The Executive Committee decided at its Fourteenth Meeting to instruct the Consultant to make the following changes:
(a) to explain how the model simulates the initiation of projects;
(b) to prepare an additional table for the 98 model projects showing figures for ODS use, capital costs, operating costs, duration of operating costs and Unit Abatement Costs. Copies of model projects will be provided to Executive Committee members upon request;
(c) to clarify Exhibit 4-5 showing the amount of consumption projected for countries without country programmes;
(d) to include an additional column in the tables to reflect actual costs defined in all aspects as identical to the real resource costs with one exception, namely, that rising ODS prices shall be assumed, and to include explanatory text on how prices were forecast;
(e) to incorporate the key information given by the Consultant to the meeting in the next version of the report;
(f) to insert an amount of US$ 700 million corresponding to the mid-point in the range given for production phase-out costs in the column of Fund costs; the sum to be included pro rata over the number of years remaining until the target phase-out date;
(g) to make the best possible effort to determine the fraction of ODS consumption in developing countries that is used for export to countries not operating under Article 5 and to calculate the reduction in real resource costs and the actual costs as defined by the Sub-Committee as a result of these exports;
(h) to develop explanatory material on chlorine loading factors in the Consultant's report and the Executive Summary;
(i) to amplify paragraphs 202, 207 and 236 of the Consultant's report;
(j) to summarize all major policy assumptions in one section of the Consultant's report and clarify that the assumptions contained therein should not prejudice any future policy decisions of the Executive Committee;
(k) to provide a table of operating costs and capital costs by sector;
(l) to provide explanatory text on technology forecasting as presented in Exhibit F.
(m) to include in the Executive Summary and the body of the report:
(i) reference to the difficulty in forecasting rising prices of ODS, and
(ii) the substantial sensitivity of projected costs to variations in ODS prices.
(n) provide details of assumptions used to determine the operating life of each type of refrigeration and air-conditioning equipment used in the Consultant's models.
(UNEP/OzL.Pro/ExCom/14/15 (Annex II).
The Executive Committee, at its Fifteenth Meeting, approved the Sub-Committee's recommendation that the following clarifications should be included in the final report:
(a) the last sentence of paragraph 150 should be clarified to indicate that phase-out would proceed at the same rate as in non-Article 5 countries;
(b) at the beginning of the Executive Summary and Chapter 6, it should be emphasized that:
(i) unless otherwise noted, a 10 per cent discount rate had been used; and
(ii) price forecasts used in the study represented the best available data.
(c) the Executive Summary and the Report should be expanded to specify that assumptions about the policies of the Executive Committee made for the purposes of the study did not prejudice any future decisions of the Committee.
(d) a complete list of all policy assumptions used to generate the quantitative results presented in Chapter 6 should be annexed to the Executive Summary. This list should include assumptions about the role of banking and essential use exemptions in the construction of the ODS emissions forecasts for non-Article 5 countries and the discounting of production phase-out costs.
(e) the basis of the estimate for production phase-out costs presented in paragraph 39 of the report should be explained.
(f) the report should emphasize that the quantitative results generated by the study did not reflect the amount of funds committed to the Fund to date nor the amounts approved by the Executive Committee and their resulting ODS reductions.
(g) the presentation in ES-9 should be clarified to specify the year of the peak concentrations and the year in which the concentration returned to 2 ppb.
(h) the study should indicate that the feasibility of each phase-out scenario was contingent upon the indicated level of resources from the Multilateral Fund being available and a statement should be included regarding the historic level of contributions received.
(i) the terms of reference should be annexed to the report and the document numbers of the Sub-Committee reports referred to in the body of the report of the consultant should be included.
(j) technology transfer resulting from bilateral contributions should be mentioned in the report.
(k) the language in paragraph 146 should be amended to indicate that "typical" rather than "average" values had been used in the construction of model project cost estimates.
(l) the report should clarify that ODS-use growth rates used in the model analysis were applicable to target-driven segments and not to accelerated segments.
(m) section 3.4.3.5 should clarify that technology penetration included the amount of time to needed to implement the project on the shop floor.