• Reduction

Agreement between Serbia and Montenegro and the Executive Committee for the national phase-out of Annex A (Group I) substances

1.   This Agreement represents the understanding of Serbia and Montenegro (the “Country”) and the Executive Committee with respect to the complete phase-out of controlled use of the ozone depleting substances set out in Appendix 1-A (“The Substances”) prior to 2010, compliance with Protocol schedules.

2.   The Country agrees to phase out the controlled use of the Substances in accordance with the annual phase-out targets set out in Appendix 2-A as Maximum Allowable Total Consumption of CFCs (“The Targets, and Funding”) and this Agreement. The annual phase-out targets will, at a minimum, correspond to the reduction schedules mandated by the Montreal Protocol. The Country accepts that, by its acceptance of this Agreement and performance by the Executive Committee of its funding obligations described in paragraph 3, it is precluded from applying for or receiving further funding from the Multilateral Fund in respect to the Substances.

3.   Subject to compliance with the following paragraphs by the Country with its obligations set out in this Agreement, the Executive Committee agrees in principle to provide the funding set out in row N° 9 of Appendix 2-A (“The Targets, and Funding”) to the Country. The Executive Committee will, in principle, provide this funding at the Executive Committee meetings specified in Appendix 3-A (“Funding Approval Schedule”).

4.   The Country will meet the consumption limits for each Substance as indicated in Appendix 2-A. It will also accept independent verification by the relevant Implementing Agency of achievement of these consumption limits as described in paragraph 9 of this Agreement.

5.   The Executive Committee will not provide the Funding in accordance with the Funding Approval Schedule unless the Country satisfies the following conditions at least 30 days prior to the applicable Executive Committee meeting set out in the Funding Approval Schedule:

      (a)  that the Country has met the Target for the applicable year;

      (b)  that the meeting of the Target has been independently verified as described in paragraph 9; and

      (c)  that the Country has substantially completed all actions set out in the last Annual Implementation Programme;

      (d)  that the Country has submitted and received endorsement from the Executive Committee for an annual implementation programme in the form of Appendix 4 A (“Format for Annual Implementation Programmes”) in respect of the year for which funding is being requested.

6.   The Country will ensure that it conducts accurate monitoring of its activities under this Agreement. The institutions set out in Appendix 5-A (“Monitoring Institutions and Roles”) will monitor and report on that monitoring in accordance with the roles and responsibilities set out in Appendix 5-A. This monitoring will also be subject to independent verification as described in paragraph 9.

7.   While the Funding was determined on the basis of estimates of the needs of the Country to carry out its obligations under this Agreement, the Executive Committee agrees that the Country may use the Funding for other purposes that can be demonstrated to facilitate the smoothest possible phase-out, consistent with this Agreement, whether or not that use of funds was contemplated in determining the amount of funding under this Agreement. Any changes in the use of the Funding must, however, be documented in advance in the Country’s Annual Implementation Programme, endorsed by the Executive Committee as described in sub paragraph 5(d) and be subject to independent verification as described in paragraph 9.

8.   Specific attention will be paid to the execution of the activities in particular the servicing sector:

(a)  The Country would use the flexibility available under this agreement to address specific needs that might arise during project implementation;

