Decision 92/31

The Executive Committee decided:

1. To note:
   1. The progress report on the implementation of the second tranche of stage II of the HCFC phase-out management plan (HPMP) for Argentina;
   2. The delays experienced by Argentina and other countries in receiving international shipments as a result of COVID-19 in 2021;
   3. With concern, that the HCFC consumption in 2022 exceeded the maximum allowable consumption set out in the Agreement between the Government of Argentina and the Executive Committee for that year by 28.77 ODP tonnes;
   4. The challenges presented by the lack of supply of the low‑global‑warming‑potential (GWP) alternative to HCFC-141b in the foam sector, which had delayed implementation of stage II activities in the foam sector that would have allowed the Government of Argentina to phase out 85.92 ODP tonnes;
   5. That the Government of Argentina was undertaking the necessary steps to return to compliance with the Agreement;
2. To apply a reduction of US $175,000, plus agency support costs of US $12,250, for UNIDO, in line with Appendix 7-A of the updated Agreement between the Government of Argentina and the Executive Committee for stage II of the HPMP, as follows:
   1. To the third tranche of stage II of the HPMP for Argentina in the amount of US $25,000, plus agency support costs of US $1,750, for UNIDO;
   2. To the fourth tranche of stage II of the HPMP for Argentina in the amount of US $50,000, plus agency support costs of US $3,500, for UNIDO;
   3. To the second tranche of the Agreement between the Government of Argentina and the Executive Committee for the control of emissions of HFC-23 generated in the production of HCFC-22 at Frio Industrias Argentina, in the amount of US $100,000, plus agency support costs of US $7,000, for UNIDO;
3. Further to note:
   1. The commitment of the Government of Argentina not to issue import quotas and not to allow production totalling more than the maximum allowable consumption under the Agreement;
   2. That, in the event that alternatives were not available on the local market, high--GWP alternatives could be used, on a transitional basis only, and that the Government of Argentina would report to each Executive Committee meeting on the progress made towards ensuring that the selected technologies, including the associated components, are available on a commercial basis in the country, on the understanding that incremental operating costs would not be funded until the transition to the agreed alternative was complete;
   3. That the Fund Secretariat had updated the Agreement between the Government of Argentina and the Executive Committee, as contained in annex XVII to the present report, specifically Appendix 2-A, to reflect the reallocation of the third tranche from 2021 to 2023 and of the fourth tranche from 2022 to 2024, and paragraph 17, to indicate that the revised updated Agreement superseded that reached at the 80th meeting;
4. To request UNIDO to submit, with the fourth tranche request:
   1. The updated list of downstream polyurethane (PU) foam enterprises being assisted by the Multilateral Fund under stage II, including their HCFC-141b consumption phased out, the subsector concerned, the baseline equipment and the technology adopted;
   2. An update on the financial viability of the extruded polystyrene (XPS) foam enterprise Celpack and a decision on whether the enterprise would be assisted by the Multilateral Fund under stage II of the HPMP for Argentina in line with decision 84/64(d)(ii), noting that, in the event that the enterprise was not assisted by the Multilateral Fund, the funds associated with its conversion would be calculated taking into consideration the flexibility in the allocation of funds approved for the Government of Argentina in the XPS foam sector and would be deducted from the approval of the next tranche of stage II of the HPMP for Argentina;
   3. Revised dates for the commitment by the Government of Argentina to issue a ban on the import and use of HCFC-141b pure or contained in pre-blended polyols for the manufacture of PU foam; a ban on the import and use of HCFC‑22 and HCFC-142b for the manufacture of XPS foam; and a ban on the import and use of HCFC-141b for flushing refrigeration circuits during servicing;
5. To approve:
   1. On an exceptional basis, the extension of the duration of stage II of the HPMP for Argentina to 31 December 2024, given the implementation delays caused by the COVID-19 pandemic, and to review the situation at the time of submission of the next tranche in light of the availability of the selected technology for the PU foam sector; and
   2. The third tranche of stage II of the HPMP for Argentina, and the corresponding 2023–2024 tranche implementation plan in the amount of US $3,863,050, plus agency costs of US $270,414, representing the requested funding and agency support costs minus the reduction specified in subparagraph (b)(i) above.