jordan HCFC PHASE-OUT PROJECT (ODS III) TABLE OF Contents Page I. STRATEGIC CONTEXT 9 A. Country Context 9 B. Sectoral and Institutional Context 10 C. Higher Level Objectives to which the Project Contributes 12 II. PROJECT DEVELOPMENT OBJECTIVES 12 A. PDO 12 B. Project Beneficiaries 12 C. PDO Level Results Indicators 13 III. PROJECT DESCRIPTION 13 A. Project Components 13 B. Project Financing 15 Lending Instrument 15 Project Cost and Financing 15 IV. IMPLEMENTATION 16 A. Institutional and Implementation Arrangements 16 B. Results Monitoring and Evaluation 17 C. Sustainability 17 V. KEY RISKS AND MITIGATION MEASURES 18 A. Risk Ratings Summary Table 18 B. Overall Risk Rating 18 VI. APPRAISAL SUMMARY 19 A. Economic and Financial Analyses 19 B. Technical 20 C. Financial Management 21 D. Procurement 22 E. Social (including Safeguards) 22 F. Environment (including Safeguards) 22 Annex 1: Results Framework and Monitoring 24 Annex 2: Detailed Project Description 27 Annex 3: Implementation 37 Annex 4: Operational Risk Assessment Framework (ORAF) 51 Annex 5: Implementation Support Plan 55 Annex 6: Economic Analysis 56 Annex 7: Agreement between the Government of Jordan and the Executive Committee of the Multilateral Fund for the Reduction in Consumption of HCFCs 59 Appendix 1-A: The Substances 63 Appendix 2-A: The Targets, and Funding 64 Appendix 3-A: Funding Approval Schedule 65 Appendix 4-A: Format of Implementation Reports and 66 Appendix 5-A: Monitoring Institutions and Roles 67 Appendix 6-A: Role of The Lead Implementing Agency 68 Appendix 6-B: Role of the Cooperating Implementing Agency 69
be consumed Montreal Protocol and MLF obligations and provisions are implemented and fulfilled Percentage 0.00 100.00 100.00 100.00 100.00 100.00 annually Article 7 and Country Program reporting National Ozone Unit . Intermediate Results Indicators Cumulative Target Values Data Source/ Responsibility for Indicator Name Core Unit of Measure Baseline YR1 YR2 YR3 YR4 End Target Frequency Methodology Data Collection Number of subproject agreement contracts signed with AC manufacturers Text 0 1 3 3 3 3 MIS is NOU and progress reports NOU Cumulative HCFC-22 consumption phased out in the AC sector ODP tons 0 0 0 1.1 7.8 7.8 3 AC enterprises NOU Implementation of key policies and regulations for HCFC-22 Text no policy -- -- -- -- Ban on use of HCFC-22 policy in AC and ban on MIS in NOU and progress reports NOU out
imports of based AC units Completion of technical assistance activities and satisfactory sector plan management Percentage 0.00 100.00 100.00 100.00 100.00 100.00 Annually PMU/NOU Compliance with project reporting requirements Percentage 0.00 100.00 10.00 100.00 100.00 100.00 and ongoing Overall project, including all components NOU Institutional and policy measures for ozone protection introduced and/or strengthened Text No or measures to control new ODS phase-out HCFC import quota system HCFC import quota system HCFC quota and methyl bromide phase-out measures HCFC import quota system HCFC import quota ongoing MIS in NOU and progress report NOU, TA contractors and related partners .
Capacity Rating Moderate Description: Risk Management: The project will contribute to the Government’s efforts to meet the phase-out obligations under the Montreal Protocol in 2013 through 2017 however the World Bank is not the lead agency working on Jordan’s overall HCFC Phase-out Management Plan which sets the policy framework for compliance. Limited FM capacity of implementing agency. Limited procurement capacity. The main policy instrument for controlling HCFC imports – the import quota system - will be established by MoE by January 2013. The Bank will work with the Government through the ongoing Institutional Strengthening component of ODS II in 2012 to ensure it is on its way to putting the system into place. A part time Financial Consultant will be appointed to assist the NOU Financial Officer who will be seconded from the MOE Finance Department. A procurement consultant will be appointed to handle procurement activities. She/he will be seconded by a MOE procurement officer. Training on procurement guidelines will be provided. Resp: Client Status: Stage: Recurrent: Due Date: 31-Dec-2012 Frequency: Governance Rating Low Description: The NOU has nearly 20 years of experience in overseeing MLF projects and approximately 10 years' experience in managing implementation and there have been no governance issues to date. This is despite a frequent turnover in the MoEnv which houses the NOU. Funds are not utilized, by recipients, in accordance with the terms and conditions stipulated in the sub-grant agreements. Risk Management: The Bank project team will work with the Recipient to ensure that there are structures and institutions in place within the NOU to maintain its excellent track record in future years. Resp: Both Status: In Stage: Recurrent: Due Date: Frequency: Risk Management: Continuous implementation monitoring by the NOU, only one time advance payment to recipients against ban guarantees, and IFRs will reflect the financial status of sub-grants. Resp: Client Status: Not Yet Due Stage: Recurrent: Due Date: Frequency: Project Risks Design Rating Moderate Description: Project design partly depends on programs and actions beyond the financing boundaries of the Risk Management: Consultations will be initiated immediately between industry, MoE and agencies responsible for product labeling as well as bilateral and multilateral agencies that are undertaking related activities (standards and labeling, product testing, etc.) in order to synchronize work on the supply and demand sides.
The Project funding is a grant stemming from the Montreal Protocol’s Multilateral Fund (MLF) that will be a provided to the country in several tranches depending on Jordan’s ability to meet annual HCFC consumption targets. In its 20+ year history, the MLF has always been replenished in a manner allowing commitments to countries to be met. However, because of the recent global financial crisis and particularly difficulties experienced in Europe, future contributions may suffer. The Bank will ensure that the MLF Executive Committee is kept fully up to date with Jordan’s rate of disbursement and its financing needs throughout the next four years and communicate experience on the ground in terms of actual equipment and services costs to allow the Committee to make informed decisions on the level of future grants in similar sectors. Resp: Bank Status: Not Yet Due Stage: Recurrent: Due Date: Frequency: Delivery Monitoring and Sustainability Rating Low Description: Risk Management: Reverse retrofit to HCFC after conversion completed as HCFCs are still available in Jordan and could undermine the PDO of the Project. MoEnv plans on imposing a ban on the use of HCFCs in the AC manufacturing sector. The NOU will need to monitor the use of HCFCs in all remaining sectors to ensure there is no diversion to the AC sector. The project will promote compliance with the highest grade in the new labeling requirement for residential air-conditioners. MoEnv will work with MEMR and other agencies to put into place incentive mechanisms to stimulate demand for EE products Resp: Client Status: Not Yet Due Stage: Recurrent: Due Date: 31-Dec-2016 Frequency: Overall Risk Implementation Risk Rating: Moderate Description: The project is not complicated on a technical level. However, in terms of ensuring uptake of the converted production and non-HCFC based air-conditioning, the coordination, partnerships and policy/regulatory measures required must be well-planned and executed. This in turn impacts the sustainability of project outcomes.