(Supporting document: UNEP/OzL.Pro/ExCom/35/53 and 35/53/Add.1).Agreement for the terminal CFC phase-out management plan for Trinidad and Tobago

1.   The Executive Committee approves a total of US $460,000 in funding for the phased reduction and complete phase-out in the consumption of Annex A Group I substances used in Trinidad and Tobago. This is the total funding that would be available to the Government of Trinidad and Tobago from the Multilateral Fund for the total elimination of CFCs in Trinidad and Tobago. The agreed level of funding would be paid in two installments, each covering specific objectives spelled out in Action Programmes, in the exact amount of US dollars specified below, and on the basis of the understanding set out in this Agreement.

2.   By this Agreement, Trinidad and Tobago commits that in exchange for the funding level specified below, it will eliminate its total CFC consumption in accordance with the annual consumption limits indicated below in the installation and servicing of refrigeration and air conditioning equipment.

Table 1 - Targets and schedule and budget for implementing the action programmes

(*) Excluding 7.5 per cent agency support costs

3.   At its 40th Meeting, the Executive Committee approved funding of US $220,000 plus agency support costs for activities to be carried out during the period 1 December 2003 – 30 June 2006. The Executive Committee also agrees, in principle, that funds will be provided at the 49th Meeting of the Executive Committee in mid-2006, for a two and a half year period, in accordance with the above table, for the exact amount listed and on the basis of submission of an action programme, subject to the performance requirements contained in this Agreement.

4.   The payment in 2006 noted in Table 1 will be released based on confirmation that the first reduction target has been met and that the activities specified in the action programme for 2003-2006 contained in the project document have been substantially completed.

5.   The Government of Trinidad and Tobago agrees to ensure accurate monitoring of the phase-out programme. The Government of Trinidad and Tobago will provide regular reports, as required by its obligations under the Montreal Protocol and this Agreement. Consumption figures provided under this Agreement will be consistent with Trinidad and Tobago’s reports to the Ozone Secretariat under Article 7 of the Montreal Protocol.

6.   The Government of Trinidad and Tobago also agrees to allow independent verification audits as provided for in this Agreement, and in addition, external evaluation as may be directed by the Executive Committee, to verify that annual CFC consumption levels correspond to those agreed in Table 1, and that implementation of the TPMP is proceeding as scheduled and agreed in the first and second action programmes.

7.   The Trinidad and Tobago Terminal CFC Phase-out Management Plan, which supports this Agreement, the Trinidad and Tobago Country Programme and other related documentation, may include estimates of specific funds that were thought to be needed for specific items. Notwithstanding this, the Executive Committee wishes to provide Trinidad and Tobago with maximum flexibility in using the agreed funds to meet the consumption limits agreed in Table 1. It is the Executive Committee’s understanding that during implementation, as long as it is consistent with this Agreement, the funds provided to Trinidad and Tobago pursuant to this Agreement may be used in any manner that Trinidad and Tobago believes will achieve the smoothest possible CFC refrigeration sector phase-out, consistent with operational procedures as agreed between the Government of Trinidad and Tobago and UNDP in the Terminal Phase-out Management Plan, as indicated in the first and second action programmes.

8.   The Government of Trinidad and Tobago agrees that the funds being agreed in principle by the Executive Committee at its 40th Meeting for the complete phase-out of Annex A Group I substances represent the total funds that will be available to Trinidad and Tobago to enable its full compliance with the reduction and phase-out as agreed with the Executive Committee of the Multilateral Fund, and that no additional Multilateral Fund resources will be forthcoming for any related activities. It is also understood that apart from the agency fee referred to in paragraph 10 below, the Government of Trinidad and Tobago, the Multilateral Fund, and its Implementing Agencies, and bilateral donors will neither request nor provide further Multilateral Fund-related funding for the accomplishment of the total phase-out of CFC in the refrigeration sector.

9.   The Government of Trinidad and Tobago agrees that if the Executive Committee meets its obligations under this Agreement, but the Government of Trinidad and Tobago does not meet the reduction requirements outlined in paragraph 2 and other requirements outlined in this document, the implementing agency and the Multilateral Fund will withhold funding for the subsequent tranche of funding outlined in paragraph 2 until such time as the required reduction has been met. It is clearly understood that the fulfillment of this Agreement depends on the satisfactory performance of its obligations by both the Government of Trinidad and Tobago and the Executive Committee.

10.  UNDP has agreed to be the implementing agency for the implementation of this Sector Plan, which will be completed in 2008. A fee of a total of 7.5 per cent of the annual funds has been agreed in accordance with the provisions of this Agreement and distributed as shown in Table 1. As the implementing agency, UNDP will be responsible for the following:

      (a)  ensuring performance and financial verification in accordance with specific UNDP procedures and requirements as specified in the Trinidad and Tobago Terminal CFC Phase-out Management Plan;

      (b)  reporting annually on the implementation of the two action programmes;

      (c)  providing verification to the Executive Committee that the control targets listed in Table 1 and the associated activities have been met;

      (d)  ensuring that technical reviews by UNDP are undertaken by appropriate independent technical experts;

      (e)  assisting Trinidad and Tobago in preparation of the second action programme, which will incorporate achievements in the first action programme;

      (f)  carrying out required supervision missions;

      (g)  ensuring the presence of an operating mechanism to enable effective, transparent implementation of the programme and accurate data reporting;

      (h)  verification for the Executive Committee that CFC consumption for the refrigeration sector has been completed based on the schedule listed in Table 1;

      (i)   ensuring that disbursements are made to Trinidad and Tobago based on agreed performance targets in the project and provisions in this Agreement; and

      (j)   providing policy development assistance when required.

11.  The funding components of this Decision shall not be modified on the basis of future Executive Committee decisions that may affect the funding of any other consumption sector projects or any other related activities in the country.

(UNEP/OzL.Pro/ExCom/40/50, Decision 40/55, para. 109).

(Supporting document: UNEP/OzL.Pro/ExCom/40/44).