PROJECT BRIEF
1.	Identifiers
Project Number:	
Project Name:	Azerbaijan: Programme for Phasing Out Ozone Depleting Substances
Duration:	3 years
Implementing Agency:	UNDP/UNEP
Executing Agency:	UNOPS/UNEP
Requesting Country:	Azerbaijan Republic
Eligibility:	Ratified Vienna Convention, Montreal Protocol (and the London and Copenhagen Amendments thereof) in June 1996. Recipient country status with UNDP
GEF Focal Area:	Ozone Depletion
GEF Programming Framework:	ODS phase-out in consumption
___________________________________________________________________________
2.	Summary:  The objective of this project is to assist the Azerbaijan Republic in the rapid phase-out of ODS consistent with the international efforts in this direction. The project will assist the Azerbaijan Republic in meeting its phase-out obligations under the Montreal Protocol within a realistic time frame and ensure availability of technical assistance to expedite the implementation of the country programme. The project targets priority ODS phase-out activities in the refrigeration and halon sectors and also proposes modest technical assistance at the institutional and enterprise levels to facilitate implementation of the country programme. The project is formulated as a framework project, comprising of two enterprise-specific technology conversion sub-projects in Refrigeration, one sub-project in Halons, one Recovery and Recycling sub-project for Refrigerants and two technical assistance and training components. The project is designed in full conformity with relevant GEF policies on cost-effectiveness, exports, ownership, retro-active financing, operational costs and financial viability as per requirements of the GEF Operational Strategy.
___________________________________________________________________________
3.	Costs and Financing
GEF				:	Project						:	US$   6,749,515
						PDF B (already approved):	US$      117,500
						Subtotal GEF				:	US$   6,867,015
Co-financing		:	IA							:	US$                 0
						Other International	:	:	US$                 0
						Government (in kind)		:	US$        36,000
						Private						:	US$   2,190,000
Total Project Cost									:	US$   9,093,015
___________________________________________________________________________
4.	Associated Financing						:	No associated financing
5.	Operational Focal Point Endorsement
Name			:	Mr. Fuad Akhund-zade
Title			:	Deputy Chief, Department of Science and Environmental Protection
Organization	:	State Committee of Ecology and Nature Management
Date			:	26 January 1998
___________________________________________________________________________
6.	IA Contacts

FOR UNDP

Name			:	Frank Pinto, Chief
Title			:	Attn  :  Jacques Van Engel
Dept/Div		:	Montreal Protocol Unit, SEED/UNDP
Telephone		:	1-212-906-5782
Telefax			:	1-212-906-6947
E-mail			:	jacques.van.engel@undp.org

FOR UNEP

Name			:	Rajendra Shende, Co-ordinator
Title			:	Attn  :  Annette Kalnieva
Dept/Div		:	OzonAction Programme, UNEP-IE
Telephone		:	33-1-4437.1464
Telefax			:	33-1-4437.1474
E-mail			:	annette.kalnieva@unep.fr

List of abbreviations:

CE:			Cost Effectiveness
CEIT:		Countries with Economies in Transition
CIS:		Commonwealth of Independent States
CFC:		Chloro-fluoro-carbons
CTC:		Carbon-tetrachloride
GEF:		Global Environmental Facility
HCFC:		Hydro-chloro-fluorocarbons
HFC:		Hydro-fluorocarbons
IA: 		Implementing Agency
MCF: 		Methyl chloroform
MLF: 		Multilateral Fund for the Implementation of the Montreal Protocol
MP:		Montreal Protocol
MT: 		Metric tonnes
NA:		Not Applicable
NGO:		Non-Governmental Organization
ODP:		Ozone Depleting Potential
ODS:		Ozone Depleting Substances
PDF:		Project Development Facility
RAC:		Refrigeration and Air Conditioning
STAP:		Science and Technical Advisory Panel
UNDP:		United Nations Development Programme
UNEP:		United Nations Environmental Programme
UNOPS:	United Nations Office for Projects Services
WTO:		World Trade Organization

AZERBAIJAN REPUBLIC

PROGRAMME FOR PHASING OUT OZONE DEPLETING SUBSTANCES

BACKGROUND AND CONTEXT (BASELINE COURSE OF ACTION)

