Guide for the presentation of tranches of HCFC …multilateralfund.org/Our Work/countries/Shared...

MULTILATERAL FUND FOR THE IMPLEMENTATION OF THE MONTREAL PROTOCOL

Inter-agency Coordination MeetingMontreal, 4 – 6 September 2018

MLF/IACM.2018/2/17

23 August 2018

GUIDE FOR THE PRESENTATION OF TRANCHES OF HCFC PRODUCTION SECTOR PHASE-OUT MANAGEMENT PLANS

(UPDATED AUGUST 2018)

A guide for the presentation of tranches of HPPMPs

Note by the Fund Secretariat

1. The Secretariat has developed the following guide (the Production Guide) to assist and facilitate the preparation of progress reports on the implementation of tranches of HPPMPs, and the accompanying annual implementation plan associated with the subsequent tranche for which funding is being sought. The Production Guide is supplemented by Annex I, the Format for progress reporting and annual implementation plan (the Format).1

2. The Production Guide took into account the extensive experience of the Multilateral Fund in the review of progress reports and plans of action for production phase-out. It follows the information requirements outlined in Appendix 4-A (i.e., “format of tranche implementation reports and plans”) of the agreement between the Government of China and the Executive Committee for the reduction in production of HCFCs, and takes into account all policies and decisions of the Multilateral Fund. The Production Guide has been developed in the context of the HPPMP implementation in China. For HPPMP implementation in other countries which have only a small number of HCFC producers, the Production Guide will be simplified as applicable. The Production Guide will be periodically revised as experience continues to be acquired in the preparation and submission of tranches of HPPMPs, and as new guidelines are agreed upon by the Executive Committee.

3. This Production Guide sets out the minimum information to be included in progress reports and plans of action associated with tranches of HPPMPs. The relevant Executive Committee decisions are also cited. A suggestion is made as to the maximum length of each section. Agencies are requested to provide data in tabular form (in Word or Excel formats) and to minimize graphical representation of data and photographs. Any additional information may be provided as an annex to the document.

4. Implementing agencies are invited to take note of the following when submitting a tranche request for HPPMPs:

(a) The progress report and plan of action should be prepared by the lead implementing agency jointly with all cooperating implementing agencies, where applicable. Consultations with the country on the progress report and proposed annual plans should take place as part of the process before the document is submitted.

(b) An endorsement letter from the Government of the country whose HPPMP tranche is being requested must accompany the official submission of the tranche request by the due deadline. Any submission without the required endorsement letter will not be reviewed by the Secretariat and will not be considered an official submission.

5. To further facilitate the process of submitting a tranche of an HPPMP, the first page of the Production Guide contains a “checklist” to be filled out by the relevant lead implementing agency with the minimum mandatory requirements for the tranche’s consideration by the Executive Committee. A list with relevant sources of information, including several documents that have been considered by the Executive Committee for the adoption of relevant decisions on HCFC phase-out, is presented at the end of the Production Guide.

1 At the 74th meeting, the Executive Committee noted the Format for data presentation and requested the World Bank to use it when preparing the submission of the progress reports and tranche implementation plans for the HPPMP for China (decision 74/57).______________________________________________________________________________________The Multilateral Fund Secretariat 2


6. The Production Guide consists of the following main sections:

Checklist for submission of an HPPMP Project cover sheet Progress report Tranche implementation plan Change to the Agreement Relevant sources of information

______________________________________________________________________________________The Multilateral Fund Secretariat 3


PROJECT COVER SHEET: TRANCHE REQUEST

COUNTRY NAMELEAD IMPLEMENTING AGENCYCOOPERATING IMPLEMENTING AGENCY

SUBMISSION OF COMPLETE DOCUMENTATIONDocument Yes/No CommentsProgress report for previous trancheFinancial report (>20% disbursement from the previously approved tranche)Verification report Tranche implementation planOfficial endorsement letterRevised Agreement (where applicable)

HCFC REGULATIONS IN PLACERegulation Yes/No CommentsHCFC licensing system (operational)HCFC quota system (operational)

SUBMISSION OF ODS DATA REPORTSReport Yes/No Year of data CommentsCountry programmeArticle 7 data (latest report)Explain any data discrepancies:

HPPMP DOCUMENTPhase-out commitment (%) Year of commitment

LATEST ANNUAL PROGRESS AND FINANCIAL REPORT REMARKS (Latest Status Report if relevant)Provide the latest updated information either contained in the Annual Progress and Financial Report or the latest status report.



