Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) Thailand HCFC Phaseout Project (Phase I) (P115761) EAST ASIA AND PACIFIC | Thailand | Environment & Natural Resources Global Practice | Montreal Protocol | Investment Project Financing | FY 2014 | Seq No: 10 | ARCHIVED on 20-Jun-2019 | ISR37362 | Implementing Agencies: Ministry of Finance, Department of Industrial Works Key Dates Key Project Dates Bank Approval Date: 07-Apr-2014 Effectiveness Date: 13-Nov-2014 Planned Mid Term Review Date: 17-Feb-2017 Actual Mid-Term Review Date: 13-Feb-2017 Original Closing Date: 31-Dec-2018 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to reduce HCFC consumption in the air-conditioning and foam sectors in order to contribute toThailand’s efforts to meet its HCFC consumption phase-out obligations under the first phase of the program (2014-2018). Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Investment in HCFC Consumption Reduction:(Cost $21.04 M) Technical Assistance:(Cost $0.63 M) Project Management:(Cost $1.38 M) Institutional Strengthening:(Cost $0.87 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Implementation was completed by December 2018, and the project has already exceeded its HCFC consumption phase-out targets, including Thailand’s 2018 obligation under the Montreal Protocol (MP). Verified consumption (imports) in 2017 was 405 ODP tons (ozone depleting potential). The 2018 County Program Report submitted by DIW reported preliminary HCFC consumption in 2018 at 351.91 ODP tons, well below the 2018 target of 788 ODP tons. Therefore, the HCFC consumption reduction achieved to date is 575.69 ODP tons. In addition to the two ministerial notifications effective from 1st July 2017 (ban on HCFC-22 in the domestic manufacture of small and medium-size household and 6/20/2019 Page 1 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) commercial AC with cooling capacity of 50,000 BTU/hr or lower and ban on HCFC-141b as a blowing agent for most foam products), the Minister of Commerce also issued a ban on the import of HCFC-22 based AC equipment under 50,000 BTU/hr as of March 31, 2018. These decrees will help ensure the sustainability of the reductions achieved to date. Also, all technical assistance (TA) activities have been completed by December 31, 2018. To allow continuation of public awareness activities and some institutional strengthening activities, the project closing date was extended by one year to December 31, 2019. 6/20/2019 Page 2 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) 6/20/2019 Page 3 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Low Low Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Reduction in HCFC Consumptin from foam and a/c sectors IN00709653 ►Reduction in HCFC consumption and production from foam and A/C sectors in ODP tons (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.0 ODP tons 522.5 ODP ton 576.69 ODP ton 209 ODP tons Date 06-Aug-2014 21-Sep-2018 17-May-2019 31-Dec-2019 Comments: Overall Comments PDO The target was well exceeded. The maximum allowed consumption (import) in 2014 was 927.6 ODP tons (the baseline level for Thailand). The independently verified consumption in 2017 was 405.0 ODP tons. This represents a reduction of 522.6 ODP tons from the baseline level and much lower than the Montreal Protocol limits for 2015-17 (835 tons) and 2020 (603 tons). This also puts Thailand well on the way to meeting the MP 6/20/2019 Page 4 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) target for 2025 (301.5 tons). This reduction was achieved through the direct phase-out of 122.17 ODP tons from completion of the 11 A/C subprojects and 45 foam subprojects supported by the project and reflected in the intermediate indicators for HCFC-22 and HCFC-141b conversion. The balance of 400.43 ODP tons was achieved through technical assistance and formulation of policies and regulations (TA, project management, and institutional capacity components) that helped reduce consumption without direct conversion investments from the project. For example, the policies banning HCFC-22 in the manufacture of A/C equipment apply to both local manufacturers that are eligible for assistance from the project and to multinational companies that are not eligible for project financing but whose combined HCFC-22 consumption is much greater than that of the local companies. This is due to the comprehensive design of the project structure that included both the transformation at the sector level as well as the implementation at the policy level, the project’s policy and TA activities are critical to achievement of the overall phase-out target. While the investment interventions in the foam and air-conditioning manufacturing sectors