Bazhuahe and Yingpanhe Bundled Small Hydropower Project

Audit Analysis

A CDM small hydropower project in China with a solid jurisdictional baseline (grid emission factor) and VVB-confirmed investment additionality. The project over-delivered relative to its ex-ante estimate during the monitoring period, but three corrective action requests during validation raised questions about PDD financial and technical rigour. Several key MRV parameters (FNRB, usage monitoring method) are not stated in the available record.

Project Description

Red Flags

• ⚠Three corrective action requests (CARs) during validation flagged inconsistencies between the PDD's FIRR and IRR calculation sheets, missing sensitivity analysis, and incomplete tariff comparisons for comparable hydro projects in the same province since 2002
• ⚠Contradiction in leakage treatment: the monitoring report states leakage was 'deemed negligible' while an appendix references a 'quantified' approach, creating ambiguity about whether leakage was actually calculated
• ⚠Crediting period dates differ between the validation report (2011-03-01 to 2018-02-28) and the monitoring report (2010-12-23 to 2017-12-22), raising questions about which period governs credit issuance

Credit Vintages