Document of
The World Bank
Report No: 56478 v1
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
INDIA: CTC SECTOR PLAN IMPLEMENTATION PROJECT
OTF GRANT NUMBER TF053458
DECEMBER 10, 2004
TO THE
MINISTRY OF ENVIRONMENT AND FORESTS
GOVERNMENT OF INDIA
August 30, 2010
1
ABBREVIATIONS AND ACRONYMS
DEA
GOI
PDO
CSL
CFC
CTC
CY
DGFT
DVAC DV
GACL
ExCom
IDBI
MIS
MOA
MoEF
MP
MLF
MT Metric Ton
OC
OS
ODP
ODS
OTF
PIM
PMTA
PMU
SRFL
TA
ToR
UNDP
UNEP
Department of Economic Affairs
Government of India
Project Development Objectives
Chemplast Sanmar Limited
Chlorofluorocarbon, an ozone depleting substance
Carbon Tetrachloride, an ozone depleting substance
Calendar Year
Directorate-General of Foreign Trade
Acid Chloride
Gujarat Alkalies and Chemicals Limited
Executive Committee of the Multilateral Fund
Industrial Development Bank of India Limited
Management Information System
Memorandum of Agreement
Ministry of Environment and Forests
Montreal Protocol on Substances that Deplete the Ozone Layer
Multilateral Fund for the Implementation of the Montreal Protocol
A unit of measure equivalent to 1000 kilograms
Ozone Cell of India's Ministry of Environment and Forests
Ozone Secretariat of United Nations Environment Programme
Ozone Depleting Potential
Ozone Depleting Substance
Ozone Projects Trust Fund
Project Implementation Manual
Project Management and Technical Assistance
Project Management Unit
SRF Limited
Technical Assistance
Terms of Reference
United Nations Development Programme
United Nations Environment Programme
Vice President:
Country Director:
Acting Sector Manager:
Task Team Leader:
Isabel M. Guerrero
N. Roberto Zagha
Gajanand Pathmanathan
Ruma Tavorath
2
COUNTRY
INDIA: CTC SECTOR PLAN IMPLEMENTATION PROJECT
CONTENTS
Page
SUMMARY .................................................................................................................................. 4
PROJECT STATUS................................................................................................................... 4
PROPOSED CHANGES ........................................................................................................... 4
ANNEX 2: REALLOCATION OF PROCEEDS ................................................................ 5
ANNEX 3: EXTENSION OF CLOSING DATE ......................................................................... 6
3
CTC SECTOR PLAN IMPLEMENTATION PROJECT
RESTRUCTURING PAPER
SUMMARY
This Project Restructuring Paper seeks the approval of the Regional Vice President to
introduce a change in the CTC Phase-out Sector Plan Implementation Project (ODSIV).
The proposed changes are as follows:
 Extension of project closing date by 27 months from September 30, 2010 to
December 31, 2012
 Reallocation of funds between the disbursement categories under the Technical
Assistance (TA) component being implemented by the Ministry of Environment
and Forests (MOEF).
PROJECT STATUS
Implementation progress of the project has consistently been satisfactory. The project has
met its Development Objective of supporting India’s objective to reduce its Protocolcontrolled CTC production and consumption level to 15% of its baseline level during
2005, and bring it down to zero by January 1, 2010. The policy and financial incentive
structure to support CTC phase-out and the monitoring, verification, audit and
enforcement mechanisms, as originally designed, were implemented in a satisfactory
manner.
The Performance Based Disbursement mechanism has facilitated meeting of CTC phaseout targets in production and consumption sectors and has ensured India’s continuing
compliance under the Montreal Protocol. Incremental cost funding to CTC-using
enterprises in the consumption sector, resulted in the phase-out of about 2,000 ODP tons
of CTC from 30 beneficiary enterprises. Annual audits of production and consumption by
CTC producers and users were undertaken by the Bank in accordance with the
Monitoring and Verification Protocol.
PROPOSED CHANGES
4
ANNEX 2:
Reallocation of Proceeds
_______________________________________________________________________
1. Proceeds for INDIA: CTC SECTOR PLAN IMPLEMENTATION PROJECT, (TF
53458, P085345) will be reallocated as follow:
Category of Expenditure
Current
Revised
(1) Agency
Service fees
(2) Sub Grants
(3) Goods
including
equipment for
Part C of the
Project
(4) Consultancy,
Training &
Workshops
(1) Agency
Service fees
(2) Sub Grants
(3) Goods
including
equipment for
Part C of the
Project
(4)
Consultancy,
Training &
Workshops
(5) Incremental
(5) Incremental
Operating costs
Operating costs
TOTAL
2.
Allocation
Current
Revised
Figures in US$
% of Financing
Current
Revised
1,040,000.00
1,040,000.00
1.96
1.96
50,000,000.00
50,000,000.00
94.27
94.27
23,000.00
60,000.00
0.04
0.11
992,000.00
1,005,000.00
1.87
1.90
985,000.00
935,000.00
1.86
1.76
53,040,000.00
53,040,000.00
100.00
100.00
Summary of project implementation (financial) progress:
The Bank has disbursed USD 38.629 million (i.e. 72.83%) as of August 30, 2010. The
project has submitted an acceptable Interim Unaudited Financial Reports (IUFR) for the
quarter ended March 31, 2010.The audit for the financial year 2009-10 has already
commenced and the audit report is expected to be received by the Bank before the due
date i.e. September 30, 2010.
3.
The proposed reallocation will support training of customs, state and pollution
control board officials, as well as outreach and dissemination activities. Although some
funds had originally been allocated for these activities, reallocation will ensure sufficient
funds will be available for them through project completion.
5
ANNEX 3:
Extension of Closing Date
_______________________________________________________________________
1. The closing date for INDIA: CTC SECTOR PLAN IMPLEMENTATION PROJECT,
(TF 53458, P085345) will be extended from September 30, 2010 until December 31,
2012.
2. Implementation progress of the project has consistently been satisfactory. It has met
its Development Objective of supporting India’s objective to reduce its Protocolcontrolled CTC production and consumption level to 15% of its baseline level during
2005, and complete this adjustment by January 1, 2010. The policy and financial
incentive structure to support CTC phase-out and the monitoring, verification, audit
and enforcement mechanisms, as originally designed, were implemented in a
satisfactory manner. India has met its CTC phase-out targets in production and
consumption sectors and project objectives continue to be relevant and achievable.
3.
The proposed extension is necessary to utilize the balance of funds under the
Technical Assistance Component. The large undisbursed balance of funds in this
component is due to the fact that many of the project costs were subsumed under the
parallel project on CFC production phase-out. These costs included:
 operational costs of the Project Management Unit (PMU), which manages the
implementation of both the projects
 training and workshops for Government and customs officials and other
stakeholders, which included dissemination of information on all the key ODS –
which included CTC.
The PMU at Ozone Cell of MOEF will continue its outreach program to create awareness
and monitor the production and use of CTC as it will continue to be produced as a
byproduct and its usage in feedstock purposes will also continue beyond January 1, 2010.
State governments will be informed of the need to disseminate information on CTC
phase-out to the public. The Ozone Cell will develop a monitoring framework and handover protocol which will facilitate in maintaining this oversight and fulfilling its reporting
requirement to the Executive Committee.
4.
This will be the first extension of the project.
6