Decision 46/33

Following the discussion, the Executive Committee established a contact group with the representative of Belgium as convenor. Based on the report of the convenor, the Executive Committee decided:

1. To note with appreciation the study on criteria and modalities for chiller demonstration projects, contained in document UNEP/OzL.Pro/ExCom/46/37;
2. To utilize the funding window of US $15.2 million for additional demonstration projects in the chiller sub-sector, with an understanding that no further funding for chiller replacement would be approved by the Executive Committee, as follows:
   1. To request UNDP, UNIDO and the World Bank, as well as interested bilateral agencies, to submit to the 47^th Meeting of the Executive Committee project proposals that could be replicated in other countries to demonstrate the feasibility of and modalities for replacing centrifugal chillers in the future through use of resources external to the Multilateral Fund. To the extent that funds from the Multilateral Fund would be able to initiate an activity that leveraged other sources of long-term sustainable financing, the scope of the project might be expanded to address all types of chillers. The agencies were encouraged to submit such projects on a regional basis to allow as many countries as possible to be included;
   2. To agree the following conditions for such investment demonstration projects that:
      1. The relevant countries should have enacted and were enforcing legislation to phase out ODS;
      2. The project is intended to use financial resources outside the Multilateral Fund, such as national programmes, Global Environment Facility (GEF) funding or other sources. Accordingly, the credibility of those financial resources should be indicated when the project is submitted for approval under the Multilateral Fund. Such financial resources should be secured before disbursement of funds approved under the Multilateral Fund commences;
      3. The total funding per investment will be determined using an accessible mathematical and/or business model, taking into account relevant decisions of the Executive Committee;
      4. The maximum Multilateral Fund grant for a particular country is US $1,000,000; for regional projects, approval of additional funding on a revolving fund basis could be decided on a case‑by‑case basis; and
      5. The project proposal includes a general strategy for managing the entire CFC chiller sub-sector including the cost-effective use and/or disposal of CFCs recovered from chillers in the countries concerned;
   3. To request the Secretariat, in order to ensure a coordinated process, to hold coordination meetings with all agencies to evaluate and, if necessary, prioritize demonstration project proposals for subsequent decision by the Executive Committee using the following criteria:
      1. Fulfilment of the requirements under sub-paragraph (b) (ii) above;
      2. Cost justification;
      3. Interlinkage with the existing phase-out plan (where relevant);
      4. Regional balance of projects according to the main regions: East Asia and South Asia, West Asia and Central Asia and Eastern Europe, Africa, as well as Latin America and the Caribbean;
      5. The total funding per chiller, taking into account relevant national and local conditions, could be determined by an accessible mathematical and business model and the annual return on investment;
      6. CFC consumption for the servicing of chillers as a share of total 2004 CFC consumption in the country; and
      7. The level and source of probable financial resources outside the Multilateral Fund to be utilized for the project;
   4. To request UNEP to submit a project proposal regarding implementation of relevant information, dissemination and awareness activities at a global level with the objective of disseminating the experience gained in the demonstration projects globally. At the same time, the project preparation funding should be used to make information rapidly available to CAP teams for distribution at network meetings;
   5. To approve the following funding for project preparation, including participation in coordination meetings with the Secretariat and, where relevant, development of suitable methodologies for the preparation of projects referred to in sub-paragraph (i) above:
      1. UNDP: US $122,000, plus agency support costs of US $9,150;
      2. UNEP: US $40,000, plus agency support costs of US $5,200;
      3. UNIDO: US $119,000, plus agency support costs of US $8,925;
      4. World Bank: US $155,000, plus agency support costs of US $11,625, and an additional US $40,000, plus agency support costs of US $3,000, to undertake the organization of a workshop in September 2005 for important stakeholders in order to facilitate compatibility of related project proposals from all agencies with stakeholders expectations, in particular relating to potential co‑funding entities. Participation in the workshop would include all implementing agencies, representatives of potential national and multilateral co-funding institutions for chiller projects, manufacturers of equipment, as well as other stakeholders and experts;
   6. To request the Secretariat to report to the 47^th Meeting of the Executive Committee on the experiences gained during project preparation and any need for changes in or amendments to the criteria and modalities proposed above; and
   7. That resources remaining unspent after approval of the proposals submitted to the 47^th Meeting of the Executive Committee should remain as uncommitted obligations from the 2005 business plan.