Having considered the comments and recommendations of the Sub-Committee on Monitoring, Evaluation and Finance (UNEP/OzL.Pro/ExCom/25/4, paragraphs 7 to 10) the Executive Committee decided:
(a) To request the implementing agencies:
(i) to carry out some preliminary screening of the financial viability of companies when preparing project proposals;
(ii) to take appropriate action, in consultation with the ozone unit in the country concerned, if there was any indication of a possibility of bankruptcy;
(iii) to report to the Sub-Committee on Monitoring, Evaluation and Finance any slowdown expected as a result of bankruptcy and to present the most cost-effective options to protect the Fund’s assets, in collaboration with the ozone unit;
(iv) to sell or redeploy equipment within an appropriate time-frame in accordance with the recommendations made by the implementing agencies and the ozone unit and approved by the Sub-Committee on Monitoring, Evaluation and Finance and the Executive Committee;
(v) to reflect instances of bankruptcy and their impact on ODS phase-out in project completion reports;
(b) To consider seeking advice from external auditors or lawyers, as appropriate, on bankruptcy issues with a view to protecting the Fund’s assets.