The Twenty-first Meeting of the Executive Committee, having considered the recommendations of the Sub-Committee on Project Review on the basis to be used to calculate production and consumption of an enterprise when conversion was presented and funded in two phases, and for the determination of the level of grant when an enterprise opted to collect incremental operating costs after the project had been implemented, decided:
(a) for projects in the domestic refrigeration sector for which incremental operating costs were to be sought after the project had been implemented, the production level to be used for the calculation of incremental operating costs is the level prior to preparation of the project as specified in the approved project proposal;
(b) for multi-phase projects that involve a development phase and a separate phase to convert production facilities, the production level to be used for the calculation of incremental operating costs is that of the second phase, in which the production facilities are converted. ODS consumption should be calculated in accordance with the decision taken by the Executive Committee at its Sixteenth Meeting (UNEP/OzL.Pro/ExCom/16/20, para. 32 (b)) to use consumption in the year, or the average of the three years, immediately preceding preparation of the second-phase conversion project;
(c) for any other multi-phase project, the production levels, ODS consumption and operating costs should be calculated separately for each phase, in accordance with the requirements of the decision of the Sixteenth Meeting referred to in subparagraph (b) above, provided that the overall level of funding for the enterprise does not exceed the maximum level available under the threshold funding cap calculated using the ODS consumption presented in the first phase of the project;
(d) noting the presumption in decision 19/9 adopted by the Executive Committee at its Nineteenth Meeting against the submission of multi-phase projects, proposals for any future multi-phase projects should include full justification for use of this modality;
(e) production capacity should be considered in a manner consistent with decision 17/7 adopted by the Executive Committee at its Seventeenth Meeting. Thus, production capacity installed after 25 July 1995 should not be taken into consideration when determining the production level, the ODS phase-out, or the operating cost in any multi-phase project.
(UNEP/OzL.Pro/ExCom/21/36, Decision 21/6, para. 14).