hcfc phase-out management plan - ministry of environment · which will result in an hcfc phase out...
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Republic of Maldives
Ministry of Housing Transport and Environment
HCFC Phase-out Management Plan
(Developed with the assistance of UNEP and UNDP)
15th
April 2010
2
TABLE OF CONTENT--------------------------------------------------------------2
EXECUTIVE SUMMARY ----------------------------------------------------------4
1 COUNTRY PROFILE .................................................................................................................. 6
1.1 GEOGRAPHY AND PEOPLE ........................................................................................................... 6 1.2 CLIMATE OF MALDIVES .............................................................................................................. 6 1.3 ECONOMY ................................................................................................................................... 7
2 BACKGROUND ON MONTREAL PROTOCOL (MP) IMPLEMENTATION IN
MALDIVES ............................................................................................................................................ 9
2.1 COUNTRY PROGRAMME AND INSTITUTIONAL STRENGTHENING PROJECT FOR THE
IMPLEMENTATION OF THE MP IN MALDIVES ........................................................................................ 9 2.2 IMPACT OF PROJECTS ................................................................................................................ 11
3 LEGISLATIVE AND INSTITUTIONAL ARRANGEMENTS ............................................. 12
3.1 LEGISLATIVE FRAMEWORK ....................................................................................................... 12 3.1.1 The Constitution 2008 .................................................................................................... 12 3.1.2 Environmental Act of Maldives (4/93) formulated under previous constitutions ........... 12
3.2 ODS RELATED REGULATIONS ................................................................................................... 13 3.2.1 ODS Import licensing system .......................................................................................... 13 3.2.2 Status of enforcement of the import licensing system ..................................................... 14 3.2.3 Trade Prohibition and Phase-out ................................................................................... 15
3.3 INSTITUTIONAL ARRANGEMENT ............................................................................................... 15 3.4 LESSONS LEARNED FROM ODS PHASE-OUT .............................................................................. 17
4 DATA COLLECTION AND SURVEYS .................................................................................. 19
4.1 DESCRIPTION OF SURVEY METHODOLOGY ............................................................................... 19 4.2 HCFC CONSUMPTION ............................................................................................................... 20
4.2.1 Import of HCFCs ............................................................................................................ 20 4.3 ALTERNATIVES ......................................................................................................................... 23
4.3.1 Import of HCFC blends .................................................................................................. 23 4.3.2 Other ODS alternatives used in the Maldives ................................................................. 23 4.3.3 Price of HCFCs, HCFC blends and alternatives ............................................................ 23
4.4 INDUSTRY STRUCTURE OF REFRIGERATION AND AIR CONDITIONING SECTOR .......................... 24 4.5 HCFC IN DOMESTIC SERVICING SUBSECTOR ............................................................................ 25 4.6 HCFC IN FISHERIES SECTOR ...................................................................................................... 26 4.7 HCFC IN TOURISM SECTOR ....................................................................................................... 27 4.8 HCFC IN FOOD PROCESSING SECTOR ........................................................................................ 28
5 EXPECTED TRENDS IN HCFC SUPPLY SITUATION ...................................................... 29
5.1 DEMAND FOR HCFCS ............................................................................................................... 29 5.1.1 Refrigeration and domestic Air-conditioning equipment Imports .................................. 29
5.2 POPULATION OF HCFC USING EQUIPMENT IN THE MALDIVES................................................... 29 5.3 ANNUAL CONSUMPTION OF HCFCS IN MALDIVES .................................................................... 34
5.3.1 Servicing ......................................................................................................................... 34
6 FORECAST FOR HCFCS USE ................................................................................................ 35
7 STRATEGY AND PLAN FOR IMPLEMENTATION OF HCFC PHASE-OUT ................ 38
7.1 OVERALL STRATEGY ................................................................................................................. 38 7.1.1 HCFC Phase-out Policies (HPP) and Enforcement: ...................................................... 39 7.1.2 Promotion of ozone climate co-benefits (to be funded through co financing) ................ 40 7.1.3 Enhanced Awareness and Outreach ............................................................................... 42 7.1.4 Plan for gradual reduction of HCFC consumption: ............................................................ 43 7.1.5 Investment component .......................................................................................................... 43
7.2 HCFC MANAGEMENT PLAN ...................................................................................................... 44 Project Documents ........................................................................................................................ 45 7.2.1 HCFC Phase-out Policies (HPP) and Enforcement: ...................................................... 45 7.2.2. Promotion of Ozone Climate co-benefits ............................................................................ 49 7.2.2.1 The Standards and Labeling Program (SLP) for Maldives .............................................. 49
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7.2.2.2 Framework for Efficient and Low HCFC Economic Development (FELHED) for
Maldives ........................................................................................................................................ 53 7.2.3 Enhanced awareness and outreach: .................................................................................... 60 7.2.4 Plan for Gradual reduction of HCFCs ................................................................................ 63
7.3 INVESTMENT COMPONENT ........................................................................................................ 67 7.4 PROJECT COORDINATION MONITORING AND MANAGEMENT .......................................................... 72
Annexes
List of Acronyms
4
Executive Summary
This document contains the HCFC Phase-out Management Plan (HPMP) prepared as
part of the continued work of Maldives towards protection of the Ozone layer. The
HPMP is prepared to enable the Government of the Republic of Maldives to meet the
obligations towards Montreal Protocol and its Amendments.
The HPMP has been formulated following the process and guidance given by the
Meeting of the Parties Decisions and Executive Committee (decision 53/37 [h] and
other relevant decisions). HPMP preparation was started with the approval of the
HPMP preparation funding by the 55th Executive Committee through its Decision
55/22. UNEP was the Lead Agency with UNDP as the Coordinating Agency. A
HPMP initiation mission and stakeholder consultations followed by a thorough survey
of installed quantities and annual consumption of HCFCs in Maldives was mounted to
prepare a HPMP to achieve the Montreal Protocol accelerated phase-out schedule
(MOP Decision XIX/6) and to establish the HCFC baseline for the country, based on
the average consumption in 2009-2010. The survey covered the whole of Maldives
and surveyors physically visited and inspected more than 50 resorts and servicing
workshops. The Plan is developed in a single stage approach aimed at achieving
complete phase-out of HCFCs by 2020 and keeping an allowance of 2.5 percent of
the baseline consumption for meeting servicing needs till 2025. The plan will impose
an import ban on HCFC based equipment by 2013 2015. The country is determined to
lead the race in carbon neutrality and HCFC phase-out, and become an example for
other developing countries by achieving very early phase-out.
The planned activities and implementation of the HCFC Management Phase out Plan
is through:
Policy instruments (Preparation and enactment of HCFC specific regulations under
the new Environment Act; establishment of an Import Quota System; Mandatory
registration of importers and pre-import authorization; Mandatory reporting by
importers, introduction of green tax incentives and disincentives on HCFC and HCFC
containing equipment and promotion of climate ozone co-benefits and limit demand
of HCFC, and equipment replacement programme. This will lead to gradual
reductions and complete HCFC phase-out by 2020 and HCFC based equipment
import ban by 2013 or 2015 at the latest.
Projects: 1) HCFC phase-out policies and enforcement, 2) Promotion of ozone
climate co-benefit activities including: (a) Standards and Labelling Programme (SLP),
(b) Framework for Efficient and Low HCFC Economic Development (FELHED), 3)
Awareness and outreach activities 4) Plan for gradual reduction, 5) Project
coordination, monitoring and management, 6) and investment projects (a) reclaim
programme (b) End-user retrofit/ replacement pilot incentive programme.
The non investment component of the project will be implemented by UNEP and the
investment component by UNDP.
HPMP cost estimation from 2010-2020 with anticipated funding sources is given in
Annex 1. The total estimated cost of the HPMP is US$ 1,644,500 from Multilateral
Fund and non-Multilateral Fund sources. Anticipated funding sources for the HPMP
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are Multilateral Fund, the Government of Maldives and other sources. UNEP will
explore funding sources for the ozone climate co-benefit projects included in the
HPMP. Total fund requested from the MLF for the entire HPMP (2010-2020) for the
non investment component is US$ 680,000 and US$ 420,000 for investment
component and the total fund request from MLF is US$1,100,000.
Overview of the budget
Implementing
Agency
Anticipated total funds in US$
MLF Co-financing
Government
Co-financing
Others
UNEP 680,000 157,000 362,500
UNDP 420,000 10,000
Total 1,100,000 167,000 362,500
Total fund requested from MLF including implementing agency fee
Implementing Agency Project Cost
US$
Agency Fee
US$
Total US$
UNEP 680,000 88,400 768,400
UNDP 420,000 31,500 451,500
Grand total 1,100,000 119,900 1,219,900
This HPMP represents (a) an accelerated phase out commitment by the Government
of the Maldives beyond that required by Decision XIX/6 of the Montreal Protocol,
which will result in an HCFC phase out ten years before other Article 5 countries (b)
the first Total Phase Out Plan for HCFCs under the Multilateral Fund (c) commitment
to seek significant levels of co-financing from non-Multilateral Fund sources for the
climate benefits associated with the HCFC phase out.
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Country Profile
1.1 Geography and people
The Republic of Maldives is located at the centre of Indian peninsula on top of a 960
km long submarine ridge Ocean and consists of approximately 1,190 coral islands
naturally grouped in a double chain of 26 atolls, spread over roughly 90,000 square
kilometres (Figure 1). For administrative purposes the islands are divided into 19
atolls, and recently as part of the ongoing decentralization process they are further
divided into 7 provinces. The largest island of Maldives is Gan, which belongs to
Laamu Atoll or Hahdhummathi Maldives. Addu atoll the westernmost islands are
connected by roads over the reef and the total length of the road is 14 km (9 mi). The
capital of Maldives is Male, located in the central part of Maldives in North Male
Atoll.
Maldives is one of the lowest lying countries in the world. The average height of the
islands will not exceed 1.7m above mean sea level. Hence Maldives is recognised as
one of the most vulnerable countries in the context of climate change and sea level
rise. It is widely accepted that if the sea level rises one meter as predicted by the
IPCC, a large part of the country will sink and vanish from the face of the earth.
The population of Maldives has increased rapidly during the last few decades.
However with a population of nearly 309,000 the country still remains one of the
smallest independent nations in Asia.
About a quarter of the population is resident in Male the capital. Outside Male the
largest population is in Hithadhoo, Addu Atoll, Fuamulah and Kulhudhufushi in Haa
Dhaalu Atoll. The rest is dispersed sparsely in the rest of the 200 inhabited islands.
1.2 Climate of Maldives
The Maldives has a tropical climate with warm temperatures year round and a great
deal of sunshine, hence it‟s the perfect destination for tourist looking for sun, sea and
sand. The warm tropical climate results in relatively minor variations in daily
temperature throughout the year. The hottest month on average is April and the
coolest, December. The weather is determined largely by the monsoons. The
following Table 1 shows average monthly temperature and precipitation days.
Table 1. Monthly average temperature and precipitation days (Source: National
Meteorological Center)
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1.3 Economy
The Maldives economy has been growing at an annual average of 10% for the past
two decades. Tourism is the main industry, contributing close to 20% of the GDP.
Jan Feb Mar Apr Ma
y
Jun Jul Au
g
Sep Oct No
v
De
c
Year
avg.
Average high °C 29 29 30 31 31 30 31 30 30 30 29 29 29.9
Average low °C 26 26 27 27 27 26 26 26 26 26 26 26 26.3
Avg. precipitation
days
4 4 7 8 12 10 10 12 12 15 12 12 118
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Commerce and Fisheries follow close behind. Refrigeration and air-conditioning
sector has seen an exponential growth because of tourism and fish exports.
Annual average GDP growth is 5.7% and GDP per capita is 2908US$. Maldives was
lifted from being one of the 20 poorest countries in the 1970s to the developing
countries status.
The small size of its economy, which is largely dependent on tourism and fisheries,
makes Maldives vulnerable to external shocks as witnessed by the economic recession
following the tsunami of December 2004. In spite of the relatively low death toll after
the tsunami, the country‟s economy was badly shaken.
Table 2: A quick glance at important statistics of Maldives
Location, Area, population and Climate
Location Latitude : 7° 6' 35" N to 0° 42' 24" S
Longitude : 72° 33' 19" E to 73° 46' 13" E
Area Area (including sea) 115,300 sq.km
E.E.Z 859,000 sq.km
Climate Annual rainfall (mm) 2,073.1
Average daily min. temp. (°C) 25.2
Average daily max. temp. (°C) 31.0
Population Total 309,575
Male 156,714
Female 152,861
Tourism Tourist arrivals 675,889
No. of registered resorts/marinas 94
Occupancy rate 86.1
Beds in operation 17,533
Fisheries
Total No. of Mechanized Fishing vessels: 123,825
Total Fish Catch in 2007 („000 MT) 143.6
Export Frozen Tuna in 2007 MT 367.4
Export chilled reef fish in 2007 MT 321
Export fresh/chilled Tuna in 2007 MT 218.8
GDP Annual growth rate 5.7%
GDP per Capita (US$) 2908
Exchange rate Buying rate US$1.00 12.75 MRF
Selling rate US$ 1.00 12.85 MRF Source: Maldives at a Glance 2008, and Statistical Yearbook of Maldives 2009 (Department of
National Planning, Ministry of Finance and Treasury, Tourism Statistics)
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2 Background on Montreal Protocol (MP) implementation in Maldives
Maldives is classified as an Article 5 country of the Montreal Protocol, and has
ratified the following agreements on the specified dates below:
Table 3: Status of ratification/accession of the Ozone Agreements for the Maldives
Agreement Entry into force Date of ratification
Vienna Convention 22/09/88 26/04/88 (Ac)
Montreal Protocol 01/01/89 16/05/89 (R)
London Amendment 10/08/92 31/07/91 (R)
Copenhagen Amendment 14/06/94 27/09/01(R)
Montreal Amendment 10/11/99 27/09/01 (R)
Beijing Amendment 25/02/02 03/09/02 (Ac)
Note: R: Ratification Ac: Accession
2.1 Country Programme and Institutional Strengthening Project for the Implementation of the MP in Maldives
The Country Programme (CP) was approved at the 10th Meeting of the Executive
Committee of the Multilateral Fund for the Implementation of the Montreal Protocol
(6/1/1993). The CP was prepared in April 1993 by the Ministry of Planning and
Environment, with the technical assistance of the Industry and Environment Program
Activity Centre (IEPAC) of UNEP. The initial action plan was based on government
and industry actions. Government actions consisted of policy, legislative and
incentive measures including control of importation of ODS and their products,
establishment of Ozone Layer Fund (OLD), labelling of ozone-friendly products, duty
exemptions for recycling and recovery equipment, government subsidy at 30% of cost
for every recycling recovery units. Industry actions consisted of implementation of
projects in the refrigeration sector.
Although the establishment of OLD, labelling of ozone friendly products, duty
exemptions for recycling and recovery equipment and the proposed government
subsidies in the CP are mentioned these actions did not take place. This was primarily
because of the departure of the trained ozone officer at that time which had an adverse
impact on ozone activities until late 1999.The ozone cell of the Maldives started
functioning more efficiently in 2000 and an ozone officer was trained at Colombo in
2000 with the assistance of UNEP and bilateral cooperation between Maldives and Sri
Lanka. These issues were later addressed to some extent by the new Ozone Officer.
The first (ISP), based on the approved Country Programme, commenced in January
1995 and continued until the end of 2001. Since then 4 ISP‟s have been approved and
implemented in the Maldives. The ISP mainly includes operations of the ozone office,
public awareness, information exchange, training and monitoring programmes. Under
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the ISP, a National Ozone Cell was set up at the Environment Research Centre (ERC)
of the Ministry of Home Affairs, Housing and Environment. The ERC later came
under the Ministry of Environment, Water and Energy. Since 2009, the functions and
the name of ERC have been changed to Environmental Protection Agency (EPA) and
it is under the Ministry of Housing Transport and Environment. The NOO, which is
now based in the Ministry, facilitates and monitors the implementation of the Country
Programme, and coordinates with the relevant ministries, institutions and other parties
involved in the projects. Status of Montreal Protocol related projects that have been
approved and implemented up to date are given in Table. 4.
Table.4: Status of approved projects
Project name Approved
Excom Meeting
Status
Country Programme 10th
meeting Completed
First ISP 12th
the meeting Completed in 2003
Second ISP 37th
meeting Completed
Third ISP 44th
Meeting Completed
Fourth ISP 50th
Meeting Completed
Fifth ISP 56th
Meeting Ongoing
Refrigerant Management
Plan
a- “Train the trainer
program for
servicing
technicians” UNEP
b- Training of
Customs Officials
and NOU staff”
UNEP
c- “End-user
awareness and
Incentive
Programme”
Implemented by
UNDP
50th
meeting Partly completed
Project activities were successfully
implemented by UNEP and ERC
and completed in 2005. 100
technicians were trained and 1
Recovery unit was provided for the
training centre.
Project activities were successfully
implemented by UNEP and ERC
and completed in 2006. A total of
140 customs officers were trained
and 9 CFC detecting toolkits were
provided for the customs.
Part of the project including
procurement of the equipment and
training was conducted for the
MAC service sector. Also some of
the recovery and recycling
equipment were provided to the
Faculty of Engineering of the
Maldives College of Higher
Education. However original
conversion of the mobile air
conditioning systems and incentive
part of the project is ongoing.