1. The recognition of the phenomenon of depletion of the stratospheric ozone layer, has led to a substantial international effort to phase out Ozone Depleting Substances (ODS). The emission of ODS into the earth’s atmosphere causes damage to the stratospheric ozone layer which acts as a barrier to ultra-violet radiation from the Sun. Increased radiation has been traced as contributing to a higher incidence of skin cancer, eye diseases and immunological disorders while adversely affecting ecological food chains and bio-diversity. In the mid-1980s it was found that ozone depleting substances are responsible for the destruction of the ozone layer :
•	Chloro-fluoro-carbons (CFCs): Used extensively in refrigeration and air-conditioning (as refrigerants), in foams (as blowing agents), in aerosols (as  propellants), and also as solvents and cleaning agents.
•	Halons: Used in fire-extinguishers and in fire fighting systems
•	Methyl Bromide: Used as a fumigants

2. The basis of phasing out of the ozone depleting substances including CFCs, Halons, several halogenated solvents, agricultural fumigants such as Methyl Bromide and a class of transitional chemicals known as Hydrochlorofluorocarbons (HCFCs), is the Montreal Protocol (1987) ratified by all developed countries and most developing countries. Further recognition that ozone depletion is in fact occurring more rapidly than anticipated, has led to two amendments to the Montreal Protocol which added controlled substances and accelerated phase-out schedules. The first amendment in June 1990 (London Amendment) added methyl chloroform (MCF) and carbon tetrachloride (CTC) and tightened the phase-out schedule. The second amendment in November 1992 (Copenhagen Amendment), added HCFCs and methyl bromide as controlled substances and further accelerated phase-out schedules. For developed countries, the phase-out dates are :
•	Halons			:	January 1994
•	CFCs, MCF and CTC	:	January 1996
•	Methyl Bromide	:	Year 2010 (except critical agricultural uses)
•	HCFCs			:	Year 2030

3. Azerbaijan declared independence from the former Soviet Union in August 1991 and became a republic in April 1992. The Azerbaijan Republic ratified the Vienna Convention, the Montreal Protocol (and the London and Copenhagen amendments thereof) in June 1996. Azerbaijan has reported data for 1996 to the Ozone Secretariat as required under the Montreal Protocol requirements. The Implementation Committee of the Montreal Protocol has not discussed the status of Azerbaijan regarding compliance with the Protocol. 

4. The State Committee of Ecology and Nature Management Control is the national co-ordinating body, which is in the process of creating the necessary administrative and legal framework to control the trade and usage of ODS, to enable Azerbaijan to fulfil its obligations under the Montreal Protocol. The Committee is supported in its endeavors by the Environmental Committee of the Parliament of Azerbaijan, the Council of Ministers, the Ministry of Economy and the Customs Department. The Committee constituted a National Ozone Team, comprising of representatives of the Fire Fighting Department, the committee on Hydrometeorology, representatives from the Ministry of Trade, the State Oil Company and from the user industry and the scientific community, to support it in its efforts to facilitate ODS phase-out. The initial country programme for the phase-out of ODS was compiled in 1997 at the initiative of the UNEP/IE, based on the exhaustive data survey of ODS consumption in various sectors, conducted by the National Ozone Team. 

5. The Government of Azerbaijan clearly understands the country’s responsibility as a member of the global community, to protect the ozone layer and the Azerbaijan Republic must share the economic and social burden caused by the international efforts to phase out ODS. As a party to the Montreal Protocol classified under Article-2 of the Protocol, Azerbaijan is required to contribute to the Multilateral Fund. However, being an economy in transition, the Azerbaijan Republic expects to be technically and financially supported in its efforts to meet its obligations, by the Global Environmental Facility and other international environmental funds.

6. The stated priorities and the strategic goals of the Government, for implementing the compliance with the Montreal Protocol are as below :
•	Phase out of the consumption of ODS by the year 2000, except for minor amounts of CFCs used as refrigerants for maintenance purposes)
•	Phase-out of the consumption of Halons by the year 2000.
•	Comply with the phase-out schedules for HCFCs and Methyl Bromide as applicable to countries operating under Article-2 of the Montreal Protocol.
•	Support the industry in Azerbaijan to convert to ODS-free technologies with support from GEF and other international funds and multilateral agencies (UNDP, UNEP, World Bank, WTO, etc.)
•	Develop and establish appropriate legal and regulatory framework to ensure effective and efficient phase-out process
•	Develop and establish the necessary monitoring and licensing systems to control the imports and exports of ODS
•	Support further scientific research on ozone layer depletion and thus contribute to its protection

7. Azerbaijan does not produce or export any substances controlled under the Montreal Protocol. The bulk of ODS is imported from the Russian Federation. Minor and unidentified quantities are imported directly from or indirectly as blends from Turkey, Germany and Belgium. The ODS producers in the Russian Federation are scheduled to discontinue production by the year 2000. The proposed GEF assistance to ODS consuming enterprises in Azerbaijan would enable them to make the transition to non-ODS materials in a planned and gradual manner, thereby avoiding a crisis, when the supplies from the Russian Federation are discontinued. Early reduction in ODS consumption will also reduce demand for ODS from unauthorized sources.

