Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam-HCFC Phase-out Project (Phase I) (P115762) Vietnam-HCFC Phase-out Project (Phase I) (P115762) EAST ASIA AND PACIFIC | Vietnam | Environment & Natural Resources Global Practice | Montreal Protocol | Specific Investment Loan | FY 2013 | Seq No: 6 | ARCHIVED on 31-Dec-2015 | ISR22080 | Implementing Agencies: Ministry of Natural Resource and Environment Key Dates Key Project Dates Bank Approval Date:13-Nov-2012 Effectiveness Date:16-Nov-2012 Planned Mid Term Review Date:18-Jan-2016 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2017 Revised Closing Date:30-Jun-2017 Global Environmental Objectives Global Environmental Objective (from Project Appraisal Document) To reduce HCFC consumption in order to contribute to the Government of Vietnam's efforts to comply with its Montreal Protocol (MP) phase-out obligations for HCFCs to be met between January 1, 2013 and January 1, 2015. The HCFC phase-out will be done in a manner that maximizes the climate co-benefits through the introduction of no to very low global warming potential (GWP) alternatives. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Name Component 1: Investment in HCFC-141b consumption phase-out:(Cost $8.88 M) Component 2: Supporting policies and regulations and technical assistance activities:(Cost $0.35 M) Component 3: Project management:(Cost $0.53 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of GEO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate 12/31/2015 Public Disclosure Copy Page 1 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam-HCFC Phase-out Project (Phase I) (P115762) Implementation Status and Key Decisions The project has continued to make progress and is in compliance with its Montreal Protocol (MP) obligations. Import and export of bulk HCFC-141b has been banned starting in 2015, per the MP phase-out schedule. Actual 2014 imports of HCFCs have been verified as being below the prevailing Montreal Protocol allowance and in February 2015 the government issued a 2015 national import quota for HCFCs that is below the MP allowance. By the end of 2015, national HCFC consumption (imports) will be reduced to 3,600 metric tons, from 4,200 tons in 2012. Avoided greenhouse gas emissions to date from completed enterprise conversion subprojects to phase-out use of HCFC in the foam sector is equivalent to about 476,000 tons of CO2/year, and is expected to reach nearly 1 million tons/year (about 1,275 tons of HCFC use converted) when the project is completed. 12/31/2015 Public Disclosure Copy Page 2 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam-HCFC Phase-out Project (Phase I) (P115762) 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  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Substantial  Substantial Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Global Environmental Objective Indicators PHINDGEOTBL  The 2013 and 2015 national HCFC consumption phase-out targets met(Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 234.90 210.82 210.82 199.10 Date 31-Dec-2010 31-May-2015 31-Dec-2014 01-Jan-2015 Comments Note that the baseline above is the actual use in 2010, but the MP baseline used to set the compliance targets for 2013 (100%) and 2015 (90%) is the 2009-10 average (221.2 ODP tons). Because the verified 2015 HCFC consumption data is not yet available, the current actual value (and previous actual value) of 210.82 is for 2014. Achievement of the 2015 target will be verified in early 2016. Through implementation of the 12 sub-projects and the effective national HCFC import and export license and quota system, VN has been able to phase out all bulk HCFC-141b. A ban on bulk HCFC-141b has been issued as planned to ensure the project’s sustainability. In order to avoid confusion, the date for Actual (current) is changed to Dec. 31, 2014, indicating the Value of 210.82 is for the year of 2014. 12/31/2015 Public Disclosure Copy Page 3 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam-HCFC Phase-out Project (Phase I) (P115762) PHINDGEOTBL  Avoided CO2e emission from change to low GWP alternatives(Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 278150.00 476000.00 975069.00 Date 13-Nov-2012 31-May-2015 31-Dec-2015 30-Jun-2017 Comments Based on the difference in greenhouse warming potential (GWP) between the HCFCs and HC (or water-blown foam system) used by participating enterprises that have converted their production system from HCFCs to new technologies (five enterprises so far). About 476,000 CO2 emission are avoided from completed phase-out of bulk HCFC-141b and completed phase-out of HCFC-141b contained in pre-blended polyol by four enterprises. Overall Comments Intermediate Results Indicators PHINDIRITBL  