This document presents a small hydro CDM project in Bosnia and Herzegovina called Jabusnica 3 for sale. It provides details about the project such as its installed power of 2.124 MW, anticipated annual production of 10,350 MWh, and preliminary calculations showing it would save 1,091 tons of CO2 per MWh produced. Financial calculations are given both without and with revenue from Certified Emission Reduction credits, showing improved returns when including this income stream. Thorough planning and understanding of local regulations is emphasized for successful small hydro projects.

1. Small Hydro CDM Project S-J-3 for SaleA Kyoto Protocol “Clean Deveolpement Mechanism” Sample Project “Jabusnica 3” in Gacko, BiH - Presentation

2. What is CDMCDM stands for UNFCCC Kyoto Protocol “Clean Development Mechanism”http://unfccc.int/resource/docs/publications/08_cdm_in_brief.pdfWhen verified and confirmed for additionality CER’s or Certified Emission Reductions are issued. CER’s are recognized in EU ETS and have a price. The most relevant source for checking spot emission allowances price ishttp://bluenext.eu/

3. CPM Energetika CPM Energetika is a part of CPM group of companies registered in Slovenia, EUhttp://cpm-en.com/CPM d.d. built 50 MW Hydro in Sloveniahttp://www.cpm.si/CPMBH is a specialist in building tunnelshttp://www.cpmbh.ba/

4. We Own Concessions in BiHIn the territory of RepublikaSrpska in BiH we have access to many (50+) small hydro power plant concessions (20 year / 5% / up to 10MW, renewable). All locations and capacities are verified. We own three.We only offer a location for sale when it receives building permit and we get confirmation from grid operator that there is enough grid capacity to accept entire plant’s production .

5. From Concession to Building Permit9. Grid Connectivity ConsentZoning ApprovalEcological PermitMain DesignLand Use RightsRevision of Main DesignFire Prevention PermitBuilding PermitStudy for the Issue of ConcessionConcession ContractFeasibility StudyGeneral DesignZoning RequirementsPlots&Pipeline StudyHydrological StudyPreliminary Ecological Analysis

6. The Importance of Thorough PlanningIt is of utmost importance to know local legislation concernig: Zoning and Building codeEnergyEcologyNational ParksLabourSecurity and Fire PreventionAdministrative ProceduresIt is also vise (necessary) to speak local language

7. Characteristicsof Jabušnica 3 (S-J-3)Water Flow Q = 1.0 m3 /sFall H = 270.6mPower installed P = 2,124 MWAnticipated Production E = 10.350 MWh/YearPreliminary calculations show that in BiH small hydro power plant saves 1,091 T CO2/MWh

8. Approximate Price Without CER’s~ 2.000€/kW installed pays for:The plant on “turnkey” basis

9. Calculations for S-J-3 without CERPrice for 2.124 MW installed = ~€ 4.248.000Revenue from electricity production-> 10.350MWh/Y * 50€/MWh =~ 517.500Net Revenue -(5% maintenance, 5% concession fee) =~ 465.750IRR (30Y) = 10,33%Return in 9.1 years

10. Approximate Price~ 2.300€/kW installed pays for:The plant on “turnkey” basis100% of issued Certified Emission ReductionsCertificate of Origin

11. Calculations for S-J-3 with CERPrice for 2.124 MW installed = ~€ 4.885.200Revenue from electricity production-> 10.350MWh/Y * 50€/MWh =~ €517.500Net Revenue -(5% maintenance, 5% concession fee) =~ €465.750Revenue from CER’s 15€/T =~ €169.378Total yearly revenue =~ €635.128IRR (30Y) = ~12,58%Return in 7.7 yearsCertificate of Origin no price as yet but expected

12. + 386 2 33 21 281CPM Energetika, Tržaška 39, Si-2000 Maribor, SloveniaE-mail: info@cpm-en.comWeb : http://cpm-en.comCDM – a global tool for global warming problems