The Twenty-fifth Meeting of the Executive Committee decided that the following modalities should be adopted on a trial basis:
(a) where the number of enterprises is large (over 50) and the quality of information is not high, umbrella projects are not an appropriate methodology.
(b) if a country wishes to approach the sectoral phase-out in a single step, a sectoral strategy could be implemented based on a performance agreement with the government concerned.
(c) where a country does not wish to implement a sectoral strategy, enterprises could be grouped in a series of separate umbrella projects. The final project could then be submitted as a terminal umbrella project.
(d) where there are significant numbers of small or informal enterprises remaining, the final project should be developed using the following new approach designed to address the remaining small enterprises:
(i) proposals should include: (a) institutional support through government policy directives or legislation; a timed action plan and expected results in terms of ODS phase-out; coordination and management by ozone offices and/or financial intermediaries; technology transfer, monitoring and supervision from industry associations and/or component suppliers and systems houses; and (b) the appropriate choice of technology, innovative methodologies for achieving technology transfer; achievement of economies of scale through geographical groupings or industrial rationalization; financial arrangements which could provide flexibility in the allocation of approved resources.
(ii) the requirements for capital equipment should be determined by establishing the typical equipment needed for an enterprise representative of those remaining in the sector (equipment requirements will be modest and will generally be similar), and the estimated number of enterprises involved, taking into account the possibility of industrial rationalization.
(iii) the technology transfer, trials and support activities will be costed on the basis of the activities being provided by local technical resources at local rates (where established as essential, with provision of international support on start-up to train the trainers, and on completion to verify phase-out).
(iv) incremental operating costs or savings will not be included in project costs.
(v) funding could include agreed support for some of the government activities outlined in (i) above.
(UNEP/OzL.Pro/ExCom/25/68, Decision 25/50, para. 87).
(Supporting document: UNEP/OzL.Pro/ExCom/25/57).