Project Idea Note
Ob: This document has a guidance objective to SECOPA (VLT PROJECT
CUIABÁ), covering its Carbon credits generation potential. All estimates within
this document are preliminary, and do not ensure the right of effectively
obtaining the credits, which are subject of verification from third parts in order
to assure its environmental adequacy and licensing, as well as an accounting
of its emissions and leakage, resulting on the reduction of emissions from
anthropogenic activities according with a MRV system.
Project Name: VLT CUIABÁ
Submission date:
01/MAY/2012
A. Project description, type, location and schedule
General Description
Project Description including
main activities
Technology used
Proponent Submiting PIN
Name
Organization Category
Other roles of Project developer
within the Project activities
Relevant experience resume
Replacement of bus mass transportation by electric VLT modal at
Cuiabá and Várzea Grande municipalities.
The Project has three terminals and 2 tracks: Aeroporto – CPA
and Centro – Coxipó, in a total of 22,2 km of distance. Average
222,000 persons are expected to be attended on a daily basis.
The project measures its impacts by using the AMS-IIIc
methodology for emissions reduction by electric vehicles.
Monitoring is to be done by measuring number of electric vehicles
operating, electricity consumption / km and annual average
distance once project is implemented.
For the estimates at this document the emission factors from bus
emissions in Brazil was determined by using IPEA 2011 report for
main Brazilian capitals and the emission factor of electricity in
Cuiabá by 2022.
Replacement of diesel bus transportation by electric vehicles –
Vehicle Light on Tracks - VLT
Arq. Rafael Detoni Moraes
Especial Assessor – Urban Mobility
SECRETARY OF WORLD CUP IN CUIABÁ
SECOPA - CUIABA
Mato Grosso State Secretary / Governmental
Operational / technical assistance
Project developer intends to use PIN to promote voluntary market
sells of carbon credits. Therefore demands from certification
bodies might influence operational activities, and the project
developer is directly responsible for field implementation of project
activities. Project developer also provides technical assistance
from sub-contracting local consultants to implement and monitoring
over the years.
SECOPA is the main responsible for organizing the world cup in
the city of Cuibá, and it is already executing Arena Cuiaba
construction and many other associated infrastructure
developments
Transport project activity
Address
Person to Contact
Tel / fax
VLT Cuiabá
Ginásio Poliesportivo Prof. Aecim Tocantins
Av. Agrícola Paes de Barros, s/n° - Bairro Verdão
CEP 78.030-210 – Cuiabá/MT
Ar Rafael Detoni Moraes
65-
E-mail and website
[email protected]
Project supporters financing Project activities
(List names and supply below information to all supporters)
Name
FIFA
Organization category
Address (including internet)
Word Football organization
Main activities
Finance resume
Non applicable
Project Type
GHG
CO2
Type of Activities
Emissions Reduction (Carbon)
Activity field
(Select code from Project
category’s list)
Emission Reduction by Eletric Vehicle
Project location
Country
Brazil
Closest municipality
Cuiaba and Varzea Grande
Precise location
Airport – CPA and Coxipó – Center
Expected schedule
Latest date of Project start
(year when the Project becomes
operational)
Project activities are to start in 2013, after the project is concluded.
SECOPA has been actively working since 2010. Operation of VLT
is schedule for 2015.
Time expected to become
operational after having the PIN
approved
Time necessary to financial compromising: 1 year
Time necessary to environmental adequacy and licensing: 1 year
Time necessary to resume negotiations: 6 months
Time necessary to Implementation: 1-2 years
First year of credits deliverance
2015 - 45674 tCO2eq
2022 – 319718 tCO2eq
Time of Project duration (years)
7 years (21 years)
Actual status or project phase
Actual status of acceptance by
host country
Preliminary study of potential finalized
Brazilian legislation on the World FIFA Cup has already been
approved at the Brazilian National Congress and the country has
the National Policy of Climate Change and the National Plan for
Climate Change, both from the Federal Government
Host country
Host country position regarding
1
Transport project activity
Kyoto Protocol and other
international agreements
VLT Cuiabá
a. Signed and ratified Copenhagen Agreement and Kyoto
Protocol
b. Brazil has a National Policy and Plan for Climate Change
and Law proposals regarding ecosystem services
remuneration, including carbon credits
2
Transport project activity
VLT Cuiabá
B. Expected Sócio-Economic Benefits
Estimates of sequestred and
conserved Carbon
(in tCO2eq – tables annexed –
when available.)
Baseline Scenario
(how would the future be without
the project proposal? What would
be the total ammount of carbon
sequestred / conserved without
the Project proposal? Mention
the baseline methodology, when
known)
Until and including 2015: 45674 tCO2e
Until a period of 7 years: 319718 tCO2e
Until a period of 14 years: 639436 tCO2e
Until a period of 21 years: 959154 tCO2e
Project baseline is based on the maintenance of mass bus
transportation system, which is what has been done not only in
Cuiabá, but also in other Brazilian cities with more population, like
Curitiba, or Belo Horizonte and others. If no incentive comes from
environmental considerations the tendency keeps on having more
and more diesel buses within the cities. Increase on the number of
passengers and buses are increasing over time.