financed by this Project contributed to the direct phase-out of 209 ODP tonnes, an additional phase-out of 157.22 ODP tonnes was attributed to reduced demand for HCFCs in the servicing sector due to early introduction of new non-HCFC products, and HCFC phase-out from multinational companies whose phase-out is not eligible for financing from the Multilateral Fund. According to the 2018 County Program Report submitted by DIW to the Multilateral Fund Secretariat, the preliminary HCFC consumption in 2018 was 351.91 ODP tons. Therefore, the HCFC consumption reduction achieved to date is 575.69 ODP tons. Intermediate Results Indicators by Components Investment in HCFC Consumption Reduction IN00709654 ►HCFC-141b consumption reduction in the foam sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 ODP ton 65.17 ODP ton 164 ODP ton 152 ODP ton Date 06-Aug-2014 21-Sep-2018 17-May-2019 31-Dec-2019 IN00709659 ►GHG emission reduction from replacement of baseline foam blowing agent with low/lower GWP alternative in the foam sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 tCO2eq/yr 323,385 tCO2eq/yr 368,046 tCO2eq/yr 740,499 tCO2eq/yr Date 06-Aug-2014 21-Sep-2018 17-May-2019 31-Dec-2019 IN00709662 ►HCFC-22 consumption reduction in the air-conditioning sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 ODP ton 57 ODP ton 63.52 ODP ton 57 ODP ton Date 06-Aug-2014 21-Sep-2018 17-May-2019 31-Dec-2019 IN00709664 ►GHG emission reduction from replacement of baseline refrigerant with low/lower GWP alternative in the air-conditioning sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/20/2019 Page 5 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) Value 0 tCO2eq/yr 1,622,649 tCO2eq/yr 1,622,649 tCO2eq/yr 1,232,535 tCO2eq/yr Date 06-Aug-2014 21-Sep-2018 17-May-2019 31-Dec-2019 Technical Assistance IN00709655 ►Successful conversion of all 12 beneficiaries in A/C sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 12.00 Date 06-Aug-2014 21-Sep-2018 17-May-2019 31-Dec-2019 While there were 11 enterprises signing sub-grant agreements, the actual phase-out under the project contributed by 12 companies. The additional company stops making small a/c units. However, this Comments: company participates in the technical assistance components financed by the project. IN00709660 ►Number of System houses offering Lower-GWP pre-blended polyol formulations technology (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 4.00 Date 06-Aug-2014 21-Sep-2018 17-May-2019 31-Dec-2019 At present, the following system houses have already offered polyol systems compatible with HC, water Comments: blown and HFC-245fa are: Covestro. Dow, IRPC, Huntsman, BIT, and South City. Project Management IN00709658 ►Regulations and standards supporting HCFC phase-out (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completion of revised Revised standards and Revised standards and No regulations banning standards and Value regulations for the A/C regulations for the A/C the use of HCFCs regulations for the A/C sector completed. sector completed. sector Date 06-Aug-2014 07-Sep-2017 17-May-2019 31-Dec-2019 IN00709663 ►Annual Work Programs for Submission to the ExCom (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 4.00 Date 06-Aug-2014 21-Sep-2018 17-May-2019 31-Dec-2019 DIW will submit the 2018 progress report and work program for the ExCom's consideration at the meeting Comments: in December 2018. IN00709665 ►Verification Reports on Annual HCFC Consumption (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 4.00 Date 20-Aug-2014 21-Sep-2018 17-May-2019 31-Dec-2019 While the MLF ExCom requires Thailand to submit 4 verification reports covering the period 2013 - 2016, Comments: Thailand has conducted the 2017 verification report and will submit it for the ExCom's consideration. 6/20/2019 Page 6 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) Institutional Strengthening IN00709657 ►Timely Issuance and enforcement of annual HCFC import quotas (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 31-Jan-2014 21-Sep-2018 17-May-2019 31-Jan-2018 IN00709661 ►Timely Article 7 data submission (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 30-Sep-2013 21-Sep-2018 17-May-2019 28-Sep-2018 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P115761 TF-16701 Effective USD 23.92 19.25 4.67 17.87 1.38 93% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P115761 TF-16701 Effective 13-Nov-2014 13-Nov-2014 13-Nov-2014 31-Dec-2018 31-Dec-2019 Cumulative Disbursements 6/20/2019 Page 7 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) Restructuring History Level 2 Approved on 08-Jun-2018 ,Level 2 Approved on 30-Nov-2018 Related Project(s) There are no related projects. 6/20/2019 Page 8 of 8