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: 9 | ARCHIVED on 27-Dec-2018 | ISR33998 | 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 is nearly completed, 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), well below the 2018 target of 788 ODP tons. In addition to the two ministerial notifications effective from 1st July 2017 (ban on HCFC-22 in the domestic manufacture of 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 1/7/2019 Page 1 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) decrees will help ensure the sustainability of the reductions achieved to date. Although some technical assistance (TA) activities have progressed more slowly than planned, it is expected that all TA activities will be completed before December 31, 2018. The project closing date was recently extended by one year (to December 31, 2019) to allow continuation and completion of some institutional strengthening activities. 1/7/2019 Page 2 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) 1/7/2019 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 IN00636985 ►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 209 ODP tons Date 06-Aug-2014 -- 21-Sep-2018 31-Dec-2018 Overall Comments PDO The target has been exceeded. This indicator measures total HCFC consumption (imports) not including the HCFC content of pre-blended polyol. The 2009-2010 baseline was 927.5 ODP tons and the verified 2017 imports were 405 ODP tons, for a net reduction of 522.5 tons. The 2017 consumption of 405 ODP tons is far below the annual Montreal Protocol limits of 835 tons for 2015- 17 (90% of baseline) and 603 tons by 2020 (65% of baseline) and puts Thailand well on the way to meeting the 1/7/2019 Page 4 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) 2025 target of 301.5 tons (32.5% of baseline). 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 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. Furthermore, the 2017 consumption of 405 tons was much lower that 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 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. Hence, the project’s policy and TA activities are critical to achievement of the overall phase-out target. Intermediate Results Indicators by Components Investment in HCFC Consumption Reduction IN00636921 ►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 152 ODP ton Date 06-Aug-2014 -- 21-Sep-2018 31-Dec-2018 IN00636931 ►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 740,499 tCO2eq/yr Date 06-Aug-2014 -- 21-Sep-2018 31-Dec-2018 IN00636943 ►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 57 ODP ton Date 06-Aug-2014 -- 21-Sep-2018 31-Dec-2018 IN00636944 ►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 1/7/2019 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 1,232,535 tCO2eq/yr Date 06-Aug-2014 -- 21-Sep-2018 31-Dec-2018 Technical Assistance IN00636936 ►Successful conversion of all 12 beneficiaries in A/C sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 11.00 12.00 Date 06-Aug-2014 -- 21-Sep-2018 31-Dec-2018 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. IN00636937 ►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 4.00 Date 06-Aug-2014 -- 21-Sep-2018 31-Dec-2018 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 IN00562871 ►HCFC-22 consumption reduction in the air-conditioning sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 57 ODP tons 63.52 ODP Ton 63.52 ODP Ton 57 ODP Ton Date 06-Aug-2014 07-Sep-2017 07-Sep-2017 31-Dec-2018 The actual reduction of 63.52 ODP tons is the result of the completion of production line conversions at 11 Comments: A/C manufacturers. IN00636938 ►Regulations and standards supporting HCFC phase-out (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completion of revised Revised standards and No regulations banning standards and Value -- regulations for the A/C the use of HCFCs regulations for the A/C sector completed. sector Date 06-Aug-2014 -- 07-Sep-2017 31-Dec-2018 IN00636939 ►Annual Work Programs for Submission to the ExCom (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 5.00 4.00 Date 06-Aug-2014 -- 21-Sep-2018 31-Dec-2018 DIW will submit the 2018 progress report and work program for the ExCom's consideration at the meeting Comments: in December 2018. 1/7/2019 Page 6 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) IN00636940 ►Verification Reports on Annual HCFC Consumption (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 5.00 4.00 Date 20-Aug-2014 -- 21-Sep-2018 29-Dec-2017 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. Institutional Strengthening IN00636941 ►Timely Issuance and enforcement of annual HCFC import quotas (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes -- Yes Yes Date 31-Jan-2014 -- 21-Sep-2018 31-Jan-2018 IN00636942 ►Timely Article 7 data submission (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes -- Yes Yes Date 30-Sep-2013 -- 21-Sep-2018 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 17.63 1.62 92% 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 1/7/2019 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. 1/7/2019 Page 8 of 8