HPMP PREPARATION

EXCOM POLICY AND ELIGIBILITY ISSUESAND

INFORMATION REQUIREMENTS

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INFORMATION REQUIREMENTS

Consistent with HPMP Guidelines (ExCom Decision 54/39 and Document UNEP/OzL.Pro/ExCom/54/59, Annex-XIX)

Accurate data needed at enterprise-level:

- Date of establishment of HCFC-based capacity- Baseline equipment details- Product details including production volumes- HCFC consumption details - Previous MLF assistance- Exports to non-A5 countries - Non-A5 ownership- Alternative technology selected

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INFORMATION REQUIREMENTS (CONT’D)

Detailed project rationale, description and justification for the proposed conversion (why it is necessary for meeting the country’s compliance targets for 2013 and 2015)

Detailed calculation of incremental capital and operating costs and justification for each line item

Determining eligible costs and funding based on ExCom guidelines

For large countries, the above work needs at least one month after all the accurate baseline data is available.

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ELIGIBILITY

Only capacity established prior to 21 September 2007 is eligible for funding

Enterprise should be in operation for at least three preceding years

Funding is available only for costs in proportion to the A5 ownership.

Funding deducted for exports to non-A5 countries proportionately

Funding is for agreed, eligible and incremental costs, not for all costs

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ELIGIBILITY (CONT’D)

“Incremental Costs” means costs directly related to phase-out of HCFCs

Enterprise must undertake to bear costs over and above the agreed funding

Total funding is limited by cost-effectiveness thresholds:

o Rigid Foams – up to US$ 7.83/kg-ODSo Integral Skin Foams – up to US$ 16.86/kg-ODSo Refrigeration – up to US$ 15.21/kg-ODSo Air Conditioning – N/A

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ELIGIBILITY (CONT’D)

Incremental operating costs (recurring costs of products before and after conversion), are limited to:

o PU Foams – up to US$ 1.60/kg-ODSo Refrigeration – up to US$ 6.30/kg-ODSo Air Conditioning – up to US$ 6.30/kg-ODS

Cost-effectiveness thresholds for overall funding can be increased by 25% if climate-friendly (low-GWP) options are chosen

Funding is provided for permanent HCFC phase-out/reductions (HCFC phase-out has to be permanent at enterprise level – cannot come back again!)

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THANK YOU!

Comments, suggestions and questions welcome

http://www.undp.org/chemicals/montrealprotocol.htm

suely.carvalho@undp.orgnandan.chirmulay@undp.org