Independent Evaluation - Home > Search

Implementation Completion Report (ICR) Review - Ozone Depleting Substance Phaseout Project I


  
1. Project Data:   
Project ID:
P003407
Project Name:
Ozone Depleting Substance Phaseout Project I
Country:
China
Sector:
Other Environment, Environment
L/C Number:
Partners Involved:
Multilateral Fund Under the Montreal Protocol
Prepared By:
Melody K. Mason, OEDST
Reviewed By:
Hernan Levy
Group Manager:
Roger H. Slade
Date Posted:
05/26/1998

2. Project Objectives, Financing, Costs, and Components:

The First Ozone Depleting Substance Phaseout project (ODS1) was approved in November 1993 and was supported by a grant of US$7.825 million. The grant was fully disbursed and closed on schedule in June 30, 1997. Project costs were US$15.7 million, 16 percent lower than estimated at appraisal. The project was funded from the Montreal Protocol (MP) Multilateral Fund which was created to provide support to eligible developing countries to meet their obligations under the MP.

The objectives of the project were: (i) to support Government's program to reduce consumption of ozone depletion substances; (ii) to implement cost-effective priority subprojects; and (iii) to develop a local project implementation capacity. Project components included: (i) five subprojects to introduce non-ODS technology in aerosols, foam and halon substitutes; and (ii) limited technical assistance to strengthen project management capacity.


3. Achievement of Relevant Objectives:

All five subprojects were implemented but three were well below their ozone depletion targets although these subprojects should achieve their targets by 2000. The two aerosol subprojects that have not yet achieved their targets appear, however, to have had an indirect influence by encouraging several local fillers to stop using chlorofluorocarbons (CFC). The project helped develop a project implementation capacity for the Government's ODS Program, including strengthening the capacity of the financial agent in project appraisal and supervision of ODS subprojects.

4. Significant Outcomes/Impacts:

The most significant achievement of the project was to develop the institutional capacity to design and implement ODS programs. The project was essentially a learning experience for both the Bank and the Borrower on how to implement the provisions of the Montreal Protocol in China.

5. Significant Shortcomings (include non-compliance with safeguard features):

The project components were based on a Country Program to achieve ODS phaseout by 2005-2010. However, the program was not sufficiently detailed for implementation of a comprehensive national phaseout strategy. Government commitment to the program has, at times, been lacking. The regulatory framework for ODS is still weak and enforcement mechanisms, in particular, are inadequate. The experience gained since the approval of the project has shown that the design of the subprojects was not always the most cost-effective and that providing grants to enterprises has not always led to the selection of least-cost solutions. Lack of transparency in subproject selection has sometimes resulted in financing of enterprises with inadequate technical and financial capacity. Cost-effectiveness was meant to be a subproject selection criteria but there was not agreement on how to evaluate cost-effectiveness. In addition, it appears that the baseline data was not always reliable (for example, on the amount of CFC used by the aerosol industry) and monitoring and evaluation was weak.

6. Ratings:ICROED ReviewReason for Disagreement/Comments
Outcome:
SatisfactoryMarginally Satisfactory
    Mainly on account of the shortcomings of the project listed above, especially in not dealing adequately with cost-effectiveness of subprojects. More could have been achieved if the project had helped to develop an adequate regulatory framework.
Institutional Dev.:
SubstantialModest
    The project partially achieved its narrowly defined objective to develop an effective implementation capacity for implementing ODS reduction policies, although there were several problems with implementation of the project, particularly regarding procurement, establishing a transparent system for subproject selection and determining the most cost-effective alternatives for each subproject. The project was not successful in developing institutional sector capacity, particularly regarding sector strategy and regulation. This is now being done under other operations.
Sustainability:
LikelyLikely
Bank Performance:
SatisfactorySatisfactory
    The Bank and the Borrower have learnt from the weaknesses of the project.
Borrower Perf.:
SatisfactorySatisfactory
Quality of ICR:
Satisfactory

7. Lessons of Broad Applicablity:

When embarking on a new area of activity in environment, the Bank should focus its efforts on developing a satisfactory policy and regulatory framework and preferably starting with phasing out one key pollutant. By concentrating limited Bank and Borrower resources on one key area, a reliable data base of information on that industry and participation of individual enterprises can be developed. The lessons learned could then be applied to other industries in subsequent projects

8. Audit Recommended?  No

          Why?  

9. Comments on Quality of ICR:

More significant lessons learned are included in the Memorandum and Recommendation report on the Fourth ODS Project and these should have been incorporated in the ICR. The ICR should also have included a plan for future operation which could have been based on the plan in the Fourth ODS Project.

© 2012 The World Bank Group, All Rights Reserved. Terms and Conditions