I. PROJECT COVER SHEET

1. Part of the information included in the project cover sheet is extracted by the Secretariat from reports prepared and submitted by Article 5 countries (e.g., progress report on the implementation of the country programme and consumption and production of ozone-depleting substances (ODS) reported under Article 7 of the Montreal Protocol), or documents considered by the Executive Committee (e.g., business plans). The tables on targets and funding are extracted from the HPPMP document (as approved) and the Agreement between the Government concerned and the Executive Committee. Therefore, it is important to verify the accuracy of the reported data and to submit relevant reports on time.

Decision 52/5(f): Country programme implementation data had to be submitted in advance of the last meeting of the year and subsequent meetings as a precondition for the approval and release of funding for projects.

II. PROGRESS REPORT (maximum 10 pages)

II.1 Background (one paragraph)

2. Background information relevant to the approval of the HPPMP should be provided. This information must include: the meeting at which the HPPMP was approved, the percentage reduction on HCFC baseline to which the Government concerned has committed itself, and the year of commitment (e.g., 35 per cent by 2020), the total level of funding approved in principle (disaggregated by lead and cooperating implementing agencies, where applicable), and the total level of amount approved in previous tranches (disaggregated by lead and cooperating implementing agencies, where applicable). This information can be obtained from and must be consistent with the decision adopted by the Executive Committee at the meeting at which the HPPMP was approved.

II.2 ODS policy/legislative/regulatory and institutional framework

3. This section should address section C of the Format (attached as Annex I to this revised guide). A brief description should be provided on all legislation and/or regulations that were revised/issued relating to HCFCs, including: ban on establishment of new HCFC production lines for controlled use; implementation of licensing and quota for HCFC production and trade; ban on import of HCFC-based equipment; ban on import of HCFCs including HCFC-141b in bulk and/or contained in imported pre-blended polyols (particularly for countries where this was a pre-condition for funding the conversion of enterprises using imported pre-blended polyols); and other government initiatives, if any. A summary of regulations can be presented in Table 7 of the Format.

II.3 HCFC consumption and production

4. This section should address section A of the Format. The levels of HCFC production should be reported from 2010 up until the latest information available prior to the tranche submission. The progress report should provide explanations on any significant increase/decrease of the production level, change of stock level, or other related information. It should also explain any deviations in actual HCFC production reductions for the reporting year from the planned reductions and adjustment of the reduction strategy (if any) for the next year. Table 1 to 3 of the Format should be used to provide quantitative data.

II.4 HCFC production phase-out activities (four to six pages plus tables)

5. The activities implemented during the tranche should be clearly described, comparing targets planned versus those accomplished, problems encountered and how they were resolved, and lessons learned. Quantifiable information should be provided to the extent possible.

Decision 47/50: (a) To note the report on options for monitoring and assessing the progress of agencies with ______________________________________________________________________________________The Multilateral Fund Secretariat 5


regard to multi-year agreements contained in document UNEP/OzL.Pro/ExCom/47/54; (b) to adopt the following options for improving the accuracy of progress reporting on multi-year agreements: (i) to request the Secretariat and the implementing agencies to continue to review the national implementation carried out in the previous year and to provide additional information in annual implementation plan submissions on disbursements and completed activities, including information on when delayed activities funded by an annual tranche were to be completed. There should also continue to be a comparison of what had been planned in the previous annual tranche and what had been achieved. The disbursement information should be provided cumulatively and data concerning actual or planned commitments could also be provided, as appropriate. The information should also specify how the relevant flexibility clause in the agreement was implemented and/or how to allocate unused funds from previous tranches.(ii) to request the Secretariat to continue to monitor annual tranches in the context of documents on implementation delays and balances, noting that those monitoring tools appeared to have encouraged the removal of impediments to completing projects and activities and so resulted in more timely final disbursement of approved funds to Article 5 countries. To make the process more effective, it could further request implementing agencies to include in funding requests for annual tranches the dates of completion of the tasks associated with those annual tranches; (c) to request Implementing Agencies to record phase-out according to the actual and real levels of production achieved in annual tranches of multi-year agreements, while noting that in some cases the phase-out might need further explanation and that there should be consistency in the use of the definition of planned and actual phase-out; (d) that a separate sub-agenda item on delays in the submission of annual tranches and disbursement of funds for tranches and obligations should be included for future meetings; and (e) to request implementing agencies to inform countries of the need to exceed the phase-out indicated in an agreement where necessary to meet the obligations of the Montreal Protocol, as well as those cases where actual production data had resulted in changes to the phase-out indicated in the agreements.