(b)  The recovery and reuse programme for the refrigeration service sector would be implemented in stages so that remaining resources can be diverted to other phase out activities, such as additional training or procurement of service tools, if the proposed results areÿnÿtÿaÿhÿeÿeÿ ÿnÿ ÿiÿlÿbÿ ÿlÿsÿlÿ ÿoÿiÿoÿeÿ ÿiÿ ÿcÿoÿdÿnÿeÿwÿtÿ ÿhÿpÿeÿ ÿ0ÿiÿ ÿhÿ ÿrÿjÿcÿ ÿoÿuÿeÿtÿ<ÿ:ÿ>ÿ/ÿ:ÿ>ÿ/ÿpÿnÿ<ÿfÿnÿ>ÿ/ÿ>ÿ ÿ ÿpÿcÿaÿsÿMÿoÿoÿmÿlÿsÿyÿeÿ'ÿaÿgÿnÿbÿtÿoÿ:ÿ.ÿpÿ;ÿaÿ-ÿtÿpÿ:ÿ2ÿiÿ ÿ5ÿnÿ.ÿ5ÿnÿ1ÿ0ÿnÿ>ÿfÿnÿ ÿsÿzÿ=ÿ ÿaÿeÿ"ÿiÿeÿ ÿeÿ ÿoÿaÿ"ÿ<ÿpÿnÿsÿyÿeÿ'ÿoÿtÿsÿzÿ:ÿ0ÿ5ÿtÿfÿnÿ-ÿaÿiÿyÿ"ÿiÿeÿ ÿeÿ ÿoÿaÿ"ÿ ÿmÿoÿfÿrÿaÿtÿfÿnÿ-ÿaÿiÿyÿSÿmÿuÿ'ÿ9ÿ<ÿpÿnÿsÿyÿeÿ'ÿsÿ-ÿaÿ-ÿoÿnÿ:ÿ'ÿ ÿ ÿ/ÿpÿnÿTÿeÿ ÿoÿnÿrÿ ÿgÿeÿsÿtÿ ÿsÿuÿeÿoÿeÿaÿlÿrÿsÿoÿsÿbÿlÿtÿ ÿoÿ ÿhÿ ÿaÿaÿeÿeÿtÿaÿdÿ ÿmÿlÿmÿnÿaÿiÿnÿoÿ ÿhÿsÿAÿrÿeÿeÿtÿaÿdÿoÿ ÿlÿ ÿcÿiÿiÿiÿsÿuÿdÿrÿaÿeÿ ÿyÿiÿ ÿrÿoÿ ÿiÿsÿbÿhÿlÿ ÿoÿfÿlÿiÿ ÿhÿ ÿbÿiÿaÿiÿnÿ ÿnÿeÿ ÿhÿsÿAÿrÿeÿeÿtÿ ÿNÿDÿ ÿaÿ ÿgÿeÿdÿtÿ ÿbÿ ÿhÿ ÿeÿdÿIÿpÿeÿeÿtÿnÿ ÿgÿnÿyÿ(ÿLÿaÿ ÿAÿ)ÿaÿdÿSÿeÿeÿ ÿ“ÿoÿoÿeÿaÿiÿgÿIÿ”ÿ ÿaÿ ÿaÿrÿeÿ ÿoÿbÿ ÿ ÿoÿoÿeÿaÿiÿgÿIÿpÿeÿeÿtÿnÿ ÿgÿnÿyÿuÿdÿrÿtÿeÿlÿaÿ ÿfÿtÿeÿLÿaÿ ÿAÿ ÿnÿrÿsÿeÿtÿoÿ ÿhÿ ÿoÿnÿrÿ’ÿ ÿcÿiÿiÿiÿsÿuÿdÿrÿtÿiÿ ÿgÿeÿmÿnÿ.