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CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)


Version 02 - in effect as of: 1 July 2004)

CONTENTS

A. General description of project activity

B. Application of a baseline methodology

C. Duration of the project activity / Crediting period

D. Application of a monitoring methodology and plan

E. Estimation of GHG emissions by sources

F. Environmental impacts

G. Stakeholders’ comments

Annexes

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

SECTION A. General description of project activity

A.1 Title of the project activity:


Title: Cattle Waste Management, Landhi Cattle Colony, Karachi, Pakistan
Version: GSPDD-LCC V1
Date: 7th January 2007
A.2. Description of the project activity:

Please include in the description


- the purpose of the project activity
- the view of the project participants of the contribution of the project activity to sustainable development
(max. one page).

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD:


Sustainable Development Screen:
In order for the project to be eligible for the Gold Standard the project activity must be assessed against a
matrix of sustainable development indicators.

The purpose of this project is to turn an environmental nightmare into a viable waste to energy enterprise.
In summary, the project aims to capture animal waste, harness and utilise the methane that it at present
vents to the atmosphere, generate power from the methane in an energy-constrained market, produce
organic fertiliser in a net fertiliser-import situation, create employment, reduce pollution of the marine
environment, and reduce fresh water consumption.

The project will be based in Landhi cattle colony some 25 kilometres east of the central business district
of Karachi, bordered by the Thar desert. Together with neighbouring Bin Quasim and Korangi towns, the
colony, an area of 750 acres (3 square kilometres), is home to 400,000 cattle in a dedicated cattle colony
area providing milk and meat to the City of Karachi1. The cattle are owned by individual farmers, and
housed on hard feedlots typically of about 200 cattle each around Landhi and Bin Qasim townships. The
only existing waste disposal provision is an inadequately sized and unused open digestion tank, resulting
in the dumping of approximately 8000 tons of raw cattle waste per day into local environs. Much of the
waste is dumped in monsoon drains, and eventually debouches on the coast. Because this practice takes
place under anaerobic conditions, it releases methane into the atmosphere, akin to the emissions from an
anaerobic lagoon. The project will capture and combust this methane to create cleaner renewable energy.
The current waste disposal practice also creates unsanitary conditions for the human and bovine
populations, and pollutes water2.

An analysis of the project proponents’ expectations against Gold Standard critical development indicators
indicators is at Annex 3. The proponents believe the project has considerable potential development
benefits.

The project will convert methane from the cattle waste into around 25 MW of electricity and produce
1,600 tonnes of organic fertiliser per day. The energy generated will add 2% capacity to the constrained
effective capacity of the Karachi Electric Supply Company, improving access to clean energy and
reliability of service, and contributing to the country’s goal of 10% renewable energy in the final
consumption mix by 2015. Once operational the project will save foreign exchange expenditure on fuel
and fertiliser.

Most of the local population is poor. The project will bring sustainable developmental benefits in
creating a large number of labouring jobs for the unskilled migrant labour that flows regularly into katchi
abadi in the area. Semi-skilled jobs will be created making and printing bags for the dried waste. This
activity may particularly benefit women working in local workshops and factories. Skilled and
management jobs will be created to operate, maintain and manage the plant. There will be trickle-down
benefits to the predominantly poor local population in the generally improved economy and environment.

Additional environmental benefits will include savings in the amount of water at present used to flush
dung into the drains. The City District Government will use the liquid waste from the digester to create

1
Data supplied by the Dr Abdul Hafeez Shaikh, Senior Veterinary Officer, In charge Government Veterinary Hospital, Landhi Cattle Colony
Karachi-34
2
See photo essay at Annex for illustration of the impacts of present practice
and fertigate public green spaces in the local and other townships. The digester can also beneficially use
animal residue from the nearby abattoir, which at present saturates the adjacent ground, like the dung is
offensive smelling and attracts clouds of flies. Removal of the heavy burden of organic waste will
facilitate re-establishment of natural biota in the terrestrial and marine environments.

Investment is coming from an international source, and some equipment required is not available in
Pakistan. However, it is easy to source and service. Sustainability issues will not therefore arise. As the
first project of its kind in Pakistan, the project will build capacity in both public institutions and the
private sector. There is considerable commercial scale replication potential elsewhere in the country3.

Detailed analysis of sustainable benefits is contained in the Sustainable Development Assessment Matrix
at Annex 3.

A.3. Project participants:

Name of Party involved (*) Private and/or public entity(ies) Kindly indicate if
((host) indicates a host Party) project participants (*) the Party involved wishes to be
(as applicable) considered as project participant
(Yes/No)

Government of Pakistan (Host) No


Designated National Authority,
Ministry of Environment,
Government of Pakistan
Empower Consultants Limited, Yes
New Zealand, Project Developer
National Engineering Yes
Corporation, Karachi, Project
development facilitator
City District Government Yes
Karachi, Local Authority
Marubeni Corporation Japan Yes
Investor

Please list project participants and provide contact information in Annex 1.

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

The project is located in Bin Qasim township, 25 km East of the Karachi CBD.

Relevant jurisdictions are:


o Government of Sindh: Investment Cell, which commended to proposed project to the City
District Government Investment Office
o Government of Sindh Environmental Protection Agency. An Initial Environmental Examination
has been conducted, and EPA has issued a No Objection Certificate, reproduced at annex.
o City District Government, Karachi (CDGK). CDGK has granted access to Government land for
a small scale demonstration that will provide data for the large scale project now planned, and is
interested in equity participation in the large venture in a similar grant of access to government
owned waste land indicated on the satellite photograph below.

Fig.1: Location of the Project Site

3
See Annex 3 for Gold Standard Sustainable Development Assessment Matrix
Bin Qasim Township

Karachi City

A.4.1.1. Host Party(ies):

Government of the Islamic Republic of Pakistan, Designated National Authority, Ministry of


Environment, CDA Block-IV, Sector G-6, Civic Centre, Islamabad 44000, Pakistan.

A.4.1.2. Region/State/Province etc.:

Province of Sindh

A.4.1.3. City/Town/Community etc:

Landhi and Bin Qasim Townships, Karachi Municipality

A.4.1.4. Detail of physical location, including information allowing the


unique identification of this project activity (maximum one page):

The project site is unoccupied desert land belonging to the City District Government of Karachi, in Bin
Qasim Townships. The GPS co-ordinates of the Landhi demonstration site are N 24 49.8.12’, E 067
15.9.12’.

Karachi is located on the coast of the Arabian Sea. The city enjoys mild winters and warm summers.
Summer temperatures (the end of April to the end of August) are approximately 30 to 35 degrees Celsius.
Winter temperatrures (November to March) range from 12-25 degrees Celsius.

The area is water-poor. Due to the city's proximity to the sea, humidity levels usually remain high
throughout the year. However, precipitiation is virtually zero, typically less than 10 mm, for nine months
of the year. At its highest, at this fringe of the monsoon in July, rainfall reaches only 260mm, with half
that level in August, and a quarter in September4. The Indus River delta braids the flat coastal area.
Unusual in river deltas, the soils of the Indus are composed of infertile clays, with very little siltation. The
Tarbela and Chashma reservoirs remove 74% of the Indus River water before it reaches the Kotri, the last
barrage before the delta. Construction of these barrages, dams and link canals has reduced the flow of

4
http://www.world66.com/asia/southasia/pakistan/karachi/lib/climate
fresh water in the project area below the Kotri Barrage to “practically zero discharge,5” especially because
any rain and snowmelt occurs at the height of the agriculture season, and is withdrawn upstream leaving
hardly any fresh water to reach the coast. This converts the coastal delta into an effective clay soil
anaerobic lagoon, exacerbated by the flatness of the inland area.

In the Landhi-Korangi area in particular, industrial and cattle waste have inflicted massive environmental
damage on the local water ways, terrestrial and marine environments. The coastal environment is over-
nutrified and visible damage is occurring to the once dense mangroves that fringed the creeks of the delta,
as well as the local fisheries from both the cattle colony and the adjacent Korangi industrial zone waste.
This can be seen in the photo essay at annex, and in the brown stained areas of the coast where creeks
debouche, visible in the satellite photograph below.
Fig.2: Impacts in the Business as Usual Scenario
– Marine Pollution

The high biological oxygen demand that kills aquatic and marine life also creates anaerobic
decomposition conditions that result in high methane gas emissions. It is the capturing and utilisation of
these emissions that forms the basis of this proposed project.

A.4.2. Category(ies) of project activity:

Please use the list of categories of project activities and of registered CDM project activities by category
available on the UNFCCC CDM web site, please specify the category(ies) of project activities into which
this project activity falls. If no suitable category(ies) of project activities can be identified, please suggest
a new category(ies) descriptor and its definition, being guided by relevant information on the UNFCCC
CDM web site.

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD:


Project activities eligible under the Gold Standard
For the project activity to be eligible for the Gold Standard, it must fall into one of the types of project
activities listed in Appendix A of the Gold Standard Project Developer’s Manual and comply with the
appropriate requirements.

This activity is classed under Sectoral Scope 13, (waste handling and disposal). Sectoral Scope 1, Energy
Industries (Renewable - / non-renewable sources) was also considered but rejected as less flexible in the
end use of the energy that will be produced, and less conservative in calculation of CERs.

5
A. Inam et al, “Natural and Man-made Stresses on the Stability of the Indus Deltaic Eco Region” Institute of Oceanography,
www.megadelta.ecnu.edu.cn/main/upload/Asifpaper1.pdf
Under Gold Standard eligibility criteria, the project falls under the category of A.1.1.2, Biogas. The
methane captured through the controlled biogasification of animal wastes that is surplus to plant energy
requirements will be flared only at pilot stage when the quantity is too small for grid electricity
connection, and will be used for power generation in the full scale project.

A.4.3. Technology to be employed by the project activity:

This section should include a description of how environmentally safe and sound technology and know
how to be used is transferred to the Host Party.

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD:


Further guidance on the elaboration of technology transfer and knowledge innovation is provided in
section 3.3.5 of the Gold Standard Project Developer Manual.

The project activity will employ proven technologies and materials necessary for the construction of a
new biogas digester and power generation plant designed ultimately to connect to the national power grid.
Though household scale biodigesters are reasonably well known in Pakistan, there is no experience with
commercial scale waste-to-electricity. A pilot stage is planned during which technical training can be
undertaken on a manageable scale, offering the opportunity to build capacity in local people who will
become operators and managers.

The system will include the following key components:


• Mechanised dung transport from the farms to the processor
• Pumping and mixing equipment to premix raw dung with water
• Central digester unit to digest wastes and collect biogas
• Waste extraction unit to remove dung slurry from the digester and separate solid waste from
liquid waste
• Fertiliser unit to dry, package and prepare organic fertiliser for sale in 50 kg sacks
• Waste water processor to treat and reuse or discharge fully treated liquid waste from the digester

A schematic showing a typical plant design and layout is shown in the Stakeholder Presentations at
Annex 3G36. The initial stage involves the mixing of raw dung with fresh water to form a slurry of
approximately 9% solids. After mixing, this slurry is pumped into the digester cell to be anaerobically
digested. The biogas generated in the anaerobic digester is extracted and stored in the gas chamber after
hydrogen sulphide gas has been filtered out. The gas is then dried and will be supplied to a power
generation plant connected to and feeding power into the Karachi Electric Supply Company (KESC)
network. After the anaerobic digestion process is complete, the slurry will be pumped out and decanted to
separate solids and liquids. The solids will be dried on a fluidised bed, using waste heat from the power
generation plant. The organic fertiliser will be bagged, branded and sold, either to an export market or
locally within Pakistan. The nutrient-rich liquid component will be aerobically treated and a portion
recycled back into the digester vessel. The remainder will be either provided to the Karachi City District
Government for use as a liquid fertiliser for use on public green areas, or concentrated, again using waste
heat from the power generation plant, and sold as a concentrated liquid fertiliser.

Under current conditions, raw cattle dung and urine is dumped in bulk into the local drains. The drains
are an intertwined, slow moving and in some places stagnant system leading eventually to the coast. The
monsoon drains act as an anaerobic lagoon in that they are open and deep constituting a physical as well
as an environmental hazard, and are not aerated or turbulent. In addition, or arrival at the coast the
biological load sediments out and continues to decompose and release greenhouse gasses in the anaerobic
conditions created. Aside from the emissions, the massive resultant biological oxygen demand creates
significant environmental damage to local plant and animal life in and around the estuary. The proposed

6
Haase GmbH, http://www.haase-energietechnik.de/en
process of capturing, treating and recycling the dung into energy and organic fertiliser will prevent this
waste stream from entering the environment. Where process waste streams are recycled back into the
environment, such as liquid residues from the digester, it will be treated to a point where it can be
released without harm.

Pakistan has the necessary skills to own, operate and manage the various components of this activity;
however nowhere in Pakistan have the multiple facets of a dedicated waste to energy project been put
together on a commercial scale. In order to overcome potential barriers to project development through
lack of capacity, a pilot stage will serve as a functioning test case for the upskilling of new operations
staff. Project management staff for commercial fertiliser and power production facilities can be recruited
within Pakistan as such skills sets are already available.

In terms of technology, power generation and mass transfer / packaging technologies are available ‘off
the shelf’ and are readily available. This is normal in this industry and there is nothing unusual or
uncommon about the importation of specialist equipment such as gas turbines, gas filters or other process
monitoring and control systems in either the fertiliser or power generation markets.

Thus, equipment will need to be imported that is not manufactured in Pakistan, and training and capacity
building on this new equipment is also required. However this poses no new project risk. Wherever
possible, operations staff will be first trained in the pilot stage to build confidence and familiarity early in
the project. This will be built on further as the project proceeds.
A basic technical flowchart of the proposed project activity is as below:

Figure 3 Technical Flowchart of the Proposed Project Activity

Raw dung is
collected Electricity Organic fertiliser Liquid fertiliser
Gas is fed into a .Packed, branded and Tankered to public green areas for
power generation sold irrigation or released into waste
plant water network

Hydrogen sulphide The organic Aerobic treatment


gas is filtered out fertiliser is packed stage prior to release
Dung is mixed and the biogas is into 50 kg sacks or recycling
with water to dried
form a slurry

Biogas is
extracted from The solid matter The liquid residue (liquid
the digester (organic fertiliser) is fertiliser) is separated
dewatered out.
The slurry is
digested
anaeorobically
in a standard
sludge digester
cells The digested slurry is decanted to separate solid and
liquid streams
Anaerobic digester and process
A series of multiple, standard sludge process digester cells is planned for this activity. There are three
major steps - hydrolysis, acidogenesis and methanogenesis in the anaerobic digester process. The organic
material is broken down to lower molecular weight compounds, such as peptides, amino acids and fatty
acids by the enzymolysis of the extracellular enzyme secreted by microorganisms, in a process known as
hydrolysis. The peptides, amino acids and fatty acids are converted into organic acids, alcohols, carbon
dioxide, hydrogen and ammonia, in a process known as acidogenesis. The organic acids, alcohols, carbon
dioxide and ammonia are decomposed by methanogenic bacteria to methane and carbon dioxide during
the methanogenesis process. This process releases a gas mixture of methane and carbon dioxide termed
biogas.
The slurry mix stays in the digester cell for 25-30 days in which the removal rate of COD reaches 80% to
90% and the COD value of the outflows will be below 2000 mg/L after anaerobic digester, and the
removal rate of BOD5 reaches 75% to 85% and the BOD5 value of the digester outflows will be below
1300 mg/L with a pH value between 6.5 and 7.5.

Aerobic treatment
The dung slurry discharged from the digester cells is separated into solid and liquid streams in a decanter.
The solid stream is on processed, dewatered, bagged and branded for sale as organic fertilizer. The liquid
stream is then further treated in an aerobic treatment reactor. The aerobic environment in the reactor is
maintained by mechanical aeration after the liquid enters into the aerobic reactor. The organisms in the
waste water are finally decomposed to inorganic matter such as H2O, CO2, NO3-, SO42- , PO43- by
extended aeration and through the function of aerobic bacteria. The pathogen count and the nitrogen
concentration in the liquid stream can be reduced in the aerobic treatment stage, thus the potential
emission of CH4 and N2O in the later stages can also be reduced.
A complete-mix aeration reactor is planned for Landhi, which is composed of aeration area, diversion
area, settlement area and reflux area. The reactor is a round pool with the infall in the centre and the
outfall on the edge of the pool. This kind of reactor is compactly arranged with a short flow path, which
ensures the timely return of the fresh sludge to aeration area and is quite suitable for this kind of treatment
technology.

The COD value of the waste water is below 400 mg/L and the BOD5 value of the waste water is below
200 mg/L after aerobic digester. The ammonia nitrogen reaches 650 mg/L and the temperature of the
effluent is between 20 deg C and 32 deg C.

Storage lagoon
A short term storage lagoon is planned, but only for the holding of liquids discharged from the aerobic
digester and prior to tanker transport to public green areas, or commercial gardens, where there is a stated
need. The City District Government of Karachi has expressed a desire to utilize the liquid stream for
irrigation and fertigation of public spaces.

Recovery and utilization of biogas


The desulphurised biogas from anaerobic digester is stored in a gas chamber and provided to the
generator on demand. A pressure release system will vent and flare any build up of gas, thus preventing
any over pressure situations. The heat recovered by the heat recovery system from the cooling water and
the exhaust gas of the power generation system will be used as the heat source of the anaerobic digester as
well as providing heat to dry the fertilizer prior to bagging. The electricity from the biogas generator will
be fed directly into the KESC local high voltage network.

Technology Transfer and Knowledge Innovation


None of this technology is revolutionary or difficult. There will be “North to South” technology transfer
through the project in the establishment of Pakistan’s first commercial waste to electricity project.
Though biomethanation is well known in the subcontinent on a household scale, biomass waste to
electricity is unknown on a commercial scale in Pakistan and hence there is no familiarity with large scale
waste treatment technology. The technology is not new, but its application in Pakistan is innovative. The
scale of this project is unusually large, even for European and other applications.

There is a steady in-migration of poor youth from rural Sindh seeking work in Landhi. Many find
employment as cattle farm hands. The familiarity of some of this labour force with the basics of
biogasification on a household scale will be useful as it informs their understanding of handling the dung
in preparation for collection, and the impacts of organic fertiliser use on farm soils and outputs. There
will thus be a small “rural to urban” element in transfer of technical knowledge. These individuals will
also serve as a conduit for “urban to rural” flow of information back to their home villages about the
qualities of the organic fertiliser the project will produce.
A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse
gas (GHGs) by sources are to be reduced by the proposed CDM project activity, including why the
emission reductions would not occur in the absence of the proposed project activity, taking into
account national and/or sectoral policies and circumstances:

Please explain briefly how anthropogenic greenhouse gas (GHG) emission reductions are to be achieved
(detail to be provided in section B) and provide the estimate of anticipated total reductions in tons of CO2
equivalent as determined in section E. Max. length one page.

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD:


The project needs to comply with the requirements of sections 3.3.1, 3.3.2 and 3.3.4 of the Gold Standard
Project Developer Manual. Please refer to the UNFCCC’s “Tool for the demonstration and assessment of
additionality” (see http://cdm.unfccc.int/EB/Meetings/016/eb16repan1.pdf) as this must be used for
evaluating projects under the Gold Standard.
Projects that answer this question affirmatively are not eligible for the Gold Standard.