The number of sub-grant agreements signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 12.00 Date 13-Nov-2012 29-May-2015 31-Dec-2015 30-Jun-2016 Comments Of the eleven signed sub-grants, five subprojects are completed and two are expected to be completed by end of 2015 or early 2016. Four are underway. How to deal with the last sub-project (dropped/fully return the allocated funds or replaced/partially return the allocated funds) will be further discussed with the client during the MTR mission and are expected to be confirmed when resubmitting the third tranche funding request in early Feb. 2016. PHINDIRITBL  Cumulative HCFC-141b consumption phased out in the foam sector (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 140.10 100.88 100.88 0.00 Date 31-Dec-2009 31-May-2015 31-Dec-2015 30-Jun-2017 Comments This indicator measures HCFC-141b consumption phase-out at the 12 participating enterprise level. Baseline is the amount used by participating enterprises prior to conversion. The five subprojects completed so far have phased out 39.22 ODP tons of HCFC-141b. Two more sub-projects are expected to be completed by end of 2015 and will be confirmed during the MTR mission in Jan. 2016. The current, 12/31/2015 Public Disclosure Copy Page 4 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam-HCFC Phase-out Project (Phase I) (P115762) pre-conversion consumption of the remaining seven enterprises (including the dropped enterprise) is 100.88 ODP tons. PHINDIRITBL  Issuance and implementation of key policies and regulations (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target a) Policy to prevent new a) Policy to prevent or expanded HCFC- new or expanded based foam (bulk HCFC-based foam and HCFC-141 only) and air- air-conditioning conditioning manufacture (1/16/14) manufacture (1/16/14) (b) Ban on import and (b) Ban on import and All required Value No HCFC policies. export of bulk HCFC- export of bulk HCFC- policies issued. 141b (12/29/14) 141b (12/29/14) (c) HCFC import quota (c) HCFC import quota below MP allowance below MP allowance issued each year issued each year (latest (latest quota, for 2015, quota, for 2015, issued issued 2/14/15). 2/14/15). Date 31-Dec-2011 29-May-2015 31-Dec-2015 30-Jun-2017 Comments All required key policies listed in the PAD main text include the following: (a) implement an import quota system to curb the supply of HCFCs -- HCFC quota system has been in place since 2012; (b) recommend the government authorities not to issue licenses for establishing new facilities and expanding existing facilities using HCFCs -- Ban on establishment of new or the expansion of existing HCFC-based manufacturing facilities in the AC sector issued, Ban on establishment of new or the expansion of bulk HCFC-141b based manufacturing facilities in the foam sector issued; (c) ban the import of bulk HCFC-141b by January 1, 2015 - issued Other policies listed in Annex 2 of the PAD will be reviewed during the MTR mission. 12/31/2015 Public Disclosure Copy Page 5 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam-HCFC Phase-out Project (Phase I) (P115762) PHINDIRITBL  TA activities implemented to support HCFC phase-out (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target TA activities are going TA activities are going All TA activities Value No TA activities. well. well. completed. Date 13-Nov-2012 31-May-2015 31-Dec-2015 30-Jun-2017 PHINDIRITBL  Complaince with project reporting requirements of the GA (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The IFR and progress report for 2014 were The IFR and progress reviewed during the report for 2015 will be All required January 2015 mission. reviewed during the reports Value No reports. And they are January 2016 MTR submitted and considered mission. satisfatory to satisfactory. the Bank. Date 13-Nov-2012 29-May-2015 31-Dec-2015 30-Jun-2017 PHINDIRITBL  Annual HCFC consumption verification report (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 3.00 Date 13-Nov-2012 29-May-2015 31-Dec-2015 30-Jun-2016 Comments Annual reports required starting in 2014, to verify HCFC import amounts for the preceding year (verification of 2013, 2014, and 2015 amounts). The 2015 HCFC consumption verification report will be due by June 2016. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed 12/31/2015 Public Disclosure Copy Page 6 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam-HCFC Phase-out Project (Phase I) (P115762) P115762 TF-12705 Effective USD 9.76 9.76 0.00 5.74 4.02 59% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P115762 TF-12705 Effective 16-Nov-2012 16-Nov-2012 16-Nov-2012 30-Jun-2017 30-Jun-2017 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/31/2015 Public Disclosure Copy Page 7 of 7