Project Document - Deliverable · Web viewThe Montreal Protocol on Substances that Deplete the...

1. SITUATION ANALYSIS.

1.1 Context.

The Montreal Protocol on Substances that Deplete the Ozone Layer is an international treaty that aims to protect the ozone layer by eliminating the production and consumption of ozone depleting substances (ODS). Established in 1987, this agreement made history by becoming the first treaty on the environment to be universally ratified by 197 countries (Parties).

Brazil adopted the texts of the Vienna Convention and the Montreal Protocol by means of Decree No. 99.280 of 06 June 1990. However, since 1988, Brazil has taken actions to meet the goals of the Montreal Protocol through legislative provisions and public policies.

The Multilateral Fund for the Implementation of the Montreal Protocol (MLF) is a financial mechanism created to provide technical and financial assistance to developing countries1 to eliminate the consumption of ODS in accordance with specific timelines for phasing out controlled chemicals. Brazil is considered eligible for financial assistance provided by the MLF.

Brazil achieved the total elimination of Chlorofluorocarbons (CFCs) on January 1st, 2010, in accordance with the schedule established for developing countries. CFCs that had been previously consumed were completely eliminated in the manufacture of polyurethane foam (PU), in the manufacture of Refrigeration and Air Conditioning (RAC), and in industrial applications in the areas of solvents, sterilants and drugs with financial support from the Multilateral Fund.

Although the elimination of the consumption of CFCs has been performed successfully in Brazil, refrigeration and air conditioning equipments based on CFC-11 and CFC-12 are still operating. According to estimates by the Federal Government, in 2009, there were still about 10 million domestic refrigerators with CFC-12 in Brazil. According to a study conducted by UNDP, in 2005, there were about 500 Centrifugal Liquid Chillers operating with CFC-11 and CFC-12. With the ban of world production and importation of CFCs into Brazil in 2010, any maintenance work in this equipment started generating additional cost for the purchase and charging of these refrigerants.

Since they are old equipment, these appliances do not follow the technology adopted with reference to the energy efficiency rates, which results in high energy consumption for its owners (end users). In 2005, the installed power generation capacity in Brazil was 90.7 gigawatts (gW) and the prediction was for an additional demand of 41gW for the 2006-2015 cycle. Therefore, activities promoting energy efficiency are essential for the management of this growth in demand.

Besides having Ozone Depleting Potential (ODP), CFCs are also greenhouse gases (GHG) with high Global Warming Potential (GWP). CFC-11, for example, has a 4750² GWP, whereas CFC-12 has a 10,900 GWP2. Thus, actions to prevent the leakage of these substances either to reduce or to phase out their use in old equipments or during the equipment discarding processes result in an important mitigation measure for the

1 Countries (Parties) that operate under the aegis of Article 5, which present an annual per capita consumption of controlled substances below 300g on the date of enforcement of the Montreal Protocol for the Party.2 World Meteorolical (WMO). Scientific Assessement of Ozone Depletion:2010

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climate regime, being directly related to Indicator 7.3 of the Millennium Development Goals (MDGs).

In 2005, at the 47th Meeting of the Executive Committee of the Montreal Protocol (ExCom), the Multilateral Fund for the Implementation of the Montreal Protocol approved the donation of USD 1 million for the implementation of the "Demonstration project for integrated management in the Chiller subsector in Brazil, with emphasis on the application of energy-efficient, CFC-free technologies for the replacement of CFC-based chillers", under the condition of a contribution for the execution of other Chiller replacement activities of approximately USD 25 million from GEF and IDB.

1.2 Market Transformation for Energy Efficiency.

The GEF (Global Environment Facility) approved the project Market Transformation for Energy Efficiency (BRA/09/G31) with the overall objective to influence, transform, and develop the market for the operation of Energy Efficiency in Buildings in Brazil, leading to more sustainable and less carbon-intensive consumption.

The Project number is BRA/09/G31 and consists of six outcomes. The Outcome 3 is related to activities financed by the Montreal Protocol aiming to motivate initiative for the replacing of CFC in Chillers, which are energy inefficient and whose refrigerant has high ODP and GWP.

The resources available for this Outcome will be used to improve training in Energy Efficiency - EE, seeking to demonstrate the EE potential in replacing existing CFC-based liquid Chillers, as well as the economic and environmental benefits that can be obtained.

This project document aims, among others, to:

Allocate the USD 1 million resource referring to resources approved by the Multilateral Fund and constituting Outcome 3 of Project BRA/09/G31;

Describe expected outcomes, as well as project goals and activities.

1.3 National CFC Phase-Out Plan (NPP).

A total of USD 26.7 million in funding from the Multilateral Fund (MLF) was approved by the Executive Committee of the Multilateral Fund at its 37 th Meeting, in July 2002, to implement the National CFC Phase-Out Plan (NPP), which includes reduction in CFC consumption, according to the schedule provided in the agreement between the Executive Committee and the Government of Brazil.

To achieve the goals of reduction in the consumption of CFCs, in the National Plan includes investment, non-investment, technical assistance and knowledge transfer activities regarding the national and international markets.

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1.4 HCFC Phase Out National Programme (HPMP)

The HPMP was prepared with the objective to achieve the targets established by the Montreal Protocolo for the HCFCs phase out up to 2040. For that, it is foreseen two phases:

Phase 1: freeze, at that baseline level, consumption in 2013. The baseline is the average of the 2009 and 2010 levels.