CFC Terminal Phase-out
Management Plan (TPMP)
53rd
meeting Ongoing. 67 technicians trained and
5 CFC identifiers provided to
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Project name Approved
Excom Meeting
Status
Maldives Customs Services Preparation of a HCFC
phase-out management
plan
55th
meeting Ongoing
2.2 Impact of Projects
The overall impact of the above-mentioned projects has been timely reduction of ODS
consumption and complete phase-out of CFCs according to the targets set by the
Montreal Protocol. Maldives was able to reduce its CFC consumption from a base line
of 4.6 MT to zero in 2008. With the adoption of regulations on a total import ban on
CFCs in 2008, Maldives has completely phased-out CFC consumption in the country
two years ahead of the Montreal Protocol schedule.
In 2002 Maldives was found to be in non-compliance with its obligations to the
Montreal Protocol as the total ODS consumption exceeded the baseline set by the
Protocol. The government prepared a Plan of Action and submitted to the 30th
meeting of the Implementation Committee of the Montreal Protocol. On the
recommendation of the Implementation Committee, the 14th
MOP in its Decision
XIV/26 approved the Plan of Action. In order to consume the imported amount and
to control the price, the government took over the CFC-12 stock from the importer,
started reselling CFC-12 and banned import of CFC-12 from 15th
April 2004 until
December 2005, per Public announcement No. 10-ERC/2004/29 on 15th April 2004.
In 2006, the Environment Research Centre (ERC: currently EPA) of the Ministry of
Housing Transport and Environment (MHTE) made a contract with only one
importing company, i.e. REFCOOL Pvt. Ltd, to import the amount of CFCs allowed
by the Montreal Protocol as per the Plan of Action. The importer was selected through
a public bidding process. All the other users were instructed to buy from the company
at an agreed price between the ERC and the company.
To address this special situation, Maldives was able to put into place the following
regulatory measures to control imports of CFCs and be in compliance:
- The NOU was able to take over and manage the access CFC-12 stock
that was imported into the country as per the Plan of Action submitted
to the 30th
Implementation Committee. The NOU was able to consume
the stock and control the price by this action.
- Impose and enforce a temporary import ban on CFCs from 15th
April
2004- December 2005.
- Re-allow import of CFC-12 (only the allowed quota) as per the Plan of
Action, and contract a single company to import the quantity needed
for the country.
- Sell the re-allowed imported CFC-12 stock in the country only through
the NOU.
- Reduction in availability of CFC based equipment though the import
ban on CFC-11 and 12 containing equipment in May 2003.
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This has been a remarkable achievement of the Maldives despite having been in non-
compliance in 2003 because of excessive exports by one of the producing countries.
More specifically, the projects generated the following outcomes and impacts:
Increased awareness and action to convert to non-ODS based technologies;
Reduction in availability of CFC based equipment, and
Conversion of CFC based equipment to non-CFC alternatives.
The policy infrastructure and enforcement capability will be a useful resource for
implementation of HPMP.
Though the above-mentioned projects have had considerable achievements in
eliminating CFCs, they have had little – if any – impact on HCFCs which continued
its growth during CFC phase out. Accordingly, this HPMP proposes specific project
activities as well as incremental additions to the existing institutional, technical and
policy infrastructure to sufficiently address the control measures related to HCFCs.
3 Legislative and Institutional Arrangements
3.1 Legislative Framework
3.1.1 The Constitution 2008
The Clause 22 of the Constitution of the Republic of Maldives 2008, enacted on the
7th August 2008, states that “The State has a fundamental duty to protect and preserve
the natural environment, biodiversity, resources and beauty of the country for the
benefit of present and future generations. The State shall undertake and promote
desirable economic and social goals through ecologically balanced sustainable
development and shall take measures necessary to foster conservation, prevent
pollution, the extinction of any species and ecological degradation from any such
goals.”1
Clauses 270 and 271 provide for enactment of regulations to protect
environment under the new Constitution.
3.1.2 Environmental Act of Maldives (4/93) formulated under previous constitutions
The Environmental Protection and Preservation Act of Maldives (4/93) enacted in
2003 provides the necessary legal framework for the protection and preservation of
the Environment. MHTE is the focal point for implementation of this Act as well as
development of policies, regulations and guidelines under this Act and plays a
prominent role in the overall enforcement procedures.
The Act gives MHTE certain statutory powers for its enforcement. In this regard, the
ministry could levy fine up to 100 million Rufiya (US$ 7,782,101.16) for any
breaches of the law depending on the magnitude of the violation. The Ministry also
has authority either to discontinue or to completely stop projects that are having
serious implications on the environment.
1 Functional Translation of the Constitution of the Republic of Maldives 2008.
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At the time of preparation of this HPMP, a new Environmental Act has been drafted
by MHTE in close coordination with UNEP. The new Act will be dispatched for
discussion in the Parliament in the coming months. Part VII, Section 89 of the draft
act is designated to the protection of the Ozone Layer. The draft act gives necessary
legal power to the Environmental Protection Agency (EPA) to formulate strategies,
issue the guidelines and regulations, and institute programmes to control and phase-
out ODS needed to protect the ozone layer and the stratosphere as well as to reduce
and minimize risks to human health created by the degradation of the ozone layer and
the stratosphere. UNEP‟s Compliance Assistance Programme (CAP) is working
closely with UNEP‟s Legal Officer and Maldives Ministry of Environment and
Attorney General‟s office to get the HCFC phase out schedule and related regulations
included in the draft environmental Act of Maldives. UNEP/CAP will assist the
government of the Maldives in development of HCFC-specific regulations once the
Environment Act is passed by the Parliament.
3.2 ODS related regulations
3.2.1 ODS Import licensing system
The existing Import Controls System implemented in the Maldives covers all the
ODSs including HCFCs and blends. The existing system became effective on 1st
April 2002 with the public announcement No A-14 2002, dated 20th March 2002, that
was issued by the Ministry of Trade and Industries. Under this regulation, no ozone
depleting chemical shall be allowed to enter the country without registering with the
NOU and obtaining an import permit from MHTE for each shipment individually.
Licenses should be renewed annually. All of the HCFC imports to the country have to
go through the procedures described below, just as CFCs and other ODSs do.
A flow diagram of procedures for ODS import and distribution through the licensing
system is shown in Figure 2.
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Figure 2: Procedure for obtaining ODS import license
3.2.2 Status of enforcement of the import licensing system
The import licensing systems has been implemented effectively in the Maldives since
April 2002. The licensing system has been enforced and monitored in close
coordination with the concerned authorities, namely: Maldives Customs Services,
Ministry of Trade and Economic Development, Ministry of Defense and the
MHTE/NOU.
Since the establishment of the system, no ODS has entered into the country without
obtaining prior permission from the concerned authorities. The normal practice
during the CFC phase out was that since quantities required were very small, an
ODS Import License Application
Submission to NOU
Duly approved license
Quantity and type of
ODS
Evaluation
Notification to MTED Notification to
Maldives
Customs Services
Registered ODS Importer
More information
needed
Importation
Customs Clearance
Distribution by importers
Use Sale
Reporting to NOU
Rejected
Resubmission
15
importer brought ODSs to the Maldives ports without obtaining prior permission. The
importer would on receiving goods at the port would declare at the customs when the
importer would be asked to complete proper documentation including the import
permit from the NOU and other line ministries. The goods will not be released unless
complete documents are presented to the Customs. The licensing data shows that the
number of companies obtaining refrigerant import permit is increasing. Registered
importers in 2006 were 37, while in 2007 and 2008 they were 44 and 50, respectively.
There is no control over the number of companies that can obtain refrigerant import
license, seems to be the main reason for increase in the number of importers every
year.
Once the draft Environmental Act is passed through the Parliament, the existing
licensing system needs to be amended and quota systems for all ODSs including
HCFCs should be created and implemented with a limited number of registered
importers.
3.2.3 Trade Prohibition and Phase-out
Ban on the importation of four ODSs, namely: Halons (1211, 1301, 2402), Methyl
chloroform, Bromochloromethane, Methyl bromide, and Carbon Tetrachloride
became effective in January 2003, through Public announcement No. 10ERC/2002/44
on 19th December 2002. Another ban on the importation of equipment containing
CFC-11 and CFC-12 followed a year later with Public announcement No A-28-
2003/44, 27th
May 2003. Items banned under this legislation included refrigerators,
deep freezers, water coolers, mini-bars and motor vehicles manufactured before 1998
and containing CFCs in their air conditioning units.
The established ODS licensing system is successful in tracking and registering all
imports into the country. However, there are some shortcomings in the licensing
system, including the following:
a) The trade bans and other regulatory measures imposed through the system is
by means of public announcements. There is no specific law on ozone
protection other than the broad environmental act which reflects environment
very broadly. Therefore there is no solid legal status for the regulations.
b) The general public is not aware of various ozone related regulatory measures,
therefore, many importers realize existence of such regulations only after
bringing the consignment.
c) Record keeping and maintenance of the licensing system is poor. It is not
computerized, hence loose papers, forms and documents could easily be
misplaced, misfiled or even lost during the filing process. Therefore, revisiting
the cases are difficult in many instances.
d) At present there is no limit for the total number of companies that would be
eligible to obtain refrigerant import permits. This poses an obstacle when it
comes to limiting the amount of imports in the future.
3.3 Institutional Arrangement
The MHTE is responsible for the implementation of the Montreal Protocol in the
Republic of Maldives and oversees the implementation of the ozone related projects
in the country. The EPA acts as the national coordinator on programmes in drawing
16
up policies and devising administrative measures for the implementation of the
Montreal Protocol. The National Ozone Unit (NOU) facilitates and coordinates ODS
phase-out projects and policies. Recently the Ozone Unit has been shifted under the
direct supervision of the Ministry and is now housed in the Ministry itself. This action
highlights the mainstreaming of ozone protection activities within the mandate of the
Ministry.
In 3rd
June of 2001 a Technical Advisory Committee (TAC) on Montreal Protocol and
Vienna Convention was established under the supervision of the then Ministry of
Home Affairs and Environment, by the order of the office of the President. The TAC
includes representatives from the Ministry of Trade and Industries, the Maldives
Customs Services, Ministry of Tourism, the Ministry of Fisheries, Agriculture and
Marine Resources, the Attorney Generals Office, and the Ministry of Defense and
National Security. Among the mandate of the committee are the following:
To advise the government on technical and legal issues related with
establishment of a licensing system and a quota system in Maldives.
To advise the government on prevention of use of CFC-11 in cleaning air-
conditions and refrigerators.
To advise on use of alternatives of ODS based equipment in Maldives.
To advise on establishment of a reliable data collection mechanism on ODS
and ODS based equipment.
TAC is chaired either by the Minister of MHTE or the head of EPA. Institutional
arrangements to implement the Protocol in the Maldives are shown in Figure 3.
Figure 3: Institutional framework for the implementation of the Montreal Protocol
Ministry of Housing Transport and Environment
Office of the President
Ministry of Housing Transport
and Environment (also in
charge of climate change and
Energy)
UN Implementing
Agencies
NGOs
Ministries,
Stakeholder
(consumers and
Importers)
Advisory Committee on Implementation
of MP & VC
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3.4 Lessons learned from ODS phase-out
Implementation of the above projects in the last 15 years have provided many
valuable lessons that can be of immense value to the preparation and implementation
of the HPMP. One of the most important lessons learnt from CFC phase out has been
the criticality of the institutional structure in implementation of phase out projects.
Maldives institutional framework in the period 1994-1999 was not working very
smoothly with number of ozone officers with frequent changes in ozone officers.
Phase out efforts during this time suffered substantially. Once the Ozone Office was
set up firmly, Government efforts were strengthened. During HPMP implementation,
therefore, Institutional Strengthening will play a very important role.
Existing regulations, designing and implementation of ozone related projects,
including awareness activities, are executed with the endorsement and approval of the
Technical Advisory Committee on Montreal Protocol and Vienna Convention.
Endorsement of the committee on ODS related decision gives strength to the phase
out efforts and facilitates smooth and effective promotion and implementation of
phase out activities by various national level stakeholders. Members in the committee
from different ministries serve as focal points for the NOU. Therefore ODS control
was executed with very close cooperation from all the members of the committee.
Involvement of national stakeholders and other Line Ministries is an important lesson
learnt from CFC phase out. This stakeholder involvement will need to be strengthened
during the HPMP implementation as HCFC phase out will see involvement of new
stakeholders especially in the energy and climate change sector involving ministries
engaging in standard settings, energy, climate change, planning, chemicals and waste.
Import bans imposed on Methyl bromide, halons, Methyl chloroform,
Bromochloromethane and Carbon Tetrachloride were fully enforced. The
Government was successful in taking over and managing and controlling the excess
amount of CFC-12 that was imported into the country and reselling it as per the Plan
of Action submitted to the Implementation Committee (Decision XIV/6). Together
with the comprehensive legal framework, awareness activities, technician and
customs training activities helped the country to promote non-CFC technologies and
import of ODS alternative-using equipment.
The reduction and control was achieved through legal and administrative procedures.
Maldives was compelled to go through such legal measures due to the fact that the
key project on CFC in the Refrigerant Management Plan (RMP), “End-user
Awareness and Incentive Programme”, is not completed yet as planned due to
implementation delays and other issues. The programme was designed to address the
Mobile Air-Conditioning (MAC) sector, the largest consumer of CFCs in Maldives.
Although at present CFC is controlled there is still some concern that the need for
CFC may arise if many of those MACs are needed to be serviced.
Maldives is an import-dependent country. The CFC reduction that took place in other
countries significantly contributed in reducing the availability of CFCs in the
Maldives‟ domestic market. Therefore, the end users were compelled to convert or to
retrofit their equipment. Though these conversions were very much helped by the
good practices as well as train-the-trainers training provided through the RMP and
TPMP, the market availability of alternatives and CFCs also played a very important
18
part in the CFC phase out. This is an important lesson to keep in mind during the
HPMP implementation.
Awareness activities such as targeted trade fairs exhibiting alternatives available in
the market, consumer awareness campaigns etc. contributed significantly to reducing
the import of CFC based equipment by traders. Consumer awareness led people to
choose non CFC equipment and subsequent market demand reduction of CFC based
equipment. During the HCFC phase out, this approach will be critical to encourage
the adoption of more energy efficient non HCFC technology by the consumers.
Capacity building of technicians and customs and enforcement officers played a very
important role in the CFC phase out. RMP and TPMP activities provided training for
technician and customs and law enforcement officers. Technician training was
provided to 100 technicians in the servicing workshops that contributed in
improvement of refrigeration services and adopting good practices in the domestic
refrigeration and AC servicing sector. Training of more than 140 law enforcement
officers from the customs, police and National Security and Defence Forces
contributed to implementation of ODS regulations during importation. Fourteen (14)
Sets of ODS identifiers were provided through the projects. The overall result of these
activities are control of ODS imports, enforcement of local regulation and subsequent
timely phase-out of ODS from Maldives. Through these measures and activities,
Maldives was able to overcome the very unique circumstances faced by the country
and to achieve the phase-out even earlier than 2010. High degree of strengthening of
such approaches during HPMP will assist Maldives to meet their phase out schedule
of 2013 and 2015. Government of Maldives realizes that time available for
implementing such approaches is much shorter than what was available for phase out
of 4 MT of CFCs.
19
4 Data Collection and Surveys HCFCs have been in use as a refrigerant in Maldives for more than 30 years in the
refrigeration and air-conditioning and servicing sector. HCFC-141b, HCFC-123 and
HCFC-22 are the most used in the country, but HCFC-141b and HCFC-123 were used
in very minor quantities for flushing of equipment. Maldives does not produce
HCFCs, therefore the only source of HCFC and other refrigerant used in the Maldives
is through imports. HCFCs are used in the Maldives only for servicing of equipment
in the fishing, tourism and food processing industry and servicing of
household/commercial refrigeration and air-conditioning units.
To prepare the HCFC Management Plan a nationwide survey was conducted to assess
the amount of HCFC consumption in Maldives according to the guide lines outlined
in the Executive Committee (Decision 53/37 (h)) to achieve the targets of the new
accelerated phase-out schedule set out by the Meeting of Parties (Decision XIX/6) to
the Montreal Protocol. The inventory is necessary for establishing the new baseline
for the country, based on the average consumption in 2009-2010 and to calculate the
freeze level in 2013 and 10 percent reduction in 2015.
4.1 Description of Survey Methodology
The Survey provides relevant information on installed number of HCFC using
refrigeration and air-conditioning equipment and subsequent quantities of HCFC
annual consumption in the period 2006-2008 year and forecast for needs/consumption
until the year 2015. The survey is based on the "UNEP Data Collection Questionnaire
for the Preparation of HCFC Phase-out Management Plan". The survey forms were
adjusted and necessary changes made to address the local condition and specific
sectors applicable to the Maldives.
Apart from the survey, various other sources were used to collect data on all
refrigerants and equipment including: census data, import data from the customs and
importers, licensing system, tourism and fisheries statistics, Article 7 and CP data
reported by the country, RMP and TPMP and other relevant documents. These
sources were used to corroborate from top down and bottom up the figures collected
during the extensive survey. During the survey, the CAP team and the national survey
team constituted by the Ministry physically visited and gathered information from
more than 50 tourist resorts, food processing industry, ships and trawlers and
servicing workshops. The CAP team also did a site inspection in January 2010 of a
big Maldivian Fish transporting ship “MV. Baroasa” docked at the Bangkok port.