ÿTÿeÿLÿaÿ ÿAÿwÿlÿ ÿbÿ ÿeÿpÿnÿiÿlÿ ÿoÿ ÿaÿrÿiÿgÿoÿtÿtÿeÿaÿtÿvÿtÿeÿ ÿiÿtÿdÿiÿ ÿpÿeÿdÿxÿ6ÿAÿiÿcÿuÿiÿgÿ ÿuÿ ÿoÿ ÿiÿiÿeÿ ÿoÿiÿdÿpÿnÿeÿtÿvÿrÿfÿcÿtÿoÿ.ÿTÿeÿcÿuÿtÿyÿaÿsÿ ÿgÿeÿsÿtÿ ÿpÿrÿoÿiÿ ÿvÿlÿaÿiÿnÿ,ÿwÿiÿhÿwÿlÿ ÿeÿcÿrÿiÿdÿoÿtÿuÿdÿrÿtÿeÿmÿnÿtÿrÿnÿ ÿnÿ ÿeÿaÿuÿtÿoÿ ÿoÿkÿpÿoÿrÿmÿeÿ ÿfÿtÿeÿMÿlÿiÿaÿeÿaÿ ÿuÿdÿ ÿhÿ ÿoÿoÿeÿaÿiÿgÿIÿ ÿiÿlÿ ÿeÿrÿsÿoÿsÿbÿeÿfÿrÿcÿrÿyÿnÿ ÿuÿ ÿhÿ ÿcÿiÿiÿiÿsÿlÿsÿeÿ ÿnÿAÿpÿnÿiÿ ÿ-ÿ.ÿTÿeÿ ÿxÿcÿtÿvÿ ÿoÿmÿtÿeÿ ÿgÿeÿsÿ ÿnÿpÿiÿcÿpÿeÿ ÿoÿpÿoÿiÿeÿtÿeÿLÿaÿ ÿAÿaÿdÿtÿeÿ ÿoÿoÿeÿaÿiÿgÿIÿ ÿiÿhÿtÿeÿfÿeÿ ÿeÿ ÿuÿ ÿnÿrÿwÿ ÿ°ÿ6ÿaÿdÿNÿ ÿ ÿfÿAÿpÿnÿiÿ ÿ-ÿ.ÿ<ÿ:ÿ>ÿ/ÿ:ÿ>ÿ/ÿpÿnÿ<ÿfÿnÿ>ÿ/ÿ>ÿ ÿ ÿpÿcÿaÿsÿMÿoÿoÿmÿlÿsÿyÿeÿ'ÿaÿgÿnÿbÿtÿoÿ:ÿ.ÿpÿ;ÿaÿ-ÿtÿpÿ:ÿ2ÿiÿ ÿ5ÿnÿ.ÿ5ÿnÿ1ÿ0ÿnÿ>ÿfÿnÿ ÿsÿzÿ=ÿ ÿaÿeÿ"ÿiÿeÿ ÿeÿ ÿoÿaÿ"ÿ<ÿpÿnÿsÿyÿeÿ'ÿoÿtÿsÿzÿ:ÿ0ÿ5ÿtÿfÿnÿ-ÿaÿiÿyÿ"ÿiÿeÿ ÿeÿ ÿoÿaÿ"ÿ ÿmÿoÿfÿrÿaÿtÿfÿnÿ-ÿaÿiÿyÿSÿmÿuÿ'ÿ1ÿ.ÿsÿaÿ ÿtÿlÿ=ÿmÿoÿtÿbÿcÿuÿtÿ1ÿ>ÿ ÿ/ÿpÿnÿSÿoÿlÿ ÿtÿeÿCÿuÿtÿyÿ ÿoÿ ÿnÿ ÿeÿsÿnÿ ÿoÿ ÿeÿtÿtÿeÿTÿrÿeÿ(ÿ)ÿfÿrÿtÿeÿeÿiÿiÿaÿiÿnÿoÿ ÿhÿ ÿSÿbÿtÿnÿeÿ ÿnÿaÿlÿtÿeÿSÿcÿoÿsÿoÿ ÿtÿeÿwÿsÿ ÿoÿsÿnÿtÿcÿmÿlÿ ÿiÿhÿtÿiÿ ÿgÿeÿmÿnÿ,ÿ ÿhÿnÿtÿeÿCÿuÿtÿyÿaÿrÿeÿ ÿhÿtÿiÿ ÿiÿlÿnÿtÿbÿ ÿnÿiÿlÿdÿtÿ ÿhÿ ÿuÿdÿnÿ ÿnÿ ÿcÿoÿdÿnÿeÿwÿtÿ ÿhÿ ÿuÿdÿnÿ ÿpÿrÿvÿlÿSÿhÿdÿlÿ.