Phase 2: actions to be develop from 2016 to reduce the HCFCs consumption up to its total phase out in 2040.

USD 19,597,166.00 was approved at the 64th Executive Meeting of the Multilateral Fund for the Phase 1 execution, which foresees the following activities:

Technology Conversion Project in the Polyurethane foam sector: phase out of the HCFC 141b consumption in the manufacturing sector of continuous panels, flexible molded foams (FMF) and integral skin foams (ISF), solar heaters, thermoware, pipe in pipe and packaging.

Servicing Sector Project: envisaging the reduction of the HCFC-22, it will be held good practices and maintenance training of the refrigeration sector technicians in the refrigeration and air conditioning installations of the supermarkets; good practices training of the refrigeration sector technicians in air conditioning (Split); execution of demonstratives projects to avoid the release of HCFC-22 in the supermarkets; set up an online database and information system in order to control the release of fluids refrigerants in supermarkets.

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2. STRATEGY

2.1 Country Strategy

As a Party of the Montreal Protocol on Substances that Deplete the Ozone Layer - ODS, Brazil committed itself to achieve the goals to phase out these substances. To that end, in 2003, the Brazilian government instituted the Interministerial Executive Committee for the Protection of the Ozone Layer (Prozon), composed of the following ministries:

Ministry of Environment (coordinator); Ministry of Agriculture, Livestock and Supply; Ministry of Foreign Affairs; Ministry of Development, Industry and Foreign Trade; Ministry of Finance; Ministry of Science, Technology and Innovation; and Ministry of Health.

Activities to phase down consumption and for the industrial conversion started in 1988, a year after the establishment of the Montreal Protocol banning the production and sale, in the form of CFC-based aerosols, products of cosmetics, toiletries, household sanitary use and perfumes. In these 23 years, the Brazilian government established a series of policies and laws that guided activities related to the protection of the ozone layer. Among them are:

Prohibition of the use of CFCs in new refrigeration products and foams; Import CFCs quotas for the equipment of the maintenance sector; Special consumption permission for some uses considered essential; Implementation of industry conversion projects in the refrigeration and foams

sectors through donations of the Multilateral Fund for the Implementation of the Montreal Protocol;

Implementation of a management system for CFC banks (collection & recycling);

Training for refrigeration technicians; Establishment of a national strategy for the replacement of Metered Dose

Inhalers (MDIs) that use CFCs as a propellant; Technical assistance to the sectors of solvents and sterilants; and Capacity-building for the control of ODS.

In September 2007, in order to continue actions to eliminate ODS, the Parties of the Montreal Protocol decided by means of Decision XIX/6 to anticipate the deadlines to phase out these substances. All countries pledged to abide by a new schedule for Hydrochlorofluorocarbons (HCFCs) phase-out. For developing countries, Brazil is included, the deadlines for the HCFCs phase-out were anticipated expecting total consumption phase-out by 2040.

Another concern of the Brazilian Government is regarding the increasing energy demand in the country, which calls for more specific actions to increase both capacity and diversification of the energy matrix and to make current power consumption more efficient.

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In this sense, the government established institutional elements to ensure energy safety, reduce consumption and increase the efficiency of electrical appliances, as listed below:

Establishment of the National Agency of Electric Energy (ANEEL) : established in 1996 with the main objective to regulate and control the generation, transmission, distribution and sale of electricity.

Law 9.991 of July 24, 2000 : stipulated that power distribution companies would have to dedicate 0.5% of their net profit to energy efficiency projects.

National Program for Energy Conservation (PROCEL) : national program designed to promote the rational use of electricity.

Brazilian Labeling Program for Energy Efficiency (PBE) : administered by INMETRO, establishes a classification method for electrical appliances based on their energy consumption levels.

Program for Energy Efficiency in Buildings (PROCEL-EDIFICA) : promoting actions and targets for energy efficiency in buildings.

In order to deal with this scenario of actions, targets and regulations, several Energy Saving Companies (ESCOs)3 were established in Brazil. ESCOs offer consumption analysis services and creation of environmental efficiency projects that include equipment replacement and process optimization in buildings and industries.

2.2 Project Strategy

This project aims to stimulate interest in an integrated manner to improve EE in buildings, demonstrating the EE potential in the replacement of CFC- and HCFC-based chillers. In particular, this project aims to implement the actions described below to achieve the goals of Outcome 3, funded by MLF.

i. Carry out the national inventory of chillers using CFCs and HCFCs and establish a priority list for replacement;

ii. Make an analysis of cost-effectiveness on such replacements;iii. Analyze favorable conditions for the removal of the barriers for the replacement

of the equipments with CFC and HCFC-based;iv. Demonstrate the power savings achievement by replacing CFC- and HCFC-

based Chillers;v. Provide capacity-building regarding environmental and economic impacts

related to the replacement of chillers with CFCs and HCFCs for owners, specialized technicians, government and ESCOs;

vi. Provide capacity building and training for the installation, operation and maintenance of the equipment with CFC- and HCFC for specialized technicians and owners and also for the Energy Saving Companies (ESCOs);

vii. Provide technical assistance for the development of an exchange/conversion project for public and private Chillers.

This project also includes actions that are complementary with public chiller replacement actions, in progress via the National CFC Phase-Out Plan (NPP).