This visit was done to understand the whole life cycle of ship maintanance and
practices adopted by the shipping industry in Maldives. Therefore, the surveyors have
a firsthand experience on the status of HCFC consumption and its applications in the
Maldives.
The number of installed HCFC and other refrigerant using equipment in
the country is estimated based on:
o Collection of data from different sources - Customs Administration
(import of equipment), Industry, Importers of equipment, end users,
the NOU and statistical annual publications from the National Census,
tourism and fisheries statistic, trade and customs statistics.
20
o The latest census data available on household refrigeration and AC
equipment used in the Maldives is of the 2006 housing statistics
published by the Ministry of Planning and National Development.
o Based on these statistics and increase in population the total number of
equipment are calculated for the households and compared with the
annual imports for local supply.
As for the tourism and industry, the total amount of AC units used in the
sector is estimated by developing a formula using the number of rooms of
each resort, number of staffs‟ ratio to tourist in each resort, the survey data,
import data, Tourism Ministry statistics and annual reports and annual
increase rate, etc. The formula used for the calculation of air-conditioning
units in tourism sector is given below:
o Total number of rooms, staff in resorts in Maldives as maintained by
the Ministry of Tourism.
o Total number of rooms + (Total number of rooms x 1.5/5), where 1.5
is the staff tourist ratio generally used in the Maldives and 5 is
assuming that for every 5 staff working in the resort will have an air-
conditioning unit. This will cover the AC units in the public areas and
other common areas, executive and senior staff rooms in the resort.
o The formula has been verified by using the bed capacity increase in
resort and annual import for the tourism sector, and found to be in
agreement with the data. For example during the survey, the CAP staff
member visited the Club Faru resort with a total capacity of 105
rooms. On applying the above formula the resort has 135 AC units
which was also equivalent to the inventory taken during the field visit.
There is no production of ODS or ODS using equipment in the Maldives.
It means that the Import is equal to the Consumption. Import of HCFCs is
partly controlled by the import licensing system, which only includes
obtaining the import permit from EPA of the Maldives.
Estimation of the real needs is based on collectеd data from importers of
HCFCs, end users, service shops etc, and estimated annual leakages.
Forecast of future needs (level of consumption in 2012) is based on annual
consumption, estimated needs and expected increase of installed
quantities.
4.2 HCFC Consumption
4.2.1 Import of HCFCs
All HCFCs and ODSs available in Maldives are imported. Primarily, these imports
are from Asian Countries, mainly Singapore and China. The total quantity of Annex
C Group I substances imported in the last few years are given in the table below.
Table 5: Article 7 data reported to the Ozone Secretariat 2001 2002 2003 2004 2005 2006 2007 2008
HCFC* ODP tonnes 1.7 1.2 2 2.2 2.7 3.3 4.4 3.7
HCFC in MT 31 22 36.4 40 49.1 60 80 67.2
Source: Article 7 Data (the above data have been reported to Ozone Secretariat).
Twenty five (25) companies registered in the EPA to import HCFC in 2008, but only
4 companies account for 88% of the total imports of the country. These are the two
21
main suppliers, Bright Brothers (37%) and Refcool (36%) and the two main
companies involved in fisheries industry, Maldives Industrial Fisheries Company
(MIFCO) (10%) and Horizon Fisheries (5%). The names of the importers and the
imported quantities of HCFC from 2006- 2008 are given in Annex 2 to the report.
Large numbers of companies are end users who also directly import HCFCs, though
in very small quantities.
Table 6: Total yearly consumption of Refrigerants in (Kg) (Source Maldives
Customs & EPA)
Refrigerants 2006 2007 2008
CFC-12 1,060 992.8
HCFCs
R-22 56,828.07 7,9914.62 67,424.27
R-123, 90.72 100
R141B 235.2
Sub Total 56,828.1 80,005.3 67,759.5
HCFC Blends*
R-402B
212.25
(112.5)
R-406A 81.5(78.24)
R408A 68(32) 218 (102.5)
R-409A
212.2
(159.1)
R-502
136(66.36)
[69.6]
Sub Total (blends) 348.25 68 711.7
Total HCFC (including
blends) 57,006.9 81,392.3 68,196.9
Others (R-134a, R-
23,R404A, R407, R-
407A, R-407C, R-
410A, R413, R417A,
R-418, R507, R-717) 9,414.2 18,942.2 8,064
Total 67,650.5 100,008 76,335.2
Number in () indicate calculated % of HCFC contained in blend in kg
Number in [] indicate calculated % CFC contained in blend
Figures 4 and 5 shows share of refrigerant in the Maldives and consumption
growth in Maldives. Comparison of data on HCFC and HCFC blends import
of 2006 and 2008 shows a very sharp increase in HCFC blends in 2008 and a
drop in HCFC imports. This dramatic rise could be attributed to an increase in
number of end users who had already switched to other alternatives. HCFC
growth rate between 2001 and 2008 (Figure 4) shows both annual and
cumulative growth over the period. The highest annual growth was observed
in 2002 and 2003 which dropped off in 2004. More linear growth is observed
between 2004 and 2008. The overall cumulative growth of HCFC between
22
2001 and 2008 shows that HCFC has seen over 165% growth in 2008
compared to the level of consumption in 2001.
Refrigerants consumption in
Maldives
0
10
20
30
40
50
60
70
80
90
100
2006 2007 2008Year
% CFC-12 HCFCs
HCFC Blends Others
Figure 4: Market share of all refrigerants.
Annual and C umulative
g rowth rate of HC F C in
Maldives
-30%-10%10%30%50%70%90%
110%130%
2001 2003 2005 2007
Yea r
G rowth
C umulative growth
Figure 5: Annual and cumulative growth rate of HCFC in Maldives from 2002-2008.
Stockpiling is observed to some extent in Maldives but not common, partly because of
lack of space in Male, and the cost involved in storage and maintenance of the stock.
HCFC are being imported primarily from Dubai, Singapore, China, Malaysia, Hong
Kong, Thailand and Sri Lanka. The imported HCFC are typically sold through
distribution outlets at Male. Apart from China and India, refrigerant exporting
countries to the Maldives are not the HCFC producers but re-exporters. Since
Maldives is import dependent, mainly from the Asian region, the dominant refrigerant
in the countries of origin of imports will take over the markets in the Maldives. As
shown in tables above, usage of HCFCs and HCFC blends has been increasing in the
Maldives last four years and the trend is increasing use of HCFC blends and HCFC
23
alternatives market in the Maldives. Table 6 above shows imported quantities from
2006-2008 June.
Maldives Customs Services have separate codes for all types of refrigerants including
HCFC blends and equipment. Maldives Customs Services is using the HS 10 digit
codes amended by the World Customs Organization (WCO) and entered into force on
1st January 2007, which includes HCFC blends. Therefore, it is mandatory for
importers to declare the type of commodity that is being imported based on
designated HS customs codes.
4.3 Alternatives
4.3.1 Import of HCFC blends
Import of HCFC blends has been increasing in Maldives. HCFC blends used in
Maldives are R-402B (R-125/290/22), R-406A (R-22/600a/142b), R-408A (R-
125/143a/22), R-409A (R-22/124/142b) and R-502 (R-22/115). Table 6 shows
quantities of HCFC blends consumed in the country from 2006-2008. As can be seen
from the Table 6 the amount of HCFC blends imported into the Maldives are very
much fluctuating, however there is an increase in consumption from 2006-2008 and
initial figures of 2009 show that this trend is continuing. During the survey and the
field visit by the CAP team, a variety of blends were seen displayed prominently in
the servicing shops in Male.
4.3.2 Other ODS alternatives used in the Maldives
Large number of ozone friendly alternatives (not including HCFC, or CFC) are used
in Maldives. Alternatives refrigerants used in the Maldives are Hydrocarbons, R-
134a, R-23, R-404A, R-407, R-407A, R-407C, R-410A, R-413, R-417A, R-418, R-
507 and R-717. The amount of ODS alternatives used in the Maldives are increasing
since 2006 and the average growth rate is 217% per year. This might be attributed to
increase in the number of resorts and also expansion of fisheries sector, where private
companies were allowed to purchase, export, and process fish in designated zones.
4.3.3 Price of HCFCs, HCFC blends and alternatives
The HCFC-22 consumption is expected to grow in the coming years unless
appropriate regulatory and policy measures are introduced to prevent this condition.
Table 7 shows the CIF price (Cost Insurance Freight) of refrigerants imported to
Maldives from 2006-2008.
Alternatives to HCFCs are available in the world and it has been also widely used in
the Maldives (see Table 6) but at a higher initial cost. Industry and end users are not
very familiar with the use of these alternatives. Alternatives (in particular to
HCFC-22) require specific competencies as they have technical differences that must
be understood for successful use.
Table 7: CIF price of refrigerants imported to Maldives from 2006-2008
Refrigerant CIF Price (US$) /Kg
2006 2007 2008
CFC-12 2.20 1.58
R-134a 2.51 3.22 2.26
24
R-22 2.20 2.19 2.22
R-23 70.39
R-123 10.22 11.51
R-141B 3.27
R-402B 2.9
R-404A 5.45 4.26 7.23
R-406A 5.37
R-407 2.23 3.55
R-407A 1.79 1.92
R-407C 10.13 13.07 4.41
R-408A 2.2 4.76
R-409A 6.19
R-410A 42.15 6.82 5.63
R-413 2.37
R-417A 22.63 28.58
R-418 13.62
R-502 1.81 2.22 2.31
R-507 2.01 3.19 2.46
R-717 3.13
HC 3.9
4.4 Industry Structure of Refrigeration and Air Conditioning sector
The supply chain of Maldives was investigated during the survey and it was found
that the supply chain is not very long, as quite a large number of importers are end
users. Particularly the fisheries, tourism and food processing establishments are stand-
alone and self-contained, where all their servicing requirements are carried out by the
in-house technicians and maintenance personals. These establishments rarely have
external subcontracts for equipment servicing. However, domestic importers directly
sell gases and equipment to other workshop and individual companies, and there is no
long chain of redistribution in the Maldives.
As aforementioned, HCFCs or HCFC using equipment are not manufactured in the
Maldives, therefore all HCFC consumed in the country is imported. HCFC is not used
as foam blowing agent or as solvents. They are only used in refrigeration and air-
conditioning sector in the Maldives. As can be seen minor quantities of HCFC-141b is
imported to Maldives in 2008. According to the importers, HCFC-141b was used for
flushing as a replacement of CFC-11. Therefore, HCFC is used in the country only for
servicing of refrigeration and domestic air-conditioning equipment in the domestic
market (households, commercial establishments, shops, offices etc.), tourism sector
(resorts, hotels, guesthouses, safari boats), fisheries and fish processing sector (caning
factories, fish transportation vessels, freezing facilities), food processing facilities
(food and beverage storages). The amount of HCFC used in various servicing sectors
in the Maldives are shown in Table 8. As can be seen from the Graphs, HCFC is the
dominant and most widely used refrigerant in the Maldives
Table 8: Refrigerant consumption in different sectors in (Kg)
Domestic servicing Fisheries Tourism Food processing
Refrigerants 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
HCFCs 38081.4 63473 49016.6 14283 11325 17418 4463.7 4799.1 958.54 408.24 366.33
Blends 336 2436.7 621 12.25 408 90.7
25
Others 5105.5 20163.6 6048.48 436 45 1292.7 1298.59 1254.84 60 715.68
Total 44542.9 87066.1 55686.1 14719 11325 17463 5808.65 6505.69 2304.08 60 408.24 1082.01
Domestic servicing sector
0
10000
20000
30000
40000
50000
60000
70000
200820072006Year
kg
HCFCs
HCFC Blends
Others
Figure 6: Share of refrigerants in various sectors in the Maldives
4.5 HCFC in Domestic Servicing subsector
This sector includes HCFC used for domestic needs such as households, commercial
establishments, shops, offices, supermarkets etc. The domestic consumption is
mainly used for servicing of refrigeration and domestic air-conditioning equipment.
About 85% of the domestic consumption is in Male, therefore HCFC are supplied
mainly from Male. Occasionally locals from other islands import HCFC for their own
use. The average consumption is about 50 tonnes / year and the growth rate is about
16% per annum. Also considerable portion of domestic supply is used in resorts,
fisheries and food processing related small establishment. Large industries import
their HCFC by themselves.
Almost all the domestic air-conditioning used in the Maldives is stand alone split type
window or wall mount systems and a large part of the capacity of HCFC using
refrigeration equipment in Maldives consists of bottle coolers, display cabinets,
condensing units, ice cream and deep freezers. These refrigeration equipment are
commonly used in households and small to medium commercial establishments.
26
Percent of HCFC share in domestic servicing
sector
52%
54%
56%
58%
60%
62%
64%
66%
2006 2007 2008
Year
Figure 7: HCFC consumption in domestic servicing sector
4.6 HCFC in fisheries sector
Fisheries are the third largest contributor to the economy of Maldives after tourism
and commerce. There are four large exporters in the Maldives, namely, Maldives
Industrial Fisheries Company (MIFCO), Horizon Fisheries, Island Enterprises Pvt.
Ltd. and Funaddoo. These four companies‟ accounts for approximately 95% of the
total amount of fish exported from Maldives. The four companies have various types
of facilities, shore-based facilities, factories, cold storages, and off-shore platforms
such as collecting vessels and mother vessels. Cold storages in the various facilities
owned by the four companies uses ODS, ammonia and other refrigerants for cold
storages. However, vessels used by these companies for fish collecting, holding,
transportation and storage, mainly use HCFC-22. There are a large number of boats in
each of these four companies. MIFCO has 5 freezer vessels each with 2000MT
capacity and 20 collector boats and 3 long liners. The Island Enterprises Pvt. Ltd
owns 8 vessel fleet with a storage capacity of 4045MT. The Horizon Fisheries Pvt.
Ltd. has 10 vessel fleet, 5 collectors and 5 mother vessels. Funaddo cold storage also
has about 5-8 fleet of vessels, with a fish storage capacity of approximately 3000 MT.
Apart from these four companies there are number of small companies engaged in
fisheries. Cold storage and fish holding facilities in these companies, HCFC using
equipment are in the form of cold rooms, reefer containers and air-conditioning units.
Figure 11 shows the percent share of HCFC in the fisheries sector. Average
consumption of HCFC in fisheries sector is 15 to 20% of the total refrigerants
imported to the Maldives.
Most of these companies have shore based and offshore-based facilities, servicing
needs of equipment are carried out by the company technicians based in the site or on
boats. Some companies outsource there servicing needs to smaller servicing
workshops based in Male. Servicing need is very high in the fisheries industry where
the operations are conducted in highly salty environment, hence the equipment are
exposed to extensive corrosion. Annul servicing needs are estimated to be as high as
50% high leakage rate as a consequence of corrosion.
27
Percent of HCFC share in Fisheries
sector
0%
5%
10%
15%
20%
25%
2006 2007 2008Year
Figure 8: HCFC consumption in Fisheries sector
4.7 HCFC in tourism sector
Tourism is the main contributor to the economy of the Maldives. There are 94 luxury
resorts, 13 hotels, 24 guest houses and 143 Safari boats (tourist boats that travel for
long distances, and tourists stay in the boat for a long period), with a total bed
capacity of 23,464, operating in the tourism industry of the Maldives. The Maldivian
tourism industry is a targeted to high-end niche tourism market. Therefore the quality
of the tourism product offered by the country is extremely energy intensive and all the
resort and hotels are equipped with the modern amenities, such as mini-bars, air-
conditioners, imported fresh food and beverages etc.
HCFC is widely used in the tourism industry, mainly for servicing of refrigeration and
air-conditioning equipment. HCFC consumption in tourism sector accounts for 4%
and HCFC blends and ODS alternatives 2% of the total refrigerants used in the
Maldives. Figure 9 shows gradual decrease in the proportion of HCFC consumption
in the tourism sector from 2006 to 2008 and fairly constant values for ODS
alternatives and HCFC blends within the same period despite the fact that the total
amount of refrigerant was positively growing.
Percentage of HCFC share toursim sector
0%
1%
2%
3%
4%
5%
6%
7%
2006 2007 2008Year
Figure 9: HCFCs consumption in tourism sector 2006-2008.
28
4.8 HCFC in food processing sector
All food and beverages are imported to Maldives. These are transported and stored in
cold storages in the form of cold rooms and reefer containers. Generally the country
has the capacity for food storage for 2-3 months consumption for the entire
population. Most of these food storages are in Male, mainly in the customs and the
Hulhule International Airport. Few companies have their own cold storages and
engaged in supply of fresh food and beverages, and most of them are located in Male.
Due to the geographic dispersion of the inhabited islands of the Maldives, food
transportation generally takes place by sea either in vessels with cold storages or in
reefer containers loaded onto ships. Since most of the islands are very small, the
food products are generally transported within the island in refrigerated containers
between the bulk storage centres and retail centres. They are generally taken in
“pickup” vans to the retail distribution outlets.
HCFC consumption in food processing sector in the Maldives is mainly for the
servicing of cold storages and reefer containers. The survey indicates that HCFC
consumption in the food processing sector in the Maldives is less than 1 MT/year, and
accounts for 63% of the total refrigerant used in the sector. HCFC blends are rarely
used in this sector and 47% of the total refrigerant used in the sector are ODS
alternatives.