How the GHGs emission by sources are reduced by the proposed CDM project activity?
Specifically, this project activity seeks to reduce the emission of methane, CH4. Methane is produced in
the baseline scenario through the uncontrolled dumping of huge quantities of animal wastes into open
drains, in anaerobic conditions. The project activity will divert the wastes into covered anaerobic
digesters where the methane produced is captured and combusted. Initially the methane will be flared,
and once the gas volumes and consistency is stabilized and predictable, a secondary investment stage will
utilize the biogas produced by the digesters to generate electricity for sale to the Karachi Electricity
Supply Corporation.
Anthropogenic GHGs, specifically methane and nitrous oxide, are released into the atmosphere via
decomposition of animal manure and a nitrification/denitrification process associated with volatilization
of nitrogen. Landhi and Bin Qasim have no waste treatment facilities or processes in place, other than
informal drying of dung for less than 5% of the total. Thus in the business-as-usual baseline, the biogas
generated during the uncontrolled rotting and decomposition process is not collected or utilized. The
project will introduce a manure management procedure and simultaneously provide an income stream to
farmers to incentivise their participation in the project. The new waste management procedure will result
in the mitigation of anthropogenic GHG emissions by controlling the decomposition process and
collecting and combusting the biogas. Compared to the present situation of uncontrolled dumping and
decomposition in open monsoon drains, this process of dung collection, controlled decomposition and
combustion of methane will significantly reduce green house gas emissions by an estimated 884,333
tonnes per year.
The present situation of discharging wastes into the open drains running through Landhi and Bin Qasim
has created what is in practice a large anaerobic lagoon system. The terrain is virtually flat. The drainage
is slow moving and in some places completely stagnant. The flow characteristics are laminar with little
turbulence or mixing, and the entire organic load is ultimately deposited into the estuary on the coast
below the agricultural zones where anaerobic decomposition continues to completion. The Sindh
Government Environmental Protection Agency notes that the drains and waterways in the area have an
extremely high BOD/COD and the Korangi stream running through Landhi is noted as the most polluted
in the country7. Thus for this situation, the drains are taken as acting as an anaerobic lagoon.
This GHG abatement would not occur without the project because there is no realistic alternative disposal
method available to the farmers, and no financial or regulatory drivers for change. Present practice is the
only option that carries no direct financial cost or risk to the farmer.
Though dumping waste in the monsoon drains is recognised as environmentally damaging, the practice is
tolerated by the City District Government authorities because of the lack of realistic alternatives. Either
dumping in an existing but inadequate digester, or transporting to a dump are hypothetically possible
solutions, but would add to farmer costs and road congestion, and would merely move the environmental
problem from one place to another.
The legal and regulatory framework is now highly conducive to the project activities, since it is
government policy to facilitate utilisation of indigenous renewable energy, and to encourage domestic
substitution for imported petroleum products and inorganic fertiliser. Costs of both commodities have
doubled over the past two years, and impose a heavy forex burden on the country. However, investment
of the project has remained difficult. Until the availability of CER mechanisms, despite repeated efforts of
the proponents to obtain financial assistance to invest and implement a waste-to-energy project, no
investor was forthcoming.
The project meets Gold Standard requirements under this heading. It has not been previously announced,
though the consultation process led at times to press coverage of political expressions of wishful thinking
about development. Methodology and outcomes are reported in Annex 3. The other Gold Standard
requirements, additionality and conservatism are covered in detail in Section B.

Baseline (Anaerobic lagoon)


Based on the cost benefit analysis of different manure treatment technologies, the baseline of the
proposed project is the anaerobic lagoon. This scenario is selected because the only legally available
alternative to open dumping in the multitude of monsoon drains that are effectively an anaerobic lagoon,
is dumping in an existing small storage tank on Government land that is unmanned and non-operational.
However the biological oxygen demand of the massive amounts of dung washed into the surrounding
monsoon drains is so high that the waste exists in anaerobic conditions because there is no natural current
except in the rare times of rainfall8. In still water the sludge settles to the bottom of the drains and
decomposes in the absence of oxygen, thus decomposition is anaerobic.
Typically the uncontrolled dumping and decomposition of dung has high GHG emissions, particularly,
CH4. If the proposed project was not implemented, all GHG generated in the anaerobic conditions created
in the nullahs, open drains and in the coastal waters would continue to be released to the atmosphere. In
addition, in the absence of effective enforcement of environmental law, or robust investment in large
scale waste water treatment, the current practice of using the open drains as an anaerobic lagoon is more
cost effective than the proposed project and has been calculated in the baseline calculations in section D
to result in very large uncontrolled releases of CH4. The proposed project will effectively reduce the
emission of CH4. Detailed information of emission reductions is described in section E.
CDM project activity
After mixing the raw dung into a slurry mixture of manure and water, the mix is pumped into the
anaerobic digester cell. The cell is operated as a continuous flow process, with daily input volume
equaling the volume removed each day. The biogas generated in the anaerobic digester is extracted,
filtered to remove H2S content and fed into a power generation plant that will provide power directly in to
the local Karachi city power network. A retention time of 25-30 days is expected in the digester cell, after
which the slurry is pumped out and through a decanter, to separate solid and liquid components. The
liquid residue from the digester cell is digested aerobically via aeration in the aerobic treatment reactor. It
is then transferred into a temporary storage lagoon before some is recycled back to the start of the sludge

7
Government of Pakistan State of the Environment Report, 2005 (draft), 102-104
8
For nine months of the year, rainfall in Karachi is typically under 20mm. In July it may average 260 mm,, is less than 200mm in August, and
less than 100mm in September. There is rarely any run-off except in typhoon conditions.
digestion process, or used for irrigation water in public green spaces by the Karachi City District
Government Authorities. The final process for fully processed and treated surplus water is release into
local drains, where it is expected to have a lower pathogen and BOD count than the surrounding waters.
The system as a whole can very effectively reduce GHG emissions, firstly by capturing and digesting
waste materials in a controlled and efficient environment, and second by combusting methane in a power
production process to produce large quantities of electricity and convert CH4 into CO2. With CERs, the
project will convert a massive social and environmental problem into a financially viable business with
significant economic and social benefits. Compared to the present situation of uncontrolled dumping and
decomposition in open drains, this process of dung collection, controlled decomposition and combustion
of methane will reduce green house gas emissions by an estimated 884,333 tonnes per year.

A.4.4.1. Estimated amount of emission reductions over the chosen crediting period:

Please indicate the chosen crediting period and provide the total estimation of emission reductions as well
as annual estimates for the chosen crediting period in the following table.

Years Annual estimation of emission reductions


In tonnes of CO2 e
2008 884,333
2009 884,333
2010 884,333
2011 884,333
2012 884,333
2013 884,333
2014 884,333
2015 884,333
2016 884,333
2017 884,333

Total emission reductions (tons of CO2 e) 8,843,330


Total number of crediting years 10
Annual average over the crediting period of 884,333
estimated reductions (tons of CO2 e)

A.4.5. Public funding of the project activity:

In case public funding from Parties included in Annex I is involved, please provide in Annex 2
information on sources of public funding for the project activity from Parties included in Annex I which
shall provide an affirmation that such funding does not result in a diversion of official development
assistance and is separate from and is not counted towards the financial obligations of those Parties.

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD:


ODA Additionality Screen:
In order to meet the requirements of the Gold Standard, the project activity cannot use Official
Development Assistance (ODA) funding as specified in Section 3.3.3 of the Gold Standard Project
Developer’s Manual. Please show that the project meets these requirements as explained and set out in the
Developer’s Manual.

The Gold Standard PDD has to also include a clear and transparent finance plan so the validator can
assess whether the project financing includes ODA. This should be presented as a separate document,
and can remain in commercial confidence.

Public funding is thus far limited to a small contribution in kind. The City District Government of
Karachi has granted free access for a period of ten years to four acres of disused Government land for the
development of a pilot project in Landhi. Title to the land remains with the City District Government (see
MOU in Annex 2). This land is for the demonstration project only, and will assist in public education,
technology transfer, and the training of local employees in management and operation of the biodigester
unit. The City District Government has indicated its desire to facilitate the full scale project in the same
manner. Government land on the fringes of the Thar desert adjacent to the site has been earmarked for the
full scale project, but not yet formally granted.

There has been no ODA investment or finance funding. This project concept pre-dates the Kyoto
Protocol, Pakistan’s accession and its establishment of a DNA. From identification in 1998 until early
2005, donor assistance from a number of sources was sought to leverage investment, but was
unsuccessful9. This attempt was abandoned when Pakistan deposited its Instrument of Accession. Project
development and capacity building activities for a demonstration project that will use approximately 1 %
of the total available cattle waste was partially funded by NZAID. The Asian Development Bank
commissioned a pre-feasibility study under its PREGA programme10. A full history of the project
development and stakeholder consultation is included in Annex 3, to clarify the project’s position with
respect to Gold Standard Section 3.3.3, ODA Additionality Requirements.

While a detailed finance plan has not yet been confirmed, suffice to say that only commercial entities are
considering investment and no government or ODA funding is included whatsoever. However the project
proponents recognise that a detailed and transparent financial plan is required, and confirm that this will
be made available prior to the PDD being prepared for final submission.

SECTION B. Application of a baseline methodology

Where project participants wish to propose a new baseline methodology, please complete the form for
“Proposed New Methodology: Baseline” (CDM-NMB) in accordance with procedures for submission and
consideration of proposed new methodologies (see Part III of these Guidelines).

B.1. Title and reference of the approved baseline methodology applied to the project activity:

Please refer to the UNFCCC CDM web site for the title and reference list as well as the details of
approved baseline methodologies2. Please note that the table “Baseline Information” contained in Annex
3 is to be prepared in parallel to completing the remainder of this section.

This application adopts:


“Approved consolidated baseline methodology for GHG emission reductions from manure management
systems” ACM00010, version 01, Sectoral Scope 13, 29 September 2006

B.1.1. Justification of the choice of the methodology and why it is applicable to the project
activity:

(B2 in the Guidelines Version 06.1)

Please justify the choice of methodology by showing that the proposed project activity meets the
applicability conditions under which the methodology is applicable.

ACM0010 is a methodology designed to intercept unused agricultural wastes and prevent them from
being dumped in an uncontrolled and environmentally damaging manner, as is the case in Landhi. This
project involves the collection and utilization of waste animal dung for the production of energy. Up to

9
Some politically motivated press statements were made by officials after consultations during that time that a
project was planned, but were unauthorised by the proponents, and incorrect
10
Program for Renewable Energy, Energy Efficiency and Greenhouse Gas Abatement
8,000 tons of raw dung are dumped in the Landhi environs every day without utilization or any form of
treatment or processing. ACM00010 version 01 is applicable in this project for the following reasons:

• The livestock populations that are the source of the feedstock are managed under confined
conditions
• The project will prevent discharge of manure into natural water resources
• The drains that act as the anaerobic digester that provides the baseline are deep, designed as
monsoon drains. The annual average ambient air temperature at the location of the baseline and
the project exceeds 5oC
• The waste is never removed from the drainage system. The baseline scenario analyses a situation
where the waste stagnates in drains, or in typhoon conditions is flooded on to the coast.
However, as the heavier particles of waste sink, conditions are still anaerobic. Water quality
studies indicate that there is heavy organic pollution of the coastal waters
• There is no leakage from the baseline storage tank (drains) into soil or ground water. The drains
are mostly concrete lined.

B.2. Description of how the methodology is applied in the context of the project activity:
Please explain the basic assumptions of the baseline methodology in the context of the project
activity and show that the key methodological steps are followed in determining the baseline
scenario. Provide the key information and data used to determine the baseline scenario (variables,
parameters, data sources etc.) in table form.

Table B.1 Variables and Parameters


Variable Parameter Data Source
Feedstock Number of cattle is 400,000 Government Veterinarian
Quantity of dung averages 18 -20 Government Veterinarian
kgs per animal per day
Amount of dung that decays Pakistan Council of Scientific and Industrial Research
anaerobically in the baseline is
taken as 60%
Climate Ambient air temperature ranges http://www.world66.com/asia/southasia/pakistan/karachi/lib/climate
from 12-35
Precipitation is negligible 9 months Government Meteorological data,
of the year, and is only 260 http://www.world66.com/asia/southasia/pakistan/karachi/lib/climate
mm/month at maximum
Residence Holding time in the drains and Direct measurement by PCSIR
period estuary

The Guidelines for completion of the PDD Version 06.1 calls for justification of the methodology
showing how the project meets the applicability criteria. ACM00010 was selected because the project
activity involves managing animal manure (dung) and utilisation of this resource for energy generation.

The project will conform to the selected methodology in:


o Drawing its feedstock from livestock populations managed under confined conditions – some
400,000 cattle in a 3 km2 area
o By collecting this feedstock, preventing its discharge into the monsoon drains
o Planning for a biodigester which will produce anaerobic treatment conditions but capture all
emissions
o Location in an area where the ambient air temperature is consistently above 5oC. Temperatures in
Karachi range from 12.1 to 34.85 (Celcius)11.
o In the baseline case, the retention of manure waste is perpetual due to lack of rainfall to flush the
drains and waterways12, and accumulation in the estuary waters. It is never removed.
o The project digester will be non-permeable and will not leak waste into the soil or ground water
o A monitoring regime is incorporated in the plant to verify critical parameters.

11
http://www.world66.com/asia/southasia/pakistan/karachi/lib/climate
12
ibid.
According to the CDM modalities and procedures in the Marrakesh Accords, there are three baseline
approaches provided in paragraph 48. The project participants should select the most reasonable approach
based on the characteristics of the project when determining the baseline scenario of a project. The
baseline approach adopted by this project activity is approach 48 b) “Emissions from a technology that
represents an economically attractive course of action, taking into account barriers to investment”.
According to the baseline methodology ACM0010, a list of possible baseline scenarios for manure
management should be first drawn up from 1996 Revised IPCC Guidelines (Chapter 4, Table 4.8) and the
IPCC Good Practice Guidance and Uncertainty Management (Chapter 4, Table 4.10 and 4.11). Then a
number of plausible scenarios should be identified from the list of possible options according to the
exclusion criteria such as environmental regulations and the internal policies of the company. Finally, a
project scenario and a most economically attractive baseline scenario remain based on the cost benefit
analysis is undertaken.
Step 1:List of possible baseline scenarios
In the first step a list of possible baseline scenarios for manure management is assessed. The following list
of alternative scenarios can be composed of a combination of several manure treatment stages. Each
alternative was chosen considering prevailing practices in the country, available technologies and
treatment efficiency.
1) Solid storage
Dung and urine are excreted daily in a stall. The solids (with or without litter) are collected and stored in
bulk for a long period (months) before disposal, with or without liquid runoff into a pit system.
2) Dry lot
In dry climates animals may be kept on unpaved feedlots where the manure is allowed to dry until it is
periodically removed. Upon removal the manure may be spread on fields.
3) Liquid/slurry
Dung and urine are collected and transported in liquid state to tanks for storage. Liquid may be stored for
a long time (months) until it is applied to fields. To facilitate handling water may be added.
4) Anaerobic lagoon
Anaerobic lagoon system is characterized by flush systems that use water to transport manure to lagoons,
or in the case of Landhi, into open public monsoon drains. The manure resides in the drains until it
eventually drains down to the coast. There the waste is deposited into coastal estuary areas below Landhi
where the sludge is again anaerobic and continues to decompose and release GHGs. In only one month of
the year in Landhi is there typically sufficient rainfall or run-off (July, 260 mm) to flush the waste out
from the open drains. Typically the water from a lagoon may be recycled as flush water or used to irrigate
and fertilize fields, but in the case of Landhi, which is far from the farms whence comes the cattle
feedstock, the water is dumped directly into the local environment and no attempt is made to recover the
waste or recycle waste or water to use for fertiliser and irrigation.
5) Pit storage under animal confinement stalls
Dung and urine may be stored below animal confinements in a pit before disposal. The length of storage
time varies, and for this analysis is divided into two categories: less than one month or greater than one
month.
6) Anaerobic digester—Aerobic treatment—Storage lagoon
The dung and urine in liquid/slurry are collected and anaerobically digested. CH4 generated in this
process may be burned, flared or vented. Aerobic treatment is to make the waste undergo forced aeration,
or treated in aerobic pond or wetland systems to provide nitrification and denitrification.
7) Deep litter
Cattle dung and urine are excreted on the stall floor. The accumulated waste is removed after a lengthy
period. The length of storage time varies, and the analysis is divided into two categories: shorter than one
month or in excess of one month.
8) Composting
Dung and urine are collected, stacked and regularly turned for forced aeration.
Step 2:Identification of plausible scenarios
In the second step, a number of plausible scenarios should be identified from the list of possible options
specified in step 1 above. In selecting the plausible scenarios, project participants should provide
convincing justification for the exclusion of animal waste management systems as potential baseline
scenarios. The exclusion criteria are determined by:
• Legal constraints;
• Historical practice of waste management in the country;
• Availability of waste treatment technology;
• Consideration of developments for manure management systems appropriate for the national conditions,
including technological innovations.

1) Solid storage
This system is not applicable for manure that has low solid content, such as the 18% identified in cattle
dung in Landhi. Due to washing and flushing systems of the barns, much of the raw cattle waste in this
project is significantly diluted to a very liquid form requiring pumping from the barn floors to the waste
treatment system. In addition, this system is inefficient at odour and pathogen control, hence the
exclusion of this potential baseline scenario can be justified. As the animals are confined on small
individual farmer hard feedlots of around 50x100 metres per 200 animals, space limitations pose a
practical barrier to this method.
2) Dry lot
This system is excluded because it is not suitable to the normal conditions of barns in Landhi and Bin
Qasim where paved pens are used. Space constraints are prohibitive.
3) Liquid/slurry
Since the amount of discharged manure is very large, it far exceeds local absorptive capacity. The colony
location is in desert, and there is no nearby pasture or agricultural land on which liquid slurry in such
volumes could be used. Storing the liquid manure in a tank to distribute it to the farmland from which
feed originates is not possible. This is partly due to the very large volumes of waste, but primarily due to
the fact that the majority of feed for the cattle comes from 200 km or more distant, carried in open-sided
trucks that are impractical for transporting any liquid or semi-liquid waste material. The modifications
required to suit the trucks to liquid transport would make them unsuitable for their primary purpose of
transporting grasses and dry matter in to the colony. Hence from the aspect of “Availability of waste
treatment technology”, this option faces significant technical and market behaviour barriers and is
excluded from the baseline scenario. If such a solution were practicable, the truck drivers would certainly
already have adopted it, since they generally return empty and unpaid for the trip back to the countryside.
4) Anaerobic lagoon, or discharge into public monsoon drains.
The anaerobic lagoon tank equivalent is inadequate to meet needs, and is in a state of disrepair such that
it is not used. Discharge into public drains represents the most common practice in Landhi at present
time, as it is the most economical, efficient, and reliable manure management system for the farmers. The
open monsoon drains effectively act as a slow moving anaerobic lagoon, leading to the discharge of
wastes into an estuary system on the coast, again under anaerobic conditions.

Should dumping wastes into the drains cease, the next most likely course of action would be the
construction of interim anaerobic lagoons, followed by discharge into the drains.

5) Pit storage below animal confinements


Landhi is a very large-scale livestock farm district and the quantity of manure produced is too large, and
the density of farms and animals is too high to implement pit storage structure under the barns, so this
scenario is excluded on the grounds that logistically it is not possible to store up to 8,000 tons of dung per
day in pits under farms, especially in light of the fact that there is very limited local use for it.
6) Anaerobic digester—Aerobic treatment—Storage lagoon/irrigation of dry lands
This system is the technology adopted by the proposed project activity.
7) Deep litter
The deep litter bedding mechanism is laborious and difficult to achieve an optimized composting process
with large numbers of animals in confined spaces; this is counter to achieving economies of scale
associated with large animal counts. The concentration of noxious gas in the litter can even achieve
concentrations sufficient to pose an asphyxiation hazard if it is disposed of inappropriately, and it is
particularly suitable for the survival and breeding of vermin and micro-organisms owing to its high
temperature and humidity. Accordingly this practice is excluded from consideration. It is not realistic for
a volume exceeding 8,000 tons of raw dung per day with very limited local use, nor are the negative
implications tenable.
8) Composting
Composting systems are not adapted to manure with large volumes of water, or moisture content. This
dry aerobic system can only be applied after solid separation stages of activated sludge. For this reason, it
is excluded from the list of plausible scenarios.
The list of possible scenarios has been reduced to one potential baseline and one predetermined project
scenario through the above analysis.
For the baseline, the drainage system acts as an anaerobic lagoon. Should a formal waste treatment
system be constructed, the constraints to adopting other treatment mechanisms are such that the only
viable alternative to dumping directly into the drains is the construction of anaerobic lagoons, with similar
results to the drains in terms of green house gas emissions.
One potential baseline: Anaerobic lagoon
Proposed project activity: Anaerobic digester

Step 3:Economic Comparison


In the third step, the plausible scenarios identified in step 2 are compared economically. For each
scenario, all costs and economic benefits attributable to the waste management scenario are illustrated in a
transparent and complete manner. Table B.1 illustrates the economic comparison results between
plausible baseline scenarios and the proposed project activity scenario.

