Decision 81/62

On the basis of the discussions in the contact group on HFC investment projects, the Executive Committee decided:

1. To note the project for the conversion from HFC (HFC-134a, R-407C, R-410A) to propane (R-290) of the facility manufacturing large commercial unitary roof-top air‑conditioning units of up to 400 kW at Petra Engineering Industries Co. in Jordan contained in document UNEP/OzL.Pro/ExCom/81/40;
2. To approve the project proposal referred to in sub-paragraph (a) above, in the amount of US $1,637,610, plus agency support costs of US $114,633 for UNIDO, on the understanding:
   1. That, except for enabling activities, no further funding would be available until the instrument of ratification by the Government of Jordan had been received by the depositary at the Headquarters of the United Nations in New York;
   2. That 36.25 metric tonnes (mt) (51,837.5 mt CO2-eq) of HFC-134a, 39.75 mt (70,516.5 mt CO2-eq) of R-407C, and 42.70 mt (89,175.6 mt CO2-eq) of R‑410A would be deducted from the starting point for sustained aggregate reduction in HFCs once it has been established;
   3. That the project would be completed within 24 months of the transfer of funds to UNIDO and a comprehensive completion report would be submitted within six months of the project completion with detailed information on:
      1. The eligible incremental capital costs for all equipment and other components including those not funded under the project;
      2. Incremental operating costs (IOCs);
      3. Any possible savings incurred during the conversion and relevant factors that facilitated implementation (e.g. whether any purchased and/or installed equipment or supplies had gone through a competitive quote/bidding process and the details thereof);
      4. Changes in the energy efficiency of the products being manufactured and any related policies undertaken by the Government;
      5. Information on the implementation of the servicing component where applicable;
   4. That, in line with decision 77/35, UNIDO would not pay IOCs until it had verified that the enterprise was manufacturing equipment using R-290 technology, and that, if, within 24 months of the transfer of funds to UNIDO, not all the IOCs had been disbursed, the Executive Committee would consider, on an exceptional basis, a one-year extension of the financial completion of the project for the sole purpose of allowing the IOCs to be disbursed, on the understanding that the comprehensive report referred to in paragraph (b)(iii) above would be submitted within 24 months of the transfer of funds to UNIDO; and
   5. That any remaining funds, including any IOCs that had yet to be disbursed, based on the agreed level of US $6.30/kg, and any savings, including savings in IOCs, including from the reduced material costs stemming from the reduction in refrigerant charge, would be returned to the Multilateral Fund no later than the submission of the financial completion of the project.