REFRIGERANT MANAGEMENT PLAN FOR VIETNAM. Phase-out of ODS in the refrigeration and air-conditioning sector

Transcription

1 REFRIGERANT MANAGEMENT PLAN FOR VIETNAM Phase-out of ODS in the refrigeration and air-conditioning sector May

2 CONTENTS 1. COUNTRY SITUATION Page 2 2. JUSTIFICATION FOR RMP Page ASSISTANCE RECEIVED Page COMPONENTS OF THE PHASE OUT STRATEGY Page ACTION PLAN Page TIMETABLE Page PROJECTED COSTS AND FINANCIAL ASSISTANCE Page IMPACT Page ANNEX 1 Project proposal - regulations Page ANNEX 2 Project proposal training technicians Page ANNEX 3 Project proposal training customs officers Page ANNEX 4 Assumptions used for estimation Page ANNEX 5 Project proposal Recovery and recycling Page ANNEX 6 Project proposal Monitoring Page 47 2

3 1. COUNTRY SITUATION 1.1 Status of the country In January 1994, the Socialist Republic of Vietnam acceded to the Vienna Convention and the Montreal Protocol. After its ratification, Vietnam Country Programme was prepared with assistance from United Nations Environment Program (UNEP), Paris. The country has also ratified the London Amendment and Copenhagen Amendment to the Montreal Protocol. As per Article 7 data reporting required under the Montreal Protocol, Vietnam has submitted data report for the years Status of the Country Programme The Country Programme (CP) was formulated with assistance from UNEP and approved at the 19 th Meeting of the Executive Committee of the Multilateral Fund in The CP was prepared under the overall supervision and guidance of of the National Country Programme Team constituted by Hydrometeorological Service of Vietnam. The Executive Committee of the Multilateral Fund approved a request from the Government of Vietnam to fund an Institutional Strengthening Project in the country. The Institutional Strengthening Project, which successfully completed three years in 1999, was renewed for another two years. As per the Country Programme, Vietnam does not produce and export any ODS. The total amount of ODSs imported to Vietnam is used to meet its local demand. When the Country Programme was prepared, no recovery and recycling was carried out in the refrigeration sector. The baseline for CFCs ( average) amounts to ODP tons. This includes CFC consumption in aerosol, foam and refrigeration sector. The consumption has decreased significantly in the aerosol and foam sectors with implementation of phaseout projects over the last five years. Of this, consumption of CFCs in the refrigeration sector ( average) is about 209 ODP tons, which accounts of about 40% of total CFC consumption. Import of CFCs in the refrigeration sector has decreased at an absolute level from about 235 ODP tons in 1995 to about 167 ODP tons in This has been primarily due to: Efforts of the NOU including close interaction with the industry, reaching out CFC consuming enterprises and encouraging them to implement phaseout projects, driving the process of regulation preparation etc., Expected introduction of regulations to control consumption of CFCs, Projects in the refrigeration sector, such as conversion projects for enterprises, recovery and recycling project for Northern Vietnam etc., and Increasing trend globally of production and consumption of non-cfc substances/equipment. 3

4 The objective of reduction of the CFCs used in the refrigeration and air conditioning sector has not been met as per the phaseout plans presented in the Country Program due to the following. Inability to adequately address the needs of servicing sector, which has a large component of informal operators. The details of the servicing sector are given in section Non-availability of recovery and recycling, especially for the industrial refrigeration equipment and commercial refrigeration equipment. Delays in formulation and implementation of regulations for controlling and monitoring CFC usage and promotion of usage of alternatives. The country however has experienced an increase in use of non-ods based alternatives in the refrigerant sector primarily due to higher imports of non-ods based refrigeration and air conditioning equipment. Vietnam still needs assistance to comply with the 50% reduction in CFC consumption in 2005 and the 85% reduction required in This document is prepared to assist the country to meet the Montreal Protocol obligations. 1.3 Status of Institutional Strengthening Project The National Ozone Unit (NOU) is officially known as the National Office for Climate Change and Ozone Protection. The NOU is established in separate premises and is staffed to take care of activities relating to both Montreal Protocol and Climate Change. The ODS Officer heads the NOU and is supported by project officers handling other activities in the country. Progress in implementation of Country Programme has been achieved by the NOU. The NOU in close coordination with the industry has been able to get several projects approved for different sectors as detailed in the table below. 4

5 Project particulars Table 1.1 Summary of project approved for ODS phaseout Funds approved in US dollars Administrative and support costs Total funds approved in US $ A B C=A+B CP / RMP preparation $81, $7, $88, Funds for other project preparation and awareness workshops $106, $8, $114, Institutional Strengthening 228, , , project Other refrigeration sector $1,386, $99, $1,485, investment projects Other sector projects $1,192, $155, $1,291, Grand total $2,995, $300, $3,239, Source: Inventory of approved projects upto 31 ExCom provided by Multilateral Fund Secretariat. The overall structure of implementation of Montreal Protocol activities in Vietnam is given below. Figure 1 Government Hydro meterological Service Ministries National Office of Ozone Protection and Climate Change Implementing Agencies Enterprises, companies that import/consume/use ODSs 1.4 Current Situation Vietnam is situated in the South East Asian region with a population of about 79 million (July 2000 est.). The country may be divided into 3 typical economic and geographic zones namely, Northern, Central and Southern areas. The total land area is 329,560 kms with a long coastline of 3,444 kms. The current GDP growth rate of Vietnam is estimated at about 4.8%. The recent economic crisis in the Southeast Asian region has affected the major industries in the country. The country is also currently in the process of realigning the structural reforms to suit the economic growth needs in the country. 5

