Aldersgate College, Solano, Nueva VizcayaInstructionalModules in GS-MPA 270-Project
Development Management & Planning
Module 2 - The Project Cycle
Professor: Romeo M. Bicad, Ph.D
Preq. Skill :
Level : MPA 1
Allotted Time : Ten (10) Hours
Overview
This course module is concerned with the Project Cycle . It contains a step-by-step
explanation about a particular project. It also includes the breakdown of roles and
responsibilities for parties associated with each step in the project cycle.
Objectives
Upon completion of this module, you should be able to:
1. Define project cycle.
2. Understand the step-by-step explanation about a particular project.
3. Know the roles and responsibilities for parties associated with each step in the project
cycle.
Pretest
Answer the following questions based on your own opinion or personal view.
1. What is a project cycle?
2. What are the roles and responsibilities for parties associated with each step in the project cycle?
Learning Focus: (you may refer to the corresponding pdf file or ppt. presentations in the syllabus)
CDM Project Cycle.
A. Project Design Document preparation
CDM Project Design Document (PDD) prepared by project developer (approx. USD10,000 to
30,000).
PDD format available on UNFCCC CDM website.
Working language of the CDM Executive Board is English →PDD must submit in English.
Project Design Document preparation
Contents of a PDD:
General description of project activity.
Application of a baseline & monitoring methodology.
Duration of project activity/crediting period.
Environmental impacts.
Stakeholders’ comments.
Annexes:
Annex 1: Contact info on participants in project.
Annex 2: Info regarding public funding.
Annex 3: Baseline information.
Annex 4: Monitoring plan.
Project Design Document development
Critical elements in a CDM project design (PDD):
Selection of an applicable, approved baseline methodology:
Assessment & demonstration of Additionality:
Most critical issue for project acceptance.
Project will be refused if Additionality is not proven.
B. Host country approval
The DNA of a party involved in a proposed CDM project shall issue a statement including
the following:
1. The party has ratified Kyoto Protocol.
2. Approval of voluntary participation in CDM project.
3. In case of host country DNA, a statement that proposed CDM project
contributes to Sustainable Development.
Project developer is responsible for obtaining the Letter Approval from DNA.
C. Project validation
Project developer hires a Designated Operational Entity (DOE) for Project Validation
(approx. USD10,000 to USD13,000).
Required documents for validation:
PDD.
Summary of comments by local stakeholders and how comments were collected.
Documentation on the environmental impact assessment of the project.
DNA’s Letter of Approval.
DOE will make publicly available comments on project from stakeholders including
NGOs: 1 month.
If DOE satisfied with all documents, DOE will submit a Validation Report to CDM EB.
If project is approved by EB, it can then be submitted for Registration.
D. Registration
Is the formal acceptance of the EB of a validated project as a CDM activity.
A party involved in the project or three members of the EB can request a Project
Review, hence delay Registration.
Registration fees/Share of Proceeds:
10 US cents per CER for first 15,000 tCO2e for which issuance is requested in a given
calendar year.
20 US cents per CER for any amount in excess of 15,000 tCO2e with a cap of
USD350,000.
E. Implementation & Monitoring
Project monitoring plan is part of the PDD.
Monitoring involves collection & archiving of all relevant data during the crediting
period.
Data used for measuring emission reductions achieved by the project (ex-post basis).
Example of monitoring plan for a Photovoltaic kits to light up rural households :
F. Project verification& certification
Conducted by a DOE based on a Monitoring Report may cost in the range of US$10,000
to US$20,000 for the initial one.
Verification is a periodic review of ex post measurement of GHG emissions reductions in
the project in the verified period.
DOE will:
Conduct on-site inspections.
Make publically available the verification report.
Issue a certification report which constitutes a request for issuance to the EB of CERs
equal to verified reductions.
G. Issuance of carbon credits
Issuance is final 15 days after submission of Request for Issuance unless one party or 3
members of the EB request review.
A letter will be provided by project developer on how CERs will be distributed.
EB will instruct the CDM Registry to issue the specified quantity of CERs and deduct 2%
of the total CERs as levy for the Adaptation Fund.
CDM Project Cycle:
Projects can be implemented in three different models:
Learning Activities
Case Study: Analyze the following cases.
Case 1 - The Valleys Energy Project in UK
Case 2 - Managing the Project Cycle for Time, Cost and Quality: Lessons from World
Bank Experience
Educational Tour: Visit actual project implementation. Make a narrative report based on
your actual observation and experiences in relation to the subject taken
and include necessary documentations.