8. In 1996, the total consumption of ODS in Azerbaijan was 644.03 MT of ODS (equivalent to 965.69 MT ODP).  The dominant sectors of ODS use are Refrigeration (462 MT ODP - 48%) and Halons (501 MT ODP - 51%). In other sectors, Solvents (0.005%), Foams (0.3%) and other uses (0.001%) constitute the balance ODS consumption. The above figures are based on the survey conducted by the National Ozone Team and UNEP in 1997. In the previous ten years (1986-95) the ODS consumption in Azerbaijan has decreased by about 71%, from 1,069 MT to about 308 MT, due to structural changes in the industry and significant decrease in the production of refrigeration equipment.  The increased 1996 consumption is mainly due to large imports of Halons during that year.

9. It is foreseen that the ODS consumption would fall, due to the worldwide transition to ODS-free technologies and resulting market pressures. It is expected that with the assistance of GEF, by the year 2000 the consumption of ODS would be negligible and nil by the year 2005.

RATIONALE AND OBJECTIVES

10. The main objective of this project is to assist Azerbaijan in the rapid phase-out of ODS consistent with international efforts in this direction. Other CEIT countries were asked by the Implementation Committee to phase out CFC’s by the year 2000, and it is likely that this will also apply for Azerbaijan. The GEF proposal presented herewith would allow Azerbaijan to comply with such a requirement.

11. Assistance to enterprises representing the bulk of the consumption of ODS, would enable them to make the transition to non-ODS materials before legal supplies of ODS are discontinued. The project will also enable Azerbaijan to meet its phase-out obligations under the Montreal Protocol within a realistic time frame, and also ensure availability of technical assistance to expedite the Country Programme implementation.

12. The project targets priority ODS phase-out activities in the Refrigeration and Halon sectors. It also provides modest technical assistance at the institutional and enterprise levels to facilitate the implementation of the Country Programme and one demonstration project for training of trainers for transferring the knowledge of ODS-free refrigeration service. 

13. The formulation of this project through the PDF grant has been a result of several missions of UNDP/UNEP consultants and assistance from national consultants who carried out the data survey. The full-fledged Country Programme and the Refrigerant Management Plan have been prepared in accordance with the guidelines of theMultilateral Fund for the Montreal Protocol. The project components listed in the ensuing paras are a direct consequence of the strategies formulated in the Country Programme and the Refrigerant Management Plan.
14. The project is formulated as a framework project comprising of two enterprise-specific technology conversion sub-projects in Refrigeration, one phase-out sub-project in Halons, one recovery and recycling sub-project for Refrigerants and two technical assistance and training components.  The project has been designed in full conformity with relevant GEF policies, particularly those on cost-effectiveness, exports, ownership, retroactive financing, operational costs and financial viability as included in Chapter 5 of the GEF Operational Strategy. The summary of the overall project and the sub-projects cost data is provided in Annex-1. Resources provided through a PDF-B grant have been utilized in preparation of the project to a level acceptable for GEF review. The preparation includes detailed technology conversion and related cost analyses. Each sub-project was examined by a STAP reviewer, whose comments were either incorporated or taken into account; the STAP reviews recommended approval of all sub-projects. Both the sub-project documents and the STAP reviews are available at the UNDP’s Montreal Protocol Unit in New York.

PROJECT ACTIVITIES/COMPONENTS AND EXPECTED RESULTS

15. In order to achieve the above-mentioned objective, the project contains two components:
•	a technology conversion component 
•	a technical assistance and training component.