6 About 26% of the GDP is contributed by agriculture-based industries. About 33% is contributed by mining and the remaining by services industry. The major industries in Vietnam are food processing, garments, shoes, machine building, mining, cement, chemical fertiliser, glass, tyres, oil, coal, steel and paper. Vietnam exports crude oil, marine products, rice, rubber, coffee, tea, garments and shoes. The exports for 1999 are estimated at about US $ 11.5 billion. Vietnam imports machinery & equipment, petroleum products, fertiliser, steel products, raw cotton, grain, cement and motorcycles. The imports for the year 1999 are estimated at about US $ 11.6 billion. The refrigeration sector includes consumption in the domestic refrigeration, commercial refrigeration, industrial refrigeration and mobile air-conditioning subsectors as summarised in Table 1.3. The consumption is geographically distributed with the main consumption in the north and southern regions - estimates show that these two regions together consume more that 70% of the total consumption of ODS based refrigerants. This is mainly because that these regions contain the two large centres of activity namely Hanoi (in the Northern part of Vietnam) and Ho Chi Minh City (in the Southern part of Vietnam). As mentioned earlier, there is no production of ODSs in Vietnam and all the requirement of refrigerants are met through imports. The table below sets-out the consumption of various CFCs and HCFCs in the refrigeration and air conditioning sector from 1995 to Table 1.2 CFC consumption in the refrigeration and air conditioning sector (All figures in ODP tons) Particulars CFC CFC CFC-115 (as 1.56 available in R-502) HCFC TOTAL Source: Country Programme Implementation Report to the Multilateral Fund Secretariat and survey report for the year The above estimates are from the supply side, i.e., and estimated imports for RAC sector. The CFC freeze level in this sector is therefore 209 odp tonnes. The consumption has seen a high growth during the period beginning 1995 to 1997 after which there is a decreasing trend, mainly due to the following factors. There has been increasing use of non-ods based equipment especially in the domestic and mobile air conditioning sectors. The economic growth, which was affected due the currency crisis in the southeast asian countries. This economic crisis resulted in an overall reduction in the growth in end-use consumption in the refrigeration and air conditioning sector. The latest economic trends indicate that there may be an increase in overall economic growth and business activities in the country, which may in turn result in 6

7 higher consumption of ODSs unless specific actions are taken against use of ODSs. Table 1.3 in below indicates that approximately tonnes of CFCs was consumed in 1999 to meet the needs of refrigeration and air conditioning industries. Table 1.3 Estimation of consumption of CFCs in 1999 in Refrigeration and Air-conditioning sector. Sub-Sector Particulars Metric tonnes CFC-12 Initial charge 2.25 Domestic Refrigeration Recharge Commercial Refrigeration Industrial Refrigeration CFC-12 Initial charge Recharge R-502 Initial charge Recharge CFC 11 Initial charge Recharge CFC 12 Initial charge Recharge Nil Nil 1.94 Nil 1.60 Nil Mobile air conditioning CFC-12 Initial charge Recharge R-502 Initial charge Recharge CFC 11 Total CFC- 12 R-502 Source: Survey data and estimates. Nil Nil The survey was conducted in different parts of Vietnam by the local experts in the refrigeration sector. The survey reports were discussed with the local consultant and sectoral experts to understand the industry structure and industry parameters. This was supplemented by market visits during the mission of international consultant in Hanoi and other select cities in Northern Vietnam. For the purpose of estimates, assumptions were made for estimating the consumption demand in different sub-sectors in the refrigeration and air conditioning sector. The details of the assumptions used for estimating consumption are given in Annex 4. The above consumption differs from the availability of CFCs in the form of imports is mainly due to stocking of inventory of refrigerants by refrigeration suppliers anticipating implementation of regulations. The supply of CFCs is expected to become gradually more difficult with the gradual closure of CFC production facilities in India and China Domestic Refrigeration Domestic refrigerators are produced locally and imported. Joint venture companies carry out the local production, with foreign manufacturers. The current 7

8 production capacity of the refrigerator manufacturing companies in the domestic market is given below. Table 1.4 Production capacity of manufacturers of domestic refrigerators Particulars Refrigerant used Production capacity per year 100,000 Daewoo CFC-12/ HFC-134a Nam Ha Electronic Company CFC-12 20,000 Sanyo HFC-134a 100,000 Carrier HFC-134a 5,000 REE HFC-134a 20,000 Total 245,000 Source: Survey data based on licenses provided. Domestic refrigerators are also imported from Japan, Korea and China. This equipment is imported by a large number of small companies located in different parts of the country. The current population of domestic refrigerators uses both CFC-12 and HFC- 134a. The imports of HFC-134a based domestic refrigerators started only in the last five years, but currently the number of CFC-12 based equipment sold in the country has almost fallen to nil Commercial Refrigeration Commercial refrigeration equipment are primarily found in many small and medium sized enterprises concentrated in urban centres such as Ho Chi Minh City and Hanoi. These enterprises are small shops selling food products and soft drinks. There are few large supermarkets, which use large refrigeration equipment, in the cities. Large food product companies supply this equipment for storage of their products. It was noted that the concentration of equipment in commercial refrigeration sector is mainly in the cities in Vietnam, similar to many other developing countries. A detailed break-down of the population of equipment, break-down of CFC versus non-cfc based equipment, estimated sales and growth are given in Annexure 4. The estimated total consumption by different categories of commercial refrigeration equipment in the year 1999 is given below. 8