II.4.1 Production quotas and actual production (One to two pages and tables)

6. This section should address section B of the Format. The submission should elaborate on how the quotas were distributed to achieve the overall HCFC production control targets and to meet the needs of domestic consumption and export; any integration or industrial optimisation that had occurred; any change in ownership reported by enterprises; and quantities and types (permanent or temporary) of quota trades among producers. Tables 4 to 6 of the Format should be used to provide quantitative data.

II.4.2 Technical assistance activities (One to two pages and tables)

7. This section should address section D of the Format. The progress report on technical assistance (TA) activities should clearly describe the activities conducted to achieve the objective of each TA, status of implementation and progress made measured against the milestones, any problem encountered and causes for delays. For training activities, the number of participants actually trained should be specified in the achievement. Table 8 of the Format can be used to provide a summary of implementation status of TA activities. The column on interim milestones and deliverables should indicate whether the planned interim milestones have been achieved, partially achieved or not achieved. For those TA activities of a research and study nature, a summary of the TA elaborating on the main technical issues addressed, expected outcomes and their relevance to the HCFC production phase-out should be included in the progress report.

II.4.3 Other impacts on the environment including on the climate (One to two pages and tables)

8. This section should address section F of the Format. The progress report should include the potential impact on the environment, with emphasis on the climate, associated with the phase-out of HCFC production, taking into account the global-warming potential (GWP) of the substances. Activities to demonstrate the best efforts made to manage HCFC production and associated by-product production in accordance with best practices to minimize associated climate impact should be clearly described (as required by decision 69/28(e)(viii)). Table 12 of the Format can be used to provide quantitative data.



Decision 54/39(g)(v): Cost and benefit information based on the full range of alternatives considered, and associated ODP and other impacts on the environment including on the climate, taking into account global-warming potential, energy use and other relevant factors.Decision XIX/6: (9) To encourage Parties to promote the selection of alternatives to HCFCs that minimize environmental impacts, in particular impacts on climate, as well as meeting other health, safety and economic considerations; (11) to agree that the Executive Committee, when developing and applying funding criteria for projects and programmes, and taking into account paragraph 6, give priority to cost-effective projects and programmes which focus on, inter alia: (a) phasing out first those HCFCs with higher ozone-depleting potential, taking into account national circumstances; (b) substitutes and alternatives that minimize other impacts on the environment, including on the climate, taking into account global-warming potential, energy use and other relevant factors; (c) small and medium size enterprises.Decision 69/28(e) 2 : (viii) [country] agrees to coordinate with its stakeholders and authorities to make best efforts to manage HCFC production and associated by-product production in HCFC plants in accordance with best practices to minimize associated climate impacts; (ix) [country] agrees to optimize the implementation of the HPPMP in order to minimize environmental and climate impacts as much as possible, including by giving priority to HCFC production closure to achieve HCFC reduction targets set forth in decision XIX/6.

II.4.4 Lessons learned (one to two pages and tables)

9. In addition to the information from the progress report format, an analysis should be provided on the lessons learned, issues encountered and how these were addressed. It should also include information on activities that are being or will be undertaken to ensure the long-term sustainability of the training programmes and other TA activities. How these activities link with the new activities being proposed in the subsequent tranche of the HPPMP should also be explained.