ÿIÿ ÿhÿ ÿiÿcÿeÿiÿnÿoÿ ÿhÿ ÿEÿeÿuÿiÿeÿCÿmÿiÿtÿeÿ ÿuÿdÿnÿ ÿiÿlÿbÿ ÿeÿnÿtÿtÿdÿaÿcÿrÿiÿgÿtÿ ÿ ÿeÿiÿeÿ ÿuÿdÿnÿ ÿAÿpÿoÿaÿ ÿcÿeÿuÿeÿdÿtÿrÿiÿeÿ ÿyÿtÿeÿEÿeÿuÿiÿeÿCÿmÿiÿtÿeÿaÿtÿrÿtÿeÿCÿuÿtÿyÿhÿsÿ ÿeÿoÿsÿrÿtÿdÿtÿaÿ ÿtÿhÿsÿsÿtÿsÿiÿdÿaÿlÿoÿ ÿtÿ ÿbÿiÿaÿiÿnÿ ÿhÿtÿwÿrÿ ÿuÿ ÿoÿbÿ ÿmÿtÿpÿiÿrÿtÿ ÿeÿeÿpÿ ÿfÿtÿeÿnÿxÿ ÿnÿtÿlÿeÿtÿoÿ ÿuÿdÿnÿ ÿnÿeÿ ÿhÿ ÿuÿdÿnÿ ÿAÿpÿoÿaÿ ÿcÿeÿuÿeÿ ÿhÿ ÿoÿnÿrÿ ÿcÿnÿwÿeÿgÿsÿtÿaÿ ÿhÿ ÿxÿcÿtÿvÿ ÿoÿmÿtÿeÿ ÿaÿ ÿrÿdÿcÿ ÿhÿ ÿmÿuÿtÿoÿ ÿhÿ ÿuÿdÿnÿ ÿyÿtÿeÿaÿoÿnÿsÿsÿtÿoÿtÿiÿ ÿpÿeÿdÿxÿ7ÿAÿiÿ ÿrÿsÿeÿtÿoÿ ÿaÿhÿOÿPÿtÿnÿeÿoÿ ÿhÿ ÿmÿuÿtÿeÿcÿeÿiÿgÿtÿeÿMÿxÿmÿmÿAÿlÿwÿbÿeÿTÿtÿlÿ ÿoÿsÿmÿtÿoÿ ÿfÿCÿCÿ ÿiÿiÿ ÿAÿpÿnÿiÿ ÿ-ÿ)ÿiÿ ÿnÿ ÿnÿ ÿeÿrÿ<ÿ:ÿ>ÿ/ÿ:ÿ>ÿ/ÿpÿnÿ<ÿfÿnÿ>ÿ/ÿ>ÿ ÿ ÿpÿcÿaÿsÿMÿoÿoÿmÿlÿsÿyÿeÿ'ÿaÿgÿnÿbÿtÿoÿ:ÿ.ÿpÿ;ÿaÿ-ÿtÿpÿ:ÿ2ÿiÿ ÿ5ÿnÿ.ÿ5ÿnÿ1ÿ0ÿnÿ>ÿfÿnÿ ÿsÿzÿ=ÿ ÿaÿeÿ"ÿiÿeÿ ÿeÿ ÿoÿaÿ"ÿ<ÿpÿnÿsÿyÿeÿ'ÿoÿtÿsÿzÿ:ÿ0ÿ5ÿtÿfÿnÿ-ÿaÿiÿyÿ"ÿiÿeÿ ÿeÿ ÿoÿaÿ"ÿ ÿmÿoÿfÿrÿaÿtÿfÿnÿ-ÿaÿiÿyÿSÿmÿuÿ'ÿ1ÿ.ÿsÿaÿ ÿtÿlÿ=ÿmÿoÿtÿbÿcÿuÿtÿ1ÿ>ÿ ÿ/ÿpÿnÿTÿeÿ ÿuÿdÿnÿ ÿoÿpÿnÿnÿsÿoÿ ÿhÿsÿAÿrÿeÿeÿtÿwÿlÿ ÿoÿ ÿeÿmÿdÿfÿeÿ ÿnÿtÿeÿbÿsÿsÿoÿ ÿnÿ ÿfÿtÿrÿ ÿxÿcÿtÿvÿ ÿoÿmÿtÿeÿ ÿeÿiÿiÿnÿtÿaÿ ÿaÿ ÿfÿeÿtÿtÿeÿfÿnÿiÿgÿoÿ ÿnÿ ÿtÿeÿ ÿcÿnÿuÿpÿiÿnÿsÿcÿoÿ ÿrÿjÿcÿsÿoÿ ÿnÿ ÿtÿeÿ ÿeÿaÿeÿ ÿcÿiÿiÿiÿsÿiÿ ÿhÿ ÿoÿnÿrÿ.