Contribution modalities

The Multilateral Fund shall be financed by contributions from Parties not operating under paragraph 1 of Article 5 in convertible currency or, in certain circumstances, in-kind and/or in national currency, on the basis of the United Nations scale of assessments.

(UNEP/OzL.Pro/2/3 Decision II/8, para. 7).

The Sixth Meeting of the Parties decided, regarding developing-country Parties which are initially classified as not operating under Article 5 and then reclassified, that any outstanding contribution to the Multilateral Fund will be disregarded only for the years in which they are reclassified as operating under Article 5. Any Party reclassified as operating under Article 5 will be allowed to utilize the remainder of the 10-year grace period.

(UNEP/OzL.Pro/6/7 Decision VI/5, para. d).

Contributions from States that become Parties not operating under paragraph 1 of Article 5 after the beginning of the financial period of the Mechanism shall be calculated on a pro rata basis for the balance of the financial period.

(UNEP/OzL.Pro/2/3 Appendix IV of Decision II/8, para. 10).

Any developing-country Party initially classified as non-Article 5 but reclassified subsequently as operating under Article 5 shall not be requested to contribute to the Multilateral Fund. Such Parties are urged not to request financial assistance for national programmes from the Multilateral Fund but may seek other assistance under Article 10 of the Montreal Protocol. This will not apply if the initial classification of the Party as non-Article 5, made in the absence of complete data, is subsequently proved to be wrong on the basis of complete data.

(UNEP/OzL.Pro/6/7 Decision VI/5, para. e).

The Eighth Meeting of the Parties decided that, with effect from 1997, contributions to the Multilateral Fund concern only Parties not operating under Article 5 that are Parties to the London Amendment to the Montreal Protocol.

(UNEP/OzL.Pro.8/12, Decision VIII/6).

No commitments shall be made in advance of the receipt of contributions, but income not spent in a budget year and unimplemented activities may be carried forward from one year to the next within the financial period.

(UNEP/OzL.Pro/2/3 Appendix IV of Decision II/8, para. 19).

Contributions not immediately required for the purposes of the Multilateral Fund shall be invested under the authority of the Executive Committee and any interest so earned shall be credited to the Multilateral Fund.

(UNEP/OzL.Pro/2/3 Appendix IV of Decision II/8, para. 11).

Budget estimates, setting out the income and expenditure of the Multilateral Fund shall be drawn up by the Executive Committee and submitted to the meetings of the Parties. The proposed budget estimates shall be dispatched by the Fund Secretariat to all Parties at least 60 days before the date fixed for the opening of the meeting of the Parties at which they are to be considered.

(UNEP/OzL.Pro/2/3 Appendix IV of Decision II/8, para. 12, 13).

In the event that the Chief Officer of the Fund Secretariat anticipates that there may be a shortfall in resources over the financial period as a whole, he shall have discretion to The Thirtieth Meeting of the Executive Committee decided to urge those Parties that had not yet done so to pay their outstanding contributions to the Fund.

(UNEP/OzL.Pro/ExCom/30/41, Decision 30/5, para. 20(b)).

The Thirty-first Meeting of the Executive Committee decided to urge those Parties that had not yet done so to pay their outstanding contributions to the Fund.

(UNEP/OzL.Pro/ExCom/31/61, Decision 31/1, para. 15(b)).

The Thirty-fifth Meeting of the Executive Committee decided to urge those Parties that had not yet done so to pay their outstanding contributions to the Fund.

(UNEP/OzL.Pro/ExCom/35/67, Decision 35/1, para. 24(b)).

The Thirty-seventh Meeting of the Executive Committee decided:

(b)  to note that the current year’s rate of payment of contributions appeared slightly slower than the previous year;

(c)  to express gratitude to Parties that had made their contributions on time.

(UNEP/OzL.Pro/ExCom/37/71, Decision 37/2, para. 27 (b), (c)).

The Fortieth Meeting of the Executive Committee decided:

(c)  to urge those Parties that had not yet done so to make their contributions in a timely manner;

(d)  to request the Treasurer:

      (i)   to remind Parties of the need for early payment of their contributions;

      (ii)  to include footnotes in the report to indicate the provisional nature of the unreconciled financial accounts; and

(iii) to report on how the financial accounts were to be reconciled as well as on how this reconciliation might be effected as early in the year as possible.

(UNEP/OzL.Pro/ExCom/40/50, Decision 40/2, para. 25 (c, d)).

