Decision 47/54

After a brief discussion, the Executive Committee decided:

1. To approve the agreement for the Romania ODS production sector at a total level of funding of US $6.3 million, in principle, as contained in Annex XIII to the present report, and the first tranche at US $3,200,000 plus the support costs of US $240,000 for UNIDO, with the understanding that the funding would eliminate the entire CTC production capacity, including the capacity for CTC co-production;
2. To approve the agreement for phasing out methyl bromide production for controlled uses in China at a total level of funding of US $9.79 million, in principle, as contained in Annex XIV to the present report, and the first tranche at US $3,000,000 plus the support costs of US $225,000 for UNIDO;
3. To approve, in principle, the sector plan for phase-out of ODS process agent applications (phase II) and corresponding CTC production in China at a total level of funding of US $46.5 million plus support costs of US $3,487,500 for the World Bank, with the following provisos:
   1. That approval was without prejudice to determination by the Parties of maximum residual levels of emissions for process agent applications by Article 5 Parties;
   2. That China would reduce the residual emissions from the process agent applications for production of chlorinated polypropylene (CP) and chlorinated ethylene-vinyl acetate (CEVA) addressed in the phase II CTC sector plans to levels that might be agreed in future by the Parties, without requesting additional assistance from the Multilateral Fund;
   3. That the issue of the reduction of residue emissions from process agent applications from the production of chlorosulphonated polyoefin (CSM) addressed in the phase I CTC sector plan should be considered in finalizing the agreement of the phase II sector plan;
   4. If, during implementation of the phase II CTC sector plan, or at any time thereafter, China discovered applications, tonnes of CTC and/or uses (including new process agent categories) of CTC not otherwise explicitly covered in the phase II CTC phase-out sector plan, China committed to phase them out in a manner consistent with the phase-out schedule included in the agreement (to be submitted to the 48^th Meeting) at no additional cost to the Multilateral Fund;
   5. China would report to the Ozone Secretariat any CTC applications additional to those addressed by this project as soon as they became known to the Government of China; and
   6. Disposal of CTC by China would be undertaken in accordance with standards cited in applicable international conventions;
4. To approve funding of US$ 15 million plus support costs of US$ 1.125 million for the World Bank for the first tranche of the project;
5. To note that the proposed funding of the second and subsequent tranches would be worked out between the Secretariat and the World Bank and reflected in the draft agreement to be submitted to the 48^th Meeting; and
6. To request the World Bank to submit a final draft agreement for the project to the 48^th Meeting, together with an annual implementation plan for 2006.