Having considered the comments and recommendations of the Sub-Committee on Monitoring, Evaluation and Finance (UNEP/OzL.Pro/ExCom/38/4, paragraphs 23 to 25), the Executive Committee decided:
(a) To note:
(i) The document on project implementation delays (UNEP/OzL.Pro/ExCom/38/9);
(ii) With appreciation the reports submitted to the Secretariat on projects with implementation delays and additional status reports provided by Belgium, France, Germany, Poland and the four implementing agencies;
(iii) That the Secretariat and implementing agencies would take established actions according to the Secretariat’s assessment of status, i.e., progress, some progress, or no progress, and report and notify governments as required;
(iv) The completion of the following two projects in November 2002: Elimination of the use of CFC-113 and Methyl Chloroform in the color picture tube cleaning process at the Shanghai Novel CPT Corp factory (CPR/SOL/19/INV/171), and Elimination of ODS (CFC‑113) used in the production line at FUJIAN PUTIAN VIKAY Electronics Co. Ltd. (CPR/SOL/23/INV/224), both implemented by UNDP;
(v) The deadline of June 2003 for the milestone of relocation of the enterprise, provided by the World Bank at the meeting, for the Chandra refrigeration project in India (IND/REF/19/INV/92), with a report on achievement of the milestone to be submitted by the World Bank to the Executive Committee at its 40th meeting;
(b) To cancel the following projects through mutual agreement:
(i) Conversion to non-CFC technology in the manufacture of integral skin and flexible moulded foam at STRAPUR in Argentina (ARG/FOA/23/INV/62), implemented by UNDP, due to the company stopping operations, noting that US $32,120 of the US $125,420 approved for the project had been disbursed;
(ii) Elimination of the use of CFCs in the manufacture of rigid foam blocks for insulated trailers at FRUEHAUF in Argentina (ARG/FOA/23/INV/65), implemented by UNDP, due to bankruptcy, noting that US $134,235 of the US $136,725 approved for the project had been disbursed;
(iii) Replacement of 1,1,1-trichloethane sheet steel cleaning system on the steel sheet‑cutting table with an aqueous-mechanical system in the steel enterprise Siderar, SAIC in Argentina (ARG/SOL/28/INV/90), implemented by the World Bank, noting that no funds for the project had been disbursed;
(iv) Elimination of CFCs 11 and 12 in the manufacture of domestic freezers at DEBAO Refrigeration Equipment Co. Ltd. in China (CPR/REF/23/INV/233), implemented by UNDP, due to bankruptcy, noting that US $524,471 of the net US $553,006 approved for the project had been disbursed;
(v) Elimination of CFC-11 in the manufacture of flexible polyurethane foam (slabstock) at PT Irc Inoac in Indonesia (IDS/FOA/23/INV/75), implemented by the World Bank, noting that no funds for the project had been disbursed; and
(vi) Phase-out of CFC-11 by conversion to HCFC-141b in the manufacture of rigid polyurethane foam (sprayfoam) at PT Sentra Sukses Selalu in Indonesia (IDS/FOA/29/INV/115), implemented by the World Bank, noting that no funds for the project had been disbursed;
(c) To request the implementing agencies to reimburse to the Multilateral Fund all remaining balances from the above projects;
(d) Also to request the Secretariat, in cooperation with the implementing agencies, to prepare a working paper providing options on how phase-out from cancelled projects should be recorded, for presentation to the 39th meeting of the Executive Committee, taking into account the comments made by members during their discussion of this issue at the 37th meeting, and inviting further input subsequent to the meeting.