ÿoÿpÿ<ÿoÿpÿ<ÿsÿaÿ>ÿ/ÿoÿtÿ<ÿpÿ ÿ ÿ<ÿ ÿlÿsÿ=ÿsÿNÿrÿaÿ ÿtÿlÿ=ÿmÿrÿiÿ-ÿoÿtÿmÿ4ÿ0ÿtÿtÿbÿsÿoÿsÿ.ÿ5ÿnÿ.ÿiÿ ÿ7ÿiÿ ÿ.ÿiÿ'ÿ<ÿoÿtÿ ÿiÿeÿ2ÿfÿcÿ=ÿTÿmÿsÿNÿwÿRÿmÿnÿ>ÿsÿaÿ ÿtÿlÿ=ÿfÿnÿ-ÿiÿeÿ1ÿ.ÿpÿ;ÿoÿtÿfÿmÿlÿ:ÿTÿmÿsÿNÿwÿRÿmÿnÿ;ÿ ÿsÿ-ÿaÿeÿsÿ-ÿoÿtÿfÿmÿlÿ:ÿiÿSÿnÿ>ÿ2ÿ<ÿpÿnÿsÿyÿeÿ'ÿsÿ-ÿaÿ-ÿoÿnÿ:ÿ'ÿ ÿ<ÿsÿaÿ>ÿhÿ ÿCÿuÿtÿyÿwÿlÿ ÿoÿpÿyÿwÿtÿ ÿnÿ ÿeÿsÿnÿbÿeÿrÿqÿeÿtÿoÿ ÿhÿ ÿxÿcÿtÿvÿ ÿoÿmÿtÿeÿ ÿnÿ ÿtÿeÿLÿaÿ ÿAÿaÿdÿtÿeÿCÿ-ÿpÿrÿtÿnÿ ÿAÿtÿ ÿaÿiÿiÿaÿeÿiÿpÿeÿeÿtÿtÿoÿ ÿfÿtÿiÿ ÿAÿrÿeÿeÿtÿ ÿnÿpÿrÿiÿuÿaÿ,ÿiÿ ÿiÿlÿpÿoÿiÿeÿaÿcÿsÿ ÿoÿtÿeÿLÿaÿ ÿAÿaÿdÿtÿeÿ ÿoÿoÿeÿaÿiÿgÿIÿ ÿoÿiÿfÿrÿaÿiÿnÿnÿcÿsÿaÿyÿtÿ ÿeÿiÿyÿcÿmÿlÿaÿcÿ ÿiÿhÿtÿiÿ ÿAÿrÿeÿeÿtÿ<ÿ:ÿ>ÿ/ÿ:ÿ>ÿ/ÿpÿnÿ<ÿfÿnÿ>ÿ/ÿ>ÿ ÿ ÿpÿcÿaÿsÿMÿoÿoÿmÿlÿsÿyÿeÿ'ÿaÿgÿnÿbÿtÿoÿ:ÿ.ÿpÿ;ÿaÿ-ÿtÿpÿ:ÿ2ÿiÿ ÿ5ÿnÿ.ÿ5ÿnÿ1ÿ0ÿnÿ>ÿfÿnÿ ÿsÿzÿ=ÿ ÿaÿeÿ"ÿiÿeÿ ÿeÿ ÿoÿaÿ"ÿ<ÿpÿnÿsÿyÿeÿ'ÿoÿtÿsÿzÿ:ÿ0ÿ5ÿtÿfÿnÿ-ÿaÿiÿyÿ"ÿiÿeÿ ÿeÿ ÿoÿaÿ"ÿ ÿmÿoÿfÿrÿaÿtÿfÿnÿ-ÿaÿiÿyÿSÿmÿuÿ'ÿ1ÿ.ÿsÿaÿ ÿtÿlÿ=ÿmÿoÿtÿbÿcÿuÿtÿ1ÿ>ÿ ÿ/ÿpÿnÿAÿlÿ ÿfÿtÿeÿaÿrÿeÿeÿtÿ ÿeÿ ÿuÿ ÿnÿtÿiÿ ÿgÿeÿmÿnÿ ÿrÿ ÿnÿeÿtÿkÿnÿsÿlÿlÿ ÿiÿhÿnÿtÿeÿ ÿoÿtÿxÿ of the Montreal Protocol and as specified in this Agreement. All terms used in this Agreement have the meaning ascribed to them in the Protocol unless otherwise defined herein.