Table B.2 Economic comparison


Baseline-1 Anaerobic decomposition via dumping in public drains (US$)
Costs and benefits 2008 2009 2010-2020
Initial investment costs 0 0 0
Operation costs 0 0 0
Net cash flow 0 0 0
NPV(discount rate=10%) 0
IRR (%) Undefined

CDM project activity without revenues from the sale of CERs (US$)
Costs and benefits 2008 2009 2010-2012 2013-2016
Initial investment costs 90,000,000
Operation costs 36,600,000
Cost saving from electricity
0 0
purchase
Salvage 0
Net cash flow 22,000,000
NPV (discount rate =10%) 51,494,000
IRR (%) 8.5%

Income streams for the project activity are derived from the sale of fertiliser and electricity. These are
tabulated as below:
Table B.3 Revenue from Operations without CERs
Electricity
Rs/USD = 60
Daily volume of methane consumed 170,797 m3CH4 per day
Energy value of methane 6,306,664.5 MJ per day
Net electrical output at 28% efficiency at generator 490,519 kWhrs per day
Average electrical output, at 80% of max 392 MWhrs per day
Sale price of power 3.0 Rs 0.050
Gross annual income from power generation 432,271,026 Rs 7,204,517 USD

Fixed costs ( station labour, 20 staff at an average of


USD30,000 pa) 36,000,000 Rs 600,000 USD
Purchase price of energy from fertiliser plant, per annum 523,662,375.6 Rs 8,727,706 USD
Upkeep and maintenance of the biogas digester unit 420,000,000.0 Rs 7,000,000 USD
Costs of dung collection and transport per annum 37,637,500.0 Rs 627,292 USD
General Power Station Overhead 300,000,000 Rs 5,000,000 USD
Depreciation per annum, straight line to zero over 10 years 180,000,000 Rs 3,000,000 USD
Gross annual expenses 1,497,299,876 Rs 24,954,998 USD

Net annual profit before tax -1,065,028,850 Rs -17,750,481 USD

The electricity generation is not profitable in its own right, however does cover the bulk of the project
operating costs and overheads. This is realistic, given the uncertainty of the domestic and international
fertiliser markets.

Fertiliser
Rs / USD = 60.0
Number of cows 400,000 USD
Dung/cow/day 18 kg
Daily production 7,200,000 kg
Dry weight @ 20% 1,440,000 kg
Sale price of fertiliser ex factory 5.0 Rs per kg 0.083
Income from the sale of gas to the power generation plant 523,662,376 8,727,706
Fertiliser sales per year, assuming all product is sold 2,628,000,000 Rs 43,800,000
Gross annual income 3,151,662,376 52,527,706

Workers 293 293


Average daily pay rate 1,205 Rs $ 20.09
Annual labour costs 128,918,920 Rs 2,148,649

No. Sacks/day (50 kg) 28,800


Cost of sack material at Rs 3 each, 31,536,000 Rs 525,600
Operating overhead allowed per sack @ 5 Rs 52,560,000 876,000
Depreciation on process equipment to zero over 10 years 60,000,000 Rs 1,000,000
Cost of dung at Rs 0.1 per kg 788,400,000 13,140,000
Annual operational budget, maintenance and upkeep 120,000,000 2,000,000
Gross annual expenses 1,181,414,920 Rs 19,690,249

Net annual profit before tax 1,970,247,456 Rs 32,837,458


Income from fertiliser is the primary supporting income stream for the non-CDM project activity.
Yielding a net income of US$32.8 million, this offsets the US$17.7 million loss from power generation to
result in a net income of US$15 million pa.
With a capital cost of US$100 million and a discount rate of 10%, the project has an NPV of US$34
million and an IRR of 5.1%, excluding income from CER’s. Given the uncertainty and risk associated
with the project, this is not a viable investment and will result in the status quo (anaerobic dumping in the
drains) being a more attractive option.
For the only plausible baseline scenario, being the continued dumping of waste into public drains
effectively using them as an anaerobic lagoon, there are no potential revenues. Fertiliser is not collected,
energy is not generated and water is not conserved. Indeed the reverse is the case as energy and water are
consumed in the dumping and washing away of wastes from the stalls. The revenues generated by the
project activity include revenues from cost savings due to avoided electricity purchases but do not include
revenues from the sale of CERs as in the baseline scenario all gases produced are released to atmosphere.
Therefore there are only negative flows in the baseline scenario so the IRR can not be calculated and the
economic comparison should be based on the net present value (NPV) parameters, which in this case is
zero if negative socio/environmental impacts are ignored. No negative socio-economic impacts have been
identified by proponents, politicians, environmentalists, other officials or stakeholders, and these impacts
are thus taken as zero for the project.
The results of the economic analysis for each scenario are shown in the following table:

Table B.4 NPV comparison (US$)


Anaerobic Drains CDM project activity
NPV
0 $34 million
(discount rate =10%)
As shown in the table B.2, the continuation of the status quo, being dumping of wastes into an unattended
government storage tank or into public drains is the most attractive course of action with a zero cash
outlay compared to the project activity, so it is considered to be the baseline scenario. The NPV of the
baseline scenario is zero, while the NPV for the project activity has a positive NPV, but a vastly higher
investment outlay and operational project risk compared to the baseline. Thus it is considered that even
though a positive NPV is demonstrated, the risk associated with the NPV shown is too high to be
commercially viable, thus it is determined that the project activity is additional compared to the chosen
baseline scenario from an economic perspective.

Step 4:Assessment of Barriers


The economic analysis in step 3 has demonstrated the additionality of the project activity from an
economic perspective, and an assessment of barriers will help to demonstrate additionality of the project
activity. In particular the proposed project activity has not been adopted due to the following factors:
1) Investment barriers: The anaerobic / aerobic manure treatment process is an advanced manure
management system, with relatively few examples of systems of this scale constructed worldwide
because of the high investment costs compared to other operations such as dumping of effluent or
small-scale composting as is the case in Pakistan. In addition the investment required to generate
electricity from biogas is high compared to the cost of thermal power (natural gas or coal), or hydro
electricity, which are the main sources of competing power in the Pakistani market. For these reasons
farmers prefer to continue to dump the dung; the status quo, while offering no returns, also imposes no
risk and no financial expense. The social and environmental cost however is massive. Internationally
Pakistan is regarded as a location of relatively high investment risk. It is generally held to feature
political and security risk, while offering a low return to investors. Hence without a source of revenue
additional to the energy and fertiliser, the investment is not attractive; investors are unwilling to
operate with the risk / return balance as it presently stands.
The potential to sell CERs is a primary factor influencing the interest in implementing an anaerobic
digester treatment system. The success of this project is very likely to influence other commercial
investments in Pakistan, and possibly regionally, once the commercial viability of the project is
established. As shown in table B.3, the IRR of the project activity is projected to be 5.1% without
CERs. However with revenues from the sale of CERs (assuming $10/t CO2e, crediting period of 10
years) a project IRR of 20.3% is anticipated.
2) Technological barriers: While Pakistan has some domestic experience in small scale biogas digester
technologies, it is inexperienced in large scale farm waste effluent treatment. Indeed, in many cities
there is no human waste treatment; thus Pakistan lacks practical experience in this sector. The
operations involved in anaerobic waste process technology include a detailed monitoring program to
maintain system performance levels. Power generation companies are short of professional experts
with specific experience in this technology and its maintenance, adding to a perception that the scale
of this project is beyond present domestic technical experience. This increases reluctance to invest as
discussed above. The anaerobic digester system defined in the project activity is therefore additional
compared to the baseline scenario from a technology perspective because the anaerobic
lagoon/dumping method presently employed requires no operating, management or maintenance
technology or input whatsoever.
3) Other barriers: The problem this project will ameliorate is multi-sectoral; it has relevance to the
finance, environment, energy and agriculture (fertiliser) sectors, and impinges also on social welfare
and health. Though the institutions exist to manage all these fields, the complexity of the problem has
defeated the resources and capacities of these agencies to take a co-ordinated approach to solving it.
Thus while there are no institutional barriers in theory, institutional incoherence has permitted a severe
problem to develop unchecked. However, all the relevant sectoral officials support the concept and
these roadblocks are simply removed by a solution to the investment barrier to the private sector.

Table B.5 Economic analysis of CDM project activity with revenues from the sale of CERs
CDM project activity with revenues from the sale of CERs (US$)
Costs and benefits 2008 2009 2010 2011-17
Initial investment costs 100
Operation costs 35 35 35 35
Tax 0 0 0 0
Revenues (net) from the sale of electricity and fertiliser 15 15 15 15
Revenues from the sale of CERs 8.9 8.9 8.9 8.9
Salvage 0 0 0 5
Net cash flow 15 15 15 15
NPV (discount rate =10%) 20.3
IRR (%) US$ 135 million

The addition of CER income significantly increases the viability of the project, from a non-viable 5.1% to
20.3%, at which point the project becomes commercially viable and attractive to investors.

B.2.2 Emission reduction calculation

The following table represents the sources of GHG emissions in the baseline scenario and project
scenario:

Table B.6 Emission sources for the baseline scenario and project scenario
CDM project activity: Anaerobic digester—
Baseline: Anaerobic Lagoon
Aerobic Treatment—Storage Lagoon
CH4 from the Anaerobic Water-ways CH4 emissions from anaerobic digester losses
N2O from the Anaerobic Drains CH4 from the aerobic treatment
CH4 from the storage lagoon
N2O from the storage lagoon

This scenario does not account for nitrous oxide emissions related to the capture and burning of biogas
from the anaerobic digester, assuming that ammonia is not a relevant component of this gas. On the
aerobic side, the system uses extended aeration, hence will fully fix nitrogen during the process and will
not emit nitrous oxide.
To calculate the emissions for each process stage in the baseline and project scenario, the project has
incorporated corrected IPCC default data to represent the volatile solids content and nitrogen content in
raw and treated manure. The project team has taken various samples of raw dung and wastewater from the
local environment to establish the VOC and TOC values of the raw product, and also establish the BOD
of the water in the local drains necessary to demonstrate the validity of the baseline assessment that the
drains effectively act as an anaerobic lagoon.

B.3. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered CDM project activity:

Explanation of how and why this project is additional and therefore not the baseline scenario in
accordance with the selected baseline methodology. Include 1) a description of the baseline scenario
determined by applying the methodology, 2) a description of the project scenario, and 3) an analysis
showing why the emissions in the baseline scenario would likely exceed emissions in the project scenario.

The GHG gases and sources involved in this project are:


o Methane from decomposing dung and organics in the open drains and estuary, or captured from
the anaerobic digester constructed for the purpose.
o Carbon dioxide, arising from the flaring of gas or the generation of power.

The baseline scenario is the present practice of dumping animal wastes into open drains results in 100%
release of all greenhouse gases produced into the atmosphere. This practice is used as it is by far the least
financial cost and least effort or risk, and hence is regarded as being the most economically attractive
waste disposal option available to farmers. However it also has a massive negative social and
environmental impact, and ultimately a negative financial impact in terms of its reduction in investment
and socioeconomic wellbeing. These negatives impact disproportionately on the section of the population
who had no say in controlling the original decision to dump wastes, and did not benefit from the very low
financial costs of doing so.

In the project activity, wastes are collected from the farms and prevented from entering the local water
ways. They are transported by truck to a processing point where they are mixed with water and pumped
into the digester unit. The wastes are broken down through a series of decomposition processes and a
significant proportion of volatile solids are captured by the system in the form of CH4 and CO2 from the
activity of anaerobic bacteria.

The CH4 is collected and diverted for use in heat or power generation, rather than released into the
atmosphere, as is the case in the present practice. The capture and combustion processes have an allowed
efficiency of 70%. In the absence of the project activity, the most probable activity would be business as
usual; the uncontrolled dumping of waste. This is because there are at present no institutional drivers for
change in the absence of an option that is commercially sustainable. The project would have been
implemented previously had this not been the case, as the baseline condition has remained unchanged for
years and shows no indication of changing in the future.

It can therefore be seen that the process of capturing and combusting the CH4, rather than simply allowing
it to vent freely, provides a sound and simple basis for a demonstrable reduction in overall greenhouse gas
emissions from the farming activity, and existing waste handling procedures followed at Landhi. The
project is therefore additional.

Additionality through Displacement of Hydrocarbon-based Generation

The project will establish green field renewable energy generation of 15 MW. It will displace natural gas
and other thermal generation within the KESC concession area, either provided by KESC or from the
hundreds of private petrol and diesel gensets kept for standby generation during load shedding.
Other aspects of Additionality

This project activity will bring technological additionality. It is the first biogas-to-electricity plant in
Pakistan, and is of enormous scale even compared with similar ventures in Germany, where the
technology is mature. It will import state of the art, but still off the shelf power generation, waste and gas
stream monitoring and control systems as well as fertiliser process and packaging technology. These are
presently not widely deployed in Pakistan and will require training and service and support mechanisms
to be implemented to ensure sustainable operation.

There will be environmental additionality in:


o removal of the waste that at present enters the marine environment – 4,608 tonnes per day, at an
average 18 kgs dung per beast, and 400,000 head of cattle
o Saving of an estimated 67% of the water at present used for flushing dug to the sea. A meter was
placed on a farm of 200 head of cattle from June to October 2006. Water use averaged 38m3 per
day. Farmers estimate 60-80 litres per beast per day is used for drinking and bathing. The
balance is expended on hosing the dung into the drains. Fresh water savings due to the project
might be of the order of 30,000 ms per day, as calculated in the table below.

Table B.7 Water Savings


Fresh Water Savings through the Project
Water now used @ 38 m3 per 200 cattle per day, m3 76,000
Water per animal per day, all uses, litres 190
Of which, for drinking and bathing, litres per animal per day 80
Saving per animal per day, litres 110
Water needed under the project to dilute dung per animal per day,
litres 36
(9% solids in the digester)
Net saving per animal per day litres 74
Net saving for the colony per day, m3 29,600

o Cleaning and greening of the areas where dung has been dumped on the streets and on vacant
land. The City District Government has undertaken to supply professional advice and trees to
improve the area, which will in turn absorb CO2 as an indirect and uncounted project impact.
CDGK will use the grey water from the digester to fertigate public plantings.
o The project will provide an example with potential for replication. There are smaller colonies
around Karachi housing a further 600,000 cattle, large cattle colonies at Sarghoda and Okara (c.
100,000 head of cattle each), and in innumerable smaller colonies, typically around 5,000 head of
cattle.

Socio-economic additionality will accompany the creation of permanent new jobs in the project. The
area is a traditional place of refuge for poor rural dwellers seeking jobs in town, Aryan Muslim refugees
from Bangladesh, peoples displaced by earthquake and other natural disasters. These populations live in
katchi abadi around the colony, are mainly poor and often jobless. The project may create several
hundred unskilled jobs collecting and delivering the dung, spreading and drying it after exit from the
digester, and bagging it for disposal as cheap organic fertiliser. There will be skills development and
technology transfer resulting in higher paid and professional positions operating, maintaining and
managing the plant. Calculations of these benefits are included in Annex 3G.
B.4. Description of how the definition of the project boundary related to the baseline
methodology selected is applied to the project activity:

The boundary for this project is defined with reference to:


1. The physical footprint of the process plant and the cattle colonies it will serve
2. The drains and coastal area affected by dung dumping, in which some of the biomethanation of the
waste currently occurs
3. The concession area of the utility, Karachi Electricity Supply Corporation, to whose grid power will
be sold.

With this in mind, the project baseline takes into account GHG emissions from the land, drains and
coastal areas where the dumped wastes accumulate and decompose.

The KESC concession area is approximately coterminous with the City District Government of Karachi.
The area under the jurisdiction of the City District Government of Karachi is therefore taken as the
physical boundary for the project, since this includes the project impacts on land, sea and air.

Fig. 4 Baseline Scenario Boundary

Gas Emissions
CH4 and N2O Composted
organics are
dispersed in
the ocean

Local drains –
Raw dung Anaerobic
from cattle dumping grounds

Project Boundary

The project boundary that is defined above recognises that emissions not due to the present handling of
dung within the farm boundary are unlikely to be reduced through the impacts of this project. Thus
gastrointestinal emissions, or limited ponded wastes in the yards that decompose are excluded.

Fig.5 CDM Project Activity Boundary


Dry, clean
biogas to Power CO2
Generation exhaust Release to local
Process drains or use in
Biogas irrigation
Filtering
Drying
Biogas
extraction to
temporary
holding reservoir Liquids to aerobic
CH4, H2S, CO2 treatment stage
CH4, H2S, CO2

Mixing to Decanter stage


Raw dung an9% Anaerobic Solid/liquid
slurry Digester separation

Composted
Organic solids to
Fertiliser organic
Output fertiliser
production

The chemical fertiliser offset by the production of organic fertiliser produced also adds to the reduction in
GHGs through the avoided consumption of natural gas in the production process.
B.5. Details of baseline information, including the date of completion of the baseline study and
the name of person (s)/entity (ies) determining the baseline:

Please attach detailed baseline information in Annex 3.


Please provide date of completion in DD/MM/YYYY.
Please provide contact information and indicate if the person/entity is also a project participant listed in
Annex 1.

Relevant baseline data relates to the number of cattle in the area, the physical project boundary, the size
and weight of cattle, the feedstock composition, water consumption, dung production, waste disposal
practices, climatic conditions. Collection in-country of the main body of baseline data was completed on
01/03/2006.

The baseline data was supplied from:


1. Consultations in 1998 with IUCN, who identified the problem
2. Meetings from 1998 to 2006 with relevant local government officers (the District Commissioner,
Karachi, Karachi Municipal Corporation, City District Government of Karachi Executive District
Officers for Investment, Planning, Social Welfare, Lands, Agriculture and Forestry.) These
officials confirmed the nature and extent of the impacted area, and the human and environmental
problems
3. Meetings with EPA Sindh in November 2005, submission of an IEE and subsequent receipt of a
No Objection Certificate (see Annex 3.)
4. Meetings with KESC between 1998 and November 2005 KESC confirmed the footprint of the
distribution system and the shortage of supply in the area (see http://www.kesc.com.pk/)
5. Meetings in 1998, 2004 and 2006 with the Senior Veterinary Officer In Charge, Government
Veterinary Hospital, Landhi, who confirmed the cattle numbers, composition of the feedstock,
volume and composition of the dung (see table, Annex 3.)
6. Meetings with the two farmer organisations in the Colony, the Karachi Dairy Farmers’
Association (KDFA), and the Dairy Farmers’ Association, Karachi (DFAK). Between them,
these organisations cover almost every farmer in the Colony. They validated information from
the Government Veterinarian regarding cattle numbers, feedstock and dung, and present methods
of waste disposal. Comparative data has been obtained from the UNFCC website
http://unfccc.int/ghg_emissions_data/items/3800.php (see also letters of support, Annex 3).
7. An independent representative survey of Landhi Colony households commissioned in 2002 by
the Project Proponents Its main purpose was to ascertain the poverty status of local residents with
a view to seeking Japan Fund for Poverty Reduction funding for the project. As elsewhere noted,
this quest was unsuccessful, but the data was useful in confirming statistically farmer
organisations’ and the Government Veterinarian’s statements about dung disposal (see relevant
portions of analysis below) Data obtained in the survey has been subsequently re-validated with
the Department of Social Welfare, farmer organisations and the Government Veterinarian in
November 2005 and February 2006.
8. Factual data such as climatic conditions have been verified from credible websites, acknowledged
in footnotes (http://www.world66.com/asia/southasia/pakistan/karachi/lib/climate).
9. Meetings and workshops with relevant NGOs working on socio-economic development and
environment in the project area from 11 November 2005 to 30 November 2005, and 17 February
2006 and 1 March 2006 (see schedules of meetings and workshop presentations Annex 3).

These sources have led to the Project Proponents’ identification of the fit between the proposed Project
Activity, the proposed methodology, scenario and baseline.

Key assumptions and rationales are that:


1. 395,000 cattle are at present officially in the near area This is only 40% of the cattle officially
within the Project Boundary, so is very conservative. (Statistics from the Government
Veterinarian, reproduced in Annex 3, Baseline Information)
2. There are plans for an additional colonies within the footprint of the project area, (Information
from the Government Veterinarian, see schematic of the colony, Annex 3 areas marked
“survey”)
3. Almost all of the waste is dumped and left to decay (Independent sample survey 2002, see table
below, Section B5).
4. The farmers will cooperate as per their letters of support, because they have an interest in
cleaning up their environment, but also because the project will pay a small sum for the
feedstock. At present, some pay to have it dumped.
5. KESC will purchase the power. Government regulation compels the purchase of power from
renewable resources, but KESC faces severe supply constraints and welcomes the opportunity,
especially as renewable power production and sale attracts lower tax.

