The Thirty-eighth Meeting of the Executive Committee decided:

(a) to approve in principle a total of US $7,360,530 in funding for the phased reduction of the remaining national aggregate CFC consumption through the implementation of the Sector Phase-out Plan for CFCs in the Domestic Refrigeration (Manufacturing) Sector in China;

(b) to approve, at the 38th Meeting, funding in the amount of US $1,788,991 plus support cost of US $161,009 to be offset against the bilateral contribution of Italy for 2000-2002, and US $3,400,000 plus support cost of US $299,200 for UNIDO, subject to the following conditions:

(ii) the Executive Committee will endeavour to provide the second tranche of US $2,171,539 plus agency support cost of US $192,239 to UNIDO at the last meeting of the Executive Committee in 2003;

(iii) the Government of China agrees that no additional Multilateral Fund resources would be requested for activities in the Domestic Refrigeration (Manufacturing) Sector. The Executive Committee agreed to provide China with flexibility in using the agreed funds consistent with operational procedures as agreed between China and UNIDO in the Domestic Refrigeration (Manufacturing) Sector Phase-out Plan;

(iv) the Government of China agrees to ensure accurate monitoring of the phase-out and provide regular reports, as required by its obligations under the Montreal Protocol, by 30 September each year;

(v) as the lead implementing agency, UNIDO will be responsible for: