Decision 77/35

Following report of the contact group, the Executive Committee decided:

1. To request the relevant bilateral and implementing agencies:
   1. To continue making best efforts to ensure that conversions were consistent with agreed alternatives as approved by the Executive Committee;
   2. To report to the Executive Committee, as soon as they became known, exceptional cases where enterprises that had received funding from the Multilateral Fund to manufacture products and equipment using substances with low-global-warming potential (GWP) were temporarily manufacturing products and/or equipment using high-GWP substances, and to identify the reasons for the use, the steps to be taken to enable the enterprises to start manufacturing using the technology for which the funding had been approved, and a timeline for when such manufacturing was expected to commence;
   3. To continue reporting the status of manufacturing at the enterprises identified in sub‑paragraph (ii) above to each meeting of the Executive Committee until those converted manufacturing lines used only the low-GWP technology for which funding had been approved, or another alternative technology with a lower GWP;
   4. To request the enterprises identified in sub-paragraph (ii) above to provide a letter stating their commitment that the manufacturing lines funded by the Multilateral Fund would manufacture products and/or equipment using only the technology for which funding had been approved;
   5. To assess, during project preparation, the availability of the chosen technology in the country, including the necessary components, refrigerants, oils, blowing agents, etc.;
   6. Not to pay any incremental operating costs that had been approved for the manufacturing enterprises until it had been verified that the enterprises were manufacturing products and/or equipment using the approved technology;
   7. To ensure that verification reports submitted in line with sub-paragraph 5(b) of the Agreements between the Governments of the Article 5 countries concerned and the Executive Committee included verification of conversion of the manufacturing enterprises covered under the Agreement and confirmation of the technology adopted, in a representative sample of enterprises; and
2. To encourage Governments of the Article 5 countries concerned, with the assistance of relevant bilateral and implementing agencies, to consider taking measures, if possible, to aid the introduction of low-GWP technology in applications covered under the respective sector and/or sub-sector.