Decision 77/54

The Executive Committee decided:

1. To note:
   1. The progress report on the implementation of the third tranche of stage I of the HCFC phase-out management plan (HPMP) for Saudi Arabia;
   2. With concern, the delay in the implementation of activities in the foam manufacturing and refrigeration servicing sectors;
   3. That the conditions of Appendix 8-A of the Agreement between the Government of Saudi Arabia and the Executive Committee had not been met, and portions of the funding (US $777,000, plus agency support costs of US $54,390 for UNIDO, and US $120,000 plus agency support costs of US $14,864 for UNEP) related to activities in the servicing sector could not be released as they were subject to the conditions;
2. To approve, on an exceptional basis, the proposal to provide funding for the damaged equipment in accordance with sub-paragraph 7(a) of the Agreement between the Government of Saudi Arabia and the Executive Committee, as reflected in the 2016-2017 tranche implementation plan;
3. To request UNIDO to prepare a report outlining the resolution of issues related to customs clearance, such as duties, taxes, demurrage fees and any damages to equipment purchased by the Multilateral Fund, to be submitted together with the fifth tranche request;
4. To allow the fifth tranche request to be submitted once the following conditions had been met:
   1. Completion of the conversion, to the agreed technology, of all polyurethane foam enterprises included in stage I of the HPMP, establishment of the ban on HCFC-141b and completion of the conversion to a blend of isobutane, CO2 and HFO-1234ze at the extruded polystyrene foam enterprise, Al-Watania;
   2. Completion of the conversion of all systems houses included in stage I of the HPMP to formulations with a low global-warming potential and at least ten workshops held by systems houses for downstream foam users;
   3. Adoption of a code of practice and e-licensing scheme, establishment of mandatory recovery and recycling of HCFCs and other ODS refrigerants, and establishment of a ban on disposable refrigerant cylinders;
5. To request the return, to the same meeting at which the fifth tranche request was submitted, of funds associated with any foam enterprise or systems house in stage I of the HPMP that decided not to convert to the agreed technology or not to participate in the HPMP, after taking into account the funds needed for conversion at the two newly identified enterprises (Bayt Al Awazil and Sahari);
6. To approve, on an exceptional basis, the fourth tranche of stage I of the HPMP for Saudi Arabia and the corresponding 2016–2017 tranche implementation plan, in the amount of US $2,171,680, consisting of US $1,766,600, plus agency support costs of US $123,662 for UNIDO, and US $250,400, plus agency support costs of US $31,018 for UNEP, on the understanding that the Treasurer would withhold the amount of US $966,254, consisting of US $777,000, plus agency support costs of US $54,390 for UNIDO, and US $120,000, plus agency support costs of US $14,864 for UNEP, until receipt of a comprehensive report demonstrating that the conditions specified in Appendix 8-A had been met, and on the understanding that, if the report were not provided by the first regular meeting of 2018, the amount of US $966,254 would be returned to the Multilateral Fund, and that a request for those funds could be made by the Government of Saudi Arabia only once the conditions in Appendix 8-A had been fully met.