PROJECT BRIEF

BACKGROUND: The Government of Turkey (GOT) has taken significant steps toward the phase-out of ODS. Prior to ratifying the Montreal Protocol on September 20, 1991, Turkey passed the entire text of the Protocol as law. Although it qualifies under the Protocol for a ten year period to phase-out the use of ODSs, GOT opted for an accelerated program aimed at phasing out the usage of these substances,. ODSs used for recharging refrigerators and other appliances are to be phased-out by 2007. GOT has developed a regulatory framework that includes specific policy and regulatory measures needed to achieve ODS phase-out. The Technology Development Foundation (TDF) has been given responsibility for identifying and preparing investment projects for ODS phase-out in all of the ODS Sectors.

PROJECT OBJECTIVE: The objective of this project is to assist GOT in ensuring that ODS-using industries in Turkey effectively and efficiently phase out ODS usage through the adoption of non-ODS technologies in compliance with the protocol. The policy and regulatory measures are also monitored as agreed under the first PODS project.

PROJECT DESCRIPTION: The Project provides financial assistance to enterprises in all sectors for adoption of non-ODS technologies. Eligible investment costs and recurring costs are financed in accordance with prevailing Montreal Protocol Executive Committee (MPEC) guidelines. Funding assistance is proportional to the Turkish ownership in the sponsoring enterprise and adjusted downward corresponding to the enterprise’s exports to non-Article 5 countries, if any, as per the MPEC guidelines. TDF is currently implementing the sector-wide project in refrigeration, halon banking project, methyl bromide project, solvent sector project and an institutional strengthening project for GoT.

IMPLEMENTING and MONITORING: The private sector enterprises proposing to convert to non-ODS technologies are responsible for implementation of the respective investments (sub-projects). TDF serves as the financial intermediary and is responsible for preparation, appraisal and supervision of the sub-projects. The MOE develops the policy and regulatory measures for ODS phase-out and ensures the enforcement of other relevant regulations.

BENEFITS: The major benefit of this project is the accelerated phase-out of ODS usage in the manufacturing process, and the elimination of ODS leakage during maintenance procedures, as well as agricultural production and processing (in the case of MeBr use). In addition, the project ensures that Turkey maintains the capacity to export products as the ban on ODS-based technologies comes into effect.

PROJECT STATUS: To date, TDF has supported 36 ODS phase-out projects, 4 under PODS-I for $5.4 million and 32 under PODS-II for $15.7 million with a combined total grant amount of US$21.1 million. Of these projects, 31 are completed and 5 are in progress. The distribution by sector is 29 from refrigeration, 2 from foam, 1 MeBr, 2 from solvents, and one from halons. Under PODS-I, there were 3 demonstration projects completed for solvents, refrigeration and foam sectors. The fundamental purpose of these was to demonstrate the transition to new technologies especially in small enterprises. Experience gained from these projects is being used under PODS-II during the implementation of umbrella projects in the solvents and foams sectors, which cover small enterprises. One of these projects, the “Refrigeration ODS Phase-out Sector Plan” covers final conversion of the refrigeration sector with a total budget of 9 Million USD, is being implemented via a series of performance-based annual installments, and will be highly critical to the success of future phase-out activities.

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