II.4.5 Project management unit (PMU) (one page maximum)

10. This section addresses the roles and responsibilities of key stakeholders involved in the management and implementation of the tranche of the HPPMP including, inter alia, government departments directly involved in the implementation of the tranche of the HPPMP, the Ozone Unit, the lead implementing agency and the cooperating implementing agencies (where applicable), and non-governmental organizations including industrial associations. It should include a description of the activities conducted by the PMU in relation to the expenditures in the detailed financial report. It should also include a brief description of the procedures established to monitor progress in the implementation of all HCFC phase-out activities.

11. Particular emphasis should be placed on the Ozone Unit and the PMU, differentiating the main roles and responsibilities of these stakeholders.

Decision 53/37(e): Institutions and capacities in Article 5 countries developed through Multilateral Fund assistance for the phase-out of ODS other than HCFCs should be used to economize the phase-out of HCFCs, as appropriate.Decision 54/39(i): HPMPs should address: (i) the use of institutional arrangements mentioned in decision 53/37(e) and (f); (ii) the roles and responsibilities of associations of refrigeration technicians and other industry associations and how they could contribute to HCFC phase-out.

II.5 Financial report (one page and tables)

12. This section should address section E of the Format. A financial report clearly summarizing in tabular form the approved funding, disbursements made, funds committed, as well as the balance available for future activities, during the implementation of the last tranche and for all previously

2 This decision was taken in the context of the HPPMP for China. As this issue is relevant to any country, it has been included in the guide replacing “China” with “[country]”.______________________________________________________________________________________The Multilateral Fund Secretariat 7


approved tranches must be provided. In cases where funding is transferred from the bilateral and/or implementing agency to a national execution agency, the levels of funds disbursed to HCFC producers and the interest accrued from the funds held by the execution agency should be clearly indicated. The financial disbursement for each TA activity and to HCFC producers for quota reduction/closure contracts should be reported separately. Tables 9 to 11 of the Format should be used to provide quantitative data.

13. In accordance with decision 81/46, starting in 2019 the financial report should include a detailed breakdown of the expenditures by the PMU using the format contained in Annex II of the present document.

14. A request for funding a tranche should be submitted only when there is a significant level of implementation of activities initiated with previously approved tranches, and where the rate of disbursement of funding from the previously approved tranche has reached 20 per cent.

Decision 57/15: Bilateral and implementing agencies should not submit for the Committee’s consideration requests for funding of tranches of multi-year agreements with low rates of implementation of activities initiated with previously approved tranches and where the rate of disbursement of funding available from the previously approved tranche was less than 20 per cent, even when the levels of consumption of the ODS under consideration were below the maximum allowable levels under the Montreal Protocol and in the Agreement between the Government concerned and the Executive Committee.Paragraph 19(b) and (c) of Agreements: (a) The Executive Committee will not provide the funding in accordance with the Funding Approval Schedule unless the Country satisfies the following conditions at least twelve weeks in advance of the applicable Executive Committee meeting set out in the Funding Approval Schedule: (b) The achievement of these targets has been independently verified and the verification report will be submitted at least eight weeks in advance to the Secretariat of the relevant Executive Committee meeting, unless the Executive Committee decides that such verification is not required; (c) The Country has submitted: annual implementation reports in the format in Appendix 4-A (“Format of Implementation Reports and Plans”) covering each previous calendar year and confirming that the conditions set out in paragraphs 6 to 12 of this Agreement have been met where applicable; has achieved a significant level of implementation of activities initiated with previously approved tranches; and the rate of disbursement of funding available from the previously approved tranche exceeded 20 per cent. Decision 81/46: (a) To note the information on the draft financial reporting format for annual project management unit (PMU) expenditures for the HCFC phase-out management plan (HPMP) and HCFC production phase-out management plan (HPPMP) for China contained in document UNEP/OzL.Pro/ExCom/81/29; (b) To request UNDP, in cooperation with the sector lead implementing agencies, to use the financial reporting format for the PMU expenditures contained in Annex X to the report of the 81st meeting in their annual tranche progress reports, starting in 2019; (c) To request the implementing agencies to consider whether there was a need to amend their respective agreements with the Government of China with a view to ensuring that the financial reporting on PMU expenditures was sufficiently detailed to satisfy the requirements of their respective financial reporting to the Executive Committee; and (d) To review the financial reporting format for the annual PMU expenditures at the first Executive Committee meeting of 2020.

