Reporting Agency: United Nations Development Programme Country: Armenia YEARLY STANDARD PROGRESS REPORT Award ID: 00062220/Project ID: 00079603 HCFC Phase-out Management Plan No. and title: Reporting period: 1 January – 31 December 2013 I. PURPOSE The RA Ministry of Nature Protection on behalf of the RA Government and the UN Development Programme signed “HCFC Phase-out Management Plan” project document in July 2011. The project is intended to serve as an integral component of the country’s policy and commitment to meet its ODS phase-out obligations under the Montreal Protocol. Its objective is to introduce non-ozone depleting technologies in the country and upgrade the country's refrigeration servicing capability. The project includes two main activities: - Activity 1: SAGA -Conversion from HCFC-141b and HCFC 22 in the Manufacture of Commercial Refrigerator Equipment by replacing HCFC-141b with cyclo-pentane in the manufacture of polyurethane rigid insulation foam panels and HCFC 22 refrigerant with propane (R-290) in the manufacture of commercial refrigerator equipment; - Activity 2: Initial Development of the Refrigerant Management System by upgrading refrigerant recovery capability ensuring that qualified technicians are equipped with recovery equipment along with supporting tools and leak detection equipment. The Project contributes to UNDAF Outcome 4 and CP Outcome 4.10. The Implementing Partner for the Project is the RA Ministry of Nature Protection. II. RESOURCES The Project is financed by the Multilateral Fund for the Implementation of the Montreal Protocol (MLF). USD 468,883 was planned for 2013. III. RESULTS The activities carried out during the reporting period resulted in the following: Activity 1 - - The package of the required documents on the case “Procurement of “Replacement of HCFC-141b as Foam Blowing Agent by Cyclo-pentane” and “Replacement of HCFC-22 as Refrigerant by R-290” (Project: HPMP Armenia 00079603; ITB # 061/12) was prepared and submitted to the RACP for approval on 5 February 2013. On the request of the RACP a large number of additional documents was prepared and submitted to the RACP by 28 February 2013. The case was finally approved by the RACP on 28 February 2013. Long lasting negotiations took place among the NOU, SAGA Ltd, Transfair GmbH and Project National and International Experts on cutting off the technical requirements to meet the budget possibilities. - - - The PO at the amount of Euro 337,735 was prepared and approved on 05 April 2013. The PO was signed by the tender winning company, Transfair GmbH, on 19 April, 2013. On 21 May, 2013 the company’s Managing Director, Mr. W. D. Adler, paid a five-day visit to SAGA Ltd. with the aim of seeing SAGA’s conditions for specifying local works. He made draft drawings on further works. Technical documentation on local works, AutoCAD drawings and text files (specifications of ventilators) were planned to be completed by Transfair GmbH in July-August of the year 2013 and sent to SAGA Ltd. for proceeding. “Transfair” GmbH delivered the equipment for the replacement of HCFC-141b as foam blowing agent by cyclo-pentaine and HCFC-22 as refrigerant by R-290 by the end of October (as initially envisaged by the delivery plan). Customs clearance was completed by 1 November 2013 and the equipment was transferred to the warehouse of SAGA LLC. Local works at SAGA were initially planned to be completed in October 2013 to allow installation of the new equipment but a delay took place due to the certain financial problems at the company. Currently the company is uncertain on the performance date of the local works. A meeting with SAGA LLC Deputy Director took place on 1 November with participation of UNDP and NOU representatives. Possible solutions were discussed to settle the problems and complete the new technology installation. Activity 2 - - Awareness seminar for ODS Importers/Exporters (who were mostly RAC technicians as well) was held at “Erebuni-Plaza” Business Centre on 1 February 2013. At the seminar the participants were introduced with the amendments in the Armenia’s legislation regarding the global and individual import quota establishment for ozone depleting substances (ODS), particularly for the group of hydroclorofluorocarbons (HCFC). Monitoring telephone calls were held with the owners of 25 recovery and recycling sets of equipment. All the owners confirmed the continued use of the R&R sets. No complaints or spare parts requests were received. IV. FINANCIAL IMPLEMENTATION The total delivery rate (disbursed and encumbered) for the reporting period makes 87.12% (USD 408 479) of the budget planned for 2013.