Decision 74/56

The Executive Committee decided:

1. To note the 2014 progress report and the 2015 annual implementation tranche, considered by the Sub-group on the Production Sector;
2. To approve the 2015 tranche of the HCFC production phase-out management plan (HPPMP) for China, and the corresponding 2015 tranche implementation plan, in the amount of US $24 million, plus agency support costs of US $1.344 million for the World Bank, on the condition that the Treasurer would deduct the interest accrued from the 2014 tranche from the 2016 tranche after the audit report provided the final accounting of interest accrued in 2014;
3. To request the Government of China, through the World Bank, to provide in future progress reports on tranches a detailed description of the activities conducted by the project management unit related to the production sector in the relevant time period and the types and estimates of the costs covered by the project management unit;
4. To note that the World Bank would include in its 2014 verification report to be conducted in 2015:
   1. The Jiangxi Yingguang Chemical Co. Ltd., plant as a one-off verification and report on the production facility, its production of feedstock and whether there had been production of ODS, and the extent to which the plant had been vertically integrated into downstream product production in order to determine whether the facility was dedicated to feedstock production only, on the understanding that the inclusion of this plant in the verification report did not prejudge its eligibility for compensation with respect to the cut-off date;
   2. Verification that the unused equipment from the previous plant for Changshu 3F had been dismantled and destroyed and would report back to the Executive Committee at the time of the submission of the 2016 tranche request so that it might determine whether the relocated plant would maintain its eligibility for funding; and
5. To request the Secretariat, based on information from the World Bank, to review the work being carried out relating to paragraph 10 of the Agreement between the Government of China and the Executive Committee for the phase-out of production of HCFCs (Annex XXVI of UNEP/OzL.Pro/ExCom/71/64) and to report back to the Executive Committee when the 2015 and 2016 tranche progress reports were presented, recognizing the efforts made by the Government of China on this matter.