16. The technology conversion component comprises of three sub-projects in the Refrigeration sector and one sub-project in the Halons sector, to be implemented by the UNDP. A brief description of these sub-projects is as below :
•	Refrigeration (US$ 2,398,000)  : Under this sub-project, Sumyagit Compressor Plant, a 100% Azerbaijan-owned enterprise, producing hermetic compressors suitable for CFC-12, will convert to the manufacture of hermetic compressors suitable for HFC-134a and HC-600a. ODS elimination will be facilitated at the level of the users of these compressors, such as refrigerator manufacturers.
•	Refrigeration (US$ 2,728,793) : Under this sub-project, Chinar, a 100% Azerbaijan-owned enterprise manufacturing domestic refrigerators, will eliminate about 122 MT of CFCs annually, by converting operations to cyclo-pentane based foam systems and to HFC-134a for the refrigeration systems.
•	Refrigeration (US$  1,105,662)  :   Under this project a comprehensive national programme for Recovery and Recycling of refrigerants in the Refrigeration and Airconditioning sector would be implemented, as a part of a national Refrigerant Management Plan. This would be achieved through provision of recovery and recycling equipment to be used in about 50 centers in the country, leading to an elimination of about 85 MT of CFCs annually.
•	Halons (US$ 135,160)  :  Under this project, a National Recovery and Recycling Center for Halon Management and Banking will be established, comprising of facilities for storage and handling of Halons 1211 and 2402, leading to an elimination of about 3 MT of Halons (or 100 MT ODP) annually.

17. The technical assistance and training components comprises of two sub-components, assistance for training of trainers for refrigeration service and maintenance and development of an institutional framework within Azerbaijan for implementing the country programme, to be implemented by the UNEP. The brief descriptions for the technical assistance and training components are as follows :
•	Training the Trainers in Refrigeration (US$ 114,900) : This sub-component will provide training to training personnel for service, maintenance and repair in the refrigeration sector, to ensure reduction in ODS emissions during service. This training project is crucial for the successful implementation of the Refrigerant Management Plan (which was prepared simultaneously with the Country Programme) due to the significant contribution of the Refrigeration sector to the overall ODS consumption in the country.
•	Assistance for Co-ordinating the Implementation of the Country Programme (US$ 267,000): This sub-component will provide resources to the State Committee of Ecology and Nature Management for strengthening the national institutional structure and monitoring the ODS phase-out activities for a period of three years. A National Ozone Office will be established for the Committee to assist in administering the project and co-ordinating the implementation of the Country Programme as per the National Action Plan. This support would include computing and communications equipment, operating costs including telecommunications and office supplies, staff support for a national project co-ordinator, funding for essential public awareness and project support services. This component will be implemented by UNEP in co-operation with the UNDP country office.

18. Implementation of this project will contribute to the global ODS phase-out efforts by helping to eliminate the use of 996 ODP MT of ODS annually. The GEF grant funding will allow Azerbaijan to substantially meet its national obligations under the Montreal Protocol within a three-year period. This will serve to enhance the credibility of the country in the international community. In the longer term, it allows the country to avoid economic and social disruption that would occur when imported ODS would no longer be available for industrial, commercial and consumer applications. The technology conversion under the project will allow key industries to maintain domestic and export markets. The institutional capacity for monitoring and regulatory enforcement of ODS phase-out will also be strengthened under the project. 

19. In addition to the above, a regional project is being proposed by the UNEP for providing training for Customs Officials. Since this would be a regional training activity, this is not being elaborated in this project.

RISKS AND SUSTAINABILITY

20. The project will help the Government of Azerbaijan in fulfilling its commitment for phasing out ODS through compensation to enterprises for the incremental costs incurred during the process of technology conversion. This will allow the beneficiary enterprises to be competitive both in the domestic and export markets. Sustainability of specific sub-projects has been assured through the evaluation of proposed technologies and their cost-effectiveness in relation to other alternatives ensuring the project preparation work and its review by STAP. Assistance under the project for the ozone office will enable the Government to provide a sound institutional and policy framework for the ODS phase-out programme. The Government will aim at meeting its ODS phase-out commitments by ensuring that the enterprises will eliminate their ODS consumption through a smooth project implementation. 

21. UNDP will ensure the accompanying measures stipulated in the Refrigerant Management Plan such as training activities to be carried out by the UNEP will have taken place prior to the Refrigerant Recovery and recycling Project. There are no significant issues that need to be addressed or actions to be taken, prior to implementation of the project. However, if any issues or actions need to be addressed to conform to the GEF Operational Strategy, these will be appropriately addressed

STAKEHOLDER PARTICIPATION & IMPLEMENTATION ARRANGEMENTS

22. As a part of the Country Programme development, the State Committee of Ecology and Nature Management of Azerbaijan undertook consultations with a broad spectrum of enterprises and interested parties such as other ministries, NGOs, industry associations, etc. The enterprises were provided adequate opportunities to participate in the project and to provide data necessary for the project staff to evaluate the financial viability, technological capability and eligibility.  The project will be implemented by the UNDP and/or UNEP in co-ordination with the State Committee, as mentioned in each such sub-project.