The baseline data used is compiled from data supplied in interviews with veterinarians and farmers’ group
leaders in Landhi and Bin Qasim, and other government and NGO stakeholders. Business cards and
contact details are in Annex 3. Project participants are grouped and identified as such.

The baseline survey of a sample of 233 respondents revealed that at present, dung is disposed of as shown
in the Table below:

Table B.8 Methods of Disposal of Cattle Waste


Disposal of cattle waste
No. %
Dumped in the drain 150 64.38
Dumped on adjacent land 17 7.30
Sold (occasionally) 1 0.43
Dumped on the street 47 20.17
Dumped on own land 18 7.73
100.0
233 0
Data source: Independent survey of households in Landhi Cattle Colony, 2002

Within the project boundary there are almost 1 million head of cattle (See Annex 3, Baseline
information). The number of cattle officially registered in the near neighbourhood (~3 km radius) in 2004
is shown below.
Table B.9 Cattle Numbers
Name of Township Number of Cattle
Union Council population
Bin Qasim 7 342,500
Landhi 10 8,073
Korangi 9 44,472
Total 395.045
Data Source: Government Veterinary Officer, Landhi

This number has grown since the last cattle census with new farms development, and is understated13. The
number of cattle is therefore taken as 400,000.

Ninety per cent of the animals are buffaloes with an average adult body weight of 800 kgs. The balance
are milch cows weighing an average 650 kgs. The IPCC tabulated data for buffalo allows for a weight of
380 kg, which has been adopted in this proposal and is certainly conservative but allows for non-adult
animals.

13
The annual cattle poll tax (Rs 150 in November 2005), and a cattle population–related monthly water charge
encourage under-reporting of cattle numbers
Each animal consumes 30-40 litres of water and 28 kgs feed per day, of which 8-10 kgs is high grade
grain and seed cake, 10-12 kgs is green feed, and the balance wheat straw. The Government Veterinarian
states that the composition and quality of feedstock varies very little seasonally, or from farm to farm. He
describes the animals as very well nourished; “the equivalent of feeding a human four chickens a day.”

Each animal produces 20-25 kgs of dung per day, of which 20% is dry weight. A conservative figure of
18 kgs per animal per day has been used in calculations of greenhouse gas emission abatement.

Conservatively, the baseline makes the assumption that only 60% of the emissions are captured, and a
very small amount of dung is sold, and the rest is still left to decay either on land or in water.
SECTION C. Duration of the project activity / Crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity:

The starting date of a CDM project activity is the date on which the implementation or construction or
real action of a project activity begins.
Project activities starting between 1 January 2000 the date of the registration of a first clean development
mechanism project, if the project activity is submitted for registration before 31 December 2005; have to
provide documentation, at the time of registration, showing that the starting date fell within this period.

This date is yet to be determined, but it tentatively projected at 2008.

C.1.2. Expected operational lifetime of the project activity:

Please state the expected operational lifetime of the project activity in years and months.

The project is expected to operate for not less than 20 years.

C.2 Choice of the crediting period and related information:

A ten year crediting period has been selected for this project.

Please state whether the project activity will use a renewable or a fixed crediting period and complete
C.2.1 or C.2.2 accordingly.
Note that the crediting period may only start after the date of registration of the proposed activity as a
CDM project activity. In exceptional cases, (see instructions for section C.1.1. above) the starting date of
the crediting period may be prior to the date of registration of the project activity as provided for in
paragraphs 12 and 13 of decision 17/CP.7, paragraph 1 (c) of decision 18/CP.9 and through any guidance
by the Executive Board, available on the UNFCCC CDM web site.

C.2.1. Renewable crediting period

Each crediting period shall be at most 7 years and may be renewed at most two times, provided that, for
each renewal, a designated operational entity determines and informs the executive board that the original
project baseline is still valid or has been updated taking account of new data where applicable;

C.2.1.1. Starting date of the first crediting period:

Please state the dates in the following format: (DD/MM/YYYY).

01/06/2008

C.2.1.2. Length of the first crediting period:


>>
Please state the length of the first crediting period in years and months.

10 years
C.2.2. Fixed crediting period:

Fixed crediting period shall be at most ten (10) years.

10 years

C.2.2.1. Starting date:

Please state the dates in the following format: (DD/MM/YYYY).

C.2.2.2. Length:

Please state the length of the crediting period in years and months

SECTION D. Application of a monitoring methodology and plan

Where project participants wish to propose a new monitoring methodology, please complete form
“Proposed New Methodology: Monitoring” (CDM-NMM) in accordance with procedures for submission
and consideration of proposed new methodologies (see Part III of these Guidelines).

This section shall provide a detailed description of the monitoring plan, including an identification of the
data and its quality with regard to accuracy, comparability, completeness and validity, taking into
consideration any guidance contained in the methodology. The monitoring plan is to be attached in
Annex 4.

The monitoring plan needs to provide detailed information related to the collection and archiving of all
relevant data needed to
- estimate or measure emissions occurring within the project boundary,
- determine the Baseline, and
- identify increased emissions outside the project boundary.

The monitoring plan should reflect good monitoring practice appropriate to the type of project activity.
The plan should follow the instructions and steps defined in the approved monitoring methodology.
Project participants shall implement the registered monitoring plan and provide data, in accordance with
the plan, through their monitoring report.

Please note that data monitored and required for verification and issuance are to be kept for two years
after the end of the crediting period or the last issuance of CERs for this project activity, whatever occurs
later.

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD:


Data to be collected in order to monitor the project’s performance on the sustainable development
indicators – table inserted below:

The actual project performance must be assessed against the projected outcomes of the sustainable
development assessment as defined in Section 3.4 of the Gold Standard Project Developer’s Manual, on
an annual basis. Where quantitative measurements are required information on the relevant data to be
collected should be noted in the table presented in Annex 4. For further information, see section 3.5.1 of
the Gold Standard Project Developer Manual.
D.1. Name and reference of approved monitoring methodology applied to the project activity:

UNFCCC methodology ACM0010 has been selected as the most appropriate for this project activity.

Please refer to the UNFCCC CDM web site for the name and reference as well as details of approved
methodologies. Where project participants wish to propose a new monitoring methodology, please
complete the form for “Proposed New Methodology: Monitoring” (CDM-NMM) and subsequently
complete, sections A-E of the CDM-PDD to demonstrate the application of the proposed new
methodology to the project activity.
If a national or international monitoring standard has to be applied to monitor certain aspects of the
project activity, please identify this standard and provide a reference to the source where a detailed
description of the standard can be found.
Please fill sections D.2.2 or D.2.3 below in accordance with the approved monitoring methodology
selected.

D.2. Justification of the choice of the methodology and why it is applicable to the project
activity:
Please justify the choice of methodology by showing that the proposed project activity and the context of
the project activity meet the conditions under which the methodology is applicable.

ACM0010 was selected for use in this situation as its criteria best fits the situation in Landhi (the disposal
of agricultural waste streams) and also the expected handling of the captured methane emissions.

The Sustainable Development indicators were selected with reference to Gold Standard guidelines. To
achieve realistic year on year “before and after” comparison, the indicators are SMART – Simple,
Measurable, Achievable, Realistic and Time-bound. The selected indicators focus on the principle
determinants of GHG abatement, the raw waste received, the energy outputs, disaggregated employment
and labour statistics, expenditure on CSR programmes. These are within the control of the project, and
should constitute part of the normal annual reporting of the project operator. There may be sustainable
development benefits outside the immediate control of the project such as greening of public spaces by
the City District Government using residual liquid effluent, and employment of women in making and
printing bags for the enterprise. These may be reported anecdotally, but may not be statistically robust
since they are not within the control of the enterprise.
D.2. 1. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario

D.2.1.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:

ID number Data variable Source of data Data Measured Recording Proportion How will the Comment
(Please use unit (m), frequency of data to data be
numbers to ease calculated (c) be archived?
cross-referencing or estimated monitored (electronic/
to D.3) (e) paper)

D.2-1 Number Head of buffalo Heads Measured Annual 100% Paper and This is an annual census count done
electronic for taxation reasons
D.2-2 Mass Average weight of kg Measured Annual 100% Paper and Average animal weights are collected
buffalo electronic and databased by government and
agricultural officials
D.2-3 Flow rate Manure flow after aerobic m3/day Measured Monthly 100% Paper and
treatment stage electronic
D.2-4 Concentration 5 day Biochemical mg/L Measured Monthly 100% Paper and
Oxygen Demand in electronic
aerobic treatment effluent
D.2-5 Concentration Total Nitrogen content in mg/L Measured Monthly 100% Paper and
aerobic treatment effluent electronic
D.2-6 Temperature Temperature of aerobic ℃ Measured Monthly 100% Paper and
treatment effluent electronic
D.2-7 Flow rate Biogas flow extracted by m3/day Measured Daily 100% Paper and This parameter guarantees the correct
digester electronic performance of digester and gas
recovery.
D.2-8 Percentile CO2 concentration in gas % Measured Daily 100% Paper and This parameter guarantees the correct
flow electronic performance of digester and gas
recovery.
D.2-9 Volume Biogas input to the gas m3/day Measured Daily 100% Paper and Gas volume is measured via a
engine electronic continuous flow meter plotted by
month and year.
D.2-10 Electricity Electricity generated by MWh Measured Daily 100% Paper and Total power produced is measured via
quantity the project activity electronic electricity meter and logged daily.

Description of data to be collected and how data will be archived. Data shall be archived for 2 years following the end of the crediting period. Please add rows
to the table, as needed.
D.2.1.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

Formulae should be consistent with the formulae outlined in the description of the baseline methodology.

The calculation of methane emissions from this project activity is initiated from the selection of a Tier One methodology
For calculation of the project emissions from the anaerobic digester, the following equations are deployed.

1. CH4 emission formulae for the primary project activity:


CH4 emissions from the primary stage (digester) of the project activity:

BECH 4, y = GWPCH 4 ⋅ DCH 4 * ∑ MCF j * B0, LT * N LT *VS LT , y * MS Bl , j


j , LT

Where:
BE CH 4, y = GWPCH 4 ⋅ DCH 4 * ∑ MCF j * B0, LT * N LT * VS LT , y * MS Bl , j
j , LT

BECH 4, y : Are the CH4 emissions from manure management in the primary treatment stage in the anaerobic digester of the manure management
system during the year y in tons of CO2 equivalent.

GWPCH4: Is the approved Global Warming Potential (GWP) of CH4.


MCFj: Is the methane conversion factor (MCF) for treatment of manure in the first treatment stage in percent. IPCC guidelines gives this as 79%
DCH4: Is the CH4 density (0.67 kg/m3 at room temperature (20 ºC) and 1 atm pressure).
VS LT,y: Is the volatile solid excretion per day on a dry-matter basis for a defined livestock population in kg-dm/animal/day. For this project the IPCC
value of 3.9 given for 380 kg buffalo in Asia will be used.
B0,LT: Is the maximum CH4 production capacity from manure for a defined buffalo population in m3 CH4/kg-dm.
NLT: Is the population of defined livestock type LT for the year y.

The volatile solid figure is taken directly from table 10A-6, Chapter 10, of the IPCC 2006 guidelines for National Greenhouse
The global warming potential GWPCH4 is defined by the IPCC as 21 times that of CO2
The methane conversion factor for anaerobic treatment is defined as 79%, taking into account the ambient temperature for Karachi.
D.2.1.3. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHGs within the project
boundary and how such data will be collected and archived :

ID number Data Source of Data Measured (m), Recording Proportion How will the data be Comment
(Please use variable data unit calculated (c), frequency of data to archived? (electronic/
numbers to estimated (e), be paper)
ease cross- monitored
referencing
to table
D.3)
D.2-1 Number Buffalo Heads Measured Annual 100% Paper and Data is collected annually by government
herd governmen electronic offices
t records
D.2-2 Mass Average Kg Measured Annual 100% Paper and To be collected for the total buffalo population.
weight of governmen electronic Necessary when/if no monitored wastewater
buffalo t records parameters are available (volatile solids,
nitrogen content).

Description of data to be collected and how data will be archived. Data shall be archived for 2 years following the end of the crediting period. Please add rows
to the table below, as needed.

D.2.1.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

Formulae should be consistent with the formulae outlined in the description of the baseline methodology.

The baseline situation at Landhi is a series of slow moving deep monsoon drains leading to a large marine estuary, where decomposing matter forms deep
sedimentary layers that continue to decompose until eventually being washed out to sea. The process functions as an anaerobic lagoon, and thus the formula
to quantify the CH4 emissions from the anaerobic lagoon in the baseline scenario is the same as described in D.2.1.2, minus the electricity production.
D. 2.2. Option 2: Direct monitoring of emission reductions from the project activity (values should be consistent with those in section E).

D.2.2.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:

ID number Data Source of Data Measured (m), Recording Proportion How will the Comment
(Please use variable data unit calculated (c), Frequency of data to be data be
numbers to estimated (e), monitored archived?
ease cross- (electronic/
referencing paper)
to table
D.3)
D.2-9 Volume Biogas input m3/day Measured Daily 100% Paper and Gas volume is measured via a continuous flow
to the gas electronic meter plotted by month and year.
engine
D.2-10 Electricity Electricity MWh Measured Daily 100% Paper and Total power produced is measured via electricity
quantity generated electronic meter and logged daily.
by the
project
activity

Description of data to be collected and how data will be archived. Data shall be archived for 2 years following the end of the crediting period. Please add rows
to the table below, as needed.

D.2.2.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.):

Formulae should be consistent with the formulae outlined in the description of the baseline methodology.

The formulae used to calculate project emissions are taken from ACM0010 / Version 01. In the case of Landhi, we have adopted a single stage treatment
process whereby waste is captured and digested anaerobically in a digester, and then fertiliser is extracted and dried following the completed digestion
process.

There may be secondary GHG impacts from the reduction in chemical fertiliser production through the utilisation of organic fertilisers, and this will be
investigated during the course of the installation.
Project Emissions
PEy = PE AD, y + PE Aer, y + PE N 2O, y + PE PL, y + PE CH 4 _ IC, y + PE elec / heat

PEAD, y Leakage from AWMS systems that capture’s methane in t CO2e/yr


PEAer, y Methane emissions from AWMS that aerobically treats the manure in t CO2e/yr
PEN2O,y Nitrous oxide emission from project manure waste management system in t CO2e/yr
PEPL,y Physical leakage of emissions from biogas network to flare the captured methane or
supply to the facility where it is used for heat and/or electricity generation in t CO2e/yr
PECH4_IC,y Incomplete combustion of methane in flaring in t CO2e/yr
PEelec/heat Project emissions from use of heat and/or electricity in the project case in t CO2e/yr
(i) Methane emissions from AWMS where gas is captured (PEAD, y):

IPCC guidelines specify physical leakage from anaerobic digesters as being 15% of total biogas production. Where project participants use lower values for
percentage of physical leakage, they should provide measurements proving that this lower value is appropriate for the project.

PE AD, y = GWP CH4 . DCH4 * LF AD * F AD * Σ (B O,LT * N LT * VS LT,y)


DCH4 CH4 density (0.00067 t/m3 at room temperature (20 ºC) and 1 atm pressure).
LFAD Methane leakage from Anaerobic digesters, default of 0.15 multiplied by methane
content of biogas.
FAD Fraction of volatile solid directed to anaerobic digester.
RVS,n Fraction of volatile solid treated in AWMS stage n. The project proponents shall provide the values based on proven test results. In absence
of such values the conservative value of volatile solids treated in Annex 1 shall be used.
LT Index for livestock type
B0,LT CH4 production capacity from manure for livestock type LT, in m3 CH4/kg-VS, to be chosen based on procedure provided for in the baseline
methodology section.
NLT Population of livestock type LT for the year y, expressed in numbers.
VSLT,y Annual volatile solid excretion of livestock type LT on a dry-matter basis in kg/animal/year
MS%j Fraction of manure handled in system j

As noted in equations (10.a) not all volatile solids are degraded in the anaerobic digester. If the undegraded volatile solid in the effluent from anaerobic
digester is discharged outside the project boundary without further treatment, these emissions should be treated as leakage and appropriately reported and
accounted.
D.2.3. Treatment of leakage in the monitoring plan

There is no net change of anthropogenic emissions by sources of GHG which occurs outside the project boundary and is measureable and attributable to the
project activity. Hence no leakage is considered which is relevant to ACM0010.

D.2.3.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project
activity
ID number Data Source of Measured (m), Recording Proportion How will the data Comment
Data
(Please use variable data calculated (c) frequency of data to be archived?
unit
numbers to or estimated (e) be (electronic/
ease cross- monitored paper)
referencin
g to table
D.3)

Monitored data shall be archived for 2 years following the end of the crediting period. Please add rows to the table below, as needed.

D.2.3.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

Formulae should be consistent with the formulae outlined in the description of the baseline methodology.

D.2.4. Description of formulae used to estimate emission reductions for the project activity (for each gas, source, formulae/algorithm,
emissions units of CO2 equ.)

Formulae should be consistent with the formulae outlined in the description of the baseline methodology.
D.3. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored

Data Uncertainty level of data Explain QA/QC procedures planned for these data, or why such procedures are not necessary.
(Indicate table and ID (High/Medium/Low)
number e.g. 3.-1.; 3.2.)
Gas volumes Low Calibrated meters and measurement equipment is to be used. Meters are recalibrated annually
Power production Low Calibrated meters and measurement equipment is to be used. Meters are recalibrated annually
Methane % Low Online gas meters check methane percentage in real time, and calorific value is reflected in the power produced

Data items in tables contained in sections D.2.1 or D.2.2, as applicable.

D.4 Please describe the operational and management structure that the project operator will implement in order to monitor emission reductions
and any leakage effects, generated by the project activity

In addition to the technical indicators to be monitored, sustainable development indicators under the direct control of the project will be monitored as per the
variables below, to demonstrate commitment of the parties to Corporate Social Responsibility. Data will be gender-disaggregated. A matrix is included in
Annex D.
• Employment levels
• Income levels
• Work-related health statistics

D.5 Name of person/entity determining the monitoring methodology:

Please provide contact information and indicate if the person/entity is also a project participant listed in Annex 1 of this document.
Tony Woods, Renewable Energy Engineer, Empower Consultants Limited (project proponents – see Annex 1) twoods@mpwr.co.nz
Ann McLean, Social Development Specialist, Empower Consultants Limited (project proponents – see Annex 1) amclean@mpwr.co.nz

The monitoring methodology will be compiled by Clean Energy Developments Ltd, and overseen and verified by the project designated operational entity,
yet to be determined.
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM – Executive Board page 36

SECTION E. Estimation of GHG emissions by sources

Please fill section E. following the selected baseline and monitoring methodologies.

E.1. Estimate of GHG emissions by sources:

Please provide estimated anthropogenic emissions by sources of greenhouse gases of the project activity
within the project boundary (for each gas, source, formulae/algorithm, emissions in units of CO2
equivalent). Alternatively, provide directly estimated emission reductions due to the project activity.

The methane emitted and captured by the anaerobic digestion of the animal wastes is the only GHG
considered in the initial stage of the project. The drains and estuary act as an anaerobic lagoon.
However, all gases produced are release to the atmosphere. The project activity will construct an
anaerobic digester, which will produce a similar quantity of methane, but will flare the gas at the pilot
stage, and/or utilise this gas for electricity generation in the later stages of the project, thus adding to the
avoided GHG emissions through CO2 abatement due to avoided thermal generation emissions.

Enteric emissions resulting from the gastrointestinal activity of the buffalo herd are excluded from this
activity as these emissions will exist both prior to and following the project activity14.

The project will consume electricity for the operation of compressors, pumps and other onsite process
control and operations, however this energy consumption will be offset by power generated on site from
the consumption of methane captured and this will be excluded from the calculation undertaken.

Depending on the final configuration of the project, a mechanised collection system may be required to
pick up dung from the farms and transport dung to the digester. In the early stages of the project the dung
will be transported using the existing handheld and donkeys driven carts and thus not incur additional
GHG emissions. It is however noted that in the later stages of the project, higher transport demands may
require the use of automated transportation. In the first event, this will be operated on CNG produced as a
part of the project. Thus the net emissions are again zero. In the event that fossil diesel is used, this will
be incorporated into the monitoring regime and accounted for.

