Decision 84/74

The Executive Committee decided:

1. To note:
   1. The progress report on the implementation of the first tranche of stage II of the HCFC phase-out management plan (HPMP) for the Islamic Republic of Iran;
   2. That two individual enterprises, Hanzad and Tara Sanat Barfin, with a consumption of 39.00 metric tonnes (4.29 ODP tonnes) of HCFC-141b and associated funding of US $348,006, had been closed and removed from stage II;
   3. That UNIDO would move two enterprises for individual conversion with consumption of 51.00 metric tonnes (5.61 ODP tonnes) of HCFC-141b to the group conversion project, and three enterprises in the group conversion project with consumption of 97.70 metric tonnes (10.75 ODP tonnes) of HCFC-141b to individual conversion;
   4. That the enterprises Aysan Sanat, Forouzan and Yoosh Electric, with a consumption of 66.00 metric tonnes (7.27 ODP tonnes) of HCFC-141b, had converted with their own resources before the initiation of the project, and had been removed from stage II, and their associated funding of US $375,701, plus agency support costs of US $26,299, would be deducted from the third tranche approval for UNIDO;
   5. That US $126,545, plus agency support costs of US $14,393, would be deducted from the approval for the Government of Germany, in line with decision 80/21(c);
2. To approve:
   1. The change in technology from water-based to pre-blended cyclopentane for the 15 small- and medium-sized foam enterprises being assisted in the group project, without any additional cost to the Multilateral Fund;
   2. On an exceptional basis and taking into account the existing economic situation in the country, the reallocation of the balance of US $348,006 from the two enterprises referred to in sub-paragraph (a)(ii), above, to cover additional costs incurred by the changes in sub-paragraphs (a)(iii) and (b)(i), above;
3. To request UNDP, UNIDO, the Government of Germany and the Government of Italy:
   1. To submit, with each funding tranche request, a detailed report on the status of the conversion of each of the foam projects covered under stage II, including the financial viability, the current level of HCFC-141b consumption, the alternative technology selected, the total cost to the Multilateral Fund and the level of co-financing, as applicable;
   2. To continue providing information as soon as it was known about foam enterprises found to be ineligible for funding, that had phased out HCFC-141b without Multilateral Fund assistance, or that had withdrawn from stage II of the HPMP, along with their associated consumption and approved funding;
   3. To report in advance any change of technology for consideration by the Executive Committee in line with paragraph 7 (a)(v) of the Agreement between the Islamic Republic of Iran and the Executive Committee;
   4. To ensure that, for enterprises that had received funding for conversion during stage II and that had closed down before the conversion was completed, the corresponding equipment would be transferred for the use of other enterprises eligible to receive assistance and that any unspent balances would be returned to the Multilateral Fund without prejudice to other eligible enterprises;
   5. To ensure that once all enterprises had been verified and funds allocated, any deviation from the approved cost-effectiveness of the polyurethane foam sector for stage II (US $6.79/kg) would be reported to the Executive Committee and would be recovered from the funds remaining for stage II of the HPMP; and
4. To approve the second tranche of stage II of the HPMP for the Islamic Republic of Iran, and the corresponding 2020–2022 tranche implementation plan, in the amount of US $4,275,180, consisting of US $1,593,980, plus agency support costs of US $111,579 for UNDP; US $190,000, plus agency support costs of US $23,614 for UNEP; US $584,000, plus agency support costs of US $40,880 for UNIDO; US $1,047,035, plus agency support costs of US $119,092 for the Government of Germany; and US $504,004, plus agency support costs of US $60,996 for the Government of Italy.