The Fund should not finance phase-out activities relating to enterprises that were wholly owned subsidiaries of transnational corporations or enterprises permitted to operate in "free zones" and whose output was for export only. Partial funding should be considered on a case-by-case basis to finance the local share ownership of any given enterprise partly owned by a transnational corporation. In such a case, funding could be provided as a percentage of project incremental costs proportionate to the local share ownership of the enterprise with the transnational corporation responsible for the rest. Subject to the approval of the Executive Committee, the same criteria should apply to bilateral assistance for activities involving subsidiaries of transnational corporations.
(UNEP/OzL.Pro/ExCom/7/30, para. 88).
(Supporting document: UNEP/OzL.Pro/ExCom/7/30 Annex VI).
The Twentieth Meeting of the Executive Committee decided that:
(a) the decision taken by the Executive Committee at its Seventh Meeting (UNEP/OzL.Pro/ExCom/7/30, paragraph 88) should not apply to corporations owned by enterprises in countries that had always operated under Article 5;
(b) projects involving transnationals owned by enterprises in countries that had been reclassified as Article 5 countries should be considered on a case-by-case basis, taking into account paragraph (e) of decision VI/5 adopted by the Sixth Meeting of the Parties.
(UNEP/OzL.Pro/ExCom/20/72, Decision 20/5, para. 16).