3 ESCOs are Engineering companies specialized in Enery Conservation services, i.e., in promoting energy and water consumprion efficiency in facilities, using mainly performance contracts.

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2.3 UNDP Strategy

The United Nations Development Program (UNDP) is the United Nations’ global network for development, acting in 166 countries. Its core mandate is poverty alleviation. Working alongside governments, private sector and the civil society, UNDP connects countries to knowledges, experiences and resources, helping people build a decent life and working together on solutions drawn by member countries to strengthen local capacity and provide access to its human, technical and financial resources, to external cooperation, and to its extensive network of partners.

Under the Montreal Protocol, UNDP is an Implementing Agency (IA) that gives support to member countries of the Article 5 of this Treaty on the ODS phase-out. In Brazil, UNDP works in cooperation with the Brazilian government and in association with the private sector of production, academia and the civil society as the lead agency in the implementation of strategies and actions for the protection of the ozone layer and mitigation of climate change in the sectors of Polyurethane Foams, Refrigeration and Air Conditioning, Solvents and Sterilants.

UNDP’s objective in this Project is to ensure the coordinated management of the activities listed in its outcomes mentioned above in coordination with the Brazilian Government, GEF and IDB, ensuring their complementarity and execution in accordance with the commitments made to financing agents. Its actions are in accordance with the Result of the Cooperation Framework of the United Nations Development Programme (also known by the acronym UNDAF, i.e., United Nations Development Assistance Framework) regarding assistance to "Green Economy and Decent Work in Context of Poverty Eradication and Sustainable Development" and the Country Programme: Sustainable Development and Production Inclusion.

2.3.1. UNDP Technical Assistance

UNDP will provide support to the Brazilian Government in the implementation of this project through its network of knowledge and accumulated experience, organization and execution of capacity building, including but not limited to:

Assistance in the identification and hiring of national and international experts; Preparation of proposals for Terms of Reference and Technical Specifications

for the hiring of natural and legal persons for consultancies and for equipment purchase processes;

Enabling a work team to develop and execute the activities required in the Annual Action Plan and to oversee the activities to be performed; and

Monitoring and evaluation of targets, outcomes, and outputs achieved by the project, also providing its corporate management system to ensure the execution of activities.

To that end, UNDP seeks to ensure frequent evaluation and improvement of its actions in order to respond to the project demands, including reformulation, corrections or adjustments that may be needed during the execution period.

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3. OUTCOME AND RESOURCE MATRIX

Outcome 1: National inventory of CFC and HCFC-based liquid Chillers accomplished.

Institution in Charge: UNDP

Outcome Indicators:- Diagnosis of the amount of CFC-based liquid chiller equipment in operation in Brazil.

Partnership Strategy: National, Refrigeration Associations and Syndicates, ESCO Associations and Syndicates, other entities related to the energy system in Brazil.

Project Title and ATLAS ID:

EXPECTED OUTPUTS OUTPUT GOALS INDICATIVE ACTIVITIES INSTITUTION(S) IN CHARGE

INPUT

Output 1Inventory of CFC- and HCFC-based chillers in operation in Brazil.

(year 1)Database of CFC-based liquid chillers in operation in Brazil updated.

(year 1) Verification of companies listed in the existing inventory. Identification of possible companies still unidentified in the existing inventory. Registration of data on identified equipment. On-site verification, where necessary. Systematization of collected data.

UNDP Expert with experience in the refrigeration sector

Outcome 2: Technical and information material for promotion and dissemination of results achieved from the replacement of CFC- and HCFC-based liquid chillers elaborated and distributed.


Outcome Indicators: 400 training manuals for specialized professionals, 300 workbooks on operation and maintenance, and 2.000 primers elaborated and distributed.

Partnership Strategy: National, Refrigeration Associations and Syndicates, Energy Saving Companies (ESCOs) Associations and Syndicates, other entities related to the energy system in Brazil.


EXPECTED OUTPUTS

OUTPUT GOALS INDICATIVE ACTIVITIES INSTITUTION(S) IN CHARGE

INPUT

Output 1Technical material on the replacement of CFC- and HCFC-based liquid chillers, demonstrating EE potential.

(year 1) One EE Study on the replacement and conversion of the refrigerant of liquid chillers, including technical, economic and environmental aspects carried out.

(year 2) One training manual containing eight modules to improve the technical skills of specialized professionals in the sector prepared and published. The modules will address the following themes: a. energy efficiency potential brought by the replacement of inefficient CFC- and HCFC-based chillers;b. environmental benefits resulting

(year 1) Survey of information on: EE, optimization of central air conditioning systems, work methodology for the replacement of obsolete systems, economic and environmental benefits, chiller and air conditioning system operation and maintenance, project development with verification of conversion potentialities and replacement options, for the publication of technical manuals to be used in training modules. Formatting, graphic design and proof for the printing of materials, being: training module composed by eight manuals, workbook for practical training, primer and report for dissemination. Printing and distribution of the material in workshops and trainings

UNDP Experts with experience in the refrigeration sector

Company with experience in EE projects

ESCOs

Hiring of a company and/or natural person for the production of graphic

from the replacement of CFC- and HCFC-based chillers, which are energy inefficient, demonstrating the relation between climate change and ozone layer depletion and including environmental impacts resulting from the inadequate operation of chillers;c. economic benefits obtained from the replacement of CFC- and HCFC-based chillers, including cost and expected time of return analysis from chiller updating;d. adequate operation of chillers and of the related air conditioning system;e. adequate maintenance of chillers and of the related air conditioning system;f. optimization of chillers and air conditioning systems for adequate operation, with application of automated control tools for data management and storage;g. development of CFC- and HCFC-free chiller projects, analyzing the potential of refrigerant conversion or alternatives for equipment replacement for energy efficiency and reduction of fixed and variable costs;h. work methodology to be adopted for the replacement of outdated CFC- and HCFC-based chillers, contemplating adequate procedures

accomplished; Availability of the material produced in digital media, for free access by the interested public.

