• Reduction

Agreement between Venezuela and the Executive Committee for the phase-out of ODSs

1.   This Agreement represents the understanding of Venezuela (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 1 January 2010, in 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 row 1 of Appendix 2-A 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 7 of Appendix 2-A (the “Funding”) to the Country. The Executive Committee will, in principle, provide this funding at the Executive Committee meetings specified in Appendix 3-A (the “Funding Disbursement 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 Disbursement Schedule unless the Country satisfies the following conditions at least 30 days prior to the applicable Executive Committee meeting set out in the Funding Disbursement 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;

      (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 (the “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 (the “Monitoring”) 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 the servicing sector, in particular:

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

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Appendices

Appendix 1-A: The substances

1.   The ozone-depleting substances to be phased out under the Agreement are as follows.

Appendix 2-A: The targets, and funding

Appendix 3-A: Funding disbursement schedule

Funding will be considered for approval at the first meeting in the year of the annual 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

6.   Annual Budget

7.   Administrative Fees

Appendix 5-A: Monitoring Institutions and Roles

1.   The National Ozone Unit (FONDOIN) monitors the consumption data of all ODS. Inspections at converted companies are foreseen to ensure permanent phase out of CFCs after project completion. The licensing system, which is under approval, 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 Argentina.

3.   After the establishment of the countrywide scheme of refrigerant recovery and recycling, the monitoring activity will be initiated to determine 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 recycling and reclamation centre and substantive size service workshop is encouraged or obliged to report data and give information to the recovery and recycling scheme. This may be enabled through forms to be filled by recycling 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, recycling and reclamation centres.

5.   Following information will have to be supplied by the recycling and reclamation centres and substantive size service workshops.

CFC quantity

•     number of appliances subjected to refrigerant recovery and type (commercial. MAC, domestic etc.) of these appliances at every service workshop;

•     amount of recovered CFC refrigerants at every workshop;

•     amount of recovered CFC refrigerants sent to the recycling centres at every workshop;

•     amount of recovered CFC refrigerants stored at every workshop;

•     amount of recovered CFC refrigerants received from service workshops at every recycling centre;

•     amount of recycled/reclaimed CFC refrigerants at recycling/reclaim centres;

•     amount of recycled/reclaimed CFC refrigerants returned (sold) to workshops;

•     amount of recycled/reclaimed CFC refrigerants used in workshops and its application;

•     amount of virgin refrigerant by type consumed in workshops and its application;

•     amount of CFC refrigerants, which can not be recycled and are subject to further treatment (e.g., sent to reclaiming plants, or decomposition plants abroad);

•     other data relevant for monitoring the scheme (amount of imported CFC refrigerants etc.).

Cost information

•     cost of recovery at every service workshop and parties who bear the cost;

•     cost of recycling at every recycling centre and parties who bear the cost;

•     price of recycled CFC refrigerants;

•     cost of reclaiming at every reclamation centre and parties who bear the cost;

•     price of reclaimed CFC refrigerants;

•     other financial information relevant to monitoring the recovery recycling and reclamation scheme.

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 Implementing Agency

1.   The Lead IA will be responsible for:

      (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)  report on the implementation of the Annual Implementation Programme of the preceding year and the Annual Implementation Programme for the year are to be prepared and submitted to the first meeting of the Executive Committee of the year;

      (f)  ensuring that technical reviews undertaken by the Lead IA are carried out by appropriate 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 in accordance with the Target;

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

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

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 $11,920 per ODP tonne of reductions in consumption not achieved in the year.

(UNEP/OzL.Pro/ExCom/42/54, Decision 42/33, para. 117).

(Supporting document: UNEP/OzL.Pro/ExCom/42/54 Annex XII).