Decision 90/22

The Executive Committee decided:

1. To note the progress report on implementation of stage II of the HCFC phase-out management plan (HPMP) for Viet Nam, submitted by the World Bank and contained in documents UNEP/OzL.Pro/ExCom/90/9, UNEP/OzL.Pro/ExCom/90/9/Corr.1 and UNEP/OzL.Pro/ExCom/90/9/Add.2;
2. To approve, in principle, the revised funding for stage II of the HPMP for Viet Nam of US $8,774,275, consisting of US $7,953,526, plus agency support costs of US $556,747, for the World Bank and US $233,630, plus agency support costs of US $30,372, for the Government of Japan;
3. To approve also the following changes to stage II of the HPMP for Viet Nam:
   1. The revised funding for the air-conditioning manufacturing sector would be US $584,612, on the understanding that the participating enterprises committed to no longer importing R-410A-based air-conditioning units after completion of the project;
   2. The revised funding for the polyurethane (PU) foam manufacturing sector would be US $2,529,589, on the understanding:
      1. That the maximum level of funding for the conversion of the enterprises Darling and Tan A would be US $600,000;
      2. That the maximum level of funding for support to up to four blending houses would be US $1,180,000, noting that such funding could be disbursed only in line with decision 77/35 and that the World Bank would include in the submission referred to in sub-paragraph (d)(ii) below the number of small and medium-sized enterprises that had signed letters of commitment to participate in the project to convert to pre-blended hydrofluoroolefins;
      3. That only eligible enterprises with confirmed consumption of HCFC‑141b contained in pre-blended polyols would be assisted, and the World Bank would include the list of those enterprises in the project completion report (PCR);
      4. That the capacity converted to low-global-warming-potential (GWP) alternatives in the assisted enterprises under the project would not be eligible for further funding from the Multilateral Fund;
      5. That, on the basis of the information on eligible costs to be submitted to the 91^st meeting, the Government of Viet Nam, through the World Bank, would return to the 91^st meeting the difference between the agreed maximum funding level (US $2,529,589) and the eligible costs;
   3. The revised funding for the refrigeration manufacturing sector of up to US $1,405,292 based on the phase-out of 117.11 metric tonnes of HCFC-22 at eligible refrigeration manufacturing enterprises, on the understanding:
      1. That the Government would have flexibility to use the approved funding for the sector to undertake technical assistance activities to assist conversions in the sector as long as the overall cost-effectiveness of the sector remained within the US $12.00/kg as approved by the Executive Committee;
      2. That only eligible enterprises with confirmed consumption of HCFC-22 in refrigeration manufacturing (and not assembly) would be assisted. and the World Bank would provide the list of those enterprises in the PCR;
      3. That the enterprises assisted under the project would commit to use the converted capacity only to manufacture low‑GWP‑based refrigeration equipment and would not import high‑GWP‑based refrigeration equipment;
      4. That, on the basis of the information on eligible costs to be submitted to the 91^st meeting, the Government of Viet Nam, through the World Bank, would return to the 91^st meeting the difference between the agreed maximum funding level (US $1,405,292) and the eligible costs, plus 8 per cent associated with the project management and implementation unit and possible technical assistance;
   4. The revised funding for the refrigeration servicing sector of US $2,699,570, resulting in an additional reduction from the country’s remaining HCFC‑22 consumption eligible for funding of 5.84 ODP tonnes;
   5. The revised funding for technical assistance and the project management and implementation unit of US $734,463, on the understanding that that funding could be reduced in line with sub-paragraph (c)(iii)d. above, and that the Government of Viet Nam would have flexibility to choose, at the 91^st meeting, whether any return to the Multilateral Fund associated with technical assistance and the project management and implementation unit would be in the form of funding or additional reductions from the country’s remaining HCFC-22 consumption eligible for funding calculated at US $4.80/kg, or a combination thereof;
   6. An extension of the date of completion of the project to 31 December 2023;
4. To note:
   1. That the Government of Viet Nam would issue a ban on the import of HCFC-141b contained in pre‑blended polyols and on the use of HCFC-141b contained in imported pre‑blended polyols by 1 January 2023;
   2. That the Government would submit, through the World Bank, 10 weeks in advance of the 91^st meeting:
      1. A progress report detailing inter alia the following: progress towards implementation of the ban on HCFC‑141b contained in pre‑blended polyols; the number of blending houses, PU foam and refrigeration manufacturing enterprises that had signed sub-grant agreements, including their cost and associated HCFC phase-out; and a detailed implementation plan for the servicing sector in line with the revised level of funding specified in sub‑paragraph (c)(iv) above; and
      2. A draft revised agreement reflecting inter alia the revised level of funding, including a possible final tranche in 2022, additional reductions in consumption of HCFC-22 eligible for funding and a revised date of completion of the project.