OZONE SPECIAL ISSUE

THE MULTILATERA FUND FOR THE IMPLEMENTATION OF THE MONTREAL PROTOCOL :

The Montreal Protocol calls on the developed countries to provide financial and technical assistance to developing countries. This has resulted in the establishment of the "Multilateral Fund" (MF) for the implementation of the Protocol. The fund is to offer assistance to developing countries to acquire technologies to substitute ODSs with alternative technology. The Fund assisted activities are implemented through four agencies:

  • The United Nations Environment Programme (UNEP)
  • The United Nations Development Programme (UNDP)
  • The United Nations Industrial Development Organization (UNIDO)
  • The World Bank
Provisions also exist for direct bilateral assistance between the parties. Bilateral assistance, however, has to be consistent with the criteria established by the Executive Committee.

UNEP (Nairobi Headquarters) also provides the organizational umbrella for the Fund's secretariat, and serves as the treasurer receiving all contributions to the MF and disburses funds according to the decisions of the Executive Committee.

Eligibility to the Multilateral Fund
Only developing countries which are parties to the Protocol and with an annual per capita consumption less than 0.3 kg are eligible for assistance from MF. India belongs to this group of countries having about 0.01 kg per capita annual consumption of specified ozone depleting chemicals.

Assistance from the Fund
The MF gives assistance in the following areas:
  • Identifying country needs
  • Project proposal eliminating the use of ODS
  • Training and networking and conducting workshops
  • Information dissemination
Project proposals
Project proposals (exceeding US$ 0.5 million) should contain all the details of a specific project in a specific sector or a group of projects and should contain the following main components:
  • Project Cover Sheet; it provides a summary of basic data, including ownership of the enterprise concerned, consumption, time frame, impact, budget, implementing agency and national coordinating agency and brief summary of technical, institutional and policy issues
  • Project title
  • Sector data
  • Project description; the project's short and long term objectives and their relationship with the Country Programme or the national strategy to be described along with the activities required to accomplish the project objectives
  • Project time frame
  • Outputs
  • Budget; the budget should clearly describe how the incremental cost figures are calculated
  • Institutional framework
  • Technical appraisal

Project Proposals for Investment Projects under US$ 0.5 million
Documentation that is needed on investment projects submitted to the Executive Committee for final approval within a work programme should cover the following information:

  • Country or Region
  • Sector(s) covered
  • Project title
  • Technology to be used (where applicable)
  • Project impact (ODS phased-out/year, beginning in where applicable)
  • Project duration
  • Total Cost
  • Ownership of enterprise
  • Incremental cost
  • Cost effectiveness
  • Implementation Agency
  • National Coordinating Agency
  • Technical review
In general, the Multilateral Fund is designed for payment only for eligible costs of national enterprises or corresponding shares of joint ventures and not for any part owned by transnational companies.

Accessing the Fund
All applications requesting Protocol funding should be made via the National Government and submitted for approval to the Executive Committee through the Fund Secretariat. Interested countries can apply through three channels:

  • By contacting the MF Secretariat (MFS):

    The MFS can assist a country in identifying a relevant Implementing Agency that can help prepare a Country Programme (CP) or Project Programme (PP); and supply information necessary to develop a CP or PP. The MFS also provides liaison with recipient countries, the Implementing Agencies and the Executive Committee.
  • By contacting one of the Implementing Agencies (IA):

    Countries can contact one of the IA (S) to develop CP and/or PPs.
  • By contacting a bilateral Donor Agency:

    A country can also seek direct bilateral assistance from one of the donor Parties. The assistance is limited to a maximum of 20% and the assistance activities should comply with the guidelines set by the Executive Committee.

    All PPs and CPs requiring funding from MF must be submitted and approved by the Executive Committee. They should also include the designated IA(s). The Committee holds three meetings a year at which action on requests for funding and other issues are taken.
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