9 Table 1.5 Consumption of CFCs in commercial refrigeration equipment Type of equipment Refrigerant Consumption in MT used Chest freezers CFC-12 R Visi coolers CFC Water coolers CFC Display cabinets CFC Total CFC-12 R Industrial Refrigeration ODSs are consumed in industrial refrigeration and air conditioning equipment in Vietnam. Industrial refrigeration equipment are used in air conditioning in large buildings, restaurants, large power generation stations for air conditioning and industrial establishments. Equipment based on non-odss is slowly being installed though in small numbers. During discussions with key personnel in the ministries and the Ozone Cell, it was noted that industrial refrigeration equipment used in food processing and fishing industries use either ammonia or HCFC-22 in their applications. CFC based equipment are used in a few large refrigeration and air conditioning facilities and a few industrial units. Some of the CFC based equipment was installed with technologies imported from Russia. This equipment is currently towards the end of their life or has already been phased out. The details of the assumptions used in estimating consumption in this industrial refrigeration and air conditioning is given in the Annex 4. Based on the assumptions, the estimated consumption in this subsector is given in the table below. Table 1.6 Consumption of CFCs in industrial refrigeration and air conditioning equipment Type of equipment Refrigerant used Consumption in MT Air conditioners in VINATEX CFC-11 CFC Air conditioning CFC equipment in Hochiminh Mausoleum Others* CFC Total CFC CFC

10 Note : Others relate to industrial refrigeration systems used in large refrigeration facilities and air conditioning equipment Mobile Air Conditioning Mobile air-conditioning equipment is used in cars, air-conditioned vans, and refrigerated trucks. Though the majority of vehicles consume CFC-12, the older vehicles, especially refrigerated trucks, consume R-502. The consumption of CFCs in servicing refrigerated trucks is expected to be very low. Most of the CFCs are consumed in car air conditioning for recharging of mobile air conditioners and trucks. Table 1.7 Consumption of CFCs in mobile air conditioning equipment Type of equipment Refrigerant used Consumption in MT Mobile air conditioners CFC-12 R Truck CFC-12 R Total CFC-12 R Service sector There are approximately 450 workshops servicing refrigeration and air conditioning equipment in the country, which are mainly of medium and small size. It is also estimated that about 1800 technicians are engaged in servicing of equipment in the sector. These shops service domestic, commercial and mobile air conditioning equipment. With the increase in population of equipment based on non-odss, increasing number of servicing agencies are servicing equipment based on non-odss. Key information gathered during the survey are presented below: About 52% of the service agencies in the major cities consume less than 50 kg of refrigerant. About 35 % consume less than 20 kg of refrigerant. The above statistics indicate that there are a large number of small and medium scale enterprises consuming ODSs in the refrigeration and air conditioning equipment in the country. About 30% of domestic refrigeration equipment are maintained in the workshops and 70% are maintained through house calls. Most of automobiles are serviced in the workshops. There are a few pieces of recovery equipment and no recycling equipment in these workshops. Only about 30% of total workshops try to recover refrigerants using compressors. After recovering, refrigerants are re-filled directly without any cleaning process. 10

11 The majority of the workshops train their technicians by themselves. Training period can fluctuate from 6 months to 3 years depending on the ability of each individual. Less than 25% of technicians of these workshops have national certificates from formal training institutes. Most of the workshops/enterprises have no leak-detector, only 5 percent of surveyed units have halogen leak-detector and they have not been using any reclaim equipment Recovery and recycling project in North of Vietnam The project was approved at the 20th meeting of the Executive Committee in October 1996, and originally was meant to be a demonstration project only. The project was to be jointly implemented by Australia and UNDP. The total funds approved for this project aggregates to about USD 460,000. Delays were encountered due to institutional problems relating to national implementation modality, which were to be shared between HMS and the Ministry of Industry. By the time these issues were resolved in 1998, it was found that the need for a demonstration project had been overtaken by other events and the focus of the programme was, therefore, shifted to a comprehensive recovery/recycling programme for the Northern and Central parts of the country. After a comprehensive project revision, the Institute FIRI conducted a detailed survey of the refrigeration-servicing sector in Equipment was purchased through the Australian portion of the project in 2000 and the training workshops could finally take place in January The Recovery and Recycling equipment was distributed during these workshops, and at present, the monitoring phase of the programme is ongoing, whereby the quantities of the recovered / recycled refrigerant is checked per machine. Completion of the project and a final report are expected by December JUSTIFICATION FOR RMP The refrigeration and air conditioning sector plays a vital role in Vietnam s economy. The sectors are of key significance to the domestic consumers, tourist industry and commercial organizations including food-processing companies. Vietnam is dependent on imports for both refrigeration equipment and ODSs in the refrigeration sector. The refrigeration technicians in the country have limited knowledge on alternative refrigeration technologies and good practices on refrigeration equipment. Any disruption of the supply/use of refrigerant would have a detrimental effect to these industries and would ultimately impact on the country's income. It is essential that the relevant industries plan their phase out of ODS in a co-ordinated and timely fashion. Further, with high levels of consumption of ODSs in RAC sector and with the legislation expected to be implemented during the year 2001, the support for refrigeration sector through RMP for containment and efficient use of ODS based refrigerants and training on use of non-ods alternatives, is critical. The key activities that need to be covered under the refrigerant management plan include: 11

