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Contingency costs

The Executive Committee decided to adopt the following recommendations related to the use of contingency costs in project proposals:

(a)  Implementing Agencies should not apply physical contingency charges against known costs for project components (e.g., licenses, certain pieces of equipment, training costs, equipment and services already purchased, etc.); and,

(b)  Implementing Agencies should minimize contingency costs as experience was gained with standard equipment, technology and other project costs and in-field implementation and procurement.

(UNEP/OzL.Pro/ExCom/12/37, para. 156).

(Supporting document: UNEP/OzL.Pro/ExCom/12/32).

The Twenty-third Meeting of the Executive Committee decided to request the Implementing Agencies to provide more detail on contingency proposals.

(UNEP/OzL.Pro/ExCom/23/68, Decision 23/40, para. 68).

The Thirty-third Meeting of the Executive Committee decided to urge all Implementing Agencies to ensure the appropriate use, or refund, of unused contingency funds, and to keep funding requests for equipment and trials to levels essential to ensuring the conversion. In cases of serious funding irregularities, such as when project funds were used to purchase non-eligible items, the Implementing Agency concerned might be requested by the Executive Committee to return funding to the Multilateral Fund.

(UNEP/OzL.Pro/ExCom/33/32, Decision 33/2, para. 18(f)).


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