E.2. Estimated leakage:

Please provide estimate of any leakage, defined as: the net change of anthropogenic emissions by sources
of greenhouse gases which occurs outside the project boundary, and that is measurable and attributable to
the project activity. Estimates should be given for each gas, source, formulae/algorithm, emissions in
units of CO2 equivalent.

There is no net change of anthropogenic emissions of greenhouse gas emissions which occurs outside the
project boundary and that is measurable and attributable to the project activity, thus no leakage is
considered that is in accordance with ACM0010.

14
It is noteworthy that the project investor, Marubeni Corporation, is separately researching enzyme therapy that
may assist to mitigate enteric gas emissions
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM – Executive Board page 37

E.3. The sum of E.1 and E.2 representing the project activity emissions:

As per the notes above, we have found that the sum of item E1 and E2 are zero and thus the project
activity emissions are also zero.

E.4. Estimated anthropogenic emissions by sources of greenhouse gases of the baseline:

Estimates should be given for each gas, source, formulae/algorithm, emissions in units of CO2 equivalent.

Methane is the primary GHG avoided by this project activity. ACM0010 requires the project to directly
monitor the amount of methane captured and destroyed as a part of the project activity.

Studies by the Pakistan Council for Renewable Energy Technologies, and subsequent analysis by New
Zealand waste water engineers, has shown the methane gas production to be approximately as follows:

1. CH4 emission formulae for the primary project activity:


CH4 emissions from the primary stage (digester) of the project activity:

BECH 4, y = GWPCH 4 ⋅ DCH 4 * ∑ MCFj * B0, LT * N LT *VSLT , y * MSBl , j


j , LT

Where:
BE CH 4, y = GWPCH 4 ⋅ DCH 4 * ∑ MCF j * B0, LT * N LT * VS LT , y * MS Bl , j
j , LT

BECH 4, y : Are the CH4 emissions from manure management in the primary treatment stage in the
anaerobic digester of the manure management system during the year y in tons of CO2
equivalent.

GWPCH4: Is the approved Global Warming Potential (GWP) of CH4. Taken as 21


MCFj: Is the methane conversion factor (MCF) for treatment of manure in the first treatment stage in
percent. IPCC guidelines gives this as 79%
DCH4: Is the CH4 density (0.67 kg/m3 at room temperature (20 ºC) and 1 atm pressure).
VS LT,y: Is the volatile solid excretion per day on a dry-matter basis for a defined livestock population
in kg-dm/animal/day. For this project the IPCC value of 3.9 given for 380 kg buffalo in Asia will
be used. Mature animals in Karachi weight in excess of 600 kg.
B0,LT: Is the maximum CH4 production capacity from manure for a defined buffalo population in m3
CH4/kg-dm. For buffalo in Karachi with an ambient temperature of 24 deg C, the IPCC tables put
the Bo value at 0.1
NLT: Is the population of defined livestock type LT for the year y.

The volatile solid figure is taken directly from table 10A-6, Chapter 10, of the IPCC 2006 guidelines for
National Greenhouse
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The global warming potential GWPCH4 is defined by the IPCC as 21 times that of CO2
The methane conversion factor for anaerobic treatment is defined as 79%, taking into account the ambient
temperature for Karachi.

Factoring these variables and IPCC data for Pakistan, the formula takes the shape as below:

BECH 4, y = 21 x 0.67 (0.79 x 0.1 x 400,000 x 3.9 x 0%)

BECH 4, y = 14.07 x 123,240


BECH 4, y = 1,733,986 tons CO2 eq

Recognising that there is the potential for non-anaerobic activity in the baseline scenario, given that the
drains and estuary are not a fully controlled environment, it is allowed that there should be a conservative
margin of error of 60% applied to the calculated emissions from the baseline.

BECH 4, y = 1,733,986 x 60 %
= 1,040,391 tons C02 eq pa

Thus the effluent stream from the 400,000 head of cattle is capable of producing 1.73 million tons of C02e
pa, of which only 1.04 millions tons will be included in the baseline scenario to ensure that any non-
anaerobic activity is not included in the calculations.

E.5. Difference between E.4 and E.3 representing the emission reductions of the project activity:

The difference calculated between E4 and E3 is as determined from the baseline, and allowing for the
15% leakage recommended by the IPCC guidelines this reduces the overall emission reductions of the
project from 1,040,391 tons by 156,058 tons to 884,333 tons CO2 e pa.
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E.6. Table providing values obtained when applying formulae above:

The ex post calculation of baseline emission rates may only be used if proper justification is provided.
Notwithstanding, the baseline emission rates shall also be calculated ex-ante and reported in the CDM-
PDD. The following table should be filled in.

Year Estimation of project Estimation of baseline Estimation of Estimation of emission


activity emission emission reduction leakage (tons CO2 e) reductions (tons CO2 e)
reductions (tons CO2 e) (tons CO2 e)
2008 0 1,040,391 156,058 884,333
2009 0 1,040,391 156,058 884,333
2010 0 1,040,391 156,058 884,333
2011 0 1,040,391 156,058 884,333
2012 0 1,040,391 156,058 884,333
2013 0 1,040,391 156,058 884,333
2014 0 1,040,391 156,058 884,333
2015 0 1,040,391 156,058 884,333
2016 0 1,040,391 156,058 884,333
2017 0 1,040,391 156,058 884,333
Total 0 10,403,910 1,560,580 8,843,330
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SECTION F. Environmental impacts

F.1. Documentation on the analysis of the environmental impacts, including transboundary


impacts:

Please attach the documentation to the CDM-PDD.

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD:


The project proponent needs to perform an EIA, if:

1) the host country legislation or the EB requires an EIA to be performed;

2) additional guidance from the Gold Standard requires an EIA to be performed (see section 3.4.2 of the
Gold Standard Project Developer’s Manual for further guidance).

This section should describe how the Gold Standard requirements are met.

F.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:

The Environmental Protection Agency, Sindh, indicated in consultations in November 2005 that an IEE
should be prepared. This is appended in Annex 3, together with EPA’s No Objection Certificate. The
process of stakeholder consultation is discussed briefly in Section G1 below, and extensively in Annex 3.
No stakeholder identified any potential adverse impact in the consultations. Rather, the project is
expected by all to mitigate existing environmental problems.

SECTION G. Stakeholders’ comments

G.1. Brief description how comments by local stakeholders have been invited and compiled:

Please describe the process by which comments by local stakeholders have been invited and compiled.
An invitation for comments by local stakeholders shall be made in an open and transparent manner, in a
way that facilities comments to be received from local stakeholders and allows for a reasonable time for
comments to be submitted. In this regard, project participants shall describe a project activity in a manner
which allows the local stakeholders to understand the project activity, taking into account confidentiality
provisions of the CDM modalities and procedures.

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD:


In addition to the stakeholder consultation requirements contained in the CDM PDD, the Gold Standard
Public Consultation Process requires at least two public consultations and gives additional minimum
requirements for the consultation process.

The exact requirements are included in Section 3.4.3 of the Gold Standard Project Developer’s Manual.
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Methodology for Public Consultation


The proposed project had its origins in 1998, only a few months before the Kyoto Protocol came into
being, and seven years before Pakistan’s accession. Though the project pre-dates establishment of the
Gold Standard, participatory methodology has been a hallmark of the long gestation period. The project
was first identified by a social scientist, who has been a team member throughout gestation. We are
therefore confident that the comprehensive and lengthy nature of the consultations has left no stone
unturned, and amply meets Gold Standard requirements.
As explained elsewhere, the project encountered investment barriers through the years of pursuit to the
present initiative. In February 2005, two months before Pakistan’s accession to the Protocol, the Asian
Development Bank expressed interest in assisting project development through its PREGA programme.
Work commenced in November 2005, three months prior to the establishment in February 2006 of the
Pakistan DNA. For this reason, the public consultations were pursued in accordance with ADB PREGA
requirements, though in full consultation with, publicised and facilitated by the Alternative Energy
Development Board, Prime Minister’s Secretariat, and the nascent CDM cell in the Ministry of
Environment. ADB PREGA project preparation consultation commenced with rigorous stakeholder
identification in the environment, energy, fertiliser and social sectors at central, Provincial and municipal
government levels and with identification by the City Social Welfare Department of NGOs that might
have a local interest in these sectors in addition to the farmer societies. The schedule of meetings and
workshops was approved by ADB. Documentation is included in Annex 3.
Public consultations started in 1998 with the some local NGOs and key informants and the farmer group,
which then formally requested assistance from the proponent to develop a waste to energy project.
Concept notes were prepared and vetted by the farmer group for the then and subsequently relevant local
Government authorities from 1998 to 200215. The local engineering partners, NEC, facilitated formation
of an NGO, the Society for Economic and Environmental Improvement in the Cattle Colonies of Karachi,
SEEICCK, to manage liaison with the farmer community on behalf of the proponents. A sample farmer
household survey (233 respondents) was conducted in 2002 to ascertain the poverty status in the area and
the dung disposal practices of the farmers.
It was established in consultation with the Sindh EPA in November 2005 that an IEE would be required.
Initial Stakeholder consultations were held during preparation of the IEE (see Annex 3). Responses
recorded in the text box beside the questions in this matrix were obtained from semi-structured interviews
with key expert informants and focus group meetings with local NGOs in this round of consultations. The
appropriate grass roots organisations were identified by the Deputy District Social Welfare Officer,
Community Development Department, Mrs Zerfishan Arbab who also moderated focus group meetings.
Grass roots consultations were conducted in Urdu with Social Welfare Department facilitation.
Meetings at central government level were arranged by the Alternative Energy Development Board,
Prime Minister’s Secretariat with the individuals considered appropriate to meet Government’s and ADB
consultation requirements.
Informants responded to the questions of which they have knowledge, or affect them; the complete list
was not covered at every meeting. All informants were specifically asked an open question inviting them

15
Though the name of the proponent organisation has changed over the eight years’ project gestation, the same
personnel have been involved from inception, and are now well known to the local stakeholders. There have been
two major changes in the structure of local administration over this time, from a professional civil service structure
under the Commissioner Karachi, through a Karachi Municipal Corporation structure, to the present-day elected
City District Government of Karachi structure.
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to identify any potentially adverse impacts they perceived. The only negative comment received in the
course of any of the public consultation (focus group meeting with Young Generation Welfare
Association, 28 November 2005) was a fear that foreign investors would come only to promote their
proprietary technology through the project. Since the technology and investment partner had not been
selected, this fear was easily laid to rest. There are no resettlement or compensation implications
associated with the project, since the land involved belongs to the government, is uninhabited degraded
desert (see satellite photograph), and does not contain any environmental, cultural, resource or access
values for the local population.
Sustainable development aspirations of the local stakeholders related to the project are first for
employment and second for a dung-free environment. To live in Landhi carries a social stigma because
social and physical infrastructure and environmental conditions are so poor, and the area features a
number of katchi abadi, informal squatter settlements. These aspirations are reflected in the monitoring
regime. Other aspirations are largely extrinsic to the project. Development NGOs and farmer societies
cite the absence of a public health clinic (some locals go when sick to the Veterinary Hospital) and the
lack of a secondary school in the area. Public transport is poor. There are no public parks or recreational
facilities. Residents hope that these conditions will improve in parallel with improved incomes and
opportunities. There was no call from any stakeholder for mitigation measures; the project itself is
perceived as a mitigation measure.
A preliminary Main Stakeholder Consultation was conducted as per ADB PREGA requirements,
comprising formal workshops with national and local-level stakeholders following pre-feasibility study,
lodging of the PIN, receipt of the NOC of the IEE from Sindh EPA, initial PDD drafting and preliminary
findings (February 2006). Workshop presentations for grass roots stakeholders were short and non-
technical, after which every participant spoke in turn, with opportunities for discussion of any points
raised. Key informant and Government consultations and workshops were conducted in English, as the
official language for government transactions and records.
Business cards of informants (most NGO participants did not have cards, and some were illiterate), the
presentations, and attendance registers at workshops are appended.

G.2. Summary of the comments received:

Please identify stakeholders that have made comments and provide a summary of these comments.

G.3. Report on how due account was taken of any comments received:

Please explain how due account have been taken of comments received.

Stakeholder comments about the project, and specifically the issues raised in the Gold Standard Public
Consultation Environmental and Socio-economic and Health Impacts Checklists were obtained from
relevant informants in individual and focus group meetings and at workshops. At the end of each
encounter, comments, questions and discussion were invited on these issues. These are summarized
against the checklist questions in Annex 3. For verification, contact details and business cards at Annex
3G.4.

Grass roots stakeholders comments came mainly from the farmer group representatives, who were
anxious to ensure that they were not sidelined in decision-making processes and ownership of the planned
enterprise. They also enunciated that the project should benefit the whole farmer community in a
conscious raising of environmental and living standards.
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The discussion centred mainly around how to structure the pilot enterprise, and beyond this the upscaled
plant to ensure that local interests were protected. It was agreed in principle that the entity management
should comprise a Management Board representing all the equity stakeholders. This includes the farmers,
who own the feedstock. In addition, it was suggested that the CBOs with employment and social
development activities in the area elect one community representative. The main equity investors have
subsequently agreed that a portion of the shareholding should be reserved for small local shareholders.
The City Nazim’s office has offered an open door for consultation with local stakeholders. The
proponents are in regular contact with the City District Government as well as the farmer NGO
stakeholders, and are confident that communication mechanisms are in place for airing any
implementation issues as they arise.

Policy-level stakeholders discussed the issues raised at the end of the workshop presentation.

Principal amongst these are:

1. The definition of biogas; agreed that it should be regarded for tariff construction as a renewable
energy source, and not as fossil natural gas. Safety regulations pertaining to methane should
apply.
2. The energy producing assets should be separated as far as practicable from the fertiliser
producing assets in determining the tariff. This electricity from biogas project will establish a
precedent, but generation facilities with two income streams exist in hydro power plus irrigation
schemes. These may be studied to see if similar treatment of asset and income values is
reasonable.
3. Sale of electricity from the demonstration plant as well as the scaled-up project should be
facilitated. It was agreed that electricity from biogas should receive the same treatment as wind
power under recent regulation; that is, that the utilities be obliged to purchase even quite small
quantities. This removes the difficulties encountered in attempting second tier supply from small
generation facilities.
4. Taxation should be little or nothing, as is the case for large projects that come under the purview
of the PPIB. This matter is being taken up by the AEDB.
5. Policy and practical support should be given to the establishment of a commercial organic
fertiliser market.
6. A Project Design Document (PDD) to apply for carbon credits arising from the project should be
prepared promptly.

As at the grass roots stakeholder workshop, all comments were summarised at the end of the workshop.
No conflicts of interest emerged at either forum; no stakeholder can see any detriment from this project.
Comments are available to all stakeholders through the publicly available PREGA report that followed
the consultations. There was lively and partially accurate coverage of the events in both the Urdu and
English press at both locations. This received as little attention as is usual with good news.

The project proponents have taken account of stakeholder comments in formulating this PDD in:
1) Preparation of the project to reflect the overriding concern of grassroots stakeholders about creation of
employment
2) Reflection in planning of civic stakeholders’ desire to utilize project outputs for the public good, e.g.
in planning for utilization of waste water for environmental benefit
3) Taking cognizance of the advice from policy level stakeholders about the legal description of biogas
4) Reflecting in planning the environmental desirability of producing organic fertiliser
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5) Reflecting grass root stakeholder feedback about how this product needs to be produced to incentivise
its transport and utilisation
6) Reflecting stakeholder feedback on tariff construction
7) Conservatism in tariff forecasts to aim for affordability.
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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Please copy and paste table as needed.

Organization: Ministry of Environment, Government of


Pakistan
Street/P.O.Box: CDA Block-IV, Civic Centre G6
Building: Ministry of Environment
City: Islamabad
State/Region:
Postfix/ZIP:
Country: Pakistan
Telephone: +92 (51) 920 2558
FAX:
E-Mail:
URL:
Represented by:
Title: Joint Secretary, International Cooperation
Salutation: Dr
Last Name: HAYAT
Middle Name:
First Name: Khizar
Department: International Cooperation

Direct FAX:
Direct tel:
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Organization: Ministry of Environment, Government of


Pakistan
Street/P.O.Box: CDA Block-IV, Civic Centre G6
Building: Ministry of Environment
City: Islamabad
State/Region:
Postfix/ZIP:
Country: Pakistan
Telephone: + 92 (51) 920 5510
FAX: +92 (51) 920 7245
E-Mail: ssajidin2004@yahoo.com
URL:
Represented by:
Title: Incharge, CDM Cell
Salutation: Dr
Last Name: HUSSAIN
Middle Name: Sajidin
First Name: Syed
Department: Clean Development Mechanism Cell

Direct FAX: +92 (51) 920 7245


Direct tel: 92 (51) 920 5510
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Organization: Empower Consultants Limited


Street/P.O.Box: 41/32 Salamanca Road PO Box 28 145,
Wellington New Zealand
Building: Salamanca Group
City: Wellington
State/Region:
Postfix/ZIP: 6015
Country: New Zealand
Telephone: +64 (4) 471 2525
FAX: +64 (4) 471 2526
E-Mail: amclean@mpwr.co.nz, twoods@mpwr.co.nz
URL: www.mpwr.co.nz
Represented by:
Title:
Salutation: Ms Mr
Last Name: McLEAN WOODS
Middle Name: Ann Noel
First Name: Beverley Anthony
Department: Social Science Renewable Energy

Direct FAX: +64 (4) 471 2526


Direct tel: +64 (4) 471 2525
Personal E- amclean@mpwr.co.nz twoods@mpwr.co.nz
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Organization: National Engineering Corporation


Street/P.O.Box: 32 Sea Breeze Plaza,
Shahrah-e-Faisal
Building:
City: Karachi
State/Region: Sindh Province
Postfix/ZIP:
Country: Pakistan
Telephone: (0092 21) 278 8336 , 7782311
FAX: (0092 21) 278 2481
E-Mail: nec@cyber.net.pk
URL:
Represented by:
Title: Managing Director
Salutation: Eng.
Last Name: SHAH
Middle Name: Feroz
First Name: Syed
Department:

Direct FAX:
Direct tel:
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Organization: Marubeni Corporation


Street/P.O.Box: 4-2, Ohtemachi 1-Chome, Chiyoda-Ku
Building:
City: Tokyo
State/Region:
Postfix/ZIP:
Country: Japan
Telephone: + 81 (3) 3282 3557
FAX: +81 (3) 3282 4834
E-Mail: Kubo-T@marubeni.com
URL: www.marubeni.com
Represented by:
Title: Senior Officer
Salutation: Mr
Last Name: KUBO
Middle Name:
First Name: Toshihide

Department: Plant, Ship and Infrastructure Projects Division

Direct FAX: + 81 (3) 3282 3557


Direct tel: +81 (3) 3282 4834
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Organization: City District Government Karachi


Street/P.O.Box: Gulshan-e-Iqbal
Building: Civic Centre
City: Karachi
State/Region: Sindh Province
Postfix/ZIP:
Country: Pakistan
Telephone: +92 (21) 923 1175
FAX: +92 (21) 923 2441
E-Mail:
URL:
Represented by: Mr. Syed Hassan Naqvi
Title: Executive District Officer
Salutation: Mr
Last Name: NAQVI
Middle Name: Hassan
First Name: Syedr
Department: Economic and Investment Promotion

Direct FAX:
Direct tel:
Personal E-Mail:
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Annex 2
INFORMATION REGARDING PUBLIC FUNDING

Please provide information from Parties included in Annex I on sources of public funding for the
project activity which shall provide an affirmation that such funding does not result in a
diversion of official development assistance and is separate from and is not counted towards the
financial obligations of those Parties. See also A.4.5

2.A CORRESPONDENCE AND MOU BETWEEN CITY DISTRICT GOVERNMENT,


KARACHI AND EMPOWER CONSULTANTS LIMITED
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2.B PROJECT HISTORY REGARDING ODA

This project concept has a long history of struggle to find funding since identification in 1998, prior to the
Kyoto Protocol. ODA avenues have been explored during this time, but have not proved successful.
From time to time, optimistic politicians have publicly stated that the project will proceed and that there
may be ODA assistance. These assertions are not accurate. To summarise, milestones were:

