The Thirty-fourth Meeting of the Executive Committee decided:
(a) to take note of the findings and lessons learned contained in the evaluation report;
(b) to request the Government of China to assess the additional needs for non-CFC domestic and commercial refrigeration compressors over and above the capacities already converted which were partly under-utilized. The assessment should take into account the existing commercial refrigeration sector strategy, the pace of conversion of the refrigeration industry, existing and future demand for CFC-based compressors for servicing purposes, as well as the financial viability of the potential beneficiary enterprises;
(c) to consider future proposals in this sector in the light of this assessment and, in particular, before approving further projects in China in the commercial refrigeration compressor sector, to consider whether China had:
(i) included firm, time-specific commitments by the Government to reduce production and ban the import of CFC-based compressors, and put in place specific policy measures to ensure that the project would yield reductions, taking into account the target formulated in the industrial and commercial refrigeration sector strategy to cease the production of CFC-based refrigeration systems by 1 January 2004;
(ii) considered the evaluation’s findings that more sustainable conversion, at lower cost, might be achieved by encouraging commercial refrigeration compressor producers to combine their ongoing development efforts, relying on internationally available information and the local network of universities and institutes, with the resources of a consultant to undertake the technological upgrade of locally-designed non-CFC compressors;
(d) to request the State Environmental Protection Administration to examine, in co-operation with the World Bank, the possibilities for relocating idle or under-utilized machining centres in commercial refrigeration compressor projects, paying particular attention to project CPR/REF/15/INV/107, to compressor companies with better prospects for achieving a satisfactory rate of capacity utilization and cost-effectiveness;
(e) also to request the Implementing Agencies:
(i) when preparing future projects in the refrigeration compressor sectors, to ensure that baseline production figures reflected actual current production, not technical capacity, and that planned production figures took into account potential market constraints on future sales prospects;
(ii) to use as a basis for identifying a project’s requirement for expensive equipment the principle that the more expensive the equipment was, the more the running time of the machinery must be prolonged, and the calculation base for using such equipment should be 5-6 working days per week in 2-3 shifts per day;
(iii) to ensure that all future projects submitted to the Executive Committee for the commercial refrigeration compressor subsector were accompanied by a letter from the recipient enterprise guaranteeing local funding capability and the support of local relevant authorities;
(iv) to monitor continuously the conversion process of ongoing compressor projects and inform the Secretariat and the Executive Committee of any significant deviations in their progress reports;
(v) to revise their project completion reports (PCRs) and to resubmit them in cases where the evaluation found discrepancies between the PCR and project reality;
(vi) to take into consideration the findings and lessons learned presented in the evaluation report when preparing future proposals for compressor projects.
(UNEP/OzL.Pro/ExCom/34/58, Decision 34/13, para. 31(a to e)).
(Supporting document: UNEP/OzL.Pro/ExCom/34/17).