23. The subprojects designated for UNEP will be implemented from the UNEP-IE suboffice in Paris, which has extensive experience for this kind of activities under the Multilateral Fund. UNDP’s subprojects will be executed by UNDP's Montreal Protocol Unit in close coordination with UNDP’s GEF unit, and in conjunction with the United Nations Office for Project Services (UNOPS), as is the case for most of its Multilateral Fund activities.

INCREMENTAL COSTS AND PROJECT FINANCING

24. The estimated total cost of the project is US$ 8,975,515 which includes equipment, services, technical assistance, training, physical and price contingencies and net present value of incremental operating costs wherever applicable. The project will be financed by a GEF grant of US$ 6,749,515 and contributions from the beneficiaries amounting to US$ 2,226,000. 

25. All the costs are incremental in nature and calculated in accordance with the “Indicative List of Eligible Incremental Costs” adopted by the Parties to the Montreal Protocol and accepted under the GEF Operational Strategy. Consistent with GEF guidelines, the grant amount limits eligible assistance for enterprises with export markets to OECD countries. Cost-effectiveness of sub-projects are at or below the threshold levels stipulated for projects under the Multilateral Fund.

No	Component	GEF	Co-financing	Total	
1	Refrigeration - Sumyagit Conversion	2,398,000	2,190,000	4,588,000	
2	Refrigeration – Chinar	2,728,793	0	2,728,793	
3	Refrigeration - Recovery & Recycling	1,105,662	0	1,105,662	
4	Halons – Banking Center	135,160	0	135,160	
5	Technical assistance - Training of trainers	114,900	0	114,900	
6	Technical assistance - Institutional Strengthening	267,000	36,000	303,000	
TOTALS	6,749,515	2,226,000	8,975,515	

Annex 1 provides a more detailed summary of the sub-project incremental cost.

MONITORING, EVALUATION AND DISSEMINATION

26. Project monitoring will be performed by UNEP/UNDP and the cost for it is included in the budgets that are indicated in Annex-1. 

27. Standard evaluation will be performed, except in the case that an in-depth evaluation is required by the GEF whereby independent consultants would have to be hired and fielded to the country concerned. If such would be the case, consultancy fees and travel costs would have to be obtained in addition to the amounts requested herewith to cover these costs.

28. As implementing agencies for the Multilateral Fund of the Montreal Protocol, UNDP and UNEP are presently implementing ODS phase-out projects in over 60 countries. Several lessons have been learnt from experience with these projects :
•	The importance of a national phase-out policy as a basis for assuring commitment and ownership by the recipient country.
•	The value of strong linkages between the industry and the government to achieve phase-out objective.
•	The need for strengthening the institutional framework and training of the local implementation units.
•	Identifying a consistent and committed counterpart team with adequate authority and experience.
•	Strong co-ordination among key interested parties at the national, regional and enterprise levels.
•	Early and detailed attention to procurement and other execution issues.
•	Involvement of national experts with thorough local knowledge.
•	Involvement of qualified international technical specialists

29. The above lessons have been duly considered in the formulation of this project.

LIST OF ANNEXES:

1.	Incremental Cost Annex: (1 page)

2.	Logframe Matrix: (1 page)

3.	Subproject Descriptions (6 pages) for
1.	Sumgayit Compressors
2.	Chinar Domestic Refrigeration
3.	Recovery/Recycling of Refrigerants
4.	Recovery/Recycling of Halons
5.	Training of Trainers in Refrigeration
6.	Establishment of an Ozone Office

4.	STAP Roster Technical Reviews (9 pages)
1.	Sumgayit Compressors
2.	Chinar Domestic Refrigeration
3.	Recovery/Recycling of Refrigerants
4.	Recovery/Recycling of Halons