III. TRANCHE IMPLEMENTATION PLAN (three pages)

15. A detailed description of the activities to be implemented with regard to regulations, strategy for the reduction of ODS production, distribution of quotas, TA and project monitoring should be included. The overall control targets for the year should be presented in Table 13 of the Format. Quotas issued to enterprises based on the overall production quota for ODS use and the production quota for domestic ODS use for each substance can be provided in Table 13a-e.

16. The strategy for the reduction of ODS production should be clearly described. Information on closure and quota reduction contracts should be provided in Tables 14a-e and 15a-e of the Format.



17. For each TA activity, the annual implementation plan should clearly describe its rationale, objective, scope, project duration, completion date, expected outcomes and impact. It should also establish interim milestones and the associated funding disbursements to measure progress. Quantifiable information should be included to the extent possible. For training activities, the number of trainees should be specified under the milestones. The level of funding associated with each proposed activity should be clearly indicated. Table 16 of the Format can be used to provide quantitative data.

18. Countries should develop strategies to achieve the required reduction in HCFC production while taking into account climate impact, including GWP values of ODS being produced, energy use, raw material consumption and other relevant factors. Actions to address specific conditions of the approval should be clearly elaborated.

19. In line with the flexibility clause to reallocate approved funds according to evolving circumstances in order to achieve the smoothest reduction of production and phase-out of HCFCs in the relevant agreements between the Government concerned and the Executive Committee, major changes must be documented. Also, any enterprise that has been included in the HPPMP for closure and which is found to be ineligible under the guidelines of the Multilateral Fund (e.g., due to foreign ownership and date of establishment), will not receive assistance. This information should be included as part of the annual implementation plan.

20. A detailed budget breakdown for the activities to be implemented during the tranche should be provided in Table 17 of the Format.

ANNEX: CHANGES TO THE AGREEMENT

21. Changes to be introduced to an approved Agreement between the Government concerned and the Executive Committee should be indicated clearly.

RELEVANT SOURCES OF INFORMATION

Final reports of the meetings of the Executive Committee (www.multilateralfund.org)

The policies, procedures, guidelines and/or criteria documents of the Multilateral Fund Secretariat (www.multilateralfund.org)

Inventory of approved project proposals, Multilateral Fund Secretariat (distributed to implementing agencies)

Annual progress and financial report of the implementing agencies

Consolidated business plan of the Multilateral Fund as endorsed by the Executive Committee

Progress reports on the implementation of the country programme

Article 7 data reported by Article 5 counties (http://ozone.unep.org/Data_Reporting/Data_Access/)

Document UNEP/OzL.Pro/ExCom/47/54 on options for monitoring and assessing the progress of agencies with regard to multi-year agreements

Document UNEP/OzL.Pro/ExCom/53/60 on options for assessing and defining eligible incremental costs for HCFC consumption and production phase-out

The Agreement between the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol and the Government of China for the Phase-out of Production of HCFCs Required by the Montreal Protocol, decision 71/49(d)

Format for reporting progress per decisions 72/45(e), 73/74 and 74/57


http://ozone.unep.org/Data_Reporting/Data_Access/


Annex X of document UNEP/OzL.Pro/ExCom/81/58 (Report of the eighty-first meeting of the Executive Committee)



Annex I

FORMAT FOR HCFC PRODUCTION SECTOR PROGRESS REPORT AND ANNUAL IMPLEMENTATION PLAN3

Background

1. The progress reports and tranche implementation plans should follow the “Updated guide for the preparation of tranches of HCFC production phase-out management plans (HPPMPs)” (the Production Guide). In addition to the information in the Production Guide, the following data is specifically required for the production sector.

2. The updated draft Format has been developed in the context of HPPMP implementation in China. For other countries which have only a small number of HCFC producers, the progress reports and tranche implementation plans will be simplified as applicable.

Progress report

A. Information on overall targets and production level of stage X

3. As required by the Guide, the progress report should contain narrative observations/explanations as relevant on any significant increase/decrease of the production level, change of stock level, or other related information. It should also explain any deviations in actual HCFC production reductions for the reporting year from the planned reductions, and adjustments to the reduction strategy (if any) for the next year.

