The World Bank Report No: ISR16503 Implementation Status & Results Indonesia HCFC Phase-out in the PU Foam Sector Project (P115763) Public Disclosure Copy Operation Name: HCFC Phase-out in the PU Foam Sector Project (P115763) Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 01-Dec-2014 Country: Indonesia Approval FY: 2014 Product Line: Montreal Protocol Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Environment Key Dates Board Approval Date 11-Jul-2013 Original Closing Date 30-Jun-2016 Planned Mid Term Review Date Last Archived ISR Date 14-May-2014 Effectiveness Date 11-Jul-2013 Revised Closing Date 30-Jun-2016 Actual Mid Term Review Date Global Environmental Objectives Global Environmental Objective (from Project Appraisal Document) The Project Development Objective is to reduce the consumption of HCFC-141b in the foam sector in Indonesia in order to contribute to the government's effort to comply with Indonesia's HCFC phase-out obligations under the Montreal Protocol. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Investment in HCFC-141b Consumption Reductions in the PU Foam Sector 3.37 Technical Assistance and Policy Support 0.13 Project Management 0.13 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of GEO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The overall project is making good progress despite some administrative issues, which have affected disbursement (now resolved) and hiring of consultants by the National Ozone Unit (NOU). The quota system for HCFC imports is in place and, starting on 1 January 2015, the use of HCFC in foam applications covered by the project is no longer allowed, and Indonesia's import (consumption) of HCFC-141b is expected to meet its Montreal Protocol compliance obligation of no more than 81.55 ODP tons in 2015. Foam Technology Replacement Agreements with the 3 biggest HCFC using foam companies were signed in later 2013, covering well over 50 percent of the reduction in HCFC use to be achieved by the project. Two of the three companies have replaced their technology and the third company will completed the process in January 2015, and disbursements (almost half the grant Page 1 of 6 The World Bank Report No: ISR16503 amount) will be made accordingly. 12 small and mid-size foam companies have submitted Foam Technology Replacement Proposals, and conversion agreements have or will be signed with them very soon. Of those companies, one small foam producer has already installed and tested the equipment for conversion to HFC-245fa, and three other smaller producers are proceeding with their conversion proposals. Out of the total of 26 companies, 5 have not yet decided and 6 companies (representing 13% of covered HCFC141b in 2010) have declined to participate (but must still comply with the ban of HCFC use). Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Indonesia North Sumatra Medan ✔ Indonesia Daerah Istimewa Yogyakarta Daerah Istimewa Yogyakarta ✔ Indonesia Banten Tangerang ✔ Indonesia East Java Surabaya ✔ Indonesia South Sulawesi Provinsi Sulawesi Selatan ✔ Indonesia East Java Malang ✔ Indonesia West Java West Java ✔ Indonesia Jakarta Raya Jakarta ✔ Indonesia West Java Bekasi ✔ Indonesia West Java Bogor ✔ Indonesia Central Java Semarang ✔ Results Global Environmental Objective Indicators Public Disclosure Copy Page 2 of 6 The World Bank Report No: ISR16503 Indicator Name Core Unit of Measure Baseline Current End Target Agreed 2013 and 2015 ODP targets for Metric ton Value 90.61 117.00 81.55 HCFC141b imports for the foam sector met Date 31-Dec-2010 31-Oct-2014 31-Dec-2015 Public Disclosure Copy Comments Average of 2009-2010 The current value is the Target quota for 2015 HCFC-141b imports. (No Indonesian HCFC import HCFC-141b imports for use quota in place prior to 2013.) quota for 2014 and includes by the foam sector. HCFC141b used in the commercial refrigeration sector (UNDP project), whereas the target HCFC141b quota covers only the PU foam sector (addressed by the World Bank and UNIDO projects). Actual 2013 HCFC141b imports stood at 1300 MT (=143 ODP tons). The 2014 HCFC141b import quota is 1070 MT (=117 ODP tons), well below the (calculated) limit of 133 ODP tons. The quota for 2015 has not been set yet. See comment in the “Key Issues” section. Avoided CO2e emissions as a result of the Metric ton Value 0.00 0.00 290000.00 conversion to low GWP technology for the PU Date 01-Apr-2013 31-Oct-2014 31-Dec-2015 foam sector Comments The actual value will be determined at the end of the project. Intermediate Results Indicators Public Disclosure Copy Page 3 of 6 The World Bank Report No: ISR16503 Indicator Name Core Unit of Measure Baseline Current End Target Agreements with beneficiaries signed Number Value 0.00 3.00 26.00 Date 31-Mar-2013 31-Oct-2014 31-Dec-2015 Public Disclosure Copy Comments Agreements with the 3 big foam companies were signed in late 2013, representing more than 50% of the HCFC phase-out targeted by theproject. Agreements with 12 small and medium companies will be signed soon. 5 companies are currently undecided and 6 small companies have declined to participate at this time. It is currently not know whether and by how much the 2014 cumulative target of 22 agreements will be missed. Issuance of annual import quota Yes/No Value No Yes Yes Date 31-Mar-2013 31-Oct-2014 31-Dec-2015 Comments The 2014 HCFC141b import quota was set at 1070 MT (=117 ODP tons). The quota for 2015 has not yet been set. TA activities Number Value 0.00 8.00 15.00 Date 31-Mar-2013 31-Oct-2014 31-Dec-2015 Comments The NOU has carried out the planned awareness events and technical meetings. The cumulative target by end 2014 is 10 TA activities. Public Disclosure Copy Compliance with reporting requirements Percentage Value 0.00 75.00 100.00 Date 31-Mar-2013 31-Oct-2014 31-Dec-2015 Comments The first semi-annual progress reporting (8/2013-6/2014) is delayed to end November. Required financial reports were submitted. Thetarget is 100% Page 4 of 6 The World Bank Report No: ISR16503 compliance with reporting obligations. Public Disclosure Copy Data on Financial Performance (as of 22-Apr-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P115763 TF-14673 Effective 11-Jul-2013 11-Jul-2013 11-Jul-2013 30-Jun-2016 30-Jun-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P115763 TF-14673 Effective USD 2.71 2.71 0.00 0.44 2.27 16.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation As anticipated in the PAD, preparation of Stage 2 of the HCFC Phase-out Management Plan (HPMP) for the foam sector will start in January 2015. Restructuring History There has been no restructuring to date. Related Projects Page 5 of 6 The World Bank Report No: ISR16503 There are no related projects. Public Disclosure Copy Public Disclosure Copy Page 6 of 6