The Forty-first Meeting of the Executive Committee decided:

(c)  to note the reduction in the amount of losses from use of the fixed exchange rate mechanism and from the process for encashing promissory notes;

(d)  to request contributing Parties to cooperate with the Treasurer to facilitate the timely encashment of promissory notes;

(e)  to note that the cooperation of Parties’ financial authorities in sending written notification of payment to the Treasurer would be greatly appreciated;

(f)  to urge those Parties that had not yet done so to make their contributions in a timely manner;

(g)  to note with appreciation the contribution of Azerbaijan and encourage other Parties to follow the example it had set;

(h)  to urge Parties with contributions that were long overdue to comply with paragraph 7 of Decision XI/7 of the Eleventh Meeting of the Parties.

(UNEP/OzL.Pro/ExCom/41/87, Decision 41/2, para. 30 (c to h)).

The Forty-second Meeting of the Executive Committee decided:

(d)  to note with appreciation the updated information on the status of payments provided by number of countries during the Meeting;

(e)  to urge those Parties that had not yet done so to make their contributions in a timely manner; and

(f)  to urge Parties with contributions that were long overdue to comply with paragraph 7 of Decision XI/7 of the Eleventh Meeting of the Parties.

(UNEP/OzL.Pro/ExCom/42/54, Decision 42/2 (d, e, f), para. 28 (d-f)).

The Forty-third Meeting of the Executive Committee decided:

(a)  to urge those Parties that had not yet done so to make their contributions in a timely manner; and

(d)  to urge Parties to make contributions by 1 June each year, and, if that was not possible, to notify the Treasurer in accordance with paragraph 7 of decision XI/6 of the Eleventh Meeting of the Parties.

(UNEP/OzL.Pro/ExCom/43/61, Decision 43/1 (c, d), para. 25).

The Sixteenth Meeting of the Parties decided to urge those Parties to pay their outstanding contributions to the Multilateral Fund as soon as possible, in view of the current compliance needs of Parties operating under Article 5 of the Montreal Protocol.

(UNEP/OzL.Pro.16/17, Decision XVI/37).

The Forty-fourth Meeting of the Executive Committee decided:

(a)  to note:

      (i)   with appreciation the report of the Treasurer, including the tables showing the updated status of the Fund as at 29 November 2004;

      (ii)  the information provided by the Secretariat concerning the contributions from the Russian Federation and accordingly to request the Secretariat to communicate with the Government of the Russian Federation on the issue of their contributions; and

(b)  to provide copies of the decision of the most recent Meeting of the Parties relating to outstanding contributions to those Parties that had never paid their contributions to the Multilateral Fund or had done so at an amount inferior to one annual contribution.

(UNEP/OzL.Pro/ExCom/44/73, Decision 44/1, para. 30).

The Forty-fifth Meeting of the Executive Committee noted that the Treasurer had sent numerous letters urging donor countries that had not paid their contributions up to and including 2004 to the Multilateral Fund to do so and that no reply had been received from those countries regarding failure to comply with their commitments, anddecided:

(a)  to take note with appreciation of the report of the Treasurer, including the tables showing the updated status of the Fund as at 4 April 2005, reproduced in Annex I to the present report; and

(b)  to request the Chair to send letters to those donor countries that had arrears up to and including 2004, and had not replied to the Treasurer, asking them to respond and to indicate when they would be able to meet their commitments. The Chair would report to the 47th Meeting on the issue.decided:

(UNEP/OzL.Pro/ExCom/45/55, Decision 45/2, para. 26).

The Forty-sixth Meeting of the Executive Committee decided to take note, with appreciation, of the report of the Treasurer, including the tables showing the updated status of the Fund and the ledger on the issuing, receipt and encashment of promissory notes as at 30 June 2005.

(UNEP/OzL.Pro/ExCom/46/47, Decision 46/1, para. 22).

The Forty-ninth Meeting of the Executive Committee decided:

(b)  to request the Treasurer to provide the 50th Meeting of the Executive Committee with information on when Parties that had been unable to make their contributions by 1 June would make their payments, in accordance with decision XI/6, paragraph 7, of the Eleventh Meeting of the Parties;

(c)  to note with concern that US $95,637,792 in promissory notes had not been encashed, representing approximately two thirds of the Fund’s annual budget;

(d)  to note with concern that no feedback had been provided to the Treasurer on his request to accelerate the encashment of promissory notes;

(e)  to urge countries holding promissory notes to take the necessary action to accelerate their encashment before the 50th Meeting of the Executive Committee;

(f)  to note the list of countries opting to use the fixed-exchange-rate mechanism facility for their contributions to the Fund for the triennium 2006-2008 as at 7 July 2006, contained in the Appendix to Annex I to the present report; and

(g)  to note that from 2006 onwards, the Government of Sweden would be devoting its entire contribution to the Fund as a multilateral contribution.

(UNEP/OzL.Pro/ExCom/49/43, Decision 49/2, para. 34).