12 Regulation preparation and implementation Implementation of legislation for controlling the population of equipment in this sector and promotion of drop-in substitutes, which will reduce consumption of ODSs. Modification of legal provisions including review of ODS regulations, incentive schemes, policy document on tariffs, modify the customs regulations and enforcement of the revised regulation on refrigeration sector. Training to enforcement officials for monitoring inflow of ODSs and ODS based equipment. This will be done on finalisation of legislation. Training for technicians Training to support refrigerant servicing sector on better practices, containment of wastage of ODSs and inputs on servicing equipment based on alternatives. Training on recovery and recycling of refrigerant wherever feasible. Monitoring to ensure effective implementation of RMP Monitoring of the activities in the RMP to ensure timely implementation of planned activities in the RMP. In accordance with decision 31/48 of the Executive Committee, this RMP includes projects and activities that will enable the country to meet the 2005 and 2007 CFC reductions. In fact Vietnam plans to phase out the consumption of CFC by ASSISTANCE RECEIVED Vietnam Country Program was prepared with assistance from UNEP and was approved in For support to the refrigeration sector, assistance was provided by UNEP for preparation of RMP. 4. COMPONENTS OF PHASE OUT STRATEGY The critical components of the phase out strategy in Vietnam include policy support to control, monitor and reduce usage of ODSs and training and upgrading for controlling wastage of refrigerants and reduction and emission of CFCs. The key aspects of this strategy are presented below. 4.1 Policy Framework Ban on domestic manufacturing, import or export of equipment in domestic, and commercial refrigeration sectors using CFCs from the beginning of Ban on installation of industrial refrigeration equipment using CFCs from the beginning of

13 Compulsory dismantling of industrial refrigeration equipment using CFCs by the end of the Ban the manufacture, import or export of any motor-vehicle that uses CFC containing automotive air conditioning, effective beginning of Ban manufacture, import, export or sale of any CFC containing automotive refrigeration and air conditioner that contains controlled substances, effective beginning of Ban manufacture, import or export of compressors used in CFC based air conditioning equipment from the year Reduction on import duties for recycling units that can recycle CFCs and HCFCs. Compulsory licensing of technicians to handle equipment based on CFCs. This can be linked to the training program by providing registration certificates to the trainees. The timing of introduction of this shall be decided at a later stage. It should be noted that the timing of the adoption of such policies and legal provisions is difficult to predict with certainty due to the time required to secure the agreement of all parts of the government to new legal measures. 4.2 Emission Reduction Economic incentives to promote the utilization of non-ods alternatives through lower import duties as well as to promote the recovering and recycling of ODS. Currently, the incentive mechanism will be prepared and will subsequently be approved by the Government. Establishment of training program on the containment, recovery and recycling of ODSs. Continuation of existing public awareness programs for informal sector is needed also specifically focusing on ODS phaseout policy measures and requirement of using trained technicians for servicing equipment. 4.3 Training Comprehensive training program, which has been detailed in Annexure 2. This will include a train the trainer programme and training of technicians through the trainer, thus helping in reaching out a larger target audience. Customs Training of enforcement officers, which has been detailed in Annexure 3. 13

14 4.4 Phaseout schedule Based on the above measures, the estimated consumption of ODSs is given in the table below. Table 1.8 ODS phaseout schedule in refrigeration and air-conditioning sector (All figures in MTs) Particulars Phaseout Estimates Nil Nil Figure ODS consumption profile in RAC sector in Vietnam ODS Tons Year Consumption demand Phaseout profile Under the above situation, the ODS consumption in RAC sector is expected to decrease at a fast pace between 2001 and 2005 and ultimately, reduce to nil by For these estimates, it has been assumed that: Training will result in a maximum reduction of 10% of the total consumption of ODSs. Drop-in substitutes will be available for use from the year 2002 and by the year 2006, 100% of the equipment recharged will be using drop-in substitutes. If the drop-in substitutes do not have the levels of reach as estimated, it will be necessary to have a refrigerant bank for catering to the requirement of service tail, in addition to the availability through recovery and recycling project. 4.5 Institutional Framework and Monitoring The Government of Vietnam is committed to achieve 50% reduction in consumption by 2005 and the 85% reduction in consumption by This includes a commitment by the country to restrict imports as necessary to achieve this phaseout. The government plans to complete CFC phase out by 2007./ 14