AZERBAIJAN : PROGRAMME FOR PHASING OUT OZONE DEPLETING SUBSTANCES

ANNEX-1   :    INCREMENTAL COSTS

Sub-Project/
Enterprise	Sector	Brief
Description	I.A.	ODP
(MT/y)	C. E.
(US$ per kg/y)	Incremental
Investment
Costs (US$)	Incremental
Operating
Costs (US$)	Total Project
Costs
(US$)	Enterprise
or Govt
Financing
(US$)	Proposed GEF
Financing
(US$)	
Sumyagit	RAC	Conversion of manufacturing facilities for  compressors for CFC-free refrigerants	UNDP	NA	NA	4,588,000	NA	4,588,000	2,190,000	2,398,000	
Chinar	RAC	Phase-out of CFCs in the production of domestic refrigerators	UNDP	122.4	13.04	2,728,793	NA	2,728,793	0.00	2,728,793	
National Recovery and Recycling Programme	RAC	Refrigerant recovery and recycling - demonstration of equipment	UNDP	85.0	11.90	1,105,662	NA	1,105,662	0.00	1,105,662	
Azerbaijan State Fire Department	Halons	Halon Management and Banking Center for Recovery and recycling of Halons	UNDP	100.0	1.35	135,160	NA	135,160	0.00	135,160	
State Committee of Ecology and Nature Management	RAC	Training of trainers for use of ODS-free refrigerants in maintenance and service	UNEP	NA	NA	114,900	NA	114,900	0.00	114,900	
State Committee of Ecology and Nature Management	Institutional
Technical
Assistance	Implementation of ODS phase-out programme	UNEP	NA	NA	303,000	NA	303,000	36,000	267,000	
TOTAL	307.4		8,975,515	NA	8,975,515	2,226,000	6,749,515	

KEY :   C.E. - Cost Effectiveness,   I.A. - Implementing Agency

AZERBAIJAN   :    PROGRAMME FOR PHASING OUT OZONE DEPLETING SUBSTANCES

ANNEX-2    :     PROJECT PLANNING MATRIX

PROJECT PLANNING MATRIX	
Summary	Objectively verifiable indicators	Means of Verification
(monitoring focus)	Critical Assumptions and Risks	
Objective

To assist the Azerbaijan Republic, for complying with the Montreal Protocol

1. ODS consuming sectors identified by the National Ozone Team.
2.   Production of ODS based equipment and processes
3.  Presently the country has limitations in complying with the Montreal Protocol.

1.  Survey of ODS users carried out by the National Ozone Team
2. Data on imports of ODS, reported by the Azerbaijan Government  	

Accuracy of reported data  on ODS imports and consumption	
Outcome

Phase-out of Ozone Depleting Substances by the various users

	

1. Availability of suitable technologies for the substitution of  ODS.
2.  Appropriate regulatory framework to confirm compliance.	

1. International industry and market data on technology
2.  Domestic industry and market data on ODS consumption	

Non-availability of ODS through imports by 2000, from the Russian Federation and other sources and availability of non-ODS substitutes	
Results

Elimination of 307.4 MT annually of ODS within 3 years

Information on pre-project and post-project ODS consumptions	

Data on imports of ODS through the relevant Government departments	

Accuracy of data and adherence to project schedules	
Project Components to be implemented to obtain desired results

Four technology conversion sub-projects and two technical assistance and training sub-projects

	

Installation of the necessary eequipment, processes and introduction of practices envisaged in the sub-projects	

1. Reports of vendors of equipment and processes
2. Reports of users
3. Reports of inspection and confirmation of completion by IA experts
4. Project management and evaluation reports	

1. Adequacy of the project budgets.
2. Adequacy of financing of the project

	

ANNEX-3

SUB-PROJECT SUMMARY

COUNTRY								:	Azerbaijan Republic

SUB-PROJECT REFERENCE			:	Sub-project Number 1

SUB-PROJECT TITLE					:	Conversion of refrigeration compressor manufacturing 													plant at Sumyagit Compressor Plant

SECTOR									:	Refrigeration and Air Conditioning

ODS USE IN SECTOR					:	462 MT (1996)

SUB-PROJECT IMPACT					:	No direct impact on ODS

SUB-PROJECT DURATION				:	2 years

SUB-PROJECT COSTS					:	US$  4,588,000

PROPOSED GEF FINANCING			:	US$  2,398,000

COST-EFFECTIVENESS					:	Not applicable. (no CE threshold for this sector)

IMPLEMENTING AGENCY				:	UNDP
		
CO-ORDINATING NATIONAL BODY	:	State Committee of Ecology and Nature Management

STAP REVIEW							:	Dr. L. J. M. Kuijpers

SUMMARY

Sumyagit Compressor Plant is a 100% indigenously owned enterprise manufacturing refrigeration compressors suitable for CFC-12 refrigerant. In this project, Sumyagit Compressor Plant will convert their manufacturing facilities to enable them to manufacture refrigeration compressors suitable for HFC-134a and HC-600a refrigerants. This will involve investments required to carry out changes to the existing production equipment and processes, technical assistance, testing and training. Incremental operating costs are not claimed as they are not eligible for funding by GEF.

Though the proposed conversion will not result in direct elimination of ODS in the Sumyagit Compressor Plant, this conversion will facilitate the downstream users of their compressors, such as the domestic and commercial refrigeration equipment manufacturers to eliminate the use of ODS in their production.	

