The proposed Yunnan Mangli Hydropower Project (referred to the “proposed project” hereafter) is located on Mangshi River in Luxi City, Yunnan Province, P. R. China. The proposed project is developed and operated by Datang Mangli Hydropower Development Company Limited.

The implementation of the proposed project will achieve CO2 emission reduction by replacing electricity generated by fossil fuel fired power plants. The purpose of the proposed project is to generate hydro power and deliver it to China Southern Power Grid (CSPG). For the proposed project, the scenario existing prior to the start of the implementation of the project activity is the CSPG providing the same electricity service as the proposed project. The baseline scenario is the same as the scenario existing prior to the start of implementation of the project activity.

The proposed project involves the installation of 2 turbines, each of which has a rated output of 18MW, providing a total capacity of 36MW. The annual grid-connected output of the proposed project is estimated to be 143,6521MWh. The electricity to be generated will be sold to the CSPG.The project will help reduce GHG emissions generated from the high-growth, coal-dominated power generation. The estimated annual GHG emission reductions are 113,189tCO2e.

The proposed project will contribute to the sustainable development of the host country through the following aspects:

Reducing the emission of other pollutants resulting from local coal-based power plants compared to a business-as-usual scenario;

Alleviating local supply shortfalls of electricity (the CSPG is a net importer of electricity);

Creating approximately 102 employment opportunities during the project operation and construction.