29
5 Expected trends in HCFC supply situation
5.1 Demand for HCFCs
5.1.1 Refrigeration and domestic Air-conditioning equipment Imports
Refrigeration and domestic air-conditioning equipment imported to the country for
various uses including households, hotel and tourism industry, fisheries, food
processing supermarkets and other business establishments. The following Table
gives total number of equipment imported to the Maldives from 2006- 2008. It can be
noted from the table that about 48% of total imports is split type wall-mount air-
condoners and 37% is refrigeration equipment.
Table 9: Equipment imports to the Maldives (2006-2008)
Equipment type 2006 2007 2008
Air Conditioning (Self-Contained) 11183 13482 15174
Freezers 1158 1609 1563
Refrigerator (commercial) 949 1500 1514
Chiller (Electric) Household 64 179 459
Refrigerating Counter & Refrigerating
Table 94 106 128
Chiller (Industrial) 406 427 873
Cold Room 63 37 68
Water Cooler, Electric 376 295 225
Ice Cube Machine 202 187 170
Ice Flaker 19 6 10
Vending Machines 3 28 11
Freezer Container 38 315 54
Total (units) 14555 18171 20249
Source: Maldives Customs Services
5.2 Population of HCFC using equipment in the Maldives
HCFCs are only used in air conditioning and refrigeration servicing sector in the
Maldives. The prevailing hot and humid atmospheric conditions and general
economic growth accompanied by improvement in the quality of life in the country
has resulted in an increase in the installation of refrigeration air conditioning units
and more handling of chilled and frozen food, etc. The use of HCFCs and blends are
further increased by the recent developments in the tourism sector and population
growth in the capital city Male where the dwellings are congested, and air-
conditioning is a necessity for many.
The most installed quantities of refrigerants are in air conditioning - split/unitary
systems and other equipment in: households, business premises, public and private
30
offices, shops and supermarkets, industries, ships, etc. According to the statistics,
approximately 80% of equipment is charged with HCFC-22.
Relevant statistical data for Maldives:
- Number of households 46,194
- Living quarters 43,193
- Establishment and institutions 82
- Hotels and resorts 107
- Fisheries related establishments 15
- Safari Boats 143
- Guest houses 24
- Health and social work 150
- Others - municipal, cultural 2757
Table 10: Installed quantities and annual needs for servicing of HCFC in metric
tonnes
Sector Number
of units
HCFC-22
installed stock
Leakage
%
Annual
needs for
servicing
% of the
HCFC -
22
Air conditioning (unitary/split systems)
Households 8000 0,001 x8000=8 15 1.2
Resorts
27818
0,001x27818=27.818
15
4.17
Hotels guest
houses
10000
0,001x10000=10
15
1.5
Safari vessels
3200
0,001x3200=3.2
15
0.48
Fisheries and
Agriculture
5800
0,001x5800=5.8
15
0.87
Public & business
Administration
5400
0,001x5400=5.4
15
1.35
Health and social
work
2000
0,001x2000=2
15
0.3
Others -
municipal,
cultural
3200
0,001x3200=3.2
25
0.48
Sub total 65418 65.418 10.35 16%
Food processing and Commercial refrigeration (Display cases, Freezers)
Commercial
equipments,
display cabinets,
Condensing units,
Ice cream freezers,
etc.
68396 0,0006x68396=41.04 25 10.26
Wholesale and
retail trade
1. Freezer
2. Display cases
3. Ice flakers, ice
cube machines
blast freezers
8813
2000
4680
0,0006x8813=5.28
0,0008x2000=1. 6
0.0005x4680=2.34
25
1.32
0.4
0.585
Sub Total 83889 50.26 12.56 20%
31
Sector Number
of units
HCFC-22
installed stock
Leakage
%
Annual
needs for
servicing
% of the
HCFC -
22
Fisheries/transport and commercial refrigeration (cold rooms, freezer containers)
Cold Rooms
Freezer
Containers
350
950
Average 3 cold
rooms/resort +
fisheries
establishments
0.03x350=10.5
Avr. Import 34
units/year
0.01x950=9.5
30
50
3.15
4.75
Fisheries ships 65 Ships
0.95x65=58.5
50 30.87
Other
equipment
6000 Water coolers,
refrigeration tables
vending machines etc.
6000*0.0009=5.4
25 1.35
Sub Total 7365 83.9 40.12 64%
Grand Total 156672 199.57 63.04 100%
In the Table above the installed stock of refrigerant is calculated by:
- Charging of approximately 1 kg = 0.001 MT refrigerant/per unit AC split and
unitary systems;
- Charging of approximately 0.8 kg = 0.0008 MT refrigerant/per unit in chillers;
- Charging of approximately 0.6 kg = 0.0006MT refrigerant/per unit in freezers
and display cases
- Charging of approximately 30 kg = 0.03 MT refrigerant/per unit in cold
rooms;
- Charging of approximately 900 kg = 0.95 MT refrigerant/per ship
- Charging of approximately 0,5 kg = 0.0005 MT refrigerant/per unit in display
and household chillers
- Charging of approximately 10 kg = 0.01 MT refrigerant/per unit freezer
container;
- Charging of approximately 0.9kg = 0.0009 MT refrigerant/per unit Water
coolers, ice flakers, vending machines, ice cube machines refrigeration tables etc.;
32
Annual HCFC needs for servicing of installed
equipments in Maldives in (MT)
Air
conditioning,
10.4
Other
equipments,
1.4 Refrigeration
, 12.6
Freezer
containers,
4.8
Cold Rooms,
3.2
Ships , 30.9
Figure 10: Annual HCFC needs for servicing of installed equipment
5.2.1. Fisheries
As can be seen from Figure 10 above, the largest consumption of HCFC is in fisheries
and shipping, mainly fisheries and transportation sector. The total installed quantity of
HCFC is estimated to be about 199.57 MT. Estimated annual servicing need is 63.04
MT this corresponds to approximately 31% of the installed quantity. With an annual
leakage rate of 50%, the estimated HCFC consumption in fisheries/transport sector,
the largest consumption sector, is about 83.9 MT and the estimated annual servicing
need is 40.12 MT. This is approximately 64% of the total HCFC-22 consumption in
the country. The reason behind large consumption of HCFCs in shipping is partly due
to the fact that most of the ships are old and maintenance intensive, and partly because
the ships are brought second-hand, hence their servicing need is immense. However,
luckily most of those ships are not serviced in the Maldives, particularly the big ones
with 2000-3000 MT get serviced abroad during their annual maintenance trips to
neighbouring countries i.e.: Thailand, Singapore, Sri Lanka and Dubai.
As mentioned earlier, Maldives does not manufacture HCFC using equipment
therefore all the equipment are imported into the country mainly from Asian
countries. Table 8 shows that the number of HCFC using equipment has been
increasing during the last three years. Economic growth along with the new
developments in fisheries and tourism has attributed to an increase in import of
refrigerant using equipment. Average annual growth rate of equipment import is about
9%. More than 65% of the refrigerant using equipment are imported from Singapore
and almost 97% of the total imports is from Asia, mainly Singapore, Malaysia, China,
Thailand, UAE and India. Recent trends has shown an increase of the split and
unitary energy efficient air-conditioning systems containing HFC blends being import
from the Asian region. However, these units are having a difficulty in penetrating the
domestic market due to the difference in price compared to HCFC based units.
The current ODS legislation does not cover equipment, therefore there is no control
over the equipment imports. During the HPMP initiation mission this issue has been
33
raised and advised to incorporate into the Environmental Act, which is under drafting
stage at the moment.
Due to the prevailing climatic condition in Maldives, hot and humid with large
amount of salt spray in the atmosphere, the expected life time of equipment are
assumed to be low compared to countries in higher latitudes. The expected life time of
refrigeration and air-conditioning equipment in Maldives is estimated to be 5-8 years.
The units being installed now and in the next few years could contribute significantly
of the HCFC consumption after the freeze year of 2013. As these units are getting
older and also larger installations that are old today, the air-conditioning and
refrigeration sector is expected to increase its share of the market.
5.2.2. Food processing and commercial refrigeration
Food processing and commercial refrigeration sector is the second largest
servicing sector and account for 20% of the HCFC-22 consumption. The installed
stock of refrigerant is 50.26 MT with an annual leakage rate of 25% estimated
servicing need is 12.5 MT/year. The main application in this sector is equipment used
in food processing such as bottle coolers, display cabinets, condensing units, Ice
cream freezers used in shops and supermarkets, display cases of non plug-in type in
shops and restaurants and small chillers. During the phase out of CFCs, HCFC based
equipment were promoted widely, as a result of that HCFC based equipment
dominated the domestic and commercial refrigeration market sector in particular
freezers and display cases and small chillers in small shops, supermarkets and
households. Fortunately the Maldives does not import second-hand equipment in
significant quantities, therefore, most of these equipment are either HCFC or HCFC
blends based.
5.2.3. Industrial refrigeration
Industrial refrigeration sector with users in food processing industry and larger cold
storages use smaller amounts of HCFC-22 since ammonia is the main refrigerant in
this sector. HCFC is mostly used in cold rooms and freezer containers (reefer
containers), mostly for food storage in resorts and industrial islands.
5.2.4. Domestic air-conditioning
Domestic air-conditioning: the total number of installed air-conditioning units in the
country is over 65,000, the majority of installed units, about 79%, are in the tourism
sector, resorts hotels and Safari boats. Estimated installed quantity is 65.814 and with
a leakage rate at 15% the servicing need for this sector is 10.35 MT. There are no
central air-conditioning systems in the Maldives, hence almost all are split type stand-
alone wall or window mount units. Annual imports of air- conditioning units exceeds
10,000 units per annum. Recent years have witnessed growth of energy efficient,
HCFC blend-based AC systems in the Maldives. However due to the considerable
price difference between the HCFC based ones compared to the energy efficient
systems, domestic market penetration of those systems are difficult.
34
5.3 Annual consumption of HCFCs in Maldives
5.3.1 Servicing
As mentioned earlier HCFC is only used for servicing in the Maldives. In Table 9 data
are given for annual needs of HCFC-22 for servicing. The annual need of 63.04 MT
may not correspond to the imported quantities reported from Customs Administration
and Article 7 data reported to the Ozone Secretariat for some years. Since Maldives is
an importing country the average consumption (consumption=import) for the period
2001-2008 is 48.2 MT of HCFC-22. Annual growth rate of HCFC consumption in the
Maldives is 21% per annum. It can be noted from Table 6, that the annul import is
very much fluctuating, this is due to the stockpiling and changes in the HCFC market
in exporting countries. Therefore depending on the price the importers may import
large quantity in a given year and relatively smaller amount in the consecutive next
year.
HCFC-22 Consumption
3122
36.4 4049.1
60
80
67.2
0
20
40
60
80
100
2001 2003 2005 2007 2009Year
Mt
Annual Average
Figure 11: Annual and average HCFC consumption
There are about 20 servicing workshops based in Male and 10-15 in the outer atolls.
Tourist resorts and other industrial islands have their own servicing workshops within
the island. Occasionally some of the resorts have servicing contracts with workshops
based in Male. Large suppliers of equipment such as State Trading Organisation
(STO) have servicing and installation contracts with local workshops. A list of
servicing workshop is given in Annex 3.
35
6 Forecast for HCFCs use According to the HCFC import data from the Customs as well as Article 7 reported
data, and other industry trends, HCFC consumption is growing at a rate of 21% per
annum and it is expected to maintain the present growth rate during the coming years.
Based on this data, projected HCFC consumption in 2009 is 81 MT. Similarly,
equipment as well as HCFC blends and alternatives import is growing. Equipment
import is growing at a rate of 9% per annum. Tables 12, shows forecast of HCFCs
and actual need using the projected figure for 2009 imports as a base year and the
estimated actual need, taking the observed growth rate of HCFC over the 2001-2008
period.
Table 11. Forecast import (consumption) 2009-2012 and actual need
2009 2010 2011 2012
Growth Rate 21% 21% 21%
HCFC imports (unconstrained) 81 98.0 118.6 143.5
Actual need 63.0 76.3 92.3 111.7
HCFC Consumption Forecast
81
98
119
143
63.0
76.3
92.3
111.7
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012 2013Year
Mt
HCFC import
Actual need
Figure 12: HCFC Forecast and actual need for Maldives (unconstrained growth
without interventions).
Taking the unconstrained growth of HCFC rate and actual need and the import of
HCFC, generally the observed trend is that the import is approximately 22% higher
than the actual need. Therefore there is always a 22% fluctuating margin between the
imports of consecutive years. Hence, the estimated HCFC stock maintained every
year is about 22% of the total imports of the earlier year.
This indicates that the gap between actual needs and the HCFC consumption will be
maintained if appropriate measures are not taken before the 2013-2015 freeze period.
Also, if the existing growth trend is followed it would be difficult to achieve the
freeze in 2013 because the amount needed to reduce the freeze is estimated to be
36
about 54 MT. This cannot be achievable unless the Government takes measures to
decrease the HCFC consumption as early as 2011. Therefore the Government
strategy should be geared towards achieving an accelerated phase-out. According to
the existing trends, the Government should take HCFC import reduction measures
from 2011 otherwise the further increase in the installed HCFC-22 stock will be a
challenge to achieve the freeze level in 2013. This is unlikely to happen because last
3-4 years there has been an introduction of alternatives in many traditional HCFC-22
applications, not mainly due to end-user demand for alternative refrigerants but rather
due to that most of the importers have had access to the units sold on the Asian
market that promotes energy efficiency components together with the alternative
refrigerants.
With the change in Asian supply market and promotion of energy efficient units with
alternative refrigerants, the same change is taking place in the Maldives consistent
with the trends in Asia. However, there is a risk of changing this condition if the
energy efficient units with alternative refrigerants fails to have lower prices compared
to the HCFC-22 units imported from Asian markets. Therefore there is a need for
appropriate policy and regulatory interventions to make the energy efficient units with
the alternative refrigerants more affordable and to raise public (end users) awareness
about the long-term financial and environmental benefits (cost and energy savings) of
investing in ozone and climate friendly energy efficient units.
Table 12: Refrigerants alternatives in various refrigeration sectors
Sector HCFC alternatives
1 Industrial Refrigeration Ammonia, R-404A
2 Commercial Refrigeration HFC-134a,
R-404A, R-507, CO2, Propane, Propylene
3 Air conditioning R-407С, R-410А, HFC-134a
4 Household Isobutane, (HFC-134a)
5 Transport Refrigeration R-404A, HFC-134a
Table 12 indicates available alternatives for new installations in the world market
today. There is a strong focus on development of solutions with low Total Equivalent
Warming Impact (TEWI) which include the Global Warming Potential (GWP) of the
refrigerant as well as the indirect effect caused by energy consumption of the system.
Tests of many different solutions are on-going sector by sector as well as efforts from
refrigerant manufacturers to develop new low GWP alternatives.
HCFC-22 alternatives are available for all applications and a replacement is possible
in new systems at relatively low cost. But there are significant challenges to phase out
HCFCs in existing systems without interruption of the economical recovery which is
focused on areas that are today dependent on the use of HCFCs.
In the short term, a continued use in existing equipment is cost effective and the first
focus should be replacement in new installation to avoid increase of the installed
37
stock. There is a strong focus on development of low GWP and energy efficient
systems for more segments and the market shares of ammonia, carbon dioxide and
hydrocarbons is expected to increase as these technologies mature. The challenge is to
ensure that energy efficiency and cost is acceptable on a system level when necessary
precautions for safety and design have been taken. There are also a range of products
developed and readily available in the market. HCFC-22 systems can be retrofitted
but the existing technical issues should be addressed appropriately in a timely manner.
38
7 Strategy and plan for implementation of HCFC Phase-out
7.1 Overall strategy
New phase-out schedule for HCFCs for Article 5 countries agreed at the MOP
(Decision XIX/6) include the following:
– Baseline: Average 2009-2010 consumption
– Freeze at baseline level: 2013
– 10 % reduction: 2015
– 35% reduction: 2020
– 67.5 % reduction: 2025
– 100 % reduction: 2030 except 2.5% for servicing use: 2030
– 100 % reduction: 2040
The HCFC phase-out strategy of Maldives is aligned with the carbon neutrality policy
of the country. Maldives has declared to become carbon neutral by 2020. Hence the
country wants to phase-out HCFC consumption by 2020. This is the broad policy the
country is adopting at the moment, in all fields such as energy generation, energy
efficiency and emission reduction etc. Therefore the HCFC phase-out schedule for
Maldives is aligned with the carbon neutrality policy of the country and will be as
follows:
– Baseline: Average 2009-2010 consumption
– Freeze at baseline level: 2011
– 10 % reduction: 2013
– 20% reduction: 2015
– 35% reduction: 2016
– 67.5 % reduction: 2018
– 100 % reduction: 2020 except 2.5% for servicing use until: 2025
With this strategy Maldives will achieve HCFC phase-out 20 years earlier than the
dates set in the accelerated complete phase-out schedule by the MOP (Decision
XIX/6). The country is determined to lead the race in carbon neutrality and HCFC
phase-out, and become an example for other developing countries by achieving HCFC
phase-out by 2020.
