is secured to

safeguard effective management of occupation health.

- The project owner cooperates with local authorities and

medical centres to conduct health checkup for the plant’s

staff; insurance policies regarding health care for the plant

staff.

Source of data to be used: Plant operational records like training certificates, health

care certificates, payroll.

Measurement procedures (if any): The training certificates shall reflect the improved quality

of employment.

The health care insurance shall reflect the occupation

health management for the plant staff.

Monitoring frequency: Once per monitoring period

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QA/QC procedures to be applied: Cross-checking with training certificates and interview

Any comment: N/A

Result:

During the second monitoring period, Cong Ly Construction-Trading-Tourism Co., Ltd has

cooperated with Ho Chi Minh City Electric Power College (HEPC), the Southern Power

Corporation, to organize a training course on “Management, operation and maintenance of 110kV

transmission line for Cong Ly Construction-Trading-Tourism Co., Ltd.” from 08/05/2017 to

09/06/2017.

By the end of the second monitoring period, the project proponent has employed 111 people for

the Bac Lieu office of Cong Ly Construction-Trading-Tourism Co., Ltd.

The project proponent creates good labor condition for the plant staffs. Regarding the labor

conditions of the project activity, 100% of the employees are provided with labor contract that

specifies terms, working conditions, rights and responsibilities of the employer and the employee

in relation to the work.

In terms of occupation health management, all the employees are provided with medical insurance

and regular health-check. During the monitoring period from 01/04/2016 to 30/06/2017, health

checks have been performed from 05/10/2016 to 07/10/2016 by Thanh Vu Medic General

Hospital. The medical insurance is paid monthly to the public insurance authority of Bac Lieu

province for all the employees. With the medical insurance, the employees can have medical

services anytime at the registered medical facilities whenever they do not feel good for living and

working.

Others in place safeguards and living standard of the plant staff include: social insurance and

unemployment insurance that are paid monthly to the public insurance authority of Bac Lieu

province (public agency). The project also provides living accommodation and appropriate

entertainment activities (sports, etc.) for the staff who live far and wish to stay at the plant.

Being employed by the project proponent, all plant employees are paid monthly at the minimum

wage of 5 million VND3 (approximately 250 USD) on average, which is much higher than the

average monthly income per capita of 150 USD in Viet Nam4.

Conclusion:

Bac Lieu province wind power project has significantly improved the quality of employment in

the local community.

e. Monitoring procedures for “Access to affordable and clean energy services”

Indicator No.5 Access to affordable and clean energy services

Monitored parameter: Electricity generation from the wind power plant

Description: The project reduces dependence on expensive fossil fuel

(e.g. coal, diesel) and creates more affordable clean

3 According to the company payroll 4 http://www.vietnamonline.com/az/average-salary.html

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energy by generating wind power to supply to the national

grid.

Source of data to be used: Project site

Measurement procedures (if any): Checking power meters and electricity protocol for

figures on electricity generation by the wind power plant

Monitoring frequency: Once per monitoring period

QA/QC procedures to be applied: Cross-checking with electricity sale invoice

Any comment: N/A

Result:

The project activity involves the construction and operation of Bac Lieu province wind power

plant with installed capacity of 99.2 MW in two phases. Phase 1 includes the installation and

operation of 10 wind turbines and Phase 2 the remained 52 turbines. The first wind turbine started

commercial operation on 20/06/2013. On 29 September 2016, all of the 62 wind turbines of the

plant have been commissioned. In the second monitoring period from 01/04/2016 – 30/06/2017,

the project has generated the net value of 207,130.498 MWh electricity, which is exported to the

national grid under the Power Purchase Agreement signed with the Vietnam Electricity (EVN).

Conclusion:

The electricity generated by the project activity is clean power and affordable. In the absence of

the project, local people had limited access to electric power. When the project is put into

operation, a transmission line is built from which the electricity is supplied to the local households.

