Note: Questions may be addressed to the GEF Executive Coordinator, ENVGC.
1. Developing countries are eligible to receive grants from the Multilateral Fund for the Implementation of the Montreal Protocol (MFMP) if they have ratified the Montreal Protocol (MP), their annual per capita consumption of the ozone-depleting substances controlled by the Protocol is less than 0.3 kg, and they meet any other criteria established by the MFMP (see OP 10.21, Annex A
, The Montreal Protocol
). Agencies and companies within such eligible countries may receive MFMP grants if they have the explicit support of the government.
2. Activities that are eligible for funding from the MFMP conform to the criteria established by the Parties1 (see OP 10.21, Annex B, Eligible Activities) and to the policies established by the Executive Committee of the MFMP. The MFMP funds only the agreed incremental costs2of such eligible activities.
Ozone Projects Trust Fund
3. Funding for implementation of the Bank's3participation in the MP is channeled to recipients through the Ozone Projects Trust Fund (OTF), which the Bank established and administers and which is constituted by funds approved by the MFMP Executive Committee for transfer from the MFMP.
4. MFMP grants are not subject to taxation in the recipient/host country; that is, grants are not considered as income for the purpose of taxation. In case of doubt, the recipient/host government is requested to certify that fact, in terms satisfactory to the Bank, prior to the disbursement of the grant. Furthermore, the proceeds of the grant may not be used to pay for import tariffs, duties, or value-added taxes, except for locally supplied goods that can be obtained off the shelf.
Disclosure of Information
5. The Parties have indicated that activities under the MP should be carried out in a transparent manner, with full information available promptly on activities funded under the MFMP. As an implementing agency of the MFMP, the Bank is accountable to the Parties, and its policy of openness about projects and other MP-related activity is consistent with their wishes.4 The Bank's policy on the disclosure of information on activities funded under the Global Environment Facility applies to projects financed under the MFMP. The procedures for the release of specific documents for MP operations are detailed in BP 10.21. Procedures for the release of any documents not referred to in this statement are provided for in The World Bank Policy on Disclosure of Information (Washington, D.C.: World Bank, 2002).
6. Procedures relating to the disclosure of information on projects financed under the MP took effect on October 1, 1993. Requests for MP project documents produced before that date are handled individually by the Global Environment Coordination Division.
Project Approval Authority
7. Projects smaller than $500,000 are pre-appraised and approved by Bank management and then incorporated into the Bank's work programs for review by the MFMP Executive Committee.
8. Projects and subprojects larger than $500,000 are prepared, preappraised, and reviewed by the Bank and, once approved by the Bank, are submitted for approval to the MFMP Executive Committee. Such operations are then appraised by Bank staff, reviewed by Bank management, and processed according to the procedures set out in BP 10.21.
9. Normally, MP operations are freestanding investment operations; however, if they are components of Bank-financed projects, they are approved by Bank management subject to Board approval of the associated Bank-financed project.
Project Preparation Advances
10. To assist prospective recipients in preparing substantial investment operations to be financed by grants from the OTF, a project preparation window has been established under the OTF. OTF Project Preparation Advances (PPAs) are limited to a maximum of US$1.5 million per proposed project. The eligibility criteria that apply to regular MP proposed projects apply to OTF-PPAs.
Permission to Proceed
11. When subprojects are not yet well enough defined to allow final approval by the MFMP Executive Committee, the Bank may ask for "permission to proceed" with further preparation. Permission to proceed allows the Bank to include the subprojects provisionally in its overall operation for a particular country, thus facilitating processing of larger projects at lower administrative cost. Legal documents for operations that include subprojects with permission-to-proceed status must condition disbursements for such subprojects on review/approval by the MFMP Executive Committee (see paras. 7-8) before funds may be withdrawn from the OTF.
12. The Bank may establish with an eligible party an umbrella agreement for channeling assistance from the MFMP for a period of two to three years. The umbrella agreement provides a line of grants through which individual subprojects may be funded. Such agreements do not require the approval of the MFMP Executive Committee; however, the Executive Committee reviews (projects below $500,000; see para. 7 ) or approves (projects above $500,000; see para. 8) all projects and subprojects funded through such agreements. Umbrella agreements may be established before any subprojects are approved by the Executive Committee. Legal documents for subprojects under umbrella agreements must condition disbursements for such subprojects on review/ approval by the MFMP Executive Committee before funds may be withdrawn from the OTF.
An indicative list of incremental costs is provided in OP 10.21, Annex B, Eligible Activities.
"Bank" includes IBRD and IDA.