15 The NOU will be co-ordinating the activities relating to the Refrigerant Management Plan. With its existing network and experience, it will play a leading role in implementing the projects envisaged under this Plan. It will closely co-ordinate with the Ministry of Industry, Ministry of Finance, Customs and enforcement department and the training institutes for implementation of specific activities under this project. 5. ACTION PLAN 5.1 Policy Framework Currently, Vietnam is in the process of getting the regulations approved. HMS and Ministry of Trade (MOT) have implemented measures to control import-export of ODS. Through this promulgation, the customs department will be in a position to control imports of ODSs into Vietnam. These regulations should contain the aspects highlighted in section 4.1 to ensure effective phaseout of ODSs from the refrigerant sector. For finalisation of regulations, the government proposes to hold workshops with key stakeholders in Vietnam. During these workshops, draft regulations will be discussed and inputs will be obtained from stakeholders for finalisation of regulations. These workshops will be used for providing clarification to stakeholders on the regulations and the modalities of implementation. These workshops will indirectly help in creating awareness on ODS phaseout to various stakeholders. The details of the project are given in Annexure Emission Reduction Implemented to date Emissions of CFCs have been reduced primarily due to import of equipment based on alternatives. As explained earlier, the servicing sector is also in the process of gearing up to service these equipment, which are based on non-ods technologies. The RMP is expected to provide support to enable the service sector adopt good practices, which will result in reduction of ODS consumption and also service equipment based on alternatives. 5.3 Training The recommended actions contained in this plan are a combination of training and implementation of specific policy measures to facilitate the phaseout process. There are two areas in which training is required to effectively reduce and ultimately phase-out the use of ODS in the refrigeration and air conditioning industry. Training of refrigeration technicians primarily on good practices, use of non- ODS alternatives and retrofitting. The details of this training programme is provided in Annexure 2. Training for staff of ODS Inspectorate, Customs and NOU proposed on inspection and identification of ODS and ODS containing equipment necessary 15

16 for compliance with the requirements of the legislation (ODS Act). The details are given in Annexure Recovery and Recycling The Government of Vietnam is proposing a new recovery and recycling project to operate in the southern regions of the country to supplement that already operating in the north and centre. This would thereby complete a national recovery and recycling network. Details of the project proposal are to be found in Annexure Monitoring The Government of Vietnam proposes to contract a national consultant to monitor the implementation of the RMP and to assist with the monitoring and reporting of all Montreal Protocol activities in the country. Details of the project proposal are to be found in Annexure 6 6. TIMETABLE The timetable for the proposed activities for implementation of RMPs is given in the table below. Table 1.9 Time table for implementation of RMP activities Particulars Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Modification of legal provisions Implementation of legislative policies. Training the trainers and technicians Training of Customs Officials** Monitoring of the activities in the RMP Recovery and Recycling Project.* * Recovery and recycling project will continue upto ** Training of customs officials will be implemented after implementation of legislative policies. As the policy provisions will be evolving, it is expected to have an overlap with modification of legal provisions and legislative policies. The action plan is outlined above with specific policy measures for reducing the use of equipment based on ODSs, thereby eliminating the increasing reliance of these substances. Since local industry is aware of the upcoming ban deadlines and equipment based on alternatives is already available in the market, it is felt that there may not be major economic consequences. Training of technicians in containment of CFC consumption is a key element in the country achieving its advanced phase out date. The introduction of NOU/ inspectors will assist the country in achieving a smooth transition out of CFCs through monitoring and checking usage of CFC based equipment. 16

17 The continuation of public awareness and information exchange will compliment the above actions. The outreach will be carried out through media publicity targeted at key target respondents, especially the informal sector. In addition to the above, the country proposes to submit two projects in the future. One is a recovery and recycling project for the mobile air-conditioning sector and the other is an incentive scheme for end-users conversion. The above projects will be prepared by UNDP and are expected to cost USD 100,000 and USD 200,000, respectively. Each of these projects is estimated to result in a reduction of 10 ODP tonnes per year respectively. The detailed project reports for the above projects will be prepared and submitted in future. The Government of Vietnam also proposes to approach the Executive Committee to request of additional funding for these projects. 7. PROJECTED COSTS AND FINANCIAL ASSISTANCE The following projects will be submitted for financial assistance from the Multilateral Fund. More details of each project are provided in Annexure 1,2 and 3. Table 1.10 Funds for implementation of RMP activities Activity Modification of legal provisions through workshops with stakeholders Train the trainer program for technicians (Annexure 2) Training of enforcement officials (Annexure 3) Implementing Agency Budget (USD) Impact UNEP 4,350 Stakeholder inputs and finalisation of legal provisions UNEP 242,250 Reduction in servicing consumption by 10% per annum UNEP in 126,892 Effective collaboration monitoring of with Poland ODS import/ exports. Recovery and Recycling Project* UNDP 335, ODP Tons Monitoring of the activities in the RMP UNDP 21,600 Monitoring and review of activities Total 731, IMPACT The successful implementation of the various components of this RMP will assist Vietnam in achieving its phase out targets defined under the Montreal Protocol. As illustrated in Table 1.1, the import level of Annex A refrigerants has been decreasing and the implementation of the actions specified in the RMP are expected to facilitate cost effective decrease of the specific action points. 17