(year 2)

Systematization of data and results obtained by the project to replace centrifugal liquid chillers in public buildings under the NPP for the publication of a dissemination primer. Formatting, graphic design and proof for the printing of primers Printing and distribution of the material in workshops and trainings accomplished; Availability of the material produced in digital media, for free access by the interested public.

material

for the correct replacement with environmentally adequate disposal of residues. One workbook for the training of professionals working in equipment operation and maintenance developed and published.

(year 2) One workbook for dissemination of EE potential and economic and environmental benefits from the replacement of inefficient CFC- and HCFC-based chillers, including analysis of technical aspects of the air conditioning system elaborated and published; One report for dissemination of results achieved by the project for the replacement of centrifugal liquid chillers in public buildings in the scope of the National CFC Phase-Out Plan (NPP).

Outcome 3: Workshops, capacity building and training for specialized professionals and owners interested in the replacement of CFC- and HCFC-based liquid chillers carried out.


Outcome Indicators: 02 workshops, 120 capacity-building events and trainings for the replacement of chillers by specialized professionals, capacity building for 30 ESCOs, 240 training manuals distributed, 120 capacity-building events and trainings for chiller operation and maintenance, 1 seminar.

Partnership Strategy: National, Refrigeration Associations and Syndicates, Energy Saving Companies (ESCOs) Associations and Syndicates, other entities related to the energy system in Brazil.

Project Title and ATLAS ID:EXPECTED OUTPUTS OUTPUT GOALS INDICATIVE ACTIVITIES INSTITUTION(S

) IN CHARGEINPUT

Output 1Workshop to increase interest in the replacement or conversion of the refrigerant of CFC- and HCFC-based liquid chillers, demonstrating EE potential and economic and environmental benefits.

(year 1) 1 workshop for specialized professionals, owners and businessmen and ESCOs’ personnel carried out.

(year 2) 1 workshop for specialized professionals, owners and businessmen and ESCOs’ personnel carried out.

(years 1 and 2) Selection of municipalities for the organization of workshops based on the national inventory of CFC- and HCFC-based chillers updated by Outcome 1. Workshop preparation, based on the application of materials elaborated in Outcome 2. Hiring of mediator and speakers. Project dissemination and invitation to the main actors involved. Production of a certificate of participation in the event.

UNDP Expert with experience in the refrigeration sectorMediator and speakersCompany specialized in event organization

Output 2Courses for capacity building and training of specialized professionals.

(year 1) Capacity building and practical training for 40 specialized professionals carried out.

(years 1 and 2) Preparation of capacity building and training, based on the material produced in Outcome 2. Theoretical and practical training for the

UNDP Expert with experience in the refrigeration sectorABESCOTraining school

(year 2) Capacity building and practical training for 80 specialized professionals carried out.

replacement of obsolete CFC- and HCFC-based chillers, also approaching operational and maintenance aspects. Issuing of a certificate of participation.

Company specialized in event organization

Output 3Capacity-building events and training for ESCOs, for the replacement of obsolete CFC- and HCFC-based chillers, aiming to promote energy efficiency in buildings.

(years 1 and 2) Capacity building for 30 ESCOs carried out, with at least one professional per ESCO. 240 training manuals (containing printed and digital material) distributed to ESCOs.

(years 1 and 2) Preparation of capacity building and training for ESCOs, based on the material produced in Outcome 2. Theoretical and practical training for the replacement of obsolete CFC- and HCFC-based chillers, discussing mainly EE potential. Issuing of a certificate of participation.


ABESCO

Training school

Output 4Capacity-building and training for chiller owners, technicians, maintenance workers and operators on the operation and maintenance of chillers and air conditioning systems.

(year 2) Capacity building and training for more than 100 professionals (including owners) on the operation and maintenance of private liquid chillers carried out. Capacity building and training for 20 professionals on the operation and maintenance of public liquid chillers carried out.

(year 2) Preparation of capacity building and training, based on the material produced in Outcome 2. Theoretical and practical training on maintenance and operation. Issuing of a certificate of participation.


Training school

Output 5Final Seminar for the presentation of results achieved from the replacement/conversion of CFC- and HCFC-based chillers.

(year 3) 1 seminar for result dissemination carried out.

(year 3) Seminar preparation. Invitation to speakers and the public of stakeholders.

UNDP Expert with experience in the refrigeration sectorMediator and speakers

Outcome 4: Case studies to demonstrate the EE potential and economic and environmental benefits obtained from the replacement of CFC-based liquid chillers in public buildings carried out.


Outcome Indicators: Case study on EE obtained with the replacement of liquid chillers published.



