PCH CANTAYUS

Audit Analysis

PCH Cantayus is a small hydro avoidance project in Colombia with a VVB-verified investment additionality test and reasonable leakage treatment, but the verification report identified extensive material findings—including incorrect installed capacity, untraceable financial data for the additionality analysis, and a missing salvage value—that required six corrective actions. The verified emissions reductions align closely with the pro-rata ex-ante expectation, and the project's avoidance nature eliminates reversal risk, but the project-specific baseline, low extraction confidence, and several unstated parameters (FNRB, usage rate, CORSIA/CCP status) limit confidence in the overall claim.

Project Description

Red Flags

• ⚠Six substantive corrective actions (SAC 1–6) were required to fix the additionality analysis, including correcting installed capacity to 4.5 MW, aligning the investment cash flow to the November 2013 decision date, and adding a missing salvage value—indicating the initial PDD and monitoring report contained material errors.
• ⚠The verification report (Dec 2023) and the monitoring report (Sep 2023) contradict each other on whether FPIC was conducted (true vs. false) and on the baseline method (project vs. jurisdictional), creating uncertainty about the project's social and methodological foundations.
• ⚠Minimum extraction confidence is rated 'low', meaning at least one key document was poorly readable, which undermines confidence in the completeness of the extracted record.
• ⚠The GHG reduction projection initially failed to account for the change in electricity delivery destination (CENIT pumping station) from December 2022, meaning the verified ERR may not fully reflect actual displacement of grid electricity.

Credit Vintages Exhausted