18 Annexure 1 PROJECT PROPOSAL Country: Project Title: Sector: ODS Used: Project Impact: Project Duration: Vietnam Workshop for finalisation of regulations All All sectors To obtain inputs on regulations that will be finalised and implemented subsequently. 3 months Project Cost: USD 4,350 Proposed MLF Grant: USD 4,350 National Coordinating Body: Implementing Agency: National Office of Climate Change in collaboration with enforcement ministries. UNEP 1. Background Vietnam has a CFC consumption of about 500 MT in sectors including the RAC sector. The country is import dependant for both technologies in different ODS consuming sectors and ODSs. The Prime Minister of Vietnam has issued draft decision for implementation of regulations for controlling ODSs and ODS-based equipment. The final set of comprehensive regulations is yet to be discussed with the relevant stakeholders including the industries, ministries and enforcement agencies, and implemented. The Government of recently introduced controls on ODS imports into the country. This will also enable imposition of controls on quantities of ODSs imported into the country. To get the inputs on the draft regulations, the country proposes to conduct a 2 day workshop at Hanoi and HoChiMinh city, with the key stakeholders in the industry, ministries and other relevant agencies. The inputs obtained through such interactions will be used for finalisation of regulations. 18

19 2. Objectives and results These workshops will help the NOU in getting inputs on the draft regulations from the key stakeholders, which will, in turn, expedite the process of finalisation and implementation of regulations. 3. Approach The workshop will be organized in two locations, namely, Hanoi and Hochiminh city. The workshops will be conducted by the ODS officer and will be attended by key stakeholders in the enforcement agencies, ministries, industry and other relevant agencies. It is proposed that the draft regulations will be circulated prior to the workshop to the stakeholders so that it can be discussed at length and inputs can be obtained effectively during the workshop. The inputs will be compiled and appropriately implemented before finalisation of the regulations. 4. Target Group Approximately 60 persons will be attending the workshop both in Hochi Minh city and Hanoi. The constitution of the participants for the workshops will be worked out by the NOU in close consultation with the key stakeholders in Vietnam. 5. Time Frame The project is proposed to be implemented in the third and the fourth quarter of the year Cooperating partners The NOU will co-ordinate the workshop with the key stakeholders identified above and conduct the workshop. 7. Support and Follow up Actions NOU will circulate the final draft of the regulations to the key stakeholders based on their inputs during the workshop. Subsequently, the regulations will be finalized for enforcement. 19

20 8. Detailed Budget Item USD Travel and conveyance for NOU 300 Local participation 3,000 Publication of training documents 750 Communication and other incidental charges 300 Total Project Cost 4,350 Assistance requested from MLF 4,350 Note: The premises of the workshop will be located in the Government offices. 20

21 Annexure 2 PROJECT PROPOSAL Country: Project Title: Sector: Industry ODS Use in Sector: Vietnam Train the Trainer Programme Refrigeration and air conditioning 143 MT Project Impact: To improve the standard of refrigeration technicians through training including R & R and alternative technologies including retrofitting. Project Duration: 24 months Project Cost: USD 242,250 Proposed MLF Grant: USD 242,250 National Coordinating Body: Implementing Agency: National Office of Climate Change and Ozone Protection in collaboration with Technical training institute. UNEP 1. Background Vietnam has about 450 workshops with about 1800 technicians requiring training in the refrigeration and air conditioning sector. The skill level of these technicians varies: some have formal qualifications, but most of them gained their knowledge on the field (informal qualifications). Larger servicing organisations have well-trained technicians and they have gained knowledge through either formal qualifications or informal qualifications. Smaller servicing organisations generally have less qualified technicians and it is in this area where training is required. One of the barriers to the conversion to ozone friendly refrigerants is the lack of knowledge and skills in testing, maintaining and servicing non-ods based systems There are three major technical institutes located in Hanoi, Hochiminh city and Da Nang, which provide formal training to the refrigeration technicians. These institutes are supported by countries in the region for upgrading of infrastructure and for providing training on latest technologies to their students. 21

22 2. Objectives This training course will enable refrigeration and air conditioning workers to avoid unnecessary losses of CFC during the maintenance, servicing and repair of existing CFC based systems and master the technical skills to service and repair non- CFC systems. It will also strengthen the existing skill base of the trainers in the country. It is expected that the technicians will have a complete understanding of the impact of ODS on the ozone layer, the policies that will be implemented by the Vietnam Government to facilitate phaseout and on how their actions can contribute to the protection of Ozone layer. Additionally providing trainers with the necessary skills in this area should encourage conversion to alternative systems. 3. Expected Results The training course will have the following outcomes: Strategies and practices to be implemented in order to minimize emissions of ODS, including during storage, handling, reclaiming and decanting; Demonstration of ODS recovery and instructions on the use of such equipment; Training in procedures to decommission old units; Reduction of CFC consumption due to leaks and poor practices; Training of refrigeration technicians on good practices; Awareness of new refrigerants and their characteristics; Procedures necessary for the conversion of existing systems to non ODS refrigerants including performance testing, oil testing, leak detection, evacuation and servicing will be explained. Practical activities to converting and retrofitting existing ODS-based refrigeration and air conditioning systems to non-ods systems. 22

