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Verification Report World Bank Carbon Finance Unit 2nd Periodic Verification of the Registered I Project Standard Geothermal District Heating Project ITL project ID: PL1000059 Monitoring period #2:

First report, date of last issue Number of pages number of pages for first report, date last issue Number of pages number of pages for second report, date last issue This year we have published a report on the project in Hegyeshalom (Deserters Développé) in Western Germany, which is a new CO 2 -intensive geothermal development which has been installed by the GDF Suez energy company. This project was the subject for a two-year project management study by the World Bank's Carbon Finance Unit, covering a period from 1st January 2001 to 31 March 2003. In April 2000, the construction of the Hegyeshalom project commenced, and during the period of this study, a comprehensive assessment of the project was carried out, with an aim to maximize the positive net impact of the projects. The Hegyeshalom project, which commenced in January 1999, involves a CO 2 -intensive geothermal power supply development which will require the construction of two power plants. As the Hegyeshalom project is the country's first and largest of the kind, it is of great interest to the World Bank to assess the project, as its implications are considerable for renewable energy development. In 2003, the study was reviewed by a group of international academics, who identified three areas where they believed the study was not sufficiently detailed or objective to carry the World Bank's standards of good practice in assessing carbon finance projects. The World Bank decided not to pursue a full evaluation of these areas. As this project is located in the United States, the BID/WE Sis still conducting an annual project management review on a case-by-case basis to assess the performance of carbon finance projects.

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