Having considered the comments and recommendations of the Sub-Committee on Monitoring, Evaluation and Finance (UNEP/OzL.Pro/ExCom/39/6, paragraphs 43 to 45), the Executive Committee decided:
(a) To take note of the report on the ODS phase-out from cancelled projects contained in UNEP/OzL.Pro/ExCom/39/16;
(b) To adopt the following two options:
(i) If an enterprise was provided with equipment needed for conversion to non-ODS technology, the full amount of ODS envisioned for phase-out in the approved project should be recorded as the phase-out;
(ii) If an enterprise was provided with some items of equipment and such items could not be transferred by the implementing agency concerned to another enterprise(s) in the country or the region, the cost-effectiveness of the approved project should be used to calculate an amount of ODS phase out proportional to the cost of equipment items and other associated costs, by dividing the amount of funds disbursed to the enterprise by the cost-effectiveness value. The resulting amount should be recorded as the phase-out;
(c) To request the Secretariat to prepare, by the 40th meeting of the Executive Committee, advice on how to deal with the issue of funding levels when reapplying for assistance for projects that had previously been cancelled.