HCFC phase-out strategy of the Maldives contains a single stage accelerated phase-
out approach which will include both investment and non-investment projects that
will be implemented from 2010-2020. The early phase of the project will focus on
regulatory interventions, enforcement, promotion of ozone-climate co-benefit
activities as well as enhanced awareness activities and initiation of investment
projects while the later phase will focus on a combination of non-investment and
investment activities. The main objectives of the investment component is to sustain
the HCFC reduction achieved through the activities of non investment activities and
39
ensure reduction of HCFC needs in 2015-2020 period. The overall impact of
implementation of the proposed projects will be timely phase-out of HCFCs through a
combination of investment and non-investment activities proposed in the document.
The main focus of the projects will be four pronged approach as indicated hereunder:
(i) HCFC Phase-out Policies (HPP) and Enforcement: Import and quota
restrictions and other related policies to meet the Montreal Protocol targets for
Maldives.
(ii) Promotion of ozone climate co-benefits (to be funded through co-
financing)
(a) Standards and Labelling Policies (SLP): Energy efficiency
Standards and labelling programme which integrate HCFC phase out
reduction milestones calibrated with the timelines for HCFC phase out.
This could be particularly useful in equipment that are widely used like
room air-conditioners, refrigerators, etc.
(b) Framework for Efficient and Low HCFC Economic
Development (FELHED): Accelerated adoption of higher quality
equipment integrating both energy efficiency as well as HCFC
reduction by creating demand, ensuring adequate supply of these
equipment and service providers.
(iii) Enhanced awareness and outreach activities
(iv) Plan for gradual reduction of HCFC consumption.
(v) Investment component
7.1.1 HCFC Phase-out Policies (HPP) and Enforcement:
The Government proposing a range of policies and regulatory measures to achieve
complete phase-out of HCFCs by 2020, this includes establishment of an import
licensing and quota system for a limited number of registered importers for HCFCs
and HCFC containing equipment under the new Environment Act. The Government
will consider introduction of a green tax incentive for HCFC free equipment and
HCFC alternatives and blends to encourage imports of more energy efficient and non
HCFC equipment and regulations to limit use of HCFC dependent products and
equipment. The Government will consider introducing a system to award more
environmental points in the evaluation process of the bidding documents for new
projects for HCFC free installation and thereby establish a preference scheme for
ozone friendliness, based on the HCFC component of new projects during the
Environmental Impact Assessment process. Some additional policy initiatives in
servicing sector are also being committed by the Government as enumerated in the
section “Plan for Gradual Reduction of HCFC consumption”.
As to enforcement is concerned, creating strong and uniform awareness over the
HCFC phase-out policies is the first critical step. All players in the enforcement chain,
40
such as custom offices, police departments, and judges and prosecutors, will be given
training on the policies and their roles in the enforcement. Ensuring the enforcement
of “pre-import” permits, per shipment, as well as the import licensing and quota
system for a limited number of registered importers for HCFCs will be the core tasks
in the HPMP.
To achieve the above, record keeping and maintenance of the licensing system must
be computerized to increase the accessibility of information gathered, the ease of
analysis, as well as the standardization of information collection and management.
Information generated through operating the improved licensing system should be
then used to create enforcement intelligence including information useful for risk
assessment.
In parallel to these, the enforcement actors of the Maldives should be encouraged to
take active part in regional and sub-regional enforcement networking initiatives to
benefit from the knowledge and experience of their peers in other countries, and also
to offer the Maldives enforcement intelligence to common intelligence pool for global
and regional enforcement campaigns.
7.1.2 Promotion of ozone climate co-benefits (to be funded through co financing)
(a) 7.1.2.1 Standards and Labelling Programme (SLP):
Most of the equipment being targeted have an inherent potential to enhance their
energy efficiency. Synergies between energy efficiency standards and HCFC phase
out plan with proper design could well serve the twin purposes while making its
administration transparent and simpler. Comprehensive and dynamic standards and
labelling programme for each of the end use refrigeration, air-conditioning and
vending applications would be considered and would integrate the following:
(a) Import of equipment with energy efficiency standards including Minimum Energy
Performance Standards (MEPS);
(b) HCFC phase out linked to up gradation of standards in the 2011-2013 timeframe;
(c) Demand “pull” policies by providing a comparative label (from 1 STAR to 5
STAR) that duly integrates (a) and (b) above;
(d) A well researched and targeted awareness campaign to enhance demand for higher
STAR labelled equipment. This would not only include a comprehensive mass media
campaign but also a programme to enhance capacity of retailers, servicing
professionals.
SLP could cover commonly used equipment like ACs, Refrigerators, etc where it is
easier to influence demand. This could target not only the newer equipment but also
replacements as well.
The Standards and Labelling Programme (SLP) could be structured for end use
appliances and equipment on a self regulating principle with self certification by
importers based on the standards issued. The MHTE and NOU could integrate energy
efficiency standards with the HCFC phase-out targets by providing a range (STAR
rating) ranging from 1 to 5 in the increasing order of compliance to both energy
41
efficiency and HCFC phase out. Informative label on equipment incorporating the two
could provide information on equipment performance so that consumers can make
informed decisions while purchasing appliances. Energy savings assessment in the co-
benefit of energy use has been made based on the analysis of data of refrigerators and
ACs. Energy efficiency holds the promise to leverage potentially lower energy bills,
which particularly increases its acceptability by various stakeholders. The
recommended outline of the public policy is as under:
The policy to be notified by the MHTE, preferably under a statute.
The program will be managed by the MHTE/NOU under the guidance of an
Implementation Committee that will comprise of all stakeholders including
the, importers, consumer bodies, etc. This would usher in wider acceptability
and therefore easier implementation.
MHTE/ NOU will conduct verification tests on a regular basis to verify the
accuracy of labels.
Robust enforcement mechanism, including financial penalties, 'name and
shame' mechanisms and public notification of default must be integrated.
The standards must be such that they undergo upgrading periodically in tune with
achieving the twin objectives of enhanced energy efficiency and HCFC phase out
targets.
(b) 7.1.2.2 Framework for Efficient and Low HCFC Economic Development
(FELHED):
FELHED will include promotion of market based accelerated replacement of old
equipment through Energy Service Company (ESCO) delivery mechanisms. The
ESCO mode of delivery through performance contracts could not only increase
demand but also could overcome the twin barriers of higher costs and information
asymmetry that any new technology has to usually overcome. In addition, a
mandatory programme for public procurement of higher STAR labelled equipment is
recommended to not only demonstrate the Government‟s resolve but also to
encourage manufacturers/importers towards higher quality and efficiency products.
While SLP could target the end use equipment, commercial equipment like chillers,
deep freezers, vending machines, etc could be targeted by a combination of regulatory
and market based instruments. ESCO delivery mechanism provides a potential tool
towards this end. The main elements of FELHED could be:
Increasing demand for replacement to higher efficiency and low HCFC products
through Government orchestrated programmes in various sectors that use these
products like government, establishments, enterprises, fisheries, etc.
Enhancing capacity of ESCOs by creating a pool of trained manpower.
Providing innovative financial instruments like risk guarantees funds, venture
capital funds that could attract ESCOs.
Review of entry barriers for investment by international ESCOs in Maldives.
Mandating that all procurement by government and its allied agencies will be
restricted to higher efficiency and lower HCFC equipment in sync with the
HPMP.
Survey of all government establishments for replacement of identified equipment
appliances and announcement of their replacement within a pre-defined time
frame.
42
Identification of other establishments where mandatory application of similar
notification (as in Governments) could be undertaken
7.1.3 Enhanced Awareness and Outreach
Enhanced awareness and outreach capacity building are essential ingredients of the
SLP. There has to be a comprehensive media strategy that needs to be evolved based
on the need to create awareness about energy conservation and efficiency along with
the objectives of HCFC phase out. The strategy will focus on motivating stakeholder
to not only save energy by its rational use but also on the irreversible damage that
ODS could cause to the environment. Piggybacking on such umbrella messages could
be the campaign on making the STAR label as a lifestyle brand. The essential
ingredients of the media strategy will include:
(a) Identification of the target group (primarily industry stakeholders) and segregation
in terms of their respective socio-economic parameters.
(b) Messages for communication will be tailored in a manner that is most effective for
different strata of society - for instance for the middle class, cost saving is an effective
communication strategy while for the upper classes, lifestyle branding or saving
environment are usually better than cost saving communications.
(c) Media will be chosen appropriately to target different consumer and stakeholders.
While television is a good medium for lower and middle classes, internet, mobile
SMS have better acceptability in the higher classes.
(d) Simple messages usually are accepted better and the strategy will focus on this.
(e) A combination of television, print and internet will be taken, in terms of their
relative reach followed by radio, which usually has a good recall value.
(f) A consumer survey will form the basis of preparation of the media strategy, media
plan and communication strategy.
(g) A capacity building programme aimed at retailers and distributors will also be
initiated along with. This should include a broad framework of the SLP, its
advantages to consumers and society, comparative performance of higher STAR
labelled equipment, etc. A standard module may form the basis of this outreach with
expert trainers. Easy to understand tip sheets and flyers must be prepared which could
help the retailers to inform the consumers. This could compliment the awareness
programme.
43
7.1.4 Plan for gradual reduction of HCFC consumption:
Decrease in the need for HCFCs in refrigeration and air-conditioning servicing sector
through recovery, improvement in maintenance techniques and replacement will be
achieved through:
Adopting good practices in servicing through strengthening the work done
under RMP and TPMP to address HCFCs.
Reducing the frequency of maintenance.
Raising awareness and control measures (eventual ban of import).
Strengthening R& R set up under RMP and TPMP to address HCFCs.
7.1.5 Investment component
The investment component of the HPMP focuses on reducing the level of HCFC need
in the servicing sector through retrofitting of HCFC based equipment where
alternatives are available and replacement appliances and equipment that cannot be
retrofitted. The anticipated overall outcome of implementation of the investment
component would be the following:
Reduction in ODS usage and emissions in servicing (through implementation of
good practices)
Reduced dependence on virgin or new ODS (through recovery and recycling)
Capacity building of the workforce and facilities
The approach for managing HCFC use in the servicing sector is based on the lessons
learnt during CFC phase-out and taking in to account recent technological
developments, such as cost-effective availability of mini-reclaim units.
The key concept underlying this mechanism is to acknowledge and harness market
forces to ensure commercial viability and sustainability and also to ensure ownership
stake of the servicing establishments. Focusing on these areas projects developed in
the investment component consist two programmes (a) reclaim programme (b) end-
user retrofit pilot programme. Details of these programmes are given in the
investment component project document.
Cost of the HCFC phase-out
Estimated cost for total HCFC phase-out by 2020 is provided in Annex 1. Investment
and non-investment projects will be implemented to achieve HCFC phase-out targets
of the Maldives. The total phase-out costs till 2020 and the funds requested from MLF
and components that has potential to obtain funding from other sources are at Annex
1.
Time frame for implementation of planed activities
44
Time schedule of planned activities and time frame of implementation are included in
the budget table in Annex 1.
Coordination and management
The Ministry of Housing Transport and Environment - National Ozone Unit (NOU) is
assigned for coordination and management. The NOU is the central national body
responsible for coordination the country action with respect to ozone protection and
facilitation of ODS phase-out. This Office is in charge of implementing the Country-
Programs and other Montreal Protocol related activities.
7.2 HCFC Management plan
The HCFC management plan covers the freeze of HCFCs consumption in 2011 (base
level- annual consumption in 2009-2010) and 10% reduction of HCFCs consumption
in 2013 until the complete phase-out by 2020. HCFC based equipment import will be
controlled through a quota system and gradually reduced from the baseline (average
imports of 2009 and 2010) to 50% in 2013 and complete ban by 2015. Developed
activities are based on the previous experience in implementation of similar ODS
Phase-out projects such as the Refrigerant Management Plan (RMP-2002) and the
Terminal Phase-out Management Plan for CFC (TPMP - 2005).
The following part gives the proposed non-investment and investment projects that
will be implemented to meet the phase-out targets of the Maldives by 2020.
45
Project Documents
Project Document 1.
7.2.1 HCFC Phase-out Policies (HPP) and Enforcement:
Background
Maldives introduced licensing systems and implemented effectively since April 2002.
The licensing system covers all the refrigerants and has been enforced and monitored
in close coordination with the concerned authorities, namely: Maldives Customs
Services, Ministry of Trade and Economic Development, Ministry of Defense and the
MHTE/NOU. However, there are some shortcomings in the licensing system and its
enforcement, including the following:
a) The trade bans and other regulatory measures imposed through the system is
by means of public announcements. There is no specific law on ozone
protection other than the broad environmental act which reflects environment
very broadly. Therefore there is no solid legal status for the regulations.
b) The general public is not aware of various ozone related regulatory measures,
therefore, many importers realize existence of such regulations only after
bringing the consignment.
c) Record keeping and maintenance of the licensing system is poor. It is not
computerized, hence loose papers, forms and documents could easily be
misplaced, misfiled or even lost during the filing process. Therefore, revisiting
the cases is difficult in many instances.
d) At present there is no limit for the total number of companies that would be
eligible to obtain refrigerant import permits. This poses an obstacle when it
comes to limiting the amount of imports in the future.
e) There is no limit for the allowable registered importers per year
f) No quota system is established for HCFCs or any other refrigerant under the
existing system.
g) There is no help desk system that facilitates speedy and simple procedures for
processing import permits.
h) The constitution of the country has changed and the new constitution will not
allow formulation of any regulation without a supporting Act in the
constitution, therefore functionality of previous regulations is questionable
under the new constitution.
Activities under this project are:
(a) HCFC phase-out policy instruments will be implemented as follows:
– The MHTE will strengthen the existing import licensing by introducing a quota
system to include HCFCs as well as HCFC containing equipment by the end of
2010. The gradual reduction schedule is given earlier.
– A ban on HCFC based equipment is planned for 2013 if achievable but not later
than 2015;
46
– An annual import quota system for HCFCs will be adopted and import freeze will
be imposed from 2011 based on the baseline (average consumption 2009-2010).
– All importers have to apply for import permits for each HCFCs shipment to the
MHTE from the beginning of each year until the maximum allowed quota is
reached. Once the maximum allowed quota is reached, no permits will be issued.
– HCFCs and HCFC based equipment import will be discouraged through
introduction of a high green environmental taxation system that will be
established at the end of 2010.
– The MHTE will introduce mandatory reporting by importers as from 1 January
2011.
– The strengthened licensing system will be linked to a computerized enforcement
management system to prevent unauthorized import and facilitate speedy
processing of legal import of HCFC.
– Information gathered through the above system will be used to generate
enforcement intelligence.
– Capacity building workshops for the enforcement chain
– Establishment and development of standards for introduction of appliances
(b) Annual import quota for new equipment containing HCFC
HCFCs (R-22) use in Maldives is exclusively in refrigeration and air-conditioning
sector. According to the survey from 2006 there is a 9% annual increase of import of
equipment containing HCFC-22. Since this import increases the installed quantities of
HCFC-22 in the country, subsequently the need for HCFC will also increase. The
MHTE will establish an import quota system to include HCFCs as well as HCFC
containing equipment to avoid building up additional HCFC demand. The baseline to
limit the number of import units of new equipment containing HCFCs will be
established based on the import quantities of 2009 and 2010 and then gradually
reduce the imports to 50% by 2013 and completely ban by 2015. Efforts will be made
to explore complete ban 2013 based on the import trends and use in the Maldives.
47
Figure 13: HCFC and HCFC based equipment gradual phase-out plan
Introduction of the Import Quota System together with gradual reduction of annual
import will decrease build up of installed quantities of HCFC-22 in the country and
will generate lower consumption in the future (recharge after leaks and service). This
measure will help to meet the phase out targets of the country by 2020.
(c) Mandatory reporting by importers
It will be mandatory for the HCFC and HCFCs containing equipment importers to
report to the NOU the total annual quantities of imported goods under the issued
permits. Import permits will not be issued unless this information is reported to the
NOU. As mandatory reporting is essential for cross checking and verification, it will
provide data of actual import of HCFCs and HCFCs containing equipment. This
information will be mainstreamed and used through the regional iPIC approach to
ensure that unwanted imports above the annual consumption level of Maldives do not
take place.
(d) Tax incentive on non- HCFC equipment and Gases
The Government has already tabled a bill on a green tax. The intention is to
discourage the importers of ODSs and ODSs containing equipment through imposing
green taxes to imports of environmentally unfriendly products. HCFC and all the
ODSs contained in Montreal Protocol Annex C Group I substances as well as HCFC
containing equipment will be included in the proposed green tax system. The tabled
bill is expected to be approved by the Parliament before the end of 2010. Therefore,
as per plan, a green taxation system will be implemented before the end of 2010.
Cost breakdown HCFC Phase-out Policies (HPP)
Activity Time frame Cost (US$)
Hire local consultant to draft
regulations (for three months)
2010-2011 8,000
Development of standards for non-
HCFC based equipment- Legal
consultant for 6 months
2010-2011 15,000
International Consultant for the
policy setting
2010-2020 CAP PEO
One-day high level (Ministers and
IA) roundtable meeting in May 2010
to finalise the implementation to get
high level commitment for the
implementation of the approved
project
2010 15,000
One day Regulations initiation
workshop for stakeholder
consultation (30-40 participants) x 2
2010-2015 10,000
One-days Stakeholder consultation
workshop to discuss the draft
regulations (after formulation of the
draft (30-40 participants) x 2
2010-2015 10,000
48
Law enforcement officers training
workshop on new regulations, 8
workshops
2010-2020 35,000
Multiple ODS Identifiers (10 sets) 2010-2013 25,000
15 Training workshop for R&AC
servicing sector on new regulations
( one in Male another in atolls) (50-
60 participants in each)
2010-2020 50,000
Technical Assistance 2010-2020 20,000
Total 188,000
49
Project Document 2
This project is an integral part of HCFC, However since the project may not be
eligible for MLF funding, other sources for funding the project will be explored.
