AGENDA ITEM 6a REVISED CONSOLIDATED BUSINESS PLAN OF

AGENDA ITEM 6(a): REVISED CONSOLIDATED BUSINESS PLAN OF THE MULTILATERAL FUND FOR THE YEARS 2010 -2014

Recommendations from UNEP/Oz. L. Pro/Ex. Com/61/7 The Executive Committee may wish to: (a) Note the document entitled “Consolidated Revised Business plan for the years 2010‑ 2014” as contained in document UNEP/Oz. L. Pro/Ex. Com/61/7, as adjusted [by the Fund Secretariat]; (a)(bis) [To recognize that the calculated starting points used as a reference (for the tonnages addressed) in the business plans are for planning purposes and that the final starting points may differ once the baseline is established. ] (b) Consider whether further adjustment to the consolidated business plan is warranted on the basis of cost-effectiveness; and (To be replaced by following decisions) 2

Tonnage China tonnage based on allocation provided by China; pro-rated from 1, 814 ODP tonnes submitted by China to the maximum calculated reduction level (1, 776 ODP tonnes) as agreed by the agencies for sub -sectoral distributions. Bilateral agencies were invited to attend since they had zero tonnages for HCFC investment projects that would have resulted in a zero value after application of cost effectiveness. Value for servicing sector for non-LVCs based on tonnage as proposed multiplied by $4. 5/mt of HCFC 22 (UNEP activities assumed to be servicing based on tonnage provided). Tonnage from approved projects and projects for countries that did not exceed the maximum calculated reduction level were maintained. Remaining tonnage after accounting for servicing sector and approved projects was pro-rated by agency to remain within calculated reduction level. Tonnage was applied to individual entries based scheduled submissions. Cost-effectiveness values applied to tonnages for foam and refrigeration sectors. No changes for fire protection or solvent sector except tonnage and values for China for Japan and UNDP. Proposed decision: For countries for which ODP values in the business plans submitted by the bilateral and implementing agencies exceed the calculated starting point, to reduce the total ODP to reflect the calculated starting points per decision 60/5(p)(iv) and pro-rata by agency. 3

Notes: Includes demonstration projects since tonnage is deducted from starting point. No special consideration given to ensure 20 per cent bilateral allocation. China XPS foam project - one tonne for Japan (from UNIDO’s tonnage), 60 tonnes to Germany and the balance pro-rated for UNDP and UNIDO. Colombia – Canada agreed to zero tonnage meaning zero value. Colombia – Tonnage pro-rated by value between UNEP and Japan. Thailand – Tonnage pro-rated by value between the World Bank and Japan Jordan and Pakistan had approved projects that exceeded calculated baseline (no tonnage). HPMP for Sri Lanka (the World Bank’s entry was removed). Burundi, Eritrea, and Iraq, TPMPs or NPPs approved in 2008 or 2009. Proposed decision: (a) To reduce HCFC investment component tonnage for Colombia in Canada’s business plan to zero tonnage; (b) To remove the HPMP for Sri Lanka from the World Bank’s business plan; and (c) To maintain TPMP and NPP entries for activities initially approved in 2008 or 2009 for Burundi, Eritrea and Iraq. 4

LVCs Tonnage For values that did not exceed 2020 servicing sector: no changes For values that exceeded 2020: For HCFC-141 b activities, no changes to tonnage; calculated cost effectiveness foam applied to these tonnages. For non-HCFC-141 b in LVCs that exceeded 2020 servicing sector values, value reduced to 2020 levels, tonnage reduction based on 20 per cent reduction from calculated baseline. For one agency with more than one entry, resulting values and tonnage prorated to scheduled submissions. For two agencies, resulting values and tonnage shared equally and pro-rated to scheduled submissions. For HPMPs approved, or submitted to the 61 st Meeting, values and tonnages applied per approval or proposed agreement (Maldives; the Former Yugoslav Republic of Macedonia, Cambodia; Croatia and Ghana) No additional decision required. 5

Cost-effectiveness Proposed decision: To apply the cost-effectiveness values for the foam and refrigeration sectors in the category “Combined Replenishment Study and Decision 60/44(f)” in UNEP/Oz. L. Pro/Ex. Com/61/7/Corr. 1 (Table 1) plus a 25 per cent climate premium per decision 60/44(f)(iv) including agency fees in ODP values, to the tonnages in the business plans as adjusted by decision … above for these sectors. 6

HCFC INVESTMENT PROJECTS AND BACKLOADING 7

Backloading Only investment projects for HCFCs included. Already approved projects not considered. To address concerns raised by UNIDO, no backloading applied to LVCs with investment projects. To address concerns raised by UNDP, the overall ratio of reductions to values in the business plans for the years 2010 and 2011 applied equally to all relevant bilateral and implementing agencies and then for the 2012 -2014 triennium prorated to each entry. Proposed decision: To allocate US $22, 190, 000 included in the adjusted business plans of the bilateral and implementing agencies from the 2010 and 2011 business plans for HCFC investment projects in non-LVC countries that have not yet been approved, based on the overall ratio of reductions to values in the business plans for the years 2010 and 2011 applied equally to all relevant bilateral and implementing agencies for the 2012 -2014 triennium as pro-rated by entry. 8

Recommendations from UNEP/Oz. L. Pro/Ex. Com/61/7 (cont’d) The Executive Committee may wish to: [(c) Decide that only those business plans that fully implement Executive Committee decisions may be submitted to the Executive Committee for its consideration. ] 9