Consideraciones del Proyecto

1. The Project will create both GHG and non-GHG social, economic and environmental benefits in the zone.

2. It is estimated that the Huanza Project will reduce 277,654 tons of CO2 emissions per year. By displacing the use of fossil fuels, the Huanza plant will both avoid GHG emissions and the emission of other contaminant gases such as SO2 and NOx.

3. The project will lead to increased economic activities in the Project region and the country as the whole given that the cement and labor will be from Peru. Numerous local direct and indirect employment will be created during construction of the project, improving the quality of life and generating opportunities in the poor, rural area of the Project.

4. By implementing the development of hydropower, Peru is taking advantage of a clean, renewable, and efficient energy source, making the country less dependent on the import of fossil fuels.

5. As part of the development of the Project, EMGHUANZA will supply irrigation water to about 60 hectares and will assist in developing another 40 hectares of land for agriculture.

6. The Environmental Impact Assessment (EIA), approved by the Peruvian Ministry of Energy and Mines, demonstrates the clear environmental, economic and social benefits of the Project.

7. All major access roads are existing and run along the entire length of the Project, thus minimizing the environmental impact related to the construction of new site access roads.

8. EMGHUANZA has made a commitment to a forestation program in the Project area, which is an additional benefit of the Project.

9. As part of the development of the Project, EMGHUANZA is working with the local community for the financing of a small museum in the Project area to highlight the reach cultural history of the region.

10. Peru signed the Kyoto Protocol on November 13, 1998. As a non-Annex I country, the Peruvian authorities published their national communication on the implementation of the UNFCCC via web site of CONAM (www.conam.gob.pe), the operational agency responsible for climate change and AIJ and CDM.

11. The host country supports the CDM and hydropower has been included in CONAM's climate change strategy as one of the options for developing CDM projects in Peru.

12. The Project will be the first CDM project in Peru. It is expected that the development of the Huanza project as a CDM project will facilitate the development of other GHG mitigation projects in Peru under the CDM.