Assistance for investment projects shall generally be provided in the form of grants. However, where the investment project has a short payback period (e.g., one to two years), financing may take the form of highly concessional loans. If an Implementing Agency believes that a highly concessional loan is appropriate for a particular project, it shall recommend this action at the next meeting of the Executive Committee. The Committee shall make the final decision on the terms of assistance.
(UNEP/OzL.Pro/ExCom/3/18/Rev.1 Annex III (sections V.1, V.2, V.3).