23 4. Approach The project will be organized in three phases: Phase I: Train the Trainers An international consultant will carry out one Training of Trainers workshop in various parts of the country. It will be implemented and co-ordinated by the NOU in consultation with the relevant training institute. This training will not include more than 30 technicians at a time. The distribution of the trainers will be 50% from the southern region, 35% from northern region and 15% from the central region. This will be a 5-day training program covering all aspects highlighted above. Phase II: Training of technicians in good servicing and maintenance practices in refrigeration. During this phase, the 30 trainers initially trained during Phase I will carry out additional training workshops. Taking into account that there should be no more than 30 participants in each training course, approximately 40 training courses will be conducted. It is assumed that only two thirds of the technicians will be interested in participation in the training program. The remaining technicians are expected to be trained on job with other trained technicians. For ensuring greater reach, it is proposed that three major training centres be established in the institutes in Hanoi, Hochiminh city and Da Nang. These training centres will be supplied with equipment for conducting the training program. When all of the technicians have been trained, a license certificate will be awarded to the technicians who have successfully completed the training course. These certificates will be issued by trainers during their workshop and training given by local technicians in their respective workshops. This certificate will become one of the requirements to be licensed to handle and purchase CFCs. The NOU will keep a register of all technicians that have completed the accreditation course. Phase III: Results of the training will be monitored and evaluated by the NOU. Six months will be allowed for project monitoring and evaluation after completion of phase II. 5. Target Group Approximately 1230 refrigeration technicians and trainers. 23

24 6. Time Frame Activity Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Training of Trainers for good refrigerant management practices Training of technicians in good refrigerant management practices Monitoring activities 7. Co-operating partners The NOU will co-ordinate the local organization of the workshop, including local invitations for participation. UNEP will arrange for the international consultant and the equipment to be supplied. 8. Support and Follow up Actions NOU will ensure waiver of any applicable duties or taxes, and speedy clearance of training equipment and will ensure appropriate dissemination of information about training programme for technicians. 8. Detailed Budget Item US $ Preparation Translation of contractual agreements 500 Shipment of training and display documents 1,500 Bidding, Purchase and shipment of Basic Equipment (3 27,000 sets at USD 9000 each) Customs clearance and local transport of equipment 500 Phase I International Training Experts and resource persons 13,000 (Travel, DSA and fees) Translation cost to local language 1,000 Local Organization including rental, logistics, register of 8,000 participants, invitations etc. Local Travel and accommodation 1,750 Phase II Local Experts to deliver training 12,000 Publication of training documents (1,500 kits x USD 20) 30,000 Local Organisation of 40 workshops including rental, 80,000 logistics, register of participants, invitations etc. Local Travel and accommodation of approximately ,000 technicians Phase III 24

25 Monitoring of project implementation during Phase I and 5,000 II Monitoring, Evaluation and reporting including 5,000 preparation and dissemination as per Excom requirements and training guidelines Contingencies 5% 10,000 Assistance requested from MLF 242,250 Note: The premises of the training institutes will be used for the training program and no incremental cost relating to this has been included in the project costs The details of the basic equipment needed for one set-up indicated in the above table are given below. As mentioned earlier, three set-ups are recommended for this training program. Particulars Units Recovery Units 3 Recovery cylinders 6 CFC/HFC leak detectors 4 2 stage vacuum pump 1 R134a gauges 5 Gauges for other refrigerants 5 Refractometer 1 Ester oil (1litre tins) 6 Note: All equipment is to be donated to the institutes at completion of course. 25

26 Annexure 3 PROJECT COVER SHEET COUNTRY/REGION: Vietnam SECTORS COVERED: PROJECT TITLE: All Customs Training (included as a project in Vietnam RMP). PROJECT DURATION: PROJECT IMPACT: PROPOSED BUDGET: 18 months Reduce CFCs consumption and prevent illegal trade through good and efficient import and export control US$ 126,892 out of the Bilateral Contribution of Poland IMPLEMENTING AGENCY: UNEP in co-operation with the Government of Poland NATIONAL COORDINATING AGENCY: Hydro-meteorological Service of Vietnam (HMS) National Office for Climate Change and Ozone Protection NATIONAL COLLABORATING AGENCY: - General Department of Customs - Market Management Office 1. Background The country is presently in the process of adjusting its ODS consumption to the phase-out schedules required by the Montreal Protocol. Therefore, the institutional structure within the country needs more organised and efficient system to monitor and control the imports of ODS, and specifically CFCs or CFCs-containing equipment. Customs statistics may not be as reliable as need be due to customs officers being untrained in recognising and identifying CFCs, other ODS and ODScontaining mixtures, as well as equipment that may contain ODS and the lack of specific customs codes for certain ODS/mixtures containing ODS, and lack of regulations for their control. As phase-out of ODS progresses in the other countries, ODS, and specifically CFCs, may be smuggled to the country and dumping of the used equipment that is CFCs-dependent may increase significantly. At present the country lacks the technical and institutional capacity to avoid such unwanted imports. Given that the economy is predominantly dependent on imports, it is critical to reduce ODS consumption by restricting imports of ODSs and ODS using substances. 26