Table 1: Overall control targets and actual HCFC production for ODS use by chemicalSubstance 2013 2014 2015

Planned Actual Planned Actual Planned Actualmt ODP mt ODP mt ODP mt ODP mt ODP mt ODP

HCFC-22 HCFC-123 HCFC-124 HCFC-141b HCFC-142b Total

Table 2: Reduction amounts of HCFCs by chemical in ODP tonnes* Year 2013 2015 Total for stage I Reduction per HCFC as percentage of

overall reductions (%)Substance Planned Actual Planned Actual Planned Actual

HCFC-22 HCFC-123 HCFC-124 HCFC-141b HCFC-142b Total

*Example provided in this table is for stage I; subsequent stages will have different reduction amounts

3 The Format has been developed in the context of HPPMP implementation in China. For other countries which have only a small number of HCFC producers, the progress reports and tranche implementation plans will be simplified as applicable.______________________________________________________________________________________The Multilateral Fund Secretariat 11


Table 3a-e: Production capacity, starting point and yearly production by line

Ref. no. Plants Line

no.

Production capacity

2010 production

2013production

2014production

2015

Operational status*

productionODS use

FS use

ODS use

FS use

ODS use

FS use

ODS use

FS use

mt/y mt/y mt/y mt/y mt/y mt/y mt/y mt/y mt/y (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Total

* Please describe the operational status of the plant. This could be one or a combination of the following situations: i) the line is technically operational (able to produce); ii) the line was in full production; iii) the line was in partial production for certain reasons (i.e. market demand, high level of stock, etc.); iv) the line stopped producing for a certain time for certain reason (specify the reason, i.e. a closure contract was signed, or it does not meet environmental standards, or lack of market demand, etc.); v) a contract has been signed for reduction or closure; iv) it has been dismantled or partially dismantled; v) any other situations unforeseen at this stage. 4. The Government of [Country] should notify the Executive Committee if any additional HCFC production lines are established beyond those covered in the Agreement with the Executive Committee. The progress report should also report any changes in the names of enterprises covered by the HPPMP. If any enterprise is awarded a compensation contract (closure or reduction), the progress report should provide the information on change of ownership, if any, and indicate the percentage of transnational corporation ownership resulting from the change.

B. Information on HCFC production quota, reduction contracts and production closure contracts

Table 4: Overall production quotas of HCFCs issued for 2013 - 2015

SubstanceControl target for

2013 and 2014Production quota

issued for 2013Production quota

issued for 2014Control target for

2015Production quota

issued for 2015mt ODP mt ODP mt ODP mt ODP mt ODP

HCFC-22HCFC-123HCFC-124HCFC-141bHCFC-142bTotal

Table 4a-e: xxxx (year) ODS production quota for [chemical]

Ref. no.

HCFC-xx plants

Initial quota Quota trading Final quotas HCFC-xx productionODS

productionDomestic

useODS

productionDomestic

useType

of trade*

ODS production

Domestic use Total ODS use FS use

mt/y mt/y mt/y mt/y mt/y mt/y mt/y mt/y mt/y(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

Total *Please specify if the trade is temporary (for the year only) or permanent (for all future years).

Table 5a-e: xxxx (year) Quota reduction and closure contracts for HCFC-xx (chemical)Ref. no. HCFC-xx

plants

Production in 2009

Production in 2010 Baseline

Reduction under

contract

Contract value

Contract no.

Project no.

(mt) (mt) (mt) (mt) (US$) Total



Table 6a-e: Overview of producers with quota reduction/production line closure and remaining eligible production of HCFC-xxx

Ref. no.

HCFC producers

Reduction /closure in HCFC-xx production and remaining eligible production for ODS use (mt)

2010 (SP) 2013 reduction

Remaining eligible

2014 reduction

Remaining eligible

2015 reduction

Remaining eligible

Enterprise 1Enterprise 2

Total

C. Information on policies and regulations

5. Progress reports should clearly describe relevant policies and regulations established for HCFC production phase-out and any revisions and expansions relative to the last progress report and any relevant comments related to their status of implementation.

