Having considered the comments and recommendations of the Sub-Committee on Project Review (UNEP/OzL.Pro/ExCom/38/14, paragraphs 81 and 82), the Executive Committee decided:
(a) To approve in principle a total of US $7,360,530 in funding for the phased reduction of the remaining national aggregate CFC consumption through the implementation of the Sector Phase-out Plan for CFCs in the Domestic Refrigeration (Manufacturing) Sector in China;
(b) To approve, at the 38th meeting, funding in the amount of US $1,788,991 plus support cost of US $161,009 to be offset against the bilateral contribution of Italy for 2000-2002, and US $3,400,000 plus support cost of US $299,200 for UNIDO, subject to the following conditions:
(i) The Government of China commits to completely phase out 1,099 ODP tonnes of CFC consumption in the domestic refrigeration (manufacturing) sector and permanently sustain the reduction of 1,099 ODP tonnes from its national aggregate consumption of 3,508.7 ODP tonnes according to the following phase-out schedule;
| Year | 2004 | 2005 | 2006 | Total |
| Annual CFC phase-out target (ODP tonnes) from Italian Bilateral Portion | 0 | 181 | 0 | 181 |
| Annual CFC phase-out target (ODP tonnes) from UNIDO Portion | 140 | 169 | 609 | 918 |
| Total | 140 | 350 | 609 | 1,099 |
(ii) The Executive Committee will endeavour to provide the second tranche of US $2,171,539 plus agency support cost of US $192,239 to UNIDO at the last meeting of the Executive Committee in 2003;
(iii) The Government of China agrees that no additional Multilateral Fund resources would be requested for activities in the Domestic Refrigeration (Manufacturing) Sector. The Executive Committee agreed to provide China with flexibility in using the agreed funds consistent with operational procedures as agreed between China and UNIDO in the Domestic Refrigeration (Manufacturing) Sector Phase-out Plan;
(iv) The Government of China agrees to ensure accurate monitoring of the phase-out and provide regular reports, as required by its obligations under the Montreal Protocol, by 30 September each year;
(v) As the lead implementing agency, UNIDO will be responsible for:
• Providing in 2003 a work programme for the period 2004, 2005 and 2006;
• Reporting annually on the implementation of all activities funded under the sector plan;
• Providing verification to the Executive Committee annually that CFC consumption phase-out in the Domestic Refrigeration (Manufacturing) Sector had been completed based on the schedules listed in the table above.