27 The country is yet to draft the legislation needed for the establishment of an ODS import/export licensing system, as per decision IX/8 of the Parties to the Montreal Protocol. Relevant decision by the Prime Minister is now awaiting approval. This is expected to happen by 30 June The country has already introduced permits and quotas for imports of halons and methyl bromide. The Government is thus seeking to train its customs officers (and also market management inspectors which collaborate with customs and play a very important role in the country in spotting the illegal trade activities) in order to efficiently implement and enforce the ODS import/export licensing system and have better control of CFCs and CFCsusing equipment upon entrance to the country and also inside the country. There are approximately 5,000 customs officers and 4,000 market management inspectors in the country. It is estimated that by training a total of 200 customs officers and 100 market inspectors, the licensing system can be initiated and effectively enforced. The rest of the customs officers and market inspectors dealing with the system will be trained through the routine training programmes at a later date. 2. Objectives This project thus aims at: 1. Training Customs officers and market inspectors so as to enable them to: know about ozone depletion and its effects; get acquainted with the ODS import/export licensing system and other national regulations related to the phase-out of ODS, and their role in it; identify the substances controlled under the Montreal Protocol and mixtures containing such substances; and identify imported products that may contain ODS, especially refrigerators, freezers and other refrigeration equipment using CFCs; and record imports of ODS and ODS-containing products and report to the National Office for Climate Change and Ozone Protection. 2. Providing CFCs-detection equipment for all major customs entry points in the country. 3. Including the above training within the regular customs training programmes in order to reach the totality of the customs officers. Further training of market inspectors would not be necessary since 100 inspectors trained in the framework of the Project is considered to be enough to ensure the control of illegal trade in ODS and ODS-containing products inside the country's 62 provinces/main cities (at least one inspector per province/main city + some inspectors in the Main Office). 27

28 3. Expected results and criteria for success The expected result is a more efficient implementation of the ODS import/export regulations including licensing system and more efficient control of CFCs and CFCs-using equipment upon entrance to the country and also inside the country. The criteria for success will be the percentage of import/export permits correctly handled by customs and the percentage of targeted random checks performed on suspect imports/stocks by customs and market inspectors. 4. Target audience The training will be directed to customs officers (inspectors, controllers) and market inspectors with at least 5 years experience, and if possible some supervisory functions. They should come from the different major customs entry points and General Department of Customs (a separate Governmental Body) and from provincial market management offices and Market Management Office (situated in the structure of Ministry of Trade) and will be after in charge of training others afterwards. 5. Approach The training will carried out in three phases as given below. Phase I (approximately six months after approval of the project, and only after ODS regulations and import/export licensing system is ready to be put in place). During the first phase a group of selected customs trainers and more experienced customs officers/market inspectors (total 60 officers) will be trained as trainers by an international consultant at 2 workshops held back-toback in two major cities: Hanoi and Ho-Chi-Minh City). This will enable to accommodate participants from different provinces of the country in a most effective manner. Phase II (during six months, after finalisation of phase I): During the second phase, a selected group of customs officers from the most important customs entry points and market inspectors from all country provinces (total 240 officers) will be trained by the local trainers who were trained during the first phase of this Programme (8 training courses). Phase III (during six months, after finalisation of phase II): During the third phase the results of the training will be monitored and evaluated. Final report to be submitted by NOU one month after completion of Phase II The training will be carried through lectures, working sessions and hands-on sessions with the CFCs-detection equipment. 28

29 6. Time frame The project will be developed in 18 months. The training should only take place after the import/export licensing system is ready to be implemented. As per the action plans of the Government in this respect, the two training of trainers Workshops could take place back-to-back in October/November 2001 and the next training courses would follow. Activity Q3 Q4 1 Q1 Q2 Q3 Q4 Phase 1: Train the trainers Phase 2: Trainers to train the other officers Phase 3: Monitoring and control 7. Co-operating partners and their role The project will be implemented under the overall supervision and guidance of the Industrial Chemistry Research Institute, Warsaw, Poland in close co-operation with UNEP and HMS -Vietnam National Office of Climate Change and Ozone Protection (which plays the role of the country's NOU). The NOU will co-ordinate with the General Department of Customs and Vietnam Market Management Office for preparation and implementation of workshops. The Customs Department and Market Management Office will be involved from the start of the project in order to get their input for specific issues in the training agenda. It is suggested that, as these two national agencies are involved in the Project, two national consultants are contracted in order to facilitate the project preparation and implementation and to monitor the results of the project locally. 9. Supporting and follow up actions As a support action, the regulations for controlling and monitoring the support and use of ODSs including import/export-licensing system must be ready to be put in place in order for this training to be useful. The National Office for Climate Change and Ozone Protection and the national consultants may assist in expediting this process if needed. As a follow up action, the General Department of Customs and Market Management Office will provide to the National Office for Climate Change and Ozone Protection a report on percentage of import/export permits correctly handled by customs and the percentage of targeted random checks performed on suspect imports by the customs and market inspectors, three and six months after the training takes place. The results of such reports will be included in the Project Completion Report to the Executive Committee. 1 Starting date assuming that the necessary legislation is in place 29