EXPECTED OUTPUTS

OUTPUT GOALS INDICATIVE ACTIVITIES INSTITUTION(S) IN CHARGE

INPUT

Output 1Case studies to demonstrate the energy efficiency potential and economic and environmental benefits obtained from the replacement of CFC-based chillers in public buildings in the scope of NPP.

(year 1) Two case studies on EE and economic and environmental benefits obtained from the replacement of liquid chillers in public buildings, including technical, practical and theoretical aspects, carried out.

(year 1) Verification of the replacement activity, contemplating the history of the situation that was detected (maintenance, operation, equipment functionality). Analysis of energy consumption before and after replacement. Analysis of cost structure, evaluation of cost-effectiveness and time of return in terms of energy savings. Analysis of the conditions of the life cycle and environmentally correct final disposal of the fluid collected from the equipment that was replaced in the light of Brazilian legislation. Assessment of environmental impact. Simulated commissioning of the central air conditioning system, for verification of benefits that can be

UNDP Hiring of a company and/or natural person with experience in EE projects, includingABESCO/ESCO

obtained from the updating of its elements. Preparation of a report on replacement results. Availability of data to meet Outcome 2.

Outcome 5: Technical assistance for the elaboration of CFC- and HCFC-based liquid chiller replacement projects aiming to increase EE.


Outcome Indicators: 22 CFC liquid chiller replacement projects elaborated



EXPECTED OUTPUTS OUTPUT GOALS INDICATIVE ACTIVITIES INSTITUTION(S) IN CHARGE

INPUT

Output 1Technical assistance for the elaboration of projects for replacement/conversion of the refrigerant of CFC- and HCFC-based liquid chillers for interested public and private entities.

(years 1, 2 and 3) 22 projects for replacement/conversion of CFC- and HCFC-based liquid chillers elaborated.

Provision of specialized technical assistance for replacement/conversion of CFC- and HCFC-based chillers, with evaluation of buildings and operational situation of the refrigeration systems in use; EE evaluation; Cost estimate for replacement/conversion carried out; Provision of technical information to the owner of the chiller regarding replacement/conversion.

MMA and UNDP Hiring of an expert with experience in the refrigeration sector

ABESCO/ESCO

Output 2Monitoring of the execution of the CFC- and HCFC-based liquid chiller replacement/conversion projects developed in Output 1.

Goals (years 1, 2 and 3) Report, containing the tracking of the execution of replacement/conversion projects in Output 1, elaborated;

Specialized technical assistance for the monitoring of replacement/conversion activities, including guidance regarding the final disposal of residues; Data collection of replacement/conversion of chillers carried out; Analysis of chiller replacement/conversion, evaluating costs and EE; Dissemination of results obtained in the Final Seminar, predicted in Outcome 3, Output 5.

MMA and UNDP Hiring of an expert with experience in the refrigeration sector

ABESCO/ESCO

4. ANNUAL WORK PLAN – BUDGET SPREADSHEET

Year: 2012, 2013, 2014 and 2015

EXPECTED OUTPUTS PLANNED ACTIVITIESList associated activities

SCHEDULEINSTITUTION IN

CHARGE

PLANNED BUDGET

Year 1

Year 2

Year 3

Origin of resources (inform donor and source)

Budget description (line/item) Amount

Outcome 1: National inventory of CFC- and HCFC-based liquid chillers accomplished

Output 1Verification Report X UNDP MLF – Montreal

Protocol50,000,.00

Subtotal - Outcome 1: 50,000.00

Outcome 2: Technical and information material for promotion and dissemination of results achieved from the replacement of CFC- and HCFC-based liquid chillers elaborated and distributed.

Output 1Dissemination material X X UNDP MLF – Montreal

Protocol120,000.00


Outcome 3: Workshops, capacity building and training for specialized professionals and owners interested in the replacement of CFC- and HCFC-based liquid chillers carried out.

Output 1Workshop X X UNDP MLF – Montreal

Protocol40,000.00

Output 2 Capacity building and Training for Professionals

X X UNDP MLF – Montreal Protocol

60,000.00

Output 3 Capacity building and Training for Professionals

X X UNDP MLF – Montreal Protocol

60,000.00

Output 4 Training for owners, maintenance staff and operators on maintenance and operation

X UNDP MLF – Montreal Protocol

60,000.00

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Output 5Final Seminar on Results X UNDP MLF – Montreal

Protocol20,000.00


Outcome 4: Case studies to demonstrate the EE potential and economic and environmental benefits obtained from the replacement of CFC-based liquid chillers in public buildings carried out.

Output 1 Case Study – NPP project X UNDP MLF – Montreal

Protocol100,000.00


Outcome 5: Technical assistance for the elaboration of CFC- and HCFC-based liquid chiller replacement projects aiming to increase EE.

Output 1 Technical assistance for project preparation X X X UNDP MLF – Montreal

Protocol440,000.00

Output 2 Monitoring of project execution. X X X UNDP MLF – Montreal

Protocol50,000.00


TOTAL 1,000,000.00

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Implementation TeamIMU/UNDP

International Cooperation

ABC/MRE

National Direction and National Coordination

Ministry of the Environment

Executing AgencyUNDP

Organizational Structure of the Project

Project Monitoring Committee (PMC)

5. MANAGEMENT ARRANGEMENTS

The actions to be developed in the scope of this PRODOC are part of the activities developed under the Brazilian government regarding the management of ozone depleting substances existing in old refrigeration equipment.

