Decision 57/28

Having heard the report of the contact group, the Executive Committee decided:

1. To take note of the progress report on the implementation of the first tranche of the national ODS phase-out plan in Bangladesh, including the efforts of Bangladesh to effectively reduce its consumption of CFCs in the refrigeration servicing sector;
2. To take note of the verification report on 2004-2007 CFC consumption;
3. To apply the penalty clause in the Agreement between the Government of Bangladesh and the Executive Committee calculated, on an exceptional basis, at 5 per cent of the amount for each of the second, third and fourth tranches being submitted to the Executive Committee for approval, for reasons of non-compliance with the Agreement, on the basis of the following considerations that:
   1. The levels of CFCs used in the refrigeration servicing sector alone had been reduced from 232.1 ODP tonnes in 2004 to 59.9 ODP tonnes in 2008;
   2. The status of non-compliance by Bangladesh with its Agreement was attributable to a large extent to the CFC consumption associated with the manufacturing of CFC metered-dose inhalers (MDIs), for which a phase-out project had only been approved by the Executive Committee at its 52nd Meeting, in 2007;
4. Using the method outlined in sub-paragraph (c) above, to apply a total penalty of US $44,575 for the second, third and fourth tranches of the national ODS phase out plan for Bangladesh;
5. To approve the second, third and fourth tranches of the national ODS phase-out plan for Bangladesh at a total funding level of US $669,750, plus agency support costs of US $50,231 for UNDP, and US $177,175, plus agency support costs of US $23,033, for UNEP, which took into account the penalty using the method outlined in sub‑paragraph (c) above;
6. To note that the maximum level of CFC consumption for both the refrigeration servicing and the pharmaceutical sub-sectors in 2009 was 53.0 ODP tonnes as stipulated in the Agreement, and if this amount was exceeded the Executive Committee might consider applying paragraph 10 of the Agreement on reductions in funding in full, for failure to comply;
7. To request the Government of Bangladesh and UNDP to submit a progress report on the implementation of the national ODS phase-out plan for Bangladesh and the project for the phase-out of CFCs in the MDI sector to the 60^th Meeting of the Executive Committee.