Decision 84/72

Following informal discussions among interested members, the Executive Committee decided:

1. To note the progress report on the implementation of the first tranche of stage II of the HCFC phase-out management plan (HPMP) for Egypt;
2. To approve the project for the conversion of El-Araby, Fresh, Miraco, Power and Unionaire from HCFC-22 to HFC-32 and, should the enterprises so decide once the technology became available, R-454B, used in the manufacture of residential air-conditioning units, in the amount of US $10,926,623, plus agency support costs of US $764,864 for UNIDO;
3. To deduct 65.44 ODP tonnes of HCFC-22 from the remaining HCFC consumption eligible for funding;
4. To note the commitment of the Government of Egypt to a reduction of 70 per cent of its HCFC baseline by 1 January 2025, representing a sustained level of 115.54 ODP tonnes;
5. To note:
   1. The commitment of the Government of Egypt:
      1. To ban the import and manufacture of HCFC-22-based residential air‑conditioning equipment by 1 January 2023;
      2. To ensure full control of R-410A- and R-407C-based residential air‑conditioning equipment, imported or placed in the local market;
      3. To secure the uptake of the HFC-32 and, should the enterprises so decide once the technology became available, R-454B, by the local market;
      4. To present an update on regulatory measures planned or introduced and a planned timeline for the enterprises to manufacture exclusively for the local market using HFC-32 or an alternative with lower global‑warming-potential (GWP), as part of the submission of the third tranche in 2021;
   2. The commitment of El-Araby, Fresh, Miraco, Power and Unionaire actively to participate in efforts to promote the market acceptance of the residential air‑conditioning equipment based on the agreed technology, and to ensure that their manufacture of R-410A-based equipment for the local market progressively decreased until the enterprises manufactured only equipment for the local market with the agreed technology, or a lower-GWP technology, with the understanding that the enterprises could continue to export R-410A-based equipment;
   3. That El-Araby, Fresh, Miraco, Power, and Unionaire would not be eligible for further funding from the Multilateral Fund to phase-down HFCs in residential air-conditioning under the Kigali Amendment;
   4. That the Secretariat had: updated Appendix 2-A of the Agreement between the Government of Egypt and the Executive Committee, as contained in Annex XXIV to the present report, on the basis of the approval of the project proposal referred to in sub-paragraph (b), above, and the deduction of HCFC tonnage referred to in sub-paragraph (c), above; updated the target for controlled use in paragraph 1 to 115.54 ODP tonnes; and added a new paragraph 17 to indicate that the updated Agreement superseded that reached at the 79^th meeting; and
6. To approve the second tranche of stage II of the HPMP for Egypt, and the corresponding 2019-2022 tranche implementation plan, in the amount of US $7,507,455, consisting of US $4,668,214, plus agency support costs of US $326,775 for UNIDO; US $1,836,750, plus agency support costs of US $128,573 for UNDP; US $279,500, plus agency support costs of US $33,394 for UNEP; and US $207,300, plus agency support costs of US $26,949 for the Government of Germany.