Appendices

Appendix 1-A: The Substances

Appendix 2-A: The Targets, and Funding

Appendix 3-A: Funding Disbursement Schedule

1.   In order to assist the Country in establishing its implementation structure within the country, achievement of the 2005 reduction targets, and to initiate measures necessary to meet the other reduction targets included in Appendix 2-A, the Executive Committee decides at its 43rd Meeting to provide US $622,700 plus US $54,843 in agency support costs to Serbia and Montenegro.

2.   Funding other than the payments in 2004, will be considered for approval at the first meeting of the year of the annual implementation plan.

Appendix 4-A: Format of Annual Implementation Programme

2.   Targets

3.   Industry Action

4.   Technical Assistance

      Proposed Activity:    _____________________________

      Objective:                _____________________________

      Target Group:          _____________________________

      Impact:                   _____________________________

5.   Government Action

7.       Annual Budget

Administrative Fees

Appendix 5-A: Monitoring Institutions and Roles

1.   The National Ozone Unit monitors the consumption data of all Substances through regional teams. Inspections at reconverted companies are foreseen to ensure the non uses of Substances after project completion. The licensing System will be a tool to monitor and ensure compliance of control measures.

2.   The Government has offered and intends to offer continuity of activities and endorsement for the projects through the institutional support over the next years. This will guarantee the success of any activity approved for Serbia and Montenegro.

3.   After the establishment of the countrywide scheme of refrigerant recovery and reuse, the monitoring activity will be initiated to know whether the project is successfully implemented and the target CFC phase out is achieved.

4.   Monitoring activity will be done by:

      (a)  establishing a system to ensure that every reuse centre and substantive size service workshop is encouraged or obliged to report data and give information to the recovery and reuse scheme. This may be enabled through forms to be filled by reuse centres and service workshops.

      (b)  setting up adequate office facilities including a computer system to collect and analyse the data.

      (c)  regular communication with the regional environmental and industry departments, customs offices, education and training institutions and industry associations.

      (d)  occasional visits to service workshops, reuse centres.

5.   Information regarding CFC quantity and cost information will have to be supplied by the reuse centres and substantive size service workshops.

6.   Data and information collected will be analysed to check the adequate operations of the scheme.

7.   In the manufacturing sector the implementation process and the achievement of the phase out will be monitored through site visits at enterprise level.

8.   UNIDO will perform regular monitoring, verification and auditing of the implementation of the National Phase-out Plan in line with the established procedures of both the Multilateral Fund and UNIDO.

Appendix 6-A: Role of the Lead IA

The Lead IA under the mandate of the Multilateral Fund will be responsible for a range of activities to be specified in the project document along the lines of the following:

      (a)  ensuring performance and financial verification in accordance with this Agreement and with its specific internal procedures and requirements as set out in the Country’s phase-out plan;

      (b)  providing verification to the Executive Committee that the Targets have been met and associated annual activities have been completed as indicated in the annual implementation programme;

      (c)  assisting the Country in preparation of the Annual Implementation Programme;

      (d)  ensuring that achievements in previous Annual Implementation Programmes are reflected in future Annual Implementation Programmes;

      (e)  reporting on the implementation of the Annual Implementation Programme commencing with the Annual Implementation Programme for the 2004 year to be prepared and submitted in 2005;

      (f)  ensuring that technical reviews undertaken by the Lead IA are carried out by appropriate independent technical experts;

      (g)  carrying out required supervision missions;

      (h)  ensuring the presence of an operating mechanism to allow effective, transparent implementation of the Annual Implementation Programme and accurate data reporting;

      (i)   verification for the Executive Committee that consumption of the Substances has been eliminated in accordance with the Targets;

      (j)   ensuring that disbursements made to the Country are based on the use of the Indicators; and

      (k)  providing assistance with policy, management and technical support when required.

Appendix 6-B: Roles of Cooperating Implementing Agencies

1.   The Government of Sweden, as co-Implementing Agency, will be:

      (a)  assisting the Country in the implementation and verification of the activities funded by the Swedish bilateral quota during 2004-2006 as specified in rows N° 7 and N° 8 of Appendix 2-A.

      (b)  ensuring that disbursements are made to the Country in a timely and effective manner;

      (c)  reporting to the Lead Agency on these activities and

      (d)  providing assistance relating to the service sector when required and within the funds available.

Appendix 7-A: Reductions in Funding for Failure to Comply

In accordance with paragraph 10 of the Agreement, the amount of funding provided may be reduced by US $13,300 per ODP tonne of reductions in consumption not achieved.

(UNEP/OzL.Pro/ExCom/43/61, Decision 43/32, para. 117).

(Supporting document: UNEP/OzL.Pro/ExCom/43/61 Annex V).