Figure 1 presents the organizational structure of the Project.

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5.1 Implementation Arrangements

Project BRA/12/G77 will be implemented by UNDP in the direct execution modality and its implementation arrangement is based on the guidelines contained in UNDP Results Management Guide (RMG)4, its rules and procedures.

The Government of the Federative Republic of Brazil will be represented by the Brazilian Cooperation Agency – ABC/MRE and the Ministry of the Environment – MMA and will act as fol-lows:

i. ABC/MRE as the institution responsible for monitoring, at the government level, the actions resulting from this Project Document; and

ii. MMA as the institution responsible for the technical coordination of the actions reflected in the Outcomes and Resources Matrix contained in this Project Document and as specified in the Annual Work Plan approved by this coordination.

In order to ensure the smooth progress of actions related to the implementation of project activities, the institutions listed below will assume the following obligations under this PRODOC:

5.1.1 Brazilian Cooperation Agency/ABC of the Ministry of Foreign Affairs/MFA.

i. Monitor the development of the Project in its technical aspects, by analyzing the annual reports generated in the technical module (EPR – Electronic Progress Report) of the Project Monitoring Management Information System (SIGAP), visits and regular meetings with UNDP and MMA, for verification of the fulfillment of its objectives, goals and outcomes.

ii. Approve changes and adjustments in the Project Document, proposed by MMA and UNDP, when necessary.

5.1.2 Ministry of the Environment - MMA

i. Designate the technical team, which will act in coordination with UNDP for Project execution;

ii. Monitor and evaluate Project development;

iii. Develop, together with UNDP, plans of project activities (PTA/UNDP) and annual budgets, making the necessary adjustments to achieve the expected outcomes;

iv. Approve the terms of reference and technical specifications for the hiring of consultants, procurement of goods and services required for the implementation of Project activities;

v. Carry out, together with UNDP, technical evaluation of outputs and goods delivered and services provided by companies and consultants, as per technical and qualitative criteria;

vi. Participate in selection and assessment committees of companies and consultants, as necessary and in accordance with UNDP rules.

vii. Propose to ABC/MFA and UNDP modifications and adjustments necessary for the proper development of the Project;

viii. Prepare, together with UNDP, the Annual Implementation Report (Progress Report) and the Annual Work Plan, which must be submitted annually to the analysis of ABC/MFA and the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol – ExCom;

ix. Prepare, together with UNDP, the Project’s Terminal Report, which must be submitted to ABC/Ministry of Foreign Affairs and the ExCom.

4 Available at http://www.undp.org.br/atlas19

5.1.3 United Nations Development Program – UNDP.

The United Nations Development Program – UNDP will act as implementing agency responsible for executing actions as described in this Project Document. UNDP will be in charge of the following activities:

i. Coordinate and implement the Project technically and administratively, in line with activities planned and approved in the Annual Work Plan;

ii. Develop, in conjunction with MMA, plans of project activities (PTA/UNDP) and annual budgets, suggesting reallocation of resources and budget revisions as necessary;

iii. Execute and monitor the activities predicted in the Project Document as set out in the approved Annual Work Plan;

iv. Provide experts from its regular staff and/or hire consultants to monitor the daily implementation of the Project and provide operational and technical support, as per the Annual Work Plan and in accordance with activities and resources defined in the Project Document;

v. Process the administrative actions necessary for the development of this project, always observing criteria of technical quality, costs and deadlines, in accordance with the Annual Work Plan or upon request by MMA when not provided in this Plan;

vi. Manage the financial resources of the Project following its financial and accounting procedures, as per UNDP rules and regulations;

vii. Propose to ABC/MFA and MMA modifications and adjustments necessary for the proper development of the Project;

viii. Provide quarterly reports to the MMA on the financial execution of the Project; ix. Prepare, together with MMA, the Annual Implementation Report (Progress Report) and

the Annual Work Plan, which must be submitted annually to the analysis of ABC/MFA, the ExCom and other involved Parties, as well as the Final Project Report.

5.2 Project Monitoring Committee (PMC)

The Parties involved will form a Project Monitoring Committee (PMC), composed by a UNDP representative, a representative of MMA and a representative of the ABC/MFA and their respective deputies. This Committee may be extended by mutual consent of the Parties.

The Committee shall:

i. Analyze and discuss the development of Project activities and suggest changes, as necessary;

ii. Discuss and approve the Annual Work Plan;

iii. Discuss and approve the Progress Reports and the Terminal Report;

iv. Analyze results achieved; and

v. Settle disputes.

UNDP shall be responsible for convening meetings of the Project Monitoring Committee at least once a year or at the request of either Party.

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5.3 Implementation Strategy

MMA's technical team will coordinate project activities approved in the Annual Work Plan and conducted by IMU/UNDP under the Project.

In close collaboration with IMU/UNDP’s technical experts, the Coordinator of MMA’s technical team will also be responsible for identifying and developing new partnerships and articulations with other government projects/programs that support or complement Project results.

As this is a direct execution project, the execution of administrative and financial services, including Authorization of Expenses, will follow UNDP rules, regulations and procedures for this modality and will be under the responsibility of the IMU/UNDP, in conjunction with MMA’s technical team.

