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: 4 | ARCHIVED on 20-Jun-2016 | ISR23934 | Implementing Agencies: 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:30-Dec-2016 Actual Mid-Term Review Date:-- Original Closing Date:31-Dec-2018 Revised Closing Date:31-Dec-2018 Global Environmental Objectives Global Environmental 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 to Thailand’s efforts to meet its HCFC consumption phase-out obligations under the first phase of the program (2014-2018). The development objective of the Series of Projects (SOP) is to contribute to Thailand’s efforts to reduce its HCFC consumption in accordance with the Montreal Protocol phase-out schedule leading to a complete phaseout by 2040. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components 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 GEO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate 6/20/2016 Public Disclosure Copy Page 1 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) Implementation Status and Key Decisions The project is making good progress towards the achievement of its development objectives. The project is making good progress towards the achievement of its development objectives. Subgrant agreements have now been signed with 10 A/C enterprises and 9 foam enterprises. The three subprojects completed to date have already reduced annual consumption of HCFC-22 by 203 metric tons (11.2 ODP tons) and annual consumption of HCFC-141b by 75 metric tons (8.3 ODP tons). Greenhouse gas emissions have also been reduced by about 444,000 tons CO2e per year due to the conversion from HCFCs to cooling and blowing agents with lower global warming potential. One additional subproject proposal for the A/C sector and 25 proposals for foam enterprises are under review. Details are also being finalized for a mechanism that will efficiently and economically channel technical assistance and financing to meet the needs of small and medium-size foam enterprises, about 70 of which have either submitted financing requests or expressed interest in the program. Progress is also being made toward banning HCFCs in key segments of the A/C and foam sectors, raising public awareness of new ozone friendly A/C products available in the Thai market, and preparing a proposal for integrating HCFC phase-out into the A/C criteria of the Thailand Green Building Program. 6/20/2016 Public Disclosure Copy Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) 6/20/2016 Public Disclosure Copy Page 3 of 9 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 Global Environmental Objective Indicators 6/20/2016 Public Disclosure Copy Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) PHINDGEOTBL  Reduction in HCFC consumption from foam and a/c sectors(Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 0 ODP ton 82.66 ODP ton 209 ODP Ton Date 06-Aug-2014 16-Nov-2015 31-May-2016 31-Dec-2018 Overall Comments As per the preliminary information on the 2015 consumption of HCFCs in Thailand, it suggests that Thailand's consumption in 2015 was lower than the target of 834.84 ODP tons. This represents a reduction of 82.66 ODP tons from the 2014 level. This reduction is achieved from the direct phase-out of 19. 49 ODP tons from the sub-projects (two A/C and one foam companies) and 63.17 ODP tons from the policy and regulation (TA component). For A/C and foam companies that have not finished their conversions, they either reduce their production or use HCFC-22 and HCFC-141b from stockpiles build-up from the previous year. For the foam sector, some enterprises switch to HCFC-141b pre-blended polyol imported from China on a temporary basis. HCFC-141b contained in imported pre-blended polyol does not considered by the Montreal Protocol as consumption. Intermediate Results Indicators PHINDIRITBL  Timely issuance and enforcement of annual HCFC import quotas (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Y Y Y Y Date 31-Jan-2014 16-Nov-2015 16-Nov-2015 31-Jan-2018 Comments HCFC import quota for 2016 was issued on November 16, 2015. The total import in terms of ODP tons was 10% lower than the baseline level (834.84 vs. 927.5 ODP tons). PHINDIRITBL  Timely Article 7 data submission (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Y Y N Y Date 30-Sep-2013 16-Nov-2015 31-May-2016 30-Sep-2018 Comments Submission of Article 7 data for the 2015 consumption is due on September 30, 2016. The verification of the 2015 consumption is expected to be completed by early September ahead of the deadline. 6/20/2016 Public Disclosure Copy Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) PHINDIRITBL  HCFC-22 consumption reduction in the air-conditioning sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 0 ODP Ton 11.186 ODP Ton 57 ODP Ton Date 06-Aug-2014 16-Nov-2015 31-May-2016 31-Dec-2018 Comments The actual reduction of 11.186 ODP tons is the result of conversion completion at two A/C manufacturers. Other manufacturers have also partially reduced their HCFC-22 consumption and some are using HCFC-22 stockpiled from the previous years. PHINDIRITBL  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 1,232,535 tCO2 Value 0.0 0.0 tCO2 eq/yr 285,153 tCO2 eq/yr eq/year Date 06-Aug-2014 16-Nov-2015 31-May-2016 31-Dec-2018 Comments The actual GHG emission reduction is attributed to the lower GWP of HFC-32 and the lower refrigerant charge size of the new A/C system. PHINDIRITBL  Successful conversion of beneficiaries in A/C sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 12.00 Date 06-Aug-2014 16-Nov-2015 31-May-2016 31-Dec-2018 Comments Saijo Denki and Unico have already completed their conversions to HFC-32. Both enterprises have already stopped using HCFC-22. 6/20/2016 Public Disclosure Copy Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) PHINDIRITBL  HCFC-141b consumption reduction in the foam sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 0 ODP Ton 8.302 ODP Ton 152 ODP ton Date 06-Aug-2014 16-Nov-2015 31-May-2016 31-Dec-2018 Comments The reduction is from the completed conversion at Roto Molding. PHINDIRITBL  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 740,499 TCO2 Value -- 0 tCO2 eq/year 58,867 tCO2 eq/year eq/yr Date 06-Aug-2014 16-Nov-2015 31-May-2016 31-Dec-2018 Comments The GHG emission reduction is achieved through replacement of HCFC-141b to cyclopentane. PHINDIRITBL  Annual Work Programs for Submission to the ExCom (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 4.00 Date 06-Aug-2014 16-Nov-2015 31-May-2016 31-Dec-2018 PHINDIRITBL  Number of system houses offering lower-GWP pre-blended formulation techologies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 06-Aug-2014 16-Nov-2015 31-May-2016 -- Comments One system house is in a process of preparing a proposal for submission to GSB. 6/20/2016 Public Disclosure Copy Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) PHINDIRITBL  Verification Reports on Annual HCFC Consumption (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 4.00 Date 20-Aug-2014 16-Nov-2015 31-May-2016 -- Comments The verification reports for 2013 and 2014 HCFC consumption were submitted to the ExCom in January 2016. PHINDIRITBL  Regulations and standards supporting HCFC phaseout (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completion of revised Regulations being Regulations being Value -- standards and reviewed and revised reviewed and revised regulations for the A/C sector Date -- 16-Nov-2015 31-May-2016 31-Dec-2018 Comments DIW announced its policies to ban the use of HCFC-141b, except from spray foam, and the use of HCFC-22 for manufacturing of a/c systems with cooling capacity lower than 50,000 BTU per hour by January 1, 2017. Overall Comments The project continues with good progress. The policies announced by DIW in February 2016 have sent the right signal to the market. Data on Financial Performance Disbursements (by loan) 6/20/2016 Public Disclosure Copy Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand HCFC Phaseout Project (Phase I) (P115761) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P115761 TF-16701 Effective USD 23.92 23.92 0.00 5.79 18.13 24% 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-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/20/2016 Public Disclosure Copy Page 9 of 9