ANNEX-3 (cont’d) 

SUB-PROJECT SUMMARY

COUNTRY								:	Azerbaijan Republic

SUB-PROJECT REFERENCE			:	Sub-project Number 2

SUB-PROJECT TITLE					:	Phase-out of CFCs in the manufacture of domestic 														refrigerators at Chinar

SECTOR									:	Refrigeration and Air Conditioning

ODS USE IN SECTOR					:	462 MT (1996)

SUB-PROJECT IMPACT					:	122.4 MT/y (average of 1994, 1995, 1996)

SUB-PROJECT DURATION				:	2 years

SUB-PROJECT COSTS					:	US$  2,728,793

PROPOSED GEF FINANCING			:	US$  2,728,793

COST-EFFECTIVENESS					:	US$  13.04/kg/y  (CE threshold US$ 13.76/kg/y)

IMPLEMENTING AGENCY				:	UNDP
		
CO-ORDINATING NATIONAL BODY	:	State Committee of Ecology and Nature Management

STAP REVIEW							:	Dr. G. M. F. Jeffs (Foams)
												Dr. L. J. M. Kuijpers (Refrigeration)

SUMMARY

Chinar is a 100% indigenously owned enterprise manufacturing domestic refrigerators and freezers, using CFC-11 as the blowing agent for the rigid polyurethane foam insulation for the cabinets/doors and CFC-12 as the refrigerant. In this project, Chinar will convert their manufacturing facilities to enable them to manufacture refrigerators suitable for cyclopentane as the foam blowing agent and HFC-134a as the refrigerant. The use of this refrigerant is justified in the detailed subproject description available at UNDP. This will involve investments required to carry out changes to the existing production lines, technology transfer, technical assistance, pre-production trials/testing and training. Incremental operating costs resulting from the new technology (for 6 months post-production) are calculated and presented for illustrative purposes, but are however not claimed by the enterprise.

ANNEX-3 (Cont’d)

SUB-PROJECT SUMMARY

COUNTRY								:	Azerbaijan Republic

SUB-PROJECT REFERENCE			:	Sub-project Number 3

SUB-PROJECT TITLE					:	Implementation of a National Programme for Recovery 													and Recycling of Refrigerants

SECTOR									:	Refrigeration and Air Conditioning

ODS USE IN SECTOR					:	462 MT (1996)

SUB-PROJECT IMPACT					:	85 MT/y

SUB-PROJECT DURATION				:	1 year

SUB-PROJECT COSTS					:	US$  1,105,662

PROPOSED GEF FINANCING			:	US$  1,105,662

COST-EFFECTIVENESS					:	US$  11.90/kg/y (no CE threshold for this subsector)

IMPLEMENTING AGENCY				:	UNDP
		
CO-ORDINATING NATIONAL BODY	:	State Committee of Ecology and Nature Management

STAP REVIEW							:	Dr. L. J. M. Kuijpers

SUMMARY

In this project, a comprehensive National Programme for Recovery and Recycling of refrigerants will be implemented for the Refrigeration and Air Conditioning Sector, as part of the national Refrigerant Management Plan (RMP). The project will cover investments involved in provision of 350 refrigerant recovery and recycling units to large users and 40 units to small users in the Mobile Air Conditioning (MAC) applications. These recovery and recycling units will be installed in 50 centers, to be established for this purpose, where CFC-12 will be collected. The project will also provide for holding ten training seminars for technicians performing installation, repairs and maintenance of refrigeration equipment including practical demonstration with the equipment acquired under the project, of the good practice and safety involved. The seminars will also familiarize all involved in the Refrigerant Management Plan, with the different techniques and practices for Recovery and Recycling of refrigerants. A system for monitoring (with periodic evaluation) of the quantity and quality of the CFCs recovered and recycled under this project , to ensure its success.