7.2.2. Promotion of Ozone Climate co-benefits
7.2.2.1 The Standards and Labeling Program (SLP) for Maldives
Background
Energy Efficiency Standards and labeling programs is one of the most effective ways
to improve energy efficiency, reduce GHG missions and integrate non-ODS
refrigerants as a part of standards. The program has the potential of overcoming
information asymmetry as well as high first cost barrier usually associated with high
efficiency and/or low ODS equipments.
One important objective of the programme is thus the removal of barriers to the
successful implementation of standards and labeling programs. It is aimed at rapidly
accelerating the adoption and implementation of energy standards and labels, and in
doing so bringing about energy savings from the use of energy efficient
appliances/equipment. The informative labels provide a simple tool to spread
awareness about the higher efficiency and therefore lower operational costs to
consumers. A robust SLP backed by a strong awareness programme could overcome
the high first cost barrier and help accelerate market transformation.
The Standards and Labeling Program (SLP) Design
The Standards and Labeling Program (SLP) provides for comparative pictorial labels,
based on energy consumption standards and, after testing and certification on each
equipment/ appliance. The ODS phase out targets could be integrated with the energy
efficiency standards as indicated in the table below. Further these standards are
dynamic which are improved in a predefined period. The ODS levels in the
equipments could be further reduced to accelerate the process. The labels, ranging
from 1 STAR to 5 STAR, are given in the decreasing order of energy consumption for
the desired output of an appliance- that is higher STARs denotes higher efficiency and
lower ODS consumption. The scheme targets end use equipments and appliances
which are used extensively and which have significant potential for saving of energy
by higher efficiencies. It can be seen that the programme could help accelerate the
reduction of HCFC use in ACs (and also in other equipments like Refrigerators, etc).
BEE Recommended AC table (EE+ODS) from till 31.12.2011
EER~ (W/W)
Star Rating ODS composition Min Max
1 Star * 100% 2.3 2.49
2 Star ** 100% 2.5 2.69
3 Star *** 0% 2.7 2.89
50
4 Star **** 0% 2.9 3.09
5 Star ***** 0% 3.1
BEE Recommended AC table (EE+ODS) from 1.1.2012
EER~ (W/W)
Star Rating ODS composition Min Max
1 Star * 100% 2.5 2.69
2 Star ** 100% 2.7 2.89
3 Star *** 0% 2.9 3.09
4 Star **** 0% 3.1 3.29
5 Star ***** 0 % 3.3
~ EER- Energy Efficiency Ratio is the proportion of cooling capacity (Watts) with input power (watt).
For 1.5 ton AC, Cooling Capacity is 5200 Watts.
Program Implementation
The scheme may be notified by the respective government under a legal
mandate.
An institutional entity may be identified to manage the program under the
guidance of an Implementation Committee that will comprise of all
stakeholders including the manufacturers, their associations, consumer bodies,
testing laboratories.
Manufacturers will test their equipment and self declare the rating level.
Manufacturers will print and affix labels as per the label design, manner of
display, and the rating plan prescribed for the particular equipment.
Manufacturers will be responsible for accuracy of the information displayed
on the label or any public claim for label level and quality of equipment.
Pictorial Labels
Energy-efficiency labels are informative labels affixed to manufactured products to
describe the product‟s energy performance (usually in the form of energy use,
efficiency, or energy cost) as well as ODS consumption; these labels provide
consumers necessary data on energy efficiency necessary to make informed choices.
A sample refrigerator label is as under:
51
Ensuring Credibility of Standards and Labeling Program
The institutional entity will conduct verification tests on a regular basis to
verify the accuracy of labels.
The label can be challenged by other manufacturers, consumer associations,
etc.
If the equipment is incorrectly labeled, and manufacturers do not rectify the
errors as directed, then the institutional entity will inform the consumers
through wide publicity and penalty may be enforced.
Impact Analysis
Energy efficiency standards for end use equipments like ACs, Refrigerators have the
potential of saving of electricity of 17,917 MWh annually in 2012 for ACs that will
rise to 33,296 MWh annually by 2015. For refrigerators, the energy savings will be
415 MWh annually in 2012 that will increase to an annual energy savings of 1418
MWh. This could help save around 6 KTOE in 2012 which could increase to 11
KTOE. Moreover, it will have the effect of complete migration of all 3 STAR and
above equipments from 2012.
SLP cost estimation and implementation time frame
The cost of planned activities and projects are estimated on the basis of a similar
programme being implemented by BEE in India.
52
S.No Activities /project Time frame Estimated costs
US $
1 SLP- Policy preparation and
institutional framework
2010-2012 20,000
2 Situation Analysis, Survey,
dynamic standard setting with
ODS timelines, setting up of
Technical Committees
2010-2015 30,000
3 Capacity building workshops of
policy makers
2010-2020 60,000
4 Capacity building of retailers,
distributors, promotional
material for sales staff
2010-2020 55,000
5 Impact Analysis 2011-2014 10,000
Total 175,000
* It is expected that the Government of Maldives will also provide contribution of
equivalent amount as their contribution to this project.
53
Project Document 3:
7.2.2.2 Framework for Efficient and Low HCFC Economic Development (FELHED) for Maldives
Background
FELHED will include promotion of market based instruments for accelerated
replacement of ODS equipments as well as delivering energy efficiency through
Energy Service Company (ESCO) delivery mechanism. As the project will also lead
to significant avoidance of GHG emissions, the framework would also aim to derive
economic incentives through global carbon markets. Financing through ESCO mode
of delivery through performance contracts and Clean Development Mechanism
(CDM) could not only increase demand but also could overcome the twin barriers of
higher costs and information asymmetry that any new technology has to usually
overcome. In addition, a mandatory programme for public procurement of higher
STAR labelled equipments is recommended to not only demonstrate the Government
resolve but also to encourage manufacturers/ importers towards higher quality and
efficiency products. A survey of international experience worldwide on the
development of ESCO based energy efficiency market & Carbon markets indicate the
need for policy interventions, implementation of demonstration projects, promoting
ESCOs, developing and standardizing sustainable contractual and legal documents,
developing a programmatic CDM framework and putting in place a financing
mechanism as key elements. In all the markets where such energy efficiency
investments have taken off, these barriers has being addressed through government
interventions.
Following measures may be undertaken to implement demonstration projects in
Government buildings in order to stimulate the market development by:
Putting in place a standard methodology covering the entire project cycle from
audit to performance measurement and verification.
Design of standard performance contract.
Design of financial mechanism for project funding.
Project Implementation and post evaluation of impact.
Capacity building among ESCOs and project owners.
Creating enabling infrastructure for launching programmatic CDM approach
for replacement of equipments (details are provided in part of (b) of this
section
54
Part (a) Accelerated Replacement and Energy Efficiency through ESCO led
model
Program Design
In order to facilitate the entry of players in the market to unlock the market potential,
following measures have to be initiated:
Increasing demand for energy services through Government programmes in
commercial, municipal, agriculture, tourism and fisheries and Small and Medium
Enterprises sectors. The programme can create several bankable energy
efficiency retrofit projects.
Enhancing credibility by empanelling ESCOs selected out of a competitive
bidding process after taking into account their technical and financial capabilities.
Accreditation of ESCOs by Government to improve comfort level of financial
institutions.
Creating a pool of trained manpower - certification programmes for energy
auditors and managers.
Capacity building in creating a cadre of energy efficiency professionals to be
given a thrust.
Stimulating the states through certified agencies and utilities to take up ESCO
based projects at the state level.
Implementation
An energy efficiency financing instrument must be developed for promoting financing
of energy efficiency projects. This financial mechanism in tandem with a robust
ESCO industry could provide the necessary impetus. The financing instrument would
seek to encourage banks and FIs willing to take up ESCO based projects by enabling
the following risk mitigation measures:
Capacity building and awareness of the personnel in banks and FIs on
performance contracting issues
Aggregation of energy efficiency projects as a result of schemes undertaken by an
institutional entity in different sectors
Preparation of a shelf of bankable DPRs under the oversight of an institutional
entity
Experience sharing and dissemination of national and international best practices
in the field of energy efficiency financing
Energy efficiency financing by banks and FIs would help evolve the Performance
Contract that captures future energy savings and performance guarantees by the
vendor, baseline setting of the project, legal obligation of the utility owner and
55
monitoring and verification with an objective to ensure price transparency. The
essential components of ensuring price transparency would involve:
Putting in place a standardised methodology covering the entire project cycle
from audit to performance measurement and verification
Robust baseline setting that takes into account seasonal and occupancy
variations, renovations, etc.
Design of standard performance contract
Design of a robust payment security and financial mechanism
Project monitoring and verification protocols
Public Procurement
Public sector is a major procurer of goods and services. It is necessary to introduce
energy efficiency and low ODS procurement in governments to not only promote the
market for such goods and services but also to provide leadership to other entities to
do so. The need for amendments in the extant policy regime for introduction of
energy efficient , low ODS public procurement and life cycle cost analysis cannot be
overemphasized. It is important for the Government to mandate energy efficient
public procurement. To begin with, it could issue appropriate directives to Ministries/
Departments for mandatory procurement of 3 STAR (and above) and preferably have
low or 0 % ODS composition.
Part (b) Equipment Replacement programme
Program Design
This program involves replacement of HCFC based inefficient domestic air
conditioning equipment by subsidizing the purchase of non HCFC based energy
efficient refrigerator and air-conditioning equipment. This sector is targeted because it
is very relevant for Maldives as it plays an important part of Maldives tourism based
economy and the fact that this equipment tends to be old and very inefficient. Based
on success of this replacement program using energy efficiency and carbon credits;
other equipments such as commercial systems, chillers etc also could be included for
replacement program.
Almost all the domestic air-conditioning used in the Maldives is stand alone split type
window or wall mount systems and a large part of the capacity of HCFC using
refrigeration equipment in Maldives consists of bottle coolers, display cabinets,
condensing units, ice cream and deep freezers. These refrigeration equipment are
commonly used in households and small to medium commercial establishments and
share of HCFC in this sector has increased from 56% to 64% from 2006 to 2008.
Population of HCFC containing domestic air conditioning equipment is estimated to
be over 65000 and annual imports are around 10,000 units. The majority of installed
units, about 79%, are in the tourism sector, resorts hotels and Safari boats.
56
This project would result in less dependency on HCFC based equipment, less
dependency on diesel powered electricity, increase of life standards and would be
helpful in attaining carbon neutrality. Also, scrapping centre‟s will recover and
recycle important parts of the equipments, and finally the HCFC contained in the
system will be recovered and reused.
Expected outcomes
This programme is a win-win example wherein all the involved stakeholders have
everything to gain.
Small establishments and hotels increase their activities and incomes (additionally
the government gets more incomes through the paid taxes and gets closer to its
carbon neutral aim).
Users benefit from both the direct subsidy on the purchase of equipment, and
through a reduction in the energy bill cost.
Creation of new jobs involving collection, scrapping and recovery of valuable
reusable materials are created, thus having a positive effect on the economy.
Finally, successful implementation of this program would result in early
achievement of HCFC phase out as air-conditioning equipment constitute 16% of
the total HCFC-22 requirement in Maldives
Equipment replacement program and Carbon markets
Global Carbon markets provide a platform called wherein we can launch a regional
program to replace old inefficient appliances with energy efficient appliances and
avail carbon credits for the same.
This program could subsidise the cost of new refrigerator by upto 7-8 %. Following
table depicts the preliminary calculations:
Heading Numbers Assumption/Source
Equipment Population 65000
Maldives HPMP
plan
Average no. of years till End-of-life 6
Current energy consumption (kwh/unit) 2.364
Maldives HPMP
plan
Total Energy consumption Mwh (8 hrs
a day for 210 days in an year) 258149 Average usage level
New Energy consumption (kwh/unit) 1.93 3 star level
Total Energy consumption Mwh (8 hrs
a day for 210 days in an year) 210756 Average usage level
Energy Savings per annum (Mwh) 47393
Baseline Emission Factor
(tCO2e/Mwh) 0.65
Carbon Credits per annum 30805
57
Carbon Credit revenue per annum
(USD) 462080 CER @ 14 USD
Carbon Credit revenue till end of life
(USD) 2772479
Part of this revenue
could be utilised for
co-financing of
actual
implementation of
replacement
program. This co-
financing could be
used for setting up
infrastructure to
enable replacement,
collection,
transportation,
storage, selling of
new more efficient
and not HCFC ACs
and other associated
systems
Carbon Credit revenue per old unit
replaced (during its entire end of life
period) (USD) 42.65
We propose to make a framework for replacement of HCFC based inefficient
domestic air conditioning equipment by non HCFC based energy efficient refrigerator
and air-conditioning equipment.
Implementation:
This framework would involve:
Increasing demand for replacement through government involvement like import
subsidy on new efficient air conditioning equipment as previously mentioned
Enhancing capacity of Recyclers by providing manpower training
Review of entry barriers for early stage investment by international carbon
funds/buyers
Mandating that all procurement by government and its allied agencies will be
restricted to higher efficiency and lower HCFC equipment in sync with the HPMP
as previously mentioned
Survey of all government establishments for replacement of identified equipment
appliances and announcement of their replacement within a pre-defined time
frame
Identification of other establishments where mandatory application of similar
notification (as in Governments) could be undertaken
Review of government policies that enable/hinder participation of companies in
global carbon markets and treatment of revenues arising from sale of carbon
credits
58
Developing a program of Activities (PoA) under CDM framework for equipment
replacement using following available methodologies under CDM
1. Identify managing entity
2. Define boundary
3. Describe measure
4. Define eligibility criteria
5. Define additionality criteria
6. Monitoring – Sampling/ each CPA
7. Environmental Impact Assessment (EIA) – PoA /CPA level
8. Stakeholder Consultation (SHC) – PoA/ CPA level
Capacity building of the national managing entity involved in day-to-day
management of the entire program
Impact of FELHED
The GHG mitigation potential estimated by a TERI study (2009) is 7800 metric
tonnes per annum, which is based on energy audits of 4 resorts. Simple extrapolation
of this potential to cover all 90 resorts could result in annual savings of oil imports
worth around USD 35 million and 170,000 metric tonnes of GHG mitigation. Further,
the study reveals payback periods in investment to be between 1.2 to 4.8 years which
makes a strong case for creating market for energy efficiency through the Energy
Service Companies (ESCOs). Similarly, a BEE assessment has revealed that targeted
energy efficiency programmes in hotel industry, transport and end use equipments
(like ACs and Refrigerators) could help save 90,000 metric tonnes of oil import by
2012 and USD 60 million while also avoided GHG emissions of 290,000 tonnes every
year. Integration of ODS phaseout with these interventions could accelerate the
process as well. The budget for FELHED is below:
Budget
FELHED (both part a and b) cost estimation and implementation time frame
The cost of planned activities and projects are estimated on the basis of a similar
programme being implemented by BEE in India.
S.No Activities /project Time frame Estimated costs US $
1 FELHED- Policy preparation
and institutional framework
2010-2012 10,000
2 ESCO market design and
development, including
performance contracts
2010-2020 50,000
59
3 Guidelines for Energy Efficient
Public Procurement
2010-2012 7,500
4 Capacity building workshops of
policy makers
2010-2020 30,000
5 Capacity building of financial
institutions, facility owners
2010-2020 40,000
6 Stakeholder Consultation and
Environmental Impact
Assessment
2012-2013 25,000
7 Capacity building of the
managing entity
2010-2015 25,000
Total 187,500
60
Project Document 4
7.2.3 Enhanced awareness and outreach:
1. Objectives
To help control the growth of HCFC in the Maldives;
To raise awareness of the degradation of the Ozone Layer, and the substances that
are leading to its depletion, including the efficacy and virtues of adopting a habit of
energy conservation and use of low ODS equipments;
To raise awareness of the Montreal protocol, the UNEP/DTIE‟s OzonAction
Programme, and the Maldives‟ HCFC Phase-out Management plans/efforts;
To lay emphasis on this subject as the need of the hour and would motivate people
to follow simple rules to „Save Power‟ and “Say No to ODS”;
To provide the consumer an informed choice about the energy saving and therby
the cost saving potential of consumer equipment and about the benefit of using low
ODS equipments;
To place the Maldives on the front lines of innovation and dedication towards
combating ozone layer depletion and energy efficiency in the developing world
There has to be a comprehensive media strategy that needs to be evolved based on the
need to create awareness about energy conservation and efficiency along with the
objectives of HCFC phase out. The strategy will focus on motivating stakeholder to
not only save energy by its rational use but also on the irreversible damage that ODS
could cause to the environment. Piggybacking on such umbrella messages could be
the campaign on making the STAR label as a lifestyle brand.
2. Strategy Design
In order to acquire the necessary insight to design a successful and sustainable
communications strategy that will assist the Maldives to meet its targets under the
Montreal Protocol, this proposal has been divided into three phases.