UNDP is also responsible for ensuring Project implementation, promoting the articulation between MMA and the private sector.

After the Annual Work Plan is approved by the Multilateral Fund, the Implementation and Monitoring Unit - IMU/UNDP will be responsible for planning and executing technical actions, for operational actions, for overseeing contracts and other administrative actions, as well as for the financial and administrative management of approved activities.

5.4 Project Audit ArrangementsThe Audit is to be conducted by an independent auditor hired by the project or by UNDP’s

Office of Evaluation, Audit and Research, as provided in UNDP rules applicable to direct execution projects. Upon receiving authorization for the direct execution of a project from its regional Bureau, UNDP Brazil’s Office is responsible for the full application of UNDP’s rules and procedures in the implementation, monitoring and evaluation of the project, and it must ensure that the costs of direct execution will be recovered under this project. The office is also to keep and make project records available in corporate databases.

It is also worth mentioning that notice of the Project and its implementation arrangements will be given to the Comptroller General's Office – Federal Control Secretariat, an agency of the Federal Government responsible for Auditing UNDP’s National Execution Cooperation Projects in the Country.

5.5 Revision mechanisms The following revisions will be signed only by the UNDP's Resident Representative in

Brazil:

(a) revisions to reflect a more realistic estimate of financial implementation for the year and to adjust the remaining resources for the coming year, which do not change the total budget amount, and

(b) mandatory annual revisions that reflect the expenses incurred during the previous year and which make no changes in the total budget, the term, or any other significant changes in the nature of the Project.

Other revisions must contain the signature of the three Parties involved in the Project Document.

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6. MONITORING AND EVALUATION

The monitoring will include regular briefs to MMA’s technical coordination. The Annual Implementation Report (Progress Report) and the Annual Work Plan will be prepared annually and submitted for review by the Secretariat of the Multilateral Fund, followed by a Tripartite Annual Meeting (TPR) between the Parties involved in the project.

The MMA will be responsible for preparing the Electronic Progress Report – EPR for the technical module of the Project Monitoring Management Information System – SIGAP, every six months, when the physical performance of the project will be measured, i.e., the achievement of planned physical targets. The report for the first semester is to be added to SIGAP in the period from July 15 to August 15, and the report for the second semester is to be added from January 15 to February 15.

The monitoring of specific indicators of the Outcome and Resource Matrix will be responsibility of IMU/UNDP, which will monitor the project's progress toward its outcomes and objectives and will guide adjustments to project activities, as necessary, during implementation, providing the basis for informed and participative decision-making. This will increase the possibility that monitoring and evaluation results will support the planning and implementation of actions in the location.

In accordance with the policies and program procedures described in UNDP’s Results Management Guide (RMG), the project will be monitored as follows:

Regular meetings between IMU/UNDP and MMA team to monitor progress and intervene quickly when needed.

Every semester, a quality assessment shall record the progress made towards the achievement of key outcomes, based on quality criteria and methods defined under Quality Management (below) and in the ATLAS system.

A Project Issues Log is to be activated in Atlas and updated by the Project Manager at UNDP to facilitate tracking and solution of potential problems, as well as attending to requests for adjustments.

Based on the initially submitted Risk Analysis, a Risk Log is to be activated in Atlas and regularly updated after review of elements in the external environment that may affect project implementation.

Based on the information logged in Atlas, as described above, a Semi-annual Progress Report is to be prepared by the Project Manager, through the Project Quality Control, using the standard report available in the "Executive Snapshot" (Atlas).

A Lessons Learned Log is to be activated in Atlas and regularly updated to ensure learning and constant adaptation within the organization, and to facilitate the preparation of the Lessons Learned Report at the end of the Project.

A monitoring plan is to be activated in Atlas and regularly updated to track key management actions and events.

A mid-term independent external evaluation will be conducted to measure progress toward project objectives and identify strengths and weaknesses in order to reinforce the aspects that work well and make any necessary adjustments.

There will also be a terminal evaluation to assess, among other issues, whether the objectives were achieved, the sustainability of the outcomes and to identify lessons learned.

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7. QUALITY MANAGEMENT FOR PROJECT ACTIVITIES

Outcome 1: National inventory of CFC-based liquid chillers accomplished.Activity 1(Atlas ID:)

National inventory of CFC- and HCFC-based liquid chillers

Beginning date: 2012Ending Date: 2013

Purpose Diagnosis of the amount of CFC- and HCFC-based liquid chillers in operation in Brazil.

Description Data Verification, Identification of Companies, Data Log, On-site Verification, Systematization

Quality Criteria Quality Method Date of Evaluation

Monitoring Monitoring and coordination of the identification of CFC- and HCFC-based chillers in operation.

Year 1

Outcome 2: Technical and information material for promotion and dissemination of results achieved from the replacement of CFC- and HCFC-based liquid chillers elaborated and distributed.(Atlas ID:) Preparation of technical material Beginning Date: 2012

Ending Date: 2014Purpose Elaboration of technical and information material to increase interest in the

replacement or conversion of the refrigerant of CFC- and HCFC-based liquid chillers, which are energy inefficient, geared to capacity-building for specialized professionals (draftsmen, engineers, building maintainers, ESCOs, etc.), owners and businessmen, assessing economic and environmental benefits from the perspective of Energy Efficiency (EE). The material aims to raise awareness among the main actors involved, showing the EE potential that may be obtained from the replacement of CFC- and HCFC-based liquid chillers.