ANNEX-3 (Cont’d)

SUB-PROJECT SUMMARY

COUNTRY								:	Azerbaijan Republic

SUB-PROJECT REFERENCE			:	Sub-project Number 4

SUB-PROJECT TITLE					:	Halon Management and Banking Center for Recovery 													& Recycling of Halons, for the State Fire Department

SECTOR									:	Halons

ODS USE IN SECTOR					:	501 MT ODP (1996)

SUB-PROJECT IMPACT					:	100 MT/y ODP (Elimination of 3 MT of Halon-1211 													and 15 MT of Halon-2402)

SUB-PROJECT DURATION				:	2 years

SUB-PROJECT COSTS					:	US$  135,160

PROPOSED GEF FINANCING			:	US$  135,160

COST-EFFECTIVENESS					:	US$  1.35/kg/y  (CE threshold 1.48 US$/kg/y)

IMPLEMENTING AGENCY				:	UNDP
		
CO-ORDINATING NATIONAL BODY	:	State Committee of Ecology and Nature Management

STAP REVIEW							:	David Ball

SUMMARY

This project will cover the establishment of a centralized National Recovery and Recycling and Storage Center suitable for handling Halons 1211 and 2402, to be operated by the Azerbaijan State Fire Department, as an integral part of the Halon Management Plan. The State Fire Department has been allocated a site admeasuring 16 hectares, on which future fire testing and equipment proving operation plans will be constructed. The Recovering and Recycling Center will be operated in accordance with the guidelines to be developed by a nominated national agency in co-ordination with the UNDP, as part of the Azerbaijan Country Programme. A technology transfer arrangement that will provide the necessary access to the main users of halons, to the the technical assistance for introduction of new alternatives, will be implemented. To complement the function and planning of the recovered halon, a survey of halon use in key market sectors will be conducted, that will include an instructional workshop, will be carried out.	
ANNEX-3 (Cont’d)

SUB-PROJECT SUMMARY

COUNTRY								:	Azerbaijan Republic

SUB-PROJECT REFERENCE			:	Sub-project Number 5

SUB-PROJECT TITLE					:	Training of Trainers in Refrigeration

SECTOR									:	Refrigeration and Air Conditioning

ODS USE IN SECTOR					:	462 MT (1996)

SUB-PROJECT IMPACT					:	No direct impact on ODS

SUB-PROJECT DURATION				:	1 year

SUB-PROJECT COSTS					:	US$  114,900

PROPOSED GEF FINANCING			:	US$  114,900

COST-EFFECTIVENESS					:	Not applicable (no CE threshold for training project)

IMPLEMENTING AGENCY				:	UNEP
		
CO-ORDINATING NATIONAL BODY	:	State Committee of Ecology and Nature Management

STAP REVIEW							:	Not applicable

SUMMARY

This project will provide technical information and training to maintenance, service and repair personnel in the Refrigeration and Air Conditioning Sector, in order to reduce ODS consumption during service of refrigeration equipment. In order to achieve the objectives as identified in the Country Programme Action Plan and the Refrigerant Management Plan, professional training for hands-on service, maintenance and repair personnel is essential. 

The servicing of refrigeration equipment is a large user sector in Azerbaijan, which accounts for 449 MT of ODS (or about 97% of the total sectoral consumption). Thus this training project for refrigeration technicians is critical to the success of the ODS phase-out efforts in Azerbaijan.

ANNEX-3 (Cont’d)

SUB-PROJECT SUMMARY

COUNTRY								:	Azerbaijan Republic

SUB-PROJECT REFERENCE			:	Sub-project Number 6

SUB-PROJECT TITLE					:	Institutional Strengthening - Establishment of a National 												Ozone Office

SECTOR									:	All Sectors

ODS USE IN SECTOR					:	966 MT ODP (1996)

SUB-PROJECT IMPACT					:	Strengthening of the national institutional structure for 													co-ordination and monitoring of ODS phase-out in 														accordance with the Country Programme

SUB-PROJECT DURATION				:	3 years

SUB-PROJECT COSTS					:	US$  303,000

PROPOSED GEF FINANCING			:	US$  267,000

COST-EFFECTIVENESS					:	Not applicable (no CE threshold for inst. Strengthening)

IMPLEMENTING AGENCY				:	UNEP
		
CO-ORDINATING NATIONAL BODY	:	State Committee of Ecology and Nature Management

STAP REVIEW							:	Not Applicable

SUMMARY

The State Committee of Ecology and Nature Management Control is responsible for matters pertaining to the Vienna Convention, the Montreal Protocol (and the London and Copenhagen Amendments thereof). Currently, the human and technological resources available to the Committee to address Ozone issues are limited, which becomes a significant handicap for implementation of projects and strategies formulated as part of the Country Programme and the Refrigerant Management Plan, to ohase-out ODS in Azerbaijan. The current staff is inadequate for effectively monitoring and reporting on the ODS consumption in the country. The limited institutional capacity therefore inhibits the Committee’s ability to meet the obligations of the Montreal Protocol.

This project will strengthen the national institutional capacity to effectively co-ordinate and administer the actions outlined in the Country Programme and the Refrigerant Management Plan.