All phases will be carried out in close consultation with UNEP, the National Ozone
Unit (NOU) of the Maldives:
3. Phase I: Research and Analyses
a) Timeframe: 1st-3
rd month
b) Activity Breakdown:
Literature Review
Conduct a literate review of key documents relevant to HCFC and energy efficiency
issues in the Maldives
Identify Key Industry leaders & influencers – List Composition
Outreach Practices Review
Review outreach practices adopted for HCFC equipment
61
Stakeholder Identification & Steering Committee Establishment to oversee
the formulation of the overall vision and the implementation of the strategy.
Securing Survey Partner
Key Journalists identification:
Identify key journalists to follow the development and implementation of the
Maldives‟ Communications strategy on HCFC Phase-out and energy efficiency.
Media will be chosen appropriately to target different consumer and stakeholders.
4. Phase II: Stakeholder Engagement
a) Timeframe: 3rd
-6th
month
b) Activity Breakdown:
Steering Committee meeting:
Organizing the first Steering Committee meeting (hereon SC) to introduce the project
and, collectively, highlight the Maldives‟ Communications strategy‟s target group.
Other Stakeholder Consultation:
Consult and engage other related stakeholders in the identification of the project‟s
main target group/s and segregation in terms of their respective socio-economic
parameters.
Design and Conduct KAPB Survey
Identification of suitable Communication Approach
Messages for communication will be tailored in a manner that is most effective for
different strata of society. Also simple messages usually are accepted better and the
strategy will focus on this.
Organize Media Workshop
Training of Local Authorities to raise awareness on HCFC Phase out and
Energy Efficiency
A Capacity building programme aimed at retailers and distributors
This should include a broad framework of the SLP, its advantages to consumers and
society, comparative performance of higher STAR labelled equipment, etc. A
standard module may form the basis of this outreach with expert trainers. Easy to
understand tip sheets and flyers must be prepared which could help the retailers to
inform the consumers. This could compliment the awareness programme.
5. Phase III: The Maldives’ Communications Strategy - Design & Road Map
a) Timeframe: 6th
- 12th
month
b) Activity Breakdown:
62
KAPB Survey Evaluation:
Finalized Communications Strategy for HCFC Phase out and Energy Efficiency
Develop a detailed 2010 – 2020 Work –Plan for the communication strategy
Development of an Ozone Layer protection and Energy Efficiency Awareness kit
Awareness and Outreach cost estimation and implementation time frame
The cost of planned activities and projects are estimated as follow:
S.no. Activities Time frame Estimated costs US $
1. Strategy Design 2010 5,000
2. Research and Analyses 2010 5,000
3. Stakeholder 5
Engagement/Workshops
2011-2020 20,000
4. Media Campaign 2011-2020 70,000
5 Print material (leaflets,
pamphlets, booklets etc)
2010-2020 20,000
Total 2010-2020 120,000
63
Project Document 5
7.2.4 Plan for Gradual reduction of HCFCs
Background
This component covers the freeze of HCFCs consumption in 2011 (base level- annual
consumption in 2009-2010) and 10% reduction in 2013 and will continue gradual
reduction until the complete phase-out by 2020. Developed activities are based on the
previous experience in implementation of similar ODS Phase-out projects such as the
Refrigerant Management Plan (RMP-2002) and the Terminal Phase-out Management
Plan for CFC (TPMP - 2005).
Lesson learned during the CFC phase-out in the Maldives is that awareness raising,
customs training together with regulatory measures should be deployed
simultaneously to gradually reduce and eventually meet the targets set by the
Montreal Protocol. The plan for the reduction and phase-out of HCFCs is developed
to a large extent based on the experiences from the RMP and TPMP taking into
account the specifics of the different HCFC applications on the market as well as the
international and regional development of alternative technologies.
According to results of the survey and estimated foreseen consumption in 2012 of
HCFCs in Maldives, the need is at 111.7 MT HCFC-22 for servicing sector as seen
from the forecast Table 10. If the current import trend is followed without early
government intervention, Maldives will have difficulties in achieving the freeze to
bring the import level from 143.5 tons to 89.5 MT in 2013.
In order to achieve the new target set by the country the Government will start
reduction of HCFC by freeze consumption in 2011 and reduce 10% of consumption
by 2013. Simultaneously HCFC based equipment import will also be controlled
through a quota system and gradually reduced from the baseline (average imports of
2009 and 2010) to 50% in 2013 and complete ban by 2015.
The phase one activities, from 2011-2015, will focus of HCFC reduction through the
regulatory, enforcement, awareness and promotion of ozone climate co-benefit
activities. phase two activities, 2015-2020, is targeted to sustain the reduction
achieved in phase one by suppressing the demand through investment projects, while
maintaining gradual reduction process continued throughout the phase-out process.
According to the phase-out plan the projected baseline of Maldives will be established
at 89.5 MT. Maldives will reach peak of its HCFC import of 98 MT at 2010 and will
start freeze in 2011 then reducing the annual allowed quota to 10% by 2013 and then
a gradual decrease in allowed quota will follow to phase-out by 2020 with an annual
consumption of 2.5% of the baseline until 2025, as shown in figure 14.
64
Figure 14: Annual HCFC consumption reduction plan a two stage approach
Planned policy instruments will limit the consumption of HCFCs in the country and
meet the new phase-out schedule set by the country voluntarily. Gradual reduction
will be achieved through investment and non-investment activities.
Major industries that consume HCFC in the Maldives are in fisheries and tourism.
Training on good practices in R&AC servicing conducted under RMP and TPMP did
not adequately cover these two sectors. Also the training needs for these sectors are
very different in terms of working condition and maintenance requirements, from the
ordinary servicing technician training conducted during the RMP and TPMP.
Therefore there is a need to provide special technician training on good practices in R
&AC for these industries. In the fisheries industry major consumption of HCFC are in
ships, R & AC related practices in ships are vessels are very much different from such
practices on land. As the condition of equipment as well as maintenance needs are
very different from land based activities.
Activities under this component are:
(a) Synchronising HCFC phase-out activities with ISO 14001 standardisation
process (to be funded through co financing)
The tourism industry and the fisheries industry of Maldives have adopted
international standardisation process to meet with export requirements. International
big hotel chains have ISO 14001 standards in their energy consumption, emission and
other management practices. Similarly in the fisheries industry, ISO standards and
British Standards are being encouraged for adoption by fish exporters. As part of the
ongoing standardization process HCFC phase-out will be plugged in to reduce HCFC
consumption in these two industries by promoting, good practices in refrigeration and
air-conditioning technicians certification and improvement in maintenance practices
in accordance with the ISO or standards. Mainstreaming of HCFC issues with the
ongoing standardization process of Ministry of Trade and Economic Development.
ISO 14001 standards are being encouraged for adoption by fish exporters, food
processing and tourism industries.
x
Stage II, investment
Projects
65
(b)Policy instruments for servicing sector
Following Emission reduction measure will be introduced , such as:
o Ban on intentional venting
o Good practices on containment of refrigerants
o Good practices for safe and effective disposal of HCFCs and HCFC-
based equipment
o Training of refrigeration technicians
o Certification system for trained technicians and/or workshops
Projects outputs
The overall output of the project is to decrease the need for HCFCs in refrigeration
and air-conditioning servicing sector through recovery and improvement in
maintenance techniques to be achieved through:
Adopting good practices in servicing through strengthening the work done
under RMP and TPMP to address HCFCs.
Reducing the frequency of maintenance.
Raising awareness and control measures (eventual ban of import).
Strengthening R& R set up under RMP and TPMP to address HCFCs.
Expected results from the project include the following:
Provide focused and very specific training for technicians engaged in day-today
maintenance activities in tourism and fisheries sector.
Improvement in daily maintenance practices of R&AC equipment used in
fisheries and tourism sector and subsequent reduction in leakage and emission of
HCFCs.
Achieve international emission standards and good practices in R & AC servicing
sector in fisheries and tourism sector,
Provide handy, portable small tools such as vacuum pumps, manifolds leak
detectors etc. that are needed for technicians to improve maintenance activities,
Budget
Cost breakdown for plan of gradual reduction component
Activity Time frame Cost (US$)
International consultant 2010-2020 CAP HPMPO
Train-the-trainers workshop (15
participants 3 days) 15 trainings at
different locations
2010-2020 65,000
12 in-house training conducted in
fishing vessels and tourist resort
@5000/ training,
2010-2020 50,000
Engage in-situ training through
international consultant to
demonstrate leakage monitoring
and reduction in fishing vessels
2010-2020 25,000
66
Annual verification for compliance 2010-2020 47,000
Provide R&R equipment basic
tools for fishing industry training
establishments 10 sets
2010-2015 45,000
Total 232,000
67
Project Document 6:
7.3 Investment Component
TECHNICAL ASSISTANCE FOR SERVICING SECTOR
Title: Technical assistance for the servicing sector
Implementing Agency: UNDP
National Coordinating Agency: Ministry of Housing Transport and Environment
Requested Funding: US$ 420,000
Implementation Timeframe: January 2011 to December 2015
Impact: Reduced demand for HCFCs in servicing
Introduction
Maldives is proposing an accelerated HCFC phase-out in advance of the adjusted
Montreal Protocol control schedule, i.e., complete phase-out of HCFCs by 2020. It
should be noted that as of 2020, the production and consumption of HCFCs for other
Article-5 countries is expected to be at a level of 65% of the baseline. This means that
HCFCs would continue to be available although at reduced levels. Such availability of
HCFCs will pose a significant and difficult challenge for Maldives to ensure complete
phase-out by 2020. Maldives will need to address this challenge in two ways:
Ensuring that all HCFC-based appliances and equipment are retrofitted or
replaced with non-HCFC alternatives by 2020. Consistent with the carbon-neutral
policy of Maldives, these alternative technologies also need to be with low or
negligible GWP and be energy-efficient.
For appliances and equipment that cannot be so retrofitted or replaced with
satisfactory alternative technology line with the above, only recycled or reclaimed
HCFCs will need to be used from 2020 onwards, until their retirement at end of
life.
Need Assessment
Traditionally, in MLF-funded projects, programs for recovery/recycling and
management of refrigerants were implemented in the following process:
Identifying refrigeration servicing establishments
Procuring and distributing refrigeration recovery/recycling equipment and
accessories to these establishments
Identifying candidates as Master Trainers and training them in good practices in
refrigerant handling and refrigeration equipment servicing
Identifying refrigeration service technicians and training them in good practices in
refrigerant handling and refrigeration equipment servicing, through the Master
Trainers
Capacity-building of selected training establishments
68
The intended outcomes of such programs were:
Reduction in ODS usage and emissions in servicing (through implementation of
good practices)
Reduced dependence on virgin or new ODS (through recovery and recycling)
Capacity building of the workforce and facilities
However, it has been the experience that refrigerant recovery/recycling and
management programs implemented traditionally as described above, did not lead to
achievement of all the intended outcomes or to a satisfactory degree. In several
developing countries where such programs were implemented, it was found that the
recovery/recycling equipment was under-utilized or not utilized. Indeed, it was
observed that most significant reductions in CFC usage in servicing occurred mainly
due to retirement of CFC-based refrigeration equipment or through replacement or
retrofitting, driven by appropriate regulations and enforcement.
The following salient shortcomings in the design and/or implementation of such
programs are identified:
Absence of a counterpart stake or ownership (e.g. participation in the
recovery/recycling equipment costs) from the recipients, as the recovery/recycling
equipment was provided free of cost in most case.
Absence of standards or certification for recycled and reclaimed CFCs (causing
apprehension or suspicion in CFC buyers about the quality and performance of
such CFCs)
Absence of a commercial incentive for recovery/recycling (or reclamation) of
CFCs
Inadequate definition of ownership of reclamation facilities (where such facilities
were installed).
The cost of reclamation facilities was high enough to be economically
unsustainable on their own, due to the mismatch been the minimum capacity of
such reclaim facilities and available contaminated CFCs to be reclaimed
Inadequate logistics for managing the flow of recovered CFCs from technicians or
servicing establishments to the reclamation facility, wherever installed
These shortcomings were exacerbated by:
Significant price differentials between CFCs and substitutes (CFCs were
invariably cheaper at the time such programmes were initiated)
High cost of drop-in substitutes
High investments needed for replacing or retrofitting CFC-based refrigeration
equipment
The proposed approach for managing HCFC use in the servicing sector draws upon
the lessons learnt in implementation of such programs during CFC phase-out and
taking in to account recent technological developments, such as cost-effective
availability of mini-reclaim units.
69
The key concept underlying this mechanism is to acknowledge and harness market
forces to ensure commercial viability and sustainability and also to ensure ownership
stake of the servicing establishments.
Sub-component-1: Reclaim Programme
The proposed refrigerant reclaim programme design is shown in the figure below:
Considering the geographical disposition and size of Maldives, it is proposed that 10
mini-claim centers be established, to be located in the main islands. The ownership of
these mini-reclaim centers is proposed to be with one or more main refrigeration and
air conditioning servicing establishments as contractors. These mini-reclaim centers
will be provided with the following:
One set of refrigerant mini-reclaim unit capable of purification to ARI-700 (2004)
standards (virgin refrigerants)
One set of accessories and tools
Technical assistance
The mini-reclaim centers will be operated on a commercial basis. They would receive
recovered refrigerants collected by air conditioning and refrigeration servicing shops
and independent technicians, from a designated geographical jurisdiction. The mini-
reclaim contractors would charge a processing fee for this reclamation, to mitigate the
costs and overheads associated with the reclamation operations. The refrigerant
containers would be managed by the mini-reclaim contractor on a rotational/exchange
basis (similar to domestic cooking gas cylinders). The containers shall be
appropriately labeled in accordance with the regulations. The mini-reclaim centers
would also record, track and report on incoming and outgoing refrigerants.
It is proposed that the small air conditioning service shops and independent air
conditioning technicians be provided with recovery units, accessories and tools, so
that in addition to reducing HCFC emissions in servicing through better practices,
recovery of refrigerants in servicing would be promoted, availability of refrigerants to
the mini-reclaim centers would be assured and the overall dependence on virgin
HCFCs in the servicing sector would be reduced.
Recovery equipment, tools and accessories for service shops and
technicians
Reclaim Refrigerants
Commercially
Mini-reclaim
Centers
Manage Refrigerant
Containers
Equipment
Support
70
NOU will be responsible for monitoring of the reclaim programme, with assistance
from UNDP. UNDP will provide the procurement, contracting and financial
management and technical assistance. The technical backstopping would cover
programme design, equipment specifications and technical evaluation and
commissioning.
This subcomponent would be implemented during 2011 to 2015 and the
corresponding budgets are:
Activity (2011-2015) Budget (US$)
Recovery units, tools and accessories for service shops, resorts and technicians (40) 60,000
Mini-reclaim units and accessories (10) 150,000
Technical assistance for programme implementation through UNDP technical experts 20,000
Stakeholder workshops (3) 10,000
Programme promotion, literature and documentation 5,000
Total 245,000
Sub-component-2: End-user Retrofit Pilot Incentive Programme
The existing population of HCFC-based domestic, commercial and industrial
refrigeration and air conditioning equipment is the main source of CFC consumption
in the Servicing Sector in Maldives. While the reclaim programme will contribute to
reduction of HCFC usage during servicing as well as to some extent reduce
dependence on virgin HCFCs, until the HCFC-based equipment at the end-users
remains in service, the demand for HCFCs would continue to exist. In order to
achieve major reductions in demand for HCFCs, it is considered necessary to initiate a
pilot programme that provides incentives to end-users to retrofit their HCFC-based
equipment to non-HCFC alternatives.
For the small commercial refrigeration equipment, it is proposed that drop-in
hydrocarbon blends would be used to retrofit the HCFC-based equipment. For small
residential and commercial air conditioning units, low-GWP blends are proposed to
be used for retrofitting. It is proposed to provide a small incentive for these end-users
reflecting a portion of the total retrofit costs. On a pilot basis, about 500 commercial
refrigeration units and 1,000 small air conditioning units will be targeted for
retrofitting. The actual retrofit would be carried out through the servicing
establishments. The seed or incentive funding would be provided to the servicing
establishments upon submission of evidence that the retrofits were adequately and
satisfactorily carried out. This incentive amount would be passed on by the servicing
establishments to the end users as a concession.
For the larger end-users in the commercial and industrial refrigeration and air
conditioning sub-sectors, it is proposed to select up to 50 representative end-users
from the typical refrigeration end-use applications (cold storages, hospitals, resorts,
restaurants, fishing trawlers, etc.) for carrying out a retrofitting demonstration. The
end users will need to meet eligibility criteria established by NOU. The NOU/PMU
will carry out the qualification and selection of end users for participating in this pilot
program, with technical assistance from UNDP.
71
The selected end users would then enter into a binding agreement with the NOU,
incorporating appropriate legal, technical and operational provisions. Each end user
would be provided financial assistance covering the actual retrofitting/replacement
costs (excluding taxes) of up to a maximum of US$ 5,000 against satisfactory
completion of conversion and satisfactory documentation justifying the costs. Any
balance funds would be applied towards creating additional such demonstration end
users, until exhausted.
In order to promote the end-user demonstration/incentive programme, promotional
and technical literature and documentation will be prepared. Three technical
assistance workshops would be needed for the end-users to familiarize them with the
programme and promote their participation.
The programme would be implemented by NOU/PMU with the assistance of UNDP
technical experts, who would provide technical backstopping for developing program
design, technical assistance for retrofits, evaluation of retrofits, etc.
