Public Disclosure Copy The World Bank Implementation Status & Results Report Montreal Protocol Hydrochlorofluorocarbons (HCFC) Phase-out Project (P129397) Montreal Protocol Hydrochlorofluorocarbons (HCFC) Phase-out Project (P129397) LATIN AMERICA AND CARIBBEAN | Argentina | Environment & Natural Resources Global Practice | Montreal Protocol | Specific Investment Loan | FY 2014 | Seq No: 6 | ARCHIVED on 08-Oct-2016 | ISR24118 | Implementing Agencies: Ministry of Production Key Dates Key Project Dates Bank Approval Date:30-Jul-2013 Effectiveness Date:30-Jan-2015 Planned Mid Term Review Date:25-Apr-2016 Actual Mid-Term Review Date:16-Aug-2016 Original Closing Date:30-Apr-2021 Revised Closing Date:30-Apr-2021 Global Development Objectives Global Environmental Objective (from Project Appraisal Document) The project development objective is to support Argentina in phasing out controlled ozone-depleting substances in accordance with the country's obligations under the Montreal Protocol. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Name Component 1: HCFC Phase-out at Mabe Argentina S.A.:(Cost $0.84 M) Component 2: CFC Replacement in Chillers:(Cost $0.95 M) Component 3: Technical Assistance:(Cost $0.07 M) Component 4: Project Management:(Cost $0.05 M) Component 5: Foam Sector Plan for HCFC Phase-out (Phase II) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of GEO  Moderately Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate 10/8/2016 Public Disclosure Copy Page 1 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Montreal Protocol Hydrochlorofluorocarbons (HCFC) Phase-out Project (P129397) Implementation Status and Key Decisions Progress towards achievement of the Project’s Global Environmental Objective (GEO) is upgraded to Satisfactory as (i) the Project has successfully completed its contribution to Argentina’s compliance with its Montreal Protocol obligations under Phase I of the national HCFC Phase-out Management Plan (HPMP): Component 1 on the Mabe Argentina S.A. conversion from HCFC to hydrocarbon was completed in April, 2015. Component 1 relied heavily on retroactive financing and Mabe got fully reimbursed and the subproject completed at the end of March, 2016; and (ii) the Executive Committee of the Multilateral Fund for Implementation of the Montreal Protocol (MLF) approved the Bank request for preparatory funding for Component 5 on a Foam Sector Plan (FSP) in May 2016; the Project contribution to the HCFC phase-out under the HPMP Phase II. The FSP is expected to phase out HCFC consumption at the sector level, targeting a large number of small and medium enterprises (SMEs). The FSP preparation was launched through a public event organized at the Ministry of Production on August 16, 2016 as part of the mid-term review (MTR) mission of the Project. More than 40 representatives of the targeted industrial sector and other involved actors took part in the event where the implied phase-out targets were discussed and the available technological alternatives presented. It was agreed the FSP is expected to address bigger HCFC consumers through individual subprojects, and minor HCFC consumers through an umbrella approach implemented in collaboration with system houses that provide foam-related products and services to different types and sizes of foam enterprises. Under the umbrella modality, eligible foam enterprises are expected to choose the system house through which they participate in the Project. The FSP is expected to be ready for GoA endorsement in December 2016 so that it can be submitted to MLF approval after mid-January, 2017 as part of the national HPMP Phase II proposal. Component 2 is advancing implementation of the first CFC chiller conversion of two units of 350 tons of refrigeration (TR) at the health institute Fundacion Favaloro, and a second Sub-grant Agreement was recently signed with a consortium of building owners on a 400 TR chiller. The implementation progress requires further boosting and the Project MTR mission agreed upon a revised implementation strategy for Component 2 that raises the applicable subsidy from 20 percent to the maximum 33 percent of the cost of the new chiller equipment allowed by the applicable MLF rules. Component 3 on periodic monitoring and reporting on FIASA S.A., the only HCFC producing enterprise in Argentina, started implementation in February, 2016. Thus far, a report on retroactive monitoring of the FIASA HCFC-22 production during 2015 and the monitoring reports on the 2016 first and second quarter have been delivered with satisfactory results. Based on said reports, FIASA complies with the prevailing HCFC-22 production limits for the country. Regarding Project management (Component 4), UEPRO has delivered key tasks such as financial management in a satisfactory manner. The new Government authorities have strengthened the implementation arrangements of OPROZ, the national Ozone Unit composed of the Ministry of Environment and Sustainable Development (MAyDS), Ministry of Production and Ministry of Foreign Affairs and Worship, by creating a Director level working group included in its founding document but thus far never implemented in practice. Within the Secretariat of Industry and Services, UEPRO now forms a part of a National Directory of Sustainable Industrial Development that addresses international environmental conventions among its three principal pillars of work. These developments facilitate broadening the Project work in terms of dissemination of the Montreal Protocol agenda and its impact on relevant productive sectors. 