• Project identified by Empower Consultants personnel in 1998


• In consultation with, and at the request of the Karachi Dairy Farmers, Association, waste-to-
energy project proposed to the then local government, the Commissioner Karachi
• When local government administration system changed, referred to the Karachi Municipal
Corporation (KMC) in 1999; endorsed by KMC. Planned changes in local government
administration result in loss of momentum, and investment support could not be found
• Referred to Asian Development Bank in 2002 with a request for consideration of funding from
the Japan Poverty Reduction Fund in association with the Bank’s institutional strengthening TA
for the local utility, Karachi Electricity Supply Corporation. Baseline survey of 250 farmer
households performed to ascertain social and economic conditions and to confirm cattle waste
disposal practices. Results referred to ADB. The ADB TA was however too far advanced, and
the request for JPFR funding could not be entertained
• In consultation with the Ministry of Environment, referred to GEF for Block A funding in 2002.
• GEF replies late in 2004 that since the Kyoto Protocol has come into force, this should proceed as
a Clean Development Mechanism. Pakistan has not yet acceded to the Protocol
• Private investment funding sought unsuccessfully because the technology is unfamiliar, the
investment climate is generally judged as risky, and the project shows an insufficiently attractive
rate of return.
• New Zealand Assistance for International Development (NZAID) funding is sought in March
2005, and finally granted in November 2005 for Empower Consultants Limited to prepare a small
scale demonstration to increase investor confidence.16 Preliminary stakeholder consultations are
undertaken. No implementation plans are concluded, as the Ministry of Environment informs
Empower Consultants that Pakistan is preparing Kyoto Protocol Accession documents and is
setting up its DNA
• ADB PREGA commissions pre-feasibility study December 2005. The outcome is promising for
a PREGA project using a CDM mechanism
• PIN is lodged with the Alternative Energy Development Board, Prime Minister’s Secretariat,
Islamabad in December 2005, pending Pakistan’s DNA commencing operation
• Pakistan DNA office opens in February 2006. NZAID funding expenditure is suspended except
for project preparation and capacity building
• PDD preparation commences with AM006
• AM006 suspended; redrafting commences under ACM006.
• City District Government of Karachi (CDGK) agrees in July 2006 to grant access to land, and
some existing digestion tanks on government land

16
The funding came from a small contestable fund, the Asia Development Assistance Facility, which has an annual
budget of ~USD 2.5 million. This fund is not part of New Zealand’s normal ODA, as it is designed to facilitate
private sector to private sector assignments for poverty alleviation. Proposals are consultant-initiated rather than
bilaterally negotiated, though they must receive host Government endorsement, in this case from the Alternative
Energy Development Board, Prime Minister’s Secretariat, Government of Pakistan. The allocation to this
assignment is capped at ~USD 350,000.
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• Investment funding is sought in November 2006 to implement a pilot plant using CDGK’s
facilities, and to prepare full feasibility study
• Pilot plant design is commenced for implementation with investor, not ADAF funding.
• ACM0010 becomes available, and is more suitable to potential investors; redrafting in progress
December 2006

During this history, no aid funding was used for the project. NZAID funded only preparatory visits for
two consultants (Renewable Energy Engineer, and Social Development Consultant) to undertake project
preparation. At time of preparation of this PDD, no implementation has been funded or undertaken. The
letter from NZAID that follows attests to this.
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2B.1 LETTER FROM CO-ORDINATOR, ASIA DEVELOPMENT ASSISTANCE FACILITY,


NZAID
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Annex 3

BASELINE INFORMATION
Please provide a table containing the key elements used to determine the baseline for the project
activity including elements such as variables, parameters and data sources. For approved
methodologies you may find a draft table on the UNFCCC CDM web site.
Variable Parameter Data Source
Feedstock Number of cattle is 400,000 Government Veterinarian
Quantity of dung averages 18 -20 Government Veterinarian
kgs per animal per day
Amount of dung that decays Pakistan Council of Scientific and Industrial Research
anaerobically in the baseline is
taken as 60%
Climate Ambient air temperature ranges http://www.world66.com/asia/southasia/pakistan/karachi/lib/climate
from 12-35
Precipitation is negligible 9 months Government Meteorological data,
of the year, and is only 260 http://www.world66.com/asia/southasia/pakistan/karachi/lib/climate
mm/month at maximum
Residence Holding time in the drains and Direct measurement by PCSIR
period estuary

Contents:

3A Photo Essay – Cattle Waste Disposal, Landhi Cattle Colony


3B Schematic of Colony, Government Veterinarian’s Office
3C Official Cattle Population Statistics
3D Initial Environmental Examination
3E No Objection Certificate from Sindh Environment Protection Agency
3G.1 Participants’ Analysis of Sustainable Development Impacts
3G.2 Schedule of formal Initial Stakeholder Meetings, November 2005
3G.3 Main Stakeholder Consultations and Workshops, February 2006
3G.4 Summary of Stakeholder Comment on Environmental and Social Impact Checklists
3G.6 Stakeholder/Informant Contacts
• Government of Pakistan, Islamabad
• International Organisations
• Government of Sindh Province
• City District Government of Karachi (predecessor and present organisations)
• Karachi Electric Supply Corporation
• Farmer Organisations
• Other local NGOs
• Private Sector enquirers interested in replication/products purchase/investment
• Ambassador of Pakistan in New Zealand and New Zealand Government Agencies
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3.A: Cattle Waste Disposal at Landhi Cattle Colony

Cattle dung is loaded into barrows and taken from the cattle sheds to a trough, where it is mixed to a
slurry, and released via a channel into an open drain……
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…. on the road. It is eventually washed down to the adjacent coast. Note the discolouration at
the outfall, compared with the coast photographed from the same spot, in the opposite direction,
where a small fishing village is located. The waters are eutrophying, and the mangroves dying,
severely affecting fishing livelihoods in the area.
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There is an open-sided abattoir at the colony. Abattoir waste soaks away on adjacent open ground.
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Flies swarm over the milk awaiting


collection. There is great demand for
ice to store both milk and fish, but
though the grid is only half a
kilometre from the colony, power
supply is erratic. Many farmers have
resorted to purchasing private diesel
generator sets to assure supply.
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3.B Schematic, Government Veterinarian’s


Office

Note the proximity of the katchi abadi and the blue areas marked “survey”, bottom right, where new farms are planned

3.C Cattle population, 2005


Number Name of Town Livestock Population
1 Bin Qasem 342500
2 Landhi 8073
3 Korangi 44427
4 Shah Faisal 49402
5 Malir 79254
6 Gadap 152500
7 Gulshan-E-Faisal 10900
8 Liaqatabad 5000
9 Gulberg 8500
10 New Karachi 23500
11 North Nazimabad 12000
12 Jamsheed 18325
13 Sadder 2500
14 Lyari 11865
15 Orangi 49500
16 Baldia 95350
17 Site 19905
18 Kiamari 14800
Total 948301
Data Source: Dr Abdul Hafeez Shaik, Senior Veterinary Officer in Charge, Government Veterinary Hospital, Landhi
The top three areas are collectively referred to as “Landhi Cattle Colony”, and are in the project area.
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Annex 3.D
INITIAL ENVIRONMENTAL EXAMINATION
AND NO OBJECTION CERTIFICATE

Initial Environmental Examination


of the
Biogasification of Cattle Waste
at
Landhi and Bin Qasim Cattle Colonies
Karachi, Pakistan

Project developers

The National Engineering Corporation (NEC)


Karachi, Pakistan

Empower Consultants Limited


Wellington, New Zealand

December 2005
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Project Data

Location Landhi Cattle Colony


Bin Qasim Town
Karachi
Pakistan

GPS location N 24 49.8.12’


E 067 15.9.12’

Contact details

Counterpart:
The Society for the Environmental and Economic Improvement of Cattle
Colonies in Karachi (SEEICCK)
5-7 Deh Kanto, Main Bhains Colony Road
Karachi, Pakistan
Focal Person: Syed Abu Akif

Local Consultant:
National Engineering Corporation (NEC)
202 Sea Breeze Plaza
Shahrah-e-Faisal
Karachi, Pakistan
Tel +92 21 2778 8336-7 Fax +92 21 2778 2481

Focal Person: Syed Feroz Shah

Applicant:
Empower Consultants Limited (ECL)
PO Box 28145
Wellington, New Zealand
Tel 64 4 471 2525 Fax 64 4 471 2526
Focal Person: Tony Woods, Ann McLean
Email twoods@mpwr.co.nz,
amclean@mpwr.co.nz
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MAP OF PROJECT AREA AND ENVIRONS

Karachi Centre Project area

Industrial zone

Table of Contents

I. MAP OF PROJECT AREA AND ENVIRONS...................................69

II. A. INTRODUCTION................................................................................71

III. B. DESCRIPTION OF THE PROJECT ...................................................72


A. Type of project ........................................................................72
B. Need for the project.................................................................72
C. The Process .............................................................................73
D. Advantages to the local environment and communities..........74

IV. C. DESCRIPTION OF THE ENVIRONMENT.......................................74


A. Ecological resources................................................................75
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V. D. SCREENING OF THE POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION 76


A. Environmental Issues relating to project location ...................76
1. Resettlement...............................................................76
2. Encroachment on cultural or recreational areas .........76
3. Access ........................................................................76
4. Air quality ..................................................................76

B. Environmental Issues relating to construction and operations76


1. Acquisition of land.....................................................76
2. Noise and visual pollution..........................................77
3. Water run-off..............................................................77
4. Impacts on marine and aquatic life ............................77
5. Environmental issues relating to energy conversion..77
6. Impact on power use ..................................................78

VI. E. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN 78


A. Land acquisition ......................................................................78
B. Noise pollution and access ......................................................79
C. Visual pollution.......................................................................79
D. Impact on marine life ..............................................................79

VII. F. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE79

VIII. G. FINDINGS AND RECOMMENDATION ..........................................79

IX. H. CONCLUSIONS..................................................................................80
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A. INTRODUCTION
The Cattle Colony Landhi (as Karachi’s largest concentration of milch animals is known) is located some
30 km East of Karachi, Pakistan17. This area is home to literally hundreds of thousands of cattle. There is
no formal or informal waste treatment infrastructure, leading to all waste ending up in the nearby sea.

In 1998 this situation was noted by an Empower Consultants staff member in consultation with a local
group representing the cattle farm owners, the Dairy Farmers Association. The obvious need for a
solution was relayed back to Empower engineering staff back in New Zealand. Empower staff visited the
site and began a participatory process of identifying solutions to the waste stream, discussing impacts and
potential activities to address the core problems.

The solution identified to mitigate the problem of sewage dumping is the bio gasification of raw dung to
make fertiliser and natural gas. This process can be undertaken for processing raw dung from nearby
farms on disused government land within Landhi – especially a tract on which abandoned concrete tanks
are already in place. Consultations were opened with a local NGO, The Society for the Environmental
and Economic Improvement of Cattle Colonies in Karachi (SEEICCK) with the intention of ensuring
local participation in the project and sharing in the positive project outcomes.

This Initial Environment Examination therefore seeks to clarify the present nature of activities in the
cattle colony area to demonstrate that the proposed biogasification activity will have no negative impacts
whatsoever, and will, in fact, improve social and environmental conditions greatly from their present
condition.

Acceptance of this IEE will provide an assurance to project proponents and investors that positive impacts
of the project for local residents and the environment in general are greater than any negative impacts, if
any negative impacts are present at all.

Landhi cattle colony is by far Pakistan’s largest animal colony. Originally intended to hold 15,000 cattle,
the area is now bursting at the seams with around 350,000 head. Animals are tethered in covered stalls
equipped with feed and water troughs – and little else. Sloping concrete floors allow liquid waste to drain
directly to open drains in the street. Solid waste is usually barrowed out into the street and and soon forms
mounds between houses and in open spaces or is mixed into a watery slurry and drained into open sewers
where over time it makes its way down to the sea. Dried effluent blows around the region creating a
health hazard. At 12-18 kg of waste per animal per day, an estimated 8,000 metric tonnes (8,000,000
kilograms) of waste is dumped on the streets, waste land or the coast each day. The environmental
impact of this volume of waste being introduced into the local environment every day is enormous.

Specifically, when organic material is dumped into water, or onto open land, it starts a process of
decomposition. This process is a chemical reaction in which the organic material consumes oxygen while
breaking down into other materials. When this reaction occurs in water, the rotting material acts like a
sponge, sucking all available oxygen out of the water and suffocating any other organisms present that
need oxygen to live.

17
On account of administrative restructuring of the Karachi City Government, the greater portion of the Cattle
Colony is no longer in Landhi town, but is now in the adjacent Bin Qasim Town; in addition to this concentration,
large numbers of milch buffalo are dispersed throughout the city.
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In addition, since much of this decomposition has high biological oxygen demand (BOD) it takes place in
the absence of oxygen, and large quantities of methane gas are created. Methane is a very harmful
greenhouse gas, and is rated as being 21 times more damaging than Carbon Dioxide. Thus not all the
environmental damage is visible.

Originally the dung from the area was a source of income for local people and
was utilized for agricultural purposes not only in the rural areas close to
Karachi but was also exported to the UAE and elsewhere in the Middle East.
A rinderpest outbreak in the cattle colony in the mid 1990’s led to the
immediate cessation of this trade. Buyers in the Middle East found other
suppliers in India and Bangladesh and have not returned to Pakistani suppliers
despite the control of rinderpest disease. However these marketing contacts
will be revisited in the course of this project to see if a restart of these exports
can be achieved. Other cattle diseases are held in control by intensive
vaccination. Feed is supplied to the animals via a daily convoy of trucks from
surrounding farming areas in a 100 km radius. Trucks tend to return to the
farms empty. Trucks are generally open-sided and unsuitable for carrying wet
dung.

There is limited sanitation even for humans. Water is piped from a lake about
80 kilometres distant in Sindh. Given the fact that demand outstrips supply,
water in Karachi is in very short supply, and is generally untreated and of low quality. Some residents
have sunk wells, which yield brackish water, since the colony is low lying, only half a kilometre from the
coast.
B. DESCRIPTION OF THE PROJECT
Type of project

The project can most accurately be described as a waste to energy project.

Raw dung is to be collected and placed into a


digester; fertiliser and methane gas are to be
extracted at the end of the process. The result of
the project will be a reduced waste stream into the
environment, improved living conditions and on a
wider view, improved employment and income
generation opportunities.
Need for the project

The need for the project is clear and


unmistakeable. The scale of the damage caused through the dumping of untreated effluent into a coastal
environment is large, and can only be improved through a process that prevents or reduces raw dung
entering the local environment. Local fisheries and mangroves suffer badly under the volume of waste.
On land the dumping of dung occupies almost all open public space and is an unattractive sight, adding to
the difficult living conditions of local people and impeding economic growth and employment in the
cattle colony areas. There are other more appealing locations in Karachi for investors to build new
businesses.

This project will add value to the raw dung and provide an incentive to the farmers to ensure that it is not
dumped, but rather is sent to the digester to earn a return. In time, when a larger scale project is
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commissioned, energy generation will provide grid stability in Bin Qasim/Landhi and will further
improve the investment environment by cleaning up the local environment.

The reverse of the question ‘is there a need for this project’ is to ask what would happen should the
project not proceed. In the absence of the project, 8,000 tons per day of raw dung will continue to be
dumped, and the local people and environment will continue to suffer its effects, both directly and
indirectly.

The Process
The plan to reduce this massive environmental impact is to use the waste as a raw resource for a waste to
energy based community-owned business. By building infrastructure that demands biodigestable waste
as a feedstock, the project is attaching a financial value to the dung and creating an incentive to use, rather
than discard it.

The process of biodigestion is well proven and understood. It involves the collection of biodegradable
waste, mixing it with water and placing it into an airtight container. Once inside, the mixture will start to
rot and break down. During this process gases are produced including Methane (approximately 60%),
Carbon Dioxide (approximately 39%) and Hydrogen Sulphide (approximately 1%). In particular, the
Methane (otherwise known as natural gas, or CH4) is able to be cleaned, dried and used productively.

The rotting process is completed after approximately 3 weeks, after which time the slurry is removed
from the tank and dewatered, yielding a nutrient rich liquid fertiliser and a solid, composted fertiliser.
The fertiliser is richer in nitrogen than raw waste as compared to the decomposition process occurs in the
open whereby nitrogen is lost in the form of evaporating ammonia.

This solid fertiliser can be easily packaged into 50 kg sacks, ready for transport. In this format local truck
owners are very keen to transport it back to the farms. As described, trucks presently arrive in Landhi
from region wide farms laden with fodder for the cattle, but they usually make the return trip empty as the
wet, unprocessed and unpackaged dung has too low a value to make it worth carting. In addition, the
trucks are not suited to loading or carrying a material such as wet dung.
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The general process is illustrated below in this schematic.

Gas production Anaerobic Digester

60% methane
40% Carbon Dioxide

Scrubbing Biogas is scrubbed and


CO2 + sulphur is removed Organic fertiliser

Drying Pure methane gas is dried to Hydroponics


remove water vapour

Compression Pure, dry methane gas is


compressed for use

Electricity Bottled gas for Steam


plus heat cooking and and/or ice
heating

Advantages to the local environment and communities

Key advantages of this process are:

• Waste is not dumped into the local environment. Instead it is collected, processed into a high grade
fertiliser and returned to the farms
• Waste is used productively i.e. the waste will be converted to energy and high grade organic fertiliser.
• Clean water, already in short supply, is saved from being lost through the drains into the sea.
• Provision of additional source of income for local people.

C. DESCRIPTION OF THE ENVIRONMENT


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Landhi Cattle Colony is located on the coast some 30 km east of the


main city of Karachi. It is flat, devegetated and windswept clay land.
The meagre and heavily polluted Korangi Creek recently identified as
Pakistan’s most polluted waterway borders the colony and joins the
coastal delta, which is flanked by mangrove swamps that are
increasingly dying at points where cattle effluent is flushed out to sea.
The national electricity grid and a gas pipeline cross the area.

Households in the colony are accommodated within walled compounds


shared with cattle. Compounds measure from around 1500 to 6000m2.
Typically the back half of each rectangular compound is occupied by
covered open-sided cattle stalls, occupied by up to 200 head of cattle.
In front of this, about one quarter of the land is dirt yard where the
animals are released for brief periods of sunshine. The street front
quarter of the compound accommodates the sheds where feed and tools
are stored, and the dwelling where the farmer’s family and labourers
live. The farms produce untreated milk for the Karachi market and also
Typical cattle stands in Landhi
meat from an open abattoir which is also located in the vicinity..

Ecological resources

The UN’s State of the Environment Report (draft, 2005) states that Korangi Creek is the most polluted
section of the Karachi coast, where the effluents from Korangi, Landhi, Karachi export processing zone
and various industrial plants discharge an estimated 2,500 industrial units of untreated organic and toxic
waste into the creek waters. In addition, waste and sewage from the city of Karachi and other settlements
are also discharged here. This has resulted in the contamination of fisheries and other aquatic fauna and
poses severe health risks to people from drinking polluted water and eating contaminated fish.

The discharge of waste also adversely impacts the ecology of the area. Industrial and organic waste have
altered water temperatures thus causing stress on fish eggs which in turn has affected fish and shrimp
populations in the area. The UN report states that recent data collected indicated “…… the loss of fish
resulting in low catches, aggregation of hardy tolerant species not of significant economic value and body
deformation among the resident species…… Various species of fish, crabs and shrimp have migrated due
to pollution during the last 30 years……” Some marine species such as sea cucumbers, sea urchins and
oysters have totally disappeared from the area.

Bird populations in the area are also affected as the


consumption of contaminated fish threatens and
reduces bird species. The decline in aquatic fauna
that serves as food for birds further reduces their
populations. Due to the scarcity of fish in the area,
the numbers of jackals and wolves have also been
reduced.

The mangroves in the area are also under severe


threat due to low levels of fresh water discharged
into the sea, scarcity of rain and waste discharged.
Mangroves act as a barrier to tidal surges, are
important nursery beds for fish and shrimp and their
A section of polluted beach below Landhi stream
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destruction from coastal pollution will have a significant impact on Pakistan’s marine resources, wildlife
and fishing industry.