Without the project the use of diesel fossil fuel and the increasing
traffic would be the reality.
The baseline methodology was keeping using buses, like stated at
AMS-IIIc methodology for emissions reduction by electric vehicles.
Existing vegetatin and land uses
(what is the current land use and
the land use at areas to be
included at Project? Is the Forest
cover above or below 30%)
Today, the project has the following characteristic:
Today’s fuel consumption is based on diesel with the biodiesel
content as specified by Brazilian regulations (b5).
Specific environmental outcomes Reduction of emission and pollution from burning of fossil fuels at
(benefits)
regular buses. Reduction of traffic jams by improving conditions for
collective transport.
Reduction of diseases related to chronic exposition to air pollutants
from diesel engines
Local benefits
Creation and generation of income and “Green” Jobs, for
monitoring carbon reduction
Less pollution and GHG within the cities, jobs for managing and
operating the VLT system
Global benefits
Creation of income and “Green” Jobs
Contributing to reducing CO2 emissions from transportation
Sócio-economic aspects
Without Project activity the air at the city would be getting worse
(which social and economical
every year and that would also end up by compromising water
effects can be attributed to the
basin reducing water availability and quality, beside unplanned
Project and which wouldn’t have changes at local scenery.
occurred in a similar situation
With the introduction of modern VLT systems the project
without the Project?)
contributes for rehabilitating the air quality, reduces pressures over
water quality, helps to produce city landscape planning, generates
jobs and incomes and improves regional microclimate.
All jobs and income generated with the project wouldn’t occur if it
was no implemented.
3
Transport project activity
VLT Cuiabá
Which are the direct effects?
(f.ex, job creation, poverty
reduction, export / import
balance)
The Project activities generate 150 direct Jobs to implement and
maintain VLT systems and stations. With the increasing of the use
another 150 direct jobs are also created together with circa of 600
indirect ones (services, stores etc).
The project will also generate jobs and income from Carbon
monitoring and estimates, besides assuring job places for other
staff working at the project. With the Carbon remuneration, it is
possible to assure the environmental quality of the region.
With the Carbon estimates it is possible to transfer it to other
production and services chains, increasing their competitiveness
by adopting a CSR behavior, resulting on appreciation of its
products and services.
Which are the other effects?
(f.ex., training / education
associated to process,
technologies and products or
their effects at other sectors,
duplication within the country and
at the region)
The project introduces modern VLT systems to cities as Cuiabá
and Varzea Grande together with concepts of Payment for
Ecosystem Services – PES, for emissions reduction and
maintenance of air quality.
With this the project contributes to quality of life and a conceptual
change for transportation, where it has to be of quality for the
people inside and outside it.
VLT is a modern, efficient and sustainable system for mass
transportation within cities, and the practice can be extended to all
cities in the country, with large benefits for the population and the
environment.
Consistency between Project and Brazil has been present at international forum to advocate in favor
environmental strategies of host of adequate conditions for recognition of global climate change
country
mitigation. Brazil is the country with the largest compendium of
environmental legislation, a statement of its compromise with
sustainable use and conservation of national biodiversity.
Brazil has a national climate change combating plan with chapters
on energy and transportation.
The current project is aligned with the above strategies and offers
a new approach for urban transportation, with the contribution of
supply quality ecosystem services to society.
4
Transport project activity
VLT Cuiabá
C. Finance
Project Costs
Preparation costs
R$ 40,000 (preliminary study and register)
Establishment costs
Other costs (explanation)
R$ 1,2 billio (tracks, terminals, vehicles etc)
R$ 300,000 (baseline and monitoring field implementation –
Permanent Parcels and field date collection)
Total Project Costs
R$ 1,2 billion
Sources of Financing to be approached or already identified
Partners (Name and R$)
Federal government, FIFA
Long term financing (Name and
R$)
Long term financing (Name and
R$)
Long term financing (R$)
Forseen investor’s contribution
(R$)
R$ 5-25 per tCO2eq
Sources of Carbon Finance
(PNBSAE)
None
Indicative price per tCO2eq
R$ 10 / tCO2eq
Value of Reduced Emissions
= price tCO2eq X number of
tCO2e)
R$ 9.591.540
Until 2022
For 14 years
R$ 3.197.180
R$ 6.394.360
For 7 years
R$ 3.197.180
For 21years
Financial Assessment
(Prove that property is feasible
from the financial point of view)
R$ 9.591.540
IRR without Carbon:
IRR with Carbon:
Anexxes:
5