Description Survey of information; systematization; preparation of the material; printing and distribution; provision of technical material.


Monitoring Technical and information material produced geared to capacity building and awareness raising among professionals and owners of CFC- and HCFC-based liquid chillers.

Years 1 and 2

Outcome 3: Workshops, capacity building and training for specialized professionals and owners interested in the replacement of CFC- and HCFC-based liquid chillers

(Atlas ID:) Workshops, capacity building, and training Beginning Date: 2012Ending Date: 2014

Purpose Carry out workshops, capacity-building and training events for specialized professionals (draftsmen, engineers, building maintainers and operators, ESCOs, etc.), owners, businessmen, and ESCOs, aiming at the replacement or conversion of the refrigerant of CFC- and HCFC-based chillers, which are energy inefficient, using the material developed in Outcome 2. The main focus is to disseminate and raise awareness among the target audience on economic and environmental benefits and demonstrate the EE potential offered by the

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replacement of CFC- and HCFC-based chillers.Description Selection of municipalities for the organization of Workshops and Seminar;

Organization of workshops and seminar; Preparation of capacity building and training and issuing of certificates of participation.


Monitoring Number of capacity-building and training events carried out.

Years 1 and 2

Outcome 4: Case studies to demonstrate the EE potential and economic and environmental benefits obtained from the replacement of CFC-based liquid chillers in public buildings (Atlas ID:) Case study on EE Beginning Date: 2012

Ending Date: 2013Purpose Case studies to demonstrate the EE obtained from the replacement of CFC-

based liquid chillers in public buildings under the National CFC Phase-Out Plan.

Description Verification of replacement activity; Analysis of energy consumption; Analysis of the cost structure and life cycle of refrigerant and equipment; Evaluation of environmental impact and report preparation.


Monitoring Preparation of a report demonstrating the economic and environmental benefits obtained from the replacement of liquid chillers in public buildings.

Year 1

Outcome 5: Technical assistance for the elaboration of CFC- and HCFC-based liquid chiller replacement projects aiming to increase EE (Atlas ID:) Technical Assistance Beginning Date: 2012

Ending Date: 2015Purpose Elaborate projects for the replacement or conversion of the refrigerant of

CFC- and HCFC-based liquid coolers, geared to interested public or private entities, with assessment of EE, installed equipment, building, and costs.

Description Specialized technical assistance for the elaboration of CFC- and HCFC-based liquid chiller replacement/conversion projects.


Monitoring Projects for refrigerant replacement/conversion prepared.

Years 1, 2 and 3

8. LEGAL FRAMEWORK

UNDP has its operations in Brazil regulated by the Basic Agreement for Technical Assistance (in Portuguese, Acordo Básico de Assistência Técnica, ABAT), which provides the basis for technical cooperation by the United Nations in Brazil. The ABAT was signed on December 29, 1964 between the Government of the Federative Republic of Brazil, the United Nations and its Specialized Agencies, approved by Legislative Decree no. 11, of 1966 and promulgated by Decree no. 59.308 of September 23, 1966.

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UNDP's action in Brazil is also governed by the Convention on the Privileges and Immunities of the United Nations, adopted by the UN General Assembly on February 13, 1946, approved by Legislative Decree no. 4, of February 13, 1948, ratified without reserves by the Government of the Federative Republic of Brazil on December 15, 1949 and promulgated by Decree no. 27.784, of February 16, 1950. This multilateral convention provides for privileges and immunities granted to UN offices in their respective countries.

9. COST RECOVERY SYSTEM

In accordance with the decisions and guidelines of UNDP’s Executive Board incorporated into the Policy for Cost Recovery on Other Resources, the contribution of the Multilateral Fund for the Implementation of the Montreal Protocol will be subject to cost recovery by UNDP as follows:

i) Direct Costs incurred for provision of Implementation Support Services (ISS) by UNDP. These costs must be clearly related to specific activities and transactional services that are clearly identifiable, charged according to current standard service fees. These costs will be included in the budget of the activities, in the budget lines corresponding to the services provided.

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ANNEXES

Annex I – Special clauses. The UNDP administration fee was defined at the time of project approval, as set out in the

Final Report of the 47th Meeting of the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol.

The amount of funds to be disbursed, if realized in a currency other than U.S. Dollars will be determined by applying the United Nations exchange rate prevailing on the day of deposit. If there are any changes in that rate before the use of the total amount by UNDP, the balance of existing funds at the time will be adjusted accordingly. If in such a situation loss of resources is incurred, UNDP shall inform the Government in order to determine whether additional financing will be provided by the Government. If additional financing is not possible, the assistance to be provided to the project may be reduced, suspended or terminated by UNDP.

UNDP shall receive and manage these resources in accordance with its regulations, rules and guidelines.

All accounts and financial statements must be in U.S. Dollars.

Ownership of equipment, supplies and other belongings financed by this contribution will be property of UNDP. Matters relating to the transfer of ownership by UNDP shall be determined in accordance with the policies and procedures of UNDP.

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Project Document - Deliverable · Web viewThe Montreal Protocol on Substances that Deplete the...

Documents

Transcript of Project Document - Deliverable · Web viewThe Montreal Protocol on Substances that Deplete the...