This picture of ecological stress clearly cannot be attributed to waste from Landhi alone but to the
combination of pollutants from the various industries, manufacturing as well as household waste. But the
dumping of an estimated 8,000 metric tons of wet dung each day onto the streets and ultimately into the
coastal areas is a significant contributor to environmental damage. The removal of this organic waste
may assist in the rehabilitation of marine life over time.

There are no known sites of cultural, historical, religious or recreational significance in the area which
will be impacted by the project. The site for the demonstration stage is a dump site currently not in use
and the area earmarked for the upscaled project is located in disused sections of government owned land.

D. SCREENING OF THE POTENTIAL ENVIRONMENTAL IMPACTS AND


MITIGATION Measures

The environment in the project area is under severe stress. We are confident that the project will not
introduce new adverse impacts, but rather should improve and enhance the environment. Below is a list
of potential impacts which bear consideration:

Environmental Issues relating to project location

Resettlement

There will be no resettlement of communities as a result of this project. There is no requirement to


acquire land for construction of additional facilities during the demonstration stage. Existing buildings
will be rehabilitated and used for this purpose. The Karachi City District Government authorities have in
principle granted access to some waste land currently used as a dump as the site for the demonstration
project. There are some digester tanks, currently not in use, already on the site.

Encroachment on cultural or recreational areas

The area has no known sites of cultural significance which will be negatively impacted. The project will
not encroach on land used for cultural or recreational purposes. No significant construction of facilities
will be required during the demonstration phase.

Access

The project will not require the building of new access roads. It will also not restrict access for local
people. On the contrary, it is expected that the project will enhance the local living environment and
increase access to rehabilitated land in the form of planted parks and gardens.

Air quality

The project will not diminish air quality for residents of the area. In fact it should improve it as the wet
animal dung will be removed from the streets and open drains and enclosed and turned into fertiliser thus
improving both air quality and general health of the residents.

Environmental Issues relating to construction and operations


Acquisition of land
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There are potential environmental impacts related to the construction of a biodigester and related
buildings needed for the up-scaled project. This will take the form of 20 hectares required for the
buildings and plant and city district authorities have provisionally earmarked a large tract of desert land
immediately east of the present colonies for this purpose. It is possible that ongoing investigations into
layout may result in a larger number of smaller installations being a preferred option. There are no
settlements on the plot of land suggested and therefore no resettlement is envisaged. It is not a unique
environment and is not believed to house unique or endangered species. It is also not known to contain
cultural or religious sites and no particular scenic or recreational values. The structures to be built will
not introduce new toxic materials into the environment.

Noise and visual pollution

These are not anticipated during the pilot phase. Trucks are already coming into the area to deliver feed to
the cattle and traffic will not be significantly increased as a result of the project.

There may be some disruption in the form of noise pollution associated with the refurbishment of the
biogas plant and landscaping of the existing site. This will be temporary and expected to last not more
than 2 weeks.

The biogas plant to be built for the future up-scaled project will look like a large city water treatment
plant. Visual pollution can be minimised by planting trees around the perimeter of the plant, sustained by
the liquid effluent from the plant. The plant will be an industrial structure but will remove noise, smell,
traffic and pollution from a much larger residential and commercial area, so is considered a large net
environmental benefit.

Water run-off

At present large quantities of water are used each day to flush cattle waste into the sea. Measurements to
ascertain the exact amount is underway, and preliminary measurements suggest approximately 50 cubic
meters of water is used per day to sustain and clean a herd of 200 cows. Approximately 8 cubic meters
are drunk by the cattle, and an estimated 20 cubic meters is still required for washing the animals
themselves and hosing down the floors. This still leaves savings of 20 cubic meters per day per 200 cattle
of water presently needed to flush raw dung down the drains. This equates to 100 litres of water saved per
animal per day. Since the pilot will work with 4,000 animals, it can potentially save around 400 cubic
meters of sweet water per day. The large scale project would potentially save around 40,000 cubic meters
of sweet water per day.

Impacts on marine and aquatic life

Currently much of the estimated 8,000 metric tons of dung produced each day by the cattle colony is
washed into the sea. The coast by the outfall from the colony is heavily polluted with this organic waste.
Tidal drift carries industrial waste from the Korangi stream that flanks the export processing zone
immediately to the west of the main colony. Mangroves in the area are dying and the livelihoods of
fishers are threatened. Water and soil analysis close to the outfall are being conducted to provide
quantified baseline information on coastal conditions. It is anticipated that the project will remove the
bulk of the organic waste and may even permit the recovery of coastal plant and marine animal life over
time.

Environmental issues relating to energy conversion


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The biogasification of animal waste produces methane gas. Given the huge volume of dung present in
Landhi it is expected that very large quantities of methane can be produced from the pilot plant. While
the exact amount will be measured once the pilot is operational, early calculations suggest that
approximately 1,000 kg of methane can be extracted and utilised productively each day from the
incoming waste from the 4,000 head of cattle.

Methane (CH4) is a particularly harmful greenhouse gas. One ton of methane has the same damaging
impact on the earth’s atmosphere as 21 tons of carbon dioxide (CO2). For this reason even capturing and
combusting the methane has a positive environmental result as according to the combustion equation for
methane

CH4 + 2O2 = CO2 + 2H20

One molecule of methane will produce one molecule of carbon dioxide when burned, but carbon dioxide
is only 1/21st as damaging as methane, therefore a net positive environmental result is achieved through a
process of simple combustion.

In actual fact the result will be even more positive than this as the combustion of methane will be done in
a manner where it is used to generate electricity, or produce ice, or perform some other productive
purpose. It is therefore reducing the demand for energy from other sources, which is largely oil
generated. This saving of fuel oil is an additional environmental benefit not reflected in the simple
equation above.
Impact on power use

The project is expected to reduce power use by up to half the present usage. Presently, farmers use
pumps, typically 1 kW for about 4 hours a day to pump the water used to flush the waste into the drains.
It is estimated that about 1,400 kWh of power can be saved per farm annually resulting in savings for the
farmers of approximately USD 150 per year per farm, a significant saving in a poor neighbourhood. This
also has a positive environmental impact by reducing the total energy demand placed on the national
power grid, albeit in a small way.

E. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN


The project will bring a number of net environmental benefits. In particular, it will:

• significantly reduce the amount of waste being washed into the sea;
• reduce water use for flushing the waste out of the cattle sheds;
• help to improve marine life as well as the sanitary condition of the area;
• reduce use of electricity and subsequently result in significant savings to poor farmers
• Receive offal with no commercial value from the abattoir adjacent to the biodigester site, and by
mixing offal together with the dung enhance the fermentation process and the fertiliser quality.
• Improve the overall living conditions for local people

Below we list minor impacts and the measures which are being taken or will be taken to mitigate them:

Land acquisition
One hectare of land will be required to build the pilot biodigester plant. At this stage this plant will be
built on disused land owned by the Karachi City Government. Meetings have been taken with the
Investment Cell of the Chief Minister’s office and conceptual granting of the land has been given. A
formal approval and granting of access and use of the land for this project is now underway with the
Karachi City District Government authorities.
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Noise pollution and access


There will be some noise associated with the building of facilities but this is expected to be temporary
only. This additional temporary impact needs to be seen in the context of the current situation where
there are already large numbers of industries present. However, the project will ensure that the local
people who will be affected will be informed of plans for construction, how long the construction phase
will last and what steps could be taken to minimise noise or dust, or any access issues which residents
may face.
Visual pollution
The biodigester plant will resemble a large water treatment plant. To reduce its visibility trees will be
planted around it. The planting of trees in the surrounding areas will also create new green spaces for the
people in the area. At present there are no public green areas in the vicinity. Given that at present the site
has existing concrete tanks already constructed, and the land itself is simply one large dumping ground of
rubbish and animal waste, it is difficult to consider any remedial works as likely to have a negative visual
impact on the environment. A very considerable improvement is expected.
Impact on marine life
The waste from the cattle colony pollutes the coastal area by the outfall. The pilot project will reduce the
amount of waste being washed into the sea by 80 tons per day and thus begin to improve coastal
conditions and marine life. Only when the larger plant is constructed in the future, and the 8,000 tons per
day of waste is also captured and processed will a significant improvement be noted in the marine
environment. The Pakistan Council for Scientific and Industrial Research (PCSIR) is conducting soil and
water analyses to obtain baseline information against which quantifiable changes can be monitored over
time and appropriate action taken to minimize adverse impacts.

F. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE


The demonstration project is endorsed by the Alternative Energy Development Board in the Prime
Minister’s Secretariat, Islamabad. Policy level stakeholder consultations have included the Planning
Commission, Ministry of Environment, the Pakistan Council for Renewable Energy Technologies, EPA
and the relevant regulatory authorities, NEPRA and OGRA. All have given their blessing. Local
consultations have been undertaken with farmers groups including the Karachi Dairy Farmers Association
and the Dairy Farmers Association of Karachi. NGOs in the Landhi and Bin Qasim area have also been
consulted, including the Majeed Colony Social Welfare Association, the Sindh Welfare Association,
Danish Welfare Society and the Young Generation Welfare Association. In addition to this the project
proponents have been in open and ongoing consultation with Sindh and Federal government offices to
ensure that information is transparent and available, and that any public concerns or opportunity for
project improvement is identified and incorporated.

To date there has been no negative feedback regarding this project from any sector, both within central or
local government or from the public. Multiple letters of support have been received over the last 8 years
since the concept was first proposed. Such letters have been received from the following offices after
discussion and disclosure of planned project activities.

• Government of Karachi, Chief Minister’s office


• City Nazim Karachi
• Sindh Environmental Protection Agency
• Alternative Energy Development Board
• Pakistan Council for Renewable Energy Technology
• Ministry of Environment

G. FINDINGS AND RECOMMENDATION


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Initial investigations into the environmental situation at Landhi indicate strongly that a process to prevent
animal waste entering the marine or local land environment is badly needed. While this pilot project will
only address the processing of around 1% of the total waste stream, the data collected and functional
demonstration model will facilitate investment in the future that will harness the larger waste stream.

The project team recognises the Sindh EPA as an important project partner with a clear mandate to work
towards the protection of the Sindh environment. It is recommended that clearance be provided for the
pilot project to proceed, based on the following:
• The land required is degraded and disused, and the tank structures needed are already in place and
require only remedial works to be put into action.
• No negative impacts have been identified, other than limited noise from the landscaping activities
over a two week period.
• Wide public and government support is present.
• The environmental damage at present is significant and requires a systematic and sustainable
approach to identify a long term solution.
• The pilot project will generate employment, income and improve the local environment.

H. CONCLUSIONS
Since the pilot is essentially a test case for a larger installation, a revised version of this IEE, or if required
a full EIA may be submitted before investment in the larger facility if required. Assuming clearance of
this IEE, the pilot project could be expected to be in operation by the end of 2006. A monitoring period
of 12 months is then recommended to obtain data related to the actual performance of the plant from
financial, social and environmental perspectives.
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3E: NO OBJECTION CERTIFICATE, ENVIRONMENTAL PROTECTION AGENCY,


SINDH
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3F: LETTERS AND DOCUMENTS SUPPORTING THE PROJECT


3F.1 FARMER ORGANISATIONS
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3F.2 LETTERS OF SUPPORT FROM GOVERNMENT AND


OFFICIALS
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3F.3 ASIAN DEVELOPMENT BANK


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Annex 3.G
STAKEHOLDER CONSULTATION
3G.1 PARTICIPANTS’ ANALYSIS OF SUSTAINABLE DEVELOPMENT IMPACTS
Parameter Comments Score
Local/regional/global An IEE has been completed, and a No Objection +2
environment Certificate received from Sindh Environment Protection
Agency. The documents are appended. The activity is
viewed as environmentally very positive in environmental
impacts on land and water as well as air.

• Water quality and The baseline business-as-usual scenario involves using +2


quantity fresh water carried from a storage lake some 80 kms
distant, as well as well water, to flush the dung into the
drains. The waste eventually drains out to sea. A water
meter placed at one farm with 200 cattle for six weeks in
winter measured consumption at an average of 34m3 per
day18. Conservatively allowing 40 litres for drinking and
a further 40 for hosing each animal per day, the balance
of this water consumption is used for flushing.
Extrapolating, this would amount to around 44,000 m3
per day for the whole colony. Deducting water required
to dilute the dung to 9% solids in the planned digester
(which may be at least partially recycled) net savings of
fresh water per day in the colony will be of the order of
30,000 m3. Dung dumped on the ground awaiting
flushing must also be presumed to contribute to the
contaminated ground water in the immediate colony
area, about 3 km2. The project will mitigate this source of
contamination, though other sources e.g. from factories
in the adjacent export zone will continue to pollute unless
checked by enforcement of law and regulation.

• Air quality (emissions The project area is clay soil desert. The project will +1
other than GHGs) remove much of the dung that at present dries, is picked
up by wind, and contributes to particulate matter in the
air. This will be small benefit.

• Soil condition (quality The project has the potential to produce 7,200 tonnes of +2
and quantity) organic fertiliser/soil conditioner per day. Integrated
plant nutrition management specialists report that
application of 25 kgs of organic manure per hectare per
crop, usually two per year, to substitute for one quarter of
inorganic fertiliser otherwise used, improves uptake of
inorganic fertiliser, yields, soil structure and moisture
retention. At these rates, the project will continuously
improve the structure and fertility of 10.5 million hectares
of land per annum19.

• Biodiversity (species The project footprint will not affect any area of particular +1

18
Project preparation research in association with the President, Dairy Farmers Association Karachi
19
National Fertiliser Development Centre 2000, p14, Proceedings of Symposium on Integrated Plant Nutrition
Management, Islamabad NFDC Planning and Development Division
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and habitat conservation or cultural value. It will remove substantial


conservation quantities of foreign matter from about 5 km2 of this
desert environment, and from the adjacent coastal
waters. In the absence of any other sources of pollution,
this may be expected to allow the natural species to
recover.

Social sustainability and


development
• Employment (including The immediate area is characterised by inflows of +2
job quality, fulfilment of refugees and internally displaced rural people seeking
labour standards) jobs. Most are poor, have limited education or skills.
Many live in katchi abadi, informal slum dwellings. The
project will generate a substantial number of labouring
jobs. One worker can shovel and transport about two
tonnes of wet dung per day from the cattle sheds to the
collection point. To move 7,200 tonnes per day requires
about 3,600 workers. About half of these will be
additional to those already employed as shed hands,
since the baseline practice of flushing the dung is less
labour-intensive. The project will therefore create an
additional 1,500-2000 labouring jobs delivering the dung
to pick-up points, and bagging the dried effluent at the
plant. The dried effluent, 1,600 tonnes per day, will
require 32,000 x 50 kg bags per day, creating work
stitching and printing the bags. Three NGOs with
“industrial homes” where women may work in conditions
that respect the local social norm of segregation and
relative seclusion have been approached for expressions
of interest in performing this work, targeting particularly
poor women. All are interested. If a worker can stitch
and print ten bags per hour, this will create 400 full time
equivalent jobs for women. Within the enterprise itself,
ten management jobs will be created, and about thirty full
time equivalent skilled and semi skilled positions will be
needed to run the plant around the clock in three shifts.
The developers have a public commitment to corporate
social responsibility, and will ensure that workers’
conditions meet or exceed all legal requirements. In a
poor area, this project will have significant positive
employment impacts.

• Livelihood of the poor In addition to the direct employment benefits, the project +1
(including poverty will have trickle-down benefits to all residents, about two
alleviation, thirds of whom are classified by the Social Welfare
distributional equity, Department of the City District Government as poor.
and access to These will consist in improved family incomes, improved
essential services environment and amenity. The developers’ Corporate
Social Responsibility policy commits it to allocating 1% of
revenues to charitable causes20. Community
consultations have revealed the priority of local groups to
be provision of a public health facility and a secondary

20
http://www.marubeni.com/csr/index.html, accessed 28 November 2006
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school in the area, both currently lacking. The project


can also facilitate greening of public spaces, using the
liquid effluent. This will create generalised social benefit
for the poor.

• Access to Energy Karachi Electricity Supply Corporation suffers from +2


Services insufficient capacity. Its 2005 Annual Report records an
actual generating capacity of 1,387 MW against a
demand of 2,197 MW in its licence area. Its response is
frequent both scheduled and unscheduled brown-outs.
These are particularly severe in the project area, which is
adjacent to an industrial and export zone. Additional
generating capacity in the area will be an unmixed
blessing

• Human and The project will have benefits in improving capability in +2


institutional capacity the persons who are trained as operators and managers.
(including government, As this is the first plant of its kind planned in Pakistan,
education, the skills it generates will be new, and add to the
involvement, gender) country’s overall skills pool. The project will specifically
add to technical and scientific skills, and to laboratory
capacity in the area, currently rated in the 2005 State of
Environment Report as generally inadequate. This is
one of the reasons why infractions of environment law go
unprosecuted; there is insufficient accredited laboratory
capacity to analyse data. Government at all levels and
relevant sectors has been consulted throughout project
development, and the project will increase awareness of
the opportunities to utilise cattle waste beneficially. It will
provide a solution to the problem of management of
cattle waste that will lay the foundation for prosecution of
infringements of environmental law in dumping in
ditches. It will also raise awareness at institutional level
of the potential for beneficial municipal solid waste
management and sewage treatment, neither of which is
yet practiced in Pakistan.

Economic and
technological
development
• Employment As explained above the project is expected to create +2
(numbers) new FTE jobs as follows:
• 1,500-2,000 labourers
• 150 truck drivers*
• 400 seamstresses
• 10 management*
• 30 semi-skilled plant operators*
Creation of employment is an important aspect of socio-
economic benefit from the project. Those positions that
are under the direct control of the project will be
monitored. Those that are not under direct control of the
project may be assessed in consultation with the
contractors of those services through farmer
organisations and suppliers of goods such as bags
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essential to the operation of the project plant. Impacts.


Informants will be asked for gender-disaggregated data
to assess benefits for women.

• Balance of payments Pakistan’s imports of mineral, fuels, lubricants and +2


(sustainability) related products cost US$ 5.2 billion in 2005-06, up 28%
on 2004-05. The costs for the first six months of 2006-
07 are up 67% compared with the first six months of the
preceding year21. This illustrates a trend to both higher
international market prices as well as increased
consumption, which is a driver in Pakistan’s policy to
utilise indigenous renewable energy to the maximum
extent, and to substitute imports with indigenous supply.
The aim is to supply 10% of final energy consumption
with renewables by 2015. The project will generate
around 25 MW. KESC’s thermal generating costs in
2005 averaged USD 235,000 for each operational MW of
installed capacity22. The project could therefore
potentially save US$D 5.8 billion of foreign exchange per
annum at 2005 values through substitution of imported
oil fired generation. In fact oil prices have risen sharply,
and at today’s prices, which have risen some 27%, the
savings would be around USD 7.4 billion.

Urea manufacture takes priority over other demands for


indigenous natural gas. Due to plant size constraints,
demand is not met, and the country imports urea. With
petrochemical price rises, recently this has doubled in
cost to Rs 1100 per 50 kg bag. Using a recommended
substitution rate of 25% organic fertiliser23, the project
could displace 130,000 tonnes of imported urea per
annum. At today’s prices and exchange rates, this has
an annual value of USD 48 million.

These are sustainable savings, and will be arithmetically


increased by replication.

• Technological self- Biogasification is a relatively simple and well known


reliance (including process. The technology required for the project includes
project replicability, precision electronic equipment for metering and control,
hard currency liability, but is not difficult to source or sustain in Pakistan. Other
skills development, materials and equipment are standard construction and
institutional capacity, goods handling equipment; concrete, pumps, conveyor
technology transfer belts, etc which are familiar, easy to resource and
service.

The last decennial livestock census completed, in 1996,

21
http://www.statpak.gov.pk/depts/fbs/statistics/external_trade/trade_14_3.html, accessed 5 December 2006
22
KESC Annual Report 2005
23
National Fertiliser Development Centre 2000:14, Proceedings of Symposium on Integrated Plant Nutrition
Management, Islamabad NFDC Planning and Development Division
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records 40.7 million cattle and buffaloes around the


country24. When available, the 2006 census may be
expected to reflect the same increase in numbers as the
past two; numbers have increased by 8 million between
each census. With a probable 50 million cattle and
buffaloes in the country, the opportunities for replication
are huge. Conservatively estimating that only half this
number is stall-fed or sheltered at night, and that a
further half may be too scattered to make dung collection
realistic, there are probably a further 12 million cattle
whose waste could be profitably converted into energy
and fertiliser. At least 600,000 of these are in smaller
colonies around Karachi. A further 100,000 each are at
Sarghoda and Okara. Military cantonments scattered
around the country often have colonies of 1,000-5,000
head of cattle. These populations are prime candidates
for project replication. The pursuit of the project in a
pilot and a full phase will assist replication, as the pilot
plant will be of similar scale to many other colonies in the
country.

