The International Finance Corp (IFC) plans later this month to assess funding options for Chinese firm Xinglong Hydro's project development plans.
Xinglong Hydro has been developing two run-of-river projects – Nanjiang and Zijiang – on the Yuliang river in Kaiyang County, Guizhou province.
Construction of the 21MW Nanjiang project is almost complete and work on site is about to commence on the 12MW Zijiang plant for commissioning late 2009.
Both schemes are located in narrow, steep-sided valleys and consequently will have relatively high, concrete double arch dams (65m or higher) but short in length (130m or less). The Nanjiang project also requires a 4km diversion tunnel.
The total investment in the two projects is US$26M-US$28M, noted IFC. The two plants are to be registered for carbon credits, enabling Xinglong Hydro to sell up to 95,000 tons/year of Certified Emissions Reductions (CERs). The contract value for the purchase of the carbon credits is estimated at US$5M-6M.
IFC is panning to purchase the carbon credits through the Netherlands Carbon Facility. It engaged Swiss consultant Stucky to perform a technical, environmental, social and health and safety review of the two hydro projects, Stucky reported in mid-2007.
Xinglong Hydro was set up four years ago, and its majority owner is Shanghang Hongyang Mining Project Co Ltd (Hongyang). Other shareholders include key people with direct hydro power development experience.