The Third Meeting of the Executive Committee adopted the following project eligibility criteria on the basis of Decision II/8 and Annex I of the Second Meeting of the Parties:
(a) all projects must receive approval of the requesting Party's government;
(b) financial assistance for capital investment projects shall be available for categories of agreed incremental costs; assistance for other categories of agreed incremental costs associated with capital investment projects requires approval of the Executive Committee;
(c) projects other than capital investment projects shall also qualify for assistance under the Fund (e.g. technical assistance and clearing house functions); and
(d) financial and technical assistance shall be available for projects that are cost-effective and based on environmentally sound alternative technologies or substitutes to the substances restricted by the Protocol, taking into account the industrial strategy of the recipient Party.
(UNEP/OzL.Pro/ExCom/3/18/Rev.1 Annex III (section III).
Project proposals where the agreed incremental costs exceed US $500,000 shall be considered and approved by the Executive Committee. Project proposals where the agreed incremental costs are less than US $500,000 shall be approved by the Implementing Agencies within the context of an approved work programme and after confirmation by the Fund Secretariat on the availability of funds and contributions in-kind.
(UNEP/OzL.Pro/ExCom/3/18/Rev.1 Annex III (sections II.3.1, II.3.2).
(UNEP/OzL.Pro/ExCom/4/3/Rev.2, para. 59).