The local people can purchase electricity from the power company (EVN) at price as stipulated by

the government.

f. Monitoring procedures for “Quantitative employment and income generation”

Indicator No.6 Quantitative employment and income generation

Monitored parameter: Employment creation/income generation

Description: A number of skilled and unskilled personnel are directly

employed by the project proponent. They are paid

accordingly as per payrolls and the signed labor contract.

Source of data to be used: Plant operational records like payrolls, labor contracts, list

of employees.

Measurement procedures (if any): Evaluation of payrolls, labor contracts, social and

unemployment insurance

Monitoring frequency: Once per monitoring period

QA/QC procedures to be applied: Cross-checking with operational records like payrolls,

labor contracts, etc.

Any comment: N/A

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Result:

The project proponent has employed totally 111 people in the Bac Lieu office of Cong Ly

Construction-Trading-Tourism Co., Ltd for management and operation of the Bac Lieu Province

Wind Power Plant.

The project proponent creates good labor condition for the plant staffs. The employees are

provided with social insurance and regular health-check.

Being employed by the project proponent, all plant employees are paid monthly at the minimum

wage of 5 million VND5 (approximately 250 USD) on average, which is much higher than the

average monthly income per capita of 150 USD in Viet Nam6.

The project also contributes to the local development by providing financial aids for organizing

social activities in the locality (sports, cultural events, etc.), supporting the poor people by

providing rice and New Year gifts and contributing to charity funds (Fund for the Poor, Fund for

Social Security and Wellbeing)7. The total contributed financial support to the locality during the

monitoring period was 1,630,000,000 VND.

The pictures taken on these activities are provided below:

5 According to the company payroll 6 http://www.vietnamonline.com/az/average-salary.html 7 List of support budget for Bac Lieu provincial locality

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Figure 2: Project contribution to local development

Conclusion:

The project positively impacts the quantitative employment and income generation for the local

community at the project site.

g. Implementation of continuous input/grievance mechanism

Continuous Input /

Grievance

Method Chosen

Expression Process

Book

Five comment books are made available in the following locations:

- on the project site;

- at Project Owner (PO) head office;

- at the Consultant’s office; and

- at the Office of the communal People’s Committee of three

affected communes (Hiep Thanh commune, Vinh Trach Dong

commune and Nha Mat ward)

The contact person, telephone number, email address and contact of

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regional GS office are provided on the comment books so that local

stakeholders can provide feedback on the project.

Telephone access The telephone numbers of the contact persons of the project’s

Management Board and of the GS consultancy company are made

available for local stakeholders to provide feedback on the project.

Internet/email

access

The email addresses of the contact persons of the project’s Management

Board and of the GS consultancy company are made available for local

stakeholders to provide feedback on the project.

Nominated

Independent

Mediator (optional)

Not applied

The cover and contents of the comment book is provided below:

Figure 3: Project’s Comment Book

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Result:

All of the methods chosen for grievance mechanism and continuous input for the project have been

implemented.

Five comment books are maintained a the project site, at PO head office, at the Consultant’s office,

and at the Office of the communal People’s Committee of Hiep Thanh commune, Vinh Trach

Dong commune and Nha Mat ward. During the monitoring period from 01/04/2016 to 30/06/2017,

there was no comment from the stakeholders on the comment books.

The telephone numbers of the project’s Management Board and of the GS consultancy company

and the email addresses of the PO and of the GS consultancy company have also provided to the

stakeholders for feedback on the project. During the monitoring period from 01/04/2016 to

30/06/2017, there was no comment from the stakeholders received on telephone or via email. This

can be confirmed by interviewing with relevant stakeholders during the site visit.

Conclusion:

The continuous input/ grievance mechanism has been in place for the stakeholders to provide

feedback on the project. There was no comment collected on the comment books, via phone calls

or emails during the monitoring period.

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4. Overall conclusion

It can suitably be established that the project has complied with the Monitoring Plan laid out in the

Gold Standard passport, version 2.1 dated 14/10/2013 and hence the net amount of 116,737 CERs

are eligible for labeling under the Gold Standard.