Table 7: Policies relevant to HCFC production phase-out and status of implementation

Policy and regulationSummary of major

measures relevant to HCFCs

Date of effectiveness Comments and status of implementation

Any revisions/expansion

D. Information on technical assistance activities

6. A detailed report on progress made in implementing technical assistance (TA) activities should be provided in narrative text and should describe the status of implementation of TAs, any problems encountered and the reason for delay. Progress on each TA needs to be measured against the milestones. For training activities, the number of participants should be specified in the achievement. Table 8 can be used to provide a summary of the implementation status of TA activities. The column on interim milestones and deliverables should indicate whether the planned interim milestones have been achieved, partially achieved or not achieved. For TA activities of a research and study nature, a summary of the TA should be included in the progress report.

Table 8: xxx TA activities: overview, ongoing and completed TA

Name of TA

Contractor

Contract date

Completion date Contract amount

Interim milestones and deliverables* A summary

of the TA

Outcome and use in

the HPPMPPlanned

Actual (US $) MS 1 MS 2

2013 TA-1 TA-2

2014 TA-1 TA-2

* Please provide a description of the status of implementation toward achieving the planned milestones

Comments:

E. Financial reporting

Observations/explanations as relevant:



Table 9a: Funding committed and balanceItem Total 2013 Tranche 2014 Tranche 2015 Tranche 2016 Tranche

(US$) (US$) (US$) (US$) (US$)Total funding approved in principle2013 Reduction contracts2015 Closure contractsTA activitiesApproved management costRemaining balance

Table 9b: Financial report for actual disbursementYear 2013 Tranche

(US$)2014 Tranche

(US$)2015 Tranche

(US$)2016 Tranche

(US$)Total(US$)

Funding approved by ExCom and released to the implementing agenciesFunds disbursed from the implementing agencies to national agencyBalance at the implementing agenciesFunds disbursed by the national agency to enterprisesTA funds disbursed by the national agencyApproved management costOverall balance at the national agencyInterest accrued by the national agency accountBalance

Table 10: Financial report on technical assistance activities

TA activity Duration

Contract amount (US$)

Disbursement(US$)

Percent of contract

(%)Date

Disbursed in reporting

year(US$)

Accumulated disbursement

(US$)

Remaining balance

as of [date] (US$)

2013 TA activitiesTA-1 1st

2nd 3rd 4th

Total

Table 11a-e: Financial status of quota reduction/closure contracts at enterprise level for HCFC-xx Ref. no. Producer Type*

HCFC reduction

(MT)

Contract amount (US$)

Contract date

Planned financial

completion date

Actual financial

completion date

Disbursement in previous

year(US$)

Disbursement in reporting

year(US$)

Accumulated disbursement

(US$)

Remaining balance (US$)

*Quota Reduction Contract (RED), Plant Capacity Reduction Contract (CRC), Plant Closure Contract (PCLO), or HCFC Producer Closure Contract (CLO).

F. Information on climate impact for the reporting period

7. The climate impact should be calculated using the reduction in HCFC production achieved during the implementation of the tranche through plant closure and/or quota reduction multiplied by the global-warming-potential (GWP) of the substances. The progress report should also describe activities demonstrating the best efforts made to manage HCFC production and the associated by-product production in accordance with best practices to minimize associated climate impact (as required by decision 69/28(e)(viii)).



Table 12: Climate impact for reporting year xxxx

SubstanceActual production reduction achieved during the tranche Global warming

potential*

Climate impact(million tons

CO2-eq)mt ODP

HCFC-22 HCFC-123HCFC-124HCFC-141b HCFC-142b HFC-23Total

*The values in this column should be consistent with the values listed in the Montreal Protocol.

Tranche implementation plan

G. Phase-out objective and control targets

8. A clear objective for reduction in HCFC production during the tranche should be established. Strategies should be developed to achieve the required reduction while taking into account the consumption target, imports of HCFCs required for the year and other relevant factors. The control targets for the year can be presented in Table 13.

Table 13. Production quota and quota for domestic use planned for year xxxx Production control

target Production quota issued Consumption control target

Production quota for domestic use issued

mt ODP mt ODP mt ODP mt ODPHCFC-22 HCFC-123HCFC-124HCFC-141b HCFC-142b Total

H. Enterprise level activities

9. Information on quotas issued to enterprises based on the overall production quota for ODS use and the production quota for domestic ODS use for each substance should be provided in Table 13a-e.

