Having considered the recommendations of the Sub-Committee (UNEP/OzL.Pro/ExCom/22/5, paragraph 30) on the three-year (1997-1999) business plan of the Multilateral Fund (Revised) (UNEP/OzL.Pro/ExCom/22/12), the Executive Committee decided:
(a) To endorse the targets for ODS approvals and expenditures for the triennium, noting that the 1998 and 1999 figures were indicative only and would be reviewed at the next meeting of the Executive Committee, and taking into consideration the following elements:
(i) The Multilateral Fund, in 1997 and the first half of 1998, would give priority to approving projects with the highest ODP value and short implementation duration for countries that had yet to meet their freeze obligations. This would allow these projects to be implemented before 1 July 1999 in order to curtail the ODS consumption growth in these countries;
(ii) The Fund would continue to provide funding for all ODS consumption sectors to enable all Article 5 countries to maintain the momentum of phase-out according to the strategies in their country programmes;
(iii) Halon would continue to receive high priority due to its high ODP value and the cost-effectiveness of halon phase-out projects. This would include consideration of the first sectoral phase-out programme from an Article 5 country in the halon sector;
(iv) The Fund would continue the practice of setting up a special allocation for LVCs. Implementing Agencies should be encouraged to target funds to assist those countries;
(v) Funding of full and gradual closure projects in the production sector would be considered during this triennium. Considering that the guidelines for shutting down ODS production facilities would be ready in 1997, and project formulation would be under way in the same year, allocations for the production sector would be made in 1998 and 1999;
(vi) Future budgets should include project preparation funds for investment projects under investment, rather than non-investment, allocations;
(b) To request the Secretariat to send letters around mid-year to all countries involved in bilateral activities, asking whether they intended to utilize the full amount allocated to them for bilateral activities. If they did not intend to do so, those funds could be reallocated;
(c) To insert a new line in Table 3 of the three-year business plan of the Multilateral Fund (UNEP/OzL.Pro/ExCom/22/12), after the investment line, entitled "Funds reserved for preparation of investment projects";
(d) To take into account the possible increase in the importance of non-investment projects.