10/8/2016 Public Disclosure Copy Page 2 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Montreal Protocol Hydrochlorofluorocarbons (HCFC) Phase-out Project (P129397) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Global Environmental Objective Indicators PHINDGEOTBL  Initial foam sector HCFC consumption reduction(Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 167.80 167.80 Date 02-Dec-2013 -- 08-Apr-2015 31-Dec-2014 Comments HCFC phase-out under Component 1 was successfully completed in April, 2015. Despite the remarkable delay suffered by the Project effectiveness, the result suffered only a slight delay as the original target deadline for the phase-out was December, 2014. Said delay did not affect Argentina's compliance with its Montreal Protocol obligations. 10/8/2016 Public Disclosure Copy Page 3 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Montreal Protocol Hydrochlorofluorocarbons (HCFC) Phase-out Project (P129397) PHINDGEOTBL  CO2e emissions(Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 121655.00 216655.00 Date 02-Dec-2013 -- 28-Sep-2016 31-Dec-2017 Comments The associated direct climate benefit from conversion at Mabe S.A. represents 121,655 tCO2e per year after the respective HCFC phaseout completion that took place in April 2015. The remaining target relates with the planned chiller conversions to eliminate residual CFC consumption used as refrigerant in the servicing of older chillers. The Project target is to subsidize the conversion of an estimated 20 chillers to CFC-free, more energy-efficient models, resulting in an associated reduction of app. 20 t of CFC-11. This will represent 95,000 tCO2e per year upon completion, based only on GWP of the refrigerant; without calculating associated energy efficiency gains. The first Sub-grant Agreement on conversion of two CFC chillers with capacity of 340 TR each and the second on conversion of a CFC chiller with capacity of 400 TR are under implementation. The respective tCO2e emission reductions will be calculated upon completed execution of the chiller conversions. Overall Comments Intermediate Results Indicators PHINDIRITBL  HCFC-141b consumption phase-out at Mabe Argentina S.A. (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 167.80 167.80 167.80 Date 02-Dec-2013 08-Apr-2015 08-Apr-2015 31-Dec-2014 Comments HCFC phase-out under Component 1 was successfully completed in April, 2015. Despite the remarkable delay suffered by the Project effectiveness, the result suffered only a slight delay as the original target deadline for the phase-out was December, 2014. Said delay did not affect Argentina's compliance with its Montreal Protocol obligations. 10/8/2016 Public Disclosure Copy Page 4 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Montreal Protocol Hydrochlorofluorocarbons (HCFC) Phase-out Project (P129397) PHINDIRITBL  Replaced and destroyed CFC-chillers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 02-Dec-2013 09-Feb-2016 28-Sep-2016 31-Dec-2017 Comments The two first Sub-grant Agreements that cover three CFC chiller conversions (2 x 350 tons of refrigeration and 400 TR) are under implementation and expected to be finalized by the end of October 2016. The Project mid-term review mission discussed and agreed upon a revised strategy for Component 2 implementation. The initial 20 percent chiller conversion subsidy on the price of the new equipment was increased to the maximum 33 percent allowed by the applicable MLF decision. PHINDIRITBL  Compliance with the monitoring and control protocol on HCFC-22 production (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 02-Dec-2013 09-Feb-2016 28-Sep-2016 31-Dec-2015 Comments A report on retroactive monitoring of the FIASA HCFC-22 production during 2015 and the monitoring reports on the 2016 first and second quarter have been delivered with satisfactory results. Based on said reports, FIASA complies with the prevailing HCFC-22 production limits for the country. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P129397 TF-14897 Effective USD 1.91 1.91 0.00 1.08 0.83 57% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P129397 TF-14897 Effective 30-Jul-2013 19-Dec-2014 30-Jan-2015 30-Apr-2021 30-Apr-2021 10/8/2016 Public Disclosure Copy Page 5 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Montreal Protocol Hydrochlorofluorocarbons (HCFC) Phase-out Project (P129397) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/8/2016 Public Disclosure Copy Page 6 of 6