Table 13a-e: xxxx production quota issued for HCFC-xx

Plant no. Enterprise name Initial ODS production quota(mt)

Initial ODS production quota for domestic use

(mt)1 2 3

10. If there were reduction or closure contracts signed for the year, the information on the contracts should be presented in Table 14a-e and Table 15a-e.



Table 14a-e: 2015 HCFC-xx quota reduction contracts

Plant No.

Enterprise name

Production in 2009

(mt)

Production in 2010

(mt)

2013 initial quota(mt)

Reduction under

contract(mt)

Contract value(US$)

Contract No.

Project No.

Table 15a-e: 2015 HCFC-xx production line closure contracts

Plant No. Enterprise name

Line No.

Production capacity (mt/year)

Production in 2010 (mt)

Remaining eligible

production for ODS (mt/year)

Production capacity to be closed under the contract (mt/year)

Phase-out amount

under the current

reduction contract

(mt)

Previous phase-out under the reduction contract

(mt)

Additional retired

capacity* (mt/year)

Contract Amount (US $)

ODS FS

1 2 3

*Production capacity minus total phase-out.

I. Technical assistance activities

11. When planning TA activities, the annual implementation plan should include narrative text which clearly describes the rationale, objective, scope of activities, time frame, expected outcomes, impact and cost of the TA programme. It should also establish milestones with associated funding disbursements for TA activities to measure progress. The information on technical assistance activities can be presented in Table 16.

Table 16: Planning of TA activitiesName of

TADescription of activities

Project duration Contract amount(US $)

Implementation status

Summary of the TA

Expected outcome and use in the

HPPMPStart date Completion date

TA-1TA-2Total

* Please provide a description of milestones and the associated payment schedule.

12. The tranche implementation plan should include activities carried out by the Government to coordinate its stakeholders and authorities to make the best effort to manage HCFC production and associated by-product production in HCFC plants in accordance with best practices to minimize associated climate impacts (as requested by decision 69/28(e)(viii)).

J. Budget for activities planned for the tranche

13. The annual tranche implementation plan should include a detailed breakdown of the budget for all of the activities planned for the tranche using Table 17.

Table 17: Budget breakdown for year xxxx (tranche x)

Description of activities Phase-out (mt)

Budgets (US $)

Project duration

Project completion

date

Performance indicator

Enterprise level activitiesReduction contract

Enterprise 1 Enterprise 2



Description of activities Phase-out (mt)

Budgets (US $)

Project duration

Project completion

date

Performance indicator

Closure contract Enterprise 1 Enterprise 2

Technical assistance activities (TA)TA1 TA2

Policy, regulations and standards Project coordination and monitoring (PMU) Total



Annex II

FINANCIAL REPORTING FORMAT FOR THE PROJECT MANAGEMENT UNIT EXPENDITURES TO BE INCLUDED IN TRANCHE REQUESTS OF THE HCFC PHASE-OUT MANAGEMENT PLAN AND THE HCFC PRODUCTION PHASE-OUT MANAGEMENT PLAN

FOR CHINA (Annex X of document UNEP/OzL.Pro/ExCom/81/58)

Stage: ___________________________

Content Cumulative expenditure (US $) as of [DATE]

Remarks

Production RAC PU Foam

XPS Foam ICR Solvent Servicing

Sector costs Project staff Domestic travel International travel

Domestic meeting Costs for venue, equipment

rental and other costsInternational meetings Please specify which meeting

and number of participantsConsulting service

Consulting institutions and experts hired for project evaluation, financial and technical verification, technical review, bidding evaluation, technical support etc. Would also include contractual staff to help with high workload or special events, such as meetings, exhibitions and workshops, as well as translation-related costs

Sub-total sector costs

Share costsSupporting staff

Costs associated with apportioned supporting staff e.g., financial division, division of contract management, general affairs division, and other relevant divisions

Computer, internet, post, phone, printing, etc.

Office operation service and maintenance, utilities

Total

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