The expected outcomes of this program would be:
Availability of demonstration cases of successful retrofitting of HCFC-based
refrigeration and air conditioning systems for information dissemination and
awareness
Confidence-building in other end-users, precipitating early retrofitting decisions at
other end-users
Reducing HCFC demand for servicing of refrigeration and air conditioning
equipment at end-users
This sub-component will be implemented during 2011 to 2015 and the corresponding
budgets are as below:
Activity (2011-2015) Total (US$)
HC retrofit kits for small commercial refrigeration equipment (150 sets) 15,000
Low-GWP retrofit kits for small air conditioning units (400 sets) 60,000
Incentive programme for large commercial and industrial refrigeration end-users (13) 65,000
Programme promotion, literature and documentation 5,000
Technical assistance workshops for end-users (3) 10,000
Technical assistance from UNDP technical experts 20,000
Total 175,000
72
Project Document 7
7.4 Project coordination monitoring and management
Maldives has already implemented large number ozone related projects in the past.
Therefore the country has experience in coordination and management in successful
implementation of projects on ozone layer protection.
The National Ozone Unit (NOU) is the central national body under the MHTE,
responsible for coordinating and implementing ozone related activities during the
CFC phase-out. This NOU is in charge of implementing the Country-Programmes
under the Montreal Protocol.
The NOU will be responsible for the coordination of the national activities towards
HPMP Phase-out Plan implementation in cooperation with UNEP as Lead Agency
and UNDP as a cooperating Agency.
According the planned activities under HPMP stakeholders involved in
implementation will be:
- UNEP - Lead Implementing Agency;
- UNDP_- Cooperating Agency
- Government Administration;
- International and national consultants;
- Companies - suppliers of equipment and services, and
- Beneficiaries (Industry, Importers, Companies ...)
The role of UNEP is to provide technical assistance and further guidance towards
successful implementation of the HPMP and work with UNDP in preparation of
investment projects proposals to be submitted to the MLF for financial support and
implementation of approved projects.
Under the HPMP, there are five major sub-projects to be implemented.
Implementation of these projects involves constant interaction with the concerned
stakeholders, periodic dialogue on issues and concerns and evolving schemes for
implementation. Further, there may be a need to take stock of the phase-out situation
in refrigeration and air conditioning sector after 2015 and plan future activities for
achieving a “complete phase-out”.
Expected results from the project monitoring and review include the following:
- Provide focused attention on timely implementation of HPMP components.
- Periodic interaction with the stakeholders on HPMP implementation modalities.
- Review of effectiveness of implementation of HPMP through surveys.
- Reassessment of activities in 2015 for achieving complete HCFC phase-out and
future activity planning.
Estimated budget for this component is USD 140,000 for the period (2010-2020).
According to the ExCom guidelines the project monitoring and management cost
should not exceed 20% of the total request (UNEPOzl.pro/ExCom/59/52). Therefore
73
the requested funding for project coordination and monitoring is 12% funding
requested for 2010-2020.
Annex 1: Total HPMP cost estimation and implementation
The cost of planned activities and projects are estimated on the basis of previously implemented projects and information from producers of
equipment. Name of project/activities, implementation time frame and estimated cost and anticipated financing sources are given in the Table
below:
Activity/Cost Components
Estimated
total Cost
Anticipated Financing
Time
frame
Comments*
MLF Gov't* Other
Non Investment Component
Project 1: HCFC Phase-out Policies (HPP) and Enforcement
1.2 Hire local consultant to draft regulation (for three
months) 10,000 8,000 2,000 2010-2011
In-kind contribution
working space staff
assistance
1.3 Development of standards for non-HCFC based
equipment- Legal consultant for six months 15,000 15,000 2010-2011
1.4 International Consultant for policy setting CAP PEO 2010-2020
1.5 One-day high level (Ministers and IA) roundtable
meeting in May 2010 to finalise the implementation to
get high level commitment for the implementation of
the approved project
20,000 15,000 5,000 2010
In -kind
contribution for the
workshop venue
and covering local
hospitality etc
75
Activity/Cost Components
Estimated
total Cost
Anticipated Financing
Time
frame
Comments*
MLF Gov't* Other
1.6 One day Regulations initiation workshop for
stakeholder consultation (30-40 participants) x 2 15,000 10,000 5,000 2010-2015
In kind contribution
for the preparation
and arrangement
1.7 One days Stakeholder consultation workshop to
discuss the draft regulations (after formulation of the
draft (30-40 participants) x 2 20,000 10,000 10,000 2010-2015
In-kind contribution
working
arrangement and
support staff
1.8 Law enforcement officers training workshop on
new regulations, 8 workshops 45,000 35,000 10,000 2010-2020
in-kind contribution
working
arrangement
1.9 Multiple ODS Identifiers (10 sets) 25,000 25,000 2010-2013
1.10 Fifteen Training workshop for R&AC servicing
sector on new regulations ( one in Male another in
atolls) (50-60 participants in each) 60,000 50,000 10,000 2010-2020
in-kind contribution
working
arrangement and
support staff
1.11 Technical Assistance 20,000 20,000 2010-2015
Total HCFC Phase-out Policies (HPP) and
Enforcement 230,000 188,000 42,000 2010-2020
76
Activity/Cost Components Estimated
total Cost
Anticipated Financing
Time
frame
Comments*
MLF Gov't* Other
Project 2: Promotion of Ozone Climate co-benefits (SLP)
2.1 SLP- Policy preparation and institutional framework
25,000 5000 20,000 2010-2012
co- financing
options will be
explored
2.2 Situation Analysis, Survey, dynamic standard
setting with ODS timelines, setting up of Technical
Committees 35,000 5000 30,000 2010-2015
co- financing
options will be
explored
2.3 Capacity building workshops of policy makers
70,000 10000 60,000 2010-2020
co- financing
options will be
explored
2.4 Capacity building of retailers, distributors,
promotional material for sales staff 60,000 5000 55,000 2010-2020
co- financing
options will be
explored
2.5 Impact Analysis 10,000 10,000 2011-2014
Total Promotion of Ozone Climate co-benefits (SLP) 200,000 25,000 175,000 2010-2020
77
Activity/Cost Components
Estimated total Cost
Anticipated Financing
Time frame
Comments*
MLF Gov't* Other
Project 3: Promotion of Ozone Climate co-benefits (FELHED)
3.1 FELHED- Policy preparation and institutional framework 15,000 5,000 10,000 2010-2012
co- financing options will be
explored
3.2 ESCO market design and development, including performance contracts 50,000 50,000 2010-2020
co- financing options will be
explored
3.4 Guidelines for Energy Efficient Public Procurement
7,500 7,500 2010-2012 co- financing
options will be explored
3.5 Capacity building workshops of policy makers
35,000 5,000 30,000 2010-2020 co- financing
options will be explored
3.6 Capacity building of financial institutions, facility owners 45,000 5,000 40,000 2010-2020
co- financing options will be
explored
3.7 Stakeholder Consultation and Environmental Impact Assessment 30,000 5,000 25,000 2012-2013
co- financing options will be
explored
3.8 Capacity building of the managing entity
25,000 25,000 2010-2015 co- financing
options will be explored
Total Promotion of Ozone Climate co-benefits (FELHED) 207,500 0 20,000 187,500 2010-2020
78
Activity/Cost Components
Estimated
total Cost
Anticipated Financing
Time
frame
Comments*
MLF Gov't* Other
Project 4: Enhanced awareness and outreach
4.1 Strategy Design 5,000 5,000 2010
4.2 Research and Analyses 5,000 5,000 2010
4.3 Stakeholder 5 Engagement/Workshops 30,000 20,000 10,000 2011-2020 in kind assistance
4.4 Media Campaign 95,000 70,000 25,000 2011-2020 in-kind assistance
4.5 Print material (leaflets, pamphlets booklets etc) 30,000 20,000 10,000 2010-2020 In-kind assistance
Total Enhanced awareness and outreach 165,000 120,000 45,000 2010-2020
79
Activity/Cost Components
Estimated
total Cost
Anticipated Financing
Time frame
Comments*
MLF Gov't* Other
Project 5: Plan for Gradual reduction of HCFCs
5.1 International consultant CAP
HPMPO 2010-2020
5.2 Train-the-trainers workshop (15 participants 3 days)
15 trainings at different locations 75,000 65,000 10,000 2010-2020
5.3 12 in-house training conducted in fishing vessels
and tourist resort @5000/ training, 60,000 50,000 10,000 2010-2020
5.4 Engage in-situ training through international
consultant to demonstrate leakage monitoring and
reduction in fishing vessels
25,000 25,000 2010-2020
Annual verification for compliance 47,000 47,000
5.5 Provide R&R equipment basic tools for fishing
industry training establishments 10 sets 45,000 45,000 2010-2015
Total for Plan for Gradual reduction of HCFC 252,000 232,000 20,000
Project 6: Project coordination monitoring and management
6.1 Project coordination and monitoring 160,000 140,000 20,000 2010-2020 In-kind assistance
Total for Project coordination monitoring and
management 160,000 140,000 20,000 0
Total for the non-investment component 1,214,500 680,000 172,000 362,500
80
Activity/Cost Components
Estimated
total Cost
Anticipated Financing
Time
frame
Comments*
MLF Gov't* Other
Investment Component
Project 7 Sub-component-1: Reclaim Programme
7.1 Recovery units, tools and accessories for service
shops and technicians (40) 60,000 60,000 2011-2015
7.2 Mini-reclaim units and accessories (10) 150,000 150,000 2011-2015
7.3 Technical assistance for programme implementation
through UNDP technical experts 20,000 20,000 2011-2015
7.4 Stakeholder workshops (3) 15,000 10,000 5000 2011-2015 In-kind assistance
7.5 Programme promotion, literature and
documentation 5,000 5,000 2011-2015
TotalSub-component-1: Reclaim Programme 250,000 245,000 5000
Sub-component-2: End-user Retrofit/Replacement Pilot Incentive Programme
7.6 HC retrofit kits for small commercial refrigeration
equipment (150 sets) 15,000 15,000 2011-2015
7.7 Low-GWP retrofit kits for small air conditioning
units (400 sets) 60,000 60,000 2011-2015
7.8 Incentive programme for large commercial and
industrial refrigeration end-users (13) 65,000 65,000 2011-2015
7.9Programme promotion, literature and documentation 5,000 5,000 2011-2015
7.10 Technical assistance workshops for end-users (3) 15,000 10,000 5000 2011-2015 In-kind assistance
81
7.11 Technical assistance from UNDP technical experts 20,000 20,000 2011-2015
Total End-user Retrofit/Replacement Pilot Incentive
Programme
180,000
175,000
Total Investment Component 430,000 420,000 10000
Grand Totals 1,644,500 1,100,000 182,000 362,500
Same approach should be used for project 2, 3 4
Total fund requested from MLF including implementing agency fee
Implementing Agency Project Cost
US$
Agency Fee
US$
Total US$
UNEP 680,000 88,400 768,400
UNDP 420,000 31,500 451,500
Grand total 1,100,000 119,900 1,219,900
Annex 2 List of HCFC importers and imported quantities in(kg) 2006-2008.
Refrigerant Importer 2006 2007 2008
R-22 AHMED IBRAHIM DIDI / NIYAZ ENTERPRISES
10,478.16
R-22
AJHAD ABDULLA / A.J.E. EMPORIUM / JAVAAHIRUMAAGE, B.
EYDHAFUSHI / MA. VEENA
16.33
R-22 ANCHOR / ISLAND ENTERPRISES PTE LTD
2,902.50
R-22 AYCAN (COUNTER)/AYCAN PVT LTD/ MA.BANDHUGE
R-22 BASELINE / BASELINE INVESTMENT PVT LTD/H.NEREEN
60.00
R-22 BRIGHT BROTHERS
30,600.00 35904 21760
R-22 COASTAL MILLION MALDIVES PVT LTD / CMM TRADERS
810.00 540 1061.5
R-22 CYPREA MARINE FOOD PVT LTD / H.MARY SIDE
980.00 81
R-22
DAMAS COMPANY PTE LTD / DAMAS HARDWARE/ NO:2,KOLHI
UMAR MANIK GOALHI
1,020.00 1360 2720
R-22 DUPLEX PVT LTD / H.KURUMBA VILLA - (GROUND FLOOR-B)
R-22 ENSIS FISHING PVT LTD
544.00
R-22 FESDU FUN ISLAND
136.00
R-22 FLUX ENGINEERING AND CONTRACTING / H. LHAREETHIGE
136.00 50
R-22 FOUR SEASONS RESORT MALD. AT KUDA HURA
2.00
R-22 FUNADDOO TUNA PRODUCTS
6.00
R-22 HASSAN HALEEM / FIGURE PERFECT / H.ALI
680.00 2720
R-22 HULHULE ISLAND HOTEL
136.08
R-22 IBRAHIM RASHEED / FANTASY STORE
68.04
R-22 ISMAIL IBRAHIM / SONEE HARDWARE
650.00
R-22 KANDOOMA TOURIST RESORT
370.00
R-22 L. GAN HOUSING PROJECT LOT-B
13.60
R-22 LANDAAGIRAAVARU PVT LTD
745.20
R-22 MAANDHOO FIHAARA / HORIZON FISHRIES PVT LTD
1,710.00 8625 4500
R-22 MAIZAN IBRAHIM MANIK / H.FEDHOO
20.00
R-22 MALDIVES INDUSTRIAL FISHERIES CO LTD
12,567.00 2700 12670
R-22
MALDIVES QUALITY SEAFOOD PVT LTD / G. LYON, KHALHUHURAA
MAGU, MALE'
350.00
R-22 MOHAMED IBRAHIM DIDI / FAZA 1 / S.HITHADHOO
R-22 MOHAMED MOOSA / MM TRADERS / S.HITADHOO / KASTHAREEGE
72.00 67.5
R-22 MOHAMED SAEED / SEE MEE / HASEENEE VILLA , S.FEYDHOO
77.50
R-22 RAINBOW ENT. PTE LTD
68.04
R-22 RANGALI ISLAND RESORT
282.50
R-22 REFCOOL/AHMED HALEEM
3,400.00 13300 21080
83
R-22 SALESCO PVT LTD / M.WINDSCREEN / SALESCO
R-22 TAJ CORAL REEF RESORT / TAJ MALDIVES PTE LTD
326.59
R-22
THE WATER FRONT PVT LTD / HALAVELI HOLIDAY VILLAGE
PROJECT / BODUTHAKURUFAANU MAGU
54.40
R-22 UNITED FOOD SUPPLIERS PVT LTD/UFS (COUNTER)/M.SOMA
340.20
R-22 UNIVERSAL ENTERPRISES PVT LTD
4.00
R-22 UZARU/WHEEL ENG. SERVICES
136.37 340.2 680.4
R-22 VABBINFARU PARADISE ISLAND
13.60
R-22 VELAVARU ISLAND RESORT / MALDIVES BAY PVT LTD
40.80
R-22 VIMLA CONSTRUCTION & TRADE PTE LTD / VIMLA TRADE
356.00
R-22 WAADHEE TRADERS PTE LTD
473.00 1328 1500
R-22 WHITE SAND RESORT & SPA
324.00 204.5
R-22 WINGS SERVICES PTE LTD / MA.IRAAKUGE
5.00
84
Annex 3. List of refrigeration and air-conditioning servicing workshops/
establishments
1. A Latheef Mechanical Service
2. Capital Auto Service
3. Galhohu Auto Garage
4. H.A.D. Garage
5. Merangi Services
6. Shiyam Motor Garage
7. Wizco Garage
8. Aim Refrigeration
9. Air Con Service Centre
10. A.R.Engineering
11. Bright Brothers
12. Caption Refrigeration
13. H.Eroma / Ibrahim Umair
14. H.Janavaree Villa / Moosa Manik
15. Hithima Refrigeration
16. Refrigeration Mobile Services
17. V.Refrigeration and Air Conditioning Engineering
18. Wheel Engineering Services
19. Tommy Refrigeration
20. Happy Market Trading Co Pvt Ltd.
21. Damas Co. Pvt.Ltd.
22. Waadhee Traders Pvt. Ltd.
22. Hithimaa Refrigeration
23. Coastal Million Maldives
24. Ref Cool
85
Annex 4. List of Acronyms
CFC Chloroflourocarbon
CP Country Programme
EEZ Exclusive Economic Zone
ERC Environment Research Center (now known as EPA)
EPA Environmental Protection Agency (former ERC)
ESCO Energy Service Company
FELHED Framework for Efficient and Low HCFC Economic Development
GDP Gross Domestic Product
GWP Global Warming Potential
HCFC Hydrochloroflourocarbon
HPMP HCFC Phase-out Management Plan
HTPT HCFC Phase-out Trade Policies
IEPAC Industry and Environment Activity Center
ISP Institutional Strengthening Project
ODS Ozone Depleting Substances
OLF Ozone Layer Fund
MAC Mobile Air-Conditioning
MEPS Minimum Energy Performance Standards
MHTE Ministry of Housing Transport and Environment
MIFCO Maldives Industrial Fisheries Company
MOP Meeting of the Parties
MP Montreal Protocol
NGO Non-Governmental Orgnisations
NOU National Ozone Unit
NOC National Ozone Cell
ODP Ozone Depleting Potential
RMP Refrigerant Management Plan
SLP Standard and Labeling Policies
STO State Trading Organisation
TPMP Terminal Phase-out Management Plan
UAE United Arab Emirates
UNDP United Nations Development Programme
UNEP United Nations Environment Programme
VC Vienna Convention
WCO World Customs Organisation