There will be no hard currency liability from the project,


since most construction components are locally
available, and the project will be implemented by private
sector developers.

The project will develop new skills based on old folk


technology. Though job-specific training is required,
none of the prerequisite skills is difficult to resource in-
country especially in the Karachi area, and other labour
is super-abundant.

24
http://www.statpak.gov.pk/depts/aco/statistics/livestock/livestock.html, accessed 5 December 2006
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3G.2 SCHEDULE OF FORMAL INITIAL STAKEHOLDER MEETINGS, NOVEMBER 2005


Initial Stakeholder Consultation Schedule, 11 – 30 November 2005
Day Date Location Activity Contact Address Purpose
Fri 11 Nov Karachi Meeting Syed Meet, discuss and confirm programme with local partners
Akif and NEC

Karachi Meeting Syed Abu Ahmad Akif Present draft programme and survey questionnaires,
SEEICCK establish priorities, logistics
Sat 12 Nov Karachi Landhi Transect survey. Plan meetings with women and other
community groups after Islamabad visit
Sun 13 Nov Islamabad Depart for
Islamabad
Mon 14 Nov Islamabad AEDB Brgdr Dr Naseem Rm 344-B Logframe; discuss overall project plan and participation,
Khan, Secretary PM’s Secretariat elicit assistance with meetings with policy level stakeholders
Technical Constitution Ave
Islamabad
Tel 922 3427
Isesps_pk@yahoo.c
om
PARC Dr Zahid Hussain Cattle colony numbers, locations, sizes and conditions.
Opportunities for fertigation and hydroponics
PCRET Dr Parvez Akhter Pakistan Council of ADB PREGA focal point. Overall project plan and report
Renewable Energy format, elicit information about sector status at present,
Technologies, 25, H- participation/support in project e.g. for workshop.
9, Islamabad
92(051)9258228
Fax:
92(051)9258229, -
akhterp_dr@hotmail
.com
Tue 15 Nov Islamabad ADB Raza Mahmood Project Identity between ADB and government policy in this area.
Farrukh Implementation
Officer
Islamabad MPOE D.G. EPA Mr Asif Present project, aims and objectives. Request information
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EPA Shuja Khan about regulatory requirements, standards applicable to


DG Member PNRA demonstration project, CDM mechanisms
Wed 16 Nov Islamabad NEPRA Lt Gen Saeed uz OPF Building Discuss regulatory framework that would apply to Landhi
Zafar, Chairman 2nd floor selling to the grid; steps, timing, costs of approvals
Abdul Ghafoor Solangi Sharah-e-
(IT) Jamhooriat Sector
Dr Tehseen F Chohan, G5/2
Inst’l Building and Co- Islamabad 44000
ordination Tel 920 7200
Muneer Sheik Director
(Standards) Mr Abdul
Rashid Karkar

AEDB Brgdr Dr Nasim Khan Energy balance, RE targets, obligations under Kyoto
protocol and strategies to meet them. Replication potential.
Thur 17 Nov Islamabad Ministry of Mr Khizar Hayat CDA How does GoP measure GHGs at present? How are GHG
Population and Joint Secretary Block#4 emissions verified? Who owns the credits? Who is
Environment International Co- Old Naval HQ responsible for solid waste management? What is the
Kyoto Protocol operation Down the road from policy? What opportunities exist for improvement at policy
focal point Dr Syed Sajidin Holiday Inn and practical level? What are the constraints to
Hussain Near Lal Masjid improvement? Are there any problems with the concept in
In Charge, CDM cell terms of environmental or social impact?

National Dr Nisar Ahmad Street No.1, H-8/1 Potential to include organic fertilisers from Landhi in NFDC
Fertilizer Chief/Project Director PO Box 3104 strategy and marketing framework; status of the sector at
Development Islamabad present; demand, prices, potential customers; potential
Centre Tel 051 4449 406- economic impact of chemical fertiliser substitution,
11 experience in presentation and sale of dung as fertiliser.
nfdc@isb.comstats. Export or import substitution potential for fertiliser
net.pk
PPIB N.A. Zuheri 50 Nazimuddin Rd Regulatory framework within which Landhi project might sell
Director (projects) Islamabad electricity as an IPP; steps, timing, costs, forms of contract,
Across Road from past experiences, minimum accepted size of
Saudi- Pak Twr generation/voltage, current purchase prices for power
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Tel 920 5421-2


ppib@ppib.gov.pk
Fri 18 Nov Islamabad Ministry of Dr Masood Co-ordinator Locations, sizes and conditions of cantonment cattle
Defence Military Akhter Choudhary, Hassan Akhter tel colonies; levels of interest and issues with small-scale
Lands and Rafique Ahmed Sial, 927 1945 replication of pilot. Management of solid waste. (600
Cantonments Faisal Saeed Cheema Or 927 0555 tonnes solid waste/day from Pindi, and the same Chaklala)
Department CEO Pindi Mall Road, Opp PIA
CEO Chaklala Office
Sat 19 Nov Islamabad AEDB Review programme and identify information gaps
Sun 20 Nov Islamabad Visit to Garden Centres
Mon 21 Nov Islamabad OGRA Issues around connecting to the gas pipeline; conditions of
access, equipment requirements, quality standards, costs,
prices to consumers and vendors. Regulations concerning
compression and retail sales. Low pressure regulations

AEDB Dr Brgdr Nasim Khan Check out and future planning meeting. Mop up of
unfinished business. Return to Karachi
Wed 23 Nov Karachi SEEICCK Syed Abu Ahmad Akif Meeting with NEC and SEEICCK; debriefing on the
Islamabad meetings; review of programme for Karachi
Chief Inspector Ehstesh Amiddin Permission and conditions for operation of biogas plant
of Explosives
Landhi SEEICCK Interviews with farmers, dung sellers and refugee women;
members of Haji Saleem et al revalidation of survey findings on disposal of dung,
SEEICCK problems, opportunities
Thur 24 Nov Karachi Landhi SEEICCK Installation of environmental monitoring equipment
Haji Saleem et al
PCSIR Mrs N F Usmani, Testing and monitoring regime, environmental baseline
Principal Scientific conditions
Officer, Ms Tooba
Haq, Scientific Officer
KESC Eng. Khalid Iqbal, Demand, supply, losses, load shedding, accounts
incharge DID receivable as % of sales/production. What supply and
quality constraints does KESC suffer in the demonstration
plant area? What potential has the project to reduce these?
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Identify all regulatory requirements, contract formats, prices


for power purchase, quality issues. Are there any subsidies
in the electricity or other energy sector? What is the current
cost of production? What is the present tariff structure?
Would the project have any potential to reduce costs/prices?
Social Welfare Meeting with Director Baseline socio-economic conditions, characterisation of
Social Welfare, Kurban populations, occupations and incomes in project area (part
Mehman and Deputy of Bin Qasim Union Council), revalidate socio-economic
Director Mrs Zerfishan sample survey results
Arbab
Fri 25 Nov Karachi 10:00 SEEICCK Structure, management strategy, employment policies,
beneficiation of the wider community. Checkout meeting;
report on progress, outstanding issues e.g. land, confirm
forward work programme.
EPA Di Iqbal Saeed Khan, Environmental law and regulation, IEE procedures. What is
Director, Eng. Khalid the current environmental status of the project area? Any
Iqbal, Deputy Director baseline data? Any plans for the future improvement of the
area? What regulations govern this type of activity? How are
they enforced? Is enforcement effective? What are the
penalties? Does EPA see any problems?
Sat 26 Nov Karachi Veterinary Dr Abdul Hafeez Confirmation of numbers and condition of cattle, feed
Hospital, Landhi Shaikh composition and consistency, means of dung disposal,
ideas about presentation, transport and sale of fertiliser
Social Welfare Mr Kurban Mehman Socio-economic baseline data verification; focus group
Mrs Zerfishan Arbab meetings planning
KDFA, Nazim, President Haji Meeting at Landhi; recap project history, discuss forward
SEEICCK Sikandher and six work programme; identify spokespersons; plan
members members
Landhi Abbatoir Dr Shaikh, veterinarian What is pattern of work – days? Shifts? What is power
demand? How much does electricity cost?
Sun 27 Nov Karachi Landhi site Visit to Korangi Industrial Zone, inspection of coastline and
survey Korangi Stream outfall by Pakistan Fisheries, Garden
centres, fertiliser sales outlets
Mon 28 Nov Landhi Mrs Zerfishan Arbab Focus Group meetings with Majeed Colony Welfare
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Association, Danish Society and Sindh Education


Foundation
Chief Minister’s Mohammed Muslim Also present, Jamil Memon, Dairy Farmer from Malir, R.
Office Abbasi Sahanawaz Janjua, US Soybean Export Council.
Chairman Chief Confirmation of access to land, and conditions, use and
Minister’s Investment distribution of benefits.
Cell
District Co- Fazlur Rahman, Meeting on demonstration plant site, planning of layout
ordination Office District Co-ordination
(KMC Officer, M Raeesuddin
replacement) Paracha, Executive
District officer
Tue 29 Nov Matiari Sugar Syed Zulfiqar Ali Jamot What does their market seek? Sizes/style of bags? Volume
Mills of market? Price?
City District Muhammad Amin Use of facilities on land, access route for vehicles, site
Government of Khaskeli, Executive planning
Karachi District Officer,
Agriculture and
Forestry expert
Truck Drivers Meeting at parking lot Discussion about provenance, inward loads, costs, outward
loads if any, presentation of fertiliser for acceptability for
trucking, interest in participation
Wed 30 Nov City District M Raeesuddin Check-out meeting; presentation of forward plan if approved
Government Paracha, Executive
District officer
SEEICCK Check out meeting, onward programme plans
Data source: pre-feasibility report, July 2006
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3G.3 MAIN STAKEHOLDER CONSULTATION MEETINGS AND WORKSHOPS,


FEBRUARY 2006
Organisation Contact Address
Islamabad stakeholders, Workshop at Holiday Inn, 28 February 2006
ADB Raza Mahmood Farrukh Project Implementation Officer
AEDB Brgdr Dr Naseem Khan Rm 344-B
PM’s Secretariat
Constitution Ave
Islamabad
Tel 922 3427
Isesps_pk@yahoo.com
Energy Adviser to the Dr Mukhtar Ahmed PM’s Secretariat
Prime Minister Constitution Ave
Islamabad
Tel 920 2964
PARC Dr Zahid Hussain
PCRET Dr Parvez Akhter Pakistan Council of Renewable Energy
Technologies, 25, H-9, Islamabad
92(051)9258228 Fax: 92(051)9258229, -
akhterp_dr@hotmail.com
Ministry of Defence Dr Masood Co-ordinator Hassan Akhter tel 927 1945
Military Lands and Akhter Choudhary, Or 927 0555
Cantonments Rafique Ahmed Sial, Faisal Mall Road, Opp PIA Office
Department Saeed Cheema
CEO Pindi
CEO Chaklala
Ministry of Population Mr Khizar Hayat CDA
and Environment Joint Secretary International Block#4
Kyoto Protocol focal Co-operation Old Naval HQ
point Dr Syed Sajidin Hussain Down the road from Holiday Inn
In Charge, CDM cell Near Lal Masjid
MPOE D.G. EPA Mr Asif Shuja Khan
EPA DG Member PNRA
NEPRA Lt Gen Saeed uz Zafar, OPF Building
Chairman 2nd floor
Abdul Ghafoor Solangi (IT) Sharah-e-Jamhooriat Sector G5/2
Dr Tehseen F Chohan, Inst’l Islamabad 44000
Building and Co-ordination Tel 920 7200
Muneer Sheik Director
(Standards) Mr Abdul Rashid
Karkar
National Fertilizer Dr Nisar Ahmad Street No.1, H-8/1 PO Box 3104
Development Centre Chief/Project Director Islamabad
Tel 051 4449 406-11
nfdc@isb.comstats.net.pk
PPIB N.A. Zuheri 50 Nazimuddin Rd
Director (projects) Islamabad
Across Road from Saudi- Pak Twr
Tel 920 5421-2
ppib@ppib.gov.pk
OGRA Shahzad Iqbal, Joint Executive
Director, OGRA
Planning Commission Mr Farkhand Iqbal Planning Development Division
Chief, Energy Planning Energy Wing
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99 West Shalimar Plaza


Blue Area
Karachi Stakeholders, Workshop in Nazim’s Office, 23 February 2006
EPA Di Iqbal Saeed Khan, Director, 021-5073210, 1321-2042992
Eng. Khalid Iqbal, Deputy
Director
SEEICCK Syed Abu Ahmad Akif,
Haji Saleem,
M Yousuf Mujahid 496 0508, 0321 920 1012
Chief Minister’s Office Mohammed Muslim Abbasi 920 2027
Chairman Chief Minister’s 920 2051-5
Investment Cell cminevscell@yahoo.com
District Co-ordination Fazlur Rahman, District Co- 923 1175 (Office)
Office ordination Officer, 920 5610 (Camp)
920 5614 (Res)

M Raeesuddin Paracha, 923 2095


Executive District officer
City District Government Muhammad Amin Khaskeli, 921 5798
of Karachi Executive District Officer, 411 3912 (res)
Agriculture and Forestry expert
Chief Inspector of Ehstesh Amiddin
Explosives
PCSIR Mrs N F Usmani, Principal 0300223 8557, 464 1834
Scientific Officer,
Ms Tooba Haq, Scientific 0300 260 4690
Officer 814 2894
KESC Eng. Khalid Iqbal, incharge 920 5445
DID
KDFA, Nazim, President Haji Sikandher, 021 508 4749
SEEICCK members
Bin Qasim Union Council 021 508 1945
Nazim Haji Md Afzal, 021 508 2369 (res)
Sec. Shaukat Mukhtar
Social Welfare Director Social Welfare,
Kurban Mehman and Deputy
Director Mrs Zerfishan Arbab
0300 278 6832
Veterinary Hospital, Dr Abdul Hafeez Shaikh 508 1333, 0300 2162733
Landhi
Matiari Sugar Mills Syed Zulfiqar Ali Jamot, 454 6108 zaj@cyber.net.pk
Chairman;
Masood Ahmed, MD 454 6108 matsug@attglobal.net
Truck Drivers Spokesperson to be arranged
Majeed Colony Social Javed Ali, President, Md Zahid Ph 5080183, mswa354@yahoo.com
Welfare Association Ali
Danish Welfare Society (names from Mrs Zerfishan,
Social Welfare)
Sindh Education (names from Mrs Zerfishan,
Foundation Social Welfare)
Young Generation S. Ibrahim Shah 0303 6202393
Welfare Association Haq Nawaz Akhter 021 5011982-5023410
Data source: pre-feasibility report, July 2006
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Waste to Energy and Fertiliser, Landhi Cattle Colony


Policy Stakeholder Workshop
Islamabad, 28 February 2006, Holiday Inn, G-6 Civic Centre

Empower Consultants Limited, New Zealand in collaboration with the


Alternative Energy Development Board

Programme

9:30 Registration and meeting

9:45 Introduction by Dr Brigadier Dr Nasim A. Khan, Member Technical, Alternative Energy


Development Board, Prime Minister’s Secretariat, Pilot Project Sponsor

10:00 Presentation, Tony Woods and Ann McLean, Empower Consultants

• Situation analysis

• Project history

• Pre-feasibility findings

• Policy implications and issues

• Proposed forward programme

10:30 Tea break

10:45 Discussion

11:15 Conclusions and Recommendations from Participants

11:30 Concluding Remarks: Air Marshal (Rtd) Shahid Ahmad, Chairman, Alternative Energy
Development Board

Participants are warmly invited to join the presenters for buffet lunch
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3 G.4 SUMMARY OF STAKEHOLDER COMMENTS ON ENVIRONMENTAL AND SOCIAL


IMPACT

No problems anticipated by stakeholders; only


conventional construction materials will be
used, and the site is unoccupied desert

The project should improve the status quo.


The Inspector of Explosives commended usual
gas-handling precautions

Stakeholders are satisfied that the project will


improve rather than worsen the status quo

Stakeholders are not concerned so long as


laws and regulations are observed

All parties expect the project to improve these


indicators

No known ecological or cultural values are


impacted

Mangroves and other biota on the adjacent


coast are severely stressed. EPA expects the
project to reduce this stress

Environmental authorities are not aware of any


such values; the project site is inland and will
diminish impacts of the status quo on the
desert area
Ground water and coastal waters should be
improved by prevention of waste leakage

Authorities point to vulnerability of the coastal


strip to occasional typhoon, as it is on the
border of the monsoon belt. On historical
experience, the plant is far enough inland to
avoid impacts from such severe weather
events
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No stakeholder concerns expressed as


this already occurs. The project should
improve the situation by using more
secure vehicles to transport waste to the
digester, rather than the drains.
No concerns expressed. Safety
measures will be required to prevent
venting of methane.
No concerns about health impacts. The
project can operate well within legal limits.

In an unprecedented weather event plant


damage could result in release of waste,
though not more than would be the case
without the project.
No concerns expressed. Stakeholders
want employment in construction
Should create employment. No concerns
expressed about cultural impact.

None identified in consultations.

The bazaar is congested, and public


infrastructure is very poor. Stakeholders
expressed no concern, but project trucks
would seek to avoid tight corners and
narrow streets.
No – in uninhabited flat desert area
No concerns expressed. The area is
zoned cattle colony/industrial, and is not a
preferred place of residence. No public
parks or recreational areas nearby.

None mentioned, and a walk through


survey did not reveal any such potential
problem.

Ground water is scarce but poor quality.


EPA expects the project to improve this
by removing waste and reducing water
requirements.
No identified geophysical hazards. On the
edge of the monsoon belt, the area
occasionally experiences typhoon. The
project is not expected to create any
additional dangers in such events.
Stakeholders hope for employment
creation to alleviate poverty, which is the
greatest local problem.
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3G.6 STAKEHOLDERS’ BUSINESS CARDS (WHERE AVAILABLE)


(NOTE: SOME STAKEHOLDERS CONSULTED ARE NO LONGER IN OFFICE)

o Government of Pakistan, Islamabad


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International Organisations

o Government of Pakistan, Karachi

o Government of Sindh
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o City District Government of Karachi Officials

o
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o Farmer Organisations and Other Interested NGOs


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o Private Sector Organisations interested in Investment, Purchase of Products or Replication


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Annex 4

MONITORING PLAN

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD:


The actual project performance must be assessed against the projected outcomes of the sustainable
development assessment as defined in Gold Standard Project Developer’s Manual, on an annual basis.
Where quantitative measurements are required information on the relevant data to be collected should be
noted in the table presented below. For those indictors where a qualitative assessment is to be made a
narrative explanation should be provided.

If an EIA has been conducted, then the table needs to be extended to allow:
1) Assessment of the implementation and effectiveness of the identified mitigation measures.
2) Assessment of the implementation and effectiveness of the identified compensation measures.
3) Monitoring of the impacts.

The information requirements for the sustainable development indicators and Environmental Impact
Assessment are fully detailed in the Gold Standard Project Developer’s Manual

Table: Data to be collected in order to monitor the project’s performance on the most sensitive
sustainable development indicators.

Sustainable Development Indicator Numbers Data Source Means of


verification
Employment at the plant FTE jobs:
Unskilled male Employment and labour Payroll (m)
records
Unskilled female “ “
Semi-skilled male “ “
Semi-skilled female “ “
Skilled male “ “
Skilled female “ “
Payroll: Rupees
Unskilled male Employment and labour Payroll (m)
records
Unskilled female “ “
Semi-skilled male “ “
Semi-skilled female “ “
Skilled male “ “
Skilled female “ “

Accidents at the plant causing injury: Numbers “ Safety and QA


records (m)
Male “ “
Female “ “
Work stoppages:
Number due to workplace grievances Company and “
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Department of Labour
records
Time lost due to work stoppages: males
Time lost due to work stoppages: females
Expenditure on Social Responsibility Financial records in the Invoices and
projects in the project area: public domain receipts (m)